USE OF FUNDS RECAPTURED FROM REFINANCING STATE AND LOCAL FINANCE PROJECTS.

SEC. 163. USE OF FUNDS RECAPTURED FROM REFINANCING STATE AND LOCAL FINANCE PROJECTS. In General.—Section 1012 of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (42 U.S.C. 1437f note) is amended to read as follows: “SEC. 1012. USE OF FUNDS RECAPTURED FROM REFINANCING STATE AND LOCAL FINANCE PROJECTS. “(a) Definition of Qualified Project.—For purposes of this section, the term ‘qualified project’ means any State financed project or local government or local housing agency financed project, that— “(1) was— “(A) provided a financial adjustment factor under section 8 of the United States Housing Act of 1937; or “(B) constructed or substantially rehabilitated pursuant to assistance provided under a contract under section 106 STAT. 3723 8(b)(2) of the United States Housing Act of 1937 (as in effect on September 30, 1983) entered into during any of calendar years 1979 through 1984; and “(2) is being refinanced. “(b) Availability of Funds.—The Secretary shall make avail-able to the State housing finance agency in we State in which a qualified project is located, or the local government or local housing agency initiating the refinancing of the qualified project, as applicable, an amount equal to 50 percent of the amounts recaptured from the project (as determined by the Secretary on a project- by-project basis). Notwithstanding any other provision of law, such amounts shall be used only for providing decent, safe, and sanitary housing affordable for very low-income families and persons. “(c) Applicability and Budget Compliance.— “(1) Retroactivity.—This section shall apply to refinancings of projects for which settlement occurred or occurs before, on, or after the date of the enactment of the Housing and Community Development Act of 1992, subject to the provisions of paragraph (2). “(2) Budget compliance.—This section shall apply only to the extent or in such amounts as are provided in appropriation Acts.”