PROHIBITION OF REDUCTION OF SECTION 8 CONTRACT RENTS.

SEC. 1004. PROHIBITION OF REDUCTION OF SECTION 8 CONTRACT RENTS. (a) In General.— Section 8(c)(2)(C) of the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(2)(C) is amended— (1) in the first sentence, by striking “as hereinbefore provided” and inserting the following: “under subparagraphs (A) and (B)”; and (2) by adding at the end the following new sentences: “Any maximum monthly rent that has been reduced by the Secretary after April 14, 1987, and prior to the enactment of this sentence shall be restored to the maximum monthly rent in effect on April 15, 1987. For any project which has had its maximum monthly rents reduced after April 14, 1987, the Secretary shall make assistance payments (from amounts reserved for the original contract) to the owner of such project in an amount equal to the difference between the maximum monthly rents in effect on April 15, 1987, and the reduced maximum monthly rents, multi-plied by the number of months that the reduced maximum monthly rents were in effect”. (b) Budget Compliance.— During fiscal year 1989, the amendment made by subsection (a)(2) shall be effective only to such extent or in such amounts as are provided in appropriation Acts. For purposes of section 202 of the Balanced Budget and Emergency Deficit Control Reaffirmation Act of 1987 (Public Law 100–119), to the extent that this section has the effect of transferring an outlay of the United States from one fiscal year to an adjacent fiscal year, the transfer is a necessary (but secondary) result of a significant policy change.