(a) Each owner of an assisted project is subject to this title if the owner takes or intends to take any of the following protected actions:
(1) the prepayment in full before the maturity date of mortgage financing that is:
(i) insured under § 221(d)(3) of the National Housing Act, 12 U.S.C. § 1715l(d)(3), and assisted under § 101 of the Housing and Urban Development Act of 1965, 12 U.S.C. § 1701s, or under § 8 of the United States Housing Act of 1937, 42 U.S.C. § 1437f;
(ii) insured under § 221(d)(3) of the National Housing Act, 12 U.S.C. § 1715l(d)(3), and bears interest at a rate determined under § 221(d)(5) of the National Housing Act;
(iii) insured or assisted under § 202 or § 236(a) or (b) of the National Housing Act, 12 U.S.C. § 1701q or 12 U.S.C. § 1715z-1(a) or (b);
(iv) insured or assisted under § 515 of the Housing Act of 1949, 42 U.S.C. § 1485; or
(v) held by the United States Department of Housing and Urban Development and insured or assisted, or formerly insured or assisted, under a program authorized by a statute referred to in item (1) of this subsection;
(2) the termination before expiration of or failure to exercise any stated renewal option under an agreement providing for project-based § 8 rental assistance for any units in an assisted project;
(3) the expiration, including a failure to extend after the expiration, of an agreement providing for project-based § 8 rental assistance to any units in an assisted project; or
(4) the sale or conveyance of an assisted project by the owner in conjunction with, or within 1 year after the effective date of, any of the events described in item (1), (2), or (3) of this subsection.
(b) Any sale, conveyance, or other transfer of an assisted project is subject to this title, including:
(1) the sale or other transfer of any general partnership interests of the owner;
(2) the sale or other transfer, in any 1 calendar year, of:
(i) more than 10% of the limited partnership interests of an owner; or
(ii) more than 10% of an owner’s stock;
(3) the transfer by a beneficiary of beneficial or equitable interests under a trust in which the trustee holds title to the assisted project; and
(4) other transfer determined by the Secretary.
(c) By regulation, the Secretary shall establish standards and procedures for interested persons to be exempted from any requirement of §§ 7-203 through 7-219 of this title:
(1) if Title II of the Housing and Community Development Act of 1987, 12 U.S.C. §§ 4101 through 4124, continues, is amended, or is extended, or if a successor federal law is enacted; and
(2) to diminish the burdens of dual regulation or to prevent inconsistent or inequitable application of federal and State law.
(d) This title does not apply to an assisted project if:
(1) before any protected action, the owner or purchaser records, in a form satisfactory to the Secretary, a covenant running with the land on which the assisted project is located that preserves the existing low-income rental restrictions of the federal housing program:
(i) for the term remaining as of the date of prepayment of any mortgage described under subsection (a)(1) of this section; and
(ii) for the term remaining as of the date of termination, including all stated and unexercised renewal terms, of any rental assistance agreement described under subsection (a)(2) of this section or, if greater, for 5 years; or
(2) the sale or conveyance of the assisted project:
(i) is subject to continuation of the existing mortgage financing described under subsection (a)(1) of this section; and
(ii) occurs before the date of a termination, failure to renew, or expiration of project-based § 8 rental assistance described under subsection (a)(2) of this section.