PUBLIC LAW 102-550 —OCT. 28, 1992 106 STAT. 3687 (j) I^fDIAN HOUSING. —Section 23(o)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437u(o)(2)) is amended to read as follows: "(2) APPLICABILITY TO INDIAN PUBLIC HOUSING AUTHORI- TIES. — Notwithstanding any other provision of law, the provisions of this section shall be optional for Indian housing authorities.". Subtitle B—Public and Indian Housing SEC. 111. MAJOR RECONSTRUCTION OF OBSOLETE PROJECTS. (a) IN GENERAL. —Section 5(j)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437c(j)(2)) is amended to read as follows: "(2)(A) Notwithstanding any other provision of law, the Secretary may reserve not more than 20 percent of any amounts appropriated for development of public housing in each fiscal year for the substantial redesign, reconstruction, or redevelopment of existing obsolete public housing projects or buildings and for the costs of improving the management and operation of projects undergoing redesign, reconstruction, or redevelopment under this paragraph (to the extent that such improvement is necessary to maintain the physical improvements resulting from such redesign, reconstruction, or redevelopment). "(B) For purposes of this paragraph, the term 'obsolete public housing project or building' means a public housing project or building (i) having design or marketability problems resulting in vacancy in more than 25 percent of the units, or (iiXD for which the costs for redesign, reconstruction, or redevelopment (including any costs for lead-based paint abatement activities) exceed 70 percent of the total development cost limits for new construction of similar units in the area, and (II) which has an occupancy density or a building height that is significantly in excess of that which prevails in the neighborhood in which the project is located, a bedroom configuration that could be altered to better serve the needs of families seeking occupancy to dwellings of the public housing agency, significant security problems in and around the project, or significant physical deterioration or inefficient energy and utility systems. "(C) The Secretary shall allocate amounts reserved under this section to public housing agencies on the basis of a competition among public housing agencies applying for such amounts. The competition shall be based on— "(i) the management capability of the public housing agency to carry out the redesign, reconstruction, or redevelopment; "(ii) the expected term of the useful life of the project or building after redesign, reconstruction or redevelopment; and "(iii) the likelihood of achieving full occupancy within the projects or buildings of the agency that are to be assisted under this paragraph. "(D) The Secretary shall establish limitations on the total costs of any project or building receiving amounts under this paragraph for redesign, reconstruction, and redevelopment. The cost limitations shall not be related to the total development cost system for new development or to the cost limits for modernization and shall recognize the higher direct costs of such work.
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