106 STAT. 3706 PUBLIC LAW 102-550—OCT. 28, 1992 Regulations. "(1) COST LIMITATIONS.—The Secretary may establish cost limitations on activities under this section. The amount of rehabilitation funds under subsection (e)(l) that may be approved may not exceed the per unit cost limit applicable to the comprehensive grant program under section 14. "(2) DEMOLITION AND DISPOSITION NOT PERMITTED. —A manager may not demolish or dispose of eligible housing under tms section. "(3) CAPABILITY OF RESIDENT MANAGEMENT CORPORA- TIONS.—To be eligible to become a manager under this section, a resident management corporation— "(A) shall demonstrate to the Secretary its ability to manage public housing effectively and efEiciently, as determined by the Secretary, which shall include evidence of its most recent financial audit; or "(B) shall arrange for operation of the housing by a qualified management entity. "(4) LIMITATIONS ON PHA LIABILITY. —A public housing agency shall not be liable for any act or failure to act by the manager or resident council. "(5) BONDING AND INSURANCE. —Before assuming any management responsibility for eligible housing, a manager shall obtain fidelity bonding and insurance, or eqmvalent protection, in accordance with regulations and requirements established by the Secretary. Such bonding and insurance, or its equivalent, shall be adequate to protect the Secretary and the public hovising agency against loss, theft, embezzlement, or fraudulent acts on the part of the manager or its employees. "(6) RESTRICTION ON DISPLACEMENT BEFORE TRANSFER. — A public housing agency may not involuntarily displace, as determined by the Secretary, any resident of eligible housing during the period beginning on the date that an application under subsection (0 is submitted by a resident council, and ending upon transfer of management of the housing or, if the application is disapproved, the date of the disapproval, "(j) PERFORMANCE REVIEW AND COMPLIANCE. — "(1) MONITORING. — The Secretary shall monitor the performance of managers under this section and shall assess their management performance using the performance indicators established under section 6(j)(l). "(2) RECORDS, REPORTS, AND AUDITS OF MANAGERS.— "(A) KEEPING OF RECORDS.— Each manager and resident council under this subtitle shall keep such records as may be reasonably necessary to disclose the amoiuit and the disposition by the manager of the proceeds of assistance received under this section and to ensure compliance with the requirements of this section. "(B) ACCESS TO DOCUMENTS. — "(i) SECRETARY.—The Secretary shall have access for the purpose of audit and examination to any books, documents, papers, and records of a manager, resident council, and public housing agency that are pertinent to assistance received under, and to the requirements of, this section. "(ii) GAO.—The Comptroller General of the United States, and any duly authorized representatives of the Comptroller General, shall have access for the purpose
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