110 STAT. 838 PUBLIC LAW 104-120—MAR. 28, 1996 "(i) who the public housing agency determines is illegally using a controlled substance; or "(ii) if the public housing agency determines that it has reasonable cause to believe that such person's illegal use (or pattern of illegal use) of a controlled substance, or abuse (or pattern of abuse) of alcohol, may interfere with the health, safety, or right to peaceful enjoyment of the premises by other residents of the project; and "(B) that allow the public housing agency to terminate the tenancy in any public housing unit of, and the assistance under section 8 for, any person— "(i) who the public housing agency determines is illegally using a controlled substance; or "(ii) whose illegal use of a controlled substance, or whose abuse of alcohol, is determined by the public housing agency to interfere with the health, safety, or right to peaceful enjoyment of the premises by other residents of the project. "(2) CONSIDERATION OF REHABILITATION. — In determining whether, pursuant to paragraph (1), to deny occupancy or assistance to any person based on a pattern of use of a controlled substance or a pattern of abuse of alcohol, a public • housing agency may consider whether such person— "(A) has successfully completed a supervised drug or alcohol rehabilitation program (as applicable) and is no longer engaging in the illegal use of a controlled substance or abuse of alcohol (as applicable); "(B) has otherwise been rehabilitated successfully and is no longer engaging in the illegal use of a controlled substance or abuse of alcohol (as applicable); or "(C) is participating in a supervised drug or alcohol rehabilitation program (as applicable) and is no longer engaging in the illegal use of a controlled substance or abuse of alcohol (as applicable). "(3) INAPPLICABILITY TO INDIAN HOUSING. —This subsection does not apply to any dwelling unit assisted by an Indian housing authority. ". SEC. 10. PUBLIC HOUSING DESIGNATED FOR ELDERLY AND DISABLED FAMILIES. (a) AUTHORITY FOR DESIGNATION.— Section 7 of the United States Housing Act of 1937 (42 U.S.C. 1437e) is amended to read as follows: "D ESIGNATED HOUSING FOR ELDERLY AND DISABLED FAMILIES "SEC. 7. (a) AUTHORITY TO PROVIDE DESIGNATED HOUSING. — "(1) IN GENERAL. —Subject only to provisions of this section and notwithstanding any other provision of law, a public housing agency for which a plan under subsection (d) is in effect may provide public housing projects (or portions of projects) designated for occupancy by (A) only elderly families, (B) only disabled families, or (C) elderly and disabled families. "(2) PRIORITY FOR OCCUPANCY. — In determining priority for admission to public housing projects (or portions of projects) that are designated for occupancy as provided in paragraph (1), the public housing agency may make units in such projects
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