Page:United States Statutes at Large Volume 110 Part 2.djvu/424

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110 STAT. 1321-277 PUBLIC LAW 104-134—APR. 26, 1996 ADMINISTRATIVE PROVISIONS (INCLUDING TRANSFER OF FUNDS) EXTEND ADMINISTRATIVE PROVISIONS FROM THE RESCISSION ACT SEC. 201. (a) PUBLIC AND INDIAN HOUSING MODERNIZATION.— (1) EXPANSION OF USE OF MODERNIZATION FUNDING.— Sub- 42 USC 1437/. section 14(q) of the United States Housing Act of 1937 is amended to read as follows: "(q)(l) In addition to the purposes enumerated in subsections (a) and (b), a public housing agency may use modernization assistance provided under section 14, and development assistance provided under section 5(a) that was not allocated, as determined by the Secretary, for priority replacement housing, for any eligible activity authorized by this section, by section 5, or by applicable Appropriations Acts for a public housing agency, including the demolition, rehabilitation, revitalization, and replacement of existing units and projects and, for up to 10 percent of its allocation of such funds in any fiscal year, for any operating subsidy purpose authorized in section 9. Except for assistance used for operating subsidy purposes under the preceding sentence, assistance provided to a public housing agency under this section shall principally be used for the physical improvement, replacement of public housing, other capital purposes, and for associated management improvements, and such other extraordinary purposes as may be approved by the Secretary. Low-income and very low-income units assisted under this paragraph shall be eligible for operating subsidies, unless the Secretary determines that such units or projects do not meet other requirements of this Act. "(2) A public housing agency may provide assistance to developments that include units, other than units assisted under this Act (except for units assisted under section 8 hereof) ('mixed income developments'), in the form of a grant, loan, operating assistance, or other form of investment which may be made to— "(A) a partnership, a limited liability company, or other legal entity in which the public housing agency or its affiliate is a general partner, managing member, or otherwise participates in the activities of such entity; or "(B) any entity which grants to the public housing agency the option to purchase the development within 20 years after initial occupancy in accordance with section 42(i)(7) of the Internal Revenue Code of 1986, as amended. "Units shall be made available in such developments for periods of not less than 20 years, by master contract or by individual lease, for occupancy by low-income and very lowincome families referred from time to time by the public housing agency. The number of such units shall be: "(i) in the same proportion to the total number of units in such development that the total financial commitment provided by the public housing agency bears to the value of the total financial commitment in the development, or "(ii) not be less than the number of units that could have been developed under the conventional public housing program with the assistance involved, or "(iii) as may otherwise be approved by the Secretary.