112 STAT. 2558 PUBLIC LAW 105-276—OCT. 21, 1998 "(ii) the complexity of capital program of the public housing agency; "(iii) any limitation on the ability of the public housing agency to obligate the amounts allocated for the agency from the Capital Fund in a timely manner as a result of State or local law; or "(iv) such other factors as the Secretary determines to be relevant. " (3) EFFECT OF FAILURE TO COMPLY. — "(A) PROHIBITION OF NEW ASSISTANCE. — A public housing agency shall not be awarded assistance under this section for any month during any fiscal year in which the public housing agency has funds unobligated in violation of paragraph (1) or (2). " (B) WITHHOLDING OF ASSISTANCE.— During any fiscal year described in subparagraph (A), the Secretary shall withhold all assistance that would otherwise be provided to the public housing agency. If the public housing agency cures its failure to comply during the year, it shall be provided with the share attributable to the months remaining in the year. "(C) REDISTRIBUTION.—The total amount of any funds not provided public housing agencies by operation of this paragraph shall be allocated for agencies determined under section 6( j) to be high-performing. " (4) EXCEPTION TO OBLIGATION REQUIREMENTS.— "(A) IN GENERAL.— Subject to subparagraph (B), if the Secretary has consented, before the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998, to an obligation period for any agency longer than provided under paragraph (1), a public housing agency that obligates its funds before the expiration of that period shall not be considered to be in violation of paragraph (1). " (B) PRIOR FISCAL YEARS. —Notwithstanding subparagraph (A), any funds appropriated to a public housing agency for fiscal year 1997 or prior fiscal years shall be fully obligated by the public housing agency not later than September 30, 1999. "(5) EXPENDITURE OF AMOUNTS.— "(A) IN GENERAL.— A public housing agency shall spend any assistance received under this section not later than 4 years (plus the period of any extension approved by the Secretary under paragraph (2)) after the date on which funds become available to the agency for obligation. "(B) ENFORCEMENT. — The Secretary shall enforce the requirement of subparagraph (A) through default remedies up to and including withdrawal of the funding. "(6) RIGHT OF RECAPTURE. — Any obligation entered into by a public housing agency shall be subject to the right of the Secretary to recapture the obligated amounts for violation by the public housing agency of the requirements of this subsection. " (k) EMERGENCY RESERVE AND USE OF-AMOUNTS.— "(1) SET-ASIDES.— In each fiscal year after fiscal year 1999, the Secretary shall set aside, for use in accordance with this subsection, not more than 2 percent of the total amount made
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