Authorization; maximum term; maximum aggregate amount
The Secretary of Housing and Urban Development (hereinafter referred to as the “Secretary”) is authorized to make, and contract to make, annual payments to a “housing owner” on behalf of “qualified tenants”, as those terms are defined herein, in such amounts and under such circumstances as are prescribed in or pursuant to this section. In no case shall a contract provide for such payments with respect to any housing for a period exceeding forty years. The aggregate amount of the contracts to make such payments shall not exceed amounts approved in appropriation Acts, and payments pursuant to such contracts shall not exceed $150,000,000 per annum prior to July 1, 1969, which maximum dollar amount shall be increased by $40,000,000, on July 1, 1969, by $100,000,000 on July 1, 1970, and by $40,000,000 on July 1, 1971.
Criteria and procedure for determining eligibility and rental charges; recertification of income; agreements for services required in selection of tenants; delegation of authority to issue certificates
For purposes of carrying out the provisions of this section, the Secretary shall establish criteria and procedures for determining the eligibility of occupants and rental charges, including criteria and procedures with respect to periodic review of tenant incomes and periodic adjustment of rental charges.
Procedures adopted by the Secretary hereunder shall provide for recertifications of the incomes of occupants no less frequently than annually for the purpose of adjusting rental charges and annual payments on the basis of occupants’ incomes, but in no event shall rental charges adjusted under this section for any dwelling exceed the fair market rental of the dwelling.
The Secretary may enter into agreements, or authorize housing owners to enter into agreements, with public or private agencies for services required in the selection of qualified tenants, including those who may be approved, on the basis of the probability of future increases in their incomes, as lessees under an option to purchase (which will give such approved qualified tenants an exclusive right to purchase at a price established or determined as provided in the option) dwellings, and in the establishment of rentals. The Secretary is authorized (without limiting his authority under any other provision of law) to delegate to any such public or private agency his authority to issue certificates pursuant to this subsection.
No payments under this section may be made with respect to any property for which the costs of operation (including wages and salaries) are determined by the Secretary to be greater than similar costs of operation of similar housing in the community where the property is situated.
Payments for benefit of certain projects having mortgages made by State or local housing finance or government agencies
The Secretary shall, not later than 45 days after receipt of an application by the mortgagee, provide interest reduction and rental assistance payments for the benefit of projects assisted under this section whose mortgages were made by State or local housing finance agencies or State or local government agencies for a term equal to the remaining mortgage term to maturity on projects assisted under this section to the extent of—
unexpended balances of amounts of authority as set forth in certain letter agreements between the Department of Housing and Urban Development and such State or local housing finance agencies or State or local government agencies, and
existing allocation under section 236 contracts on projects whose mortgages were made by State or local housing finance agencies or State or local government agencies which are not being funded, to the extent of such excess allocation, for any purposes permitted under the provisions of this section.
An application shall be eligible for assistance under the previous sentence only if the mortgagee submits the application within 548 days after February 5, 1988, along with a certification of the mortgagee that amounts are to be utilized hereunder for the purpose of either (A) reducing rents or rent increases to tenants, or (B) making repairs or otherwise increasing the economic viability of a related project. Unexpended balances referred to in the first sentence of this subsection which remain after disposition of all such applications is favorably concluded shall be rescinded. The authority conferred by this subsection to provide interest reduction and rental assistance payments shall be available only to the extent approved in appropriation Acts.
[Pub. L. 89–117, title I, § 101], Aug. 10, 1965, [79 Stat. 451]; [Pub. L. 90–19, § 22(a)], (c), May 25, 1967, [81 Stat. 26]; [Pub. L. 90–448, title II], §§ 201(e), 202, title XI, § 1106(b), Aug. 1, 1968, [82 Stat. 502], 503, 567; [Pub. L. 91–152, title I, § 112], Dec. 24, 1969, [83 Stat. 383]; [Pub. L. 91–609, title I], §§ 103, 114(c), 118(b), 120(a), (b), Dec. 31, 1970, [84 Stat. 1771], 1774, 1775; [Pub. L. 96–153, title II, § 203(a)], Dec. 21, 1979, [93 Stat. 1106]; [Pub. L. 96–399], Oct. 8, 1980, title II, § 205, [94 Stat. 1630]; [Pub. L. 97–35, title III], §§ 322(g), 327, Aug. 13, 1981, [95 Stat. 403], 407; [Pub. L. 98–181, title I] [title II, §§ 203(b)(3), 219], Nov. 30, 1983, [97 Stat. 1178], 1187; [Pub. L. 98–479, title I, § 102(d)], title II, § 204(e), Oct. 17, 1984, [98 Stat. 2222], 2233; [Pub. L. 100–242, title I], §§ 167(a)(2), 168, 170(h), title IV, § 430(b), Feb. 5, 1988, [101 Stat. 1864], 1867, 1920; [Pub. L. 104–99, title IV, § 402(d)(5)], Jan. 26, 1996, [110 Stat. 42]; [Pub. L. 105–276, title V, § 514(d)], Oct. 21, 1998, [112 Stat. 2548].)