Page:United States Statutes at Large Volume 101 Part 3.djvu/530

 101 STAT. 1828

PUBLIC LAW 100-242—FEB. 5, 1988

"(g) AUTHORIZATION OF APPROPRIATIONS.—Of the total amount approved in appropriation Acts under section 103 of the Housing and Community Development Act of 1974, there shall be set aside to carry out this section $5,000,000 for fiscal year 1988 and $5,210,000 for fiscal year 1989.". SEC. 118. PAYMENTS FOR OPERATION OF LOWER INCOME HOUSING PROJECTS. (a) PERFORMANCE FUNDING SYSTEM.—Section 9(a) of the United 42 USC 1437g.

Insurance.

Contracts. Energy. Utilities.

States Housing Act of 1937 is amended— (1) by striking the last sentence of paragraph (1); and (2) by adding at the end the following new paragraph: "(3)(A) For purposes of making payments under this section, the Secretary shall utilize a performance funding system that is substantially based on the system defined in regulations and in effect on the date of the enactment of the Housing and Community Development Act of 1987 (as modified by this paragraph), and that establishes standards for costs of operation and reasonable projections of income, taking into account the character and location of the project and the characteristics of the families served, in accordance with a formula representing the operations of a prototype wellmanaged project. Such performance funding system shall be established in consultation with public housing agencies and their associations, be contained in a regulation promulgated by the Secretary prior to the start of any fiscal year to which it applies, and remain in effect for the duration of such fiscal year without change. Notwithstanding the preceding sentences, the Secretary shall revise the performance funding system by June 15, 1988, to accurately reflect the increase in insurance costs incurred by public housing agencies. "(B) Under the performance funding system established under this paragraph— "(i) in the first year that the reductions occur, any public housing agency shall share equally with the Secretary any cost reductions due to the differences between projected and actual utility rates attributable to actions taken by the agency which lead to such reductions; "(ii) in the case of any public housing agency that receives financing (from a person other than the Secretary) or enters into a performance contract to undertake energy conservation improvements in a public housing project, under which payment does not exceed the cost of the energy saved as a result of the improvements during a negotiated contract period of not more than 12 years that is approved by the Secretary— "(I) the public housing agency shall retain 100 percent of any cost avoidance due to differences between projected and actual utility consumption (adjusted for heating degree days) attributable to the improvements, until the term of the financing agreement is completed, at which time the annual utility expense level 3-year rolling beise procedures shall be applied using— "(a) in the first year following the end of the contract period, the energy use during the 2 years prior to installation of the energy conservation improvements and the last contract year; %,f^ ._, "(b) in the second year following the end of the ^'' " ' ' contract period, the energy use during the 1 year prior

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