Page:United States Statutes at Large Volume 101 Part 3.djvu/531

 PUBLIC LAW 100-242—FEB. 5, 1988

101 STAT. 1829

to installation of the energy conservation improvements and the 2 years following the end of the contract period; and "(c) in the third year following the end of the contract period, the energy use in the 3 years following the end of the contract period; or "(II) the Secretary shall provide an additional operating subsidy above the current allowable utility expense level ijjjt. equivalent to the cost of the energy saved as a result of the improvements and sufficient to cover payments for the '* improvements through the term of the contract or agreement; "(iii) there shall be a formal review process for the purpose of providing such revisions (either increases or reductions) to the allowable expense level of a public housing agency as necessary— "(I) to correct inequities and abnormalities that exist in the base year expense level of such public housing agency; "(II) to accurately reflect changes in operating circumstances since the initial determination of such base year expense level; and "(III) to ensure that the allowable expense limit accurately reflects the higher cost of operating the project in an economically distressed unit of local government and the i;^^: lower cost of operating the project in an economically prosperous unit of local government; and "(iv) if a public housing agency redesigns or substantially rehabilitates a public housing project so that 2 or more dwelling units are combined to create a single larger dwelling unit, the payments received under this section shall not be reduced solely because of the resulting reduction in the number of dwelling units if not less than the same number of individuals will reside in the new larger dwelling unit as resided in the dwelling units '•^* ^ ^^ that were combined to form such larger dwelling unit.". (b) AUTHORIZATION OF APPROPRIATIONS.—Section 9(c) of the United States Housing Act of 1937 is amended to read as follows: 42 USC 1437g. 0 "(c) There are authorized to be appropriated for purposes of ^ providing annual contributions under this section $1,500,000,000 for fiscal year 1988 and $1,530,000,000 for fiscal year 1989.". (c) TIME OF PAYMENT.—Section 9 of the United States Housing Act of 1937 is amended by adding at the end the following new subsection: "(e) In the case of any public housing agency that submits its budget for any fiscal year of such agency to the Secretary in a timely manner in accordance with the regulations issued by the Secretary under this section, assistance to be provided to such agency under this section for such fiscal year shall commence not later than the 1st month of such fiscal year, and shall be paid in accordance with such payment schedule as may be agreed upon by the Secretary and such agency.". (d) USE OF OPERATING SUBSIDIES TO REMEDY P H A NONCOMPLIANCE WITH AUDIT RESPONSIBILITIES.—Section 9(a)(1) of the United States
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Housing Act of 1937 is amended by adding at the end the following new sentences: "If the Secretary determines that a public housing agency has failed to take the actions required to submit an acceptable audit on a timely basis in accordance with chapter 75 of title 31, United States Code, the Secretary may arrange for, and pay the

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