Page:United States Statutes at Large Volume 101 Part 3.djvu/552

 101 STAT. 1850

PUBLIC LAW 100-242—FEB. 5, 1988

authority, available to the public housing agency for a specified period.". SEC. 142. SECTION 8 FAIR MARKET RENTALS AND CONTRACT RENTS. (a) ANNUAL ADJUSTMENT.—Section 8(c)(l) of the United States

42 USC 1437f.

New York.

Housing Act of 1937 is amended by inserting before the last sentence the following new sentence: "Each fair market rental in effect under this subsection shall be adjusted to be effective on October 1 of each year to reflect changes, based on the most recent available data trended so the rentals will be current for the year to which they apply, of rents for existing or newly constructed rental dwelling units, as the case may be, of various sizes and types in the market area suitable for occupancy by persons assisted under this section.". (b) CALCULATION FOR CERTAIN CoUNTY.—Section 8(c)(l) of the

United States Housing Act of 1937 is amended by adding at the end the following new sentence: "The Secretary shall establish separate fair market rentals under this paragraph for Westchester County in the State of New York.". (c) COMPARABILITY.—

(1) Section 8(c)(1) of the United States Housing Act of 1937 (as amended by subsection (b) of this section) is further amended by adding at the end the following new sentence: "If units assisted under this section are exempt from local rent control while they are so assisted or otherwise, the maximum monthly rent for such units shall be reasonable in comparison with other units in the market area that are exempt from local rent control.". (2) Section 8(c)(2)(C) of the United States Housing Act of 1937 is amended— (A) by striking "assisted and comparable unassisted units" and inserting the following: "assisted units and unassisted units of similar quality and age in the same market area"; and (B) by adding at the end the following new sentence: "If ' ' the Secretary or appropriate State agency does not complete and submit to the project owner a comparability study ' ' not later than 60 days before the anniversary date of the assistance contract under this section, the automatic annual adjustment factor shall be applied.". (d) PROHIBITION ON REDUCTION OF CERTAIN CONTRACT RENTS.—

Section 8(c)(2)(C) of the United States Housing Act of 1937 (as amended by subsection (c) of this section) is further amended by adding at the end the following new sentence: "The Secretary may not reduce the contract rents in effect on or after April 15, 1987, for newly constructed, substantially rehabilitated, or moderately rehabilitated projects assisted under this section (including projects assisted under this section as in effect prior to November 30, 1983), unless the project has been refinanced in a manner that reduces the periodic payments of the owner.". (e) REPEAL OF LIMIT ON (CONTRACT RENT INCREASES.—Section 8(c)(2) of the United States Housing Act of 1937 is amended by striking subparagraph (D). SEC. 143. HOUSING VOUCHER PROGRAM.

(a) OPERATION.—Section 8(o) of the United States Housing Act of 1937 is amended—

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