Page:United States Statutes at Large Volume 101 Part 3.djvu/577

 PUBLIC LAW 100-242—FEB. 5, 1988

101 STAT. 1875

"(B) the Secretary may not require an amount to be contributed, from the reserve funds established by the owner of such projects for the purpose of making capital improvements, in excess of 50 percent of the amount of such reserve funds on the date of such loan; and "(C) The Secretary shall waive the requirements of this paragraph if such owner is a private nonprofit corporation or an association. "(3) The Secretary may provide assistance for capital improvements under this section if the Secretary finds that the reserve funds established by the owner of a project for the purpose of making capital improvements are insufficient to finance both the capital improvements for which such assistance is to be used and other capital improvements that are reasonably expected to be required in the near future, and such insufficiency is not the result of the failure of such owner to comply with any standard established by the Secretary for management of such reserve funds. "(4) In providing, and contracting to provide, assistance for capital improvements under this section, the Secretary shall— "(A) give priority to projects that are eligible for incentives under section 224(b) of the Emergency Low Income Housing Preservation Act of 1987; and "(B) with respect to any amounts not required for projects under subparagraph (A), give priority among other projects based on the extent to which— "(i) the capital improvements for which such assistance is requested are immediately required; "(ii) the projects serve as the residences of lower income families, and the extent which other suitable housing is unavailable for such families in the areas in which such projects are located; "(iii) the capital improvements for which such assistance is requested involve the life, safety, or health of the residents of the project or involve major capital improvements in the projects; and "(iv) the projects demonstrate the greatest financial distress, while continuing to meet the requirements of subsection (d)(D. "(1)(1) The principal amount of any sissistance for capital improvements under this section that is provided to the owner of a project shall not exceed the difference between the contribution made by the owner in accordance with subsection (k)(2) and the sum of— "(A) the amount determined by the Secretary to be necessary for such owner to make capital improvements with respect to capital items that have failed, or are likely to deteriorate seriously or fail in the near future, in such projects; "(B) the amount determined by the Secretary to be necessary to carry out a plan to upgrade the capital items being improved, and any other capital items determined by the Secretary to be associated with such capital items being improved and to require upgrading, to meet cost-effective energy efficiency standards prescribed by the Secretary; and "(C) the amount determined by the Secretary to be necessary to comply with the requirements of section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794). "(2)(A) The term of any gissistance for capital improvements in the form of a loan under this section shall not exceed the remaining

91-194 O - 90 - 19: QL.3 Part 3

Safety. Health and medical care.

Energy.

Loans.

�