Page:United States Statutes at Large Volume 104 Part 5.djvu/1006

 104 STAT. 4328 PUBLIC LAW 101-625—NOV. 28, 1990 Secretary in accordance with section 109 of the Cranston- Gonzalez National Affordable Housing Act; and (G) the cost of land, including necessary site improvement. In establishing development cost limitations for a given market area, the Secretary shall use data that reflect currently prevailing costs of acquisition, construction, reconstruction, or rehabilitation, and land acquisition in the area. (2) RTC PROPERTIES.— In the case of existing housing and related facilities from the Resolution Trust Corporation under section 21A(c) of the Federal Home Loan Bank Act, the cost limitations shall include— (A) the cost of acquiring such housing, (B) the cost of rehabilitation, alteration, conversion, or improvement, including the moderate rehabilitation thereof, and (C) the cost of the land on which the housing and related facilities are located. (3) ANNUAL ADJUSTMENTS. — The Secretary shall adjust the cost limitation not less than once annually to reflect changes in the general level of acquisition, construction, reconstruction, or rehabilitation costs. (4) INCENTIVES FOR SAVINGS. — (A) SPECIAL PROJECT ACCOUNT. —The Secretary shall use the development cost limitations established under paragraph (1) to calculate the Eimount of financing to be made available to individual owners. Owners which incur actual development costs that are less than the amount of financing shall be entitled to retain 50 percent of the savings in a special project account. Such percentage shall be increased to 75 percent for owners which add energy efficiency features which (i) exceed the energy efficiency standards promulgated by the Secretary in accordance with section 109 of the Cranston-Gonzalez National Affordable Housing Act; (ii) substantially reduce the life-cycle cost of the housing; (iii) reduce gross rent requirements; and (iv) enhsmce tenant comfort and convenience. (B) USES. —The special project account established under subparagraph (A) may be used (i) to supplement services provided to residents of the housing or funds set-aside for replacement reserves, or (ii) for such other purposes as determined by the Secretary. (5) FUNDS FROM OTHER SOURCES. —An owner shall be permitted voluntarily to provide funds from non-Federal sources for amenities and other features of appropriate design and construction suitable for supportive housing for persons with disabilities if the cost of such amenities is (A) not financed with the advance, and (B) is not taken into account in determining the amount of Federal assistance or of the rent contribution of tenants. (i) TENANT SELECTION. —(1) An owner shall adopt written tenant selection procedures that are satisfactory to the Secretary as (A) consistent with the purpose of improving housing opportunities for very low-income persons with disabilities; and (B) resisonably related to program eligibility and an applicant's ability to perform the obligations of the lease. Owners shall promptly notify in writing any rejected applicant of the grounds for any rejection.

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