Page:United States Statutes at Large Volume 104 Part 5.djvu/798

 104 STAT. 4120 PUBLIC LAW 101-625—NOV. 28, 1990 shall begin to accrue 1 year after the completion of the construction, acquisition, or substantial rehabilitation of the project and shall be payable in annual installments. (ii) EXCEPTION.— Interest and any accrued interest shall be payable only from the surplus cash flow of the project, after a minimum return on equity determined by the participating jurisdiction to be appropriate. As used in the previous sentence, the term "surplus cash flow" means the cash flow of the project after the pa3anent of all amounts due under the first mortgage, operating expenses, and required replacement reserves, as determined by the participating jurisdiction. (B) ADDITIONAL INTEREST PAYMENTS.— Under the model program, for any year in which the sum of the surplus cash flow of a project and the return on equity exceeds all interest payments due under subparagraph (A), 50 percent of the excess surplus cash flow shall be paid to the participating jurisdiction's HOME Investment Trust Fund as additional interest. (C) PRINCIPAL AND UNPAID INTEREST.—The principal amount of an advance under the model program, and any interest remaining unpaid pursuant to subparagraph (A)(ii) shall be repayable when the housing no longer qualities as affordable housing in accordance with section 219(b). Qo) SELECTION GUIDEUNES.— (1) IN GENERAL.—The Secretary shall establish guidelines for the selection of projects by participating jurisdictions for assistance under the model program. Such guidelines shall be designed to select projects in areas and for markets demonstrating the greatest need for the production of affordable rental housing. (2) SPECIFIC REQUIREMENTS. — The selection guidelines may include— (A) the extent of the shortage of rental housing in the area that is available to low-income families; (B) the extent large families with children will be served by the project; (C) the extent to which the project provides congregate facilities and has available supportive services that will permit elderly or handicapped residents who become frail and are in need of assistance in living to continue to reside in the project; (D) the extent of very low-income and low-income occupancy in excess of the income targeting requirements in section 214; (E) the extent of the project sponsor's commitment of equity to the project (except that this criterion shall not apply to or affect the selection of applications submitted by public housing agencies and nonprofit entities); (F) the extent of the project sponsor's commitment of equity to the project in comparison to the value of all public assistance for the project, including assistance under this title, other Federal assistance and financing, and State and local government contributions (except that this criterion shall not apply to or affect the selection of applications

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