Page:United States Statutes at Large Volume 104 Part 5.djvu/887

 PUBLIC LAW 101-625—NOV. 28, 1990 104 STAT. 4209 units for families administered by each participating public housing agency. (3) NoNDiSPLACEMENT. —No person who is a tenant of public housing during the term of the demonstration program may be involuntarily relocated or displaced under the demonstration program, (e) HOUSING DEVELOPMENT. — (1) USE OF PUBLIC HOUSING OPERATING SUBSIDIES. — For the purpose of providing reasonable and necessary operating costs in connection with the development of additional affordable housing, under the demonstration program the Secretary shall amend the annual contributions contract between the Secretary and each participating public housing agency as the Secretary determines appropriate to permit the public housing agency to utilize operating subsidy amounts allocated to the agency under section 9 of the United States Housing Act of 1937 with respect to newly constructed or rehabilitated housing units that are privately developed and owned. Such units shall be reserved for use under the demonstration program for occupancy by very low-income families as provided under this subsection and subsection (g). (2) LEASE TERMS.— Operating subsidy amounts shall be provided for the operation of housing under paragraph (1) pursuant to a lease contract between the owner of the housing and the public housing agency, which shall specify— (A) the number of units to be leased exclusively to the public housing agency for the term of the demonstration program, subject only to the availability of amounts under paragraph (1) or other funds for such purposes; and (B) the requirements under subsection (f)(6). (3) TRANSFER OF AMOUNTS. —Operating subsidy amounts may be provided for a unit of housing under paragraph (1) only after the execution of a lease under subsection (fK5) for 1 corresponding public housing unit. (4) RENTAL TERMS. —Units leased by a participating public housing agency under this subsection shall be available only to very low-income families that reside, or have been offered a unit, in public housing administered by the public housing agency and that enter into a voluntary contract under subsection (g)(D. The rental charge for each unit shall be the amount equal to 30 percent of the adjusted income of the resident family (as determined under section 3(b) of the United States Housing Act of 1937), except that the rental charge may not exceed a ceiling rent determined by the public housing agency in the manner that monthly rent is determined under section 3(a)(2)(A)ofsuchAct. (5) INCOME MIX.—Not more than 25 percent of the units in each privately developed housing project under the demonstration program may be leased by a public housing agency pursuant to a lease contract under paragraph (2). The number of units under each such lease may not be less than the number of public housing units that, notwithstanding the demonstration program, would have been assisted with the operating subsidy amounts made available under such contract, to ensure that there shall be no loss of public housing units. (6) COORDINATION WITH OTHER ENTITIES FOR DEVELOPMENT OF HOUSING.—A participating public housing agency may seek the

�