Page:United States Statutes at Large Volume 104 Part 5.djvu/939

 PUBLIC LAW 101-625—NOV. 28, 1990 104 STAT. 4261 "(C) current tenants will not be involuntarily displaced (except for good cause); "(D) any increase in rent contributions for current tenants will be to a level that does not exceed 30 percent of the adjusted income of the tenant or the published existing fair market rent for comparable housing established under section 8(c) of the United States Housing Act of 1937, whichever is lower, except that the rent contributions of any tenants occupying the housing at the time of any increase may not be reduced by reason of this subparagraph (except with respect to tenants receiving section 8 assistance in accordance with subparagraph (E)(ii) of this paragraph); "(E)(i) any resulting increase in rents for current tenants (except for increases made necessary by incresised operating costs)— "(I) shall be phased in equally over a period of not less than 3 years, if such increase is 30 percent or more; and "(II) shall be limited to not more than 10 percent per year if such increase is more than 10 percent but less than 30 percent; and "(ii) assistance under section 8 of the United States Housing Act of 1937 shall be provided, to the extent available under appropriation Acts, if necessary to mitigate any adverse effect on current income-eligible very low- and lowincome tenants; and "(F)(i) rents for units becoming available to new tenants shall be at levels approved by the Secretary that will ensure, to the extent practicable, that the units will be available and affordable to the same proportions of very low-income families or persons, low-income families or persons, and moderate-income families or persons (including families or persons whose incomes are 95 percent or more of area median income) as resided in the housing as of January 1, 1987 (based on the area median income limits established by the Secretary in February 1987), or the date the plan of action is approved, whichever date results in the highest proportion of very low-income families, except that this limitation shall not prohibit a higher proportion of very low-income families from occupying the housing; and "(ii) in approving rents under this paragraph, the Secretary shall take into account any additional incentives provided under this subtitle; "(G) future rent adjustments shall be— "(i) made by applying an annual factor (to be determined by the Secretary) to the portion of rent attributable to operating expenses for the housing and by making changes in the annual authorized return under section 214; and "(ii) subject to a procedure, established by the Secretary, for owners to apply for rent increases not adequately compensated by annual adjustment under clause (i), under which the Secretary may increase rents in excess of the amount determined under clause (i) only if the Secretary determines such increases are necessary to reflect extraordinary necessary expenses of owning and maintaining the housing; and

�