Page:United States Statutes at Large Volume 104 Part 5.djvu/976

 104 STAT. 4298 PUBLIC LAW 101-625—NOV. 28, 1990 "(1) CAPITAL ADVANCES. —A capital advance provided under this section shall bear no interest and its repayment shall not be required so long as the housing remains available for very low-income elderly persons in accordance with this section. Such advance shall be in an amount calculated in accordance with the development cost limitation established in subsection (h). Government "(2) PROJECT RENTAL ASSISTANCE.— Contracts for project rental contracts. assistance shall obligate the Secretary to make monthly pay- ments to cover any part of the costs attributed to units occupied (or, as approved by the Secretary, held for occupancy) by very low-income elderly persons that is not met from project income. The annual contract amount for any project shall not exceed the sum of the initial annual project rentals for all units so occupied and any initial utility allowances for such units, as approved by the Secretary. Any contract amounts not used by a project in any year shall remain available to the project until the expiration of the contract. The Secretary may adjust the annual contract amount if the sum of the project income and the amount of assistance payments available under this paragraph are inadequate to provide for reasonable project costs. "(3) TENANT RENT CONTRIBUTION. —A very low-income person shall pay as rent for a dwelling unit assisted under this section the highest of the following amounts, rounded to the nearest dollar: (A) 30 percent of the person's adjusted monthly income, (B) 10 percent of the person's monthly income, or (C) if the person is receiving payments for welfare assistance from a public agency and a part of such payments, adjusted in accordance with the person's actual housing costs, is specifically designated by such agency to meet the person's housing costs, the portion of such payments which is so designated. " (d) TERM OF COMMITMENT. — "(1) USE LIMITATIONS. —A l l units in housing assisted under this section shall be made available for occupancy by very lowincome elderly persons for not less than 40 years. "(2) CONTRACT TERMS.— The initial term of a contract entered into under subsection (c)(2) shall be 240 months. The Secretary shall, to the extent approved in appropriation Acts, extend any expiring contract for a term of not less than 60 months. In order to facilitate the orderly extension of expiring contracts, the Secretary is authorized to make commitments to extend expiring contracts during the year prior to the date of expiration. "(e) APPLICATIONS. — Funds made available under this section shall be allocated by the Secretary among approvable applications submitted by private nonprofit organizations. Applications for assistance under this section shall be submitted by an applicant in such form and in accordance with such procedures as the Secretary shall establish. Such applications shall contain— "(1) a description of the proposed housing; "(2) a description of the assistance the applicant seeks under this section; "(3) a description of the resources that are expected to be made available in compliance with subsection (h); "(4) a description of (A) the category or categories of elderly persons the housing is intended to serve; (B) the supportive services, if any, to be provided to the persons occupying such housing; (C) the manner in which such services will be provided

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