Page:United States Statutes at Large Volume 104 Part 5.djvu/979

 PUBLIC LAW 101-625—NOV. 28, 1990 104 STAT. 4301 "(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 construction, reconstruction, or rehabilitation costs. "(4) INCENTIVES FOR SAVINGS. — "(A) SPECIAL HOUSING ACCOUNT.— The Secretary shall use the development cost limitations established under paragraph (1) or (2) to calculate the amount 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 housing 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) enhance tenant comfort and convenience. "(B) USES.—The special housing 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) DESIGN FLEXIBILITY. — The Secretary shall, to the extent practicable, give owners the flexibility to design housing appropriate to their location and proposed resident population within broadly defined parameters. "(6) USE OF 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 the elderly 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) IN GENERAL. —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) reasonably 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. "(2) INFORMATION REGARDING HOUSING UNDER THIS SECTION. — The Secretary shall provide to an appropriate agency in each area (which may be the applicable Area Agency on the Aging)

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