Page:United States Statutes at Large Volume 124.djvu/4104

 124 STAT. 4078 PUBLIC LAW 111–372—JAN. 4, 2011 for the housing, who has the managerial capacity and responsi- bility for carrying out the actions described in subparagraphs (A) and (B) of subsection (g)(2);’’. SEC. 102. DEVELOPMENT COST LIMITATIONS. Section 202(h)(1) of the Housing Act of 1959 (12 U.S.C. 1701q(h)(1)) is amended, in the matter preceding subparagraph (A), by inserting ‘‘reasonable’’ before ‘‘development cost limitations’’. SEC. 103. OWNER DEPOSITS. Section 202(j)(3)(A) of the Housing Act of 1959 (12 U.S.C. 1701q(j)(3)(A)) is amended by inserting after the period at the end the following: ‘‘Such amount shall be used only to cover oper- ating deficits during the first 3 years of operations and shall not be used to cover construction shortfalls or inadequate initial project rental assistance amounts.’’. SEC. 104. DEFINITION OF PRIVATE NONPROFIT ORGANIZATION. Section 202(k)(4) of the Housing Act of 1959 (12 U.S.C. 1701q(k)(4)) is amended to read as follows: ‘‘(4) The term ‘private nonprofit organization’ means— ‘‘(A) any incorporated private institution or founda- tion— ‘‘(i) no part of the net earnings of which inures to the benefit of any member, founder, contributor, or individual; ‘‘(ii) which has a governing board— ‘‘(I) the membership of which is selected in a manner to assure that there is significant rep- resentation of the views of the community in which such housing is located; and ‘‘(II) which is responsible for the operation of the housing assisted under this section, except that, in the case of a nonprofit organization that is the sponsoring organization of multiple housing projects assisted under this section, the Secretary may determine the criteria or conditions under which financial, compliance and other administra- tive responsibilities exercised by a single-entity private nonprofit organization that is the owner corporation responsible for the operation of an indi- vidual housing project may be shared or trans- ferred to the governing board of such sponsoring organization; and ‘‘(iii) which is approved by the Secretary as to financial responsibility; and ‘‘(B) a for-profit limited partnership the sole general partner of which is— ‘‘(i) an organization meeting the requirements under subparagraph (A); ‘‘(ii) a for-profit corporation wholly owned and con- trolled by one or more organizations meeting the requirements under subparagraph (A); or ‘‘(iii) a limited liability company wholly owned and controlled by one or more organizations meeting the requirements under subparagraph (A).’’.