Page:United States Statutes at Large Volume 95.djvu/431

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 405

"INCOME ELIGIBILITY FOR ASSISTED HOUSING

"SEC. 16. (a) Not more than 10 per centum of the dwelling units 42 USC I437n. which were available for occupancy under public housing annual contributions contracts and section 8 housing assistance payments contracts under this Act before the effective date of the Housing and Community Development Amendments of 1981, and which will be Ante. p. 384. leased on or after such effective date shall be available for leasing by lower income families other than very low-income families. "(b) Not more than 5 per centimi of the dwelling units which become available for occupancy under public housing annual contributions contracts and section 8 housing assistance payments contracts under this Act on or after the effective date of the Housing and Community Development Amendments of 1981 shall be available for leasing by lower income families other than very low-income families.". COST REDUCTION IN ASSISTED HOUSING

SEC. 324. Section 8 of the United States Housing Act of 1937 is 42 USC I437f. amended— (1) by inserting after the first sentence of subsection (b)(2) the following: "To increase housing opportunities for very lowincome families, the Secretary shall assure that newly constructed housing to be assisted under this section is modest in design."; (2) by adding at the end of subsection (c)(2) the following: Contract rents, "(D) Notmthstanding the foregoing, the Secretary shall limit increases, limitation. increases in contract rents for newly constructed or substantially rehabilitated projects assisted under this section to the amount of operating cost increases incurred with respect to comparable rent«d dwelling units of various sizes and types in the Same market area which are suitable for occupancy by families assisted under this section. Where no comparable dwelling units exist in the same market area, the Secretary shall have authority to approve such increases in accordance with the best available data regarding operating cost increases in rental dwelling units."; and (3) by adding at the end thereof the following: "(1) After selection of a proposal involving newly constructed or substantially rehabilitated units for assistance under this section, the Secretary shall limit cost and rent increases, except for adjustments in rent pursuant to section 8(c)(2), to those approved by the Secretary. The Secretary may approve those increases only for unforeseen factors beyond the owner's control, design chsmges required by the Secretary or the local government, or changes in financing approved by the Secretary. "(m) For the purpose of achieving the lowest cost in providing units in newly constructed projects assisted under this section, the Secretary shall give a preference in entering ihto contracts under this section for projects which are to be located on specific tracts of land provided by States or units of local government if the Secretary determines that the tract of land is suitable for such housing, and that affording such preference will be cost effective. "(n) In msJdng assistance available under subsection (e)(5) and subsection (i), the Secretary may provide assistance with respect to residential properties in which some or all of the dwelling units do not contain bathroom or kitchen facilities, if—

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