Page:United States Statutes at Large Volume 97.djvu/1277

 PUBLIC LAW 98-181—NOV. 30, 1983 97 STAT. 1245 approve such increases in accordance with the best available data regarding operating cost increases in rental dwelling units. "(h) After approving a project involving newly constructed or substantially rehabilitated units under this section, the Secretary shall limit cost increases to those approved by the Secretary. The Secretary may approve those increases only for unforeseen factors beyond the owner s control, design changes required by the Secre- tary or the local government, or changes in finanping approved by the Secretary. "(i) For the purpose of achieving the lowest cost in providing units in newly constructed projects assisted under this section, the Secre- tary shall give a preference in entering into contracts under this section for projects which are to be located on specific tracts of land provided by States, units of local government, or others if the Secretary determines that the tract of land is suitable for such housing, and that affording such preference will be cost effective, "(j) The Secretary shall assure that management fees are not excessive when a project developed under this section is managed by the developer or an affiliate of the developer. "(k) For purposes of determining the market feasibility of any project to be assisted under this section— "(1) in the case of any applicant whose project is expected to utilize rental assistance payments under section 521, the Secre- tary shall only require such applicant to demonstrate that a market exists for persons and families eligible for such rental assistance pa3nnents; and "(2) in the case of any applicant whose project is expected to utilize any assistance under a program of a State, or political subdivision thereof, that is similar to such assistance payments under section 521, the Secretary shall only require such appli- cant to demonstrate that— "(A) a market exists for persons and families eligible for such program of assistance; "(B) such program of assistance will provide rental assist- ance for a period of not less than five years, and for the term of the loan remaining after the period of such assist- ance, that an adequate rental market exists for the project without such assistance; and "(C) during the term of such rental assistance contracts, such State or political subdivision shall make available the amounts required for such rental assistance not less than annually. "(1) The Secretary shall establish standards for housing and related facilities rehabilitated or repaired with amounts received under a login made or insured under this section. Standards estab- lished by the Secretary under this subsection shall provide that except for substantial rehabilitation the particular items or systems repaired or rehabilitated must meet appropriate levels of quality or performance comparable to those levels prescribed by the Secretary of Housing and Urban Development for rehabilitation, but shall not require that such items or systems or the remainder of the property meet the standards which are applicable to new construction. The Secretary shall ensure that standards prescribed under this subsec- tion provide decent, safe, and sanitary housing and related facilities, "(m) The Secretary may not deny assistance under this section or section 521 on the basis that the project involved is to be located on more than one site. Management fees. 42 USC 1490a. Housing standards.

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