139 1 structure or to a group of such tenants occupying units ag 2 gregating in value at least 80 per centum of the structure's 3 total value. 4 "ANNUAL CONTRIBUTIONS FOR OPERATION OF LOW-INCOME 5 6 HOUSING PROJECTS "SEC. 9. (a) The Secretary may make annual con7 tributions to public housing agencies for the operation of 8 low-income housing projects. The contribution payable under 9 this section shall not exceed the amounts which the Secretary 10 determines are required (1) to assure the low-income char11 acter of the projects involved and (2) to achieve adequate 12 operating services. The Secretary may embody the provi13 sions for such annual contributions in a contract guarantee14 ing their payment and containing such terms and conditions. 15 designed to assure the economic and social viability of the 16 project as he determines are necessary to carry out the pur17 poses of this Act without undue reliance on the financial 18 assistance provided under this section. 19 "(b) The aggregate rentals required to be paid in any 20 year by families residing in the dwelling units administered 21 by a public housing agency receiving annual contributions 22 under this section shall not be less than an amount equal to 23 one-fifth of the sum of the incomes of all such families. 24 "(c) No annual contributions shall be paid under this 140 1 section with respect to any low-income housing project un2 less the Secretary determines that sound management prac 3 tices will be followed in the operation of the project, 4 including 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 "(1) the establishment of tenant eligibility cri teria which, within a reasonable period of time, will assure that the project will include families with a broad range of incomes and will avoid concentrations of very low-income and socially deprived problem families; "(2) the establishment of satisfactory procedures to assure the prompt payment and collection of rents and for the prompt processing of evictions in the case of nonpayment of rent; and "(3) the establishment of effective tenant-management relationships which assure that satisfactory standards of behavior are required of all tenants and that the public housing agency (together with tenant councils where they exist) enforces those standards fully and effectively. "(d) From the amounts authorized under section 5 (c) 21 of this Act, the Secretary is authorized to enter into con 22 tracts for annual contributions under this section aggregating 23 not more than $200,000,000 per annum. There is authorized 24 to be appropriated for the payment of additional contribu25 tions under this section for the fiscal year beginning July 1, 26 1972, not to exceed $100,000,000. 2 "SEC. 10. (a) In the performance of, and with respect 3 to, the functions, powers, and duties vested in him by this 4 Act, the Secretary, notwithstanding the provisions of any 5 other law, shall 6 7 8 9 10 11 12 13 14 15 16 “(1) prepare annually and submit a budget program as provided for wholly owned Government corporations by the Government Corporation Control Act, as amended; and "(2) maintain an integral set of accounts which shall be audited annually by the General Accounting Office in accordance with the principles and procedures applicable to commercial transactions as provided by the Government Corporation Control Act, as amended, and no other audit shall be required. "(b) All receipts and assets of the Secretary under this 17 Act shall be available for the purposes of this Act until 18 expended. 19 "(c) The Federal Reserve banks are authorized and 20 directed to act as depositories, custodians, and fiscal agents 21 for the Secretary in the general exercise of his powers under 22 this Act, and the Secretary may reimburse any such bank 23 for its services in such manner as may be agreed upon. "FINANCING LOW-INCOME HOUSING PROJECTS "SEC. 11. (a) Obligations issued by a public housing agency in connection with low-income housing projects which 142 1 (1) are secured (A) by a pledge of a loan under any agree2 ment between such public housing agency and the Secretary 3 or (B) by a pledge of annual contributions under an annual 4 contributions contract between such public housing agency 5 and the Secretary, or (C) by a pledge of both annual contri6 butions under an annual contributions contract and a loan 7 under an agreement between such public housing agency 8 and the Secretary, and (2) bear, or are accompanied by, a 9 certificate of the Secretary that such obligations are so 10 secured, shall be incontestable in the hands of a bearer, and 11 the full faith and credit of the United States is pledged to 12 the payment of all amounts agreed to be paid by the Secre13 tary as security for such obligations. 14 "(b) Obligations, including interest thereon, issued by 15 public housing agencies in connection with low-income hous16 ing projects shall be exempt from all taxation now or here17 after imposed by the United States whether paid by such 18 agencies or by the Secretary. The income derived by such 19 agencies from such projects shall be exempt from all taxation 20 now or hereafter imposed by the United States. 225 22 21 22 "LABOR STANDARDS "SEC. 12. Any contract for loans, annual contributions, 23 sale, or lease pursuant to this Act shall contain a provision 24 requiring that not less than the wages prevailing in the local25 ity, as determined or adopted (subsequent to a determination 143 1 under applicable State or local law) by the Secretary, shall 2 be paid to all architects, technical engineers, draftsmen, and 3 technicians employed in the development and to all main4 tenance laborers and mechanics employed in the operation of 5 the low-income housing project involved; and shall also 6 contain a provision that not less than the wages prevailing 7 in the locality, as predetermined by the Secretary of Labor 8 pursuant to the Davis-Bacon Act (49 Stat. 1011), shall be 9 paid to all laborers and mechanics employed in the develop10 ment of the project involved (including a project for the 11 use of privately built housing in any case, other than under 12 the authority of section 8 of this Act, where the public 13 housing agency and the builder or sponsor enter into an 14 agreement for such use before construction or rehabilitation 15 is commenced), and the Secretary shall require certification 16 as to compliance with the provisions of this section prior to 18 19 APPLICABILITY OF RENTAL REQUIREMENTS SEC. 302. If a contract for annual contributions entered 20 into pursuant to section 9 of the United States Housing Act 21 of 1937, as amended by section 301 of this Act, would require 22 the establishment of an increased rental charge for a family 23 which occupies a low-income housing dwelling unit as of the 24 effective date of such contract, the required adjustment in |