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1 gating such sum, not to exceed $2,250,000,000, as may be 2 approved in an appropriation Act. The amount so approved 3 shall become available for obligation on July 1, 1975, and 4 shall remain available until obligated. There are authorized 5 to be appropriated for liquidation of the obligations incurred 6 under this section not to exceed $400,000,000 prior to July 1, 7 1976, which amount shall be increased by $750,000,000 8 prior to July 1, 1977, and by $1,100,000,000 prior to July 1, 9 1978. Sums appropriated pursuant to this section shall re10 main available until expended.

11 (b) To assure program continuity and orderly planning, 12 the Secretary shall submit to the Congress authorization re13 quests for the fiscal years 1979 through 1981 not later than 14 February 1, 1977.

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16

APPLICATION REQUIREMENTS

SEC. 122. (a) No grant may be made under this part 17 unless the Secretary has determined from the application

18 that the applicant

(1) has surveyed the condition of the existing housing stock in the community and has assessed the housing

needs of low- and moderate-income persons who are

residing in the community or who are employed in or

may otherwise reasonably be expected to reside in the

community;

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(2) has formulated a program which takes into account the needs of a range of income levels, including persons and families in the lowest income group in the community and those displaced by governmental action,

and which provides, insofar as it is appropriate, for a balanced use of the existing housing stock and the construction of new housing units;

(3) has described the types of assistance to be provided, their estimated annual and long-range costs, the general location of projects, and the financing methods to be used;

(4) has specified the manner in which the Housing Assistance Program is to relate to and further the objectives of any Community Development Program assisted under part A which is being undertaken by the applicant;

(5) has demonstrated compliance with the requirements of section 112 (a) (2) and (4) as such requirements would be applicable to a Housing Assistance Program;

(6) has formulated activities designed to promote greater choice of housing opportunities and to avoid undue concentrations of assisted persons in areas con

24 taining a high proportion of low income persons;

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(7) has taken into account the availability of public facilities and services adequate to serve any proposed

housing projects; and

(8) has described the commitment of State and local resources or aid to be available in carrying out the Housing Assistance Program.

(b) The Secretary shall review at least on an annual 8 basis the performance of recipients of assistance under this 9 part and shall evaluate the continuing capacity of such recip10 ients to carry out in a timely manner the approved Housing 11 Assistance Program. The Secretary may make appropriate 12 adjustments in the amount of the annual grants in accord13 ance with his findings pursuant to this subsection. 14 (c) The Secretary shall either approve or disapprove 15 an application for grants under this part not later than sixty 16 days after the beginning of the fiscal year for which the 17 grants are to be made, unless the Secretary determines that 18 special circumstances warrant an exception to this require19 ment for units of general local government which are not 20 metropolitan cities. Subsequent to the approval of any 21 application the amount of the grant may be adjusted in 22 accordance with the provisions of this chapter.

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23 HOUSING PROGRAM ACTIVITIES ELIGIBLE FOR ASSISTANCE

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SEC. 123. (a) A Housing Assistance Program under

25 this part may include

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(1) grants for the rehabilitation or repair of real

property on which is located a single-family dwelling occupied by the owner for the purpose of making the property conform to applicable code requirements;

(2) loans to finance the rehabilitation or repair of privately owned residential property, including the refinancing of existing indebtedness;

(3) loans to finance the purchase, any needed rehabilitation or repair, and the resale of one- to threefamily dwellings;

(4) periodic grants to reduce the payments for principal, interest, taxes, insurance, and mortgage insurance premiums on mortgages covering one- to three-family dwellings purchased for occupancy by the owner;

(5) periodic grants to reduce rentals paid by tenants or occupancy charges paid by members of a cooperative in privately owned projects and to reduce rentals in projects constructed or purchased with or without rehabilitation or repair for ownership by a public body

or agency;

(6) loans to finance the construction or purchase with or without rehabilitation or repair of rental or cooperative projects;

(7) grants to reduce rentals in dwelling units leased by a public body or agency;

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(8) the modernization of rental or cooperative projects with respect to which assistance under this part

had previously been provided;

(9) loans to nonprofit organizations for the necessary expenses, prior to construction, in planning, and obtaining financing for, the rehabilitation or construction of housing to be assisted under this part; and

(10) relocation payments and assistance, counseling, and tenant services if a Community Development Program is not being undertaken.

(b) No assistance shall be provided for activities de12 scribed in paragraphs (1) through (7) of subsection (a) 13 with respect to any property if the appraised value of that 14 part of the property attributable to dwelling use (after the 15 completion of any repairs or rehabilitation) or the develop16 ment cost of such part of the property, as determined by 17 the Secretary, whichever is applicable, exceeds the appro18 priate prototype cost for the area established under section 3 19 of the Revised National Housing Act by more than 10 per 20 centum, unless the Secretary determines that this limitation 21 should not be applied because of special considerations with 22 respect to the cost of land or site improvements.

23 (c) No assistance shall be provided for activities de24 scribed in paragraph (4) of subsection (a) with respect 25 to any property which exceeds 50 per centum of the