29 1 amount of the payments for principal, interest, taxes, in 2 surance, and mortgage insurance premiums due under the 3 mortgage covering such property. 4 (d) No assistance shall be provided under this part 5 which 6 བ 7 8 9 10 11 12 13 14 15 16 a (1) would reduce the amount an owner-occupant of one- to three-family dwelling pays toward the principal, interest, taxes, insurance, and mortgage insurance premiums due under any mortgage covering such dwelling to less than 20 per centum of the owner's income; and (2) would reduce the rentals for a tenant or occupancy charges for a member of a cooperative, including utilities, to less than 20 per centum of the tenant's or cooperative member's income. (e) Persons or families cligible to receive the benefits of 17 assistance under this part shall have incomes which do not 18 exceed 80 per centum of the median income for the area, as 19 determined by the Secretary with adjustments for smaller 20 and larger families, except that the Secretary may establish 21 income ceilings higher or lower than 80 per centum of the 22 median for the area on the basis of his findings that such 23 variations are necessary because of prevailing levels of con24 struction costs, unusually high or low family incomes, or 25 other factors. At least 50 per centum of the families or per 30 1 sons assisted under this part over each three-year period in 2 the community shall be in approximately the lower one 3 half of those eligible for assistance pursuant to this subsection. 4 (f) Assistance provided for activities described in para 5 graphs (1) through (3) of subsection (a) shall be made 6 only in connection with neighborhood rehabilitation pro7 grams. 8 (g) For purposes of this part, the Secretary shall define income uniformly for all areas. 9 10 11 12 13 (h) The construction, rehabilitation or repair, or acquisition of property assisted under this part which is not financed with loans from a public body or agency shall be financed with assistance under the Revised National 14 Housing Act. A public body or agency financing the con15 struction, rehabilitation or repair, or acquisition of property 16 under this part shall implement the provisions of section 7 (b) 17 of the Revised National Housing Act, to the extent appropri18 ate, as if such body or agency were the Secretary. ALLOCATION AND DISTRIBUTION OF FUNDS SEC. 124. (a) Of the amount approved in an appropri 21 ation Act under section 121 for grants in any year, 75 per 22 centum shall be allocated by the Secretary to metropolitan 23 areas. Except as provided in subsection (c), each metropol24 itan city shall be eligible for annual grants in an aggregate 31 1 amount not exceeding its basic grant entitlement amount 2 computed pursuant to subsection (b). 3 4 5 6 7 8 9 10 11 12 23 13 (b) (1) The Secretary shall allocate for each metropoli tan area an amount which bears the same ratio to the allo cation for all metropolitan areas as the average of the ratios between (A) the population of the metropolitan area and that of all metropolitan areas; (B) the extent of poverty in the metropolitan area and that in all metropolitan areas; and (C) the extent of housing overcrowding in the metropolitan area and that in all metropolitan areas. (2) From the amount allocated to each metropolitan 14 area, the Secretary shall determine for each metropolitan city 15 therein a basic grant entitlement which shall equal an amount 16 which bears the same ratio to the allocation for the metro17 politan area as the average of the ratios between (A) the population of the metropolitan city and that of the metropolitan area; (B) the extent of poverty in the metropolitan city and that in the metropolitan area; and (C) the extent of housing overcrowding in the metropolitan city and that in the metropolitan area. (3) The remainder of the allocation for any metro 32 1 politan area shall be allocated by the Secretary for grants 2 to States and units of general local government for use in 3 that metropolitan area, taking into consideration such factors 4 as population, extent of poverty, extent of housing over 5 crowding, and other social and fiscal conditions in that metro6 politan area. 7 (4) In determining the average of ratios under para8 graph (1) or paragraph (2), the ratio involving the extent 9 of poverty shall be counted twice. 10 (c) (1) Any amounts allocated to a metropolitan city 11 pursuant to subsection (b), and any portion of the re12 mainder of the allocation for a metropolitan area, which are 13 not approved by the Secretary for distribution to such city. 14 or in such metropolitan area shall be available for grants 15 to States, metropolitan cities, and other units of general local 16 government for use in any metropolitan area. 17 (2) The Secretary shall make a determination as to the 18 amounts which are to be reallocated pursuant to paragraph 19 (1) not later than sixty days after the beginning of the 20 fiscal year for which grants are to be made. 21 22 23 (d) Of the amount approved in an appropriation Act 22 under section 121 for grants in any area, 25 per centum 23 shall be allocated by the Secretary for grants to States and 24 units of general local government for use outside of metro25 politan areas, taking into consideration such factors as popu 33 1 lation, extent of poverty, extent of housing deficiencies, and 2 other social and fiscal conditions. 3 (e) In allocating amounts other than amounts to metro 4 politan cities, the Secretary shall give a priority to 5 6 7 ས 8 9 10 11 12 (1) urban counties; (2) units of general local government whose programs are in accord with any State development policies and priorities; and (3) two or more units of general local government which combine to conduct a single Housing Assistance Program. (f) All computations and determinations by the Secre13 tary under this section shall be final and conclusive. 14 15 PUBLIC FINANCING OF HOUSING PROJECTS SEC. 125. (a) The Secretary is authorized, upon such 16 terms and conditions as he may prescribe, to guarantee the 17 timely payment of principal of and interest on the obligations 18 of States, units of general local government, or agencies 19 thereof, issued to finance undertakings necessary for the con20 struction, rehabilitation, repair or modernization, and acqui21 sition of housing units, the occupants of which are to receive 22 the benefits of grants made under this part. Obligations 23 guaranteed under this section shall bear interest at a rate 24 or rates satisfactory to the Secretary and shall be secured |