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1 ing (other than the cost of providing food and service) shall

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be considered one of the costs of operation of the project.

3 "LOW-INCOME HOUSING IN PRIVATE ACCOMMODATIONS

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"SEC. 8. (a) (1) For the purpose of providing a supple5 mentary form of low-income housing which will aid in assur6 ing a decent place to live for every citizen and promote 7 efficiency and economy in the program under this Act by 8 taking full advantage of vacancies in the private housing 9 market, each public housing agency shall, to the maximum extent consistent with the achievement of the objectives of this Act, provide low-income housing under this Act in the 12 form of low-income housing in private accommodations in 13 accordance with this section where such housing in private 14 accommodations can be provided at a cost not greater than 15 housing in projects assisted under other provisions of this Act. 16 "(2) The provisions of this section shall not apply to 17 any locality unless the governing body of the locality has by 18 resolution approved the application of such provisions to such 19 locality.

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"(3) As used in this section, the term 'low-income hous21 ing in private accommodations' means dwelling units, leased 22 from a private owner, which provide decent, safe, and sani23 tary dwelling accommodations and related facilities effectively 24 supplementing the accommodations and facilities in low

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1 income housing assisted under the other provisions of this 2 Act in a manner calculated to meet the total housing needs 3 of the community in which they are located; and the term 4 'owner' means any person or entity having the legal right 5 to lease or sublease property containing one or more dwell6 ing units as described in this section.

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"(b) Each public housing agency, by notification to the owners of housing suitable for use as low-income housing in 9 private accommodations, or by publication or advertisement, 10 or otherwise, shall from time to time make known to the 11 public in the community or communities under its jurisdic12 tion the anticipated need for dwelling units in such commu13 nity or communities to be used as low-income housing in 14 private accommodations under this section, inviting the own15 ers of such dwelling units to make available for purposes of 16 this section one or more of such units (not exceeding 10 per 17 centum of the units in any single structure except to the ex18 tent that the agency, because of the limited number of units 19 in the structure or for any other reason, determines that such 20 limit should not be applied). The public housing agency 21 shall conduct appropriate inspections of the units offered to be made available in any residential structure by the owner 23 thereof in response to such invitation, and if

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"(1) it finds that such units are, or may be made, suitable for use as low-income housing in private ac

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commodations within the meaning of subsection (a)

(3), and

"(2) the rentals to be charged for such units, as negotiated and agreed to by the agency and the owner

of the structure in a manner consistent with subsection (c) (2), are within the financial range of families of low income, such agency may approve such units for use as low-income housing in private accommodations in accordance with (and subject to the applicable limita

tions contained in) this section. Each public housing 11 agency shall maintain and keep current a list of units

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approved by it under this subsection, including such

information with respect to each such unit as it may consider necessary or appropriate.

"(c) To the extent of contracts for annual contributions 16 entered into by the Secretary with a public housing agency 17 under this Act, such agency may enter into contracts with 18 the owners of structures containing dwelling units approved 19 under subsection (b) for the use of such units in accordance 20 with this section (and no limitation not specifically provided 21 for in this section shall be imposed by regulations of the 22 Secretary on the types of categories of structures or dwelling 23 units, qualifying under subsection (a) (3) and approved 24 under subsection (b), which may be so used in any com

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1 munity). Each such contract with an owner shall provide

2 (with respect to any unit) that

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"(1) the selection of tenants for such unit shall be

the function of the owner, subject to the provisions of
the contract between the Secretary and the agency;
"(2) the rental and other charges to be received
by the owner shall be negotiated and agreed to by the
agency and the owner, and the rental and other charges
to be paid by the tenant shall be determined in accord-
ance with the standards applicable to units in low-income

housing projects assisted under the other provisions of
this Act;

"(3) the agency shall have the sole right to give notice to vacate, with the owner having the right to make representations to the agency for termination of a tenancy;

"(4) maintenance and replacement (including redecoration) shall be in accordance with the standard practice for the building concerned as established by the owner and agreed to by the agency; and

"(5) the agency and the owner shall carry out such other appropriate terms and conditions as may be mutually agreed to by them.

24 Each contract between a public housing agency and an owner

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1 less than twelve months nor more than one hundred and 2 twenty months, and shall be renewable by such agency and 3 owner at the expiration of such term: Provided, That no 4 renewal of such a contract shall result in a total term exceed5 ing two hundred and forty months (or one hundred and 6 eighty months in the case of an existing structure).

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"(d) The period over which payments will be made to

a public housing agency for a project of low-income housing 9 in private accommodations under this section, and the aggre10 gate amount of such payments, under a contract for annual 11 contributions, shall be determined on the basis of the number 12 of units in the community or communities under the juris13 diction of such agency which are in use (or can reasonably 14 be expected to be placed in use) as low-income housing in 15 private accommodations under this section, taking into ac16 count the terms of the leases under which such units are (or 17 will be) so used. In addition, contracts for financial assistance 18 entered into by the Secretary with a public housing agency 19 pursuant to this section shall provide for reimbursement of 20 reasonable and necessary expenses incurred by such agency in 21 conducting inspections described in subsection (b). 22 "(e) The provisions of sections 5(e) and 6(d) of this 23 Act shall not apply to (1) low-income housing in private 24 accommodations provided under this section, or (2) hous

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