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1 gations for which the annual contributions provided for in 2 the contract shall have been pledged as security. In no case

3 shall such annual contributions be in excess of the maximum

4

10

sum specified in the contract involved, nor for longer than 5 the remainder of the maximum period fixed by the contract. 6 "(g) Every contract for annual contributions made 7 pursuant to this Act shall provide that where the public 8 housing agency determines such action to be necessary to 9 operate the project on a solvent basis, it may require, as a condition to the initial occupancy of the tenants involved, 11 an agreement with the appropriate State or local agency administering or supervising the administration of a State 13 plan approved under title I, X, XIV, or XVI, or part A 14 of title IV, of the Social Security Act, or administering or supervising the administration of any other State or 16 local program providing aid or assistance based on need and 17 having the same general objectives as the programs under

12

15

18

such plans, under which such agency will make payments 19 of rent (in the form of lump-sum payments or otherwise)

20 on behalf of tenants in the project who are receiving aid or

21 assistance under such plan or program.

22

24

"(h) Every contract for annual contributions made pursuant to this Act shall provide that the public housing

agency shall have the right, to the maximum extent con

25 sistent with applicable State and local law, to declare in

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eligible for continued occupancy (and require the removal

from the project of) any family in the project which

25

"(1) does not make its required rent payments

when due, or

"(2) violates any rule, regulation, or standard which may be established by the public housing agency, in

consultation with the tenants, for the safety of tenants

or the physical maintenance of the project;

and the lease between each family and the public housing agency shall contain provisions, incorporating the terms and conditions of this subsection, under which such family agrees

to allow such agency (as the agent of such family) to remove all of its possessions and belongings from the project at any time when its rent payments are more than 60 days in arrears. The public housing agency may in its discretion

waive its rights under this subsection in any case which in

volves a medical or other emergency or a sudden loss of em

ployment or in which the requirement of removal from the project would entail severe and unusual hardship.

"CONGREGATE HOUSING

"SEC. 7. The Secretary shall encourage public housing agencies, in providing housing predominantly for displaced, elderly, or handicapped families, to design, develop, or otherwise acquire such housing to meet the special needs of the

occupants and, wherever practicable, for use in whole or in

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1 part as congregate housing: Provided, That not more than 2 10 per centum of the total amount of contracts for annual 3 contributions entered into in any fiscal year pursuant to the 4 new authority granted under section 202 of the Housing 5 and Urban Development Act of 1970 or under any law 6 subsequently enacted shall be entered into with respect to 7 units in congregate housing. As used in this paragraph the 8 term 'congregate housing' means low-income housing (A) 9 in which some or all of the dwelling units do not have 10 kitchen facilities, and (B) connected with which there is 11 a central dining facility to provide wholesome and econom12 ical meals for elderly, handicapped, and displaced families 13 under terms and conditions prescribed by the public housing agency to permit a generally self-supporting operation. Expenditures incurred by a public agency in the operation of a central dining facility in connection with congregate housing (other than the cost of providing food and service) shall 18 be considered one of the costs of operation of the project.

14

15

16

17

"LOW-INCOME HOUSING IN PRIVATE ACCOMMODATIONS

"SEC. 8. (a) (1) For the purpose of providing a supplementary form of low-income housing which will aid in assuring a decent place to live for every citizen and promote

efficiency and economy in the program under this Act by taking full advantage of vacancies in the private housing

market, each public housing agency shall, to the maximum

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1 extent consistent with the achievement of the objectives of 2 this Act, provide low-income housing under this Act in the 3 form of low-income housing in private accommodations in 4 accordance with this section where such housing in private 5 accommodations can be provided at a cost not greater than 6 housing in projects assisted under other provisions of this Act. 7 "(2) The provisions of this section shall not apply to any locality unless the governing body of the locality has by 9 resolution approved the application of such provisions to such

8

10 locality.

11

"(3) As used in this section, the term 'low-income hous12 ing in private accommodations' means dwelling units, leased 13 from a private owner, which provide decent, safe, and sani14 tary dwelling accommodations and related facilities effectively 15 supplementing the accommodations and facilities in low16 income housing assisted under the other provisions of this Act 17 in a manner calculated to meet the total housing needs of the 18 community in which they are located; and the term 'owner'

19

means any person or entity having the legal right to lease or 20 sublease property containing one or more dwelling units as

21 described in this section.

22

2 2 2 2 2 2

23

"(b) Each public housing agency, by notification to the

owners of housing suitable for use as low-income housing in 24 private accommodations, or by publication or advertisement, or otherwise, shall from time to time make known to the

25

79-555 O 72 10

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1 public in the community or communities under its jurisdic2 tion the anticipated need for dwelling units in such commu3 nity or communities to be used as low-income housing in 4 private accommodations under this section, inviting the own5 ers of such dwelling units to make available for purposes of 6 this section one or more of such units (not exceeding 10 per centum of the units in any single structure except to the ex8 tent that the agency, because of the limited number of units

7

9

in the structure or for any other reason, determines that such 10 limit should not be applied). The public housing agency 11 shall conduct appropriate inspections of the units offered to 12 be made available in any residential structure by the owner 13 thereof in response to such invitation, and if—

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