provisions of this section prior to making any payment under such contract.

ENERGY CONSERVATION

SEC. 13. The Secretary shall, to the maximum extent practicable, require that newly constructed and substantially rehabilitated projects assisted under this Act with authority provided on or after October 1, 1979, shall be equipped with heating and cooling systems selected on the basis of criteria which include a life-cycle cost analysis of such systems.

COMPREHENSIVE IMPROVEMENT ASSISTANCE PROGRAM

SEC. 14. (a) It is the purpose of this section to provide assist

ance

(1) to improve the physical condition of existing public housing projects; and

(2) to upgrade the management and operation of such projects;

in order to assure that such projects continue to be available to serve lower income families.

(b) The Secretary may make available and contract to make available financial assistance (in such amounts as are authorized pursuant to section 5(c) and as may be approved in appropriations Acts) to public housing agencies for the purpose of improving the physical condition of existing low-rent public housing projects and for upgrading the management and operation of such projects to the extent necessary to maintain such physical improvements.

(c) Assistance under subsection (b) may be made available only for low-rent housing projects which

(1) are owned by public housing agencies;

(2) are operated as rental housing projects and receive assistance under section 5(c) or section 9 of this Act;

(3) are not assisted under section 8 of this Act; and

(4) meet such other requirements consistent with the purposes of this section as the Secretary may prescribe.

(d) Except as provided in subsection (e)(4), no assistance may be made available under subsection (b) unless the Secretary has approved an application from the public housing agency which has been developed in consultation with appropriate local officials and with tenants of the housing projects for which assistance is requested. Such application shall contain at least

(1) a comprehensive assessment of (A) the current physical condition of each project for which assistance is requested, and (B) the physical improvements necessary for each such project to meet the standards established by the Secretary pursuant to subsection (j);

(2) an identification, for each such project, of the equipment systems or structural elements which would normally be replaced (assuming routine and timely maintenance is performed) over the remaining period of the annual contributions contract or during the 30-year period beginning on the date of submission of the application, whichever period is longer;

(3) a comprehensive assessment of the improvements needed to upgrade the management and operation of each such project so that decent, safe, and sanitary living conditions will be provided in such projects; such assessment shall include at least an identification of needs related to

(A) the management, financial, and accounting control systems of the public housing agency which are related to each project eligible for assistance under this section;

(B) the adequacy and qualifications of personnel employed by such public housing agency (in the management and operation of such projects) for each category of employment; and

(C) the adequacy and efficacy of—

(i) tenant programs and services in such projects;

(ii) the security of each such project and its tenants; (iii) policies and procedures of the public housing agency for the selection and eviction of tenants in such projects; and

(iv) other policies and procedures of such agency relating to such projects, as specified by the Secretary; and

(4) a plan for making the improvements and replacements, and for meeting the needs, described in paragraphs (1), (2), and (3); such plan shall include at least

(A) a schedule of those actions which are to be completed, over a period of not greater than 5 years from the date of approval of such application by the Secretary, within each 12-month period covered by such plan and which are necessary

(i) to make the improvements, described in paragraph (1)(B), for each project for which assistance is requested, and

(ii) to upgrade the management and operation of such projects as described in paragraph (3);

(B) the estimated cost of each of the actions described in subparagraph (A);

(C) an estimate of the total costs of the replacement of the items identified for each such project pursuant to paragraph (2) over the remaining period of the annual contributions contract or during the 30-year period beginning on the date of submission of the application, whichever period is longer, including an estimate of the amount of funds necessary to fund the costs which have accrued for the period which ends upon the date on which the application is made, and an estimate of the costs which will accrue during each 12-month period subsequent to such application;

(D) an operating budget for each such project for each 12-month period covered by such plan, excluding costs described in subparagraphs (B) and (C); and

(E) an estimate of the financial resources which will be available from all sources to each such project and to the public housing agency (to the extent the resources of the agency relate to such project), and the amounts of assist

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ance which are being requested pursuant to subsection (b) for each 12-month period covered by the plan.

(e) The amount of financial assistance made available under subsection (b) to any public housing agency with respect to any year may not exceed the sum of

(1) an amount determined by the Secretary to be necessary to undertake the actions specified for such year in the schedule submitted pursuant to subsection (d)(4)(A);

(2) the amount determined necessary by the Secretary to fund the replacement costs which have been identified pursuant to subsection (d)(4)(C) for each project, which have accrued for the period ending at the beginning of such year, and for which payment under subsection (b) has not been made previously;

(3) the amount determined necessary by the Secretary to reimburse the public housing agency for the cost of developing the plan described pursuant to subsection (d)(4), less any amount which has been provided such public housing agency with respect to such year under paragraph (4); and

(4) in the case of a public housing agency which meets such criteria of financial distress as are established by the Secretary and which has submitted the information described in paragraphs (1), (2), and (3) of subsection (d), the amount determined necessary by the Secretary to enable such agency to develop the plan described pursuant to subsection (d)(4);

except that not more than 5 per centum of the total amount utilized for annual contributions contracts under subsection (b) in any year shall be made available for the purposes described in paragraphs (3) and (4).

(f) [Repealed.]

(g) No assistance shall be made available to a public housing agency pursuant to subsection (b) for any year subsequent to the first year for which such assistance is made available to such agency unless the Secretary has determined that such agency has made substantial efforts to meet the objectives for the preceding year under the plan described in subsection (d)(4) and approved by the Secretary.

(h) In making assistance available under subsection (b), the Secretary shall give preference to public housing agencies

(1) which request assistance for projects (A) having conditions which threaten the health or safety of the tenants, or (B) having a significant number of vacant, substandard units; and (2) which have demonstrated a capability of carrying out the activities proposed in the plan submitted by the agency pursuant to subsection (d)(4) and approved by the Secretary. (i)(1) In addition to assistance made available under subsection (b), the Secretary may, without regard to the requirements of subsections (c), (d), (e), (g), and (h), make available and contract to make available financial assistance (in such amounts as are authorized pursuant to section 5(c) and as approved in appropriation Acts) to any public housing agency in an amount which the Secretary determines is necessary to meet emergency or special purpose needs, especially emergency and special purpose needs which relate to fire safety standards. Such needs shall be limited to

(A) correcting conditions which threaten the health or safety of the tenants of any project (i) which is described in subsection (c), and (ii) with respect to which an application for assistance pursuant to subsection (d) has not been approved by the Secretary;

(B) correcting conditions (i) which threaten the health or safety of the tenants of any project with respect to which an application for assistance pursuant to subsection (d) has been approved, and (ii) which were unanticipated at the time of the development of such application;

(C) correcting conditions which threaten the health or safety of the occupants of any lower income housing project not described in subsection (c) and not assisted pursuant to section 8;

or

(D) physical improvements needs which (i) would not otherwise be eligible for assistance under this section, and (ii) pertain to any lower income housing project other than a project assisted under section 8.

(2) The Secretary may issue such rules and regulations as may be necessary to carry out this subsection.

(j)(1) The Secretary may issue such rules and regulations as may be necessary to carry out the provisions and purposes of this section.

(2) The Secretary shall issue rules and regulations establishing standards which provide for decent, safe, and sanitary living conditions in low-rent public housing projects and for energy conserving improvements in such projects and which, to the extent practicable, are consistent with the Minimum Property Standards for Multi-Family Housing as they reasonably would be applied to existing housing, except that the Secretary may establish higher standards on a project-by-project basis in such cases where the Secretary deems such higher standards appropriate for furthering the purposes of this section.

PAYMENT OF NONFEDERAL SHARE

SEC. 15. Any of the following may be used as the non-Federal share required in connection with activities undertaken under Federal grant-in-aid programs which provide social, educational, employment, and other services to the tenants in a project assisted under this Act, other than under section 8:

(1) annual contributions under this Act for operation of the project; or

(2) rental or use-value of buildings or facilities paid for, in whole or in part, from development, modernization, or operation cost financed with loans or debt service annual contributions under this Act.

INCOME ELIGIBILITY FOR ASSISTED HOUSING

SEC. 16. (a) Not more than 25 per centum of the dwelling units which were available for occupancy under public housing annual contributions contracts and section 8 housing assistance payments contracts under this Act before the effective date of the Housing and Community Development Amendments of 1981, and which will

be leased on or after such effective date shall be available for leasing by lower income families other than very low-income families. (b) Not more than 5 per centum of the dwelling units which become available for occupancy under public housing annual contributions contracts and section 8 housing assistance payments contracts under this Act on or after the effective date of the Housing and Community Development Amendments of 1981 shall be available for leasing by lower income families other than very low income families.

RENTAL REHABILITATION AND DEVELOPMENT GRANTS

SEC. 17. (a) PROGRAM AUTHority.—(1) REHABILITATION AND DEVELOPMENT GRANTS.-The Secretary is authorized

(A) to make rental rehabilitation grants to help support the rehabilitation of privately owned real property to be used for primarily residential rental purposes in accordance with subsection (c); and

(B) to make development grants for new construction or substantial rehabilitation in accordance with subsection (d).

(2) AUTHORITY TO RESERVE HOUSING ASSISTANCE.-In connection with a grant under this section, the Secretary may reserve authority to provide housing assistance under section 8(0) to the extent necessary

(A) to provide housing assistance to persons displaced by activities under this section; or

(B) to support the grantee's program.

(3) AUTHORIZATION.-To carry out the purposes of this section, the Secretary may utilize not to exceed $615,000,000, as provided in section 5(c) for fiscal years 1984 and 1985, of which amount

(A) not to exceed $150,000,000 shall be available in each such year for rental rehabilitation, of which $1,000,000 shall be available each year for technical assistance; and

(B) not to exceed $200,000,000 for fiscal year 1984, and $115,000,000 for fiscal year 1985, shall be available for development grants.

(b) DISTRIBUTION OF RENTAL REHABILITATION GRANT FUNDS.——(1) FORMULA ALLOCATION.-Of the amount available in any fiscal year for rehabilitation grants under this section, the Secretary shall allocate amounts for rehabilitation grants under subsection (c) to cities having populations of fifty thousand or more, urban counties, and States for use as provided in subsection (e), on the basis of a formula which shall be contained in a regulation proposed by the Secretary not later than sixty days after the effective date of this section. Such regulation shall be accompanied by the specific fund allocation for fiscal year 1984 for individual cities, urban counties, and States which would result from the proposed formula and any adjustments under paragraph (2). The formula contained in the regulation shall take into account objectively measurable conditions, including such factors as low income renter population, overcrowding of rental housing, the extent of physically inadequate housing stock, and such other objectively measurable conditions as

The effective date of the section was November 30, 1983.