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1 and owner at the expiration of such term: Provided, That 2 no renewal of such a contract shall result in a total term 3 exceeding two hundred and forty months (or one hundred 4 and eighty months in the case of an existing structure). "(d) The period over which payments will be made to 6 a public housing agency for a project of low-income housing 7 in private accommodations under this section, and the aggre8 gate amount of such payments, under a contract for annual 9 contributions, shall be determined on the basis of the number 10 of units in the community or communities under the juris11 diction of such agency which are in use (or can reasonably 12 be expected to be placed in use) as low-income housing in 13 private accommodations under this section, taking into ac14 count the terms of the leases under which such units are (or 15 will be) so used. In addition, contracts for financial assistance 16 entered into by the Secretary with a public housing agency 17 pursuant to this section shall provide for reimbursement of 18 reasonable and necessary expenses incurred by such agency 19 in conducting inspections described in subsection (b).

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"(e) The provisions of sections 5 (e) and 6(d) of this

21 Act shall not apply to (1) low-income housing in private 22 accommodations provided under this section, or (2) housing 23 purchased (or in the process of purchase) by the public 24 agency for resale to tenants as provided in subsection (f).

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"(f) To the extent authorized in contracts entered into

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1 by the Secretary with a public housing agency, such agency 2 may purchase any structure containing one or more dwelling 3 units leased to provide low-income housing in private accom4 modations under this section for the purpose of reselling the 5 structure to the tenant or tenants of the structure or to a 6 group of such tenants occupying units aggregating in value 7 at least 80 per centum of the structure's total value. Any 8 such resale may be made on the terms and conditions set 9 forth in section 10 of this Act.

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"ANNUAL CONTRIBUTIONS FOR OPERATION OF LOW

INCOME HOUSING PROJECTS

"SEC. 9. (a) In addition to the contributions authorized 13 under section 5 of this Act, the Secretary may make annual 14 contributions to public housing agencies for the operation 15 of low-income housing projects. The contribution payable 16 annually under this section shall not exceed the amounts 17 which the Secretary determines are required (1) to assure 18 the low-income character of the projects involved and (2) 19 to achieve adequate operating services. The Secretary may 20 embody the provisions for such annual contributions in a 21 contract guaranteeing their payment and including such terms and conditions as he determines are necessary to carry

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23 out the purposes of this Act.

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"(b) Subject to the requirements of section 3 (1) of

25 this Act, the rental required to be paid by a family residing

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1 in a low-income housing project owned or leased by a public 2 housing agency receiving annual contributions under this 3 section shall not be less than one-fifth of the family's income 4 but shall in no event exceed a fair market rental charge deter5 mined on the basis of operating the project with payments 6 of principal and interest which the public housing agency is 7 obligated to pay on the capital cost of the project. In the 8 case of low-income housing in private accommodations pro9 vided under section 8 of this Act, the fair market rental 10 charge shall be the rental which the owner receives for the 11 dwelling unit plus the cost of utilities and necessary services 12 not included in such rental.

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“(c) In determining the income of any family for the 14 purposes of this section and section 10 of this Act, there 15 shall be deducted an amount equal to $300 for each minor 16 member of the family residing in the household, and the 17 earnings of any such minor person shall not be included in 18 the income of his family.

19 "(d) From the amounts authorized in section 5 (c) of 20 this Act, the Secretary is authorized to enter into contracts 21 for annual contributions under this section aggregating not

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more than $200,000,000 per annum.

"HOMEOWNERSHIP FOR LOW-INCOME FAMILIES

"SEC. 10. (a) For the purpose of assisting families of

25 low income in acquiring homeownership or in acquiring

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1 membership in a cooperative or other association operating a 2 housing project, a public housing agency is authorized to de3 velop, acquire, or lease low-income housing for subsequent 4 resale to low-income housing tenants and families eligible for 5 low-income housing under the terms and conditions contained 6 in this section. The provisions of this section also apply to 7 the sale of rental housing owned by the public housing

8 agency.

9 "(b) To purchase low-income housing under this sec10 tion, a mortgage or other obligations shall—

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"(1) be given to the public housing agency by a family of low income eligible for low-income housing, a tenant family in low-income housing, or a qualified

14 entity approved by the Secretary;

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"(2) be secured by the property which is to be purchased;

"(3) be in a principal amount of not more than the sale price plus closing costs and prepaid expenses; "(4) bear interest at the maximum rate then ap20 plicable to mortgages insured under section 402 of the

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Revised National Housing Act, or the rate on the pub

lic housing agency's principal debt on the project, which

ever is greater;

"(5) provide for a maturity satisfactory to the

Secretary, but not to exceed forty years;

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"(6) provide that the purchaser's income contri

bution to monthly homeownership expense shall be an

amount equal to one-fifth of the purchaser's income, but in no case shall the purchaser's income contribution be less than the amount of 'monthly homeownership expense' excluding payment for principal and interest; "(7) provide that the income contribution to monthly homeownership expense for a purchaser which is a qualified entity shall be determined by using an aggregate amount based on the contribution that would be required under paragraph (6) of each family who

occupies a dwelling unit in the purchased property;

"(8) provide that the purchaser shall make monthly payments for any services furnished by the public housing agency to the purchaser; and

(9) include other terms and conditions which the Secretary determines are required to carry out the purposes of this section.

"(c) As used in this section, the term 'monthly homeownership expense' shall include monthly amounts for prin

cipal and interest under the amortization provisions of the

mortgage or other obligation, amounts for insurance and

taxes, and an amount attributable to the cost of utilities as 24 determined by the Secretary on the basis of estimated costs

66-13871 pt. 1 - 21