OPERATING RESERVE AND EQUITY CONTRIBUTION REQUIREMENTS.

SEC. 263. SECTION 515 OPERATING RESERVE AND EQUITY CONTRIBUTION REQUIREMENTS. Section 515 of the Housing Act of 1949 (as amended by section 242) is further amended by adding at the end the following new subsection: “(r) The Secretary— “(1) may require that the initial operating reserve under this section may be in the form of an irrevocable letter of credit; and “(2) may not require more than a 3 percent contribution to equity.”.