INCOME ELIGIBILITY FOR ASSISTED HOUSING.

SEC. 103. INCOME ELIGIBILITY FOR ASSISTED HOUSING. (a) Implementation of Percentage Limitations.— Section 16 of the United States Housing Act of 1937 is amended by adding at the end the following: “(c) In developing admission procedures implementing subsection (b), the Secretary may not totally prohibit admission of lower income families other than very low-income families, and shall establish, as appropriate, differing percentage limitations on admission of lower income families in separate assisted housing programs that, when aggregated, will achieve the overall percentage limitation contained in subsection (b). The Secretary shall issue regulations to carry out this subsection not later than 60 days after the date of the enactment of the Housing and Community Development Act of 1987.”. (b) Exemptions from Percentage Limitations.— Section 16 of the United States Housing Act of 1937 (as amended by subsection (a) of this section) is further amended by adding at the end the following new subsection: “(d) (1) The limitations established in subsection (b) shall not apply to dwelling units made available under section 8 housing assistance contracts for the purpose of preventing displacement, or ameliorating the effects of displacement, including displacement caused by rents exceeding 30 percent of monthly adjusted family income, of lower income families from projects being rehabilitated with assistance from rehabilitation grants under section 17 and the Secretary 101 STAT. 1823shall not otherwise unduly restrict the use of payments under section 8 housing assistance contracts for this purpose. “(2) The limitations established in subsections (a) and (b) shall not apply to dwelling units assisted by Indian public housing agencies.”.