GRANTS FOR PUBLIC HOUSING DEVELOPMENT.

SEC. 112. GRANTS FOR PUBLIC HOUSING DEVELOPMENT. (a) Authority To Provide Grants.— Section 5(a) of the United States Housing Act of 1937 is amended to read as follows: “(a) (1) The Secretary may make annual contributions to public housing agencies to assist in achieving and maintaining the lower income character of their projects. The Secretary shall embody the provisions for such annual contributions in a contract guaranteeing their payment. The contribution payable annually under this section shall in no case exceed a sum equal to the annual amount of principal and interest payable on obligations issued by the public housing agency to finance the development or acquisition cost of the lower income project involved. Annual contributions payable under this section shall be pledged, if the Secretary so requires, as security for obligations issued by a public housing agency to assist the development or acquisition of the project to which annual contributions relate and shall be paid over a period not to exceed 40 years. “(2) The Secretary may make contributions (in the form of grants) to public housing agencies to cover the development cost of public housing projects. The contract under which such contributions shall be made shall specify the amount of capital contributions required for each project to which the contract pertains, and that the terms and conditions of such contract shall remain in effect for a 40-year period. “(3) The amount of contributions that would be established for a newly constructed project by a public housing agency designed to accommodate a number of families of a given size and kind may be established under this section for a project by such public housing agency that would provide housing for the comparable number, sizes, and kinds of families through the acquisition and rehabilitation, or use under lease, of structures that are suitable for lower income housing use and obtained in the local market.”. (b) Conforming Amendments.— (1) Section 5 of the United States Housing Act of 1937 is amended— (A) by striking “annual” in the section heading; and (B) by striking “annual” in subsection (e)(2). 101 STAT. 1824 (2) Section 6 of the United States Housing Act of 1937 is amended by striking “annual” the first place it appears in the first sentence of subsection (g), and each place it appears in subsection (d) and the first sentence of each of subsections (a) and (c). (3) Section 7 of the United States Housing Act of 1937 is amended by striking “annual” in the proviso in the first sentence. (4) Section 9(a)(2) of the United States Housing Act of 1937 is amended— (A) by striking “being assisted by an annual contributions contract authorized by section 5(c)” and inserting the following: “one developed pursuant to a contributions contract authorized by section 5”, and (B) by striking “any such annual” and inserting “any such”. (5) Section 12 of the United States Housing Act of 1937 is amended by striking “annual”. (6) Section 14 of the United States Housing Act of 1937 is amended— (A) by striking “receive assistance under section 5(c)” in subsection (c)(2) and inserting “assisted under section 5”; and (B) by striking “annual” in each of paragraphs (2) and (4)(C) of subsection (d). (7) Section 15 of the United States Housing Act of 1937 is amended by striking “with loans or debt service annual contributions” in clause (2). (8) Section 16(b) of the United States Housing Act of 1937 is amended by striking “annual”. (9) Section 18(c) of the United States Housing Act of 1937 is amended by striking “annual contributions authorized under section 5(c)” and inserting “contributions authorized under section 5”.