LIMITATION ON PUBLIC HOUSING DEVELOPMENT AND ASSURANCE OF PUBLIC HOUSING QUALITY STANDARDS.

SEC. 113. LIMITATION ON PUBLIC HOUSING DEVELOPMENT AND ASSURANCE OF PUBLIC HOUSING QUALITY STANDARDS. Section 5 of the United States Housing Act of 1937 is amended by adding at the end the following new subsection: “(j) (1) After September 30, 1987, in providing assistance under this Act to a public housing agency for public housing (other than for Indian families), the Secretary shall reserve funds for the development of public housing only if— “(A) the Secretary determines that additional amounts are required to complete the development of dwelling units for which amounts are obligated on or before such date; “(B) the public housing agency certifies to the Secretary that 85 percent of the public housing dwelling units of the public housing agency— “(i) are maintained in substantial compliance with the housing quality standards established by the Secretary under section 8(o)(6); “(ii) will be so maintained upon completion of modernization for which funding has been awarded; or “(iii) will be so maintained upon completion of modernization for which applications are pending that have been submitted in good faith under section 14 (or a comparable 101 STAT. 1825State or local government program) and that there is a reasonable expectation, as determined by the Secretary in writing, that the applications would be approved; “(C) the public housing agency certifies that such development— “(i) will replace dwelling units that are disposed of or demolished by the public housing agency, including dwelling units disposed of or lost through sale to tenants or through units redesign; or “(ii) is required to comply with court orders or directions of the Secretary; “(D) the public housing agency certifies that it has demands for family housing not satisfied by the rental assistance programs established in subsection (b) or (o) of section 8 for which it plans to construct or acquire projects of not more than 100 units; or “(E) the Secretary makes such reservation under paragraph (2). “(2) Notwithstanding any other provision of law, not more than 20 percent of the funds appropriated for development of public housing also may be committed by the Secretary for the substantial redesign, reconstruction, or redevelopment of existing public housing projects or units, which work shall be carried out pursuant to the rules and regulations applicable to the development of public housing.”.