rental assistance

rental assistance Sec. 514. (a) Section 521(a) of the Housing Act of 1949 is amended by inserting “(1)” after “(a)”, and by adding at the end thereof the following new paragraph: “(2)(A) The Secretary may make and insure loans under this section and sections 514, 515, and 517 to provide rental or cooperative housing and related facilities for persons and families of low income in multifamily housing projects, and may make, and contract to make, assistance payments to the owners of such rental housing in order to make available to low-income occupants of such housing rentals at rates commensurate to income and not exceeding 25 per centum of income. Such assistance payments shall be made on a unit basis and shall not be made for more than 20 per centum of the units in any one project, except that (i) when the project is financed by a loan under section 515 for elderly housing or by a loan under section 514 and a grant under section 516, such assistance may be made for up to 100 per centum of the units, and (ii) when the Secretary determines such action is necessary or feasible, he may make such payments with respect to more than 20 per centum of the units. “(B) The owner of any project assisted under this paragraph shall be required to provide at least annually a budget of operating expenses and record of tenants’ income which shall be used to determine the amount of assistance for each project. “(C) The project owner shall accumulate, safeguard, and periodically pay to the Secretary any rental charges collected in excess of basic rental charges as established by the Secretary in conformity with sub-paragraph (A). These funds may be credited to the appropriation and used by the Secretary for making such assistance payments through the end of the next fiscal year.” (b) Section 521(c) of such Act is amended to read as follows: “(c) There shall be reimbursed to the Rural Housing Insurance Fund by annual appropriations (1) the amounts by which nonprincipal payments made from the fund during each fiscal year to the holders of insured loans described in subsection (a)(1) exceed interest due from the borrowers during each year, and (2) the amount of assistance payments described in subsection (a)(2). The Secretary may from time to time issue notes to the Secretary of the Treasury under section 517(h) to obtain amounts equal to such unreimbursed payments, pending the annual reimbursement by appropriation.” (c) Section 517(j) of such Act is amended— (1) by striking out “and” at the end of paragraph (2); 88 Stat. 697 (2) by striking out the period at the end of paragraph (3) and inserting in lieu thereof “; and”; and (3) by adding at the end thereof the following new paragraph: “(4) to make assistance payments authorized by section 521 (a)(2).”