RENTAL REHABILITATION GRANTS.

SEC. 150. RENTAL REHABILITATION GRANTS. (a) Authorization of Appropriations.— Section 17(a)(3) of the United States Housing Act of 1937 is amended to read as follows: “(3) Authorization.— There are authorized to be appropriated for rental rehabilitation under this section $125,000,000 for each of the fiscal years 1988 and 1989, of which $1,500,000 shall be available each fiscal year for technical assistance, including the collection, processing, and dissemination of program information useful for local and national program management.”. (b) Eligible Property.— Section 17(a)(1)(A) of the United States Housing Act of 1937 is amended by inserting after “property” the following: “, or of real property that will be privately owned upon the completion of rehabilitation,”. (c) Maximum Grant Amount.— Section 17(c)(2)(E) of the United States Housing Act of 1937 is amended by striking “$5,000 per unit” and inserting the following: “$5,000 per unit for a unit with no bedrooms, $6,500 per unit for a unit with 1 bedroom, $7,500 per unit for a unit with 2 bedrooms, and $8,500 per unit for a unit with 3 or more bedrooms,”. (d) Use of Funds.— Section 17(c) of the United States Housing Act of 1937 is amended by adding at the end the following new paragraph: “(4) Use of Funds To Comply With Seismic Standards.— If a unit of general local government has a local ordinance that requires rehabilitation to meet seismic standards, the unit of local government may use all rehabilitation assistance received under this 101 STAT. 1854section to rehabilitate units with no bedroom or 1 bedroom, if the occupants of the units will have incomes that do not exceed 50 percent of the median income of the area.”. (e) Administrative Expenses.— Section 17(h) of the United States Housing Act of 1937 is amended by inserting before the period at the end the following: “, except that not more than 10 percent of any rehabilitation grant received under subsection (c) may be retained to cover administrative expenses incurred by any State administering resources made available under subsection (b) (which State shall share such amount with units of general local government administering the program with the State) and by any city or urban county receiving resources under subsection (b)”. (f) Eligibility.— Section 17(k)(4) of the United States Housing Act of 1937 is amended— (1) by inserting “privately owned” before “real property”; (2) by inserting “(A)” after “includes”; and (3) by inserting before the semicolon at the end the following: “, and (B) housing that is owned by a State or locally chartered, neighborhood based, nonprofit organization the primary purpose of which is the provision and improvement of housing”.