RENTAL DEVELOPMENT GRANTS.

SEC. 151. RENTAL DEVELOPMENT GRANTS. (a) Authorization of Appropriations.— Section 17(a)(3) of the United States Housing Act of 1937 (as amended by section 150 of this Act) is further amended by adding at the end the following new sentence: “There are authorized to be appropriated for development grants under this section $75,000,000 for fiscal year 1988 and $75,000,000 for fiscal year 1989.”. (b) Area Eligibility.— Section 17(d)(2) of the United States Housing Act of 1937 is amended by adding at the end the following new sentence: “Notwithstanding any other provision of law, the eligibility requirements for development grants under this section shall be the requirements in effect under this subsection on October 17, 1986.”. (c) Grant Amount.— Section 17(d)(4)(B) of the United States Housing Act of 1937 is amended by striking “refinancing costs and”. (d) Program Requirements.— Section 17(d)(4) of the United States Housing Act of 1937 is amended— (1) by inserting before the semicolon at the end of subparagraph (G) the following: “, except that the Secretary may extend such period by not more than 6 months if the commencement of such activities is delayed due to judicial or administrative proceedings”; (2) by striking “and” at the end of subparagraph (G); (3) by striking the period at the end of subparagraph (H) and inserting “; and”; and (4) by adding at the end the following new subparagraph: “(I) the owner of each assisted structure agrees to comply with the provisions of paragraph (8) until the 20-year period specified in paragraph (7) has ended.”. (e) Development Cost.— Section 17(d) of the United States Housing Act of 1937 is amended by adding at the end the following new paragraph: “(10) Development Cost.— “(A) The Secretary shall include in the development cost of a project assisted under this subsection any developer’s fee if such fee— 101 STAT. 1855 “(i) is included in a mortgage secured by the project; and “(ii) the lender is a State housing finance agency or the project is financed by bonds issued by a State housing finance agency or similar local entity. “(B) The amount of any developer’s fee shall not be counted in calculating the maximum grant amount pursuant to paragraph (4)(B). “(C) This paragraph shall only be applicable to projects with respect to which a notice of project selection is received before the date of the enactment of the Housing and Community Development Act of 1987.”.