operating subsidies

section 236 operating subsidies Sec. 206. (a) Section 236(f)(3) of the National Housing Act is amended by striking out the second and third sentences and inserting in lieu thereof the following: “The Secretary is authorized to make, and shall contract to make to the extent of the moneys in the reserve fund established under subsection (g) and to the further extent of funds authorized in appropriation Acts, an additional monthly assistance payment to the project owner up to the amount by which the sum of the cost of utilities and local property taxes exceeds the initial operating expense level. Such payment shall be used by the project owner solely to effect, and there shall be, a reduction in the basic rental charges established for the project. Any contract to make additional monthly assistance payments shall be for a one-year period and shall be adjusted periodically to provide, to the extent approved in appropriation Acts, for continuation of the payments and for an appropriate adjustment in the amount of the assistance payments,”. (b) Section 236(f)(3) of such Act is further amended by striking out “only if the Secretary finds that the increase in the cost of utilities or local property taxes is reasonable and is” in the last sentence and inserting in lieu thereof “unless the Secretary finds that the increase in the cost of utilities or local property taxes is not reasonable or not”. (c) Section 236(g) of such Act is amended by striking out “1974” in the fourth sentence and inserting in lieu thereof “1977”. (d) The amendments made by this section shall become effective on October 1, 1977, and shall apply to assistance payments pursuant to section 236(f)(3) of the National Housing Act with respect only to periods commencing on or after such date.