PROGRAM REQUIREMENTS.

SEC. 203. PROGRAM REQUIREMENTS. (a) Rents.— (1) Establishment.—Subject to paragraph (2), each recipient shall develop written policies governing rents and homebuyer payments charged for dwelling units assisted under this Act, including the methods by which such rents and home-buyer payments are determined. (2) Maximum rent.—In the case of any low-income family residing in a dwelling unit assisted with grant amounts under this Act, the monthly rent or homebuyer payment (as 110 STAT. 4033applicable) for such dwelling unit may not exceed 30 percent of the monthly adjusted income of such family. (b) Maintenance and Efficient Operation.—Each recipient who owns or operates (or is responsible for funding any entity that owns or operates) housing developed or operated pursuant to a contract between the Secretary and an Indian housing authority pursuant to the United States Housing Act of 1937 shall, using amounts of any grants received under this Act, reserve and use for operating assistance under section 202(1) such amounts as may be necessary to provide for the continued maintenance and efficient operation of such housing. This subsection may not be construed to prevent any recipient (or entity funded by a recipient) from demolishing or disposing of Indian housing referred to in this subsection, pursuant to regulations established by the Secretary. (c) Insurance Coverage.—Each recipient shall maintain adequate insurance coverage for housing units that are owned or operated or assisted with grant amounts provided under this Act. (d) Eligibility for Admission.—Each recipient shall develop written policies governing the eligibility, admission, and occupancy of families for housing assisted with grant amounts provided under this Act. (e) Management and Maintenance.—Each recipient shall develop policies governing the management and maintenance of housing assisted with grant amounts under this Act.