ASSISTANCE FOR SINGLE ROOM OCCUPANCY DWELLINGS.

SEC. 481. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCUPANCY DWELLINGS. (a) Increase in Budget Authority.— Section 441(a) of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11401(a)) is amended to read as follows: “(a) Increase in Budget Authority.— The budget authority available under section 5(c) of the United States Housing Act of 1937 for assistance under section 8(e)(2) of such Act is authorized to be102 STAT. 3238 increased by $50,000,000 on or after October 1, 1988, and by $50,000,000 on or after October 1, 1989.”, (b) Rehabilitation of Efficiency Units.— Section 441(b) of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11401(b)) is amended by inserting before the period at the end the following: “, except that amounts made available under this section may be used in connection with the moderate rehabilitation of efficiency units if the building owner agrees to pay the additional cost of rehabilitating and operating such units.”. (c) Fire and Safety Improvements.— Section 441(d) of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11401(d)) is amended by adding at the end the following new sentence: “For purposes of this subsection, the term ‘major spaces’ means hallways, large common areas, and other areas specified in local fire, building, or safety codes.”. (d) Annual Adjustment of Cost Limitation.— (1) Adjustment required.— Section 441(e) of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11401(e)) is amended by adding at the end the following new paragraph: “(3) The Secretary of Housing and Urban Development shall increase the limitation in paragraph (1) on October 1 of each year by an amount necessary to take into account increases in construction costs during the previous 12-month period.”. (2) Effective date.— The first increase under the amendment made by paragraph (1) shall be effective with respect to assistance provided on or after October 1, 1988.