RENTAL REHABILITATION PROGRAM.

SEC. 1007. RENTAL REHABILITATION PROGRAM. (a) Administrative Expenses.— Section 17(h) of the United States Housing Act of 1937 (42 U.S.C. 1437o(h)) is amended to read as follows: “(h) Administrative Expenses.— (1) Except as provided in paragraph (2), grantees receiving assistance under this section may not deduct therefrom any amounts to cover administrative expenses in carrying out their responsibilities under this section. “(2) A grantee may use not more than 10 percent of its initial rental rehabilitation grant under subsection (c) for each year to cover administrative expenses in carrying out its responsibilities under this section. Any State shall share the amount provided pursuant to the preceding sentence with units of general local government administering the program with the State.”. (b) Correction of Cross-Reference.— Section 17(i)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437o(i)(2)) is amended by striking “section 104(f)” and inserting “section 104(g)”.