PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.

SEC. 519. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS. * * * * * * * (d) [42 U.S.C. 1437a note] Transitional Ceiling Rents.—Notwithstanding section 3(a)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437a(1)), during the period ending upon the later of the implementation of the formulas established pursuant to subsections (d)(2) and (e)(2) of such Act (as amended by this section) and October 1, 1999, a public housing agency may take any of the following actions with respect to public housing: (1) New provisions.—An agency may— (A) adopt and apply ceiling rents that reflect the reasonable market value of the housing, but that are not less than— (i) for housing other than housing predominantly for elderly or disabled families (or both), 75 percent of the monthly cost to operate the housing of the agency; (ii) for housing predominantly for elderly or disabled families (or both), 100 percent of the monthly cost to operate the housing of the agency; and (iii) the monthly cost to make a deposit to a replacement reserve (in the sole discretion of the public housing agency); and (B) allow families to pay ceiling rents referred to in subparagraph (A), unless, with respect to any family, the ceiling rent established under this paragraph would exceed the amount payable as rent by that family under paragraph (1). (2) Ceiling rents from balanced budget act, I.—An agency may utilize the authority under section 3(a)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437a(a)(2)), as in effect immediately before the enactment of this Act, notwithstanding any amendment to such section made by this Act. (3) Transitional ceiling rents for balanced budget act, I.—An agency may utilize the authority with respect to ceiling rents under section 402(b)(2) of The Balanced Budget Downpayment Act, I (42 U.S.C. 1437a note), notwithstanding any other provision of law (including the expiration of the applicability of such section or the repeal of such section). * * * * * * * (g) Effective Date.—Subsections (d), (e), and (f) shall take effect upon the date of the enactment of this Act.