§ 1437r.
(a)
Purpose
The purpose of this section is to encourage increased resident management of public housing projects, as a means of improving existing living conditions in public housing projects, by providing increased flexibility for public housing projects that are managed by residents by—
(1)
permitting the retention, and use for certain purposes, of any revenues exceeding operating and project costs; and
(2)
providing funding, from amounts otherwise available, for technical assistance to promote formation and development of resident management entities.
For purposes of this section, the term “public housing project” includes one or more contiguous buildings or an area of contiguous row houses the elected resident councils of which approve the establishment of a resident management corporation and otherwise meet the requirements of this section.
(c)
Assistance amounts
A contract under this section for management of a public housing project by a resident management corporation shall provide for—
(1)
the public housing agency to provide a portion of the assistance to agency from the Capital and Operating Funds to the resident management corporation in accordance with subsection (e) for purposes of operating the public housing project covered by the contract and performing such other eligible activities with respect to the project as may be provided under the contract;
(2)
the amount of income expected to be derived from the project itself (from sources such as rents and charges);
(3)
the amount of income to be provided to the project from the other sources of income of the public housing agency (such as interest income, administrative fees, and rents); and
(4)
any income generated by a resident management corporation of a public housing project that exceeds the income estimated under the contract shall be used for eligible activities under subsections (d)(1) and (e)(1) of
section 1437g of this title.
(e)
Direct provision of operating and capital assistance
(1)
In general
The Secretary shall directly provide assistance from the Operating and Capital Funds to a resident management corporation managing a public housing development pursuant to a contract under this section, but only if—
(A)
the resident management corporation petitions the Secretary for the release of the funds;
(B)
the contract provides for the resident management corporation to assume the primary management responsibilities of the public housing agency; and
(C)
the Secretary determines that the corporation has the capability to effectively discharge such responsibilities.
(3)
Responsibility of public housing agency
(4)
Calculation of Operating Fund allocation
(5)
Calculation of total income
(A)
Subject to subparagraph (B), the amount of funds provided by a public housing agency to a public housing project managed by a resident management corporation may not be reduced during the 3-year period beginning on February 5, 1988, or on any later date on which a resident management corporation is first established for the project.
(B)
If the total income of a public housing agency (including any amounts from the Capital or Operating Funds provided to the public housing agency under
section 1437g of this title) is reduced or increased, the income provided by the public housing agency to a public housing project managed by a resident management corporation shall be reduced or increased in proportion to the reduction or increase in the total income of the public housing agency, except that any reduction in amounts from the Operating Fund that occurs as a result of fraud, waste, or mismanagement by the public housing agency shall not affect the funds provided to the resident management corporation.
(6)
Retention of excess revenues
(A)
Any income generated by a resident management corporation of a public housing project that exceeds the income estimated for purposes of this subsection shall be excluded in subsequent years in calculating (i) the allocations from the Operating Fund for the public housing agency under
section 1437g of this title; and (ii) the funds provided by the public housing agency to the resident management corporation.
(B)
Any revenues retained by a resident management corporation under subparagraph (A) shall be used for purposes of improving the maintenance and operation of the public housing project, for establishing business enterprises that employ residents of public housing, or for acquiring additional dwelling units for low-income families.
(f)
, (g) Repealed. [Pub. L. 105–276, title V, § 532(a)(5)], Oct. 21, 1998, [112 Stat. 2575]
([Sept. 1, 1937, ch. 896], title I, § 20, as added [Pub. L. 100–242, title I, § 122], Feb. 5, 1988, [101 Stat. 1839]; renumbered title I, [Pub. L. 100–358, § 5], June 29, 1988, [102 Stat. 681]; amended [Pub. L. 100–628, title X, § 1003], Nov. 7, 1988, [102 Stat. 3263]; [Pub. L. 101–625, title IV, § 415], title V, §§ 514, 572(1), Nov. 28, 1990, [104 Stat. 4160], 4196, 4236; [Pub. L. 102–550, title I, § 117], Oct. 28, 1992, [106 Stat. 3695]; [Pub. L. 105–276, title V, § 532(a)], Oct. 21, 1998, [112 Stat. 2574].)