PUBLIC LAW 101-235—DEC. 15, 1989 103 STAT. 1989 Contracts. Indians. based on the relative needs of different States, areas, and commu- nities, as reflected in data as to population, poverty, housing over- crowding, housing vacancies, amount of substandard housing, and other objectively measurable conditions specified in the regulation. In allocating assistance under this paragraph for each program of housing assistance under subsection (a)(l), the Secretary shall apply the formula, to the extent practicable, in a manner so that the assistance under the program is allocated according to the particu- Isu- relative needs under the preceding sentence that are characteris- tic of and related to the particular type of assistance provided under the program. Assistance under section 202 of the Housing Act of Aged persons. 1959 shall be allocated in a manner that ensures that awards of the assistance under such section are made for projects of sufficient size to accommodate facilities for supportive services appropriate to the needs of frail elderly residents. "(B) The formula allocation requirements of subparagraph (A) shall not apply to— "(i) assistance that is approved in appropriation Acts for use under sections 9 or 14, or the rental reh^ilitation grant pro- gram under section 17, of the United States Housing Act of 1937, except that the Secretary shall comply with section 102 of the Department of Housing and Urban Development Reform Act of 1989 with respect to such assistance; or "(ii) other assistance referred to in subsection (a) that is approved in appropriation Acts for uses that the Secretary determines are incapable of ge(^aphic allocation, including amendments of existing contracts, renewal of assistance con- tracts, assistance to families that would otherwise lose assist- ance due to the decision of the project owner to prepay the project mortgage or not to renew the assistance contract, assist- ance to prevent displacement or to provide replacement housing in connection witib the demolition or disposition of public and Indian housing, and assistance in support of the property dis- position and loan management functions of the Secretary. "(C) Any allocation of assistance under subparagraph (A) shall, as determined by the Secretary, be made to the sinallest practicable area, consistent with the delivery of assistance through a meaning- ful competitive process designed to serve areas with greater needs. "(D) Any amounts allocated to a State or areas or communities within a State that are not likely to be used within a fiscal year shall not be reallocated for use in another State, unless the Sec- retary determines that other areas or communities (that are eligible for assistance under the program) within the same State cannot use the amounts within that same fiscal year.". (b) ALLOCATION TO NoNMETROPOLrrAN AREAS. —The second sen- tence of section 213(d)(2) of the Housing and Community Develop- ment Act of 1974 is amended by striMng "such assistance" and inserting "the assistance that is subject to allocation under para- graph (I)(A)". (c) COMPETITION FOR ASSISTANCE. —Section 213(d) of the Housing and Community Development Act of 1974 is amended by adding at the end the following new paragraph: "(5)(A) The Secretary shall not reserve or obligate assistance subject to allocation under paragraph (I)(A) to specific recipients, unless the assistance is first allocated on the basis of the formula contained in that paragraph and then is reserved and obligated pursuant to a comiwtition. 42 USC 1439.
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