PUBLIC LAW 104-99-^AN. 26, 1996 110 STAT. 41 (A) IN GENERAL. —The Secretary shall, by regulation, after notice and an opportunity for public comment, establish such requirements as may be necessary to carry out section 3(a)(2)(A) of the United States Housing Act of 1937, as amended by paragraph (1). (B) TRANSITION RULE.— Prior to the issuance of final regulations under paragraph (1), a public housing agency may implement ceiling rents, which shall be not less than the monthly costs to operate the housing of the agency and— (i) determined in accordance with section 3(a)(2)(A) of the United States Housing Act of 1937, as that section existed on the day before enactment of this Act; (ii) equal to the 96th percentile of the rent paid for a unit of comparable size by tenants in the same public housing project or a group of comparable projects totaling 50 units or more; or (iii) equal to the fair market rent for the area in which the unit is located. (c) DEFINITION OF ADJUSTED INCOME. — Section 3(b)(5) of the United States Housing Act of 1937 is amended— 42 USC 1437a. (1) at the end of subparagraph (F), by striking "and"; (2) at the end of subparagraph (G), by striking the period and inserting "; and"; and (3) by inserting after subparagraph (G) the following: "(H) for public housing, any other adjustments to earned income established by the public housing agency. If a public housing agency adopts other adjustments to income pursuant to subparagraph (H), the Secretary shall not take into account any reduction of or increase in the public housing agency^s per unit dwelling rental income resulting from those adjustments when calculating the contributions under section 9 for the public housing agency for the operation of the public housing.". (d) REPEAL OF FEDERAL PREFERENCES. — (1) PUBLIC HOUSING. —Section 6(c)(4)(A) of the United States Housing Act of 1937 (42 U.S.C. 1437d(c)(4)(A)) is amended to read as follows: "(A) the establishment, after public notice and an opportunity for public comment, of a written system of preferences for admission to public housing, if any, that is not inconsistent with the comprehensive housing affbrdability strategy under title I of the Cranston-Gonzalez National Affordable Housing Act;". (2) SECTION 8 EXISTING AND MODERATE REHABILITATION. — Section 8(d)(1)(A) of the United States Housing Act of 1937 (42 U.S.C. 1437frd)(l)(A)) is amended to read as follows: "(A) the selection of tenants shall be the function of the owner, subject to the provisions of the annual contributions contract between the Secretary and the agency, except that for the certificate and moderate rehabilitation programs only, for the purpose of selecting families to be assisted, the public housing agency may establish, after public notice and an opportunity for public comment, a written system of preferences tor selection that is not inconsistent with the comprehensive housing affordability 29-194O-96 -3;QL3Part1
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