PUBLIC LAW 104-330—OCT. 26, 1996 110 STAT. 4033 applicable) for such dwelling unit may not exceed 30 percent of the monthly adjusted income of such family. (b) MAINTENANCE AND EFFICIENT OPERATION.— Each recipient who owns or operates (or is responsible for funding any entity that owns or operates) housing developed or operated pursuant to a contract between the Secretary and an Indian housing authority pursuant to the United States Housing Act of 1937 shall, using amounts of any grants received under this Act, reserve and use for operating assistance under section 202(1) such amounts as may be necessary to provide for the continued maintenance and efficient operation of such housing. This subsection may not be construed to prevent any recipient (or entity funded by a recipient) from demolishing or disposing of Indisin housing referred to in this subsection, pursuant to regulations established by the Secretary. (c) INSURANCE COVERAGE.—Each recipient shall maintain adequate insurance coverage for housing units that are owned or operated or assisted with grant amoiuits provided under this Act. (d) ELIGIBILITY FOR ADMISSION. — Each recipient shall develop written policies governing the eligibility, admission, and occupancy of families for housing assisted with grant amounts provided under this Act. (e) MANAGEMENT AND MAINTENANCE.— Each recipient shall develop policies governing the management and maintenance of housing assisted with grant amounts under this Act. SEC. 204. TYPES OF INVESTMENTS. 25 USC 4134. (a) IN GENERAL. —Subject to section 203 and the Indian housing plan for an Indian tribe, the recipient for that tribe shall have— (1) the discretion to use grant amounts for affordable housing activities through equity investments, interest-bearing loans or advances, noninterest-bearing loans or advances, interest subsidies, leveraging of private investments, or any other form of assistance that the Secretary has determined to be consistent with the piuposes of this Act; and (2) the right to establish the terms of assistance. (b) INVESTMENTS.— ^A recipient may invest grant amounts for the purposes of carrying out affordable housing activities in investment securities and other obligations as approved by the Secretary. SEC. 205. LOW-INCOME REQUIREMENT AND INCOME TARGETING. 25 USC 4135. (a) IN GENERAL. —Housing shall qualify as affordable housing for purposes of this Act only if— (1) each dwelling unit in the housing— (A) in the case of rental housing, is made available for occupancy only by a family that is a low-income family at the time of their initial occupancy of such unit; and (B) in the case of housing for homeownership, is made available for purchase only by a family that is a lowincome family at the time of purchase; and (2) except for housing assisted under section 202 of the United States Housing Act of 1937 (as in effect before" the date of the effectiveness of this Act), each dwelling unit in the housing will remain affordable, according to binding commitments satisfactory to the Secretary, for the remaining useful life of the property (as determined by the Secretary) without regard to the term of the mortgage or to transfer of ownership, or for such other period that the Secretary
�
