PUBLIC LAW 105-276—OCT. 21, 1998 112 STAT. 2575 "(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 capabiHty to effectively discharge such responsibilities. " (2) USE OF ASSISTANCE.— Any assistance from the Operating and Capital Funds provided to a resident management corporation pursuant to this subsection shall be used for purposes of operating the public housing developments of the agency and performing such other eligible activities with respect to public housing as may be provided under the contract. " (3) RESPONSIBILITY OF PUBLIC HOUSING AGENCY.— I f the Secretary provides direct funding to a resident management corporation under this subsection, the public housing agency shall not be responsible for the actions of the resident management corporation. " (4) CALCULATION OF OPERATING FUND ALLOCATION.— Notwithstanding any provision of section 9 or any regulation under such section, and subject to the exception provided in paragraph (3), the portion of the amount received by a public housing agency under section 9 that is due to an allocation from the Operating Fund and that is allocated to a public housing project managed by a resident management corporation shall not be less than the public housing agency per unit monthly amount provided in the previous year as determined on an individual project basis. " (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 the date of the enactment of the Housing and Community Development Act of 1987 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 9) 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."; and (C) in paragraph (6)(A) (as so redesignated by subparagraph (A) of this paragraph), by striking "the operating subsidies provided to" and inserting "the allocations from the Operating Fund for"; and (5) by striking subsections (f) and (g). (b) PURCHASE BY RESIDENT MANAGEMENT CORPORATIONS.— Section 21 of the United States Housing Act of 1937 (42 U.S.C. 1437s) is amended— (1) in subsection (a)—
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