112 STAT, 2628 PUBLIC LAW 105-276—OCT. 21, 1998 (ii) by striking "review conducted under section 14(p)" and inserting "comparable and recent review"; and (D) in the first sentence of subparagraph (C), by inserting "(if applicable)" after "subparagraph (B)"; (3) in paragraph (5)(F), as so redesignated by the preceding provisions of this Act, by striking "program under section 14" and all that follows and inserting "program for assistance from the Capital Fund under section 9(d) and specifies the amount of assistance the agency received under such program."; and (4) by adding at the end the following new paragraphs: "(6)(A) To the extent that the Secretary determines such action to be necessary in order to ensure the accuracy of any certification made under this section, the Secretary shall require an independent auditor to review documentation or other information maintained by a public housing agency pursuant to this section to substantiate each certification submitted by the agency or corporation relating to the performance of that agency or corporation. "(B) The Secretary may withhold, from assistance otherwise payable to the agency or corporation under section 9, amounts sufficient to pay for the reasonable costs of any review under this paragraph. Applicability. "(7) The Secretary shall apply the provisions of this subsection to resident management corporations in the same manner as applied to public housing agencies.". SEC. 565. EXPANSION OF POWERS FOR DEALING WITH PUBLIC HOUS- ING AGENCIES IN SUBSTANTIAL DEFAULT. (a) IN GENERAL.—Section 6( j)(3) of the United States Housing Act of 1937 (42 U.S.C. 1437d( j)(3)) is amended— (1) in subparagraph (A)— (A) by striking clause (i) and inserting the following new clause: "(i) solicit competitive proposals from other public housing agencies and private housing management agents which (I) in the discretion of the Secretary, may be selected by existing public housing residents through administrative procedures established by the Secretary, and (II) if appropriate, shall provide for such agents to manage all, or part, of the housing administered by the public housing agency or all or part of the other programs of the agency;"; (B) in clause (iii), by striking "under section 14" and inserting "from the Capital Fund under section 9(d)"; and (C) by striking clause (iv) and inserting the following new clauses: "(iv) take possession of all or part of the public housing agency, including all or part of any project or program of the agency, including any project or program under any other provision of this title; and "(v) require the agency to make other arrangements acceptable to the Secretary and in the best interests of the public housing residents and families assisted under section 8 for managing all, or part, of the public housing administered by the agency or of the programs of the agency."; and (2) by striking subparagraphs (B) through (D) and inserting the following new subparagraphs:
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