112 STAT. 2648 PUBLIC LAW 105-276—OCT. 21, 1998 Regulations. (2) in subsection (b)— (A) in the matter that precedes paragraph (1), by striking "Except as" and all that follows through "on—*' and inserting the following: "The Secretary shall approve applications under subsection (b) that are not subject to a preference under subsection (b)(2)(A) on the basis of thresholds or criteria such as—"; and (B) in paragraph (1), by striking "crime problem in" and inserting "or violent crime problem in and around"; (3) in subsection (c)— (A) in the matter preceding paragraph (1), by striking "subsection (b)" and inserting "subsection (c)"; and (B) in paragraph (2), by inserting "or violent" after "drug-related" each place it appears; (4) in subsection (d), by striking "subsection (b)" and inserting "subsection (c)"; (5) by redesignating subsections (b) through (d) as subsections (c) through (e), respectively; and (6) by inserting after subsection (a) the following new subsection: "(b) One-Year Renewable Grants.— "(1) IN GENERAL.— An eligible applicant that is a public housing agency may apply for a 1-year grant under this chapter that, subject to the availability of appropriated amounts, shall be renewed annually for a period of not more than 4 additional years, except that such renewal shall be contingent upon the Secretary finding, upon an annual or more frequent review, that the grantee agency is performing under the terms of the grant and applicable laws in a satisfactory manner and meets such other requirements as the Secretary may prescribe. The Secretary may adjust the amount of any grant received or renewed under this paragraph to take into account increases or decreases in amounts appropriated for these purposes or such other factors as the Secretary determines to be appropriate. " (2) ELIGIBILITY AND PREFERENCE. — The Secretary may not provide assistance under this chapter to an applicant that is a public housing agency unless— "(A) the agency will use the grants to continue or expand activities eligible for assistance under this chapter, as in effect immediately before the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998, in which case the Secretary shall provide preference to such applicant; except that preference under this subparagraph shall not preclude selection by the Secretary of other meritorious applications that address urgent or serious crime problems nor be construed to require continuation of activities determined by the Secretary to be unworthy of continuation; or "(B) the agency is in the class established under paragraph (3). " (3) PHA'S HAVING URGENT OR SERIOUS CRIME PROBLEMS.— The Secretary shall, by regulations issued after notice and opportunity for public comment, set forth criteria for establishing a class of public housing agencies that have urgent or serious crime problems. The Secretary may reserve a portion of the amount appropriated to carry out this chapter in each
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