PUBLIC LAWS-CH. 832-AUG. 10, 1948 in, and necessary for, carrying out all works and undertakings for the development of a project and shall include the premium charge for the first operating year and the cost of all necessary surveys, plans and specifications, architectural, engineering, or other special services, land acquisition, site preparation, construction, and equipment; a reasonable return on the funds of the investor paid out in the course of the development of the project, up to and including the initial occupancy date; necessary expenses in connection with the initial occupancy of the project; and the cost of such other items as the Administrator shall determine to be necessary for the development of the project, (1) less the amount by which the rents and revenues derived from the project up to and including the initial occupancy date exceeded the reasonable and proper expenses, as approved by the Administrator, incurred by the investor in, and necessary for, operat- ing and maintaining said project up to and including the initial occu- pancy date, or (2) plus the amount by which such expenses exceeded such rents and revenues, as the case may be. tPhysical comple- "(e) 'Physical completion date' shall mean the last day of the cal- endar month in which the Administrator determines that the con- struction of the project is substantially completed and substantially all of the dwellings therein are available for occupancy. Initial occupancy " (f) 'Initial occupancy date' shall mean the last day of the calendar month in which 90 per centum in number of the dwellings in the project on the physical completion date shall have been occupied, but shall in no event be later than the last day of the sixth calendar month next following the physical completion date. "Operating year." "(g) 'Operating year' shall mean the period of twelve consecutive calendar months next following the initial occupancy date and each succeeding period of twelve consecutive calendar months, and the period of the first twelve consecutive calendar months next following the initial occupancy date shall be the first operating year. ross income." "(h) 'Gross income' for any operating year shall mean the total rents and revenues and other income derived from, or in connection with. the project during such operating year. seseratig expen- " () 'Opering exng expenses' for any operating year shall mean the amounts, as approved by the Administrator, necessary to meet the reasonable and proper costs of, and to provide for, operating and maintaining the project, and to establish and maintain reasonable and proper reserves for repairs, maintenance, and replacements, and other necessary reserves during such operating year, and shall include necessary expenses for real estate taxes, special assessments, premium charges made pursuant to this title, administrative expenses, the annual rental under any lease pursuant to which the real property comprising the site of the project is held by the investor, and insur- ance charges, together with such other expenses as the Administrator shall determine to be necessary for the proper operation and mainte- nance of the project, but shall not include income taxes. S\et income." "(j) 'Net income' for any operating year shall mean gross income remaining after the payment of the operating expenses. amortiionm charge "(k) 'Minimum annual amortization charge' shall mean an amount equal to 2 per centum of the established investment, except that, in the case of a project where the real property comprising the site thereof is held by the investor under a lease, if (notwithstanding the proviso of U, p. 127. section 703 (a) hereof) the gross income for any operating year shall be less than the amount required to pay the operating expenses (includ- ing the annual rental under such lease), the minimum annual amortiza- tion charge for such operating year shall mean an amount equal to 2 per centum of the established investment plus the amount of the annual rental under such lease to the extent that the same is not paid from the gross income. 1282 [62 STAT.
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