PUBLIC LAW 102-550—OCT. 28, 1992 106 STAT. 3693

(g) RESERVATION OF ANNUAL CONTRIBUTIONS FOR ACTIVITIES
UNDER PLAN.—Section 14(p) of the United States Housing Act
of 1937 (42 U.S.C. 14371(p)) is amended—

(1) by redesignating paragraphs (3), (4), and (5) (as
amended by the preceding provisions of this section) as para-
graphs (4), (5), and (6), respectively; and

(2) by inserting after paragraph (2) the following new para-
graph:

(3XA) Upon the expiration of the 24-month period beginning
upon the receipt of assistance under paragraph (5) by a public
housing agency, the Secretary shall, after reviewing the progress
made in complying with the plan, reserve from the annual contribu-
tion attributable to each unit vacant for the 24-month period an
amount determined by the Secretary but not exceeding 80 percent
of such contribution. The Secretary may not reserve any amounts
under this subparagraph for any vacant dwelling unit that is vacant
because of modernization, reconstruction, or lead-based paint reduc-
tion activities.

"(B) The Secretary shall deposit any amounts reserved under
subparagraph (A) in a separate account established on behalf of
the public housing agency, and such amounts shall be available
to the agency only for the purpose of carrying out activities in
compliance with the vacancy reduction plan of the agency.

"(C) If, after the expiration of the 24-month period beginning
upon the reservation under subparagraph (A) of amounts for a
public housing agency, the Secretary determines that the agency
has not made significant progress to comply with the provisions
of the vacancy reduction plan of the agency, the amount remaining
in the account for the agency established under subparagraph (B)
shall be recaptured by the Secretary.".

(h) TECHNICAL CORRECTIONS.—Section 14(pX2) of the United
States Housing Act of 1937 (42 U.S.C. 14371(pX2)) is amended—

(1) in clause (D), by striking "modernization, reconstruc-
tion" and inserting "comprehensive modernization, major
reconstruction"; and

(2) in clause (E), by striking "the modernization" and insert-
ing "the comprehensive modernization".

SEC. 116. PUBLIC HOUSING DEMOLITION AND DISPOSITION.

(a) COORDINATION WITH TENANTS.—Section 18(bXl) of the
United States Housing Act of 1937 (42 U.S.C. 1437p(bXl)) is amend-
ed by inserting "of the project or portion of the project covered
by the application" after "tenant cooperative".

(b) REPLACEMENT PLAN.—Section 18(bX3) of the United States
Housing Act of 1937 (42 U.S.C. 1437p(bX3)) is amended—

(1) in subparagraph (A)— ,

(A) in clause (ii), by inserting before the semicolon
at the end the following: "to the extent available; or if
such assistance is not available, in the case of an applica-
tion proposing demolition or disposition of 200 or more
units, the use of available project-based assistance under
section 8 having a term of not less than 5 years";

(B) in clause (iii), by inserting before the semicolon
at the end the following: "to the extent available; or if
such assistance is not available, in the case of an applica-
tion proposing demolition or disposition of 200 or more
units, the use of available project-based assistance under