106 STAT. 3930 PUBLIC LAW 102-550—OCT. 28, 1992

the plan haa been made publicly available for a period of
not less than 30 days. A governing board may resubmit for
approval any plan returned by any such chief executive officer
to the governing board, and such chief executive officer may,
upon returning the plan indicate any modifications necessary
for approval. A new town plan may not be approved unless
such chief executive officers determine that the membership
of the governing board submitting the plan is constituted in
accordance with section 1107 and the governing board is
capable of carrying out the plan.

(3) AMENDMENT.—An approved new town plan for the dem-
onstration program developed by the governing board may be
amended by the board by obtaining approval of the amendment
in the manner provided under this subsection for approval
of plans. If the chief executive officer of the unit of general
local government does not approve or return the amended plan
within 30 days of submission, the amended plan shall be consid-
ered to be approved for purposes of this subsection.

SEC. 1108. NEW TOWN DEVELOPMENT DEMONSTRATION PROGRAM
REQUIREMENTS.

(a) IN GENERAL.—Each of the 2 new town development dem-
onstration programs selected for assistance under this title under
section 1102 shall be carried out, by the governing board submitting
the new town plan for the demonstration program, in accordance
with such plan (and any approved amendments of such plans)
and shall be subject to the requirements under this section.

(b) LOCAL PARTICIPATION.—With respect to any activities car-
ried out under the demonstration program, the program shall give
preference in awarding contracts, purchasing materials, acquiring
services, and obtaining assistance or training, to contractors,
businesses, developers, professionals, and other establishments
located or having offices within the new town demonstration area.

(c) HOUSING.—

(1) NUMBER OF UNITS.—The demonstration program shall
construct or renovate not less than 1,500 dwelling units in
the new town demonstration area, of which not less than 60
percent shall be units available for purchase by the occupant.

(2) AFFORDABILTTY.—Units of varying sizes and costs shall
be designed and developed under the demonstration program
so that the program provides housing affordable to families
of varying incomes not exceeding 115 percent of the median
income for the area in which the new town demonstration
area is located, including very low- and low-income families
(as such terms are defined in section 3(b) of the United States
Housing Act of 1937).

(3) HOMEOWNERSHIP UNITS.—Dwelling units developed
under the demonstration program for purchase by the occupant
shall initially be sold at prices affordable to families eligible
to purchase such units. Such units shall be available for pur-
chase only by families having incomes not exceeding the amount
specified in paragraph (2). The demonstration shall develop
2-, 3-, and 4-bedroom units for purchase.

(4) RENTAL UNITS.—Dwelling units developed under the
demonstration program that are to be available for rental shall
include family-type units and single bedroom and efficiency
units designed for elderly occupants. Such units shall be avail-