12 U.S.C. § 4104: Annual authorized return and preservation rents

Pursuant to an appraisal under section 4103 of this title , the Secretary shall determine the annual authorized return on the appraised housing, which shall be equal to 8 percent of the preservation equity (as such term is defined in section 4119(8) of this title ). The annual authorized return determined under subsection (a). Debt service on any rehabilitation loan for the housing. Debt service on the federally-assisted mortgage for the housing. Project operating expenses. Adequate reserves. Debt service on the loan for acquisition of the housing. Debt service on any rehabilitation loan for the housing. Debt service on the federally-assisted mortgage for the housing. Project operating expenses. Adequate reserves. the owner shall provide for adequate rehabilitation pursuant to a capital needs assessment to ensure long-term sustainability of the property satisfactory to the lender or bond issuance agency; any resulting budget-based rent increase shall include debt service on the new financing, commercially reasonable debt service coverage, and replacement reserves as required by the lender; and 30 percent of the tenant’s income; or the amount paid by the tenant for rent and utilities immediately before such refinancing; and this paragraph shall not apply to any tenant who does not provide the owner with proof of income.