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(1) Use of residents in providing services
Each housing project that receives assistance under this section shall, to the maximum extent practicable, utilize the elderly and persons with disabilities who are residents of the housing project, but who are not eligible project residents, to participate in providing the services provided under congregate services programs under this section. Such individuals shall be paid wages that shall not be lower than the higher of—
(A) the minimum wage that would be applicable to the employee under the Fair Labor Standards Act of 1938 [ 29 U.S.C. 201 et seq.], if section 6(a)(1) of such Act [ 29 U.S.C. 206(a)(1) ] applied to the resident and if the resident were not exempt under section 13 of such Act [ 29 U.S.C. 213 ];
(B) the State of 7 7 So in original. Probably should be “or”. local minimum wage for the most nearly comparable covered employment; or
(C) the prevailing rates of pay for persons employed in similar public occupations by the same employer.
Except for wages paid under paragraph (1) of this subsection, services provided to a resident of an eligible housing project under a congregate services program under this section may not be considered as income for the purpose of determining eligibility for or the amount of assistance or aid furnished under any Federal, federally assisted, or State program based on need.
Notwithstanding any other provision of this section, any public housing agency, housing assisted under section 1701q of title 12 , or nonprofit corporation that was receiving assistance under a contract under the Congregate Housing Services Act of 1978 [ 42 U.S.C. 8001 et seq.] on November 5, 1990 , 6 shall (subject to approval and allocation of sufficient amounts under the Congregate Housing Services Act of 1978 and appropriations Acts under such Act) receive assistance under the Congregate Housing Services Act of 1978 for the remainder of the term of the contract for assistance for such agency or corporation under such Act, and shall receive priority for assistance under this section after the expiration of such period.
A recipient of assistance under this section may not use more than 10 percent of the sum of such assistance and the contribution amounts required under subsection (i)(1)(A)(i) for administrative costs and shall ensure that any entity to which the recipient distributes amounts from such sum may not expend more than a reasonable amount from such distributed amounts for administrative costs. Administrative costs may not include any capital expenses.