Section 11-11-159 - Rent reductions on accumulation of excess earnings--Increase in reservespermitted.
11-11-159. Rent reductions on accumulation of excess earnings--Increase in reserves permitted. The authority may provide by rules and regulations, or in the agreement required by § 11-11-156, that whenever any housing sponsor accumulates earned surplus, in addition to such reserves as the authority may require, for the maintenance, operation, and replacement, in excess of such percentage as the authority shall prescribe of the initial annual rent roll for the housing development, rents in the housing development shall be reduced to the extent necessary to lower the earned surplus accumulation to such prescribed percent figure in the following fiscal year. The housing sponsor may seek the approval of the authority for increases in said reserves at such times as the authority may provide. To the extent warranted, the authority may grant such approval if in its judgment there have been increased price levels or unusual maintenance and repayment requirements. This section does not apply to housing developments whose rents are established and subsidized or whose loan is insured by the federal government.
Source: SL 1973, ch 180, § 19 (10); SDCL Supp, § 28-19-137; SL 1984, ch 106, § 3; SL 1995, ch 80, § 27.