; and (2) by inserting after paragraph (21) the following new paragraph: (22) Total development cost The term total development cost means, with respect to a housing project, the sum of all costs for the project, including all undertakings necessary for administration, planning, site acquisition, demolition, construction or equipment and financing (including payment of carrying charges), and for otherwise carrying out the development of the project, excluding off-site water and sewer. The total development cost amounts shall be based on a moderately designed house and determined by averaging the current construction costs as listed in not less than two nationally recognized residential construction cost indices. . II AFFORDABLE HOUSING ACTIVITIES 201. National objectives and eligible families The second paragraph (6) of section 201(b) ( 25 U.S.C. 4131(b)(6) ; relating to exemption) is amended— (1) by striking 1964 and and inserting 1964, ; and (2) by inserting after 1968 the following: , and section 3 of the Housing and Urban Development Act of 1968 . 202. Homeownership or lease-to-own low-income requirement and income targeting Section 205 ( 25 U.S.C. 4135 ) is amended— (1) in subsection (a)(1)— (A) in subparagraph (C), by striking and at the end; and (B) by adding at the end the following new subparagraph: (E) notwithstanding any other provision of this paragraph, in the case of rental housing that is made available to a current rental family for conversion to a homebuyer or a lease-purchase unit, that the current rental family can purchase through a contract of sale, lease-purchase agreement, or any other sales agreement, is made available for purchase only by the current rental family, if the rental family was a low-income family at the time of their initial occupancy of such unit; and