[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5181 Introduced in House (IH)]
103d CONGRESS
2d Session
H. R. 5181
To amend section 18 of the United States Housing Act of 1937 to improve
the program providing for demolition and disposition of public housing.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 5, 1994
Mr. Baker of Louisiana introduced the following bill; which was
referred to the Committee on Banking, Finance and Urban Affairs
_______________________________________________________________________
A BILL
To amend section 18 of the United States Housing Act of 1937 to improve
the program providing for demolition and disposition of public housing.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Public Housing Disposition Reform
Act''.
SEC. 2. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.
Section 18 of the United States Housing Act of 1937 (42 U.S.C.
1437p) is amended to read as follows:
``demolition and disposition of public housing
``Sec. 18. (a) Condition of Housing.--The Secretary may approve an
application by a public housing agency for permission to demolish or
dispose of a public housing project or a portion of a public housing
project only if the Secretary has determined that--
``(1) in the case of--
``(A) an application proposing demolition of a
public housing project or a portion of a public housing
project, the project or portion of the project is
obsolete as to physical condition, location, or other
factors, and it is more cost effective to replace the
project or portion of the project than to rehabilitate
the project or portion of the project; or
``(B) an application proposing the demolition of
only a portion of a project, the demolition will help
to assure the remaining useful life of the remaining
portion of the project;
``(2) in the case of an application proposing disposition
of real property of a public housing agency by sale or other
transfer--
``(A)(i) the property's retention is not in the
best interests of the tenants or the public housing
agency because--
``(I) developmental changes in the area
surrounding the project adversely affect the
health or safety of the tenants or the feasible
operation of the project by the public housing
agency;
``(II) disposition will allow the
acquisition, development, or rehabilitation of
other properties which will be more efficiently
or effectively operated as low-income housing
and which will (a) preserve the total amount of
low-income housing stock available in the
community, or (b) create housing sufficient to
address the needs of the community as described
in the comprehensive housing affordability
strategy (under section 105 of the Cranston-
Gonzalez National Affordable Housing Act), if
such needs are less than the amount needed to
preserve the amount of low-income housing
stock; or
``(III) of other factors which the
Secretary determines are consistent with the
best interests of the tenants and public
housing agency and which are not inconsistent
with other provisions of this Act; and
``(ii) for property other than dwelling units, the
property is excess to the needs of a project or the
disposition is incidental to, or does not interfere
with, continued operation of a project; and
``(B) the net proceeds of the disposition will be
used--
``(i) for the payment of development costs
for the replacement housing;
``(ii) to the extent that any proceeds
remain after the application of proceeds in
accordance with clause (i), for the retirement
of outstanding obligations issued to finance
original development or modernization of the
project, which, in the case of scattered-site
housing of a public housing agency, shall be in
an amount that bears the same ratio to the
total of such costs and obligations as the
number of units disposed of bears to the total
number of units of the project at the time of
disposition; and
``(iii) to the extent that any proceeds
remain after the application of proceeds in
accordance with clauses (i) and (ii), the
provision of housing assistance for low-income
families through such measures as modernization
of low-income housing, or the acquisition,
development, or rehabilitation of other
properties to operate as low-income housing; or
``(3) in the case of an application proposing demolition or
disposition of any portion of a public housing project,
assisted at any time under section 5(j)(2)--
``(A) such assistance has not been provided for the
portion of the project to be demolished or disposed
within the 10-year period ending upon submission of the
application; or
``(B) the property's retention is not in the best
interest of the tenants or the public housing agency
because of changes in the area surrounding the project
or other circumstances of the project, as determined by
the Secretary.
``(b) Tenant Involvement and Replacement Housing.--The Secretary
may approve an application or furnish assistance under this section or
under this Act only if the following requirements are met:
``(1) Tenant consultation and employment.--The application
from the public housing agency--
``(A) has been developed in consultation with
tenants and tenant councils, if any, who will be
affected by the demolition or disposition;
``(B) includes a plan to employ public housing
tenants in construction or rehabilitation to the extent
practicable, pursuant to section 3 of the Housing and
Urban Development Act of 1968; and
``(C) contains a certification by appropriate local
government officials that the proposed activity is
consistent with the applicable comprehensive housing
affordability strategy.
``(2) Relocation assistance.--All tenants to be relocated
as a result of the demolition or disposition will be provided
assistance by the public housing agency and are relocated to
other decent, safe, sanitary, and affordable housing, which is,
to the maximum extent practicable, housing of their choice,
including housing assisted under section 8 of this Act.
``(3) Replacement housing.--Except as provided under
subsections (c)(1) and (i), the public housing agency has
developed, and the Secretary has approved, a plan that provides
for additional decent, safe, sanitary, and affordable dwelling
units for each public housing dwelling unit to be demolished or
disposed under such application. Such a plan--
``(A) shall provide for the provision of such
additional dwelling units through--
``(i) the acquisition or development of
additional public housing dwelling units;
``(ii) the use of 15-year project-based
assistance under section 8;
``(iii) in the case of an application
proposing demolition or disposition of 200 or
more units, the use of tenant-based assistance
under section 8 having a term of not less than
5 years;
``(iv) for not more than 10 percent of the
replacement units, units acquired or otherwise
provided for homeownership (including
cooperative and condominium interests) by
public housing tenants under section 5(h),
subtitle B or C of title IV of the Cranston-
Gonzalez National Affordable Housing Act, or
other programs for homeownership that have
program requirements substantially equivalent
to the requirements established under section
605 of the Housing and Community Development
Act of 1987;
``(v) for not more than 10 percent of the
replacement units, affordable housing
homeownership units assisted under title II of
the Cranston-Gonzalez National Affordable
Housing Act and sold to public housing tenants;
``(vi) rental units that are assisted
under--
``(I) title II of the Cranston-
Gonzalez National Affordable Housing
Act (notwithstanding section 212(d)(2)
of such Act), or
``(II) a State or local rental
assistance program that provides for
rental assistance that is comparable in
terms of eligibility and contribution
to rent to assistance under section 8;
except that, if such assistance is project-
based, the units shall be provided such
assistance for a term of not less than 15 years
and, if such assistance is tenant-based, the
units shall be provided such assistance for a
term of not less than 5 years;
``(vii) project-based assistance under any
other Federal program, which has a term of not
less than 15 years, including housing assisted
by a tax credit under section 42 of the
Internal Revenue Code;
``(viii) another method approved by the
Secretary; or
``(ix) any combination of such methods;
``(B) in the case of an application proposing
demolition or disposition of 200 or more units, shall
provide that--
``(i) not less than 50 percent of such
additional dwelling units shall be provided
through the acquisition or development of
additional dwelling units or through project-
based assistance; and
``(ii) not more than 50 percent of such
additional dwelling units shall be provided
through tenant-based assistance under section 8
having a term of not less than 5 years;
``(C) if providing for the use of tenant-based
assistance under section 8 or otherwise, may be
approved by the Secretary only if--
``(i) the Secretary finds that--
``(I) the supply of private rental
housing available to families who would
receive such assistance under the plan
is sufficient for the total number of
units that will be available for
tenant-based assistance under section 8
or otherwise in the programs of the
public housing agency after
implementation of the plan; and
``(II) on the basis of experience
with tenant-based assistance program in
the jurisdiction of the public housing
agency, there is a reasonable
expectation that the families who
receive such assistance will be housed
in accordance with program
requirements; and
``(ii) the finding under clause (i) is
based on factors that the Secretary shall
determine, which shall include the rental
vacancy rate in the market area, the
availability of housing of appropriate quality,
size, and price in the market area, the success
rate of families receiving such assistance from
the public housing agency in leasing a unit
under tenant-based assistance programs, and the
overall administrative ability of the agency in
administering such programs;
``(D) may provide that all or part of such
additional dwelling units may be located outside the
jurisdiction of the public housing agency (in this
subparagraph referred to as the `original agency') if--
``(i) the location is in the same housing
market area as the original agency, as
determined by the Secretary; and
``(ii) the plan contains an agreement
between the original agency and the public
housing agency in the alternate location or
other public or private entity that will be
responsible for providing the additional units
in the alternate location that such alternate
agency or entity will, with respect to the
dwelling units involved--
``(I) provide the dwelling units in
accordance with subparagraph (A);
``(II) complete the plan on
schedule in accordance with
subparagraph (E);
``(III) meet the requirements of
subparagraph (F) of this paragraph and
the maximum rent provisions of
subparagraph (G); and
``(IV) not impose a local residency
preference on any resident of the
jurisdiction of the original agency for
purposes of admission to any such
units;
``(E) includes a schedule for completing the plan
within a period consistent with the number of dwelling
units subject to the proposed demolition or disposition
and replacement plan, which--
``(i) shall not exceed 6 years, except that
the Secretary may extend the schedule to not
more than 10 years if the Secretary determines
that good cause exists to extend the
implementation of the replacement plan under
this subsection; and
``(ii) the demolition or disposition under
the plan can occur in phases necessary to
provide for relocation of tenants under
paragraph (2);
``(F) includes a method of ensuring that the same
number of individuals and families will be provided
housing;
``(G) provides for the payment of the relocation
expenses of each tenant to be displaced and ensures
that the rent paid by the tenant following relocation
will not exceed the amount permitted under this Act;
``(H) prevents the taking of any action to demolish
or dispose of any unit until the tenant of the unit is
relocated to decent, safe, sanitary, and affordable
housing; and
``(I) permits the Secretary to intervene and take
any actions necessary to complete the plan if the
public housing agency fails, without good cause, to
carry out its obligations under the plan.
``(c) Limitation on Demolition and Exemption.--
``(1) Maximum percentage.--Notwithstanding subsection
(b)(3), in any 5-year period a public housing agency may
demolish not more than the lesser of 5 dwelling units or 5
percent of the total dwelling units owned and operated by the
public housing agency, without providing an additional dwelling
unit for each such public housing dwelling unit to be
demolished, but only if the space occupied by the demolished
unit is used for meeting the service or other needs of public
housing tenants or the demolished unit was beyond repair.
``(2) Site and neighborhood standards exemption.--
Notwithstanding any other provision of law, a replacement plan
under subsection (b)(3) may provide for demolition of public
housing units and replacement of such units on site or in the
same neighborhood if the number of replacement units provided
in the same neighborhood is significantly fewer than the number
of units demolished.
``(d) Treatment of Replacement Units.--With respect to any dwelling
units developed, acquired, or leased by a public housing agency
pursuant to a replacement plan under subsection (b)(3)--
``(1) assistance may be provided under section 9 for such
units; and
``(2) such units shall be available for occupancy, operated
and managed in the manner required for public housing, and
shall be subject to the other requirements applicable to public
housing dwelling units.
``(e) Approval of Applications.--
``(1) In general.--The Secretary shall notify a public
housing agency submitting an application under this section for
demolition or disposition and replacement of a public housing
project or portion of a project of the approval or disapproval
of the application not later than 60 days after receiving the
application. If the Secretary does not notify the public
housing agency as required under this paragraph or paragraph
(2), the application shall be considered to have been approved.
``(2) Disapproval and resubmission.--If the Secretary
disapproves an application, the Secretary shall specify in the
notice of disapproval the reasons for the disapproval and the
agency may resubmit the application as amended or modified.
``(3) Annual report.--The Secretary shall submit a report
to the Congress annually describing for the year the
applications under this section approved and disapproved, the
number, general condition, and location of units demolished or
disposed of, and the number, general condition, location and
method of provision of units of replacement housing provided
pursuant to this section.
``(f) Action Without Approval of Application.--
``(1) Prohibited action.--A public housing agency shall not
take any action to demolish or dispose of a public housing
project or a portion of a public housing project without
obtaining the approval of the Secretary and satisfying the
conditions specified in subsections (a) and (b).
``(2) Allowable actions.--If public housing dwelling units
to be demolished or disposed of under this section are not
decent, safe, and sanitary or public housing dwelling units to
be rehabilitated under section 14 or 24 or the HOPE VI urban
revitalization demonstration program (pursuant to Public Law
102-389 (106 Stat. 1579)) cannot be maintained cost-effectively
in a decent, safe, and sanitary condition, the public housing
agency may relocate tenants of such dwelling units into other
dwelling units or cease leasing such units before the approval
of an application under this section for demolition or
disposition of such units or before implementing the plan for
modernization of such units.
``(g) Assistance for Replacement Housing.--The Secretary may
provide assistance under this subsection for--
``(1) providing replacement public housing units pursuant
to subsection (b)(3)(A) for units demolished or disposed of
pursuant to this section; and
``(2) providing assistance under section 8 for replacement
housing pursuant to subsection (b)(3)(A) for units demolished
or disposed of pursuant to this section.
``(h) Inapplicability to Public Housing Homeownership Program.--The
provisions of this section shall not apply to the disposition of a
public housing project in accordance with an approved homeownership
program under this Act.
``(i) Exceptions to Replacement Housing Requirement.--
``(1) Waiver.--The Secretary shall waive the applicability
of the provisions of subsection (b)(3) and (c)(1) with respect
to an application under this section by a public housing agency
for the demolition or disposition of public housing dwelling
units if--
``(A) the Secretary determines, based on the number
of families on the waiting list for public housing
dwelling units of the public housing agency, vacancy
rates, the comprehensive housing affordability strategy
(if applicable), and other available information
relating to low-income housing needs within the
jurisdiction of the agency, that no need exists for
additional low-income housing in the jurisdiction of
the agency; or
``(B)(i) the Secretary determines, based on such
factors as the vacancy rate for public housing dwelling
units of the agency, the number of families on the
waiting list for public housing dwelling units of the
agency, the availability of funding under section 14,
and the assessment of the management performance of the
agency under section 6(j), that the need for additional
low-income housing in the community can be met by the
agency through the rehabilitation of vacant public
housing dwelling units in accordance with section 14;
and
``(ii) the application under subsection (a)
includes a commitment by the public housing agency to
rehabilitate the requisite units within a period
consistent with the extent of the proposed demolition
or disposition, which period shall not exceed 6 years,
except that the Secretary may, upon a determination of
good cause, approve a commitment for rehabilitation
during a period not exceeding 10 years.
``(2) Waiver and alternative replacement housing.--
Notwithstanding any other provision of this section, the
Secretary shall waive the applicability of the provisions of
subsection (b)(3) with respect to an application under this
section by a public housing agency for the demolition or
disposition of public housing dwelling units if--
``(A) the Secretary determines that the agency
cannot meet some or all of the requirements under
subsection (b)(3) to provide replacement housing with
project-based assistance because of--
``(i) the high cost of acquiring real
estate for development or rehabilitation for
low-income housing in areas that are not
racially or economically impacted or are not
impacted by adverse environmental conditions;
or
``(ii) other factors determined by the
Secretary; and
``(B) the agency applies for and the Secretary
approves the use of tenant-based assistance under
section 8 having a term of not less than 5 years for
any portion of the replacement housing required under
subsection (b)(3) that the Secretary determines under
subparagraph (A) cannot be provided through project-
based assistance.
``(3) Request for waiver.--To be eligible for a waiver
under paragraph (1) or (2), a public housing agency shall
submit to the Secretary a request for a waiver under this
subsection that includes--
``(A) a comprehensive plan for demolition,
disposition, and replacement that describes additional
dwelling units to be made available by the public
housing agency;
``(B) an identification of the dwelling units for
which the waiver is requested; and
``(C) an assessment of the need for replacing such
dwelling units including the unit size, age, general
condition, and length of time such units have been
vacant, the condition of the neighborhood in which the
dwelling units are located, and the availability of
dwelling units affordable to low-income families within
the jurisdiction in which the dwelling units are
located, during the implementation of the replacement
plan.
``(4) Submission to secretary.--A request for a waiver
under this subsection may be submitted at any time. The request
shall be submitted to the Secretary by certified mail or any
other equivalent means that provides notification to the public
housing agency making the request of the date of receipt by the
Secretary.
``(5) Notice of disposition of request.--Except as provided
in paragraph (6), the Secretary shall notify a public housing
agency requesting a waiver under this section of the approval
or disapproval of the request not later than 45 days after
receiving the request. If the Secretary does not notify the
public housing agency as required under this paragraph or
paragraph (6), the request for a waiver shall be considered to
have been approved.
``(6) Request for additional information.--If the Secretary
determines that more information is needed to make the
determinations required under paragraph (1) or (2) than has
been provided by the public housing agency, the Secretary shall
notify the agency in writing not later than 30 days after
receiving the request for the waiver that additional
information is necessary. Such notice shall describe
specifically the additional information required for the
determinations and establish a deadline for the submission of
the information by the agency, which shall be determined based
on the difficulty of obtaining the information requested. If
the agency submits such additional information requested before
the deadline established in the notice under this paragraph,
the Secretary shall notify the agency requesting the waiver
that the request is approved or disapproved not later than 30
days after the submission of such additional information.
``(7) Statement of reasons for denying or approving
request.--The Secretary shall include, in each notice under
paragraph (5) or (6) of the denial or approval of a request for
a waiver under this subsection, the specific reasons for
denying or approving the request. The denial of any request for
a waiver for public housing dwelling units shall not prejudice
the consideration of any other subsequent request for such a
waiver for any of such dwelling units.''.
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