[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 2392 Introduced in Senate (IS)]

103d CONGRESS
  2d Session
                                S. 2392

 To amend section 18 of the United States Housing Act of 1937, and for 
                            other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

              August 16 (legislative day, August 11), 1994

  Mr. Breaux introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 To amend section 18 of the United States Housing Act of 1937, and for 
                            other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. 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:

``SEC. 18. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.

    ``(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                project, the project or portion of the project is 
                obsolete as to physical condition, location, or other 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 preserve the total amount of 
                        low-income housing stock available in the 
                        community or 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; or
                            ``(III) because 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 for--
                            ``(i) the payment of development costs for 
                        the replacement housing and 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
                            ``(ii) to the extent that any proceeds 
                        remain after the application of proceeds in 
                        accordance with clause (i), 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 of 
                during 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 any other provision of this Act with respect to the demolition or 
disposition of public housing only if the following requirements are 
met:
            ``(1) Tenant consultation and employment.--The application 
        submitted by 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 under section 105 of the 
                Cranston-Gonzalez National Affordable Housing Act.
            ``(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.
            ``(3) Replacement housing.--The public housing agency has 
        developed a plan that provides for additional decent, safe, 
        sanitary, and affordable dwelling units for each public housing 
        dwelling unit to be demolished or disposed of under such 
        application or provides additional dwelling units sufficient to 
        address the needs and demographic characteristics of the number 
        of applicants on the waiting list of the agency equal to the 
        number of units to be demolished or disposed of or the needs of 
        the community, as described in the comprehensive housing 
        affordability strategy under section 105 of the Cranston-
        Gonzalez National Affordable Housing Act, which plan--
                    ``(A) provides for the provision of such additional 
                dwelling units through--
                            ``(i) the acquisition or development of 
                        additional public housing dwelling units, which 
                        may be units in housing owned (or leased for a 
                        period to be determined by the Secretary) by a 
                        partnership of a public housing agency and 
                        other entity in which the agency has a 
                        controlling interest;
                            ``(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) units acquired or otherwise provided 
                        for homeownership (including cooperative and 
                        condominium interests) by public housing 
                        residents 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) affordable housing homeownership 
                        units assisted under title II of the Cranston-
                        Gonzalez National Affordable Housing Act and 
                        sold to public housing residents;
                            ``(vi) rental units that are--
                                    ``(I) assisted under title II of 
                                the Cranston-Gonzalez National 
                                Affordable Housing Act (notwithstanding 
                                section 212(d)(2) of such Act); or
                                    ``(II) assisted under a State or 
                                local rental assistance program that 
                                provides for rental assistance over a 
                                term of not less than 15 years that is 
                                comparable in terms of eligibility and 
                                contribution to rent to assistance 
                                under section 8, except that this 
                                subclause shall only apply in cases 
                                provided under subparagraph (C);
                            ``(vii) housing assisted by a tax credit 
                        under section 42 of the Internal Revenue Code 
                        of 1986;
                            ``(viii) housing acquired from the 
                        Resolution Trust Corporation or the Federal 
                        Deposit Insurance Corporation;
                            ``(ix) housing acquired under section 203 
                        of the Housing and Community Development 
                        Amendments of 1978;
                            ``(x) other methods of providing housing 
                        units approved by the Secretary; or
                            ``(xi) 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 it provides for the use of tenant-based 
                assistance provided under section 8 or otherwise, may 
                be approved--
                            ``(i) only after a finding by the Secretary 
                        that replacement with project-based assistance 
                        is not feasible, and the supply of private 
                        rental housing actually available to those who 
                        would receive such assistance under the plan is 
                        sufficient for the total number of families in 
                        the community assisted with tenant-based 
                        assistance after implementation of the plan and 
                        that such supply is likely to remain available 
                        for the full term of the assistance; and
                            ``(ii) only if such finding is based on 
                        objective information, which shall include 
                        rates of participation by owners in the section 
                        8 program, size, conditions and rent levels of 
                        available rental housing as compared to section 
                        8 standards, the supply of vacant existing 
                        housing meeting the section 8 housing quality 
                        standards with rents at or below the fair 
                        market rental, the number of eligible families 
                        waiting for public housing or housing 
                        assistance under section 8, and the extent of 
                        discrimination against the types of individuals 
                        or families to be served by the assistance;
                    ``(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 (F);
                                    ``(III) meet the requirements of 
                                subparagraph (G) and the maximum rent 
                                provisions of subparagraph (H);
                                    ``(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; and
                                    ``(V) allow that preference for 
                                admission to any such additional units 
                                may be provided to residents of the 
                                severely distressed public housing 
                                dwelling units replaced under this 
                                subparagraph pursuant to section 24;
                    ``(E) includes a schedule for completing the plan 
                during a period consistent with the size of 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 any other 
        provision of this section, during 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 residents.
            ``(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 fewer than the number of units 
        demolished and the balance of replacement units are provided 
        elsewhere in the jurisdiction or pursuant to subsection 
        (b)(3)(D).
    ``(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 annually submit a 
        report to the Congress 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 Before 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 relocation.--A public housing agency may 
        relocate tenants of public housing into other dwelling units 
        before the approval of an application under this section for 
        demolition or disposition, or prior to implementing a plan for 
        modernization under section 14 or 24, if units to be demolished 
        or disposed of are not decent, safe, and sanitary, or if the 
        units to be rehabilitated cannot be maintained cost-effectively 
        in a decent, safe, and sanitary condition.
    ``(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 title III.
    ``(i) Exception to Replacement Rule.--
            ``(1) Requirements for waiver.--The Secretary shall waive 
        the applicability of the provisions of subsection (b)(3) with 
        respect to any 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 
                information provided by the public housing agency in 
                the application and the request under paragraph (2), 
                that--
                            ``(i) the requirements under subsection 
                        (b)(3) are preventing or interfering with the 
                        development or acquisition of new public 
                        housing dwelling units by the agency;
                            ``(ii) the long-term goal of the agency in 
                        requesting the waiver under this subsection is 
                        to increase the number of habitable public 
                        housing dwelling units of the agency;
                            ``(iii) maintaining and operating the 
                        dwelling units to be demolished or disposed of 
                        is not cost-effective; and
                            ``(iv) sufficient financial assistance is 
                        not, and will not be, available to the public 
                        housing agency to rehabilitate or replace all 
                        or some of the units;
                    ``(B) the Secretary determines that replacing the 
                dwelling units to be demolished or disposed of under 
                the application is unnecessary because other affordable 
                housing is available in the area in which the units are 
                located, and in making such determination the Secretary 
                considers the assessment submitted by the public 
                housing agency under paragraph (2)(C); and
                    ``(C) the public housing agency requests a waiver 
                under this subsection in accordance with the 
                requirements of paragraph (2).
            ``(2) Request for waiver.--To be eligible for a waiver 
        under this subsection, 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 of 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.
            ``(3) 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.
            ``(4) Notice of disposition of request.--Except as provided 
        in paragraph (5), 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 (5), the request for a waiver shall be considered to 
        have been approved.
            ``(5) Request for additional information.--If the Secretary 
        determines that more information is needed to make the 
        determinations under paragraph (1) than has been provided by 
        the public housing agency, the Secretary shall notify the 
        agency in writing not later 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.
            ``(6) Statement of reasons for denying or approving 
        request.--The Secretary shall include, in each notice under 
        paragraph (4) or (5) 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.''.
                                 <all>
S 2392 IS----2