[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3963 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3963

To amend section 8 of the United States Housing Act of 1937 to prohibit 
   the owner of a rental dwelling unit from receiving Federal rental 
  subsidy amounts for rental of the dwelling unit to a member of the 
                            owner's family.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 2, 1996

 Mr. English of Pennsylvania introduced the following bill; which was 
      referred to the Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend section 8 of the United States Housing Act of 1937 to prohibit 
   the owner of a rental dwelling unit from receiving Federal rental 
  subsidy amounts for rental of the dwelling unit to a member of the 
                            owner's family.

    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 ``Housing Fraud Prevention Act''.

SEC. 2. PROHIBITION OF RENTAL SUBSIDIES FOR UNIT RENTED TO MEMBER OF 
              OWNER'S FAMILY.

    Section 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f) is amended by inserting after subsection (k) the following new 
subsection:
    ``(l)(1) In the case of tenant-based assistance provided under this 
section on behalf of an eligible family, the eligible family may not 
use such assistance for the rental of any dwelling unit for which the 
owner is a family member of the eligible family.
    ``(2) For purposes of this subsection, the following definitions 
shall apply:
            ``(A) The term `family member' means, with respect to an 
        eligible family, a child, parent, or grandparent of the head of 
        household of the eligible family or the head of household's 
        spouse. In determining whether any of the relationships 
        referred to in this subparagraph exist, a legally adopted son 
        or daughter of an individual (and a child who is a member of an 
        individual's household, if placed with such individual by an 
        authorized placement agency for legal adoption by such 
        individual), and a foster child of an individual, shall be 
        treated as a child of such individual by blood.
            ``(B) The term `child' means, with respect to any 
        individual, a son, stepson, daughter, or stepdaughter of such 
        individual.''.

SEC. 3. APPLICABILITY.

    The amendment under by section 2 is made on the date of the 
enactment of this Act and shall apply to the rental of any dwelling 
unit pursuant to a lease entered into after the date of the enactment 
of this Act.
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