[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1260 Engrossed Amendment House (EAH)]


  2d Session

                                S. 1260

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                               AMENDMENTS
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  

                In the House of Representatives, U. S.,

                                                           May 9, 1996.

    Resolved, That the bill from the Senate (S. 1260) entitled ``An Act to 
reform and consolidate the public and assisted housing programs of the United 
States, and to redirect primary responsibility for these programs from the 
Federal Government to States and localities, and for other purposes'', do pass 
with the following

                              AMENDMENTS:

    Strike out all after the enacting clause, and insert:

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``United States 
Housing Act of 1996''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Declaration of policy to renew American neighborhoods.

                      TITLE I--GENERAL PROVISIONS

Sec. 101. Statement of purpose.
Sec. 102. Definitions.
Sec. 103. Organization of local housing and management authorities.
Sec. 104. Determination of adjusted income and median income.
Sec. 105. Occupancy limitations based on illegal drug activity and 
                            alcohol abuse.
Sec. 106. Community work and family self-sufficiency requirement.
Sec. 107. Local housing management plans.
Sec. 108. Review of plans.
Sec. 109. Reporting requirements.
Sec. 110. Pet ownership.
Sec. 111. Administrative grievance procedure.
Sec. 112. Headquarters reserve fund.
Sec. 113. Labor standards.
Sec. 114. Nondiscrimination.
Sec. 115. Prohibition on use of funds.
Sec. 116. Inapplicability to Indian housing.
Sec. 117. Effective date and regulations.

                        TITLE II--PUBLIC HOUSING

                        Subtitle A--Block Grants

Sec. 201. Block grant contracts.
Sec. 202. Block grant authority, amount, and eligibility.
Sec. 203. Eligible and required activities.
Sec. 204. Determination of grant allocation.
Sec. 205. Sanctions for improper use of amounts.

           Subtitle B--Admissions and Occupancy Requirements

Sec. 221. Low-income housing requirement.
Sec. 222. Family eligibility.
Sec. 223. Preferences for occupancy.
Sec. 224. Admission procedures.
Sec. 225. Family rental payment.
Sec. 226. Lease requirements.
Sec. 227. Designated housing for elderly and disabled families.

                         Subtitle C--Management

Sec. 231. Management procedures.
Sec. 232. Housing quality requirements.
Sec. 233. Employment of residents.
Sec. 234. Resident councils and resident management corporations.
Sec. 235. Management by resident management corporation.
Sec. 236. Transfer of management of certain housing to independent 
                            manager at request of residents.
Sec. 237. Resident opportunity program.

                       Subtitle D--Homeownership

Sec. 251. Resident homeownership programs.

Subtitle E--Disposition, Demolition, and Revitalization of Developments

Sec. 261. Requirements for demolition and disposition of developments.
Sec. 262. Demolition, site revitalization, replacement housing, and 
                            choice-based assistance grants for 
                            developments.
Sec. 263. Voluntary voucher system for public housing.

                     Subtitle F--General Provisions

Sec. 271. Conversion to block grant assistance.
Sec. 272. Payment of non-Federal share.
Sec. 273. Definitions.
Sec. 274. Authorization of appropriations for block grants.
Sec. 275. Authorization of appropriations for operation safe home.

TITLE III--CHOICE-BASED RENTAL HOUSING AND HOMEOWNERSHIP ASSISTANCE FOR 
                          LOW-INCOME FAMILIES

                         Subtitle A--Allocation

Sec. 301. Authority to provide housing assistance amounts.
Sec. 302. Contracts with LHMA's.
Sec. 303. Eligibility of LHMA's for assistance amounts.
Sec. 304. Allocation of amounts.
Sec. 305. Administrative fees.
Sec. 306. Authorizations of appropriations.
Sec. 307. Conversion of section 8 assistance.

   Subtitle B--Choice-Based Housing Assistance for Eligible Families

Sec. 321. Eligible families and preferences for assistance.
Sec. 322. Resident contribution.
Sec. 323. Rental indicators.
Sec. 324. Lease terms.
Sec. 325. Termination of tenancy.
Sec. 326. Eligible owners.
Sec. 327. Selection of dwelling units.
Sec. 328. Eligible dwelling units.
Sec. 329. Homeownership option.
Sec. 330. Assistance for rental of manufactured homes.

    Subtitle C--Payment of Housing Assistance on Behalf of Assisted 
                                Families

Sec. 351. Housing assistance payments contracts.
Sec. 352. Amount of monthly assistance payment.
Sec. 353. Payment standards.
Sec. 354. Reasonable rents.
Sec. 355. Prohibition of assistance for vacant rental units.

            Subtitle D--General and Miscellaneous Provisions

Sec. 371. Definitions.
Sec. 372. Rental assistance fraud recoveries.
Sec. 373. Study regarding geographic concentration of assisted 
                            families.

 TITLE IV--ACCREDITATION AND OVERSIGHT OF LOCAL HOUSING AND MANAGEMENT 
                              AUTHORITIES

         Subtitle A--Housing Foundation and Accreditation Board

Sec. 401. Establishment.
Sec. 402. Membership.
Sec. 403. Functions.
Sec. 404. Initial establishment of standards and procedures for LHMA 
                            compliance.
Sec. 405. Powers.
Sec. 406. Fees.
Sec. 407. Reports.
Sec. 408. GAO Audit.

    Subtitle B--Accreditation and Oversight Standards and Procedures

Sec. 431. Establishment of performance benchmarks and accreditation 
                            procedures.
Sec. 432. Financial and performance audit.
Sec. 433. Accreditation.
Sec. 434. Classification by performance category.
Sec. 435. Performance agreements for authorities at risk of becoming 
                            troubled.
Sec. 436. Performance agreements and CDBG sanctions for troubled 
                            LHMA's.
Sec. 437. Option to demand conveyance of title to or possession of 
                            public housing.
Sec. 438. Removal of ineffective LHMA's.
Sec. 439. Mandatory takeover of chronically troubled PHA's.
Sec. 440. Treatment of troubled PHA's.
Sec. 441. Maintenance of and access to records.
Sec. 442. Annual reports regarding troubled LHMA's.
Sec. 443. Applicability to resident management corporations.

               TITLE V--REPEALS AND CONFORMING AMENDMENTS

Sec. 501. Repeals.
Sec. 502. Conforming and technical provisions.
Sec. 503. Amendments to Public and Assisted Housing Drug Elimination 
                            Act of 1990.
Sec. 504. Treatment of certain projects.
Sec. 505. Amendments relating to community development assistance.
Sec. 506. Authority to transfer surplus real property for housing use.
Sec. 507. Rural housing assistance.
Sec. 508. Treatment of occupancy standards.
Sec. 509. Implementation of plan.
Sec. 510. Income eligibility for HOME and CDBG programs.
Sec. 511. Amendments relating to section 236 program.
Sec. 512. Prospective application of gold clauses.
Sec. 513. Moving to work demonstration for the 21st century.
Sec. 514. Occupancy screening and evictions from federally assisted 
                            housing.
Sec. 515. Use of American products.
Sec. 516. Limitation on extent of use of loan guarantees for housing 
                            purposes.
Sec. 517. Consultation with affected areas in settlement of litigation.

   TITLE VI--NATIONAL COMMISSION ON HOUSING ASSISTANCE PROGRAMS COST

Sec. 601. Establishment.
Sec. 602. Membership.
Sec. 603. Organization.
Sec. 604. Functions.
Sec. 605. Powers.
Sec. 606. Funding.
Sec. 607. Sunset.

             TITLE VII--NATIVE AMERICAN HOUSING ASSISTANCE

Sec. 701. Short title.
Sec. 702. Congressional findings.
Sec. 703. Administration through Office of Native American Programs.
Sec. 704. Definitions.

            Subtitle A--Block Grants and Grant Requirements

Sec. 711. Block grants.
Sec. 712. Local housing plans.
Sec. 713. Review of plans.
Sec. 714. Treatment of program income and labor standards.
Sec. 715. Environmental review.
Sec. 716. Regulations.
Sec. 717. Effective date.
Sec. 718. Authorization of appropriations.

               Subtitle B--Affordable Housing Activities

Sec. 721. National objectives and eligible families.
Sec. 722. Eligible affordable housing activities.
Sec. 723. Required affordable housing activities.
Sec. 724. Types of investments.
Sec. 725. Low-income requirement and income targeting.
Sec. 726. Certification of compliance with subsidy layering 
                            requirements.
Sec. 727. Lease requirements and tenant selection.
Sec. 728. Repayment.
Sec. 729. Continued use of amounts for affordable housing.

                Subtitle C--Allocation of Grant Amounts

Sec. 741. Annual allocation.
Sec. 742. Allocation formula.

              Subtitle D--Compliance, Audits, and Reports

Sec. 751. Remedies for noncompliance.
Sec. 752. Replacement of recipient.
Sec. 753. Monitoring of compliance.
Sec. 754. Performance reports.
Sec. 755. Review and audit by Secretary.
Sec. 756. GAO audits.
Sec. 757. Reports to Congress.

     Subtitle E--Termination of Assistance for Indian Tribes under 
                         Incorporated Programs

Sec. 761. Termination of Indian public housing assistance under United 
                            States Housing Act of 1937.
Sec. 762. Termination of new commitments for rental assistance.
Sec. 763. Termination of youthbuild program assistance.
Sec. 764. Termination of HOME program assistance.
Sec. 765. Termination of housing assistance for the homeless.
Sec. 766. Savings provision.
Sec. 767. Effective date.

     Subtitle F--Loan Guarantees for Affordable Housing Activities

Sec. 771. Authority and requirements.
Sec. 772. Security and repayment.
Sec. 773. Payment of interest.
Sec. 774. Treasury borrowing.
Sec. 775. Training and information.
Sec. 776. Limitations on amount of guarantees.
Sec. 777. Effective date.

       Subtitle G--Other Housing Assistance for Native Americans

Sec. 781. Loan guarantees for Indian housing.
Sec. 782. 50-year leasehold interest in trust or restricted lands for 
                            housing purposes.
Sec. 783. Training and technical assistance.
Sec. 784. Effective date.

   TITLE VIII--NATIONAL MANUFACTURED HOUSING CONSTRUCTION AND SAFETY 
                     STANDARDS CONSENSUS COMMITTEE

Sec. 801. Short title; reference.
Sec. 802. Statement of purpose.
Sec. 803. Definitions.
Sec. 804. Federal manufactured home construction and safety standards.
Sec. 805. Abolishment of National Manufactured Home Advisory Council.
Sec. 806. Public information.
Sec. 807. Inspection fees.
Sec. 808. Elimination of annual report requirement.
Sec. 809. Effective date.

SEC. 2. DECLARATION OF POLICY TO RENEW AMERICAN NEIGHBORHOODS.

    The Congress hereby declares that--
            (1) the Federal Government has a responsibility to promote 
        the general welfare of the Nation--
                    (A) by using Federal resources to aid families and 
                individuals seeking affordable homes that are safe, 
                clean, and healthy and, in particular, assisting 
                responsible, deserving citizens who cannot provide 
                fully for themselves because of temporary circumstances 
                or factors beyond their control;
                    (B) by working to ensure a thriving national 
                economy and a strong private housing market; and
                    (C) by developing effective partnerships among the 
                Federal Government, State and local governments, and 
                private entities that allow government to accept 
                responsibility for fostering the development of a 
                healthy marketplace and allow families to prosper 
                without government involvement in their day-to-day 
                activities;
            (2) the Federal Government cannot through its direct action 
        alone provide for the housing of every American citizen, or 
        even a majority of its citizens, but it is the responsibility 
        of the Government to promote and protect the independent and 
        collective actions of private citizens to develop housing and 
        strengthen their own neighborhoods;
            (3) the Federal Government should act where there is a 
        serious need that private citizens or groups cannot or are not 
        addressing responsibly;
            (4) housing is a fundamental and necessary component of 
        bringing true opportunity to people and communities in need, 
        but providing physical structures to house low-income families 
        will not by itself pull generations up from poverty;
            (5) it is a goal of our Nation that all citizens have 
        decent and affordable housing; and
            (6) our Nation should promote the goal of providing decent 
        and affordable housing for all citizens through the efforts and 
        encouragement of Federal, State, and local governments, and by 
        promoting and protecting the independent and collective actions 
        of private citizens, organizations, and the private sector to 
        develop housing and strengthen their own neighborhoods.

                      TITLE I--GENERAL PROVISIONS

SEC. 101. STATEMENT OF PURPOSE.

    The purpose of this Act is to promote safe, clean, and healthy 
housing that is affordable to low-income families, and thereby 
contribute to the supply of affordable housing, by--
            (1) deregulating and decontrolling public housing agencies, 
        which in this Act are referred to as ``local housing and 
        management authorities'', and thereby enable them to perform as 
        property and asset managers;
            (2) providing for more flexible use of Federal assistance 
        to local housing and management authorities, allowing the 
        authorities to leverage and combine assistance amounts with 
        amounts obtained from other sources;
            (3) facilitating mixed income communities;
            (4) increasing accountability and rewarding effective 
        management of local housing and management authorities;
            (5) creating incentives and economic opportunities for 
        residents of dwelling units assisted by local housing and 
        management authorities to work, become self-sufficient, and 
        transition out of public housing and federally assisted 
        dwelling units;
            (6) recreating the existing rental assistance voucher 
        program so that the use of vouchers and relationships between 
        landlords and tenants under the program operate in a manner 
        that more closely resembles the private housing market; and
            (7) remedying troubled local housing and management 
        authorities and replacing or revitalizing severely distressed 
        public housing developments.

SEC. 102. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Disabled family.--The term ``disabled family'' means a 
        family whose head (or his or her spouse), or whose sole member, 
        is a person with disabilities. Such term includes 2 or more 
        persons with disabilities living together, and 1 or more such 
        persons living with 1 or more persons determined under the 
        regulations of the Secretary to be essential to their care or 
        well-being.
            (2) Drug-related criminal activity.--The term ``drug-
        related criminal activity'' means the illegal manufacture, 
        sale, distribution, use, or possession with intent to 
        manufacture, sell, distribute, or use, of a controlled 
        substance (as such term is defined in section 102 of the 
        Controlled Substances Act).
            (3) Elderly families and near elderly families.--The terms 
        ``elderly family'' and ``near-elderly family'' mean a family 
        whose head (or his or her spouse), or whose sole member, is an 
        elderly person or a near-elderly person, respectively. Such 
        terms include 2 or more elderly persons or near-elderly persons 
        living together, and 1 or more such persons living with 1 or 
        more persons determined under the regulations of the Secretary 
        to be essential to their care or well-being.
            (4) Elderly person.--The term ``elderly person'' means a 
        person who is at least 62 years of age.
            (5) Family.--The term ``family'' includes a family with or 
        without children, an elderly family, a near-elderly family, a 
        disabled family, and a single person.
            (6) Income.--The term ``income'' means, with respect to a 
        family, income from all sources of each member of the 
        household, as determined in accordance with criteria prescribed 
        by the applicable local housing and management authority and 
        the Secretary, except that the following amounts shall be 
        excluded:
                    (A) Any amounts not actually received by the 
                family.
                    (B) Any amounts that would be eligible for 
                exclusion under section 1613(a)(7) of the Social 
                Security Act.
            (7) Local housing and management authority.--The term 
        ``local housing and management authority'' is defined in 
        section 103.
            (8) Local housing management plan.--The term ``local 
        housing management plan'' means, with respect to any fiscal 
        year, the plan under section 107 of a local housing and 
        management authority for such fiscal year.
            (9) Low-income family.--The term ``low-income family'' 
        means a family whose income does not exceed 80 percent of the 
        median income for the area, as determined by the Secretary with 
        adjustments for smaller and larger families, except that the 
        Secretary may, for purposes of this paragraph, establish income 
        ceilings higher or lower than 80 percent of the median for the 
        area on the basis of the authority's findings that such 
        variations are necessary because of unusually high or low 
        family incomes.
            (10) Low-income housing.--The term ``low-income housing'' 
        means dwellings that comply with the requirements--
                    (A) under subtitle B of title II for assistance 
                under such title for the dwellings; or
                    (B) under title III for rental assistance payments 
                under such title for the dwellings.
            (11) Near-elderly person.--The term ``near-elderly person'' 
        means a person who is at least 55 years of age.
            (12) Person with disabilities.--The term ``person with 
        disabilities'' means a person who--
                    (A) has a disability as defined in section 223 of 
                the Social Security Act; or
                    (B) has a developmental disability as defined in 
                section 102 of the Developmental Disabilities 
                Assistance and Bill of Rights Act.
        Such term shall not exclude persons who have the disease of 
        acquired immunodeficiency syndrome or any conditions arising 
        from the etiologic agent for acquired immunodeficiency 
        syndrome. Notwithstanding any other provision of law, no 
        individual shall be considered a person with disabilities, for 
        purposes of eligibility for public housing under title II of 
        this Act, solely on the basis of any drug or alcohol 
        dependence. The Secretary shall consult with other appropriate 
        Federal agencies to implement the preceding sentence.
            (13) Public housing.--The term ``public housing'' means 
        housing, and all necessary appurtenances thereto, that--
                    (A) is low-income housing or low-income dwelling 
                units in mixed income housing (as provided in section 
                221(c)(2)); and
                    (B)(i) is subject to an annual block grant contract 
                under title II; or
                    (ii) was subject to an annual block grant contract 
                under title II (or an annual contributions contract 
                under the United States Housing Act of 1937) which is 
                not in effect, but for which occupancy is limited in 
                accordance with the requirements under section 222(a).
            (14) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (15) State.--The term ``State'' means the States of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Commonwealth of the Northern Mariana Islands, 
        Guam, the Virgin Islands, American Samoa, and any other 
        territory or possession of the United States and Indian tribes.
            (16) Very low-income family.--The term ``very low-income 
        family'' means a low-income family whose income does not exceed 
        50 percent of the median family income for the area, as 
        determined by the Secretary with adjustments for smaller and 
        larger families, except that the Secretary may, for purposes of 
        this paragraph, establish income ceilings higher or lower than 
        50 percent of the median for the area on the basis of the 
        authority's findings that such variations are necessary because 
        of unusually high or low family incomes.

SEC. 103. ORGANIZATION OF LOCAL HOUSING AND MANAGEMENT AUTHORITIES.

    (a) Requirements.--For purposes of this Act, the terms ``local 
housing and management authority'' and ``authority'' mean any entity 
that--
            (1) is--
                    (A) a public housing agency that was authorized 
                under the United States Housing Act of 1937 to engage 
                in or assist in the development or operation of low-
                income housing;
                    (B) authorized under this Act to engage in or 
                assist in the development or operation of low-income 
                housing by any State, county, municipality, or other 
                governmental body or public entity;
                    (C) an entity authorized by State law to administer 
                choice-based housing assistance under title III; or
                    (D) an entity selected by the Secretary, pursuant 
                to subtitle B of title IV, to manage housing; and
            (2) complies with the requirements under subsection (b).
The term does not include any entity that is Indian housing authority 
for purposes of the United States Housing Act of 1937 (as in effect 
before the enactment of this Act) or a tribally designated housing 
entity, as such term is defined in section 704.
    (b) Governance.--
            (1) Board of directors.--Each local housing and management 
        authority shall have a board of directors or other form of 
        governance as prescribed in State or local law. No person may 
        be barred from serving on such board or body because of such 
        person's residency in a public housing development or status as 
        an assisted family under title III.
            (2) Resident membership.--
                    (A) In general.--Except as provided in subparagraph 
                (B), in localities in which a local housing and 
                management authority is governed by a board of 
                directors or other similar body, the board or body 
                shall include not less than 1 member who is an elected 
                public housing resident member (as such term is defined 
                in paragraph (5)). If the board includes 2 or more 
                resident members, at least 1 such member shall be a 
                member of an assisted family under title III.
                    (B) Exceptions.--The requirement in subparagraph 
                (A) with respect to elected public housing resident 
                members and resident members shall not apply to--
                            (i) any State or local governing body that 
                        serves as a local housing and management 
                        authority for purposes of this Act and whose 
                        responsibilities include substantial activities 
                        other than acting as the local housing and 
                        management authority, except that such 
                        requirement shall apply to any advisory 
                        committee or organization that is established 
                        by such governing body and whose 
                        responsibilities relate only to the governing 
                        body's functions as a local housing and 
                        management authority for purposes of this Act;
                            (ii) any local housing and management 
                        authority that owns or operates less than 250 
                        public housing dwelling units (including any 
                        authority that does not own or operate public 
                        housing);
                            (iii) any local housing and management 
                        authority in a State in which State law 
                        specifically precludes public housing residents 
                        or assisted families from serving on the board 
                        of directors or other similar body of an 
                        authority; or
                            (iv) any local housing and management 
                        authority in a State that requires the members 
                        of the board of directors or other similar body 
                        of a local housing and management authority to 
                        be salaried and to serve on a full-time basis.
            (3) Full participation.--No local housing and management 
        authority may limit or restrict the capacity or offices in 
        which a member of such board or body may serve on such board or 
        body solely because of the member's status as a resident 
        member.
            (4) Conflicts of interest.--The Secretary shall establish 
        guidelines to prevent conflicts of interest on the part of 
        members of the board or directors or governing body of a local 
        housing and management authority.
            (5) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    (A) Elected public housing resident member.--The 
                term ``elected public housing resident member'' means, 
                with respect to the local housing and management 
                authority involved, an individual who is a resident 
                member of the board of directors (or other similar 
                governing body of the authority) by reason of election 
                to such position pursuant to an election--
                            (i) in which eligibility for candidacy in 
                        such election is limited to individuals who--
                                    (I) maintain their principal 
                                residence in a dwelling unit of public 
                                housing administered or assisted by the 
                                authority; and
                                    (II) have not been convicted of a 
                                felony and do not reside in a household 
                                that includes an individual convicted 
                                of a felony;
                            (ii) in which only residents of dwelling 
                        units of public housing administered by the 
                        authority may vote; and
                            (iii) that is conducted in accordance with 
                        standards and procedures for such election, 
                        which shall be established by the Secretary.
                    (B) Resident member.--The term ``resident member'' 
                means a member of the board of directors or other 
                similar governing body of a local housing and 
                management authority who is a resident of a public 
                housing dwelling unit owned, administered, or assisted 
                by the authority or is a member of an assisted family 
                (as such term is defined in section 371) assisted by 
                the authority.
    (c) Establishment of Policies.--Any rules, regulations, policies, 
standards, and procedures necessary to implement policies required 
under section 107 to be included in the local housing management plan 
for a local housing and management authority shall be approved by the 
board of directors or similar governing body of the authority and shall 
be publicly available for review upon request.

SEC. 104. DETERMINATION OF ADJUSTED INCOME AND MEDIAN INCOME.

    (a) Adjusted Income.--For purposes of this Act, the term ``adjusted 
income'' means, with respect to a family, the difference between the 
income of the members of the family residing in a dwelling unit or the 
persons on a lease and the amount of any income exclusions for the 
family under subsections (b) and (c), as determined by the local 
housing and management authority.
    (b) Mandatory Exclusions From Income.--In determining adjusted 
income, a local housing and management authority shall exclude from the 
annual income of a family the following amounts:
            (1) Elderly and disabled families.--$400 for any elderly or 
        disabled family.
            (2) Medical expenses.--The amount by which 3 percent of the 
        annual family income is exceeded by the sum of--
                    (A) unreimbursed medical expenses of any elderly 
                family;
                    (B) unreimbursed medical expenses of any nonelderly 
                family, except that this subparagraph shall apply only 
                to the extent approved in appropriation Acts; and
                    (C) unreimbursed reasonable attendant care and 
                auxiliary apparatus expenses for each handicapped 
                member of the family, to the extent necessary to enable 
                any member of such family (including such handicapped 
                member) to be employed.
            (3) Child care expenses.--Any reasonable child care 
        expenses necessary to enable a member of the family to be 
        employed or to further his or her education.
            (4) Minors, students, and persons with disabilities.--$480 
        for each member of the family residing in the household (other 
        than the head of the household or his or her spouse) who is 
        under 18 years of age or is attending school or vocational 
        training on a full-time basis, or who is 18 years of age or 
        older and is a person with disabilities.
            (5) Child support payments.--Any payment made by a member 
        of the family for the support and maintenance of any child who 
        does not reside in the household, except that the amount 
        excluded under this paragraph may not exceed $480 for each 
        child for whom such payment is made.
    (c) Permissive Exclusions From Income.--In determining adjusted 
income, a local housing and management authority may, in the discretion 
of the authority, establish exclusions from the annual income of a 
family. Such exclusions may include the following amounts:
            (1) Excessive travel expenses.--Excessive travel expenses 
        in an amount not to exceed $25 per family per week, for 
        employment- or education-related travel.
            (2) Earned income.--An amount of any earned income of the 
        family, established at the discretion of the local housing and 
        management authority, which may be based on--
                    (A) all earned income of the family,
                    (B) the amount earned by particular members of the 
                family;
                    (C) the amount earned by families having certain 
                characteristics; or
                    (D) the amount earned by families or members during 
                certain periods or from certain sources.
            (3) Others.--Such other amounts for other purposes, as the 
        local housing and management authority may establish.
    (d) Median Income.--In determining median incomes (of persons, 
families, or households) for an area or establishing any ceilings or 
limits based on income under this Act, the Secretary shall determine or 
establish area median incomes and income ceilings and limits for 
Westchester and Rockland Counties, in the State of New York, as if each 
such county were an area not contained within the metropolitan 
statistical area in which it is located. In determining such area 
median incomes or establishing such income ceilings or limits for the 
portion of such metropolitan statistical area that does not include 
Westchester or Rockland Counties, the Secretary shall determine or 
establish area median incomes and income ceilings and limits as if such 
portion included Westchester and Rockland Counties.

SEC. 105. OCCUPANCY LIMITATIONS BASED ON ILLEGAL DRUG ACTIVITY AND 
              ALCOHOL ABUSE.

    (a) Ineligibility Because of Eviction for Drug-Related Criminal 
Activity.--Any tenant evicted from housing assisted under title II or 
title III by reason of drug-related criminal activity (as such term is 
defined in section 102) shall not be eligible for any housing 
assistance under title II or title III during the 3-year period 
beginning on the date of such eviction, unless the evicted tenant 
successfully completes a rehabilitation program approved by the local 
housing and management authority (which shall include a waiver of this 
subsection if the circumstances leading to eviction no longer exist).
    (b) Ineligibility of Illegal Drug Users and Alcohol Abusers.--
            (1) In general.--Notwithstanding any other provision of 
        law, a local housing and management authority shall establish 
        standards for occupancy in public housing dwelling units and 
        housing assistance under title II--
                    (A) that prohibit occupancy in any public housing 
                dwelling unit by, and housing assistance under title II 
                for, any person--
                            (i) who the local housing and management 
                        authority determines is illegally using a 
                        controlled substance; or
                            (ii) if the local housing and management 
                        authority determines that it has reasonable 
                        cause to believe that such person's illegal use 
                        (or pattern of illegal use) of a controlled 
                        substance, or abuse (or pattern of abuse) of 
                        alcohol, may interfere with the health, safety, 
                        or right to peaceful enjoyment of the premises 
                        by other residents of the project; and
                    (B) that allow the local housing and management 
                authority to terminate the tenancy in any public 
                housing unit of, and the housing assistance under title 
                II for, any person--
                            (i) who the local housing and management 
                        authority determines is illegally using a 
                        controlled substance; or
                            (ii) whose illegal use of a controlled 
                        substance, or whose abuse of alcohol, is 
                        determined by the local housing and management 
                        authority to interfere with the health, safety, 
                        or right to peaceful enjoyment of the premises 
                        by other residents of the project.
            (2) Consideration of rehabilitation.--In determining 
        whether, pursuant to paragraph (1), to deny occupancy or 
        assistance to any person based on a pattern of use of a 
        controlled substance or a pattern of abuse of alcohol, a local 
        housing and management authority may consider whether such 
        person--
                    (A) has successfully completed a supervised drug or 
                alcohol rehabilitation program (as applicable) and is 
                no longer engaging in the illegal use of a controlled 
                substance or abuse of alcohol (as applicable);
                    (B) has otherwise been rehabilitated successfully 
                and is no longer engaging in the illegal use of a 
                controlled substance or abuse of alcohol (as 
                applicable); or
                    (C) is participating in a supervised drug or 
                alcohol rehabilitation program (as applicable) and is 
                no longer engaging in the illegal use of a controlled 
                substance or abuse of alcohol (as applicable).
    (c) Other Screening.--A local housing and management authority may 
deny occupancy as provided in section 642 of the Housing and Community 
Development Act of 1992.
    (d) Limitation on Admission of Persons Convicted of Drug-Related 
Offenses.--Notwithstanding any other provision of law, each local 
housing and management authority shall prohibit admission and occupancy 
to public housing dwelling units by, and assistance under title III to, 
any person who, after the date of the enactment of this Act, has been 
convicted of illegal possession with intent to sell any controlled 
substance (as such term is defined in the Controlled Substances Act). 
This subsection may not be construed to require the termination of 
tenancy or eviction of any member of a household residing in public 
housing, or the termination of assistance of any member of an assisted 
family, who is not a person described in the preceding sentence.

SEC. 106. COMMUNITY WORK AND FAMILY SELF-SUFFICIENCY REQUIREMENT.

    (a) Requirement.--Except as provided in subsection (c), each local 
housing and management authority shall require, as a condition of 
occupancy of a public housing dwelling unit by a family and of 
providing housing assistance under title III on behalf of a family, 
that each adult
member of the family shall contribute not less than 8 hours of work per 
month within the community in which the family resides. The requirement 
under this subsection shall be incorporated in the terms of the tenant 
self-sufficiency contract under subsection (b).
    (b) Tenant Self-Sufficiency Contract.--
            (1) Requirement.--Except as provided in subsection (c), 
        each local housing and management authority shall require, as a 
        condition of occupancy of a public housing dwelling unit by a 
        family and of providing housing assistance under title III on 
        behalf of a family, that each adult member of the family who 
        has custody of, or is responsible for, a minor living in his or 
        her care shall enter into a legally enforceable self-
        sufficiency contract under this section with the authority.
            (2) Contract terms.--The terms of a self-sufficiency 
        contract under this subsection shall be established pursuant to 
        consultation between the authority and the family and shall 
        include a plan for the resident's or family's residency in 
        housing assisted under this Act that provides--
                    (A) a date specific by which the resident or family 
                will graduate from or terminate tenancy in such 
                housing;
                    (B) specific interim and final performance targets 
                and deadlines relating to self-sufficiency, which may 
                relate to education, school participation, substance 
                and alcohol abuse counseling, mental health support, 
                jobs and skills training, and any other factors the 
                authority considers appropriate; and
                    (C) any resources, services, and assistance 
                relating to self-sufficiency to be made available to 
                the resident or family.
            (3) Incorporation into lease.--A self-sufficiency contract 
        under this subsection shall be incorporated by reference into a 
        lease under section 226 or 324, as applicable, and the terms of 
        such contract shall be terms of the lease for which violation 
        may result in--
                    (A) termination of tenancy, pursuant to section 
                226(4) or 325(a)(1), as applicable; or
                    (B) withholding of assistance under this Act.
        The contract shall provide that the local housing and 
        management authority or the resident who is a party to the 
        contract may enforce the contract through an administrative 
        grievance procedure under section 111.
            (4) Partnerships for self-sufficiency activities.--A local 
        housing and management authority may enter into such agreements 
        and form such partnerships as may be necessary, with State and 
        local agencies, nonprofit organizations, academic institutions, 
        and other entities who have experience or expertise in 
        providing services, activities, training, and other assistance 
        designed to facilitate low- and very-low income families 
        achieving self-sufficiency.
            (5) Changed circumstances.--A self-sufficiency contract 
        under this subsection shall provide for modification in writing 
        and that the local housing and management authority may for 
        good cause or changed circumstances waive conditions under the 
        contract.
            (6) Model contracts.--The Secretary shall, in consultation 
        with organizations and groups representing resident councils 
        and residents of housing assisted under this Act, develop a 
        model self-sufficiency contract for use under this subsection. 
        The Secretary shall provide local housing and management 
        authorities with technical assistance and advice regarding such 
        contracts.
    (c) Exemptions.--A local housing and management authority shall 
provide for the exemption, from the applicability of the requirements 
under subsections (a) and (b)(1), of each individual who is--
            (1) an elderly person and unable, as determined in 
        accordance with guidelines established by the Secretary, to 
        comply with the requirement;
            (2) a person with disabilities and unable (as so 
        determined) to comply with the requirement;
            (3) working, attending school or vocational training, or 
        otherwise complying with work requirements applicable under 
        other public assistance programs, and unable (as so determined) 
        to comply with the requirement; or
            (4) otherwise physically impaired, as certified by a 
        doctor, and is therefore unable to comply with the requirement.

SEC. 107. LOCAL HOUSING MANAGEMENT PLANS.

    (a) In General.--In accordance with this section, the Secretary 
shall provide for each local housing and management authority to submit 
to the Secretary a local housing management plan under this section for 
each fiscal year that describes the mission of the local housing and 
management authority and the goals, objectives, and policies of the 
authority to meet the housing needs of low-income families in the 
jurisdiction of the authority.
    (b) Procedures.--The Secretary shall establish requirements and 
procedures for submission and review of plans and for the contents of 
such plans. Such procedures shall provide for local housing and 
management authorities to, at the option of the authority, submit plans 
under this section together with, or as part of, the comprehensive 
housing affordability strategy under section 105 of the Cranston-
Gonzalez National Affordable Housing Act (or any consolidated plan 
incorporating such strategy) for the relevant jurisdiction and for 
concomitant review of such plans.
    (c) Contents.--A local housing management plan under this section 
for a local housing and management authority shall contain the 
following information relating to the upcoming fiscal year for which 
the assistance under this Act is to be made available:
            (1) Financial resources.--An operating budget for the 
        authority that includes--
                    (A) a description of the financial resources 
                available to the authority;
                    (B) the uses to which such resources will be 
                committed, including eligible and required activities 
                under section 203 to be assisted, housing assistance to 
                be provided under title III, and administrative, 
                management, maintenance, and capital improvement 
                activities to be carried out; and
                    (C) an estimate of the market rent value of each 
                public housing development of the authority.
            (2) Population served.--A statement of the policies of the 
        authority governing eligibility, admissions, and occupancy of 
        families with respect to public housing dwelling units and 
        housing assistance under title III, including--
                    (A) the requirements for eligibility for such units 
                and assistance and the method by which eligibility will 
                be determined and verified;
                    (B) the requirements for selection and admissions 
                of eligible families for such units and assistance, 
                including any preferences established under section 223 
                or 321(e) and the criteria for selection under section 
                222(b) and (c);
                    (C) the procedures for assignment of families 
                admitted to dwelling units owned, operated, or assisted 
                by the authority;
                    (D) any standards and requirements for occupancy of 
                public housing dwelling units and units assisted under 
                title III, including conditions for continued 
                occupancy, termination of tenancy, eviction, and 
                termination of housing assistance under section 321(g);
                    (E) the criteria under subsection (f) of section 
                321 for providing and denying housing assistance under 
                title III to families moving into the jurisdiction of 
                the authority;
                    (F) the fair housing policy of the authority; and
                    (G) the procedures for outreach efforts (including 
                efforts that are planned and that have been executed) 
                to homeless families and to entities providing 
                assistance to homeless families, in the jurisdiction of 
                the authority.
            (3) Rent determination.--A statement of the policies of the 
        authority governing rents charged for public housing dwelling 
        units and rental contributions of assisted families under title 
        III, including--
                    (A) the methods by which such rents are determined 
                under section 225 and such contributions are determined 
                under section 322;
                    (B) an analysis of how such methods affect--
                            (i) the ability of the authority to provide 
                        housing assistance for families having a broad 
                        range of incomes;
                            (ii) the affordability of housing for 
                        families having incomes that do not exceed 30 
                        percent of the median family income for the 
                        area; and
                            (iii) the availability of other financial 
                        resources to the authority.
            (4) Quality standards for maintenance and management.--A 
        statement of the standards and policies of the authority 
        governing maintenance and management of housing owned and 
        operated by the authority, and management of the local housing 
        and management authority, including--
                    (A) housing quality standards in effect pursuant to 
                sections 232 and 328 and any certifications required 
                under such sections;
                    (B) routine and preventative maintenance policies 
                for public housing;
                    (C) emergency and disaster plans for public 
                housing;
                    (D) rent collection and security policies for 
                public housing;
                    (E) priorities and improvements for management of 
                public housing; and
                    (F) priorities and improvements for management of 
                the authority, including improvement of electronic 
                information systems to facilitate managerial capacity 
                and efficiency.
            (5) Grievance procedure.--A statement of the grievance 
        procedures of the authority under section 111.
            (6) Capital improvements.--With respect to public housing 
        developments owned or operated by the authority, a plan 
        describing--
                    (A) the capital improvements necessary to ensure 
                long-term physical and social viability of the 
                developments; and
                    (B) the priorities of the authority for capital 
                improvements based on analysis of available financial 
                resources, consultation with residents, and health and 
                safety considerations.
            (7) Demolition and disposition.--With respect to public 
        housing developments owned or operated by the authority--
                    (A) a description of any such housing to be 
                demolished or disposed of under subtitle E of title II;
                    (B) a timetable for such demolition or disposition; 
                and
                    (C) any information required under section 261(h) 
                with respect to such demolition or disposition.
            (8) Designation of housing for elderly and disabled 
        families.--With respect to public housing developments owned or 
        operated by the authority, a description of any developments 
        (or portions thereof) that the authority has designated or will 
        designate for occupancy by elderly and disabled families in 
        accordance with section 227 and any information required under 
        section 227(d) for such designated developments.
            (9) Conversion of public housing.--With respect to public 
        housing owned or operated by the authority, a description of 
        any building or buildings that the authority is required under 
        section 203(b) to convert to housing assistance under title 
        III, an analysis of such buildings showing that the buildings 
        meet the requirements under such section for such conversion, 
        and a statement of the amount of grant amounts under title II 
        to be used for rental assistance under title III.
            (10) Homeownership activities.--A description of any 
        homeownership programs of the authority under subtitle D of 
        title II or section 329 for the authority and the requirements 
        and assistance available under such programs.
            (11) Coordination with welfare and other appropriate 
        agencies.--A description of how the authority will coordinate 
        with State welfare agencies and other appropriate Federal, 
        State, or local government agencies or nongovernment agencies 
        or entities to ensure that public housing residents and 
        assisted families will be provided with access to resources to 
        assist in obtaining employment and achieving self-sufficiency.
            (12) Safety and crime prevention.--A description of the 
        policies established by the authority that increase or maintain 
        the safety of public housing residents, facilitate the 
        authority undertaking crime prevention measures (such as 
        community policing, where appropriate), allow resident input 
        and involvement, and allow for creative methods to increase 
        public housing resident safety by coordinating crime prevention 
        efforts between the authority and Federal, State, and local law 
        enforcement officials. Furthermore, to assure the safety of 
        public housing residents, the requirements will include use of 
        trespass laws by the authority to keep evicted tenants or 
        criminals out of public housing property.
            (13) Policies for loss of housing assistance.--A 
        description of policies of the authority requiring the loss of 
        housing assistance and tenancy under titles II and III, 
        pursuant to sections 222(e) and 321(g).
    (d) 5-Year Plan.--Each local housing management plan under this 
section for a local housing and management authority shall contain, 
with respect to the 5-year period beginning with the fiscal year for 
which the plan is submitted, the following information:
            (1) Statement of mission.--A statement of the mission of 
        the authority for serving the needs of low-income families in 
        the jurisdiction of authority during such period.
            (2) Goals and objectives.--A statement of the goals and 
        objectives of the authority that will enable the authority to 
        serve the needs identified pursuant to paragraph (1) during 
        such period.
            (3) Capital improvement overview.--If the authority will 
        provide capital improvements for public housing developments 
        during such period, an overview of such improvements, the 
        rationale for such improvements, and an analysis of how such 
        improvements will enable the authority to meet its goals, 
        objectives, and mission.
    (e) Citizen Participation.--
            (1) In general.--Before submitting a plan under this 
        section or an amendment under section 108(f) to a plan, a local 
        housing and management authority shall make the plan or 
        amendment publicly available in a manner that affords affected 
        public housing residents and assisted families under title III, 
        citizens, public agencies, entities providing assistance and 
        services for homeless families, and other interested parties an 
        opportunity, for a period not shorter than 60 days and ending 
        at a time that reasonably provides for compliance with the 
        requirements of paragraph (2), to examine its content and to 
        submit comments to the authority.
            (2) Consideration of comments.--A local housing and 
        management authority shall consider any comments or views 
        provided pursuant to paragraph (1) in preparing a final plan or 
        amendment for submission to the Secretary. A summary of such 
        comments or views shall be attached to the plan, amendment, or 
        report submitted. The submitted plan, amendment, or report 
shall be made publicly available upon submission.
    (f) Local Review.--Before submitting a plan under this section to 
the Secretary, the local housing and management authority shall submit 
the plan to any local elected official or officials responsible for 
appointing the members of the board of directors (or other similar 
governing body) of the local housing and management authority for 
review and approval.
    (g) Plans for Small LHMA's and LHMA's Administering Only Rental 
Assistance.--The Secretary shall establish requirements for submission 
of plans under this section and the information to be included in such 
plans applicable to housing and management authorities that own or 
operate less than 250 public housing dwelling units and shall establish 
requirements for such submission and information applicable to 
authorities that only administer housing assistance under title III 
(and do not own or operate public housing). Such requirements shall 
waive any requirements under this section that the Secretary determines 
are burdensome or unnecessary for such agencies.

SEC. 108. REVIEW OF PLANS.

    (a) Review and Notice.--
            (1) Review.--The Secretary shall conduct a limited review 
        of each local housing management plan submitted to the 
        Secretary to ensure that the plan is complete and complies with 
        the requirements of section 107. The Secretary shall have the 
        discretion to review a plan only to the extent that the 
        Secretary considers review is necessary.
            (2) Notice.--The Secretary shall notify each local housing 
        and management authority submitting a plan whether the plan 
        complies with such requirements not later than 75 days after 
        receiving the plan. If the Secretary does not notify the local 
        housing and management authority, as required under this 
        subsection and subsection (b), the plan shall be considered, 
        for purposes of this Act, to have been determined to comply 
        with the requirements under section 107 and the authority shall 
        be considered to have been notified of compliance upon the 
        expiration of such 75-day period.
    (b) Notice of Reasons for Determination of Noncompliance.--If the 
Secretary determines that a plan, as submitted, does not comply with 
the requirements under section 107, the Secretary shall specify in the 
notice under subsection (a) the reasons for the noncompliance and any 
modifications necessary for the plan to meet the requirements under 
section 107.
    (c) Standards for Determination of Noncompliance.--The Secretary 
may determine that a plan does not comply with the requirements under 
section 107 only if--
            (1) the plan is incomplete in significant matters required 
        under such section;
            (2) there is evidence available to the Secretary that 
        challenges, in a substantial manner, any information provided 
        in the plan;
            (3) the Secretary determines that the plan does not comply 
        with Federal law or violates the purposes of this Act because 
        it fails to provide housing that will be viable on a long-term 
        basis at a reasonable cost;
            (4) the plan plainly fails to adequately identify the needs 
        of low-income families for housing assistance in the 
        jurisdiction of the authority;
            (5) the plan plainly fails to adequately identify the 
        capital improvement needs for public housing developments in 
        the jurisdiction of the authority;
            (6) the activities identified in the plan are plainly 
        inappropriate to address the needs identified in the plan; or
            (7) the plan is inconsistent with the requirements of this 
        Act.
    (d) Treatment of Existing Plans.--Notwithstanding any other 
provision of this title, a local housing and management authority shall 
be considered to have submitted a plan under this section if the 
authority has submitted to the Secretary a comprehensive plan under 
section 14(e) of the United States Housing Act of 1937 (as in effect 
immediately before the enactment of this Act) or under the 
comprehensive improvement assistance program under such section 14, and 
the Secretary has approved such plan, before January 1, 1994. The 
Secretary shall provide specific procedures and requirements for such 
authorities to amend such plans by submitting only such additional 
information as is necessary to comply with the requirements of section 
107.
    (e) Actions to Change Plan.--A local housing and management 
authority that has submitted a plan under section 107 may change 
actions or policies described in the plan before submission and review 
of the plan of the authority for the next fiscal year only if--
            (1) in the case of costly or nonroutine changes, the 
        authority submits to the Secretary an amendment to the plan 
        under subsection (f) which is reviewed in accordance with such 
        subsection; or
            (2) in the case of inexpensive or routine changes, the 
        authority describes such changes in such local housing 
        management plan for the next fiscal year.
    (f) Amendments to Plan.--
            (1) In general.--During the annual or 5-year period covered 
        by the plan for a local housing and management authority, the 
        authority may submit to the Secretary any amendments to the 
        plan.
            (2) Review.--The Secretary shall conduct a limited review 
        of each proposed amendment submitted under this subsection to 
        determine whether the plan, as amended by the amendment, 
        complies with the requirements of section 107 and notify each 
        local housing and management authority submitting the amendment 
        whether the plan, as amended, complies with such requirements 
        not later than 30 days after receiving the amendment. If the 
        Secretary determines that a plan, as amended, does not comply 
        with the requirements under section 107, such notice shall 
        indicate the reasons for the noncompliance and any 
        modifications necessary for the plan to meet the requirements 
        under section 107. If the Secretary does not notify the local 
        housing and management authority as required under this 
        paragraph, the plan, as amended, shall be considered, for 
        purposes of this section, to comply with the requirements under 
        section 107.
            (3) Standards for determination of noncompliance.--The 
        Secretary may determine that a plan, as amended by a proposed 
        amendment, does not comply with the requirements under section 
        107 only if--
                    (A) the plan, as amended, would be subject to a 
                determination of noncompliance in accordance with the 
                provisions of subsection (c); or
                    (B) the Secretary determines that--
                            (i) the proposed amendment is plainly 
                        inconsistent with the activities specified in 
                        the plan; or
                            (ii) there is evidence that challenges, in 
                        a substantial manner, any information contained 
                        in the amendment; or
            (3) the Secretary determines that the plan, as amended, 
        violates the purposes of this Act because it fails to provide 
        housing that will be viable on a long-term basis at a 
        reasonable cost;
            (4) Amendments to extend time of performance.--
        Notwithstanding any other provision of this subsection, the 
        Secretary may not determine that any amendment to the plan of a 
        local housing and management authority that extends the time 
        for performance of activities assisted with amounts provided 
        under this title fails to comply with the requirements under 
        section 107 if the Secretary has not provided the amount of 
        assistance set forth in the plan or has not provided the 
        assistance in a timely manner.

SEC. 109. REPORTING REQUIREMENTS.

    (a) Performance and Evaluation Report.--Each local housing and 
management authority shall annually submit to the Accreditation Board 
established under section 401, on a date determined by such Board, a 
performance and evaluation report concerning the use of funds made 
available under this Act. The report of the local housing and 
management authority shall include an assessment by the authority of 
the relationship of such use of funds made available under this Act, as 
well as the use of other funds, to the needs identified in the local 
housing management plan and to the purposes of this Act. The local 
housing and management authority shall certify that the report was 
available for review and comment by affected tenants prior to its 
submission to the Board.
    (b) Review of LHMA's.--The Accreditation Board established under 
section 401 shall, at least on an annual basis, make such reviews as 
may be necessary or appropriate to determine whether each local housing 
and management authority receiving assistance under this section--
            (1) has carried out its activities under this Act in a 
        timely manner and in accordance with its local housing 
        management plan;
            (2) has a continuing capacity to carry out its local 
        housing management plan in a timely manner; and
            (3) has satisfied, or has made reasonable progress towards 
        satisfying, such performance standards as shall be prescribed 
        by the Board.
    (c) Records.--Each local housing and management authority shall 
collect, maintain, and submit to the Accreditation Board established 
under section 401 such data and other program records as the Board may 
require, in such form and in accordance with such schedule as the Board 
may establish.

SEC. 110. PET OWNERSHIP.

    (a) In General.--Except as provided in subsections (b) and (c), a 
resident of a public housing dwelling unit or an assisted dwelling unit 
(as such term is defined in section 371) may own common household pets 
or have common household pets present in the dwelling unit of such 
resident to the extent allowed by the local housing and management 
authority or the owner of the assisted dwelling unit, respectively.
    (b) Federally Assisted Rental Housing for the Elderly or 
Disabled.--Pet ownership in housing assisted under this Act that is 
federally assisted rental housing for the elderly or handicapped (as 
such term is defined in section 227 of the Housing and Urban-Rural 
Recovery Act of 1983) shall be governed by the provisions of section 
227 of such Act.
    (c) Elderly Families in Public and Assisted Housing.--Responsible 
ownership of common household pets shall not be denied any elderly or 
disabled family who resides in a dwelling unit in public housing or an 
assisted dwelling unit (as such term is defined in section 371), 
subject to the reasonable requirements of the local housing and 
management authority or the owner of the assisted dwelling unit, as 
applicable. This subsection shall not apply to units in public housing 
or assisted dwelling units that are located in federally assisted 
rental housing for the elderly or handicapped referred to in subsection 
(b).

SEC. 111. ADMINISTRATIVE GRIEVANCE PROCEDURE.

    (a) Requirements.--Each local housing and management authority 
receiving assistance under this Act shall establish and implement an 
administrative grievance procedure under which residents of public 
housing will--
            (1) be advised of the specific grounds of any proposed 
        adverse local housing and management authority action;
            (2) have an opportunity for a hearing before an impartial 
        party (including appropriate employees of the local housing and 
        management authority) upon timely request within a reasonable 
        period of time;
            (3) have an opportunity to examine any documents or records 
        or regulations related to the proposed action;
            (4) be entitled to be represented by another person of 
        their choice at any hearing;
            (5) be entitled to ask questions of witnesses and have 
        others make statements on their behalf; and
            (6) be entitled to receive a written decision by the local 
        housing and management authority on the proposed action.
    (b) Exclusion From Administrative Procedure of Grievances 
Concerning Evictions From Public Housing.--A local housing and 
management authority shall exclude from its procedure established under 
subsection (a) any grievance concerning an eviction from or termination 
of tenancy in public housing in any State which requires that, prior to 
eviction, a resident be provided a hearing in court which the Secretary 
determines provides the basic elements of due process.
    (c) Inapplicability to Choice-Based Rental Housing Assistance.--
This section may not be construed to require any local housing and 
management authority to establish or implement an administrative 
grievance procedure with respect to assisted families under title III.

SEC. 112. HEADQUARTERS RESERVE FUND.

    (a) Annual Reservation of Amounts.--Notwithstanding any other 
provision of law, the Secretary may retain not more than 3 percent of 
the amounts appropriated to carry out title II for any fiscal year for 
use in accordance with this section.
    (b) Use of Amounts.--Any amounts that are retained under subsection 
(a) or appropriated or otherwise made available for use under this 
section shall be available for subsequent allocation to specific areas 
and communities, and may only be used for the Department of Housing and 
Urban Development and--
            (1) unforeseen housing needs resulting from natural and 
        other disasters;
            (2) housing needs resulting from emergencies, as certified 
        by the Secretary, other than such disasters;
            (3) housing needs related to a settlement of litigation, 
        including settlement of fair housing litigation;
            (4) providing technical assistance, training, and 
        electronic information systems for the Department of Housing 
        and Urban Development, local housing and management 
        authorities, residents, resident councils, and resident 
        management corporations to improve management of such 
        authorities, except that the provision of assistance under this 
        paragraph may not involve expenditure of amounts retained under 
        subsection (a) for travel;
            (5)(A) providing technical assistance, directly or 
        indirectly, for local housing and management authorities, 
        residents, resident councils, resident management corporations, 
        and nonprofit and other entities in connection with 
        implementation of a homeownership program under section 251, 
        except that grants under this paragraph may not exceed 
        $100,000; and (B) establishing a public housing homeownership 
        program data base; and
            (6) needs related to the Secretary's actions regarding 
        troubled local housing and management authorities under this 
        Act.
Housing needs under this subsection may be met through the provision of 
assistance in accordance with title II or title III, or both.

SEC. 113. LABOR STANDARDS.

    (a) In General.--Any contract for grants, sale, or lease pursuant 
to this Act relating to public housing shall contain the following 
provisions:
            (1) Operation.--A provision requiring that not less than 
        the wages prevailing in the locality, as determined or adopted 
        (subsequent to a determination under applicable State or local 
        law) by the Secretary, shall be paid to all contractors and 
        persons employed in the operation of the low-income housing 
        development involved.
            (2) Production.--A provision that not less than the wages 
        prevailing in the locality, as predetermined by the Secretary 
        of Labor pursuant to the Davis-Bacon Act (40 U.S.C. 276a-276a-
        5), shall be paid to all laborers and mechanics employed in the 
        production of the development involved.
The Secretary shall require certification as to compliance with the 
provisions of this section before making any payment under such 
contract.
    (b) Exceptions.--Subsection (a) and the provisions relating to 
wages (pursuant to subsection (a)) in any contract for grants, sale, or 
lease pursuant to this Act relating to public housing, shall not apply 
to any of the following individuals:
            (1) Volunteers.--Any individual who--
                    (A) performs services for which the individual 
                volunteered;
                    (B)(i) does not receive compensation for such 
                services; or
                    (ii) is paid expenses, reasonable benefits, or a 
                nominal fee for such services; and
                    (C) is not otherwise employed at any time in the 
                construction work.
            (2) Residents employed by lhma.--Any resident of a public 
        housing development who (A) is an employee of the local housing 
        and management authority for the development, (B) performs 
        services in connection with the operation of a low-income 
        housing project owned or managed by such authority, and (C) is 
        not a member of a bargaining unit represented by a union that 
        has a collective bargaining agreement with the local housing 
        and management authority.
            (3) Residents in training programs.--Any individuals 
        participating in a job training program or other program 
        designed to promote economic self-sufficiency.
    (c) Definition.--For purposes of this section, the terms 
``operation'' and ``production'' have the meanings given the term in 
section 273.

SEC. 114. NONDISCRIMINATION.

    (a) In General.--No person in the United States shall on the 
grounds of race, color, national origin, religion, or sex be excluded 
from participation in, be denied the benefits of, or be subjected to 
discrimination under any program or activity funded in whole or in part 
with amounts made available under this Act. Any prohibition against 
discrimination on the basis of age under the Age Discrimination Act of 
1975 or with respect to an otherwise qualified handicapped individual 
as provided in section 504 of the Rehabilitation Act of 1973 shall also 
apply to any such program or activity.
    (b) Civil Rights Compliance.--Each local housing and management 
authority that receives grant amounts under this Act shall use such 
amounts and carry out its local housing management plan approved under 
section 108 in conformity with title VI of the Civil Rights Act of 
1964, the Fair Housing Act, section 504 of the Rehabilitation Act of 
1973, the Age Discrimination Act of 1975, and the Americans With 
Disabilities Act of 1990, and shall affirmatively further fair housing.

SEC. 115. PROHIBITION ON USE OF FUNDS.

    None of the funds made available to the Department of Housing and 
Urban Development to carry out this Act, which are obligated to State 
or local governments, local housing and management authorities, housing 
finance agencies, or other public or quasi-public housing agencies, 
shall be used to indemnify contractors or subcontractors of the 
government or agency against costs associated with judgments of 
infringement of intellectual property rights.

SEC. 116. INAPPLICABILITY TO INDIAN HOUSING.

    Except as specifically provided by law, the provisions of this 
title, and titles II, III, and IV shall not apply to public housing 
developed or operated pursuant to a contract between the Secretary and 
an Indian housing authority or to housing assisted under the Native 
American Housing Assistance and Self-Determination Act of 1996.

SEC. 117. EFFECTIVE DATE AND REGULATIONS.

    (a) Effective Date.--The provisions of this Act and the amendments 
made by this Act shall take effect and shall apply on the date of the 
enactment of this Act, unless such provisions or amendments 
specifically provide for effectiveness or applicability on another date 
certain.
    (b) Regulations.--The Secretary may issue any regulations necessary 
to carry out this Act.
    (c) Rule of Construction.--Any failure by the Secretary to issue 
any regulations authorized under subsection (b) shall not affect the 
effectiveness of any provision of this Act or any amendment made by 
this Act.

                        TITLE II--PUBLIC HOUSING

                        Subtitle A--Block Grants

SEC. 201. BLOCK GRANT CONTRACTS.

    (a) In General.--The Secretary shall enter into contracts with 
local housing and management authorities under which--
            (1) the Secretary agrees to make a block grant under this 
        title, in the amount provided under section 202(c), for 
        assistance for low-income housing to the local housing and 
        management authority for each fiscal year covered by the 
        contract; and
            (2) the authority agrees--
                    (A) to provide safe, clean, and healthy housing 
                that is affordable to low-income families and services 
                for families in such housing;
                    (B) to operate, or provide for the operation, of 
                such housing in a financially sound manner;
                    (C) to use the block grant amounts in accordance 
                with this title and the local housing management plan 
                for the authority that complies with the requirements 
                of section 107;
                    (D) to involve residents of housing assisted with 
                block grant amounts in functions and decisions relating 
                to management and the quality of life in such housing;
                    (E) that the management of the public housing of 
                the authority shall be subject to actions authorized 
                under subtitle B of title IV;
                    (F) that the Secretary may take actions under 
                section 205 with respect to improper use of grant 
                amounts provided under the contract; and
                    (G) to otherwise comply with the requirements under 
                this title.
    (b) Modification.--Contracts and agreements between the Secretary 
and a local housing and management authority may not be amended in a 
manner which would--
            (1) impair the rights of--
                    (A) leaseholders for units assisted pursuant to a 
                contract or agreement; or
                    (B) the holders of any outstanding obligations of 
                the local housing and management authority involved for 
                which annual contributions have been pledged; or
            (2) provide for payment of block grant amounts under this 
        title in an amount exceeding the allocation for the authority 
        determined under section 204.
Any rule of law contrary to this subsection shall be deemed 
inapplicable.
    (c) Conditions on Renewal.--Each block grant contract under this 
section shall provide, as a condition of renewal of the contract with 
the local housing and management authority, that the authority's 
accreditation be renewed by the Housing Foundation and Accreditation 
Board pursuant to review under section 433 by such Board.

SEC. 202. GRANT AUTHORITY, AMOUNT, AND ELIGIBILITY.

    (a) Authority.--The Secretary shall make block grants under this 
title to eligible local housing and management authorities in 
accordance with block grant contracts under section 201.
    (b) Performance Funds.--
            (1) In general.--The Secretary shall establish 2 funds for 
        the provision of grants to eligible local housing and 
        management authorities under this title, as follows:
                    (A) Capital fund.--A capital fund to provide 
                capital and management improvements to public housing 
                developments.
                    (B) Operating fund.--An operating fund for public 
                housing operations.
            (2) Flexibility of funding.--A local housing and management 
        authority may use up to 10 percent of the amounts from a grant 
        under this title that are allocated and provided from the 
        capital fund for activities that are eligible under section 
        203(a)(2) to be funded with amounts from the operating fund.
    (c) Amount of Grants.--The amount of the grant under this title for 
a local housing and management authority for a fiscal year shall be the 
amount of the allocation for the authority determined under section 
204, except as otherwise provided in this title and subtitle B of title 
IV.
    (d) Eligibility.--A local housing and management authority shall be 
an eligible local housing and management authority with respect to a 
fiscal year for purposes of this title only if--
            (1) the Secretary has entered into a block grant contract 
        with the authority;
            (2) the authority has submitted a local housing management 
        plan to the Secretary for such fiscal year;
            (3) the plan has been determined to comply with the 
        requirements under section 107 and the Secretary has not 
        notified the authority that the plan fails to comply with such 
        requirements;
            (4) the authority is accredited under section 433 by the 
        Housing Foundation and Accreditation Board;
            (5) the authority is exempt from local taxes, as provided 
        under subsection (e), or receives a contribution, as provided 
        under such subsection;
            (6) no member of the board of directors or other governing 
        body of the authority, or the executive director, has been 
        convicted of a felony;
            (7) the authority has entered into an agreement providing 
        for local cooperation in accordance with subsection (f); and
            (8) the authority has not been disqualified for a grant 
        pursuant to section 205(a) or subtitle B of title IV.
    (e) Payments in Lieu of State and Local Taxation of Public Housing 
Developments.--
            (1) Exemption from taxation.--A local housing and 
        management authority may receive a block grant under this title 
        only if--
                    (A)(i) the developments of the authority (exclusive 
                of any portions not assisted with amounts provided 
                under this title) are exempt from all real and personal 
                property taxes levied or imposed by the State, city, 
                county, or other political subdivision; and
                    (ii) the local housing and management authority 
                makes payments in lieu of taxes to such taxing 
                authority equal to 10 percent of the sum, for units 
                charged in the developments of the authority, of the 
                difference between the gross rent and the utility cost, 
                or such lesser amount as is--
                            (I) prescribed by State law;
                            (II) agreed to by the local governing body 
                        in its agreement under subsection (e) for local 
                        cooperation with the local housing and 
                        management authority or under a waiver by the 
                        local governing body; or
                            (III) due to failure of a local public body 
                        or bodies other than the local housing and 
                        management authority to perform any obligation 
                        under such agreement; or
                    (B) the authority complies with the requirements 
                under subparagraph (A) with respect to public housing 
                developments (including public housing units in mixed-
                income developments), but the authority agrees that the 
                units other than public housing units in any mixed-
                income developments (as such term is defined in section 
                221(c)(2)) shall be subject to any otherwise applicable 
                real property taxes imposed by the State, city, county 
                or other political subdivision.
            (2) Effect of failure to exempt from taxation.--
        Notwithstanding paragraph (1), a local housing and management 
        authority that does not comply with the requirements under such 
        paragraph may receive a block grant under this title, but only 
        if the State, city, county, or other political subdivision in 
        which the development is situated contributes, in the form of 
        cash or tax remission, the amount by which the taxes paid with 
        respect to the development exceed 10 percent of the gross rent 
        and utility cost charged in the development.
    (f) Local Cooperation.--In recognition that there should be local 
determination of the need for low-income housing to meet needs not 
being adequately met by private enterprise, the Secretary may not make 
any grant under this title to a local housing and management authority 
unless the governing body of the locality involved has entered into an 
agreement with the authority providing for the local cooperation 
required by the Secretary pursuant to this title.
    (g) Exception.--Notwithstanding subsection (a), the Secretary may 
make a grant under this title for a local housing and management 
authority that is not an eligible local housing and management 
authority but only for the period necessary to secure, in accordance 
with this title, an alternative local housing and management authority 
for the public housing of the ineligible authority.

SEC. 203. ELIGIBLE AND REQUIRED ACTIVITIES.

    (a) Eligible Activities.--Except as provided in subsection (b) and 
in section 202(b)(2), grant amounts allocated and provided from the 
capital fund and grant amounts allocated and provided from the 
operating fund may be used only for the following activities:
            (1) Capital Fund Activities.--Grant amounts from the 
        capital fund may be used for--
                    (A) the production and modernization of public 
                housing developments, including the redesign, 
                reconstruction, and reconfiguration of public housing 
                sites and buildings and the production of mixed-income 
                developments;
                    (B) vacancy reduction;
                    (C) addressing deferred maintenance needs and the 
                replacement of dwelling equipment;
                    (D) planned code compliance;
                    (E) management improvements;
                    (F) demolition and replacement under section 261;
                    (G) tenant relocation;
                    (H) capital expenditures to facilitate programs to 
                improve the economic empowerment and self-sufficiency 
                of public housing tenants; and
                    (I) capital expenditures to improve the security 
                and safety of residents.
            (2) Operating Fund Activities.--Grant amounts from the 
        operating fund may be used for--
                    (A) procedures and systems to maintain and ensure 
                the efficient management and operation of public 
                housing units;
                    (B) activities to ensure a program of routine 
                preventative maintenance;
                    (C) anti-crime and anti-drug activities, including 
                the costs of providing adequate security for public 
                housing tenants;
                    (D) activities related to the provision of 
                services, including service coordinators for elderly 
                persons or persons with disabilities;
                    (E) activities to provide for management and 
                participation in the management of public housing by 
                public housing tenants;
                    (F) the costs associated with the operation and 
                management of mixed-income developments;
                    (G) the costs of insurance;
                    (H) the energy costs associated with public housing 
                units, with an emphasis on energy conservation;
                    (I) the costs of administering a public housing 
                work program under section 106, including the costs of 
                any related insurance needs; and
                    (J) activities in connection with a homeownership 
                program for public housing residents under subtitle D, 
                including providing financing or assistance for 
                purchasing housing, or the provision of financial 
                assistance to resident management corporations or 
                resident councils to obtain training, technical 
                assistance, and educational assistance to promote 
                homeownership opportunities.
    (b) Required Conversion of Assistance for Public Housing to Rental 
Housing Assistance.--
            (1) Requirement.--A local housing and management authority 
        that receives grant amounts under this title shall provide 
        assistance in the form of rental housing assistance under title 
        III, or appropriate site revitalization or other appropriate 
        capital improvements approved by the Secretary, in lieu of 
        assisting the operation and modernization of any building or 
        buildings of public housing, if the authority provides 
        sufficient evidence to the Secretary that the building or 
        buildings--
                    (A) are on the same or contiguous sites;
                    (B) consist of more than 300 dwelling units;
                    (C) have a vacancy rate of at least 10 percent for 
                dwelling units not in funded, on-schedule modernization 
                programs;
                    (D) are identified as distressed housing for which 
                the local housing and management authority cannot 
                assure the long-term viability as public housing 
                through reasonable revitalization, density reduction, 
                or achievement of a broader range of household income; 
                and
                    (E) have an estimate cost of continued operation 
                and modernization as public housing that exceeds the 
                cost of providing choice-based rental assistance under 
                title III for all families in occupancy, based on 
                appropriate indicators of cost (such as the percentage 
                of the total development cost required for 
                modernization).
        Local housing and management agencies shall identify properties 
        that meet the definition of subparagraphs (A) through (E).
            (2) Use of Other Amounts.--In addition to grant amounts 
        under this title attributable (pursuant to the formulas under 
        section 204) to the building or buildings identified under 
        paragraph (1), the Secretary may use amounts provided in 
        appropriation Acts for choice-based housing assistance under 
        title III for families residing in such building or buildings 
        or for appropriate site revitalization or other appropriate 
        capital improvements approved by the Secretary.
            (3) Enforcement.--The Secretary shall take appropriate 
        action to ensure conversion of any building or buildings 
        identified under paragraph (1) and any other appropriate action 
        under this subsection, if the local housing and management 
        authority fails to take appropriate action under this 
        subsection.
            (4) Failure of LHMA's to comply with conversion 
        requirement.--If the Secretary determines that--
                    (A) a local housing and management authority has 
                failed under paragraph (1) to identify a building or 
                buildings in a timely manner,
                    (B) a local housing and management authority has 
                failed to identify one or more buildings which the 
                Secretary determines should have been identified under 
                paragraph (1), or
                    (C) one or more of the buildings identified by the 
                local housing and management authority pursuant to 
                paragraph (1) should not, in the determination of the 
                Secretary, have been identified under that paragraph,
        the Secretary may identify a building or buildings for 
        conversion and take other appropriate action pursuant to this 
        subsection.
            (5) Cessation of unnecessary spending.--Notwithstanding any 
        other provision of law, if, in the determination of the 
        Secretary, a building or buildings meets or is likely to meet 
        the criteria set forth in paragraph (1), the Secretary may 
        direct the local housing and management authority to cease 
        additional spending in connection with such building or 
        buildings, except to the extent that additional spending is 
        necessary to ensure safe, clean, and healthy housing until the 
        Secretary determines or approves an appropriate course of 
        action with respect to such building or buildings under this 
        subsection.
            (6) Use of budget authority.--Notwithstanding any other 
        provision of law, if a building or buildings are identified 
        pursuant to paragraph (1), the Secretary may authorize or 
        direct the transfer, to the choice-based or tenant-based 
        assistance program of such authority or to appropriate site 
        revitalization or other capital improvements approved by the 
        Secretary, of--
                    (A) in the case of an authority receiving 
                assistance under the comprehensive improvement 
                assistance program, any amounts obligated by the 
                Secretary for the modernization of such building or 
                buildings pursuant to section 14 of the United States 
                Housing Act of 1937, as in effect immediately before 
                the date of enactment of this Act;
                    (B) in the case of an authority receiving public 
                housing modernization assistance by formula pursuant to 
                such section 14, any amounts provided to the authority 
                which are attributable pursuant to the formula for 
                allocating such assistance to such building or 
                buildings;
                    (C) in the case of an authority receiving 
                assistance for the major reconstruction of obsolete 
                projects, any amounts obligated by the Secretary for 
                the major reconstruction of such building or buildings 
                pursuant to section 5(j)(2) of the United States 
                Housing Act of 1937, as in effect immediately before 
                the date of enactment of this Act; and
                    (D) in the case of an authority receiving 
                assistance pursuant to the formulas under section 204, 
                any amounts provided to the authority which are 
                attributable pursuant to the formulas for allocating 
                such assistance to such building or buildings.
    (c) Extension of Deadlines.--The Secretary may, for a local housing 
and management authority, extend any deadline established pursuant to 
this section or a local housing management plan for up to an additional 
5 years if the Secretary makes a determination that the deadline is 
impracticable.
    (d) Compliance With Plan.--The local housing management plan 
submitted by a local housing and management authority (including any 
amendments to the plan), unless determined under section 108 not to 
comply with the requirements under section 107, shall be binding upon 
the Secretary and the local housing and management authority and the 
authority shall use any grant amounts provided under this title for 
eligible activities under subsection (a) in accordance with the plan. 
This subsection may not be construed to preclude changes or amendments 
to the plan, as authorized under section 108(e) or any actions 
authorized by this Act to be taken without regard to a local housing 
management plan.

SEC. 204. DETERMINATION OF GRANT ALLOCATION.

    (a) In General.--For each fiscal year, after reserving amounts 
under section 112 from the aggregate amount made available for the 
fiscal year for carrying out this title, the Secretary shall allocate 
any remaining amounts among eligible local housing and management 
authorities in accordance with this section, so that the sum of all of 
the allocations for all eligible authorities is equal to such remaining 
amount.
    (b) Allocation Amount.--The Secretary shall determine the amount of 
the allocation for each eligible local housing and management 
authority, which shall be--
            (1) for any fiscal year beginning after the enactment of a 
        law containing the formulas described in paragraphs (1) and (2) 
        of subsection (c), the amount determined under such formulas; 
        or
            (2) for any fiscal year beginning before the expiration of 
        such period, the sum of--
                    (A) the operating allocation determined under 
                subsection (d)(1) for the authority; and
                    (B) the capital improvement allocation determined 
                under subsection (d)(2) for the authority.
    (c) Permanent Allocation Formulas for Capital and Operating 
Funds.--
            (1) Establishment of Capital Fund Formula.--The formula 
        under this paragraph shall provide for allocating assistance 
        under the capital fund for a fiscal year. The formula may take 
        into account such factors as--
                    (A) the number of public housing dwelling units 
                owned or operated by the local housing and management 
                authority, the characteristics and locations of the 
                developments, and the characteristics of the families 
                served and to be served (including the incomes of the 
                families);
                    (B) the need of the local housing and management 
                authority to carry out rehabilitation and modernization 
                activities, and reconstruction, production, and 
                demolition activities related to public housing 
                dwelling units owned or operated by the local housing 
                and management authority, including backlog and 
                projected future needs of the authority;
                    (C) the cost of constructing and rehabilitating 
                property in the area; and
                    (D) the need of the local housing and management 
                authority to carry out activities that provide a safe 
                and secure environment in public housing units owned or 
                operated by the local housing and management authority.
            (2) Establishment of Operating Fund Formula.--The formula 
        under this paragraph shall provide for allocating assistance 
        under the operating fund for a fiscal year. The formula may 
        take into account such factors as--
                    (A) standards for the costs of operating and 
                reasonable projections of income, taking into account 
                the characteristics and locations of the public housing 
                developments and characteristics of the families served 
                and to be served (including the incomes of the 
                families), or the costs of providing comparable 
                services as determined in accordance with criteria or a 
                formula representing the operations of a prototype 
                well-managed public housing development;
                    (B) the number of public housing dwelling units 
                owned or operated by the local housing and management 
                authority; and
                    (C) the need of the local housing and management 
                authority to carry out anti-crime and anti-drug 
                activities, including providing adequate security for 
                public housing residents.
            (3) Development under negotiated rulemaking procedure.--The 
        formulas under this subsection shall be developed according to 
        procedures for issuance of regulations under the negotiated 
        rulemaking procedure under subchapter III of chapter 5 of title 
        5, United States Code, except that the formulas shall not be 
        contained in a regulation.
            (4) Report.--Not later than the expiration of the 18-month 
        period beginning upon the enactment of this Act, the Secretary 
        shall submit a report to the Congress containing the proposed 
        formulas established pursuant to paragraph (3) that meets the 
        requirements of this subsection.
    (d) Interim Allocation Requirements.--
            (1) Operating allocation.--
                    (A) Applicability to 50 percent of appropriated 
                amounts.--Of any amounts available for allocation under 
                this subsection for a fiscal year, 50 percent shall be 
                used only to provide amounts for operating allocations 
                under this paragraph for eligible local housing and 
                management authorities.
                    (B) Determination.--The operating allocation under 
                this subsection for a local housing and management 
                authority for a fiscal year shall be an amount 
                determined by applying, to the amount to be allocated 
                under this paragraph, the formula used for determining 
                the distribution of operating subsidies for fiscal year 
                1995 to public housing agencies (as modified under 
                subparagraph (C)) under section 9 of the United States 
                Housing Act of 1937, as in effect before the enactment 
                of this Act.
                    (C) Treatment of chronically vacant units.--The 
                Secretary shall revise the formula referred to in 
                subparagraph (B) so that the formula does not provide 
                any amounts, other than utility costs and other 
                necessary costs (such as costs necessary for the 
                protection of persons and property), attributable to 
                any dwelling unit of a local housing and management 
                authority that has been vacant continuously for 6 or 
                more months. A unit shall not be considered vacant for 
                purposes of this paragraph if the unit is unoccupied 
                because of rehabilitation or renovation that is on-
                schedule.
                    (D) Increases in income.--The Secretary may revise 
                the formula referred to in subparagraph (B) to provide 
                an incentive to encourage local housing and management 
                authorities to increase nonrental income and to 
                increase rental income attributable to their units by 
                encouraging occupancy by families with a broad range of 
                incomes, including families whose incomes have 
                increased while in occupancy and newly admitted 
                families. Any such incentive shall provide that the 
                local housing and management authority shall derive the 
                full benefit of an increase in nonrental income, and 
                such increase shall not directly result in a decrease 
                in amounts provided to the authority under this title.
            (2) Capital improvement allocation.--
                    (A) Applicability to 50 percent of appropriated 
                amounts.--Of any amounts available for allocation under 
                this subsection for a fiscal year, 50 percent shall be 
                used only to provide amounts for capital improvement 
                allocations under this paragraph for eligible local 
                housing and management authorities.
                    (B) Determination.--The capital improvement 
                allocation under this subsection for an eligible local 
                housing and management authority for a fiscal year 
                shall be determined by applying, to the amount to be 
                allocated under this paragraph, the formula used for 
                determining the distribution of modernization 
                assistance for fiscal year 1995 to public housing 
                agencies under section 14 of the United States Housing 
                Act of 1937, as in effect before the enactment of this 
                Act, except that Secretary shall establish a method for 
                taking into consideration allocation of amounts under 
                the comprehensive improvement assistance program.
    (e) Eligibility of Units Acquired from Proceeds of Sales Under 
Demolition or Disposition Plan.--If a local housing and management 
authority uses proceeds from the sale of units under a homeownership 
program in accordance with section 251 to acquire additional units to 
be sold to low-income families, the additional units shall be counted 
as public housing for purposes of determining the amount of the 
allocation to the authority under this section until sale by the 
authority, but in any case no longer than 5 years.

SEC. 205. SANCTIONS FOR IMPROPER USE OF AMOUNTS.

    (a) In General.--In addition to any other actions authorized under 
this title, if the Secretary finds pursuant to an annual financial and 
performance audit under section 432 that a local housing and management 
authority receiving grant amounts under this title has failed to comply 
substantially with any provision of this title, the Secretary may--
            (1) terminate payments under this title to the authority;
            (2) withhold from the authority amounts from the total 
        allocation for the authority pursuant to section 204;
            (3) reduce the amount of future grant payments under this 
        title to the authority by an amount equal to the amount of such 
        payments that were not expended in accordance with this title;
            (4) limit the availability of grant amounts provided to the 
        authority under this title to programs, projects, or activities 
        not affected by such failure to comply;
            (5) withhold from the authority amounts allocated for the 
        authority under title III; or
            (6) order other corrective action with respect to the 
        authority.
    (b) Termination of Compliance Action.--If the Secretary takes 
action under subsection (a) with respect to a local housing and 
management authority, the Secretary shall--
            (1) in the case of action under subsection (a)(1), resume 
        payments of grant amounts under this title to the authority in 
        the full amount of the total allocation under section 204 for 
        the authority at the time that the Secretary first determines 
        that the authority will comply with the provisions of this 
        title;
            (2) in the case of action under paragraph (2), (5), or (6) 
        of subsection (a), make withheld amounts available as the 
        Secretary considers appropriate to ensure that the authority 
        complies with the provisions of this title; or
            (3) in the case of action under subsection (a)(4), release 
        such restrictions at the time that the Secretary first 
        determines that the authority will comply with the provisions 
        of this title.

           Subtitle B--Admissions and Occupancy Requirements

SEC. 221. LOW-INCOME HOUSING REQUIREMENT.

    (a) Production Assistance.--Any public housing produced using 
amounts provided under a grant under this title or under the United 
States Housing Act of 1937 shall be operated as public housing for the 
40-year period beginning upon such production.
    (b) Operating Assistance.--No portion of any public housing 
development operated with amounts from a grant under this title or 
operating assistance provided under the United States Housing Act of 
1937 may be disposed of before the expiration of the 10-year period 
beginning upon the conclusion of the fiscal year for which the grant or 
such assistance was provided, except as provided in this Act.
    (c) Capital Improvements Assistance.--Amounts may be used for 
eligible activities under section 203(a)(2) only for the following 
housing developments:
            (1) Low-income developments.--Amounts may be used for a 
        low-income housing development that--
                    (A) is owned by local housing and management 
                authorities;
                    (B) is operated as low-income rental housing and 
                produced or operated with assistance provided under a 
                grant under this title; and
                    (C) is consistent with the purposes of this title.
        Any development, or portion thereof, referred to in this 
        paragraph for which activities under section 203(a)(2) are 
        conducted using amounts from a grant under this title shall be 
        maintained and used as public housing for the 20-year period 
        beginning upon the receipt of such grant. Any public housing 
        development, or portion thereof, that received the benefit of a 
        grant pursuant to section 14 of the United States Housing Act 
        of 1937 shall be maintained and used as public housing for the 
        20-year period beginning upon receipt of such amounts.
            (2) Mixed income developments.--Amounts may be used for 
        mixed-income developments, which shall be a housing development 
        that--
                    (A) contains dwelling units that are available for 
                occupancy by families other than low-income families;
                    (B) contains a number of dwelling units--
                            (i) which units are made available (by 
                        master contract or individual lease) for 
                        occupancy only by low- and very low-income 
                        families identified by the local housing and 
                        management authority;
                            (ii) which number is not less than a 
                        reasonable number of units, including related 
                        amenities, taking into account the amount of 
                        the assistance provided by the authority 
                        compared to the total investment (including 
                        costs of operation) in the development;
                            (iii) which units are subject to the 
                        statutory and regulatory requirements of the 
                        public housing program, except that the 
                        Secretary may grant appropriate waivers to such 
                        statutory and regulatory requirements if 
                        reductions in funding or other changes to the 
                        program make continued application of such 
                        requirements impracticable;
                            (iv) which units are specially designated 
                        as dwelling units under this subparagraph, 
                        except the equivalent units in the development 
                        may be substituted for designated units during 
                        the period the units are subject to the 
                        requirements of the public housing program; and
                            (v) which units shall be eligible for 
                        assistance under this title; and
                    (C) is owned by the local housing and management 
                authority, an affiliate controlled by it, or another 
                appropriate entity.
        Notwithstanding any other provision of this title, to 
        facilitate the establishment of socioeconomically mixed 
        communities, a local housing and management authority that uses 
        grant amounts under this title for a mixed income development 
        under this paragraph may, to the extent that income from such a 
        development reduces the amount of grant amounts used for 
        operating or other costs relating to public housing, use such 
        resulting savings to rent privately developed dwelling units in 
        the neighborhood of the mixed income development. Such units 
        shall be made available for occupancy only by low-income 
        families eligible for residency in public housing.

SEC. 222. FAMILY ELIGIBILITY.

    (a) In General.--Dwelling units in public housing may be rented 
only to families who are low-income families at the time of their 
initial occupancy of such units.
    (b) Income Mix Within Developments.--A local housing and management 
authority may establish and utilize income-mix criteria for the 
selection of residents for dwelling units in public housing 
developments that limit admission to a development by selecting 
applicants having incomes appropriate so that the mix of incomes of 
families occupying the development is proportional to the income mix in 
the eligible population of the jurisdiction of the authority, as 
adjusted to take into consideration the severity of housing need. Any 
criteria established under this subsection shall be subject to the 
provisions of subsection (c).
    (c) Income Mix.--
            (1) LHMA income mix.--Of the public housing dwelling units 
        of a local housing and management authority made available for 
        occupancy after the date of the enactment of this Act not less 
        than 35 percent shall be occupied by low-income families whose 
        incomes do not exceed 30 percent of the area median income, as 
        determined by the Secretary with adjustments for smaller and 
        larger families, except that the Secretary, may for purposes of 
        this subsection, establish income ceilings higher or lower than 
        30 percent of the median for the area on the basis of the 
        Secretary's findings that such variations are necessary because 
        of unusually high or low family incomes.
            (2) Prohibition of concentration of low-income families.--A 
        local housing and management authority may not comply with the 
        requirements under paragraph (1) by concentrating very low-
        income families (or other families with relatively low incomes) 
        in public housing dwelling units in certain public housing 
        developments or certain buildings within developments. The 
        Secretary may review the income and occupancy characteristics 
        of the public housing developments, and the buildings of such 
        developments, of local housing and management authorities to 
        ensure compliance with the provisions of this paragraph.
    (d) Waiver of Eligibility Requirements for Occupancy by Police 
Officers.--
            (1) Authority and waiver.--To provide occupancy in public 
        housing dwelling units to police officers and other law 
        enforcement or security personnel (who are not otherwise 
        eligible for residence in public housing) and to increase 
        security for other public housing residents in developments 
        where crime has been a problem, a local housing and management 
        authority may, with respect to such units and subject to 
        paragraph (2)--
                    (A) waive--
                            (i) the provisions of subsection (a) of 
                        this section and section 225(a);
                            (ii) the applicability of--
                                    (I) any preferences for occupancy 
                                established under section 223;
                                    (II) the minimum rental amount 
                                established pursuant to section 225(b) 
                                and any maximum monthly rental amount 
                                established pursuant to such section;
                                    (III) any criteria relating to 
                                project income mix established under 
                                subsection (b);
                                    (IV) the income mix requirements 
                                under subsection (c); and
                                    (V) any other occupancy limitations 
                                or requirements; and
                    (B) establish special rent requirements and other 
                terms and conditions of occupancy.
            (2) Conditions of waiver.--A local housing and management 
        authority may take the actions authorized in paragraph (1) only 
        if authority determines that such actions will increase 
        security in the public housing developments involved and will 
        not result in a significant reduction of units available for 
        residence by low-income families.
    (e) Loss of Assistance for Termination of Tenancy.--A local housing 
and management authority shall, consistent with policies described in 
the local housing management plan of the authority, establish policies 
providing that a family residing in a public housing dwelling unit 
whose tenancy is terminated for serious violations of the terms or 
conditions of the lease shall--
            (1) lose any right to continued occupancy in public housing 
        under this title; and
            (2) immediately become ineligible for admission to public 
        housing under this title or for housing assistance under title 
        III--
                    (A) in the case of a termination due to drug-
                related criminal activity, for a period of not less 
                than 3 years from the date of the termination; or
                    (B) for other terminations, for a reasonable period 
                of time as determined period of time as determined by 
                the local housing and management authority.

SEC. 223. PREFERENCES FOR OCCUPANCY.

    (a) Authority To Establish.--Any local housing and management 
authority may establish a system for making dwelling units in public 
housing available for occupancy that provides preference for such 
occupancy to families having certain characteristics.
    (b) Content.--Each system of preferences established pursuant to 
this section shall be based upon local housing needs and priorities, as 
determined by the local housing and management authority using 
generally accepted data sources, including any information obtained 
pursuant to an opportunity for public comment as provided under section 
107(e) or under the requirements applicable to comprehensive housing 
affordability strategy for the relevant jurisdiction.

SEC. 224. ADMISSION PROCEDURES.

    (a) Admission Requirements.--A local housing and management 
authority shall ensure that each family residing in a public housing 
development owned or administered by the authority is admitted in 
accordance with the procedures established under this title by the 
authority and the income limits under section 222.
    (b) Availability of Criminal Records.--A local housing and 
management authority may request and obtain records regarding the 
criminal convictions of applicants for, or tenants of, public housing 
as provided in section 646 of the Housing and Community Development Act 
of 1992.
    (c) Notification of Application Decisions.--A local housing and 
management authority shall establish procedures designed to provide for 
notification to an applicant for admission to public housing of the 
determination with respect to such application, the basis for the 
determination, and, if the applicant is determined to be eligible for 
admission, the projected date of occupancy (to the extent such date can 
reasonably be determined). If an authority denies an applicant 
admission to public housing, the authority shall notify the applicant 
that the applicant may request an informal hearing on the denial within 
a reasonable time of such notification.
    (d) Confidentiality for Victims of Domestic Violence.--A local 
housing and management authority shall be subject to the restrictions 
regarding release of information relating to the identity and new 
residence of any family in public housing that was a victim of domestic 
violence that are applicable to shelters pursuant to the Family 
Violence Prevention and Services Act. The authority shall work with the 
United States Postal Service to establish procedures consistent with 
the confidentiality provisions in the Violence Against Women Act of 
1994.
    (e) Transfers.--A local housing and management authority may apply, 
to each public housing resident seeking to transfer from one 
development to another development owned or operated by the authority, 
the screening procedures applicable at such time to new applicants for 
public housing.

SEC. 225. FAMILY RENTAL PAYMENT.

    (a) Rental Contribution by Resident.--
            (1) In general.--A family shall pay as monthly rent for a 
        dwelling unit in public housing the amount that the local 
        housing and management authority determines is appropriate with 
        respect to the family and the unit, which shall be--
                    (A) based upon factors determined by the authority, 
                which may include the adjusted income of the resident, 
                type and size of dwelling unit, operating and other 
                expenses of the authority, or any other factors that 
                the authority considers appropriate; and
                    (B) an amount that is not less than the minimum 
                monthly rental amount under subsection (b)(1) nor more 
                than any maximum monthly rental amount established for 
                the dwelling unit pursuant to subsection (b)(2).
        Notwithstanding any other provision of this subsection, the 
        amount paid by an elderly family or a disabled family for 
        monthly rent for a dwelling unit in public housing may not 
        exceed 30 percent of the family's adjusted monthly income. 
        Notwithstanding any other provision of this subsection, the 
        amount paid by a family whose head (or whose spouse) is a 
        veteran (as such term is defined in section 203(b) of the 
        National Housing Act) for monthly rent for a dwelling unit in 
        public housing may not exceed 30 percent of the family's 
        adjusted monthly income. In determining the amount of the rent 
        charged under this paragraph for a dwelling unit, a local 
        housing and management authority shall take into consideration 
        the characteristics of the population served by the authority, 
        the goals of the local housing management plan for the 
        authority, and the goals under the comprehensive housing 
        affordability strategy under section 105 of the Cranston-
        Gonzalez National Affordable Housing Act (or any consolidated 
        plan incorporating such strategy) for the applicable 
        jurisdiction.
            (2) Exceptions.--Notwithstanding any other provision of 
        this section, the amount paid for monthly rent for a dwelling 
        unit in public housing may not exceed 30 percent of the 
        family's adjusted monthly income for any family who--
                    (A) upon the date of the enactment of this Act, is 
                residing in any dwelling unit in public housing and--
                            (i) is an elderly family; or
                            (ii) is a disabled family; or
                    (B) has an income that does not exceed 30 percent 
                of the median income for the area (as determined by the 
                Secretary with adjustments for smaller and larger 
                families).
    (b) Allowable Rents.--
            (1) Minimum rental.--Each local housing and management 
        authority shall establish, for each dwelling unit in public 
        housing owned or administered by the authority, a minimum 
        monthly rental contribution toward the rent (which rent shall 
        include any amount allowed for utilities), which--
                    (A) may not be less than $25, nor more than $50; 
                and
                    (B) may be increased annually by the authority, 
                except that no such annual increase may exceed 10 
                percent of the amount of the minimum monthly rental 
                contribution in effect for the preceding year.
        Notwithstanding the preceding sentence, a local housing and 
        management authority may, in its sole discretion, grant an 
        exemption in whole or in part from payment of the minimum 
        monthly rental contribution established under this paragraph to 
        any family unable to pay such amount because of severe 
        financial hardships. Severe financial hardships may include 
        situations where the family is awaiting an eligibility 
        determination for a Federal, State, or local assistance 
        program, where the family would be evicted as a result of 
        imposition of the minimum rent, and other situations as may be 
        determined by the authority.
            (2) Maximum rental.--Each local housing and management 
        authority may establish, for each dwelling unit in public 
        housing owned or administered by the authority, a maximum 
        monthly rental amount, which shall be an amount determined by 
        the authority which is based on, but does not exceed--
                    (A) the average, for dwelling units of similar size 
                in public housing developments owned and operated by 
                such authority, of operating expenses attributable to 
                such units;
                    (B) the reasonable rental value of the unit; or
                    (C) the local market rent for comparable units of 
                similar size.
    (c) Income Reviews.--If a local housing and management authority 
establishes the amount of rent paid by a family for a public housing 
dwelling unit based on the adjusted income of the family, the authority 
shall review the incomes of such family occupying dwelling units in 
public housing owned or administered by the authority not less than 
annually.
    (d) Review of Maximum and Minimum Rents.--
            (1) Rental charges.--If the Secretary determines, at any 
        time, that a significant percentage of the public housing 
        dwelling units owned or operated by a large local housing and 
        management authority are occupied by households paying more 
        than 30 percent of their adjusted incomes for rent, the 
        Secretary shall review the maximum and minimum monthly rental 
        amounts established by the authority.
            (2) Population served.--If the Secretary determines, at any 
        time, that less than 40 percent of the public housing dwelling 
        units owned or operated by a large local housing and management 
        authority are occupied by households whose incomes do not 
        exceed 30 percent of the area median income, the Secretary 
        shall review the maximum and minimum monthly rental amounts 
        established by the authority.
            (3) Modification of maximum and minimum rental amounts.--
        If, pursuant to review under this subsection, the Secretary 
        determines that the maximum and minimum rental amounts for a 
        large local housing and management authority are not 
        appropriate to serve the needs of the low-income population of 
        the jurisdiction served by the authority (taking into 
        consideration the financial resources and costs of the 
        authority), as identified in the approved local housing 
        management plan of the authority, the Secretary may require the 
        authority to modify the maximum and minimum monthly rental 
        amounts.
            (4) Large lhma.--For purposes of this subsection, the term 
        ``large local housing and management authority'' means a local 
        housing and management authority that owns or operates 1250 or 
        more public housing dwelling units.
    (e) Phase-In of Rent Contribution Increases.--
            (1) In general.--Except as provided in paragraph (2), for 
        any family residing in a dwelling unit in public housing upon 
        the date of the enactment of this Act, if the monthly 
        contribution for rental of an assisted dwelling unit to be paid 
        by the family upon initial applicability of this title is 
        greater than the amount paid by the family under the provisions 
        of the United States Housing Act of 1937 immediately before 
        such applicability, any such resulting increase in rent 
        contribution shall be--
                    (A) phased in equally over a period of not less 
                than 3 years, if such increase is 30 percent or more of 
                such contribution before initial applicability; and
                    (B) limited to not more than 10 percent per year if 
                such increase is more than 10 percent but less than 30 
                percent of such contribution before initial 
                applicability.
            (2) Exception.--The minimum rent contribution requirement 
        under subsection (b)(1)(A) shall apply to each family described 
        in paragraph (1) of this subsection, notwithstanding such 
        paragraph.

SEC. 226. LEASE REQUIREMENTS.

    In renting dwelling units in a public housing development, each 
local housing and management authority shall utilize leases that--
            (1) do not contain unreasonable terms and conditions;
            (2) obligate the local housing and management authority to 
        maintain the development in compliance with the housing quality 
        requirements under section 232;
            (3) require the local housing and management authority to 
        give adequate written notice of termination of the lease, which 
        shall not be less than--
                    (A) the period provided under the applicable law of 
                the jurisdiction or 14 days, whichever is less, in the 
                case of nonpayment of rent;
                    (B) a reasonable period of time, but not to exceed 
                14 days, when the health or safety of other residents 
                or local housing and management authority employees is 
                threatened; and
                    (C) the period of time provided under the 
                applicable law of the jurisdiction, in any other case;
            (4) require that the local housing and management authority 
        may not terminate the tenancy except for violation of the terms 
        or conditions of the lease, violation of applicable Federal, 
        State, or local law, or for other good cause;
            (5) provide that the local housing and management authority 
        may terminate the tenancy of a public housing resident for any 
        activity, engaged in by a public housing resident, any member 
        of the resident's household, or any guest or other person under 
        the resident's control, that--
                    (A) threatens the health or safety of, or right to 
                peaceful enjoyment of the premises by, other residents 
                or employees of the local housing and management 
                authority or other manager of the housing;
                    (B) threatens the health or safety of, or right to 
                peaceful enjoyment of their premises by, persons 
                residing in the immediate vicinity of the premises; or
                    (C) is criminal activity (including drug-related 
                criminal activity) on or off such premises;
            (6) provide that any occupancy in violation of the 
        provisions of section 105 shall be cause for termination of 
        tenancy; and
            (7) specify that, with respect to any notice of eviction or 
        termination, notwithstanding any State law, a public housing 
        resident shall be informed of the opportunity, prior to any 
        hearing or trial, to examine any relevant documents, records or 
        regulations directly related to the eviction or termination.

SEC. 227. DESIGNATED HOUSING FOR ELDERLY AND DISABLED FAMILIES

    (a) Authority To Provide Designated Housing.--
            (1) In general.--Subject only to provisions of this section 
        and notwithstanding any other provision of law, a local housing 
        and management authority for which the information required 
        under subsection (d) is in effect may provide public housing 
        developments (or portions of developments) designated for 
        occupancy by (A) only elderly families, (B) only disabled 
        families, or (C) elderly and disabled families.
            (2) Priority for occupancy.--In determining priority for 
        admission to public housing developments (or portions of 
        developments) that are designated for occupancy as provided in 
        paragraph (1), the local housing and management authority may 
        make units in such developments (or portions) available only to 
        the types of families for whom the development is designated.
            (3) Eligibility of near-elderly families.--If a local 
        housing and management authority determines that there are 
        insufficient numbers of elderly families to fill all the units 
        in a development (or portion of a development) designated under 
        paragraph (1) for occupancy by only elderly families, the 
        authority may provide that near-elderly families may occupy 
        dwelling units in the development (or portion).
    (b) Standards Regarding Evictions.--Except as provided in section 
105(b)(1)(B), any tenant who is lawfully residing in a dwelling unit in 
a public housing development may not be evicted or otherwise required 
to vacate such unit because of the designation of the development (or 
portion of a development) pursuant to this section or because of any 
action taken by the Secretary or any local housing and management 
authority pursuant to this section.
    (c) Relocation Assistance.--A local housing and management 
authority that designates any existing development or building, or 
portion thereof, for occupancy as provided under subsection (a)(1) 
shall provide, to each person and family who agrees to be relocated in 
connection with such designation--
            (1) notice of the designation and an explanation of 
        available relocation benefits, as soon as is practicable for 
        the authority and the person or family;
            (2) access to comparable housing (including appropriate 
        services and design features), which may include choice-based 
        rental housing assistance under title III, at a rental rate 
        paid by the tenant that is comparable to that applicable to the 
        unit from which the person or family has vacated; and
            (3) payment of actual, reasonable moving expenses.
    (d) Required Inclusions in Local Housing Management Plan.--A local 
housing and management authority may designate a development (or 
portion of a development) for occupancy under subsection (a)(1) only if 
the authority, as part of the authority's local housing management 
plan--
            (1) establishes that the designation of the development is 
        necessary--
                    (A) to achieve the housing goals for the 
                jurisdiction under the comprehensive housing 
                affordability strategy under section 105 of the 
                Cranston-Gonzalez National Affordable Housing Act; and
                    (B) to meet the housing needs of the low-income 
                population of the jurisdiction; and
            (2) includes a description of--
                    (A) the development (or portion of a development) 
                to be designated;
                    (B) the types of tenants for which the development 
                is to be designated;
                    (C) any supportive services to be provided to 
                tenants of the designated development (or portion);
                    (D) how the design and related facilities (as such 
                term is defined in section 202(d)(8) of the Housing Act 
                of 1959) of the development accommodate the special 
                environmental needs of the intended occupants; and
                    (E) any plans to secure additional resources or 
                housing assistance to provide assistance to families 
                that may have been housed if occupancy in the 
                development were not restricted pursuant to this 
                section.
For purposes of this subsection, the term `supportive services' means 
services designed to meet the special needs of residents. 
Notwithstanding section 108, the Secretary may approve a local housing 
management plan without approving the portion of the plan covering 
designation of a development pursuant to this section.
    (e) Effectiveness.--
            (1) Initial 5-year effectiveness.--The information required 
        under subsection (d) shall be in effect for purposes of this 
        section during the 5-year period that begins upon notification 
        under section 108(a) of the local housing and management 
        authority that the information complies with the requirements 
        under section 107 and this section.
            (2) Renewal.--Upon the expiration of the 5-year period 
        under paragraph (1) or any 2-year period under this paragraph, 
        an authority may extend the effectiveness of the designation 
        and information for an additional 2-year period (that begins 
        upon such expiration) by submitting to the Secretary any 
        information needed to update the information. The Secretary may 
        not limit the number of times a local housing and management 
        authority extends the effectiveness of a designation and 
        information under this paragraph.
            (3) Treatment of existing plans.--Notwithstanding any other 
        provision of this section, a local housing and management 
        authority shall be considered to have submitted the information 
        required under this section if the authority has submitted to 
        the Secretary an application and allocation plan under section 
        7 of the United States Housing Act of 1937 (as in effect before 
        the date of the enactment of this Act) that has not been 
        approved or disapproved before such date of enactment.
            (4) Transition provision.--Any application and allocation 
        plan approved under section 7 of the United States Housing Act 
        of 1937 (as in effect before the date of the enactment of this 
        Act) before such date of enactment shall be considered to be 
        the information required to be submitted under this section and 
        that is in effect for purposes of this section for the 5-year 
        period beginning upon such approval.
    (g) Inapplicability of Uniform Relocation Assistance and Real 
Property Acquisitions Policy Act of 1970.--No resident of a public 
housing development shall be considered to be displaced for purposes of 
the Uniform Relocation Assistance and Real Property Acquisitions Policy 
Act of 1970 because of the designation of any existing development or 
building, or portion thereof, for occupancy as provided under 
subsection (a) of this section.
    (h) Use of Amounts.--Any amounts appropriated pursuant to section 
10(b) of the Housing Opportunity Program Extension Act of 1996 (Public 
Law 104-120) may also be used for choice-based rental housing 
assistance under title III for local housing and management authorities 
to implement this section.

                         Subtitle C--Management

SEC. 231. MANAGEMENT PROCEDURES.

    (a) Sound Management.--A local housing and management authority 
that receives grant amounts under this title shall establish and comply 
with procedures and practices sufficient to ensure that the public 
housing developments owned or administered by the authority are 
operated in a sound manner.
    (b) Accounting System for Rental Collections and Costs.--
            (1) Establishment.--Each local housing and management 
        authority that receives grant amounts under this title shall 
        establish and maintain a system of accounting for rental 
        collections and costs (including administrative, utility, 
        maintenance, repair, and other operating costs) for each 
        project and operating cost center (as determined by the 
        Secretary).
            (2) Access to records.--Each local housing and management 
        authority shall make available to the general public the 
        information required pursuant to paragraph (1) regarding 
        collections and costs.
            (3) Exemption.--The Secretary may permit authorities owning 
        or operating fewer than 500 dwelling units to comply with the 
        requirements of this subsection by accounting on an authority-
        wide basis.
    (c) Management by Other Entities.--Except as otherwise provided 
under this Act, a local housing and management authority may contract 
with any other entity to perform any of the management functions for 
public housing owned or operated by the local housing and management 
authority.

SEC. 232. HOUSING QUALITY REQUIREMENTS.

    (a) In General.--Each local housing and management authority that 
receives grant amounts under this Act shall maintain its public housing 
in a condition that complies--
            (1) in the case of public housing located in a jurisdiction 
        which has in effect laws, regulations, standards, or codes 
        regarding habitability of residential dwellings, with such 
        applicable laws, regulations, standards, or codes; or
            (2) in the case of public housing located in a jurisdiction 
        which does not have in effect laws, regulations, standards, or 
        codes described in paragraph (1), with the housing quality 
        standards established under subsection (b).
    (b) Federal Housing Quality Standards.--The Secretary shall 
establish housing quality standards under this subsection that ensure 
that public housing dwelling units are safe, clean, and healthy. Such 
standards shall include requirements relating to habitability, 
including maintenance, health and sanitation factors, condition, and 
construction of dwellings, and shall, to the greatest extent 
practicable, be consistent with the standards established under section 
328(b). The Secretary shall differentiate between major and minor 
violations of such standards.
    (c) Determinations.--Each local housing and management authority 
providing housing assistance shall identify, in the local housing 
management plan of the authority, whether the authority is utilizing 
the standard under paragraph (1) or (2) of subsection (a).
    (d) Annual Inspections.--Each local housing and management 
authority that owns or operates public housing shall make an annual 
inspection of each public housing development to determine whether 
units in the development are maintained in accordance with the 
requirements under subsection (a). The authority shall submit the 
results of such inspections to the Secretary and the Inspector General 
for the Department of Housing and Urban Development and such results 
shall be available to the Housing Foundation and Accreditation Board 
established under title IV and any auditor conducting an audit under 
section 432.

SEC. 233. EMPLOYMENT OF RESIDENTS.

    Section 3 of the Housing and Urban Development Act of 1968 (12 
U.S.C. 1701u) is amended--
            (1) in subsection (c)(1)--
                    (A) in subparagraph (A)--
                            (i) by striking ``public and Indian housing 
                        agencies'' and inserting ``local housing and 
                        management authorities and recipients of grants 
                        under the Native American Housing Assistance 
                        and Self-Determination Act of 1996''; and
                            (ii) by striking ``development assistance'' 
                        and all that follows through the end and 
                        inserting ``assistance provided under title II 
                        of the United States Housing Act of 1996 and 
                        used for the housing production, operation, or 
                        capital needs.''; and
                    (B) in subparagraph (B)(ii), by striking ``managed 
                by the public or Indian housing agency'' and inserting 
                ``assisted by the local housing and management 
                authority or the recipient of a grant under the Native 
                American Housing Assistance and Self-Determination Act 
                of 1996''; and
            (2) in subsection (d)(1)--
                    (A) in subparagraph (A)--
                            (i) by striking ``public and Indian housing 
                        agencies'' and inserting ``local housing and 
                        management authorities and recipients of grants 
                        under the Native American Housing Assistance 
                        and Self-Determination Act of 1996''; and
                            (ii) by striking ``development assistance'' 
                        and all that follows through ``section 14 of 
                        that Act'' and inserting ``assistance provided 
                        under title II of the United States Housing Act 
                        of 1996 and used for the housing production, 
                        operation, or capital needs''; and
                    (B) in subparagraph (B)(ii), by striking ``operated 
                by the public or Indian housing agency'' and inserting 
                ``assisted by the local housing and management 
                authority or the recipient of a grant under the Native 
                American Housing Assistance and Self-Determination Act 
                of 1996''.

SEC. 234. RESIDENT COUNCILS AND RESIDENT MANAGEMENT CORPORATIONS.

    (a) Resident Councils.--The residents of a public housing 
development may establish a resident council for the development for 
purposes of consideration of issues relating to residents, 
representation of resident interests, and coordination and consultation 
with a local housing and management authority. A resident council shall 
be an organization or association that--
            (1) is nonprofit in character;
            (2) is representative of the residents of the eligible 
        housing;
            (3) adopts written procedures providing for the election of 
        officers on a regular basis; and
            (4) has a democratically elected governing board, which is 
        elected by the residents of the eligible housing on a regular 
        basis.
    (b) Resident Management Corporations.--
            (1) Establishment.--The residents of a public housing 
        development may establish a resident management corporation for 
        the purpose of assuming the responsibility for the management 
        of the development under section 235 or purchasing a 
        development.
            (2) Requirements.--A resident management corporation shall 
        be a corporation that--
                    (A) is nonprofit in character;
                    (B) is organized under the laws of the State in 
                which the development is located;
                    (C) has as its sole voting members the residents of 
                the development; and
                    (D) is established by the resident council for the 
                development or, if there is not a resident council, by 
                a majority of the households of the development.

SEC. 235. MANAGEMENT BY RESIDENT MANAGEMENT CORPORATION.

    (a) Authority.--A local housing and management authority may enter 
into a contract under this section with a resident management 
corporation to provide for the management of public housing 
developments by the corporation.
    (b) Contract.--A contract under this section for management of 
public housing developments by a resident management corporation shall 
establish the respective management rights and responsibilities of the 
corporation and the local housing and management authority. The 
contract shall be consistent with the requirements of this Act 
applicable to public housing development and may include specific terms 
governing management personnel and compensation, access to public 
housing records, submission of and adherence to budgets, rent 
collection procedures, resident income verification, resident 
eligibility determinations, resident eviction, the acquisition of 
supplies and materials and such other matters as may be appropriate. 
The contract shall be treated as a contracting out of services.
    (c) Bonding and Insurance.--Before assuming any management 
responsibility for a public housing development, the resident 
management corporation shall provide fidelity bonding and insurance, or 
equivalent protection. Such bonding and insurance, or its equivalent, 
shall be adequate to protect the Secretary and the local housing and 
management authority against loss, theft, embezzlement, or fraudulent 
acts on the part of the resident management corporation or its 
employees.
    (d) Block Grant Assistance and Income.--A contract under this 
section shall provide for--
            (1) the local housing and management authority to provide a 
        portion of the block grant assistance under this title to the 
        resident management corporation for purposes of operating the 
        public housing development covered by the contract and 
        performing such other eligible activities with respect to the 
        development as may be provided under the contract;
            (2) the amount of income expected to be derived from the 
        development itself (from sources such as rents and charges);
            (3) the amount of income to be provided to the development 
        from the other sources of income of the local housing and 
        management authority (such as interest income, administrative 
        fees, and rents); and
            (4) any income generated by a resident management 
        corporation of a public housing development that exceeds the 
        income estimated under the contract shall be used for eligible 
        activities under section 203(a).
    (e) Calculation of Total Income.--
            (1) Maintenance of support.--Subject to paragraph (2), the 
        amount of assistance provided by a local housing and management 
        authority to a public housing development managed by a resident 
        management corporation may not be reduced during the 3-year 
        period beginning on the date on which the resident management 
        corporation is first established for the development.
            (2) Reductions and increases in support.--If the total 
        income of a local housing and management authority is reduced 
        or increased, the income provided by the local housing and 
        management authority to a public housing development managed by 
        a resident management corporation shall be reduced or increased 
        in proportion to the reduction or increase in the total income 
        of the authority, except that any reduction in block grant 
        amounts under this title to the authority that occurs as a 
        result of fraud, waste, or mismanagement by the authority shall 
        not affect the amount provided to the resident management 
        corporation.

SEC. 236. TRANSFER OF MANAGEMENT OF CERTAIN HOUSING TO INDEPENDENT 
              MANAGER AT REQUEST OF RESIDENTS.

    (a) Authority.--The Secretary may transfer the responsibility and 
authority for management of specified housing (as such term is defined 
in subsection (h)) from a local housing and management authority to an 
eligible management entity, in accordance with the requirements of this 
section, if--
            (1) such housing is owned or operated by a local housing 
        and management authority that is--
                    (A) not accredited under section 433 by the Housing 
                Foundation and Accreditation Board; or
                    (B) designated as a troubled authority under 
                section 431(a)(2); and
            (2) the Secretary determines that--
                    (A) such housing has deferred maintenance, physical 
                deterioration, or obsolescence of major systems and 
                other deficiencies in the physical plant of the 
                project;
                    (B) such housing is occupied predominantly by 
                families with children who are in a severe state of 
                distress, characterized by such factors as high rates 
                of unemployment, teenage pregnancy, single-parent 
                households, long-term dependency on public assistance 
                and minimal educational achievement;
                    (C) such housing is located in an area such that 
                the housing is subject to recurrent vandalism and 
                criminal activity (including drug-related criminal 
                activity); and
                    (D) the residents can demonstrate that the elements 
                of distress for such housing specified in subparagraphs 
                (A) through (C) can be remedied by an entity that has a 
                demonstrated capacity to manage, with reasonable 
                expenses for modernization.
Such a transfer may be made only as provided in this section, pursuant 
to the approval by the Secretary of a request for the transfer made by 
a majority vote of the residents for the specified housing, after 
consultation with the local housing and management authority for the 
specified housing.
    (b) Block Grant Assistance.--Pursuant to a contract under 
subsection (c), the Secretary shall require the local housing and 
management authority for specified housing to provide to the manager 
for the housing, from any block grant amounts under this title for the 
authority, fair and reasonable amounts for operating costs for the 
housing. The amount made available under this subsection to a manager 
shall be determined by the Secretary based on the share for the 
specified housing of the total block grant amounts for the local 
housing and management authority transferring the housing, taking into 
consideration the operating and capital improvement needs of the 
specified housing, the operating and capital improvement needs of the 
remaining public housing units managed by the local housing and 
management authority, and the local housing management plan of such 
authority.
    (c) Contract Between Secretary and Manager.--
            (1) Requirements.--Pursuant to the approval of a request 
        under this section for transfer of the management of specified 
        housing, the Secretary shall enter into a contract with the 
        eligible management entity.
            (2) Terms.-- A contract under this subsection shall contain 
        provisions establishing the rights and responsibilities of the 
        manager with respect to the specified housing and the Secretary 
        and shall be consistent with the requirements of this Act 
        applicable to public housing developments.
    (d) Compliance With Local Housing Management Plan.--A manager of 
specified housing under this section shall comply with the approved 
local housing management plan applicable to the housing and shall 
submit such information to the local housing and management authority 
from which management was transferred as may be necessary for such 
authority to prepare and update its local housing management plan.
    (e) Demolition and Disposition by Manager.--A manager under this 
section may demolish or dispose of specified housing only if, and in 
the manner, provided for in the local housing management plan for the 
authority transferring management of the housing.
    (f) Limitation on LHMA Liability.--A local housing and management 
authority that is not a manager for specified housing shall not be 
liable for any act or failure to act by a manager or resident council 
for the specified housing.
    (g) Treatment of Manager.--To the extent not inconsistent with this 
section and to the extent the Secretary determines not inconsistent 
with the purposes of this Act, a manager of specified housing under 
this section shall be considered to be a local housing and management 
authority for purposes of this title.
    (h) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Eligible management entity.--The term ``eligible 
        management entity'' means, with respect to any public housing 
        development, any of the following entities that has been 
        accredited in accordance with section 433:
                    (A) Nonprofit organization.--A public or private 
                nonprofit organization, which shall--
                            (i) include a resident management 
                        corporation or resident management organization 
                        and, as determined by the Secretary, a public 
                        or private nonprofit organization sponsored by 
                        the local housing and management authority that 
                        owns the development; and
                            (ii) not include the local housing and 
                        management authority that owns the development.
                    (B) For-profit entity.--A for-profit entity that 
                has demonstrated experience in providing low-income 
                housing.
                    (C) State or local government.--A State or local 
                government, including an agency or instrumentality 
                thereof.
                    (D) Local housing and management authority.--A 
                local housing and management authority (other than the 
                local housing and management authority that owns the 
                development).
        The term does not include a resident council.
            (2) Manager.--The term ``manager'' means any eligible 
        management entity that has entered into a contract under this 
        section with the Secretary for the management of specified 
        housing.
            (3) Nonprofit.--The term ``nonprofit'' means, with respect 
        to an organization, association, corporation, or other entity, 
        that no part of the net earnings of the entity inures to the 
        benefit of any member, founder, contributor, or individual.
            (4) Private nonprofit organization.--The term ``private 
        nonprofit organization'' means any private organization 
        (including a State or locally chartered organization) that--
                    (A) is incorporated under State or local law;
                    (B) is nonprofit in character;
                    (C) complies with standards of financial 
                accountability acceptable to the Secretary; and
                    (D) has among its purposes significant activities 
                related to the provision of decent housing that is 
                affordable to low-income families.
            (5) Local housing and management authority.--The term 
        ``local housing and management authority'' has the meaning 
        given such term in section 103(a).
            (6) Public nonprofit organization.--The term ``public 
        nonprofit organization'' means any public entity that is 
        nonprofit in character.
            (7) Specified housing.--The term ``specified housing'' 
        means a public housing development or developments, or a 
portion of a development or developments, for which the transfer of 
management is requested under this section. The term includes one or 
more contiguous buildings and an area of contiguous row houses, but in 
the case of a single building, the building shall be sufficiently 
separable from the remainder of the development of which it is part to 
make transfer of the management of the building feasible for purposes 
of this section.

SEC. 237. RESIDENT OPPORTUNITY PROGRAM.

    (a) Purpose.--The purpose of this section is to encourage increased 
resident management of public housing developments, as a means of 
improving existing living conditions in public housing developments, by 
providing increased flexibility for public housing developments that 
are managed by residents by--
            (1) permitting the retention, and use for certain purposes, 
        of any revenues exceeding operating and project costs; and
            (2) providing funding, from amounts otherwise available, 
        for technical assistance to promote formation and development 
        of resident management entities.
For purposes of this section, the term ``public housing development'' 
includes one or more contiguous buildings or an area of contiguous row 
houses the elected resident councils of which approve the establishment 
of a resident management corporation and otherwise meet the 
requirements of this section.
    (b) Program Requirements.--
            (1) Resident council.--As a condition of entering into a 
        resident opportunity program, the elected resident council of a 
        public housing development shall approve the establishment of a 
        resident management corporation that complies with the 
        requirements of section 234(b)(2). When such approval is made 
        by the elected resident council of a building or row house 
        area, the resident opportunity program shall not interfere with 
        the rights of other families residing in the development or 
        harm the efficient operation of the development. The resident 
        management corporation and the resident council may be the same 
        organization, if the organization complies with the 
        requirements applicable to both the corporation and council.
            (2) Public housing management specialist.--The resident 
        council of a public housing development, in cooperation with 
        the local housing and management authority, shall select a 
        qualified public housing management specialist to assist in 
        determining the feasibility of, and to help establish, a 
        resident management corporation and to provide training and 
        other duties agreed to in the daily operations of the 
        development.
            (3) Management responsibilities.--A resident management 
        corporation that qualifies under this section, and that 
        supplies insurance and bonding or equivalent protection 
        sufficient to the Secretary and the local housing and 
        management authority, shall enter into a contract with the 
        authority establishing the respective management rights and 
        responsibilities of the corporation and the authority. The 
        contract shall be treated as a contracting out of services and 
        shall be subject to the requirements under section 234 for such 
        contracts.
            (4) Annual audit.--The books and records of a resident 
        management corporation operating a public housing development 
        shall be audited annually by a certified public accountant. A 
        written report of each such audit shall be forwarded to the 
        local housing and management authority and the Secretary.
    (c) Comprehensive Improvement Assistance.--Public housing 
developments managed by resident management corporations may be 
provided with modernization assistance from grant amounts under this 
title for purposes of renovating such developments. If such renovation 
activities (including the planning and architectural design of the 
rehabilitation) are administered by a resident management corporation, 
the local housing and management authority involved may not retain, for 
any administrative or other reason, any portion of the assistance 
provided pursuant to this subsection unless otherwise provided by 
contract.
    (d) Waiver of Federal Requirements.--
            (1) Waiver of regulatory requirements.--Upon the request of 
        any resident management corporation and local housing and 
        management authority, and after notice and an opportunity to 
        comment is afforded to the affected residents, the Secretary 
        may waive (for both the resident management corporation and the 
        local housing and management authority) any requirement 
        established by the Secretary (and not specified in any statute) 
        that the Secretary determines to unnecessarily increase the 
        costs or restrict the income of a public housing development.
            (2) Waiver to permit employment.--Upon the request of any 
        resident management corporation, the Secretary may, subject to 
        applicable collective bargaining agreements, permit residents 
        of such development to volunteer a portion of their labor.
            (3) Exceptions.--The Secretary may not waive under this 
        subsection any requirement with respect to income eligibility 
for purposes of section 222, rental payments under section 225, tenant 
or applicant protections, employee organizing rights, or rights of 
employees under collective bargaining agreements.
    (e) Operating Assistance and Development Income.--
            (1) Calculation of operating subsidy.--Subject only to the 
        exception provided in paragraph (3), the grant amounts received 
        under this title by a local housing and management authority 
        used for operating costs under section 203(a)(2) that are 
        allocated to a public housing development managed by a resident 
        management corporation shall not be less than per unit monthly 
        amount of such assistance used by the local housing and 
        management authority in the previous year, as determined on an 
        individual development basis.
            (2) Contract requirements.--Any contract for management of 
        a public housing development entered into by a local housing 
        and management authority and a resident management corporation 
        shall specify the amount of income expected to be derived from 
        the development itself (from sources such as rents and charges) 
        and the amount of income funds to be provided to the 
        development from the other sources of income of the authority 
        (such as operating assistance under section 203(a), interest 
        income, administrative fees, and rents).
    (f) Resident Management Technical Assistance and Training.--
            (1) Financial assistance.--To the extent budget authority 
        is available under this title, the Secretary shall provide 
        financial assistance to resident management corporations or 
        resident councils that obtain, by contract or otherwise, 
        technical assistance for the development of resident management 
        entities, including the formation of such entities, the 
        development of the management capability of newly formed or 
        existing entities, the identification of the social support 
        needs of residents of public housing developments, and the 
        securing of such support. In addition, the Secretary may 
        provide financial assistance to resident management 
        corporations or resident councils for activities sponsored by 
        resident organizations for economic uplift, such as job 
        training, economic development, security, and other self-
        sufficiency activities beyond those related to the management 
        of public housing. The Secretary may require resident councils 
        or resident management corporations to utilize local housing 
        and management authorities or other qualified organizations as 
        contract administrators with respect to financial assistance 
        provided under this paragraph.
            (2) Limitation on assistance.--The financial assistance 
        provided under this subsection with respect to any public 
        housing development may not exceed $100,000.
            (3) Prohibition.--A resident management corporation or 
        resident council may not, before the award to the corporation 
        or council of a grant amount under this subsection, enter into 
        any contract or other agreement with any entity to provide such 
        entity with amounts from the grant for providing technical 
        assistance or carrying out other activities eligible for 
        assistance with amounts under this subsection. Any such 
        agreement entered into in violation of this paragraph shall be 
        void and unenforceable.
            (4) Funding.--Of any amounts made available for financial 
        assistance under this title, the Secretary may use to carry out 
        this subsection $15,000,000 for fiscal year 1996.
            (5) Limitation regarding assistance under hope grant 
        program.--The Secretary may not provide financial assistance 
        under this subsection to any resident management corporation or 
        resident council with respect to which assistance for the 
        development or formation of such entity is provided under title 
        III of the United States Housing Act of 1937 (as in effect 
        before the date of the enactment of this Act).
            (6) Technical assistance and clearinghouse.--The Secretary 
        may use up to 10 percent of the amount made available pursuant 
        to paragraph (4)--
                    (A) to provide technical assistance, directly or by 
                grant or contract, and
                    (B) to receive, collect, process, assemble, and 
                disseminate information,
        in connection with activities under this subsection.
    (g) Assessment and Report by Secretary.--Not later than 3 years 
after the date of the enactment of the United States Housing Act of 
1996, the Secretary shall--
            (1) conduct an evaluation and assessment of resident 
        management, and particularly of the effect of resident 
        management on living conditions in public housing; and
            (2) submit to the Congress a report setting forth the 
        findings of the Secretary as a result of the evaluation and 
        assessment and including any recommendations the Secretary 
        determines to be appropriate.
    (h) Applicability.--Any management contract between a local housing 
and management authority and a resident management corporation that is 
entered into after the date of the enactment of the Stewart B. McKinney 
Homeless Assistance Amendments Act of 1988 shall be subject to this 
section and any regulations issued to carry out this section.

                       Subtitle D--Homeownership

SEC. 251. RESIDENT HOMEOWNERSHIP PROGRAMS.

    (a) In General.--A local housing and management authority may carry 
out a homeownership program in accordance with this section and the 
local housing management plan of the authority to make public housing 
dwelling units, public housing developments, and other housing projects 
available for purchase by low-income families. An authority may 
transfer a unit only pursuant to a homeownership program approved by 
the Secretary. Notwithstanding section 108, the Secretary may approve a 
local housing management plan without approving the portion of the plan 
regarding a homeownership program pursuant to this section.
    (b) Participating Units.--A program under this section may cover 
any existing public housing dwelling units or projects, and may include 
other dwelling units and housing owned, operated, or assisted, or 
otherwise acquired for use under such program, by the local housing and 
management authority.
    (c) Eligible Purchasers.--
            (1) Low-income requirement.--Only low-income families 
        assisted by a local housing and management authority, other 
        low-income families, and entities formed to facilitate such 
        sales by purchasing units for resale to low-income families 
        shall be eligible to purchase housing under a homeownership 
        program under this section.
            (2) Other requirements.--A local housing and management 
        authority may establish other requirements or limitations for 
        families to purchase housing under a homeownership program 
        under this section, including requirements or limitations 
        regarding employment or participation in employment counseling 
        or training activities, criminal activity, participation in 
        homeownership counseling programs, evidence of regular income, 
        and other requirements. In the case of purchase by an entity 
        for resale to low-income families, the entity shall sell the 
        units to low-income families within 5 years from the date of 
        its acquisition of the units. The entity shall use any net 
        proceeds from the resale and from managing the units, as 
        determined in accordance with guidelines of the Secretary, for 
        housing purposes, such as funding resident organizations and 
        reserves for capital replacements.
    (d) Financing and Assistance.--A homeownership program under this 
section may provide financing for acquisition of housing by families 
purchasing under the program or by the local housing and management 
authority for sale under this program in any manner considered 
appropriate by the authority (including sale to a resident management 
corporation).
    (e) Downpayment Requirement.--
            (1) In general.--Each family purchasing housing under a 
        homeownership program under this section shall be required to 
        provide from its own resources a downpayment in connection with 
        any loan for acquisition of the housing, in an amount 
        determined by the local housing and management authority. 
        Except as provided in paragraph (2), the authority shall permit 
        the family to use grant amounts, gifts from relatives, 
        contributions from private sources, and similar amounts as 
        downpayment amounts in such purchase,
            (2) Direct family contribution.--In purchasing housing 
        pursuant to this section, each family shall contribute an 
        amount of the downpayment, from resources of the family other 
        than grants, gifts, contributions, or other similar amounts 
        referred to in paragraph (1), that is not less than 1 percent 
        of the purchase price.
    (f) Ownership Interests.--A homeownership program under this 
section may provide for sale to the purchasing family of any ownership 
interest that the local housing and management authority considers 
appropriate under the program, including ownership in fee simple, a 
condominium interest, an interest in a limited dividend cooperative, a 
shared appreciation interest with a local housing and management 
authority providing financing.
    (g) Resale.--
            (1) Authority and limitation.--A homeownership program 
        under this section shall permit the resale of a dwelling unit 
        purchased under the program by an eligible family, but shall 
        provide such limitations on resale as the authority considers 
        appropriate (whether the family purchases directly from the 
        authority or from another entity) for the authority to 
        recapture--
                    (A) from any economic gain derived from any such 
                resale occurring during the 5-year period beginning 
                upon purchase of the dwelling unit by the eligible 
                family, a portion of the amount of any financial 
                assistance provided under the program by the authority 
                to the eligible family; and
                    (B) after the expiration of such 5-year period, 
                only such amounts as are equivalent to the assistance 
                provided under this section by the authority to the 
                purchaser.
            (2) Considerations.--The limitations referred to in 
        paragraph (1) may provide for consideration of the aggregate 
        amount of assistance provided under the program to the family, 
        the contribution to equity provided by the purchasing eligible 
        family, the period of time elapsed between purchase under the 
        homeownership program and resale, the reason for resale, any 
        improvements to the property made by the eligible family, any 
        appreciation in the value of the property, and any other 
        factors that the authority considers appropriate.
    (h) Inapplicability of Disposition Requirements.--The provisions of 
section 261 shall not apply to disposition of public housing dwelling 
units under a homeownership program under this section, except that any 
dwelling units sold under such a program shall be treated as public 
housing dwelling units for purposes of subsections (e) and (f) of 
section 261.

Subtitle E--Disposition, Demolition, and Revitalization of Developments

SEC. 261. REQUIREMENTS FOR DEMOLITION AND DISPOSITION OF DEVELOPMENTS.

    (a) Authority and Flexibility.--A local housing and management 
authority may demolish, dispose of, or demolish and dispose of 
nonviable or nonmarketable public housing developments of the authority 
in accordance with this section.
    (b) Local Housing Management Plan Requirement.--A local housing and 
management authority may take any action to demolish or dispose of a 
public housing development (or a portion of a development) only if such 
demolition or disposition complies with the provisions of this section 
and is in accordance with the local housing management plan for the 
authority. Notwithstanding section 108, the Secretary may approve a 
local housing management plan without approving the portion of the plan 
covering demolition or disposition pursuant to this section.
    (c) Purpose of Demolition or Disposition.--A local housing and 
management authority may demolish or dispose of a public housing 
development (or portion of a development) only if the authority 
provides sufficient evidence to the Secretary that--
            (1) the development (or portion thereof) is severely 
        distressed or obsolete;
            (2) the development (or portion thereof) is in a location 
        making it unsuitable for housing purposes;
            (3) the development (or portion thereof) has design or 
        construction deficiencies that make cost-effective 
        rehabilitation infeasible;
            (4) assuming that reasonable rehabilitation and management 
        intervention for the development has been completed and paid 
        for, the anticipated revenue that would be derived from 
        charging market-based rents for units in the development (or 
        portion thereof) would not cover the anticipated operating 
        costs and replacement reserves of the development (or portion) 
        at full occupancy and the development (or portion) would 
        constitute a substantial burden on the resources of the local 
        housing and management authority;
            (5) retention of the development (or portion thereof) is 
        not in the best interests of the residents of the local housing 
        and management authority because--
                    (A) developmental changes in the area surrounding 
                the development adversely affect the health or safety 
                of the residents or the feasible operation of the 
                development by the local housing and management 
                authority;
                    (B) demolition or disposition will allow the 
                acquisition, development, or rehabilitation of other 
                properties which will be more efficiently or 
                effectively operated as low-income housing; or
                    (C) other factors exist that the authority 
                determines are consistent with the best interests of 
                the residents and the authority and not inconsistent 
                with other provisions of this Act;
            (6) in the case only of demolition or disposition of a 
        portion of a development, the demolition or disposition will 
        help to ensure the remaining useful life of the remainder of 
        the development; or
            (7) in the case only of property other than dwelling 
        units--
                    (A) the property is excess to the needs of a 
                development; or
                    (B) the demolition or disposition is incidental to, 
                or does not interfere with, continued operation of a 
                development.
    (d) Consultation.--A local housing and management authority may 
demolish or dispose of a public housing development (or portion of a 
development) only if the authority notifies and confers regarding the 
demolition or disposition with--
            (1) the residents of the development (or portion); and
            (2) appropriate local government officials.
    (e) Use of Proceeds.--Any net proceeds from the disposition of a 
public housing development (or portion of a development) shall be used 
for--
            (1) housing assistance for low-income families that is 
        consistent with the low-income housing needs of the community, 
        through acquisition, development, or rehabilitation of, or 
        homeownership programs for, other low-income housing or the 
        provision of choice-based assistance under title III for such 
        families;
            (2) supportive services relating to job training or child 
        care for residents of a development or developments; or
            (3) leveraging amounts for securing commercial enterprises, 
        on-site in public housing developments of the local housing and 
        management authority, appropriate to serve the needs of the 
        residents.
    (f) Relocation.--A local housing and management authority that 
demolishes or disposes of a public housing development (or portion of a 
development thereof) shall ensure that--
            (1) each family that is a resident of the development (or 
        portion) that is demolished or disposed of is relocated to 
        other safe, clean, healthy, and affordable housing, which is, 
        to the maximum extent practicable, housing of the family's 
        choice or is provided with choice-based assistance under title 
        III;
            (2) the local housing and management authority does not 
        take any action to dispose of any unit until any resident to be 
        displaced is relocated in accordance with paragraph (1); and
            (3) each resident family to be displaced is paid relocation 
        expenses, and the rent to be paid initially by the resident 
        following relocation does not exceed the amount permitted under 
        section 225(a).
    (g) Right of First Refusal for Resident Organizations and Resident 
Management Corporations.--
            (1) In general.--A local housing and management authority 
        may not dispose of a public housing development (or portion of 
        a development) unless the authority has, before such 
        disposition, offered to sell the property, as provided in this 
        subsection, to each resident organization and resident 
        management corporation operating at the development for 
        continued use as low-income housing, and no such organization 
        or corporation purchases the property pursuant to such offer. A 
        resident organization may act, for purposes of this subsection, 
        through an entity formed to facilitate homeownership under 
        subtitle D.
            (2) Timing.--Disposition of a development (or portion 
        thereof) under this section may not take place--
                    (A) before the expiration of the period during 
                which any such organization or corporation may notify 
                the authority of interest in purchasing the property, 
                which shall be the 30-day period beginning on the date 
                that the authority first provides notice of the 
                proposed disposition of the property to such resident 
                organizations and resident management corporations;
                    (B) if an organization or corporation submits 
                notice of interest in accordance with subparagraph (A), 
                before the expiration of the period during which such 
                organization or corporation may obtain a commitment for 
                financing to purchase the property, which shall be the 
                60-day period beginning upon the submission to the 
                authority of the notice of interest; or
                    (C) if, during the period under subparagraph (B), 
                an organization or corporation obtains such financing 
                commitment and makes a bona fide offer to the authority 
                to purchase the property for a price equal to or 
                exceeding the applicable offer price under paragraph 
                (3).
        The authority shall sell the property pursuant to any purchase 
        offer described in subparagraph (C).
            (3) Terms of offer.--An offer by a local housing and 
        management authority to sell a property in accordance with this 
        subsection shall involve a purchase price that reflects the 
        market value of the property, the reason for the sale, the 
        impact of the sale on the surrounding community, and any other 
        factors that the authority considers appropriate.
    (h) Information for Local Housing Management Plan.--A local housing 
and management authority may demolish or dispose of a public housing 
development (or portion thereof) only if it includes in the applicable 
local housing management plan information sufficient to describe--
            (1) the housing to be demolished or disposed of;
            (2) the purpose of the demolition or disposition under 
        subsection (c) and why the demolition or disposition complies 
        with the requirements under subsection (c);
            (3) how the consultations required under subsection (d) 
        will be made;
            (4) how the net proceeds of the disposition will be used in 
        accordance with subsection (e);
            (5) how the authority will relocate residents, if 
        necessary, as required under subsection (f); and
            (6) that the authority has offered the property for 
        acquisition by resident organizations and resident management 
        corporations in accordance with subsection (g).
    (i) Site and Neighborhood Standards Exemption.--Notwithstanding any 
other provision of law, a local housing and management authority may 
provide for development of public housing dwelling units on the same 
site or in the same neighborhood as any dwelling units demolished, 
pursuant to a plan under this section, but only if such development 
provides for significantly fewer dwelling units.
    (j) Treatment of Replacement Units.--In connection with any 
demolition or disposition of public housing under this section, a local 
housing and management authority may provide for other housing 
assistance for low-income families that is consistent with the low-
income housing needs of the community, including--
            (1) the provision of choice-based assistance under title 
        III; and
            (2) the development, acquisition, or lease by the authority 
        of dwelling units, which dwelling units shall--
                    (A) be eligible to receive assistance with grant 
                amounts provided under this title; and
                    (B) be made available for occupancy, operated, and 
                managed in the manner required for public housing, and 
                subject to the other requirements applicable to public 
                housing dwelling units.
    (k) Permissible Relocation Without Plan.--If a local housing and 
management authority determines that public housing dwelling units are 
not clean, safe, and healthy or cannot be maintained cost-effectively 
in a clean, safe, and healthy condition, the local housing and 
management authority may relocate residents of such dwelling units 
before the submission of a local housing management plan providing for 
demolition or disposition of such units.
    (l) Consolidation of Occupancy Within or Among Buildings.--Nothing 
in this section may be construed to prevent a local housing and 
management authority from consolidating occupancy within or among 
buildings of a public housing development, or among developments, or 
with other housing for the purpose of improving living conditions of, 
or providing more efficient services to, residents.
    (m) De Minimis Exception to Demolition Requirements.--
Notwithstanding any other provision of this section, in any 5-year 
period a local housing and management authority may demolish not more 
than the lesser of 5 dwelling units or 5 percent of the total dwelling 
units owned and operated by the local housing and management authority, 
without providing for such demolition in a local housing management 
plan, but only if the space occupied by the demolished unit is used for 
meeting the service or other needs of public housing residents or the 
demolished unit was beyond repair.

SEC. 262. DEMOLITION, SITE REVITALIZATION, REPLACEMENT HOUSING, AND 
              CHOICE-BASED ASSISTANCE GRANTS FOR DEVELOPMENTS.

    (a) Purposes.--The purpose of this section is to provide assistance 
to local housing and management authorities for the purposes of--
            (1) reducing the density and improving the living 
        environment for public housing residents of severely distressed 
        public housing developments through the demolition of obsolete 
        public housing developments (or portions thereof);
            (2) revitalizing sites (including remaining public housing 
        dwelling units) on which such public housing developments are 
        located and contributing to the improvement of the surrounding 
        neighborhood; and
            (3) providing housing that will avoid or decrease the 
        concentration of very low-income families; and
            (4) providing choice-based assistance in accordance with 
        title III for the purpose of providing replacement housing and 
        assisting residents to be displaced by the demolition.
    (b) Grant Authority.--The Secretary may make grants available to 
local housing and management authorities as provided in this section.
    (c) Contribution Requirement.--The Secretary may not make any grant 
under this section to any applicant unless the applicant certifies to 
the Secretary that the applicant will supplement the amount of 
assistance provided under this section with an amount of funds from 
sources other than this section equal to not less than 5 percent of the 
amount provided under this section, including amounts from other 
Federal sources, any State or local government sources, any private 
contributions, and the value of any in-kind services or administrative 
costs provided.
    (d) Eligible Activities.--Grants under this section may be used for 
activities to carry out revitalization programs for severely distressed 
public housing, including--
            (1) architectural and engineering work, including the 
        redesign, reconstruction, or redevelopment of a severely 
        distressed public housing development, including the site on 
        which the development is located;
            (2) the demolition, sale, or lease of the site, in whole or 
        in part;
            (3) covering the administrative costs of the applicant, 
        which may not exceed such portion of the assistance provided 
        under this section as the Secretary may prescribe;
            (4) payment of reasonable legal fees;
            (5) providing reasonable moving expenses for residents 
        displaced as a result of the revitalization of the development;
            (6) economic development activities that promote the 
        economic self-sufficiency of residents under the revitalization 
        program;
            (7) necessary management improvements;
            (8) leveraging other resources, including additional 
        housing resources, retail supportive services, jobs, and other 
        economic development uses on or near the development that will 
        benefit future residents of the site;
            (9) replacement housing and housing assistance under title 
        III;
            (10) transitional security activities; and
            (11) necessary supportive services, except that not more 
        than 10 percent of the amount of any grant may be used for 
        activities under this paragraph.
    (e) Application and Selection.--
            (1) Application.--An application for a grant under this 
        section shall contain such information and shall be submitted 
        at such time and in accordance with such procedures, as the 
        Secretary shall prescribe.
            (2) Selection criteria.--The Secretary shall establish 
        selection criteria for the award of grants under this section, 
        which shall include--
                    (A) the relationship of the grant to the local 
                housing management plan for the local housing and 
                management authority and how the grant will result in a 
                revitalized site that will enhance the neighborhood in 
                which the development is located;
                    (B) the capability and record of the applicant 
                local housing and management authority, or any 
                alternative management agency for the authority, for 
                managing large-scale redevelopment or modernization 
                projects, meeting construction timetables, and 
                obligating amounts in a timely manner;
                    (C) the extent to which the local housing and 
                management authority could undertake such activities 
                without a grant under this section;
                    (D) the extent of involvement of residents, State 
                and local governments, private service providers, 
                financing entities, and developers, in the development 
                of a revitalization program for the development; and
                    (E) the amount of funds and other resources to be 
                leveraged by the grant.
        The Secretary shall give preference in selection to any local 
        housing and management authority that has been awarded a 
        planning grant under section 24(c) of the United States Housing 
        Act of 1937 (as in effect before the date of the enactment of 
        this Act).
    (f) Cost Limits.--Subject to the provisions of this section, the 
Secretary--
            (1) shall establish cost limits on eligible activities 
        under this section sufficient to provide for effective 
        revitalization programs; and
            (2) may establish other cost limits on eligible activities 
        under this section.
    (h) Demolition and Replacement.--Any severely distressed public 
housing demolished or disposed of pursuant to a revitalization plan and 
any public housing produced in lieu of such severely distressed 
housing, shall be subject to the provisions of section 261.
    (i) Administration by Other Entities.--The Secretary may require a 
grantee under this section to make arrangements satisfactory to the 
Secretary for use of an entity other than the local housing and 
management authority to carry out activities assisted under the 
revitalization plan, if the Secretary determines that such action will 
help to effectuate the purposes of this section.
    (j) Withdrawal of Funding.--If a grantee under this section does 
not proceed expeditiously, in the determination of the Secretary, the 
Secretary shall withdraw any grant amounts under this section that have 
not been obligated by the local housing and management authority. The 
Secretary shall redistribute any withdrawn amounts to one or more local 
housing and management authorities eligible for assistance under this 
section or to one or more other entities capable of proceeding 
expeditiously in the same locality in carrying out the revitalization 
plan of the original grantee.
    (k) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Applicant.--The term ``applicant'' means--
                    (A) any local housing and management authority that 
                is not designated as troubled or dysfunctional pursuant 
                to section 431(a)(2);
                    (B) any local housing and management authority or 
                private housing management agent selected, or receiver 
                appointed pursuant, to section 438; and
                    (C) any local housing and management authority that 
                is designated as troubled pursuant to section 
                431(a)(2)(D) that--
                            (i) is so designated principally for 
                        reasons that will not affect the capacity of 
                        the authority to carry out a revitalization 
                        program;
                            (ii) is making substantial progress toward 
                        eliminating the deficiencies of the authority; 
                        or
                            (iii) is otherwise determined by the 
                        Secretary to be capable of carrying out a 
                        revitalization program.
            (2) Private nonprofit corporation.--The term ``private 
        nonprofit organization'' means any private nonprofit 
        organization (including a State or locally chartered nonprofit 
        organization) that--
                    (A) is incorporated under State or local law;
                    (B) has no part of its net earnings inuring to the 
                benefit of any member, founder, contributor, or 
                individual;
                    (C) complies with standards of financial 
                accountability acceptable to the Secretary; and
                    (D) has among its purposes significant activities 
                related to the provision of decent housing that is 
                affordable to very low-income families.
            (3) Severely distressed public housing.--The term 
        ``severely distressed public housing'' means a public housing 
        development (or building in a development)--
                    (A) that requires major redesign, reconstruction or 
                redevelopment, or partial or total demolition, to 
                correct serious deficiencies in the original design 
                (including inappropriately high population density), 
                deferred maintenance, physical deterioration or 
                obsolescence of major systems and other deficiencies in 
                the physical plant of the development;
                    (B) is a significant contributing factor to the 
                physical decline of and disinvestment by public and 
                private entities in the surrounding neighborhood;
                    (C)(i) is occupied predominantly by families who 
                are very low-income families with children, are 
                unemployed, and dependent on various forms of public 
                assistance; and
                    (ii) has high rates of vandalism and criminal 
                activity (including drug-related criminal activity) in 
                comparison to other housing in the area;
                    (D) cannot be revitalized through assistance under 
                other programs, such as the public housing block grant 
                program under this title, or the programs under 
                sections 9 and 14 of the United States Housing Act of 
                1937 (as in effect before the date of the enactment of 
                this Act), because of cost constraints and inadequacy 
                of available amounts; and
                    (E) in the case of individual buildings, the 
                building is, in the Secretary's determination, 
                sufficiently separable from the remainder of the 
                development of which the building is part to make use 
                of the building feasible for purposes of this section.
            (4) Supportive services.--The term ``supportive services'' 
        includes all activities that will promote upward mobility, 
        self-sufficiency, and improved quality of life for the 
        residents of the public housing development involved, including 
        literacy training, job training, day care, and economic 
        development activities.
    (l) Annual Report.--The Secretary shall submit to the Congress an 
annual report setting forth--
            (1) the number, type, and cost of public housing units 
        revitalized pursuant to this section;
            (2) the status of developments identified as severely 
        distressed public housing;
            (3) the amount and type of financial assistance provided 
        under and in conjunction with this section; and
            (4) the recommendations of the Secretary for statutory and 
        regulatory improvements to the program established by this 
        section.
    (m) Funding.--
            (1) Authorization of appropriations.--There are authorized 
        to be appropriated for grants under this section $480,000,000 
        for each of fiscal years 1996, 1997, and 1998.
            (2) Technical assistance.--Of the amount appropriated 
        pursuant to paragraph (1) for any fiscal year, the Secretary 
        may use not more than 0.50 percent for technical assistance. 
        Such assistance may be provided directly or indirectly by 
        grants, contracts, or cooperative agreements, and shall include 
        training, and the cost of necessary travel for participants in 
        such training, by or to officials of the Department of Housing 
        and Urban Development, of local housing and management 
        authorities, and of residents.
    (n) Sunset.--No assistance may be provided under this section after 
September 30, 1998.

SEC. 263. VOLUNTARY VOUCHER SYSTEM FOR PUBLIC HOUSING.

    (a) In General.--A local housing and management authority may 
convert any public housing development (or portion thereof) owned and 
operated by the authority to a system of choice-based rental housing 
assistance under title III, in accordance with this section.
    (b) Assessment and Plan Requirement.--In converting under this 
section to a choice-based rental housing assistance system, the local 
housing and management authority shall develop a conversion assessment 
and plan under this subsection, in consultation with the appropriate 
public officials and with significant participation by the residents of 
the development (or portion thereof), which assessment and plan shall--
            (1) be consistent with and part of the local housing 
        management plan for the authority;
            (2) describe the conversion and future use or disposition 
        of the public housing development, including an impact analysis 
        on the affected community;
            (3) include a cost analysis that demonstrates whether or 
        not the cost (both on a net present value basis and in terms of 
        new budget authority requirements) of providing choice-based 
        rental housing assistance under title III for the same families 
        in substantially similar dwellings over the same period of time 
        is less expensive than continuing public housing assistance in 
        the public housing development proposed for conversion for the 
        remaining useful life of the development; and
            (4) identify the actions, if any, that the local housing 
        and management authority will take with regard to converting 
        any public housing development or developments (or portions 
        thereof) of the authority to a system of choice-based rental 
        housing assistance under title III.
    (c) Streamlined Assessment and Plan.--At the discretion of the 
Secretary or at the request of a local housing and management 
authority, the Secretary may waive any or all of the requirements of 
subsection (b) or otherwise require a streamlined assessment with 
respect to any public housing development or class of public housing 
developments.
    (d) Implementation of Conversion Plan.--
            (1) In general.--A local housing and management authority 
        may implement a conversion plan only if the conversion 
        assessment under this section demonstrates that the 
        conversion--
                    (A) will not be more expensive than continuing to 
                operate the public housing development (or portion 
                thereof) as public housing; and
                    (B) will principally benefit the residents of the 
                public housing development (or portion thereof) to be 
                converted, the local housing and management authority, 
                and the community.
            (2) Disapproval.--The Secretary shall disapprove a 
        conversion plan only if the plan is plainly inconsistent with 
        the conversion assessment under subsection (b) or there is 
        reliable information and data available to the Secretary that 
        contradicts that conversion assessment.
    (e) Other Requirements.--To the extent approved by the Secretary, 
the funds used by the local housing and management authority to provide 
choice-based rental housing assistance under title III shall be added 
to the housing assistance payment contract administered by the local 
housing and management authority or any entity administering the 
contract on behalf of the local housing and management authority.
    (f) Savings Provision.--This section does not affect any contract 
or other agreement entered into under section 22 of the United States 
Housing Act of 1937 (as such section existed immediately before the 
enactment of this Act).

                     Subtitle F--General Provisions

SEC. 271. CONVERSION TO BLOCK GRANT ASSISTANCE.

    (a) Savings Provisions.--Any amounts made available to a public 
housing agency for assistance for public housing pursuant to the United 
States Housing Act of 1937 (or any other provision of law relating to 
assistance for public housing) under an appropriation for fiscal year 
1996 or any previous fiscal year shall be subject to the provisions of 
such Act as in effect before the enactment of this Act, notwithstanding 
the repeals made by this Act, except to the extent the Secretary 
provides otherwise to provide for the conversion of public housing and 
public housing assistance to the system provided under this Act.
    (b) Modifications.--Notwithstanding any provision of this Act or 
any annual contributions contract or other agreement entered into by 
the Secretary and a public housing agency pursuant to the provisions of 
the United States Housing Act of 1937 (as in effect before the 
enactment of this Act), the Secretary and the agency may by mutual 
consent amend, supersede, modify any such agreement as appropriate to 
provide for assistance under this title, except that the Secretary and 
the agency may not consent to any such amendment, supersession, or 
modification that substantially alters any outstanding obligations 
requiring continued maintenance of the low-income character of any 
public housing development and any such amendment, supersession, or 
modification shall not be given effect.

SEC. 272. PAYMENT OF NON-FEDERAL SHARE.

    Rental or use-value of buildings or facilities paid for, in whole 
or in part, from production, modernization, or operation costs financed 
under this title may be used as the non-Federal share required in 
connection with activities undertaken under Federal grant-in-aid 
programs which provide social, educational, employment, and other 
services to the residents in a project assisted under this title.

SEC. 273. DEFINITIONS.

    For purposes of this title, the following definitions shall apply:
            (1) Acquisition cost.--The term ``acquisition cost'' means 
        the amount prudently expended by a local housing and management 
        authority in acquiring property for a public housing 
        development.
            (2) Development.--The terms ``public housing development'' 
        and ``development'' mean--
                    (A) public housing; and
                    (B) the improvement of any such housing.
            (3) Eligible local housing and management authority.--The 
        term ``eligible local housing and management authority'' means, 
        with respect to a fiscal year, a local housing and management 
        authority that is eligible under section 202(d) for a grant 
        under this title.
            (4) Group home and independent living facility.--The terms 
        ``group home'' and ``independent living facility'' have the 
        meanings given such terms in section 811(k) of the Cranston-
        Gonzalez National Affordable Housing Act.
            (5) Operation.--The term ``operation'' means any or all 
        undertakings appropriate for management, operation, services, 
        maintenance, security (including the cost of security 
        personnel), or financing in connection with a public housing 
        development, including the financing of resident programs and 
        services.
            (6) Production.--The term ``production'' means any or all 
        undertakings necessary for planning, land acquisition, 
        financing, demolition, construction, or equipment, in 
        connection with the construction, acquisition, or 
        rehabilitation of a property for use as a public housing 
        development, including activity in connection with a public 
        housing development that is confined to the reconstruction, 
        remodeling, or repair of existing buildings.
            (7) Production cost.--The term ``production cost'' means 
        the costs incurred by a local housing and management authority 
        for production of public housing and the necessary financing 
        for production (including the payment of carrying charges and 
        acquisition costs).
            (8) Resident council.--The term ``resident council'' means 
        an organization or association that meets the requirements of 
        section 234(a).
            (9) Resident management corporation.--The term ``resident 
        management corporation'' means a corporation that meets the 
        requirements of section 234(b).
            (10) Resident program.--The term ``resident programs and 
        services'' means programs and services for families residing in 
        public housing developments. Such term includes (A) the 
        development and maintenance of resident organizations which 
        participate in the management of public housing developments, 
        (B) the training of residents to manage and operate the public 
        housing development and the utilization of their services in 
        management and operation of the development, (C) counseling on 
        household management, housekeeping, budgeting, money 
        management, homeownership issues, child care, and similar 
        matters, (D) advice regarding resources for job training and 
        placement, education, welfare, health, and other community 
        services, (E) services that are directly related to meeting 
        resident needs and providing a wholesome living environment; 
        and (F) referral to appropriate agencies in the community when 
        necessary for the provision of such services. To the maximum 
        extent available and appropriate, existing public and private 
        agencies in the community shall be used for the provision of 
        such services.

SEC. 274. AUTHORIZATION OF APPROPRIATIONS FOR BLOCK GRANTS.

    There are authorized to be appropriated for grants under this 
title, the following amounts:
            (1) Capital Fund.--For the allocations from the capital 
        fund for grants, $2,500,000,000 for each of fiscal years 1997, 
        1998, 1999, and 2000; and
            (2) Operating Fund.--For the allocations from the operating 
        fund for grants, $2,800,000,000 for each of fiscal years 1997, 
        1998, 1999, and 2000.

SEC. 275. AUTHORIZATION OF APPROPRIATIONS FOR OPERATION SAFE HOME.

    There is authorized to be appropriated, for assistance for 
relocating residents of public housing under the operation safe home 
program of the Department of Housing and Urban Development (including 
assistance for costs of relocation and housing assistance under title 
III), $700,000 for each of fiscal years 1996, 1997, 1998, 1999, and 
2000. The Secretary shall provide that families who are residing in 
public housing, who have been subject to domestic violence, and for 
whom provision of assistance is likely to reduce or eliminate the 
threat of subsequent violence to the members of the family, shall be 
eligible for assistance under the operation safe home program.

TITLE III--CHOICE-BASED RENTAL HOUSING AND HOMEOWNERSHIP ASSISTANCE FOR 
                          LOW-INCOME FAMILIES

                         Subtitle A--Allocation

SEC. 301. AUTHORITY TO PROVIDE HOUSING ASSISTANCE AMOUNTS.

    To the extent that amounts to carry out this title are made 
available, the Secretary may enter into contracts with local housing 
and management authorities for each fiscal year to provide housing 
assistance under this title.

SEC. 302. CONTRACTS WITH LHMA'S.

    (a) Condition of Assistance.--The Secretary may provide amounts 
under this title to a local housing and management authority for a 
fiscal year only if the Secretary has entered into a contract under 
this section with the local housing and management authority, under 
which the Secretary shall provide such authority with amounts (in the 
amount of the allocation for the authority determined pursuant to 
section 304) for housing assistance under this title for low-income 
families.
    (b) Use for Housing Assistance.--A contract under this section 
shall require a local housing and management authority to use amounts 
provided under this title to provide housing assistance in any manner 
authorized under this title.
    (c) Annual Obligation of Authority.--A contract under this title 
shall provide amounts for housing assistance for 1 fiscal year covered 
by the contract.
    (d) Enforcement of Housing Quality Requirements.--Each contract 
under this section shall require the local housing and management 
authority administering assistance provided under the contract--
            (1) to ensure compliance, under each housing assistance 
        payments contract entered into pursuant to the contract under 
        this section, with the provisions of the housing assistance 
        payments contract included pursuant to section 351(c)(4); and
            (2) to establish procedures for assisted families to notify 
        the authority of any noncompliance with such provisions.

SEC. 303. ELIGIBILITY OF LHMA'S FOR ASSISTANCE AMOUNTS.

    The Secretary may provide amounts available for housing assistance 
under this title pursuant to the formula established under section 
304(a) to a local housing and management authority only if--
            (1) the authority has submitted a local housing management 
        plan to the Secretary for such fiscal year and applied to the 
        Secretary for such assistance;
            (2) the plan has been determined to comply with the 
        requirements under section 107 and the Secretary has not 
        notified the authority that the plan fails to comply with such 
        requirements;
            (3) the authority is accredited under section 433 by the 
        Housing Foundation and Accreditation Board;
            (4) no member of the board of directors or other governing 
        body of the authority, or the executive director, has been 
        convicted of a felony; and
            (5) the authority has not been disqualified for assistance 
        pursuant to subtitle B of title IV.

SEC. 304. ALLOCATION OF AMOUNTS.

    (a) Formula Allocation.--
            (1) In general.--When amounts for assistance under this 
        title are first made available for reservation, after reserving 
        amounts in accordance with subsections (b)(3) and (c), and 
        section 112, the Secretary shall allocate such amounts, only 
        among local housing and management authorities meeting the 
        requirements under this title to receive such assistance, on 
        the basis of a formula that is established in accordance with 
        paragraph (2) and based upon appropriate criteria to reflect 
        the needs of different States, areas, and communities, using 
        the most recent data available from the Bureau of the Census of 
        the Department of Commerce and the comprehensive housing 
        affordability strategy under section 105 of the Cranston-
        Gonzalez National Affordable Housing Act (or any consolidated 
        plan incorporating such strategy) for the applicable 
        jurisdiction. The Secretary may establish a minimum allocation 
        amount, in which case only the local housing and management 
        authorities that, pursuant to the formula, are provided an 
        amount equal to or greater than the minimum allocation amount, 
        shall receive an allocation.
            (2) Regulations.--The formula under this subsection shall 
        be established by regulation issued by the Secretary. 
        Notwithstanding sections 563(a) and 565(a) of title 5, United 
        States Code, any proposed regulation containing such formula 
        shall be issued pursuant to a negotiated rulemaking procedure 
        under subchapter of chapter 5 of such title and the Secretary 
        shall establish a negotiated rulemaking committee for 
        development of any such proposed regulations.
    (b) Allocation Considerations.--
            (1) Limitation on reallocation for another state.--Any 
        amounts allocated for a State or areas or communities within a 
        State that are not likely to be used within the fiscal year for 
        which the amounts are provided shall not be reallocated for use 
        in another State, unless the Secretary determines that other 
        areas or communities within the same State (that are eligible 
        for amounts under this title) cannot use the amounts within the 
        same fiscal year.
            (2) Effect of receipt of tenant-based assistance for 
        disabled families.--The Secretary may not consider the receipt 
        by a local housing and management authority of assistance under 
        section 811(b)(1) of the Cranston-Gonzalez National Affordable 
        Housing Act, or the amount received, in approving amounts under 
        this title for the authority or in determining the amount of 
        such assistance to be provided to the authority.
            (3) Exemption from formula allocation.--The formula 
        allocation requirements of subsection (a) shall not apply to 
        any assistance under this title that is approved in 
        appropriation Acts for uses that the Secretary determines are 
        incapable of geographic allocation, including funding for the 
        headquarters reserve fund under section 112, amendments of 
        existing housing assistance payments contracts, renewal of such 
        contracts, assistance to families that would otherwise lose 
        assistance due to the decision of the project owner to prepay 
        the project mortgage or not to renew the housing assistance 
        payments contract, assistance to prevent displacement from 
        public or assisted housing or to provide replacement housing in 
        connection with the demolition or disposition of public 
        housing, assistance for relocation from public housing, 
        assistance in connection with protection of crime witnesses, 
        assistance for conversion from leased housing contracts under 
        section 23 of the United States Housing Act of 1937 (as in 
        effect before the enactment of the Housing and Community 
        Development Act of 1974), and assistance in support of the 
        property disposition and portfolio management functions of the 
        Secretary.
    (c) Recapture of Amounts.--
            (1) Authority.--In each fiscal year, from any budget 
        authority made available for assistance under this title or 
        section 8 of the United States Housing Act of 1937 (as in 
        effect before the enactment of this Act) that is obligated to a 
        local housing and management authority but remains unobligated 
        by the authority upon the expiration of the 8-month period 
        beginning upon the initial availability of such amounts for 
        obligation by the authority, the Secretary may deobligate an 
        amount, as determined by the Secretary, not exceeding 50 
        percent of such unobligated amount.
            (2) Use.--The Secretary may reallocate and transfer any 
        amounts deobligated under paragraph (1) only to local housing 
        and management authorities in areas that the Secretary 
        determines have received less funding than other areas, based 
        on the relative needs of all areas.

SEC. 305. ADMINISTRATIVE FEES.

    (a) Fee for Ongoing Costs of Administration.--
            (1) In general.--The Secretary shall establish fees for the 
        costs of administering the choice-based housing assistance 
        program under this title.
            (2) Fiscal year 1996.--
                    (A) Calculation.--For fiscal year 1996, the fee for 
                each month for which a dwelling unit is covered by a 
                contract for assistance under this title shall be--
                            (i) in the case of a local housing and 
                        management authority that, on an annual basis, 
                        is administering a program for not more than 
                        600 dwelling units, 7.65 percent of the base 
                        amount; and
                            (ii) in the case of an authority that, on 
                        an annual basis, is administering a program for 
                        more than 600 dwelling units--
                                    (I) for the first 600 units, 7.65 
                                percent of the base amount; and
                                    (II) for any additional dwelling 
                                units under the program, 7.0 percent of 
                                the base amount.
                    (B) Base amount.--For purposes of this paragraph, 
                the base amount shall be the higher of--
                            (i) the fair market rental established 
                        under section 8(c) of the United States Housing 
                        Act of 1937 (as in effect immediately before 
                        the date of the enactment of this Act) for 
                        fiscal year 1993 for a 2-bedroom existing 
                        rental dwelling unit in the market area of the 
                        authority, and
                            (ii) the amount that is the lesser of (I) 
                        such fair market rental for fiscal year 1994 or 
                        (II) 103.5 percent of the amount determined 
                        under clause (i),
                adjusted based on changes in wage data or other 
                objectively measurable data that reflect the costs of 
                administering the program, as determined by the 
                Secretary. The Secretary may require that the base 
                amount be not less than a minimum amount and not more 
                than a maximum amount.
            (3) Subsequent fiscal years.--For subsequent fiscal years, 
        the Secretary shall publish a notice in the Federal Register, 
        for each geographic area, establishing the amount of the fee 
        that would apply for local housing and management authorities 
        administering the program, based on changes in wage data or 
        other objectively measurable data that reflect the costs of 
        administering the program, as determined by the Secretary.
            (4) Increase.--The Secretary may increase the fee if 
        necessary to reflect the higher costs of administering small 
        programs and programs operating over large geographic areas.
    (b) Fee for Preliminary Expenses.--The Secretary shall also 
establish reasonable fees (as determined by the Secretary) for--
            (1) the costs of preliminary expenses, in the amount of 
        $500, for a local housing and management authority, but only in 
        the first year that the authority administers a choice-based 
        housing assistance program under this title, and only if, 
        immediately before the date of the enactment of this Act, the 
        authority was not administering a tenant-based rental 
        assistance program under the United States Housing Act of 1937 
        (as in effect immediately before such date of enactment), in 
        connection with its initial increment of assistance received;
            (2) the costs incurred in assisting families who experience 
        difficulty (as determined by the Secretary) in obtaining 
        appropriate housing under the programs; and
            (3) extraordinary costs approved by the Secretary.
    (c) Transfer of Fees in Cases of Concurrent Geographical 
Jurisdiction.--
            (1) In general.--In each fiscal year, if any local housing 
        and management authority provides tenant-based rental 
        assistance under section 8 of the United States Housing Act of 
        1937 or housing assistance under this title on behalf of a 
        family who uses such assistance for a dwelling unit that is 
        located within the jurisdiction of such authority but is also 
        within the jurisdiction of another local housing and management 
        authority, the Secretary shall take such steps as may be 
        necessary to ensure that the local housing and management 
        authority that provides the services for a family receives all 
        or part of the administrative fee under this section (as 
        appropriate).

SEC. 306. AUTHORIZATIONS OF APPROPRIATIONS.

    (a) In General.--There is authorized to be appropriated for 
providing local housing and management authorities with housing 
assistance under this title, $1,861,668,000 for each of fiscal years 
1996, 1997, 1998, 1999, and 2000.
    (b) Assistance for Disabled Families.--
            (1) Authorization of appropriations.--There is authorized 
        to be appropriated, for choice-based housing assistance under 
        this title to be used in accordance with paragraph (2), 
        $50,000,000 for fiscal year 1997, and such sums as may be 
        necessary for each subsequent fiscal year.
            (2) Use.--The Secretary shall provide amounts made 
        available under paragraph (1) to local housing and management 
        authorities only for use to provide housing assistance under 
        this title for nonelderly disabled families (including such 
        families relocating pursuant to designation of a public housing 
        development under section 227 and other nonelderly disabled 
        families who have applied to the authority for housing 
        assistance under this title).
            (3) Allocation of amounts.--The Secretary shall allocate 
        and provide amounts made available under paragraph (1) to local 
        housing and management authorities as the Secretary determines 
        appropriate based on the relative levels of need among the 
        authorities for assistance for families described in paragraph 
        (1).

SEC. 307. CONVERSION OF SECTION 8 ASSISTANCE.

    (a) In General.--Any amounts made available to a local housing and 
management authority under a contract for annual contributions for 
assistance under section 8 of the United States Housing Act of 1937 (as 
in effect before the enactment of this Act) that have not been 
obligated for such assistance by such authority before such enactment 
shall be used to provide assistance under this title, except to the 
extent the Secretary determines such use is inconsistent with existing 
commitments.
    (b) Exception.--Subsection (a) shall not apply to any amounts made 
available under a contract for housing constructed or substantially 
rehabilitated pursuant to section 8(b)(2) of the United States Housing 
Act of 1937, as in effect before October 1, 1983.

   Subtitle B--Choice-Based Housing Assistance for Eligible Families

SEC. 321. ELIGIBLE FAMILIES AND PREFERENCES FOR ASSISTANCE.

    (a) Low-Income Requirement.--Housing assistance under this title 
may be provided only on behalf of a family that--
            (1) at the time that such assistance is initially provided 
        on behalf of the family, is determined by the local housing and 
        management authority to be a low-income family; or
            (2) qualifies to receive such assistance under any other 
        provision of Federal law.
    (b) Income Targeting.--Of the families initially assisted under 
this title by a local housing and management authority in any year, not 
less than 50 percent shall be families whose incomes do not exceed 60 
percent of the area median income, as determined by the Secretary with 
adjustments for smaller and larger families. The Secretary may 
establish income ceiling higher or lower than 30 percent of the area 
median income on the basis of the Secretary's findings that such 
variations are necessary because of unusually high or low family 
incomes.
    (c) Income Targeting.--Of the families initially assisted under 
this title by a local housing and management authority in any year, not 
less than 40 percent shall be families whose incomes do not exceed 30 
percent of the area median income, as determined by the Secretary with 
adjustments for smaller and larger families. The Secretary may 
establish income ceiling higher or lower than 30 percent of the area 
median income on the basis of the Secretary's findings that such 
variations are necessary because of unusually high or low family 
incomes.
    (d) Reviews of Family Incomes.--
            (1) In general.--Reviews of family incomes for purposes of 
        this title shall be subject to the provisions of section 904 of 
        the Stewart B. McKinney Homeless Assistance Amendments Act of 
        1988 and shall be conducted upon the initial provision of 
        housing assistance for the family and thereafter not less than 
        annually.
            (2) Procedures.--Each local housing and management 
        authority administering housing assistance under this title 
        shall establish procedures that are appropriate and necessary 
        to ensure that income data provided to the authority and owners 
        by families applying for or receiving housing assistance from 
        the authority is complete and accurate.
    (e) Preferences for Assistance.--
            (1) Authority to establish.--Any local housing and 
        management authority that receives amounts under this title may 
        establish a system for making housing assistance available on 
        behalf of eligible families that provides preference for such 
        assistance to eligible families having certain characteristics.
            (2) Content.--Each system of preferences established 
        pursuant to this subsection shall be based upon local housing 
        needs and priorities, as determined by the local housing and 
        management authority using generally accepted data sources, 
        including any information obtained pursuant to an opportunity 
        for public comment as provided under section 107(e) or under 
        the requirements applicable to comprehensive housing 
        affordability strategy for the relevant jurisdiction.
    (f) Portability of Housing Assistance.--
            (1) National portability.--An eligible family that is 
        selected to receive or is receiving assistance under this title 
        may rent any eligible dwelling unit in any area where a program 
        is being administered under this title. Notwithstanding the 
        preceding sentence, a local housing and management authority 
        may require that any family not living within the jurisdiction 
        of the local housing and management authority at the time the 
        family applies for assistance from the authority shall, during 
        the 12-month period beginning on the date of initial receipt of 
        housing assistance made available on behalf of the family from 
        that authority, lease and occupy an eligible dwelling unit 
        located within the jurisdiction served by the authority. The 
        authority for the jurisdiction into which the family moves 
        shall have the responsibility for administering assistance for 
        the family.
            (2) Source of funding for a family that moves.--For a 
        family that has moved into the jurisdiction of a local housing 
        and management authority and that, at the time of the move, has 
        been selected to receive, or is receiving, assistance provided 
        by another authority, the authority for the jurisdiction into 
        which the family has moved may, in its discretion, cover the 
        cost of assisting the family under its contract with the 
        Secretary or through reimbursement from the other authority 
        under that authority's contract.
            (3) Authority to deny assistance to certain families who 
        move.--A family may not receive housing assistance as provided 
        under this subsection if the family has moved from a dwelling 
        unit in violation of the lease for the dwelling unit.
            (4) Funding allocations.--In providing assistance amounts 
        under this title for local housing and management authorities 
        for any fiscal year, the Secretary may give consideration to 
        any reduction or increase in the number of resident families 
        under the program of an authority in the preceding fiscal year 
        as a result of this subsection.
    (g) Loss of Assistance Upon Termination of Tenancy.--A local 
housing and management authority shall, consistent with the policies 
described in the local housing management plan of the authority, 
establish policies providing that an assisted family whose tenancy is 
terminated for serious violations of the terms or conditions of the 
lease shall--
            (1) lose any right to continued housing assistance; and
            (2) immediately become ineligible for housing assistance 
        under this title or for admission to public housing under title 
        II--
                    (A) in the case of a termination due to drug-
                related criminal activity, for a period of not less 
                than 3 years from the date of the termination; and
                    (B) for other terminations, for a reasonable period 
                of time as determined by the local housing and 
                management authority.
    (h) Confidentiality for Victims of Domestic Violence.--A local 
housing and management authority shall be subject to the restrictions 
regarding release of information relating to the identity and new 
residence of any family receiving housing assistance who was a victim 
of domestic violence that are applicable to shelters pursuant to the 
Family Violence Prevention and Services Act. The authority shall work 
with the United States Postal Service to establish procedures 
consistent with the confidentiality provisions in the Violence Against 
Women Act of 1994.
    (i) Denial of Assistance to Criminal Offenders.--In making 
assistance under this title available on behalf of eligible families, a 
local housing and management authority may deny the provision of such 
assistance in the same manner, for the same period, and subject to the 
same conditions that an owner of federally assisted housing may deny 
occupancy in such housing under subsections (b) and (c) of section 642 
of the Housing and Community Development Act of 1992.
    (j) Availability of Criminal Records.--A local housing and 
management authority may request and obtain records regarding the 
criminal convictions of applicants for housing assistance under this 
title and assisted families under this title to the same extent an 
owner of federally assisted housing may obtain such records regarding 
an applicant for or tenant of federally assisted housing under section 
646 of the Housing and Community Development Act of 1992.

SEC. 322. RESIDENT CONTRIBUTION.

    (a) Amount.--
            (1) In general.--An assisted family shall contribute on a 
        monthly basis for the rental of an assisted dwelling unit an 
        amount that the local housing and management authority 
        determines is appropriate with respect to the family and the 
        unit, but shall not be less than the minimum monthly rental 
        contribution determined under subsection (d).
            (2) Exceptions for certain current residents.--
        Notwithstanding paragraph (1), the amount paid by an assisted 
        family for monthly rent for an assisted dwelling unit, may not 
        exceed 30 percent of the family's adjusted monthly income for 
        any family who--
                    (A) upon the date of the enactment of this Act, is 
                an assisted family and--
                            (i) is an elderly family; or
                            (ii) is a disabled family; or
                    (B) has an income that does not exceed 30 percent 
                of the median income for the area (as determined by the 
                Secretary with adjustments for smaller and larger 
                families).
        Any amount payable under paragraph (3) shall be in addition to 
        the amount payable under this paragraph.
            (3) Excess rental amount.--In any case in which the monthly 
        rent charged for a dwelling unit pursuant to the housing 
        assistance payments contract exceeds the applicable payment 
        standard (established under section 353) for the dwelling unit, 
        the assisted family residing in the unit shall contribute (in 
        addition to the amount of the monthly rent contribution 
        otherwise determined under paragraph (1) or (2) of this 
        subsection for such family) such entire excess rental amount.
    (b) Limitation.--Notwithstanding any other provision of this 
section, the amount paid by an assisted family that is an elderly 
family or a disabled family, for monthly rent for an assisted dwelling 
unit bearing a gross rent that does not exceed the payment standard 
established under section 353 for a dwelling unit of the applicable 
size and located in the market area in which such assisted dwelling 
unit is located, may not exceed 30 percent of the family's adjusted 
monthly income.
    (c) Limitation.--Notwithstanding any other provision of this 
section, the amount paid by an assisted family whose head (or whose 
spouse) is a veteran (as such term is defined in section 203(b) of the 
National Housing Act) for monthly rent for an assisted dwelling unit 
bearing a gross rent that does not exceed the payment standard 
established under section 353 for a dwelling unit of the applicable 
size and located in the market area in which such assisted dwelling 
unit is located may not exceed 30 percent of the family's adjusted 
monthly income.
    (d) Minimum Monthly Rental Contribution.--
            (1) In General.--The local housing and management authority 
        shall determine the amount of the minimum monthly rental 
        contribution of an assisted family (which rent shall include 
        any amount allowed for utilities), which--
                    (A) shall be based upon factors including the 
                adjusted income of the family and any other factors 
                that the authority considers appropriate;
                    (B) shall be not less than $25, nor more than $50; 
                and
                    (C) may be increased annually by the authority, 
                except that no such annual increase may exceed 10 
                percent of the amount of the minimum monthly 
                contribution in effect for the preceding year.
            (2) Hardship exception.--Notwithstanding paragraph (1), a 
        local housing and management authority may, in its sole 
        discretion, grant an exemption in whole or in part from payment 
        of the minimum monthly rental contribution established under 
        this paragraph to any assisted family unable to pay such amount 
        because of severe financial hardships. Severe financial 
        hardships may include situations where the family is awaiting 
        an eligibility determination for a Federal, State, or local 
        assistance program, where the family would be evicted as a 
        result of imposition of the minimum rent, and other situations 
        as may be determined by the authority.
    (e) Treatment of Changes in Rental Contribution.--
            (1) Notification of changes.--A local housing and 
        management authority shall promptly notify the owner of an 
        assisted dwelling unit of any change in the resident 
        contribution by the assisted family residing in the unit that 
        takes effect immediately or at a later date.
            (2) Collection of retroactive changes.--In the case of any 
        change in the rental contribution of an assisted family that 
        affects rental payments previously made, the local housing and 
        management authority shall collect any additional amounts 
        required to be paid by the family under such change directly 
        from the family and shall refund any excess rental contribution 
        paid by the family directly to the family.
    (f) Phase-In of Rent Contribution Increases.--
            (1) In general.--Except as provided in paragraph (2), for 
        any family that is receiving tenant-based rental assistance 
        under section 8 of the United States Housing Act of 1937 upon 
        the initial applicability of the provisions of this title to 
        such family, if the monthly contribution for rental of an 
        assisted dwelling unit to be paid by the family upon such 
        initial applicability is greater than the amount paid by the 
        family under the provisions of the United States Housing Act of 
        1937 immediately before such applicability, any such resulting 
        increase in rent contribution shall be--
                    (A) phased in equally over a period of not less 
                than 3 years, if such increase is 30 percent or more of 
                such contribution before initial applicability; and
                    (B) limited to not more than 10 percent per year if 
                such increase is more than 10 percent but less than 30 
                percent of such contribution before initial 
                applicability.
            (2) Exception.--The minimum rent contribution requirement 
        under subsection (d)(1)(B) shall apply to each family described 
        in paragraph (1) of this subsection, notwithstanding such 
        paragraph.

SEC. 323. RENTAL INDICATORS.

    (a) In General.--The Secretary shall establish and issue rental 
indicators under this section periodically, but not less than annually, 
for existing rental dwelling units that are eligible dwelling units. 
The Secretary shall establish and issue the rental indicators by 
housing market area (as the Secretary shall establish) for various 
sizes and types of dwelling units.
    (b) Amount.--For a market area, the rental indicator established 
under subsection (a) for a dwelling unit of a particular size and type 
in the market area shall be a dollar amount that reflects the rental 
amount for a standard quality rental unit of such size and type in the 
market area that is an eligible dwelling unit.
    (c) Effective Date.--The Secretary shall cause the proposed rental 
indicators established under subsection (a) for each market area to be 
published in the Federal Register with reasonable time for public 
comment, and such rental indicators shall become effective upon the 
date of publication in final form in the Federal Register.
    (d) Annual Adjustment.--Each rental indicator in effect under this 
section shall be adjusted to be effective on October 1 of each year to 
reflect changes, based on the most recent available data trended so 
that the indicators will be current for the year to which they apply, 
in rents for existing rental dwelling units of various sizes and types 
in the market area suitable for occupancy by families assisted under 
this title.

SEC. 324. LEASE TERMS.

    Rental assistance may be provided for an eligible dwelling unit 
only if the assisted family and the owner of the dwelling unit enter 
into a lease for the unit that--
            (1) provides for a single lease term of 12 months and 
        continued tenancy after such term under a periodic tenancy on a 
        month-to-month basis;
            (2) contains terms and conditions specifying that 
        termination of tenancy during the term of a lease shall be 
        subject to the provisions set forth in section 325; and
            (3) is set forth in the standard form, which is used in the 
        local housing market area by the owner and applies generally to 
        any other tenants in the property who are not assisted 
        families, together with any addendum necessary to include the 
        many terms required under this section.
A lease may include any addenda appropriate to set forth the provisions 
under this title.

SEC. 325. TERMINATION OF TENANCY.

    (a) General Grounds for Termination of Tenancy.--Each housing 
assistance payments contract under section 351 shall provide that the 
owner of any assisted dwelling unit assisted under the contract may, 
before expiration of a lease for a unit, terminate the tenancy of any 
tenant of the unit, but only for--
            (1) violation of the terms and conditions of the lease, 
        violation of applicable Federal, State, or local law, or other 
        good cause; or
            (2) any activity, engaged in by the tenant, any member of 
        the tenant's household, or any guest or other person under the 
        tenant's control, that--
                    (A) threatens the health or safety of, or right to 
                peaceful enjoyment of the premises by, other tenants or 
                employees of the owner or manager of the housing;
                    (B) threatens the health or safety of, or right to 
                peaceful enjoyment of their residences by, persons 
                residing in the immediate vicinity of the premises; or
                    (C) is criminal activity (including drug-related 
                criminal activity) on or off such premises.
    (b) Manner of Termination.--Each housing assistance payments 
contract shall provide that the owner shall conduct the termination of 
tenancy of any tenant of an assisted dwelling unit under the contract 
in accordance with applicable State or local laws, including providing 
any notice of termination required under such laws.

SEC. 326. ELIGIBLE OWNERS.

    (a) Ownership Entity.--Rental assistance under this title may be 
provided for any eligible dwelling unit for which the owner is any 
public agency, private person or entity (including a cooperative), 
nonprofit organization, agency of the Federal Government, or local 
housing and management authority.
    (b) Ineligible Owners.--
            (1) In general.--Notwithstanding subsection (a), a local 
        housing and management authority--
                    (A) may not enter into a housing assistance 
                payments contract (or renew an existing contract) 
                covering a dwelling unit that is owned by an owner who 
                is debarred, suspended, or subject to limited denial of 
                participation under part 24 of title 24, Code of 
                Federal Regulations;
                    (B) may prohibit, or authorize the termination or 
                suspension of, payment of housing assistance under a 
                housing assistance payments contract in effect at the 
                time such debarment, suspension, or limited denial of 
                participation takes effect.
        If the local housing and management authority takes action 
        under subparagraph (B), the authority shall take such actions 
        as may be necessary to protect assisted families who are 
        affected by the action, which may include the provision of 
        additional assistance under this title to such families.
            (2) Prohibition of sale to related parties.--The Secretary 
        shall establish guidelines to prevent housing assistance 
        payments for a dwelling unit that is owned by any spouse, 
        child, or other party who allows an owner described in 
        paragraph (1) to maintain control of the unit.

SEC. 327. SELECTION OF DWELLING UNITS.

    (a) Family Choice.--The determination of the dwelling unit in which 
an assisted family resides and for which housing assistance is provided 
under this title shall be made solely by the assisted family, subject 
to the provisions of this title and any applicable law.
    (b) Deed Restrictions.--Housing assistance may not be used in any 
manner that abrogates any local deed restriction that applies to any 
housing consisting of 1 to 4 dwelling units. Nothing in this section 
may be construed to affect the provisions or applicability of the Fair 
Housing Act.

SEC. 328. ELIGIBLE DWELLING UNITS.

    (a) In General.--A dwelling unit shall be an eligible dwelling unit 
for purposes of this title only if the local housing and management 
authority to provide housing assistance for the dwelling unit 
determines that the dwelling unit--
            (1) is an existing dwelling unit that is not located within 
        a nursing home or the grounds of any penal, reformatory, 
        medical, mental, or similar public or private institution; and
            (2) complies--
                    (A) with applicable State or local laws, 
                regulations, standards, or codes regarding habitability 
                of residential dwellings that--
                            (i) are in effect for the jurisdiction in 
                        which the dwelling unit is located;
                            (ii) provide protection to residents of the 
                        dwellings that is equal to or greater than the 
                        protection provided under the housing quality 
                        standards established under subsection (b); and
                            (iii) that do not severely restrict housing 
                        choice; or
                    (B) in the case of a dwelling unit located in a 
                jurisdiction which does not have in effect laws, 
                regulations, standards, or codes described in 
                subparagraph (A), with the housing quality standards 
                established under subsection (c).
Each local housing and management authority providing housing 
assistance shall identify, in the local housing management plan for the 
authority, whether the authority is utilizing the standard under 
subparagraph (A) or (B) of paragraph (2) and, if the authority utilizes 
the standard under subparagraph (A), shall certify in such plan that 
the applicable State or local laws, regulations, standards, or codes 
comply with the requirements under such subparagraph.
    (b) Determinations.--
            (1) In general.--A local housing and management authority 
        shall make the determinations required under subsection (a) 
        pursuant to an inspection of the dwelling unit conducted before 
        any assistance payment is made for the unit.
            (2) Expeditious inspection.--Inspections of dwelling units 
        under this subsection shall be made before the expiration of 
        the 15-day period beginning upon a request by the resident or 
        landlord to the local housing and management authority. The 
        performance of the authority in meeting the 15-day inspection 
        deadline shall be taken into account in assessing the 
        performance of the authority.
    (c) Federal Housing Quality Standards.--The Secretary shall 
establish housing quality standards under this subsection that ensure 
that assisted dwelling units are safe, clean, and healthy. Such 
standards shall include requirements relating to habitability, 
including maintenance, health and sanitation factors, condition, and 
construction of dwellings, and shall, to the greatest extent 
practicable, be consistent with the standards established under section 
232(b). The Secretary shall differentiate between major and minor 
violations of such standards.
    (d) Annual Inspections.--Each local housing and management 
authority providing housing assistance shall make an annual inspection 
of each assisted dwelling unit during the term of the housing 
assistance payments contracts for the unit to determine whether the 
unit is maintained in accordance with the requirements under subsection 
(a)(2). The authority shall retain the records of the inspection for a 
reasonable time and shall make the records available upon request to 
the Secretary and the Inspector General for the Department of Housing 
and Urban Development, the Housing Foundation and Accreditation Board 
established under title IV, and any auditor conducting an audit under 
section 432.
    (e) Inspection Guidelines.--The Secretary shall establish 
procedural guidelines and performance standards to facilitate 
inspections of dwelling units and conform such inspections with 
practices utilized in the private housing market. Such guidelines and 
standards shall take into consideration variations in local laws and 
practices of local housing and management authorities and shall provide 
flexibility to authorities appropriate to facilitate efficient 
provision of assistance under this title.
    (f) Rule of Construction.--This section may not be construed to 
prevent the provision of housing assistance in connection with 
supportive services for elderly or disabled families.

SEC. 329. HOMEOWNERSHIP OPTION.

    (a) In General.--A local housing and management authority providing 
housing assistance under this title may provide homeownership 
assistance to assist eligible families to purchase a dwelling unit 
(including purchase under lease-purchase homeownership plans).
    (b) Requirements.--A local housing and management authority 
providing homeownership assistance under this section shall, as a 
condition of an eligible family receiving such assistance, require the 
family to--
            (1) demonstrate that the family has sufficient income from 
        employment or other sources (other than public assistance), as 
        determined in accordance with requirements established by the 
        authority; and
            (2) meet any other initial or continuing requirements 
        established by the local housing and management authority.
    (c) Downpayment Requirement.--
            (1) In general.--A local housing and management authority 
        may establish minimum downpayment requirements, if appropriate, 
        in connection with loans made for the purchase of dwelling 
        units for which homeownership assistance is provided under this 
        section. If the authority establishes a minimum downpayment 
        requirement, except as provided in paragraph (2) the authority 
        shall permit the family to use grant amounts, gifts from 
        relatives, contributions from private sources, and similar 
        amounts as downpayment amounts in such purchase.
            (2) Direct family contribution.--In purchasing housing 
        pursuant to this section subject to a downpayment requirement, 
        each family shall contribute an amount of the downpayment, from 
        resources of the family other than grants, gifts, 
        contributions, or other similar amounts referred to in 
        paragraph (1), that is not less than 1 percent of the purchase 
        price.
    (d) Ineligibility Under Other Programs.--A family may not receive 
homeownership assistance pursuant to this section during any period 
when assistance is being provided for the family under other Federal 
homeownership assistance programs, as determined by the Secretary, 
including assistance under the HOME Investment Partnerships Act, the 
Homeownership and Opportunity Through HOPE Act, title II of the Housing 
and Community Development Act of 1987, and section 502 of the Housing 
Act of 1949.

SEC. 330. ASSISTANCE FOR RENTAL OF MANUFACTURED HOMES.

    (a) Authority.--Nothing in this title may be construed to prevent a 
local housing and management authority from providing housing 
assistance under this title on behalf of a low-income family for the 
rental of--
            (1) a manufactured home that is the principal residence of 
        the family and the real property on which the home is located; 
        or
            (2) the real property on which is located a manufactured 
        home, which is owned by the family and is the principal 
        residence of the family.
    (b) Assistance for Certain Families Owning Manufactured Homes.--
            (1) Authority.--Notwithstanding section 351 or any other 
        provision of this title, a local housing and management 
        authority that receives amounts under a contract under section 
        302 may enter into a housing assistance payment contract to 
        make assistance payments under this title to a family that owns 
        a manufactured home, but only as provided in paragraph (2).
            (2) Limitations.--In the case only of a low-income family 
        that owns a manufactured home, rents the real property on which 
        it is located, and to whom housing assistance under this title 
        has been made available for the rental of such property, the 
        local housing and management authority making such assistance 
        available shall enter into a contract to make housing 
        assistance payments under this title directly to the family 
        (rather than to the owner of such real property) if--
            (1) the owner of the real property refuses to enter into a 
        contract to receive housing assistance payments pursuant to 
        section 351(a);
            (2) the family was residing in such manufactured home on 
        such real property at the time such housing assistance was 
        initially made available on behalf of the family;
            (3) the family provides such assurances to the agency, as 
        the Secretary may require, to ensure that amounts from the 
        housing assistance payments are used for rental of the real 
        property; and
            (4) the rental of the real property otherwise complies with 
        the requirements for assistance under this title.
        A contract pursuant to this subsection shall be subject to the 
        provisions of section 351 and any other provisions applicable 
        to housing assistance payments contracts under this title, 
        except that the Secretary may provide such exceptions as the 
        Secretary considers appropriate to facilitate the provision of 
        assistance under this subsection.

    Subtitle C--Payment of Housing Assistance on Behalf of Assisted 
                                Families

SEC. 351. HOUSING ASSISTANCE PAYMENTS CONTRACTS.

    (a) In General.--Each local housing and management authority that 
receives amounts under a contract under section 302 may enter into 
housing assistance payments contracts with owners of existing dwelling 
units to make housing assistance payments to such owners in accordance 
with this title.
    (b) LHMA Acting As Owner.--A local housing and management authority 
may enter into a housing assistance payments contract to make housing 
assistance payments under this title to itself (or any agency or 
instrumentality thereof) as the owner of dwelling units (other than 
public housing), and the authority shall be subject to the same 
requirements that are applicable to other owners, except that the 
determinations under section 328(a) and 354(b) shall be made by a 
competent party not affiliated with the authority, and the authority 
shall be responsible for any expenses of such determinations.
    (c) Provisions.--Each housing assistance payments contract shall--
            (1) have a term of not more than 12 months;
            (2) require that the assisted dwelling unit may be rented 
        only pursuant to a lease that complies with the requirements of 
        section 324;
            (3) comply with the requirements of section 325 (relating 
        to termination of tenancy);
            (4) require the owner to maintain the dwelling unit in 
        accordance with the applicable standards under section 
        328(a)(2); and
            (5) provide that the screening and selection of eligible 
        families for assisted dwelling units shall be the function of 
        the owner.

SEC. 352. AMOUNT OF MONTHLY ASSISTANCE PAYMENT.

    (a) Units Having Gross Rent Exceeding Payment Standard.--In the 
case of a dwelling unit bearing a gross rent that exceeds the payment 
standard established under section 353 for a dwelling unit of the 
applicable size and located in the market area in which such assisted 
dwelling unit is located--
            (1) the amount by which such payment standard exceeds the 
        amount of the resident contribution determined in accordance 
        with section 322(a)(1);
            (2) in the case only of families described in paragraph (2) 
        of section 322(a), the amount by which such payment standard 
        exceeds the lesser of the resident contribution determined in 
        accordance with section 322(a)(1) or 30 percent of the family's 
        adjusted monthly income;
            (3) in the case of an assisted family that is an elderly 
        family or a disabled family, the amount of the monthly 
        assistance payment shall be the amount by which such payment 
        standard exceeds the lesser of the amount of the resident 
        contribution determined in accordance with section 322 or 30 
        percent of the family's adjusted monthly income; or
            (4) in the case of a family whose head (or whose spouse) is 
        a veteran (as such term is defined in section 203(b) of the 
        National Housing Act), the lesser of the amount of such 
        resident contribution or 30 percent of the family's adjusted 
        monthly income.
    (b) Shopping Incentive for Units Having Gross Rent Not Exceeding 
Payment Standard.--In the case of an assisted family renting an 
eligible dwelling unit bearing a gross rent that does not exceed the 
payment standard established under section 353 for a dwelling unit of 
the applicable size and located in the market area in which such 
assisted dwelling unit is located, the following requirements shall 
apply:
            (1) Amount of monthly assistance payment.--The amount of 
        the monthly assistance payment for housing assistance under 
        this title on behalf of the assisted family shall be the amount 
        by which the gross rent for the dwelling unit exceeds the 
        amount of the resident contribution.
            (2) Escrow of shopping incentive savings.--An amount equal 
        to 50 percent of the difference between payment standard and 
        the gross rent for the dwelling unit shall be placed in an 
        interest bearing escrow account on behalf of such family on a 
        monthly basis by the local housing and management authority. 
        Amounts in the escrow account shall be made available to the 
        assisted family on an annual basis.
            (3) Deficit reduction.--The local housing and management 
        authority making housing assistance payments on behalf of such 
        assisted family in a fiscal year shall reserve from amounts 
        made available to the authority for assistance payments for 
        such fiscal year an amount equal to the amount described in 
        paragraph (2). At the end of each fiscal year, the Secretary 
        shall recapture any such amounts reserved by local housing and 
        management authorities and such amounts shall be covered into 
        the General Fund of the Treasury of the United States.
For purposes of this section, in the case of a family receiving 
homeownership assistance under section 329, the term ``gross rent'' 
shall mean the homeownership costs to the family as determined in 
accordance with guidelines of the Secretary.

SEC. 353. PAYMENT STANDARDS.

    (a) Establishment.--Each local housing and management authority 
providing housing assistance under this title shall establish payment 
standards under this section for various areas, and sizes and types of 
dwelling units, for use in determining the amount of monthly housing 
assistance payment to be provided on behalf of assisted families.
    (b) Use of Rental Indicators.--The payment standard for each size 
and type of housing for each market area shall be an amount that is not 
less than 80 percent, and not greater than 120 percent, of the rental 
indicator established under section 323 for such size and type for such 
area.
    (c) Review.--If the Secretary determines, at any time, that a 
significant percentage of the assisted families who are assisted by a 
local housing and management authority and are occupying dwelling units 
of a particular size are paying more than 30 percent of their adjusted 
incomes for rent, the Secretary shall review the payment standard 
established by the authority for such size dwellings. If, pursuant to 
the review, the Secretary determines that such payment standard is not 
appropriate to serve the needs of the low-income population of the 
jurisdiction served by the authority (taking into consideration rental 
costs in the area), as identified in the approved community improvement 
plan of the authority, the Secretary may require the local housing and 
management authority to modify the payment standard.

SEC. 354. REASONABLE RENTS.

    (a) Establishment.--The rent charged for a dwelling unit for which 
rental assistance is provided under this title shall be established 
pursuant to negotiation and agreement between the assisted family and 
the owner of the dwelling unit.
    (b) Reasonableness.--
            (1) Determination.--A local housing and management 
        authority providing rental assistance under this title for a 
        dwelling unit shall, before commencing assistance payments for 
        a unit (with respect to initial contract rents and any rent 
        revisions), determine whether the rent charged for the unit 
        exceeds the rents charged for comparable units in the 
        applicable private unassisted market.
            (2) Unreasonable rents.--If the authority determines that 
        the rent charged for a dwelling unit exceeds such comparable 
        rents, the authority shall--
                    (A) inform the assisted family renting the unit 
                that such rent exceeds the rents for comparable 
                unassisted units in the market; and
                    (B) refuse to provide housing assistance payments 
                for such unit.

SEC. 355. PROHIBITION OF ASSISTANCE FOR VACANT RENTAL UNITS.

    If an assisted family vacates a dwelling unit for which rental 
assistance is provided under a housing assistance payments contract 
before the expiration of the term of the lease for the unit, rental 
assistance pursuant to such contract may not be provided for the unit 
after the month during which the unit was vacated.

            Subtitle D--General and Miscellaneous Provisions

SEC. 371. DEFINITIONS.

    For purposes of this title:
            (1) Assisted dwelling unit.--The term ``assisted dwelling 
        unit'' means a dwelling unit in which an assisted family 
        resides and for which housing assistance payments are made 
        under this title.
            (2) Assisted family.--The term ``assisted family'' means an 
        eligible family on whose behalf housing assistance payments are 
        made under this title or who has been selected and approved for 
        housing assistance.
            (3) Choice-based.--The term ``choice-based'' means, with 
        respect to housing assistance, that the assistance is not 
        attached to a dwelling unit but can be used for any eligible 
        dwelling unit selected by the eligible family.
            (4) Eligible dwelling unit.--The term ``eligible dwelling 
        unit'' means a dwelling unit that complies with the 
        requirements under section 328 for consideration as an eligible 
        dwelling unit.
            (5) Eligible family.--The term ``eligible family'' means a 
        family that meets the requirements under section 321(a) for 
        assistance under this title.
            (6) Homeownership assistance.--The term ``homeownership 
        assistance'' means housing assistance provided under section 
        329 for the ownership of a dwelling unit.
            (7) Housing assistance.--The term ``housing assistance'' 
        means assistance provided under this title on behalf of low-
        income families for the rental or ownership of an eligible 
        dwelling unit.
            (8) Housing assistance payments contract.--The term 
        ``housing assistance payments contract'' means a contract under 
        section 351 between a local housing and management authority 
        (or the Secretary) and an owner to make housing assistance 
        payments under this title to the owner on behalf of an assisted 
        family.
            (9) Local housing and management authority.--The terms 
        ``local housing and management authority'' and ``authority'' 
        have the meaning given such terms in section 103, except that 
        the terms include--
                    (A) a consortia of local housing and management 
                authorities that the Secretary determines has the 
                capacity and capability to administer a program for 
                housing assistance under this title in an efficient 
                manner;
                    (B) any other entity that, upon the date of the 
                enactment of this Act, was administering any program 
                for tenant-based rental assistance under section 8 of 
                the United States Housing Act of 1937 (as in effect 
                before the enactment of this Act), pursuant to a 
                contract with the Secretary or a public housing agency; 
                and
                    (C) with respect to any area in which no local 
                housing and management authority has been organized or 
                where the Secretary determines that a local housing and 
                management authority is unwilling or unable to 
                implement this title, or is not performing 
                effectively--
                            (i) the Secretary or another entity that by 
                        contract agrees to receive assistance amounts 
                        under this title and enter into housing 
                        assistance payments contracts with owners and 
                        perform the other functions of local housing 
                        and management authority under this title; or
                            (ii) notwithstanding any provision of State 
                        or local law, a local housing and management 
                        authority for another area that contracts with 
                        the Secretary to administer a program for 
                        housing assistance under this title, without 
                        regard to any otherwise applicable limitations 
                        on its area of operation.
            (10) Owner.--The term ``owner'' means the person or entity 
        having the legal right to lease or sublease dwelling units. 
        Such term includes any principals, general partners, primary 
        shareholders, and other similar participants in any entity 
        owning a multifamily housing project, as well as the entity 
        itself.
            (11) Rent.--The terms ``rent'' and ``rental'' include, with 
        respect to members of a cooperative, the charges under the 
        occupancy agreements between such members and the cooperative.
            (12) Rental assistance.--The term ``rental assistance'' 
        means housing assistance provided under this title for the 
        rental of a dwelling unit.

SEC. 372. RENTAL ASSISTANCE FRAUD RECOVERIES.

    (a) Authority To Retain Recovered Amounts.--The Secretary shall 
permit local housing and management authorities administering housing 
assistance under this title to retain, out of amounts obtained by the 
authorities from tenants that are due as a result of fraud and abuse, 
an amount (determined in accordance with regulations issued by the 
Secretary) equal to the greater of--
            (1) 50 percent of the amount actually collected; or
            (2) the actual, reasonable, and necessary expenses related 
        to the collection, including costs of investigation, legal 
        fees, and collection agency fees.
    (b) Use.--Amounts retained by an authority shall be made available 
for use in support of the affected program or project, in accordance 
with regulations issued by the Secretary. If the Secretary is the 
principal party initiating or sustaining an action to recover amounts 
from families or owners, the provisions of this section shall not 
apply.
    (c) Recovery.--Amounts may be recovered under this section--
            (1) by an authority through a lawsuit (including settlement 
        of the lawsuit) brought by the authority or through court-
        ordered restitution pursuant to a criminal proceeding resulting 
        from an authority's investigation where the authority seeks 
        prosecution of a family or where an authority seeks prosecution 
        of an owner;
            (2) through administrative repayment agreements with a 
        family or owner entered into as a result of an administrative 
        grievance procedure conducted by an impartial decisionmaker in 
        accordance with section 111; or
            (3) through an agreement between the parties.

SEC. 373. STUDY REGARDING GEOGRAPHIC CONCENTRATION OF ASSISTED 
              FAMILIES.

    (a) In General.--The Secretary shall conduct a study of the 
geographic areas in the State of Illinois served by the Housing 
Authority of Cook County and the Chicago Housing Authority and submit 
to the Congress a report and a specific proposal, which addresses and 
resolves the issues of--
            (1) the adverse impact on local communities due to 
        geographic concentration of assisted households under the 
        tenant-based housing programs under section 8 of the United 
        States Housing Act of 1937 (as in effect immediately before the 
        enactment of this Act) and under this title; and
            (2) facilitating the deconcentration of such assisted 
        households by providing broader housing choices to such 
        households.
The study shall be completed, and the report shall be submitted, not 
later than 90 days after the date of the enactment of this Act.
    (b) Concentration.--For purposes of this section, the term 
``concentration'' means, with respect to any area within a census 
tract, that--
            (1) 15 percent or more of the households residing within 
        such area have incomes which do not exceed the poverty level; 
        or
            (2) 15 percent or more of the total affordable housing 
        stock located within such area is assisted housing.

 TITLE IV--ACCREDITATION AND OVERSIGHT OF LOCAL HOUSING AND MANAGEMENT 
                              AUTHORITIES

         Subtitle A--Housing Foundation and Accreditation Board

SEC. 401. ESTABLISHMENT.

    There is established an independent agency in the executive branch 
of the Government to be known as the Housing Foundation and 
Accreditation Board (in this title referred to as the ``Board'').

SEC. 402. MEMBERSHIP.

    (a) In General.--The Board shall be composed of 12 members 
appointed by the President not later than 180 days after the date of 
the enactment of this Act, as follows:
            (1) 4 members shall be appointed from among 10 individuals 
        recommended by the Secretary of Housing and Urban Development.
            (2) 4 members shall be appointed from among 10 individuals 
        recommended by the Chairman and Ranking Minority Member of the 
        Committee on Banking, Housing, and Urban Affairs of the Senate.
            (3) 4 members appointed from among 10 individuals 
        recommended by the Chairman and Ranking Minority Member of the 
        Committee on Banking and Financial Services of the House of 
        Representatives.
    (b) Qualifications.--
            (1) Required representation.--The Board shall at all times 
        have the following members:
                    (A) 2 members who are residents of public housing 
                or dwelling units assisted under title III of this Act 
                or the provisions of section 8 of the United States 
                Housing Act of 1937 (as in effect before the enactment 
                of this Act).
                    (B) at least 2, but not more than 4 members who are 
                executive directors of local housing and management 
                authorities.
                    (C) 1 member who is a member of the Institute of 
                Real Estate Managers.
                    (D) 1 member who is the owner of a multifamily 
                housing project assisted under a program administered 
                by the Secretary of Housing and Urban Development.
            (2) Required experience.--The Board shall at all times have 
        as members individuals with the following experience:
                    (A) At least 1 individual who has extensive 
                experience in the residential real estate finance 
                business.
                    (B) At least 1 individual who has extensive 
                experience in operating a nonprofit organization that 
                provides affordable housing.
                    (C) At least 1 individual who has extensive 
                experience in construction of multifamily housing.
                    (D) At least 1 individual who has extensive 
                experience in the management of a community development 
                corporation.
                    (E) At least 1 individual who has extensive 
                experience in auditing participants in government 
                programs.
        A single member of the board with the appropriate experience 
        may satisfy the requirements of more than 1 subparagraph of 
        this paragraph. A single member of the board with the 
        appropriate qualifications and experience may satisfy the 
        requirements of a subparagraph of paragraph (1) and a 
        subparagraph of this paragraph.
    (c) Political Affiliation.--Not more than 6 members of the Board 
may be of the same political party.
    (d) Terms.--
            (1) In general.--Each member of the Board shall be 
        appointed for a term of 4 years, except as provided in 
        paragraphs (2) and (3).
            (2) Terms of initial appointees.--As designated by the 
        President at the time of appointment, of the members first 
        appointed--
                    (A) 3 shall be appointed for terms of 1 year;
                    (B) 3 shall be appointed for terms of 2 years;
                    (C) 3 shall be appointed for terms of 3 years; and
                    (D) 3 shall be appointed for terms of 4 years;
            (3) Vacancies.--Any member appointed to fill a vacancy 
        occurring before the expiration of the term for which the 
        member's predecessor was appointed shall be appointed only for 
        the remainder of that term. A member may serve after the 
        expiration of that member's term until a successor has taken 
        office. A vacancy in the Board shall be filled in the manner in 
        which the original appointment was made.
    (e) Chairperson.--The Board shall elect a chairperson from among 
members of the Board.
    (f) Quorum.--A majority of the members of the Board shall 
constitute a quorum for the transaction of business.
    (g) Voting.--Each member of the Board shall be entitled to 1 vote, 
which shall be equal to the vote of every other member of the Board.
    (h) Prohibition on Additional Pay.--Members of the Board shall 
serve without compensation, but shall be reimbursed for travel, 
subsistence, and other necessary expenses incurred in the performance 
of their duties as members of the Board.

SEC. 403. FUNCTIONS.

    The purpose of this subtitle is to establish the Board as a 
nonpolitical entity to carry out the following functions:
            (1) Evaluation of deep subsidy programs.--Measuring the 
        performance and efficiency of all ``deep subsidy'' programs for 
        housing assistance administered by the Secretary of Housing and 
        Urban Development, including the public housing program under 
        title II and the programs for tenant- and project-based rental 
        assistance under title III and section 8 of the United States 
        Housing Act of 1937 (as in effect before the enactment of this 
        Act).
            (2) Establishment of lhma performance benchmarks.--
        Establishing standards and guidelines under section 431 for use 
        by the Secretary in measuring the performance and efficiency of 
        local housing and management authorities and other owners and 
        providers of federally assisted housing in carrying out 
        operational and financial functions.
            (3) Improvement of independent audits.--Providing for the 
        development of effective means for conducting comprehensive 
        financial and performance audits of local housing and 
        management authorities under section 432 and, to the extent 
        provided in such section, providing for the conducting of such 
        audits.
            (4) Accreditation of lhma's.--Establishing a procedure 
        under section 431(b) for accrediting local housing and 
        management authorities to receive block grants under title II 
        for the operation, maintenance, and production of public 
        housing and amounts for housing assistance under title III, 
        ensuring that financial and performance audits under section 
        432 are conducted annually for each local housing and 
        management authority, and reviewing such audits for purposes of 
        accreditation.
            (5) Classification of lhma's.--Classifying local housing 
        and management authorities, under to section 434, according to 
        the performance categories under section 431(a)(2).

SEC. 404. INITIAL ESTABLISHMENT OF STANDARDS AND PROCEDURES FOR LHMA 
              COMPLIANCE.

    (a) Deadline.--Not later than the expiration of the 12-month period 
beginning upon the completion of the appointment, under section 402, of 
the initial members of the Board, the Board shall organize its 
structure and operations, establish the standards, guidelines, and 
procedures under sections 431, and establish any fees under section 
406. Before issuing such standards, guidelines, and procedures in final 
form, the Board shall submit a copy to the Congress.
    (b) Priority of Initial Evaluations.--After organization of the 
Board and establishment of standards, guidelines, and procedures under 
sections 431, the Board shall commence evaluations under section 433(b) 
for the purpose of accrediting local housing and management authorities 
and shall give priority to conducting evaluations of local housing and 
management authorities that are designated as troubled public housing 
agencies under section 6(j) of the United States Housing Act of 1937 
(as in effect before the date of the enactment of this Act) pursuant to 
section 431(d).
    (c) Assistance From National Center for Housing Management.--
            (1) In general.--During the period referred to in 
        subsection (a), the National Center for Housing Management 
        established by Executive Order 11668 (42 U.S.C. 3531 note) 
        shall, to the extent agreed to by the Center, provide the Board 
        with ongoing assistance and advice relating to the following 
        matters:
                    (A) Organizing the structure of the Board and its 
                operations.
                    (B) Establishing performance standards and 
                guidelines under section 431(a).
        Such Center may, at the request of the Board, provide 
        assistance and advice with respect to matters not described in 
        paragraphs (1) and (2) and after the expiration of the period 
        referred to in subsection (a).
            (2) Assistance.--The assistance provided by such Center 
        shall include staff and logistical support for the Board and 
        such operational and managerial activities as are necessary to 
        assist the Board to carry out its functions during the period 
        referred to in subsection (a).

SEC. 405. POWERS.

    (a) Hearings.--The Board may, for the purpose of carrying out this 
subtitle, hold such hearings and sit and act at such times and places 
as the Board determines appropriate.
    (b) Rules and Regulations.--The Board may adopt such rules and 
regulations as may be necessary to establish its procedures and to 
govern the manner of its operations, organization, and personnel.
    (c) Assistance From Federal Agencies.--
            (1) Information.--The Board may secure directly from any 
        department or agency of the Federal Government such information 
as the Board may require for carrying out its functions, including 
local housing management plans submitted to the Secretary by local 
housing and management authorities under title II. Upon request of the 
Board, any such department or agency shall furnish such information. 
The Board may acquire information directly from local housing and 
management authorities to the same extent the Secretary may acquire 
such information.
            (2) General services administration.--The Administrator of 
        General Services shall provide to the Board, on a reimbursable 
        basis, such administrative support services as the Board may 
        request.
            (3) Department of housing and urban development.--Upon the 
        request of the chairperson of the Board, the Secretary of 
        Housing and Urban Development shall, to the extent possible and 
        subject to the discretion of the Secretary, detail any of the 
        personnel of the Department of Housing and Urban Development, 
        on a nonreimbursable basis, to assist the Board in carrying out 
        its functions under this subtitle.
            (4) HUD inspector general.--The Inspector General of the 
        Department of Housing and Urban Development shall serve the 
        Board as a principal adviser with respect to all aspects of 
        annual financial and performance audits of local housing and 
        management authorities under section 432. The Inspector General 
        may advise the Board with respect to other activities and 
        functions of the Board.
    (d) Mails.--The Board may use the United States mails in the same 
manner and under the same conditions as other Federal agencies.
    (e) Contracting.--The Board may, to such extent and in such amounts 
as are provided in appropriation Acts, enter into contracts with 
private firms, institutions, and individuals for the purpose of 
conducting evaluations under section 404(b), audits of local housing 
and management authorities as provided under section 432, research, and 
surveys necessary to enable the Board to discharge its functions under 
this subtitle, and may enter into contracts with the National Center 
for Housing Management to conduct the functions assigned to the Center 
under this title.
    (f) Staff.--
            (1) Executive director.--The Board shall appoint an 
        executive director of the Board, who shall be compensated at a 
        rate fixed by the Board, but which shall not exceed the rate 
        established for level V of the Executive Schedule under title 
        5, United States Code.
            (2) Other personnel.--In addition to the executive 
        director, the Board may appoint and fix the compensation of 
        such personnel as the Board considers necessary, in accordance 
        with the provisions of title 5, United States Code, governing 
        appointments to the competitive service, and the provisions of 
        chapter 51 and subchapter III of chapter 53 of such title, 
        relating to classification and General Schedule pay rates. Such 
        personnel may include personnel for assessment teams under 
        section 431(b).

SEC. 406. FEES.

    (a) Accreditation Fees.--The Board may establish and charge fees 
for the accreditation of local housing and management authorities as 
the Board considers necessary to cover the costs of the operations of 
the Board relating to establishing standards, guidelines, and 
procedures for evaluating the performance of local housing and 
management authorities, performing comprehensive reviews relating to 
the accreditation of such authorities, and conducting audits of 
authorities under section 432.
    (b) Fund.--Any fees collected under this section shall be deposited 
in an operations fund for the Board, which is hereby established in the 
Treasury of the United States. Amounts in such fund shall be available, 
to the extent provided in appropriation Acts, for the expenses of the 
Board in carrying out its functions under this subtitle.

SEC. 407. REPORTS.

    (a) Report on Coordination With HUD Functions.--Not later than the 
expiration of the 12-month period beginning upon the date of the 
enactment of this Act, the Board shall submit a report to the Congress 
that--
            (1) identifies and describes the processes, procedures, and 
        activities of the Department of Housing and Urban Development 
        which may duplicate functions of the Board, and makes 
        recommendations regarding activities of the Department that may 
        no longer be necessary as a result of improved auditing of 
        authorities pursuant to this title;
            (2) makes recommendations for any changes to Federal law 
        necessary to improve auditing of local housing and management 
        authorities; and
            (3) makes recommendations regarding the review and 
        evaluation functions currently performed by the Department of 
        Housing and Urban Development that may be more efficiently 
        performed by the Board and should be performed by the Board, 
        and those that should continue to be performed by the 
        Department.
    (b) Annual Reports.--The Board shall submit a report to the 
Congress annually describing, for the year for which the report is 
made--
            (1) any modifications made by the Board to the standards, 
        guidelines, and procedures issued under section 431 by the 
        Board;
            (2) the results of the assessments, reviews, and 
        evaluations conducted by the Board under subtitle B;
            (3) the types and extent of assistance, information, and 
        products provided by the Board; and
            (4) any other activities of the Board.

SEC. 408. GAO AUDIT.

    The activities and transactions of the Board shall be subject to 
audit by the Comptroller General of the United States under such rules 
and regulations as may be prescribed by the Comptroller General. The 
representatives of the General Accounting Office shall have access for 
the purpose of audit and examination to any books, documents, papers, 
and records of the Board that are necessary to facilitate an audit.

    Subtitle B--Accreditation and Oversight Standards and Procedures

SEC. 431. ESTABLISHMENT OF PERFORMANCE BENCHMARKS AND ACCREDITATION 
              PROCEDURES.

    (a) Performance Benchmarks.--
            (1) Performance areas.--The Housing Foundation and 
        Accreditation Board established under section 401 (in this 
        subtitle referred to as the ``Board'') shall establish 
        standards and guidelines, for use under section 434, to measure 
        the performance of local housing and management authorities in 
        all aspects relating to--
                    (A) operational and financial functions;
                    (B) providing, maintaining, and assisting low-
                income housing--
                            (i) that is safe, clean, and healthy, as 
                        required under sections 232 and 328;
                            (ii) in a manner consistent with the 
                        comprehensive housing affordability strategy 
                        under section 105 of the Cranston-Gonzalez 
                        National Affordable Housing Act, if 
                        appropriate;
                            (iii) that is occupied by eligible 
                        families; and
                            (iv) that is affordable to eligible 
                        families;
                    (C) producing low-income housing and executing 
                capital projects, if applicable;
                    (D) administering the provision of housing 
                assistance under title III;
                    (E) accomplishing the goals and plans set forth in 
                the local housing management plan for the authority;
                    (F) promoting responsibility and self-sufficiency 
                among residents of public housing developments of the 
                authority and assisted families under title III; and
                    (G) complying with the other requirements of the 
                authority under block grant contracts under title II, 
                grant agreements under title III, and the provisions of 
                this Act.
            (2) Performance categories.--In establishing standards and 
        guidelines under this section, the Board shall define various 
        levels of performance, which shall include the following 
        levels:
                    (A) Exceptionally well-managed.--A minimum 
                acceptable level of performance in the areas specified 
                in paragraph (1) for classification of a local housing 
                and management authority as exceptionally well-managed, 
                which shall indicate that the authority functions 
                exceptionally.
                    (B) Well-managed.--A minimum acceptable level of 
                performance in the areas specified in paragraph (1) for 
                classification of a local housing and management 
                authority as well-managed, which shall indicate that 
                the authority functions satisfactorily.
                    (C) At risk of becoming troubled.--A minimum 
                acceptable level of performance in the areas specified 
                in paragraph (1) for classification of a local housing 
                and management authority as at risk of becoming 
                troubled, which shall indicate that there are elements 
                in the operations, management, or functioning of the 
                authority that must be addressed before they result in 
                serious and complicated deficiencies.
                    (D) Troubled.--A minimum level of performance in 
                the areas specified in paragraph (1) for classification 
                of a local housing and management authority as a 
                troubled authority, which shall indicate that the 
                authority functions unsatisfactorily with respect to 
                certain areas under paragraph (1), but such 
                deficiencies are not irreparable.
                    (E) Dysfunctional.--A maximum level of performance 
                in the areas specified in paragraph (1) for 
                classification of a local housing and management 
                authority as dysfunctional, which shall indicate that 
                the authority suffers such deficiencies that the 
                authority should not be allowed to continue to manage 
                low-income housing or administer housing assistance.
            (3) Accreditation standard.--In establishing standards and 
        guidelines under this section, the Board shall establish a 
        minimum acceptable level of performance for accrediting a local 
        housing and management authority for purposes of authorizing 
        the authority to enter into a new block grant contract under 
        title II or a new grant agreement under title III.
    (b) Accreditation Procedure.--The Accreditation Board shall 
establish procedures for--
            (1) reviewing the performance of a local housing and 
        management authority over the term of the expiring 
        accreditation, which review shall be conducted during the 12-
        month period that ends upon the conclusion of the term of the 
        expiring accreditation;
            (2) evaluating the capability of a local housing and 
        management authority that proposes to enter into an initial 
        block grant contract under title II or an initial grant 
        agreement under title III; and
            (3) determining whether the authority complies with the 
        standards and guidelines for accreditation established under 
        subsection (a)(3).
The procedures for a review or evaluation under this subsection shall 
provide for the review or evaluation to be conducted by an assessment 
team established by the Board, which shall review annual financial and 
performance audits conducted under section 432 and obtain such 
information as the Board may require.
    (c) Identification of Potential Problems.--The standards and 
guidelines under subsection (a) and the procedure under subsection (b) 
shall be established in a manner designed to identify potential 
problems in the operations, management, functioning of local housing 
and management authorities at a time before such problems result in 
serious and complicated deficiencies.
    (d) Interim Applicability of PHMAP.--Notwithstanding any other 
provision of this subtitle, during the period that begins on the date 
of the enactment of this Act and ends upon the date of the 
effectiveness of final regulations establishing the standards, 
guidelines, and procedures required under this section and section 432, 
the Secretary shall assess the management performance of local housing 
and management authorities in the same manner provided for public 
housing agencies pursuant to section 6(j) of the United States Housing 
Act of 1937 (as in effect immediately before the enactment of this Act) 
and may take actions with respect to local housing and management 
authorities that are authorized under such section with respect to 
public housing agencies.

SEC. 432. FINANCIAL AND PERFORMANCE AUDITS.

    (a) Requirement.--A financial and performance audit under this 
section shall be conducted for each local housing and management 
authority for each fiscal year that the authority receives grant 
amounts under this Act, as provided under one of the following 
paragraphs:
            (1) Lhma provides for audit.--If neither the Secretary nor 
        the Board takes action under paragraph (2) or (3), the 
        Secretary shall require the local housing and management 
        authority to have the audit conducted. The Secretary may 
        prescribe that such audits be conducted pursuant to guidelines 
        set forth by the Department.
            (2) Secretary requests board to provide for audit.--The 
        Secretary may request the Board to contract directly with an 
        auditor to have the audit conducted for the authority.
            (3) Board provides for audit.--The Board may notify the 
        Secretary that it will contract directly with an auditor to 
        have the audit conducted for the authority.
    (b) Other Audits.--Pursuant to risk assessment strategies designed 
to ensure the integrity of the programs for assistance under this Act, 
which shall be established by the Inspector General for the Department 
of Housing and Urban Development in consultation with the Board, the 
Inspector General may request the Board to conduct audits under this 
subsection of local housing and management authorities. Such audits may 
be in addition to, or in place of, audits under subsection (a), as the 
Board shall provide.
    (c) Submission of Results.--
            (1) Submission to secretary and board.--The results of any 
        audit conducted under this subsection shall be submitted to the 
        local housing and management authority, the Secretary, and the 
        Board.
            (2) Submission to local officials.--
                    (A) Requirement.--A local housing and management 
                authority shall submit each audit conducted under this 
                section to any local elected official or officials 
                responsible for appointing the members of the board of 
                directors (or other similar governing body) of the 
                local housing and management authority for review and 
                comment. Any such comments shall be submitted, together 
                with the audit, to the Secretary and the Board and the 
                Secretary and the Board shall consider such comments in 
                reviewing the audit.
                    (B) Timing.--An audit shall be submitted to local 
                officials as provided in subparagraph (A)--
                            (i) in the case of an audit conducted under 
                        subsection (a)(1), not later than 60 days 
                        before the local housing and management 
                        authority submits the audit to the Secretary 
                        and the Board; or
                            (ii) in the case of an audit under 
                        paragraph (2) or (3) of subsection (a) or under 
                        subsection (b), not later than 60 days after 
                        the authority receives the audit.
    (d) Procedures.-- The requirements for financial and performance 
audits under this section shall--
            (1) be established by the Board, in consultation with the 
        Inspector General of the Department of Housing and Urban 
        Development;
            (2) provide for the audit to be conducted by an independent 
        auditor selected--
                    (A) in the case of an audit under subsection 
                (a)(1), by the authority; and
                    (B) in the case of an audit under paragraph (2) or 
                (3) of subsection (a) or under subsection (b), by the 
                Board;
            (3) authorize the auditor to obtain information from a 
        local housing and management authority, to access any books, 
        documents, papers, and records of an authority that are 
        pertinent to this Act and assistance received pursuant to this 
        Act, and to review any reports of an authority to the 
        Secretary;
            (4) impose sufficient requirements for obtaining 
        information so that the audits are useful to the Board in 
        evaluating local housing and management authorities; and
            (5) include procedures for testing the reliability of 
        internal financial controls of local housing and management 
        authorities.
    (e) Purpose.--Audits under this section shall be designed to--
            (1) evaluate the financial performance and soundness and 
        management performance of the local housing and management 
        authority board of directors (or other similar governing body) 
        and the authority management officials and staff;
            (2) assess the compliance of an authority with all aspects 
        of the standards and guidelines established under section 
        431(a)(1);
            (3) provide information to the Secretary and the Board 
        regarding the financial performance and management of the 
        authority and to determine whether a review under section 
        225(d) or 353(c) is required; and
            (4) identify potential problems in the operations, 
        management, functioning of a local housing and management 
        authority at a time before such problems result in serious and 
        complicated deficiencies.
    (f) Inapplicability of Single Audit Act.--Notwithstanding the first 
sentence of section 7503(a) of title 31, United States Code, an audit 
conducted in accordance with chapter 75 of such title shall not exempt 
any local housing and management authority from conducting an audit 
under this section. Audits under this section shall not be subject to 
the requirements for audits under such chapter. An audit under this 
section for a local housing and management authority for a fiscal year 
shall be considered to satisfy any requirements under such chapter for 
such fiscal year.
    (g) Withholding of Amounts for Costs of Audit.--
            (1) Lhma responsible for audit.--If the Secretary requires 
        a local housing and management authority to have an audit under 
        this section conducted pursuant to subsection (a)(1) and 
        determines that the authority has failed to take the actions 
        required to submit an audit under this section for a fiscal 
        year, the Secretary may--
                    (A) arrange for, and pay the costs of, the audit 
                and withhold, from the total allocation for any fiscal 
                year otherwise payable to the authority under this Act, 
                amounts sufficient to pay for the reasonable costs of 
                conducting an acceptable audit (including, if 
                appropriate, the reasonable costs of accounting 
                services necessary to place the authority's books and 
                records in condition that permits an audit); or
                    (B) request the Board to conduct the audit pursuant 
                to subsection (a)(2) and withhold amounts pursuant to 
                paragraph (2) of this subsection.
            (2) Board responsible for audit.--If the Board is 
        responsible for an audit for a local housing and management 
        authority pursuant to paragraph (2) or (3) of subsection (a), 
        subsection (b), or paragraph (1)(B) of this subsection, the 
        Secretary shall--
                    (A) withhold, from the total allocation for any 
                fiscal year otherwise payable to the authority under 
                this Act, amounts sufficient to pay for the audit, but 
                in no case more than the reasonable cost of conducting 
                an acceptable audit (including, if appropriate, the 
                reasonable costs of accounting services necessary to 
                place the authority's books and records in condition 
                that permits an audit); and
                    (B) transfer such amounts to the Board.

SEC. 433. ACCREDITATION.

    (a) Review Upon Expiration of Previous Accreditation.--The 
Accreditation Board shall perform a comprehensive review of the 
performance of a local housing and management authority, in accordance 
with the procedures established under section 431(b), before the 
expiration of the term for which a previous accreditation was granted 
under this subtitle.
    (b) Initial Evaluation.--
            (1) In general.--Before entering into an initial block 
        grant contract under title II or an initial contract pursuant 
        to section 302 for assistance under title III with any local 
        housing and management authority, the Board shall conduct a 
        comprehensive evaluation of the capabilities of the local 
        housing and management authority.
            (2) Exception.--Paragraph (1) shall not apply to an initial 
        block grant contract or grant agreement entered into during the 
        period beginning upon the date of the enactment of this Act and 
        ending upon the date of the effectiveness of final regulations 
        establishing the standards, guidelines, and procedures required 
        under section 431 with any public housing agency that received 
        amounts under the United States Housing Act of 1937 during 
        fiscal year 1995.
    (c) Determination and Report.--Pursuant to a review or evaluation 
under this section, the Board shall determine whether the authority 
meets the requirements for accreditation under section 431(a)(3), shall 
accredit the authority if it meets such requirements, and shall submit 
a report on the results of the review or evaluation and such 
determination to the Secretary and the authority.
    (d) Accreditation.--An accreditation under this section shall 
expire at the end the term established by the Board in granting the 
accreditation, which may not exceed 5 years. The Board may qualify an 
accreditation placing conditions on the accreditation based on the 
future performance of the authority.

SEC. 434. CLASSIFICATION BY PERFORMANCE CATEGORY.

    Upon completing the accreditation process under section 433 with 
respect to a local housing and management authority, the Housing 
Finance and Accreditation Board shall designate the authority according 
to the performance categories under section 431(a)(2). In determining 
the classification of an authority, the Board shall consider the most 
recent financial and performance audit under section 432 of the 
authority and accreditation reports under section 433(c) for the 
authority.

SEC. 435. PERFORMANCE AGREEMENTS FOR AUTHORITIES AT RISK OF BECOMING 
              TROUBLED.

    (a) In General.--Upon designation of a local housing and management 
authority as at risk of becoming troubled under section 431(a)(2)(C), 
the Secretary shall seek to enter into an agreement with the authority 
providing for improvement of the elements of the authority that have 
been identified. An agreement under this section shall contain such 
terms and conditions as the Secretary determines are appropriate for 
addressing the elements identified, which may include an on-site, 
independent assessment of the management of the authority.
    (b) Powers of Secretary.--If the Secretary determines that such 
action is necessary to prevent the local housing and management 
authority from becoming a troubled authority, the Secretary may--
            (1) solicit competitive proposals from other local housing 
        and management authorities and private housing management 
        agents (which may be selected by existing tenants through 
        administrative procedures established by the Secretary), for 
        any case in which such agents may be needed for managing all, 
        or part, of the housing or functions administered by the 
        authority; or
            (2) solicit competitive proposals from other local housing 
        and management authorities and private entities with experience 
        in construction management, for any case in which such 
        authorities or firms may be needed to oversee implementation of 
        assistance made available for capital improvement for public 
        housing of the authority.

SEC. 436. PERFORMANCE AGREEMENTS AND CDBG SANCTIONS FOR TROUBLED 
              LHMA'S.

    (a) In General.--Upon designation of a local housing and management 
authority as a troubled authority under section 431(a)(2)(D), the 
Secretary shall seek to enter into an agreement with the authority 
providing for improving the management performance of the authority.
    (b) Contents.--An agreement under this section between the 
Secretary and a local housing and management authority shall set 
forth--
            (1) targets for improving performance, as measured by the 
        guidelines and standards established under section 431(a)(1) 
        and other requirements within a specified period of time, which 
        shall include targets to be met upon the expiration of the 12-
        month period beginning upon entering into the agreement;
            (2) strategies for meeting such targets;
            (3) sanctions for failure to implement such strategies; and
            (4) to the extent the Secretary deems appropriate, a plan 
        for enhancing resident involvement in the management of the 
        local housing and management authority.
    (c) Local Assistance in Implementation.--The Secretary and the 
local housing and management authority shall, to the maximum extent 
practicable, seek the assistance of local public and private entities 
in carrying out an agreement under this section.
    (d) Default Under Performance Agreement.--Upon the expiration of 
the 12-month period beginning upon entering into an agreement under 
this section with a local housing and management authority, the 
Secretary shall review the performance of the authority in relation to 
the performance targets and strategies under the agreement. If the 
Secretary determines that the authority has failed to comply with the 
performance targets established for such period, the Secretary shall 
take the action authorized under subsection (b)(2) or (b)(5) of section 
438.
    (e) CDBG Sanction Against Local Government Contributing to Troubled 
Status of LHMA.--If the Secretary determines that the actions or 
inaction of any unit of general local government within which any 
portion of the jurisdiction of a local housing and management authority 
is located has substantially contributed to the conditions resulting in 
the authority being designated under section 431(a)(2)(D) as a troubled 
authority, the Secretary may redirect or withhold, from such unit of 
general local government any amounts allocated for such unit under 
section 106 of such Act.

SEC. 437. OPTION TO DEMAND CONVEYANCE OF TITLE TO OR POSSESSION OF 
              PUBLIC HOUSING.

    (a) Authority for Conveyance.--A contract under section 201 for 
block grants under title II (including contracts which amend or 
supersede contracts previously made (including contracts for 
contributions)) may provide that upon the occurrence of a substantial 
default with respect to the covenants or conditions to which the local 
housing and management authority is subject (as such substantial 
default shall be defined in such contract) or upon designation of the 
authority as dysfunctional pursuant to section 431(a)(2)(E), the local 
housing and management authority shall be obligated, at the option of 
the Secretary, to--
            (1) convey title in any case where, in the determination of 
        the Secretary (which determination shall be final and 
        conclusive), such conveyance of title is necessary to achieve 
        the purposes of this Act; or
            (2) deliver to the Secretary possession of the development, 
        as then constituted, to which such contract relates.
    (b) Obligation to Reconvey.--Any block grant contract under title 
II containing the provisions authorized in subsection (a) shall also 
provide that the Secretary shall be obligated to reconvey or redeliver 
possession of the development, as constituted at the time of 
reconveyance or redelivery, to such local housing and management 
authority or to its successor (if such local housing and management 
authority or a successor exists) upon such terms as shall be prescribed 
in such contract, and as soon as practicable after--
            (1) the Secretary is satisfied that all defaults with 
        respect to the development have been cured, and that the 
        development will, in order to fulfill the purposes of this Act, 
        thereafter be operated in accordance with the terms of such 
        contract; or
            (2) the termination of the obligation to make annual block 
        grants to the authority, unless there are any obligations or 
        covenants of the authority to the Secretary which are then in 
        default.
Any prior conveyances and reconveyances or deliveries and redeliveries 
of possession shall not exhaust the right to require a conveyance or 
delivery of possession of the development to the Secretary pursuant to 
subsection (a) upon the subsequent occurrence of a substantial default.
    (c) Continued Grants for Repayment of Bonds and Notes Under 1937 
Act.--If--
            (1) a contract for block grants under title II for an 
        authority includes provisions that expressly state that the 
        provisions are included pursuant to this subsection, and
            (2) the portion of the block grant payable for debt service 
        requirements pursuant to the contract has been pledged by the 
        local housing and management authority as security for the 
        payment of the principal and interest on any of its 
        obligations, then--
                    (A) the Secretary shall (notwithstanding any other 
                provisions of this Act), continue to make the block 
                grant payments for the authority so long as any of such 
                obligations remain outstanding; and
                    (B) the Secretary may covenant in such a contract 
                that in any event such block grant amounts shall in 
                each year be at least equal to an amount which, 
                together with such income or other funds as are 
                actually available from the development for the purpose 
                at the time such block grant payments are made, will 
                suffice for the payment of all installments of 
                principal and interest on the obligations for which the 
                amounts provided for in the contract shall have been 
                pledged as security that fall due within the next 
                succeeding 12 months.
In no case shall such block grant amounts be in excess of the maximum 
sum specified in the contract involved, nor for longer than the 
remainder of the maximum period fixed by the contract.

SEC. 438. REMOVAL OF INEFFECTIVE LHMA'S.

    (a) Conditions of Removal.--The actions specified in subsection (b) 
may be taken only upon--
            (1) the occurrence of events or conditions that constitute 
        a substantial default by a local housing and management 
        authority with respect to (A) the covenants or conditions to 
        which the local housing and management authority is subject, or 
        (B) an agreement entered into under section 436;
            (2) designation of the authority as dysfunctional pursuant 
        to section 431(a)(2)(E);
            (3) in the case only of action under subsection (b)(1), 
        failure of a local housing and management authority to obtain 
        reaccreditation upon the expiration of the term of a previous 
        accreditation granted under this subtitle; or
            (4) submission to the Secretary of a petition by the 
        residents of the public housing owned or operated by a local 
        housing and management authority that is designated as troubled 
        or dysfunctional pursuant to section 431(a)(2).
    (b) Removal Actions.--Notwithstanding any other provision of law or 
of any block grant contract under title II or any grant agreement under 
title III, in accordance with subsection (a), the Secretary may--
            (1) solicit competitive proposals from other local housing 
        and management authorities and private housing management 
        agents (which, in the discretion of the Secretary, may be 
        selected by existing public housing residents through 
        administrative procedures established by the Secretary) and, if 
        appropriate, provide for such agents to manage all, or part, of 
        the housing administered by the local housing and management 
        authority or all or part of the other functions of the 
        authority;
            (2) take possession of the local housing and management 
        authority, including any developments or functions of the 
        authority under any section of this Act;
            (3) solicit competitive proposals from other local housing 
        and management authorities and private entities with experience 
        in construction management and, if appropriate, provide for 
        such authorities or firms to oversee implementation of 
        assistance made available for capital improvements for public 
        housing;
            (4) require the authority to make other arrangements 
        acceptable to the Secretary and in the best interests of the 
        public housing residents and assisted families under title III 
        for managing all, or part of, the public housing administered 
        by the authority or the functions of the authority; or
            (5) petition for the appointment of a receiver for the 
        local housing and management authority to any district court of 
        the United States or to any court of the State in which any 
        portion of the jurisdiction of the local housing and management 
        authority is located, that is authorized to appoint a receiver 
        for the purposes and having the powers prescribed in this 
        section.
    (c) Emergency Assistance.--The Secretary may make available to 
receivers and other entities selected or appointed pursuant to this 
section such assistance as is fair and reasonable to remedy the 
substantial deterioration of living conditions in individual public 
housing developments or other related emergencies that endanger the 
health, safety and welfare of public housing residents or assisted 
families under title III.
    (d) Powers of Secretary.--If the Secretary takes possession of an 
authority, or any developments or functions of an authority, pursuant 
to subsection (b)(2), the Secretary--
            (1) may abrogate contracts that substantially impede 
        correction of the substantial default or improvement of the 
        classification, but only after efforts to renegotiate such 
        contracts have failed;
            (2) may demolish and dispose of assets of the authority in 
        accordance with subtitle E of title II;
            (3) where determined appropriate by the Secretary, may 
        require the establishment of one or more new local housing and 
        management authorities;
            (4) may consolidate the authority into other well-managed 
        local housing and management authorities with the consent of 
        such well-managed authorities;
            (5) shall not be subject to any State or local laws 
        relating to civil service requirements, employee rights, 
        procurement, or financial or administrative controls that, in 
        the determination of the Secretary, substantially impede 
        correction of the substantial default or improvement of the 
        classification; and
            (6) shall have such additional authority as a district 
        court of the United States has the authority to confer under 
        like circumstances upon a receiver to achieve the purposes of 
        the receivership.
The Secretary may appoint, on a competitive or noncompetitive basis, an 
individual or entity as an administrative receiver to assume the 
Secretary's responsibility under this paragraph for the administration 
of a local housing and management authority. The Secretary may delegate 
to the administrative receiver any or all of the powers of the 
Secretary under this subsection. Regardless of any delegation under 
this subsection, an administrative receiver may not require the 
establishment of one or more new local housing and management 
authorities pursuant to paragraph (3) unless the Secretary first 
approves such establishment. For purposes of this subsection, the term 
``local housing and management authority'' includes any developments or 
functions of a local housing and management authority under any section 
of this title.
    (e) Receivership.--
            (1) Required appointment.--In any proceeding under 
        subsection (b)(5), upon a determination that a substantial 
        default has occurred, and without regard to the availability of 
        alternative remedies, the court shall appoint a receiver to 
        conduct the affairs of the local housing and management 
        authority in a manner consistent with this Act and in 
        accordance with such further terms and conditions as the court 
        may provide. The receiver appointed may be another local 
        housing and management authority, a private management 
        corporation, the Secretary, or any other appropriate entity. 
        The court shall have power to grant appropriate temporary or 
        preliminary relief pending final disposition of the petition by 
        the Secretary.
            (2) Powers of receiver.--If a receiver is appointed for a 
        local housing and management authority pursuant to subsection 
        (b)(5), in addition to the powers accorded by the court 
        appointing the receiver, the receiver--
                    (A) may abrogate contracts that substantially 
                impede correction of the substantial default or 
                improvement of the classification;
                    (B) may demolish and dispose of assets of the 
                authority in accordance with subtitle E of title II;
                    (C) where determined appropriate by the Secretary, 
                may require the establishment of one or more new local 
                housing and management authorities, to the extent 
                permitted by State and local law; and
                    (D) except as provided in subparagraph (C), shall 
                not be subject to any State or local laws relating to 
                civil service requirements, employee rights, 
                procurement, or financial or administrative controls 
                that, in the determination of the receiver, 
                substantially impede correction of the substantial 
                default or improvement of the classification.
        For purposes of this paragraph, the term ``local housing and 
        management authority'' includes any developments or functions 
        of a local housing and management authority under any section 
        of this title.
            (3) Termination.--The appointment of a receiver pursuant to 
        this subsection may be terminated, upon the petition of any 
        party, when the court determines that all defaults have been 
        cured or the local housing and management authority will be 
        able to make the same amount of progress in correcting the 
        management of the housing as the receiver.
    (f) Liability.--If the Secretary takes possession of an authority 
pursuant to subsection (b)(2) or a receiver is appointed pursuant to 
subsection (b)(5) for a local housing and management authority, the 
Secretary or the receiver shall be deemed to be acting in the capacity 
of the local housing and management authority (and not in the official 
capacity as Secretary or other official) and any liability incurred 
shall be a liability of the local housing and management authority.
    (g) Effectiveness.--The provisions of this section shall apply with 
respect to actions taken before, on, or after the effective date of 
this Act and shall apply to any receivers appointed for a public 
housing agency before the date of enactment of this Act.

SEC. 439. MANDATORY TAKEOVER OF CHRONICALLY TROUBLED PHA'S.

    (a) Removal of Agency.--Notwithstanding any other provision of this 
Act, not later than the expiration of the 180-day period beginning on 
the date of the enactment of this Act, the Secretary shall take one of 
the following actions with respect to each chronically troubled public 
housing agency:
            (1) Contracting for management.--Solicit competitive 
        proposals for the management of the agency pursuant to section 
        437(b)(1) and replace the management of the agency pursuant to 
        selection of such a proposal.
            (2) Takeover.--Take possession of the agency pursuant to 
        section 437(b)(2) of such Act.
    (b) Definition.--For purposes of this section, the term 
``chronically troubled public housing agency'' means a public housing 
agency that, as of the date of the enactment of this Act, is designated 
under section 6(j)(2) of the United States Housing Act of 1937 (as in 
effect immediately before the enactment of this Act) as a troubled 
public housing agency and has been so designated continuously for the 
3-year period ending upon such date of enactment; except that such term 
does not include any agency that owns or operates less than 1250 public 
housing dwelling units and that the Secretary determines can, with a 
reasonable amount of effort, make such improvements or remedies as may 
be necessary to remove its designation as troubled within 12 months.

SEC. 440. TREATMENT OF TROUBLED PHA'S.

    (a) Effect of Troubled Status on CHAS.--The comprehensive housing 
affordability strategy (or any consolidated plan incorporating such 
strategy) for the State or unit of general local government in which 
any troubled public housing agency is located shall not be considered 
to comply with the requirements under section 105 of the Cranston-
Gonzalez National Affordable Housing Act unless such plan includes a 
description of the manner in which the State or unit will assist such 
troubled agency in improving its operations to remove such designation.
    (b) Definition.--For purposes of this section, the term ``troubled 
public housing agency'' means a public housing agency that--
            (1) upon the date of the enactment of this Act, is 
        designated under section 6(j)(2) of the United States Housing 
        Act of 1937 (as in effect immediately before the enactment of 
        this Act) as a troubled public housing agency; and
            (2) is not a chronically troubled public housing agency, as 
        such term is defined in section 439(b) of this Act.

SEC. 441. MAINTENANCE OF AND ACCESS TO RECORDS.

    (a) Keeping of Records.--Each local housing and management 
authority shall keep such records as may be reasonably necessary to 
disclose the amount and the disposition by the authority of the 
proceeds of assistance received pursuant to this Act and to ensure 
compliance with the requirements of this Act.
    (b) Access to Documents.--The Secretary, the Inspector General for 
the Department of Housing and Urban Development, and the Comptroller 
General of the United States shall each have access for the purpose of 
audit and examination to any books, documents, papers, and records of a 
local housing and management authority that are pertinent to this Act 
and assistance received pursuant to this Act.

SEC. 442. ANNUAL REPORTS REGARDING TROUBLED LHMA'S.

    The Secretary shall submit a report to the Congress annually, as a 
part of the report of the Secretary under section 8 of the Department 
of Housing and Urban Development Act, that--
            (1) identifies the local housing and management authorities 
        that are designated as troubled or dysfunctional under section 
        431(a)(2) and the reasons for such designation;
            (2) identifies the local housing and management authorities 
        that have lost accreditation pursuant to section 433; and
            (3) describes any actions that have been taken in 
        accordance with sections 433, 434, 435, 436, and 438.

SEC. 443. APPLICABILITY TO RESIDENT MANAGEMENT CORPORATIONS.

    The Secretary shall apply the provisions of this subtitle to 
resident management corporations in the same manner as applied to local 
housing and management authorities.

               TITLE V--REPEALS AND CONFORMING AMENDMENTS

SEC. 501. REPEALS.

    (a) In General.--The following provisions of law are hereby 
repealed:
            (1) United states housing act of 1937.--The United States 
        Housing Act of 1937 (42 U.S.C. 1437 et seq.).
            (2) Assisted housing allocation.--Section 213 of the 
        Housing and Community Development Act of 1974 (42 U.S.C. 1439).
            (3) Public housing rent waivers for police.--Section 519 of 
        the Cranston-Gonzalez National Affordable Housing Act (42 
        U.S.C. 1437a-1).
            (4) Occupancy preferences and income mix for new 
        construction and substantial rehabilitation projects.--
        Subsection (c) of section 545, and section 555, of the 
        Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
        1437f note).
            (5) Treatment of certificate and voucher holders.--
        Subsection (c) of section 183 of the Housing and Community 
        Development Act of 1987 (42 U.S.C. 1437f note).
            (6) Excessive rent burden data.--Subsection (b) of section 
        550 of the Cranston-Gonzalez National Affordable Housing Act 
        (42 U.S.C. 1437f note).
            (7) Section 8 disaster relief.--Sections 931 and 932 of the 
        Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
        1437c note).
            (8) Moving to opportunity for fair housing.--Section 152 of 
        the Housing and Community Development Act of 1992 (42 U.S.C. 
        1437f note).
            (9) Report regarding fair housing objectives.--Section 153 
        of the Housing and Community Development Act of 1992 (42 U.S.C. 
        1437f note).
            (10) Section 8 community investment demonstration.--Section 
        6 of the HUD Demonstration Act of 1993 (42 U.S.C. 1437f note).
            (11) Special projects for elderly or handicapped 
        families.--Section 209 of the Housing and Community Development 
        Act of 1974 (42 U.S.C. 1438).
            (12) Access to pha books.--Section 816 of the Housing Act 
        of 1954 (42 U.S.C. 1435).
            (13) Miscellaneous provisions.--Subsections (b)(1), (c), 
        and (d) of section 326 of the Housing and Community Development 
        Amendments of 1981 (Public Law 97-35, 95 Stat. 406; 42 U.S.C. 
        1437f note).
            (14) Payment for development managers.--Section 329A of the 
        Housing and Community Development Amendments of 1981 (42 U.S.C. 
        1437j-1).
            (15) Purchase of pha obligations.--Section 329E of the 
        Housing and Community Development Amendments of 1981 (12 U.S.C. 
        2294a).
            (16) Procurement of insurance by pha's.--
                    (A) In the item relating to ``administrative 
                provisions'' under the heading ``Management and 
                Administration'' in title II of the Departments of 
                Veterans Affairs and Housing and Urban Development, and 
                Independent Agencies Appropriations Act, 1991, the 
                penultimate undesignated paragraph of such item (Public 
                Law 101-507; 104 Stat. 1369).
                    (B) In the item relating to ``administrative 
                provisions'' under the heading ``Management and 
                Administration'' in title II of the Departments of 
                Veterans Affairs and Housing and Urban Development, and 
                Independent Agencies Appropriations Act, 1992, the 19th 
                through 23d undesignated paragraphs of such item 
                (Public Law 102-139; 105 Stat. 758).
            (17) Public housing childhood development.--Section 222 of 
        the Housing and Urban-Rural Recovery Act of 1983 (12 U.S.C. 
        1701z-6 note).
            (18) Indian housing childhood development.--Section 518 of 
        the Cranston-Gonzalez National Affordable Housing Act (12 
        U.S.C. 1701z-6 note).
            (19) Public housing comprehensive transition 
        demonstration.--Section 126 of the Housing and Community 
        Development Act of 1987 (42 U.S.C. 1437f note).
            (20) Public housing one-stop perinatal services 
        demonstration.--Section 521 of the Cranston-Gonzalez National 
        Affordable Housing Act (42 U.S.C. 1437t note).
            (21) Public housing mincs demonstration.--Section 522 of 
        the Cranston-Gonzalez National Affordable Housing Act (42 
        U.S.C. 1437f note).
            (22) Public housing energy efficiency demonstration.--
        Section 523 of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 1437g note).
            (23) Omaha homeownership demonstration.--Section 132 of the 
        Housing and Community Development Act of 1992 (Public Law 102-
        550; 106 stat. 3712).
            (24) Public and assisted housing youth sports programs.--
        Section 520 of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 11903a).
    (b) Savings Provision.--The repeals made by subsection (a) shall 
not affect any legally binding obligations entered into before the date 
of the enactment of this Act. Any funds or activities subject to a 
provision of law repealed by subsection (a) shall continue to be 
governed by the provision as in effect immediately before such repeal.

SEC. 502. CONFORMING AND TECHNICAL PROVISIONS.

    (a) Allocation of Elderly Housing Amounts.--Section 202(l) of the 
Housing Act of 1959 (12 U.S.C. 1701q(l)) is amended by adding at the 
end the following new paragraph:
            ``(4) Consideration in allocating assistance.--Assistance 
        under this section shall be allocated in a manner that ensures 
        that the awards of the assistance are made for projects of 
        sufficient size to accommodate facilities for supportive 
        services appropriate to the needs of frail elderly 
        residents.''.
    (b) Eligibility for Assisted Housing.--
            (1) General.--Notwithstanding any other provision of law, 
        for purposes of determining eligibility for admission to 
        assisted housing, a person shall not be considered to have a 
        disability or a handicap solely because of the prior or current 
        illegal use of a controlled substance (as defined in section 
        102 of the Controlled Substances Act) or solely by reason of 
        the prior or current use of alcohol.
            (2) Definition.--For purposes of this subsection, the term 
        ``assisted housing'' means housing designed primarily for 
        occupancy by elderly persons or persons with disabilities that 
        is assisted pursuant to this Act, the United States Housing Act 
        of 1937, section 221(d)(3) or 236 of the National Housing Act, 
        section 202 of the Housing Act of 1959, section 101 of the 
        Housing and Urban Development Act of 1965, or section 811 of 
        the Cranston-Gonzalez National Affordable Housing Act.
            (3) Continued occupancy.--This subsection may not be 
        construed to prohibit the continued occupancy of any person who 
        is a resident in assisted housing on the date of enactment of 
        this Act.
    (c) Amendment to Housing and Urban-Rural Recovery Act of 1983.--
Section 227(d)(2) of the Housing and Urban-Rural Recovery Act of 1983 
(12 U.S.C. 1701r-1(d)(2)) is amended by inserting ``the United States 
Housing Act of 1996,'' after ``the United States Housing Act of 
1937,''.
    (d) Review of Drug Elimination Program Contracts.--
            (1) Requirement.--Notwithstanding the repeal under section 
        501(a)(26), the Secretary of Housing and Urban Development 
        shall investigate all security contracts awarded by grantees 
        under the Public and Assisted Housing Drug Elimination Act of 
        1990 (42 U.S.C. 11901 et seq.) that are public housing agencies 
        that own or operate more than 4,500 public housing dwelling 
        units--
                    (A) to determine whether the contractors under such 
                contracts have complied with all laws and regulations 
                regarding prohibition of discrimination in hiring 
                practices;
                    (B) to determine whether such contracts were 
                awarded in accordance with the applicable laws and 
                regulations regarding the award of such contracts;
                    (C) to determine how many such contracts were 
                awarded under emergency contracting procedures;
                    (D) to evaluate the effectiveness of the contracts; 
                and
                    (E) to provide a full accounting of all expenses 
                under the contracts.
            (2) Report.--Not later than 180 days after the date of the 
        enactment of this Act, the Secretary shall complete the 
        investigation required under paragraph (1) and submit a report 
        to the Congress regarding the findings under the investigation. 
        With respect to each such contract, the report shall (A) state 
        whether the contract was made and is operating, or was not made 
        or is not operating, in full compliance with applicable laws 
        and regulations, and (B) for each contract that the Secretary 
        determines is in such compliance in a personal certification of 
        such compliance by the Secretary of Housing and Urban 
        Development.
            (3) Actions.--For each contract that is described in the 
        report under paragraph (2) as not made or not operating in full 
        compliance with applicable laws and regulation, the Secretary 
        of Housing and Urban Development shall promptly take any 
        actions available under law or regulation that are necessary--
                    (A) to bring such contract into compliance; or
                    (B) to terminate the contract.
    (e) References.--Except as provided in section 271 and 501(b), any 
reference in any other Federal law, Executive order, rule, regulation, 
or delegation of authority, or any document of or pertaining to--
            (1) public housing or housing assisted under the United 
        States Housing Act of 1937 is deemed to refer to public housing 
        assisted under title II of this Act;
            (2) to assistance under section 8 of the United States 
        Housing Act of 1937 is deemed to refer to assistance under 
        title III of this Act; and
            (3) to assistance under the United States Housing Act of 
        1937 is deemed to refer to assistance under this Act.
    (f) Conversion of Project-Based Assistance to Choice-Based Rental 
Assistance.--
            (1) Section 8 project-based contracts.--Upon the request of 
        the owner of a multifamily housing project for which project-
        based assistance is provided under a contract entered into 
        under section 8 of the United States Housing Act of 1937 (as in 
        effect before the enactment of this Act), notwithstanding the 
        termination date of such contract the Secretary shall provide 
        for a reduction in the number of dwelling units assisted under 
        the contract, which may not exceed 40 percent of the units in 
        the project and shall be subject to the requirements in 
        paragraphs (3) and (4) of this subsection.
            (2) Section 236 contracts.--Upon the request of the owner 
        of a multifamily housing project for which assistance is 
        provided under a contract for interest reduction payments under 
        section 236 of the National Housing Act, notwithstanding the 
        termination date of such contract the Secretary shall provide 
        for a reduction in the number of dwelling units assisted under 
        the contract, which may not exceed 40 percent of the units in 
        the project. The amount of the interest reduction payments made 
        on behalf of the owner shall be reduced by a fraction for which 
        the numerator is the aggregate basic rent for the units which 
        are no longer assisted under the contract for interest 
        reduction payments and the denominator is the aggregate basic 
        rents for all units in the project. The requirements of section 
        236(g) of the National Housing Act shall not apply to rental 
        charges collected with respect to dwelling units for which 
        assistance in terminated under this paragraph. Such reduction 
        shall be subject to the requirements in paragraphs (3) and (4) 
        of this subsection.
            (3) Eligible units.--A unit may be removed from coverage by 
        a contract pursuant to paragraph (1) or (2) only--
                    (A) upon the vacancy of the unit; and
                    (B) in the case of--
                            (i) units assisted under section 8 of the 
                        United States Housing Act of 1937, if the 
                        contract rent for the unit is not less than the 
                        applicable fair market rental established 
                        pursuant to section 8(c) of such Act for the 
                        area in which the unit is located; or
                            (ii) units assisted under an interest 
                        reduction contract under section 236 of the 
                        National Housing Act, if the reduction in the 
                        amount of interest reduction payments on a 
                        monthly basis is less than the aggregate amount 
                        of fair market rents established pursuant to 
                        section 8(c) of such Act for the number and 
                        type of units which are removed from coverage 
                        by the contract.
            (4) Recapture.--Any budget authority that becomes available 
        to a local housing and management authority or the Secretary 
        pursuant to this section shall be used to provide choice-based 
        rental assistance under title III, during the term covered by 
        such contract.

SEC. 503. AMENDMENTS TO PUBLIC AND ASSISTED HOUSING DRUG ELIMINATION 
              ACT OF 1990.

    (a) Short Title, Purposes, and Authority to Make Grants.--Chapter 2 
of subtitle C of title V of the Anti-Drug Abuse Act of 1988 (42 U.S.C. 
11901 et seq.) is amended by striking the chapter heading and all that 
follows through section 5123 and inserting the following:

           ``CHAPTER 2--COMMUNITY PARTNERSHIPS AGAINST CRIME

``SEC. 5121. SHORT TITLE.

    ``This chapter may be cited as the `Community Partnerships Against 
Crime Act of 1996'.

``SEC. 5122. PURPOSES.

    ``The purposes of this chapter are to--
            ``(1) improve the quality of life for the vast majority of 
        law-abiding public housing residents by reducing the levels of 
        fear, violence, and crime in their communities;
            ``(2) broaden the scope of the Public and Assisted Housing 
        Drug Elimination Act of 1990 to apply to all types of crime, 
        and not simply crime that is drug-related; and
            ``(3) reduce crime and disorder in and around public 
        housing through the expansion of community-oriented policing 
        activities and problem solving.

``SEC. 5123. AUTHORITY TO MAKE GRANTS.

    ``The Secretary of Housing and Urban Development may make grants in 
accordance with the provisions of this chapter for use in eliminating 
crime in and around public housing and other federally assisted low-
income housing projects to (1) local housing and management 
authorities, and (2) private, for-profit and nonprofit owners of 
federally assisted low-income housing.''.
    (b) Eligible Activities.--
            (1) In general.--Section 5124(a) of the Anti-Drug Abuse Act 
        of 1988 (42 U.S.C. 11903(a)) is amended--
                    (A) in the matter preceding paragraph (1), by 
                inserting ``and around'' after ``used in'';
                    (B) in paragraph (3), by inserting before the 
                semicolon the following: ``, including fencing, 
                lighting, locking, and surveillance systems'';
                    (C) in paragraph (4), by striking subparagraph (A) 
                and inserting the following new subparagraph:
                    ``(A) to investigate crime; and'';
                    (D) in paragraph (6)--
                            (i) by striking ``in and around public or 
                        other federally assisted low-income housing 
                        projects''; and
                            (ii) by striking ``and'' after the 
                        semicolon; and
                    (E) by striking paragraph (7) and inserting the 
                following new paragraphs:
            ``(7) providing funding to nonprofit public housing 
        resident management corporations and resident councils to 
        develop security and crime prevention programs involving site 
        residents;
            ``(8) the employment or utilization of one or more 
        individuals, including law enforcement officers, made available 
        by contract or other cooperative arrangement with State or 
        local law enforcement agencies, to engage in community- and 
        problem-oriented policing involving interaction with members of 
        the community in proactive crime control and prevention 
        activities;
            ``(9) programs and activities for or involving youth, 
        including training, education, recreation and sports, career 
        planning, and entrepreneurship and employment activities and 
        after school and cultural programs; and
            ``(10) service programs for residents that address the 
        contributing factors of crime, including programs for job 
        training, education, drug and alcohol treatment, and other 
        appropriate social services.''.
            (2) Other lhma-owned housing.--Section 5124(b) of the Anti-
        Drug Abuse Act of 1988 (42 U.S.C. 11903(b)) is amended--
                    (A) in the matter preceding paragraph (1)--
                            (i) by striking ``drug-related crime in 
                        housing owned by public housing agencies'' and 
                        inserting ``crime in and around housing owned 
                        by local housing and management authorities''; 
                        and
                            (ii) by striking ``paragraphs (1) through 
                        (7)'' and inserting ``paragraphs (1) through 
                        (10)''; and
                    (B) in paragraph (2)--
                            (i) by striking ``public housing agency'' 
                        and inserting ``local housing and management 
                        authority''; and
                            (ii) by striking ``drug-related'' and 
                        inserting ``criminal''.
    (c) Grant Procedures.--Section 5125 of the Anti-Drug Abuse Act of 
1988 (42 U.S.C. 11904) is amended to read as follows:

``SEC. 5125. GRANT PROCEDURES.

    ``(a) LHMA's With 250 or More Units.--
            ``(1) Grants.--In each fiscal year, the Secretary shall 
        make a grant under this chapter from any amounts available 
        under section 5131(b)(1) for the fiscal year to each of the 
        following local housing and management authorities:
                    ``(A) New applicants.--Each local housing and 
                management authority that owns or operates 250 or more 
                public housing dwelling units and has--
                            ``(i) submitted an application to the 
                        Secretary for a grant for such fiscal year, 
                        which includes a 5-year crime deterrence and 
                        reduction plan under paragraph (2); and
                            ``(ii) had such application and plan 
                        approved by the Secretary.
                    ``(B) Renewals.--Each local housing and management 
                authority that owns or operates 250 or more public 
                housing dwelling units and for which--
                            ``(i) a grant was made under this chapter 
                        for the preceding Federal fiscal year;
                            ``(ii) the term of the 5-year crime 
                        deterrence and reduction plan applicable to 
                        such grant includes the fiscal year for which 
                        the grant under this subsection is to be made; 
                        and
                            ``(iii) the Secretary has determined, 
                        pursuant to a performance review under 
                        paragraph (4), that during the preceding fiscal 
                        year the agency has substantially fulfilled the 
                        requirements under subparagraphs (A) and (B) of 
                        paragraph (4).
            ``(2) 5-year crime deterrence and reduction plan.--Each 
        application for a grant under this subsection shall contain a 
        5-year crime deterrence and reduction plan. The plan shall be 
        developed with the participation of residents and appropriate 
        law enforcement officials. The plan shall describe, for the 
        local housing and management authority submitting the plan--
                    ``(A) the nature of the crime problem in public 
                housing owned or operated by the local housing and 
                management authority;
                    ``(B) the building or buildings of the local 
                housing and management authority affected by the crime 
                problem;
                    ``(C) the impact of the crime problem on residents 
                of such building or buildings; and
                    ``(D) the actions to be taken during the term of 
                the plan to reduce and deter such crime, which shall 
                include actions involving residents, law enforcement, 
                and service providers.
        The term of a plan shall be the period consisting of 5 
        consecutive fiscal years, which begins with the first fiscal 
        year for which funding under this chapter is provided to carry 
        out the plan.
            ``(3) Amount.--In any fiscal year, the amount of the grant 
        for a local housing and management authority receiving a grant 
        pursuant to paragraph (1) shall be the amount that bears the 
        same ratio to the total amount made available under section 
        5131(b)(1) as the total number of public dwelling units owned 
        or operated by such authority bears to the total number of 
        dwelling units owned or operated by all local housing and 
        management authorities that own or operate 250 or more public 
        housing dwelling units that are approved for such fiscal year.
            ``(4) Performance review.--For each fiscal year, the 
        Secretary shall conduct a performance review of the activities 
        carried out by each local housing and management authority 
        receiving a grant pursuant to this subsection to determine 
        whether the agency--
                    ``(A) has carried out such activities in a timely 
                manner and in accordance with its 5-year crime 
                deterrence and reduction plan; and
                    ``(B) has a continuing capacity to carry out such 
                plan in a timely manner.
            ``(5) Submission of applications.--The Secretary shall 
        establish such deadlines and requirements for submission of 
        applications under this subsection.
            ``(6) Review and determination.--The Secretary shall review 
        each application submitted under this subsection upon 
        submission and shall approve the application unless the 
        application and the 5-year crime deterrence and reduction plan 
        are inconsistent with the purposes of this chapter or any 
        requirements established by the Secretary or the information in 
        the application or plan is not substantially complete. Upon 
approving or determining not to approve an application and plan 
submitted under this subsection, the Secretary shall notify the local 
housing and management authority submitting the application and plan of 
such approval or disapproval.
            ``(7) Disapproval of applications.--If the Secretary 
        notifies an authority that the application and plan of the 
        authority is not approved, not later than the expiration of the 
        15-day period beginning upon such notice of disapproval, the 
        Secretary shall also notify the authority, in writing, of the 
        reasons for the disapproval, the actions that the authority 
        could take to comply with the criteria for approval, and the 
        deadlines for such actions.
            ``(8) Failure to approve or disapprove.--If the Secretary 
        fails to notify an authority of approval or disapproval of an 
        application and plan submitted under this subsection before the 
        expiration of the 60-day period beginning upon the submission 
        of the plan or fails to provide notice under paragraph (7) 
        within the 15-day period under such paragraph to an authority 
        whose application has been disapproved, the application and 
        plan shall be considered to have been approved for purposes of 
        this section.
    ``(b) LHMA's With Fewer Than 250 Units and Owners of Federally 
Assisted Low-Income Housing.--
            ``(1) Applications and plans.--To be eligible to receive a 
        grant under this chapter, a local housing and management 
        authority that owns or operates fewer than 250 public housing 
        dwelling units or an owner of federally assisted low-income 
        housing shall submit an application to the Secretary at such 
        time, in such manner, and accompanied by such additional 
        information as the Secretary may require. The application shall 
        include a plan for addressing the problem of crime in and 
        around the housing for which the application is submitted, 
        describing in detail activities to be conducted during the 
        fiscal year for which the grant is requested.
            ``(2) Grants for lhma's with fewer than 250 units.--In each 
        fiscal year the Secretary may, to the extent amounts are 
        available under section 5131(b)(2), make grants under this 
        chapter to local housing and management authorities that own or 
        operate fewer than 250 public housing dwelling units and have 
        submitted applications under paragraph (1) that the Secretary 
        has approved pursuant to the criteria under paragraph (4).
            ``(3) Grants for federally assisted low-income housing.--In 
        each fiscal year the Secretary may, to the extent amounts are 
        available under section 5131(b)(3), make grants under this 
        chapter to owners of federally assisted low-income housing that 
        have submitted applications under paragraph (1) that the 
        Secretary has approved pursuant to the criteria under 
        paragraphs (4) and (5).
            ``(4) Criteria for approval of applications.--The Secretary 
        shall determine whether to approve each application under this 
        subsection on the basis of--
                    ``(A) the extent of the crime problem in and around 
                the housing for which the application is made;
                    ``(B) the quality of the plan to address the crime 
                problem in the housing for which the application is 
                made;
                    ``(C) the capability of the applicant to carry out 
                the plan; and
                    ``(D) the extent to which the tenants of the 
                housing, the local government, local community-based 
                nonprofit organizations, local tenant organizations 
                representing residents of neighboring projects that are 
                owned or assisted by the Secretary, and the local 
                community support and participate in the design and 
                implementation of the activities proposed to be funded 
                under the application.
        In each fiscal year, the Secretary may give preference to 
        applications under this subsection for housing made by 
        applicants who received a grant for such housing for the 
        preceding fiscal year under this subsection or under the 
        provisions of this chapter as in effect immediately before the 
        date of the enactment of the United States Housing Act of 1996.
            ``(5) Additional criteria for federally assisted low-income 
        housing.--In addition to the selection criteria under paragraph 
        (4), the Secretary may establish other criteria for evaluating 
        applications submitted by owners of federally assisted low-
        income housing, except that such additional criteria shall be 
        designed only to reflect--
                    ``(A) relevant differences between the financial 
                resources and other characteristics of local housing 
                and management authorities and owners of federally 
                assisted low-income housing; or
                    ``(B) relevant differences between the problem of 
                crime in public housing administered by such 
authorities and the problem of crime in federally assisted low-income 
housing.''.
    (d) Definitions.--Section 5126 of the Anti-Drug Abuse Act of 1988 
(42 U.S.C. 11905) is amended--
            (1) by striking paragraphs (1) and (2);
            (2) in paragraph (4)(A), by striking ``section'' before 
        ``221(d)(4)'';
            (3) by redesignating paragraphs (3) and (4) (as so amended) 
        as paragraphs (1) and (2), respectively; and
            (4) by adding at the end the following new paragraph:
            ``(3) Local housing and management authority.--The term 
        `local housing and management authority' has the meaning given 
        the term in title I of the United States Housing Act of 
        1996.''.
    (e) Implementation.--Section 5127 of the Anti-Drug Abuse Act of 
1988 (42 U.S.C. 11906) is amended by striking ``Cranston-Gonzalez 
National Affordable Housing Act'' and inserting ``United States Housing 
Act of 1996''.
    (f) Reports.--Section 5128 of the Anti-Drug Abuse Act of 1988 (42 
U.S.C. 11907) is amended--
            (1) by striking ``drug-related crime in'' and inserting 
        ``crime in and around''; and
            (2) by striking ``described in section 5125(a)'' and 
        inserting ``for the grantee submitted under subsection (a) or 
        (b) of section 5125, as applicable''.
    (g) Funding and Program Sunset.--Chapter 2 of subtitle C of title V 
of the Anti-Drug Abuse Act of 1988 is amended by striking section 5130 
(42 U.S.C. 11909) and inserting the following new sections:

``SEC. 5130. FUNDING.

    ``(a) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this chapter such sums as may be necessary 
for fiscal years 1997 and 1998.
    ``(b) Allocation.--Of any amounts available, or that the Secretary 
is authorized to use, to carry out this chapter in any fiscal year--
            ``(1) 85 percent shall be available only for assistance 
        pursuant to section 5125(a) to local housing and management 
        authorities that own or operate 250 or more public housing 
        dwelling units;
            ``(2) 10 percent shall be available only for assistance 
        pursuant to section 5125(b)(2) to local housing and management 
        authorities that own or operate fewer than 250 public housing 
        dwelling units; and
            ``(3) 5 percent shall be available only for assistance to 
        federally assisted low-income housing pursuant to section 
        5125(b)(3).''.
    (h) Conforming Amendments.--The table of contents in section 5001 
of the Anti-Drug Abuse Act of 1988 (Public Law 100-690; 102 Stat. 4295) 
is amended--
            (1) by striking the item relating to the heading for 
        chapter 2 of subtitle C of title V and inserting the following:

          ``Chapter 2--Community Partnerships Against Crime'';

            (2) by striking the item relating to section 5122 and 
        inserting the following new item:

``Sec. 5122. Purposes.'';
            (3) by striking the item relating to section 5125 and 
        inserting the following new item:

``Sec. 5125. Grant procedures.'';
        and
            (4) by striking the item relating to section 5130 and 
        inserting the following new item:

``Sec. 5130. Funding.''.
    (i) Treatment of NOFA.--The cap limiting assistance under the 
Notice of Funding Availability issued by the Department of Housing and 
Urban Development in the Federal Register of April 8, 1996, shall not 
apply to a local housing and management authority within an area 
designated as a high intensity drug trafficking area under section 
1005(c) of the Anti-Drug Abuse Act of 1988 (21 U.S.C. 1504(c).

SEC. 504. TREATMENT OF CERTAIN PROJECTS.

    Rehabilitation activities undertaken by Pennrose Properties in 
connection with 40 dwelling units for senior citizens in the Providence 
Square development located in New Brunswick, New Jersey, are hereby 
deemed to have been conducted pursuant to the approval of and an 
agreement with the Secretary of Housing and Urban Development under 
clauses (i) and (ii) of the third sentence of section 8(d)(2)(A) of the 
United States Housing Act of 1937 (as in effect before the date of the 
enactment of this Act).

SEC. 505. AMENDMENTS RELATING TO COMMUNITY DEVELOPMENT ASSISTANCE.

    (a) Eligibility of Metropolitan Cities.--Section 102(a)(4) of the 
Housing and Community Development Act of 1974 (42 U.S.C. 5302(a)(4)) is 
amended--
            (1) by striking the second sentence and inserting the 
        following new sentence: ``Any city that was classified as a 
        metropolitan city for at least 1 year after September 30, 1989, 
        pursuant to the first sentence of this paragraph, shall remain 
        classified as a metropolitan city by reason of this sentence 
        until the first year for which data from the 2000 Decennial 
        Census is available for use for purposes of allocating amounts 
        this title.''; and
            (2) by striking the fifth sentence and inserting the 
        following new sentence: ``Notwithstanding that the population 
        of a unit of general local government was included, after 
        September 30, 1989, with the population of an urban county for 
        purposes of qualifying for assistance under section 106, the 
        unit of general local government may apply for assistance under 
        section 106 as a metropolitan city if the unit meets the 
        requirements of the second sentence of this paragraph.''.
    (b) Public Services Limitation.--Section 105(a)(8) of the Housing 
and Community Development Act of 1974 (42 U.S.C. 5305(a)(8)) is amended 
by striking ``through 1997'' and inserting ``through 1998''.

SEC. 506. AUTHORITY TO TRANSFER SURPLUS REAL PROPERTY FOR HOUSING USE.

    Section 203 of the Federal Property and Administrative Services Act 
of 1949 (40 U.S.C. 484) is amended by adding at the end the following 
new subsection:
    ``(r)(1) Under such regulations as the Administrator may prescribe, 
and with the written consent of appropriate local governmental 
authorities, the Administrator may transfer to any nonprofit 
organization which exists for the primary purpose of providing housing 
or housing assistance for homeless individuals or families, such 
surplus real property, including buildings, fixtures, and equipment 
situated thereon, as is needed for housing use.
    ``(2) Under such regulations as the Administrator may prescribe, 
and with the written consent of appropriate local governmental 
authorities, the Administrator may transfer to any nonprofit 
organization which exists for the primary purpose of providing housing 
or housing assistance for low-income individuals or families such 
surplus real property, including buildings, fixtures, and equipment 
situated thereon, as is needed for housing use.
    ``(3) In making transfers under this subsection, the Administrator 
shall take such action, which shall include grant agreements with an 
organization receiving a grant, as may be necessary to ensure that--
            ``(A) assistance provided under this subsection is used to 
        facilitate and encourage homeownership opportunities through 
        the construction of self-help housing, under terms which 
        require that the person receiving the assistance contribute a 
        significant amount of labor toward the construction; and
            ``(B) the dwellings constructed with property transferred 
        under this subsection shall be quality dwellings that comply 
        with local building and safety codes and standards and shall be 
        available at prices below the prevailing market prices.
    ``(4)(A) Where the Administrator has transferred a significant 
portion of a surplus real property, including buildings, fixtures, and 
equipment situated thereon, under paragraph (1) or (2) of this 
subsection, the transfer of the entire property shall be deemed to be 
in compliance with title V of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11411 et seq.).
    ``(B) For the purpose of this paragraph, the term `a significant 
portion of a surplus real property' means a portion of surplus real 
property--
            ``(i) which constitutes at least 5 acres of total acreage;
            ``(ii) whose fair market value exceeds $100,000; or
            ``(iii) whose fair market value exceeds 15 percent of the 
        surplus property's fair market value.
    ``(5) The provisions of this section shall not apply to buildings 
and property at military installations that are approved for closure 
under the Defense Base Closure and Realignment Act of 1990 (part A of 
title XXIX of Public Law 101-510; 10 U.S.C. 2687 note) and shall not 
supersede the provisions of section 2(e) of the Base Closure Community 
Redevelopment and Homeless Assistance Act of 1994 (10 U.S.C. 2687 
note).''.

SEC. 507. RURAL HOUSING ASSISTANCE.

    The last sentence of section 520 of the Housing Act of 1949 (42 
U.S.C. 1490) is amended by inserting before the period the following: 
``, and the city of Altus, Oklahoma, shall be considered a rural area 
for purposes of this title until the receipt of data from the decennial 
census in the year 2000''.

SEC. 508. TREATMENT OF OCCUPANCY STANDARDS.

    (a) National Standard Prohibited.--The Secretary of Housing and 
Urban Development shall not directly or indirectly establish a national 
occupancy standard.
    (b) State Standard.--If a State establishes an occupancy standard--
            (1) such standard shall be presumed reasonable for purposes 
        of any laws administered by the Secretary; and
            (2) the Secretary shall not suspend, withdraw, or deny 
        certification of any State or local public agency based in 
        whole or in part on that State occupancy standard or its 
        operation.
    (c) Absence of State Standard.--If a State fails to establish an 
occupancy standard, an occupancy standard of 2 persons per bedroom 
established by a housing provider shall be presumed reasonable for the 
purposes of any laws administered by the Secretary.
    (d) Definition.--
            (1) General rule.--Except as provided in paragraph (2), the 
        term ``occupancy standard'' means a law, regulation, or housing 
        provider policy that establishes a limit on the number of 
        residents a housing provider can properly manage in a dwelling 
        for any 1 or more of the following purposes--
                    (A) providing a decent home and services for each 
                resident;
                    (B) enhancing the livability of a dwelling for all 
                residents, including the dwelling for each particular 
                resident; and
                    (C) avoiding undue physical deterioration of the 
                dwelling and property.
            (2) Exception.--The term ``occupancy standard'' does not 
        include a Federal, State, or local restriction regarding the 
        maximum number of persons permitted to occupy a dwelling for 
        the sole purpose of protecting the health and safety of the 
        residents of a dwelling, including building and housing code 
        provisions.
    (e) Effective Date.--This section shall take effect January 1, 
1996.

SEC. 509. IMPLEMENTATION OF PLAN.

    (a) Implementation.--Within 120 days after the enactment of this 
Act, the Secretary of Housing and Urban Development shall implement the 
Ida Barbour Revitalization Plan of the City of Portsmouth, Virginia, in 
a manner consistent with existing limitations under law. The Secretary 
shall consider and make any waivers to existing regulations consistent 
with such plan to enable timely implementation of such plan.
    (b) Report.--Such city shall submit a report to the Secretary on 
progress in implementing the plan not later than 1 year after the date 
of the enactment of this Act and annually thereafter through the year 
2000. The report shall include quantifiable measures revealing the 
increase in homeowners, employment, tax base, voucher allocation, 
leverage ratio of funds, impact on and compliance with the city's 
consolidated plan, identification of regulatory and statutory obstacles 
which have or are causing unnecessary delays in the plan's successful 
implementation or are contributing to unnecessary costs associated with 
the revitalization, and any other information as the Secretary 
considers appropriate.

SEC. 510. INCOME ELIGIBILITY FOR HOME AND CDBG PROGRAMS.

    (a) Home Investment Partnerships.--The Cranston-Gonzalez National 
Affordable Housing Act is amended as follows:
            (1) Definitions.--In section 104(10) (42 U.S.C. 
        12704(10))--
                    (A) by striking ``income ceilings higher or lower'' 
                and inserting ``an income ceiling higher'';
                    (B) by striking ``variations are'' and inserting 
                ``variation is''; and
                    (C) by striking ``high or''.
            (2) Income targeting.--In section 214(1)(A) (42 U.S.C. 
        12744(1)(A))--
                    (A) by striking ``income ceilings higher or lower'' 
                and inserting ``an income ceiling higher'';
                    (B) by striking ``variations are'' and inserting 
                ``variation is''; and
                    (C) by striking ``high or''.
            (3) Rent limits.--In section 215(a)(1)(A) (42 U.S.C. 
        12745(a)(1)(A))--
                    (A) by striking ``income ceilings higher or lower'' 
                and inserting ``an income ceiling higher'';
                    (B) by striking ``variations are'' and inserting 
                ``variation is''; and
                    (C) by striking ``high or''.
    (b) CDBG.--Section 102(a)(20) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5302(a)(20)) is amended by striking 
subparagraph (B) and inserting the following new subparagraph:
            ``(B) The Secretary may--
                    ``(i) with respect to any reference in subparagraph 
                (A) to 50 percent of the median income of the area 
                involved, establish percentages of median income for 
                any area that are higher or lower than 50 percent if 
                the Secretary finds such variations to be necessary 
                because of unusually high or low family incomes in such 
                area; and
                    ``(ii) with respect to any reference in 
                subparagraph (A) to 80 percent of the median income of 
                the area involved, establish a percentage of median 
                income for any area that is higher than 80 percent if 
                the Secretary finds such variation to be necessary 
                because of unusually low family incomes in such 
                area.''.

SEC. 511. AMENDMENTS RELATING TO SECTION 236 PROGRAM.

    Section 236(f)(1) of the National Housing Act (12 U.S.C. 1715z-1) 
(as amended by section 405(d)(1) of The Balanced Budget Downpayment 
Act, I, and by section 228(a) of The Balanced Budget Downpayment Act, 
II) is amended--
            (1) in the second sentence, by striking ``the lower of 
        (i)'';
            (2) in the second sentence, by striking ``(ii) the fair 
        market rental established under section 8(c) of the United 
        States Housing Act of 1937 for the market area in which the 
        housing is located, or (iii) the actual rent (as determined by 
        the Secretary) paid for a comparable unit in comparable 
        unassisted housing in the market area in which the housing 
        assisted under this section is located,''; and
            (3) by inserting after the second sentence the following: 
        ``However, in the case of a project which contains more than 
        5,000 units, is subject to an interest reduction payments 
        contract, and is financed under a State or local program, the 
        Secretary may reduce the rental charge ceiling, but in no case 
        shall the rent be below basic rent. For plans of action 
        approved for capital grants under the Low-Income Housing 
        Preservation and Resident Homeownership Act of 1990 or the 
        provisions of the Emergency Low Income Housing Preservation Act 
        of 1987, the rental charge for each dwelling unit shall be at 
        the basic rental charge or such greater amount, not exceeding 
        the lower of (i) the fair market rental charge determined 
        pursuant to this paragraph, or (ii) the actual rent paid for a 
        comparable unit in comparable unassisted housing in the market 
        area in which the housing is located, as represents 30 percent 
        of the tenant's adjusted income, but in no case shall the rent 
        be below basic rent.''.

SEC. 512. PROSPECTIVE APPLICATION OF GOLD CLAUSES.

    Section 5118(d)(2) of title 31, United States Code, is amended by 
adding at the end the following new sentence: ``This paragraph shall 
continue to apply to any obligations issued on or before October 27, 
1977, notwithstanding any assignment and/or novation of such 
obligations after such date, unless all parties to the assignment and/
or novation specifically agree to include a gold clause in the new 
agreement.''.

SEC. 513. MOVING TO WORK DEMONSTRATION FOR THE 21ST CENTURY.

    (a) Purpose.--The purpose of this demonstration under this section 
is to give local housing and management authorities and the Secretary 
of Housing and Urban Development the flexibility to design and test 
various approaches for providing and administering housing assistance 
that--
            (1) reduce cost and achieve greater cost effectiveness in 
        Federal expenditures;
            (2) give incentives to families with children where the 
        head of household is working, seeking work, or preparing for 
        work by participating in job training, educational programs, or 
        programs that assist people to obtain employment and become 
        economically self-sufficient; and
            (3) increase housing choices for low-income families.
    (b) Program Authority.--
            (1) Selection of participants.--The Secretary of Housing 
        and Urban Development shall conduct a demonstration program 
        under this section beginning in fiscal year 1997 under which 
        local housing and management authorities (including Indian 
        housing authorities) administering the public or Indian housing 
        program and the choice-based rental assistance program under 
        title III of this Act shall be selected by the Secretary to 
        participate. In the first year of the demonstration, the 
        Secretary shall select 100 local housing and management 
        authorities to participate. In each of the next 2 years of the 
        demonstration, the Secretary shall select 100 additional local 
        housing and management authorities per year to participate. 
        During the first year of the demonstration, the Secretary shall 
        select for participation any authority that complies with the 
        requirement under subsection (d) and owns or administers more 
        than 99,999 dwelling units of public housing.
            (2) Training.--The Secretary, in consultation with 
        representatives of public housing interests, shall provide 
        training and technical assistance during the demonstration and 
        conduct detailed evaluations of up to 30 such agencies in an 
        effort to identify replicable program models promoting the 
        purpose of the demonstration.
            (3) Use of housing assistance.--Under the demonstration, 
        notwithstanding any provision of this Act, an authority may 
        combine operating assistance provided under section 9 of the 
        United States Housing Act of 1937 (as in effect before the date 
        of the enactment of this Act), modernization assistance 
        provided under section 14 of such Act, assistance provided 
        under section 8 of such Act for the certificate and voucher 
        programs, assistance for pubic housing provided under title II 
        of this Act, and choice-based rental assistance provided under 
        title III of this Act, to provide housing assistance for low-
        income families and services to facilitate the transition to 
        work on such terms and conditions as the authority may propose.
    (c) Application.--An application to participate in the 
demonstration--
            (1) shall request authority to combine assistance refereed 
        to in subsection (b)(3);
            (2) shall be submitted only after the local housing and 
        management authority provides for citizen participation through 
        a public hearing and, if appropriate, other means;
            (3) shall include a plan developed by the authority that 
        takes into account comments from the public hearing and any 
        other public comments on the proposed program, and comments 
        from current and prospective residents who would be affected, 
        and that includes criteria for--
                    (A) establishing a reasonable rent policy, which 
                shall be designed to encourage employment and self-
                sufficiency by participating families, consistent with 
                the purpose of this demonstration, such as by excluding 
                some or all of a family's earned income for purposes of 
                determining rent; and
                    (B) assuring that housing assisted under the 
                demonstration program meets housing quality standards 
                established or approved by the Secretary; and
            (4) may request assistance for training and technical 
        assistance to assist with design of the demonstration and to 
        participate in a detailed evaluation.
    (d) Selection Criteria.--In selecting among applications, the 
Secretary shall take into account the potential of each authority to 
plan and carry out a program under the demonstration and other 
appropriate factors as reasonably determined by the Secretary. An 
authority shall be eligible to participate in any fiscal year only if 
the most recent score for the authority under the public housing 
management assessment program under section 6(j) of the United States 
Housing Act of 1937 (as in effect before the date of the enactment of 
this Act) is 90 or greater.
    (e) Applicability of Certain Provisions.--
            (1) Section 261 of this Act shall continue to apply to 
        public housing notwithstanding any use of the housing under 
        this demonstration.
            (2) Section 113 of this Act shall apply to housing assisted 
        under the demonstration, other than housing assisted solely due 
        to occupancy by families receiving tenant-based assistance.
    (f) Effect on Program Allocations.--The amount of assistance 
received under titles II and III by a local housing and management 
authority participating in the demonstration under this section shall 
not be diminished by its participation.
    (g) Records, Reports, and Audits.--
            (1) Keeping of records.--Each authority shall keep such 
        records as the Secretary may prescribe as reasonably necessary 
        to disclose the amounts and the disposition of amounts under 
        this demonstration, to ensure compliance with the requirements 
        of this section, and to measure performance.
            (2) Reports.--Each authority shall submit to the Secretary 
        a report, or series of reports, in a form and at a time 
        specified by the Secretary. Each report shall--
                    (A) document the use of funds made available under 
                this section;
                    (B) provide such data as the Secretary may request 
                to assist the Secretary in assessing the demonstration; 
                and
                    (C) describe and analyze the effect of assisted 
                activities in addressing the objectives of this part.
            (3) Access to documents by the secretary.--The Secretary 
        shall have access for the purpose of audit and examination to 
        any books, documents, papers, and records that are pertinent to 
        assistance in connection with, and the requirements of, this 
        section.
            (4) Access to documents by the comptroller general.--The 
        Comptroller General of the United States, or any of the duly 
        authorized representatives of the Comptroller General, shall 
        have access for the purpose of audit and examination to any 
        books, documents, papers, and records that are pertinent to 
        assistance in connection with, and the requirements of, this 
        section.
    (h) Evaluation and Report.--
            (1) Consultation with lhma and family representatives.--In 
        making assessments throughout the demonstration, the Secretary 
        shall consult with representatives of local housing and 
        management authorities and residents.
            (2) Report to congress.--Not later than 180 days after the 
        end of the third year of the demonstration, the Secretary shall 
        submit to the Congress a report evaluating the programs carried 
        out under the emonstration. The report shall also include 
        findings and recommendations for any appropriate legislative 
        action.

SEC. 514. OCCUPANCY SCREENING AND EVICTIONS FROM FEDERALLY ASSISTED 
              HOUSING.

    (a) Occupancy Screening.--Section 642 of the Housing and Community 
Development Act of 1992 (42 U.S.C. 13602)--
            (1) by inserting ``(a) General Criteria.--'' before ``In''; 
        and
            (2) by adding at the end the following new subsections:
    ``(b) Authority to Deny Occupancy for Criminal Offenders.--In 
selecting tenants for occupancy of dwelling units in federally assisted 
housing, if the owner of such housing determines that an applicant for 
occupancy in the housing or any member of the applicant's household is 
or was, during the preceding 3 years, engaged in any activity described 
in paragraph (2)(C) of section 645, the owner may--
            ``(1) deny such applicant occupancy and consider the 
        applicant (for purposes of any waiting list) as not having 
        applied for such occupancy ; and
            ``(2) after the expiration of the 3-year period beginning 
        upon such activity, require the applicant, as a condition of 
        occupancy in the housing or application for occupancy in the 
        housing, to submit to the owner evidence sufficient (as the 
        Secretary shall by regulation provide) to ensure that the 
        individual or individuals in the applicant's household who 
        engaged in criminal activity for which denial was made under 
        paragraph (1) have not engaged in any criminal activity during 
        such 3-year period.
    ``(c) Authority to Require Access to Criminal Records.--An owner of 
federally assisted housing may require, as a condition of providing 
occupancy in a dwelling unit in such housing to an applicant for 
occupancy and the members of the applicant's household, that each adult 
member of the household provide the owner with a signed, written 
authorization for the owner to obtain records described in section 
646(a) regarding such member of the household from the National Crime 
Information Center, police departments, and other law enforcement 
agencies.
    ``(d) Definition.--For purposes of subsections (b) and (c), the 
term `federally assisted housing' has the meaning given the term by 
this title, except that the term does not include housing that only 
meets the requirements of section 683(2)(E).''.
    (b) Termination of Tenancy.--Subtitle C of title VI of the Housing 
and Community Development Act of 1992 (42 U.S.C. 13601 et seq.) is 
amended by adding at the end the following new section:

``SEC. 645. TERMINATION OF TENANCY.

    ``Each lease for a dwelling unit in federally assisted housing (as 
such term is defined in section 642(d)) shall provide that--
            ``(1) the owner may not terminate the tenancy except for 
        violation of the terms and conditions of the lease, violation 
        of applicable Federal, State, or local law, or other good 
        cause; and
            ``(2) any activity, engaged in by the tenant, any member of 
        the tenant's household, or any guest or other person under the 
        tenant's control, that--
                    ``(A) threatens the health or safety of, or right 
                to peaceful enjoyment of the premises by, other tenants 
                or employees of the owner or other manager of the 
                housing,
                    ``(B) threatens the health or safety of, or right 
                to peaceful enjoyment of their residences by, persons 
                residing in the immediate vicinity of the premises, or
                    ``(C) is criminal activity (including drug-related 
                criminal activity) on or off the premises,
        shall be cause for termination of tenancy.''.
    (c) Availability of Criminal Records for Tenant Screening and 
Eviction.--Subtitle C of title VI of the Housing and Community 
Development Act of 1992 (42 U.S.C. 13601 et seq.) is amended adding 
after section 645 (as added by subsection (b) of this section) the 
following new section:

``SEC. 646. AVAILABILITY OF RECORDS.

    ``(a) In General.--
            ``(1) Provision of information.--Notwithstanding any other 
        provision of law other than paragraph (2), upon the request of 
        an owner of federally assisted housing, the National Crime 
        Information Center, a police department, and any other law 
        enforcement agency shall provide to the owner of federally 
        assisted housing information regarding the criminal conviction 
        records of an adult applicant for, or tenants of, the federally 
        assisted housing for purposes of applicant screening, lease 
        enforcement, and eviction, but only if the owner requests such 
        information and presents to such Center, department, or agency 
        with a written authorization, signed by such applicant, for the 
        release of such information to such owner.
            ``(2) Exception.--The information provided under paragraph 
        (1) may not include any information regarding any criminal 
        conviction of an applicant or resident for any act (or failure 
        to act) for which the applicant or resident was not treated as 
        an adult under the laws of the convicting jurisdiction.
    ``(b) Confidentiality.--An owner receiving information under this 
section may use such information only for the purposes provided in this 
section and such information may not be disclosed to any person who is 
not an officer or employee of the owner. The Secretary shall, by 
regulation, establish procedures necessary to ensure that information 
provided under this section to an owner is used, and confidentiality of 
such information is maintained, as required under this section.
    ``(c) Opportunity to Dispute.--Before an adverse action is taken 
with regard to assistance for federally assisted housing on the basis 
of a criminal record, the owner shall provide the tenant or applicant 
with a copy of the criminal record and an opportunity to dispute the 
accuracy and relevance of that record.
    ``(d) Fee.--An owner of federally assisted housing may be charged a 
reasonable fee for information provided under subsection (a).
    ``(e) Records Management.--Each owner of federally assisted housing 
that receives criminal record information under this section shall 
establish and implement a system of records management that ensures 
that any criminal record received by the owner is--
            ``(1) maintained confidentially;
            ``(2) not misused or improperly disseminated; and
            ``(3) destroyed, once the purpose for which the record was 
        requested has been accomplished.
    ``(f) Penalty.--Any person who knowingly and willfully requests or 
obtains any information concerning an applicant for, or resident of, 
federally assisted housing pursuant to the authority under this section 
under false pretenses, or any person who knowingly and willfully 
discloses any such information in any manner to any individual not 
entitled under any law to receive it, shall be guilty of a misdemeanor 
and fined not more than $5,000. The term `person' as used in this 
subsection shall include an officer or employee of any local housing 
and management authority.
    ``(g) Civil action.--Any applicant for, or resident of, federally 
assisted housing affected by (1) a negligent or knowing disclosure of 
information referred to in this section about such person by an officer 
or employee of any owner, which disclosure is not authorized by this 
section, or (2) any other negligent or knowing action that is 
inconsistent with this section, may bring a civil action for damages 
and such other relief as may be appropriate against any owner 
responsible for such unauthorized action. The district court of the 
United States in the district in which the affected applicant or 
resident resides, in which such unauthorized action occurred, or in 
which the officer or employee alleged to be responsible for any such 
unauthorized action resides, shall have jurisdiction in such matters. 
Appropriate relief that may be ordered by such district courts shall 
include reasonable attorney's fees and other litigation costs.
    ``(h) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Adult.--The term `adult' means a person who is 18 
        years of age or older, or who has been convicted of a crime as 
        an adult under any Federal, State, or tribal law.
            ``(2) Federally assisted housing.--The term `federally 
        assisted housing' has the meaning given the term by this title, 
        except that the term does not include housing that only meets 
        the requirements of section 683(2)(E).''.
    (d) Definitions.--Section 683 of the Housing and Community 
Development Act of 1992 (42 U.S.C. 13643) is amended--
            (1) in paragraph (2)--
                    (A) in subparagraph (A), by striking ``section 3(b) 
                of the United States Housing Act of 1937'' and 
                inserting ``section 102 of the United States Housing 
                Act of 1996'';
                    (B) in subparagraph (B), by inserting before the 
                semicolon at the end the following; ``(as in effect 
                before the enactment of the United States Housing Act 
                of 1996)'';
                    (C) in subparagraph (F), by striking ``and'' at the 
                end;
                    (D) in subparagraph (G), by striking the period at 
                the end and inserting ``; and''; and
                    (E) by adding at the end the following new 
                subparagraph:
                    ``(H) for purposes only of subsections (b) and (c) 
                of sections 642, and section 645 and 646, housing 
                assisted under section 515 of the Housing Act of 
                1949.'';
            (2) in paragraph (4), by striking ``public housing agency'' 
        and inserting ``local housing and management authority''; and
            (3) by adding at the end the following new paragraph:
            ``(6) Drug-related criminal activity.--The term `drug-
        related criminal activity' means the illegal manufacture, sale, 
        distribution, use, or possession with intent to manufacture, 
        sell, distribute, or use, of a controlled substance (as defined 
        in section 102 of the Controlled Substances Act).''.

SEC. 515. USE OF AMERICAN PRODUCTS.

    (a) Purchase of American-Made Equipment and Products.--It is the 
sense of the Congress that, to the greatest extent practicable, all 
equipment and products purchased with funds made available in this Act 
should be American made.
    (b) Notice Requirement.--In providing financial assistance to, or 
entering into any contract with, any entity using funds made available 
in this Act, the head of each Federal agency, to the greatest extent 
practicable, shall provide to such entity a notice describing the 
statement made in subsection (a) by the Congress.

SEC. 516. LIMITATION ON EXTENT OF USE OF LOAN GUARANTEES FOR HOUSING 
              PURPOSES.

    Section 108 of the Housing and Community Development Act of 1974 
(42 U.S.C. 5308) is amended by inserting after subsection (h) the 
following new section:
    ``(i) Limitation on Use.--Of any amounts obtained from notes or 
other obligations issued by an eligible public entity or public agency 
designated by an eligible public entity and guaranteed under this 
section pursuant to an application for a guarantee submitted after the 
date of the enactment of the Housing and Community Development Act of 
1992, the aggregate amount used for the purposes described in clauses 
(2) and (4) of subsection (a), and for other housing activities under 
the purposes described in clauses (1) and (3) of subsection (a), may 
not exceed 50 percent of such amounts obtained by the eligible public 
entity or agency.''.

SEC. 517. CONSULTATION WITH AFFECTED AREAS IN SETTLEMENT OF LITIGATION.

    In negotiating any settlement of, or consent decree for, any 
litigation regarding public housing or rental assistance (under title 
III of this Act or the United States Housing Act of 1937, as in effect 
before the enactment of this Act) that involves the Secretary and any 
local housing and management authority or any unit of general local 
government, the Secretary shall consult with any units of general local 
government and local housing and management authorities having 
jurisdictions that are adjacent to the jurisdiction of the local 
housing and management authority involved.

   TITLE VI--NATIONAL COMMISSION ON HOUSING ASSISTANCE PROGRAMS COST

SEC. 601. ESTABLISHMENT.

    There is established a commission to be known as the National 
Commission on Housing Assistance Programs Cost (in this title referred 
to as the ``Commission'').

SEC. 602. MEMBERSHIP.

    (a) Appointment.--The Commission shall be composed of 9 members, 
who shall be appointed not later than 90 days after the date of the 
enactment of this Act. The members shall be as follows:
            (1) 3 members to be appointed by the Secretary of Housing 
        and Urban Development;
            (2) 3 members appointed by the Chairman and Ranking 
        Minority Member of the Subcommittee on Housing Opportunity and 
        Community Development of the Committee on Banking, Housing, and 
        Urban Affairs of the Senate and the Chairman and Ranking 
        Minority Member of the Subcommittee on VA, HUD, and Independent 
        Agencies of the Committee on Appropriations of the Senate; and
            (3) 3 members appointed by the Chairman and Ranking 
        Minority Member of the Subcommittee on Housing and Community 
        Opportunity of the Committee on Banking and Financial Services 
        of the House of Representatives and the Chairman and Ranking 
        Minority Member of the Subcommittee on VA, HUD, and Independent 
        Agencies of the Committee on Appropriations of the House of 
        Representatives.
    (b) Qualifications.--The 3 members of the Commission appointed 
under each of paragraphs (1), (2), and (3) of subsection (a)--
            (1) shall all be experts in the field of accounting, 
        economics, cost analysis, finance, or management; and
            (2) shall include--
                    (A) 1 individual who is an elected public official 
                at the State or local level;
                    (B) 1 individual who is a distinguished academic 
                engaged in teaching or research;
                    (C) 1 individual who is a business leader, 
                financial officer, management or accounting expert.
In selecting members of the Commission for appointment, the individuals 
appointing shall ensure that the members selected can analyze the 
Federal assisted housing programs (as such term is defined in section 
604(a)) on an objective basis and that no member of the Commission has 
a personal financial or business interest in any such program.

SEC. 603. ORGANIZATION.

    (a) Chairperson.--The Commission shall elect a chairperson from 
among members of the Commission.
    (b) Quorum.--A majority of the members of the Commission shall 
constitute a quorum for the transaction of business, but a lesser 
number may hold hearings.
    (c) Voting.--Each member of the Commission shall be entitled to 1 
vote, which shall be equal to the vote of every other member of the 
Commission.
    (d) Vacancies.--Any vacancy on the Commission shall not affect its 
powers, but shall be filled in the manner in which the original 
appointment was made.
    (e) Prohibition on Additional Pay.--Members of the Commission shall 
serve without compensation.
    (f) Travel Expenses.--Each member shall receive travel expenses, 
including per diem in lieu of subsistence, in accordance with sections 
5702 and 5703 of title 5, United States Code.

SEC. 604. FUNCTIONS.

    (a) In General.--The Commission shall --
            (1) analyze the full cost to the Federal Government, public 
        housing agencies, State and local governments, and other 
        parties, per assisted household, of the Federal assisted 
        housing programs, and shall conduct the analysis on a 
        nationwide and regional basis and in a manner such that 
        accurate per unit cost comparisons may be made between Federal 
        assisted housing programs; and
            (2) estimate the future liability that will be borne by 
        taxpayers as a result of activities under the Federal assisted 
        housing programs before the date of the enactment of this Act.
    (b) Definition.--For purposes of this section, the term ``Federal 
assisted housing programs'' means--
            (1) the public housing program under the United States 
        Housing Act of 1937 (as in effect before the date of the 
        enactment of this Act);
            (2) the public housing program under title II of this Act;
            (3) the certificate program for rental assistance under 
        section 8(b)(1) of the United States Housing Act of 1937 (as in 
        effect before the date of the enactment of this Act);
            (4) the voucher program for rental assistance under section 
        8(o) of the United States Housing Act of 1937 (as in effect 
        before the date of the enactment of this Act);
            (5) the programs for project-based assistance under section 
        8 of the United States Housing Act of 1937 (as in effect before 
        the date of the enactment of this Act);
            (6) the rental assistance payments program under section 
        521(a)(2)(A) of the Housing Act of 1949;
            (7) the program for housing for the elderly under section 
        202 of the Housing Act of 1959;
            (8) the program for housing for persons with disabilities 
        under section 811 of the Cranston-Gonzalez National Affordable 
        Housing Act;
            (9) the program for financing housing by a loan or mortgage 
        insured under section 221(d)(3) of the National Housing Act 
        that bears interest at a rate determined under the proviso of 
        section 221(d)(5) of such Act;
            (10) the program under section 236 of the National Housing 
        Act;
            (11) the program for constructed or substantial 
        rehabilitation under section 8(b)(2) of the United States 
        Housing Act of 1937, as in effect before October 1, 1983; and
            (12) any other program for housing assistance administered 
        by the Secretary of Housing and Urban Development or the 
        Secretary of Agriculture, under which occupancy in the housing 
        assisted or housing assistance provided is based on income, as 
        the Commission may determine.
    (c) Final Report.--Not later than 18 months after the Commission is 
established pursuant to section 602(a), the Commission shall submit to 
the Secretary and to the Congress a final report which shall contain 
the results of the analysis and estimates required under subsection 
(a).
    (c) Limitation.--The Commission may not make any recommendations 
regarding Federal housing policy.

SEC. 605. POWERS.

    (a) Hearings.--The Commission may, for the purpose of carrying out 
this title, hold such hearings and sit and act at such times and places 
as the Commission may find advisable.
    (b) Rules and Regulations.--The Commission may adopt such rules and 
regulations as may be necessary to establish its procedures and to 
govern the manner of its operations, organization and personnel.
    (c) Assistance From Federal Agencies.--
            (1) Information.--The Commission may request from any 
        department or agency of the United States, and such department 
        or agency shall provide to the Commission in a timely fashion, 
        such data and information as the Commission may require for 
        carrying out this title, including--
                    (A) local housing management plans submitted to the 
                Secretary of Housing and Urban Development under 
                section 107;
                    (B) block grant contracts under title II;
                    (C) contracts under section 302 for assistance 
                amounts under title III; and
                    (D) audits submitted to the Secretary of Housing 
                and Urban Development under section 432.
            (2) Administrative support.--The General Services 
        Administration shall provide to the Commission, on a 
        reimbursable basis, such administrative support services as the 
        Commission may request.
            (3) Personnel details and technical assistance.--Upon the 
        request of the chairperson of the Commission, the Secretary of 
        Housing and Urban Development shall, to the extent possible and 
        subject to the discretion of the Secretary--
                    (A) detail any of the personnel of the Department 
                of Housing and Urban Development, on a nonreimbursable 
                basis, to assist the Commission in carrying out its 
                duties under this title; and
                    (B) provide the Commission with technical 
                assistance in carrying out its duties under this title.
    (d) Information From Local Housing and Management Authorities.--The 
Commission shall have access, for the purpose of carrying out its 
functions under this title, to any books, documents, papers, and 
records of a local housing and management authority that are pertinent 
to this Act and assistance received pursuant to this Act.
    (e) Mails.--The Commission may use the United States mails in the 
same manner and under the same conditions as other Federal agencies.
    (f) Contracting.--The Commission may, to the extent and in such 
amounts as are provided in appropriations Acts, enter into contracts 
necessary to carry out its duties under this title.
    (g) Staff.--
            (1) Executive director.--The Commission shall appoint an 
        executive director of the Commission who shall be compensated 
        at a rate fixed by the Commission, but which shall not exceed 
        the rate established for level V of the Executive Schedule 
        under title 5, United States Code.
            (2) Personnel.--In addition to the executive director, the 
        Commission may appoint and fix the compensation of such 
        personnel as it deems advisable, in accordance with the 
        provisions of title 5, United States Code, governing 
        appointments to the competitive service, and the provisions of 
        chapter 51 and subchapter III of chapter 53 of such title, 
        relating to classification and General Schedule pay rates.
            (3) Limitation.--Paragraphs (1) and (2) shall be effective 
        only to the extent and in such amounts as are provided in 
        appropriations Acts.
            (4) Selection criteria.--In appointing an executive 
        director and staff, the Commission shall ensure that the 
        individuals appointed can conduct any functions they may have 
        regarding the Federal assisted housing programs (as such term 
        is defined in section 604(a)) on an objective basis and that no 
        such individual has a personal financial or business interest 
        in any such program.
    (h) Advisory Committee.--The Commission shall be considered an 
advisory committee within the meaning of the Federal Advisory Committee 
Act (5 U.S.C. App.).

SEC. 606. FUNDING.

    Of any amounts made available for policy, research, and development 
activities of the Department of Housing and Urban Development, there 
shall be available for carrying out this title $750,000, for fiscal 
year 1997. Any such amounts so appropriated shall remain available 
until expended.

SEC. 607. SUNSET.

    The Commission shall terminate upon the expiration of the 18-month 
period beginning upon the date that the Commission is established 
pursuant to section 602(a).

             TITLE VII--NATIVE AMERICAN HOUSING ASSISTANCE

SECTION 701. SHORT TITLE.

    This title may be cited as the ``Native American Housing Assistance 
and Self-Determination Act of 1996''.

SEC. 702. CONGRESSIONAL FINDINGS.

    The Congress hereby finds that--
            (1) the Federal Government has a responsibility to promote 
        the general welfare of the Nation--
                    (A) by using Federal resources to aid families and 
                individuals seeking affordable homes that are safe, 
                clean, and healthy and, in particular, assisting 
                responsible, deserving citizens who cannot provide 
                fully for themselves because of temporary circumstances 
                or factors beyond their control;
                    (B) by working to ensure a thriving national 
                economy and a strong private housing market; and
                    (C) by developing effective partnerships among the 
                Federal Government, State and local governments, and 
                private entities that allow government to accept 
                responsibility for fostering the development of a 
                healthy marketplace and allow families to prosper 
                without government involvement in their day-to-day 
                activities;
            (2) there exists a unique relationship between the 
        Government of the United States and the governments of Indian 
        tribes and a unique Federal responsibility to Indian people;
            (3) the Constitution of the United States invests the 
        Congress with plenary power over the field of Indian affairs, 
        and through treaties, statutes, and historical relations with 
        Indian tribes, the United States has undertaken a trust 
        responsibility to protect Indian tribes;
            (4) the Congress, through treaties, statutes, and the 
        general course of dealing with Indian tribes, has assumed the 
        responsibility for the protection and preservation of Indian 
        tribes and for working with tribes and their members to improve 
        their socio-economic status so that they are able to take 
        greater responsibility for their own economic condition;
            (5) providing affordable and healthy homes is an essential 
        element in the special role of the United States in helping 
        tribes and their members to achieve a socio-economic status 
        comparable to their non-Indian neighbors;
            (6) the need for affordable and healthy homes on Indian 
        reservations, in Indian communities, and in Native Alaskan 
        villages is acute and the Federal Government should work not 
        only to provide housing assistance, but also, to the extent 
        practicable, to assist in the development of private housing 
        finance mechanisms on Indian lands to achieve the goals of 
        economic self-sufficiency and self-determination for tribes and 
        their members; and
            (7) Federal assistance to meet these responsibilities 
        should be provided in a manner that recognizes the right of 
        tribal self-governance by making such assistance available 
        directly to the tribes or tribally designated entities.

SEC. 703. ADMINISTRATION THROUGH OFFICE OF NATIVE AMERICAN PROGRAMS.

    The Secretary of Housing and Urban Development shall carry out this 
title through the Office of Native American Programs of the Department 
of Housing and Urban Development.

SEC. 704. DEFINITIONS.

    For purposes of this title, the following definitions shall apply:
            (1) Affordable housing.--The term ``affordable housing'' 
        means housing that complies with the requirements for 
        affordable housing under subtitle B. The term includes 
        permanent housing for homeless persons who are persons with 
        disabilities, transitional housing, and single room occupancy 
        housing.
            (2) Families and persons.--
                    (A) Single persons.--The term ``families'' includes 
                families consisting of a single person in the case of 
                (i) an elderly person, (ii) a disabled person, (iii) a 
                displaced person, (iv) the remaining members of a 
                tenant family, and (v) any other single persons.
                    (B) Families.--The term ``families'' includes 
                families with children and, in the cases of elderly 
                families, near-elderly families, and disabled families, 
                means families whose heads (or their spouses), or whose 
                sole members, are elderly, near-elderly, or persons 
                with disabilities, respectively. The term includes, in 
                the cases of elderly families, near-elderly families, 
                and disabled families, 2 or more elderly persons, near-
                elderly persons, or persons with disabilities living 
                together, and 1 or more such persons living with 1 or 
                more persons determined under the regulations of the 
                Secretary to be essential to their care or well-being.
                    (C) Absence of children.--The temporary absence of 
                a child from the home due to placement in foster care 
                shall not be considered in determining family 
                composition and family size for purposes of this title.
                    (D) Elderly person.--The term ``elderly person'' 
                means a person who is at least 62 years of age.
                    (E) Person with disabilities.--The term ``person 
                with disabilities'' means a person who--
                            (i) has a disability as defined in section 
                        223 of the Social Security Act,
                            (ii) is determined, pursuant to regulations 
                        issued by the Secretary, to have a physical, 
                        mental, or emotional impairment which (I) is 
                        expected to be of long-continued and indefinite 
                        duration, (II) substantially impedes his or her 
                        ability to live independently, and (III) is of 
                        such a nature that such ability could be 
                        improved by more suitable housing conditions, 
                        or
                            (iii) has a developmental disability as 
                        defined in section 102 of the Developmental 
                        Disabilities Assistance and Bill of Rights Act.
                Such term shall not exclude persons who have the 
                disease of acquired immunodeficiency syndrome or any 
                conditions arising from the etiologic agent for 
                acquired immunodeficiency syndrome.
                    (F) Displaced person.--The term ``displaced 
                person'' means a person displaced by governmental 
                action, or a person whose dwelling has been extensively 
                damaged or destroyed as a result of a disaster declared 
                or otherwise formally recognized pursuant to Federal 
                disaster relief laws.
                    (G) Near-elderly person.--The term ``near-elderly 
                person'' means a person who is at least 50 years of age 
                but below the age of 62.
            (3) Grant beneficiary.--The term ``grant beneficiary'' 
        means the Indian tribe or tribes on behalf of which a grant is 
        made under this title to a recipient.
            (4) Indian.--The term ``Indian'' means any person who is a 
        member of an Indian tribe.
            (5) Indian area.--The term ``Indian area'' means the area 
        within which a tribally designated housing entity is authorized 
to provide assistance under this title for affordable housing.
            (6) Indian tribe.--The term ``Indian tribe'' means--
                    (A) any Indian tribe, band, nation, or other 
                organized group or community of Indians, including any 
                Alaska Native village or regional or village 
                corporation as defined in or established pursuant to 
                the Alaska Native Claims Settlement Act, which is 
                recognized as eligible for the special programs and 
                services provided by the United States to Indians 
                because of their status as Indians pursuant to the 
                Indian Self-Determination and Education Assistance Act 
                of 1975; and
                    (B) any tribe, band, nation, pueblo, village, or 
                community that--
                            (i) has been recognized as an Indian tribe 
                        by any State; and
                            (ii) for which an Indian housing authority 
                        is eligible, on the date of the enactment of 
                        this title, to enter into a contract with the 
                        Secretary pursuant to the United States Housing 
                        Act of 1937.
            (7) Local housing plan.--The term ``local housing plan'' 
        means a plan under section 712.
            (8) Low-income family.--The term ``low-income family'' 
        means a family whose income does not exceed 80 percent of the 
        median income for the area, except that the Secretary may, for 
        purposes of this paragraph, establish income ceilings higher or 
        lower than 80 percent of the median for the area on the basis 
        of the authority's findings that such variations are necessary 
        because of unusually high or low family incomes.
            (9) Median income.--The term ``median income'' means, with 
        respect to an area that is an Indian area, the greater of--
                    (A) the median income for the Indian area, which 
                the Secretary shall determine; or
                    (B) the median income for the United States.
            (10) Recipient.--The term ``recipient'' means the entity 
        for an Indian tribe that is authorized to receive grant amounts 
        under this title on behalf of the tribe, which may only be the 
        tribe or the tribally designated housing entity for the tribe.
            (11) Tribally designated housing entity.--The terms 
        ``tribally designated housing entity'' and ``housing entity'' 
        have the following meaning:
                    (A) Existing iha's.--For any Indian tribe that has 
                not taken action under subparagraph (B) and for which 
                an Indian housing authority--
                            (i) was established for purposes of the 
                        United States Housing Act of 1937 before the 
                        date of the enactment of this title that meets 
                        the requirements under the United States 
                        Housing Act of 1937,
                            (ii) is acting upon such date of enactment 
                        as the Indian housing authority for the tribe, 
                        and
                            (iii) is not an Indian tribe for purposes 
                        of this title,
                the terms mean such Indian housing authority.
                    (B) Other entities.--For any Indian tribe that, 
                pursuant to this Act, authorizes an entity other than 
                the tribal government to receive grant amounts and 
                provide assistance under this title for affordable 
                housing for Indians, which entity is established--
                            (i) by exercise of the power of self-
                        government of an Indian tribe independent of 
                        State law, or
                            (ii) by operation of State law providing 
                        specifically for housing authorities or housing 
                        entities for Indians, including regional 
                        housing authorities in the State of Alaska,
                the terms mean such entity.
        A tribally designated housing entity may be authorized or 
        established by one or more Indian tribes to act on behalf of 
        each such tribe authorizing or establishing the housing entity. 
        Nothing in this title may be construed to affect the existence, 
        or the ability to operate, of any Indian housing authority 
        established before the date of the enactment of this title by a 
        State-recognized tribe, band, nation, pueblo, village, or 
        community of Indian or Alaska Natives that is not an Indian 
        tribe for purposes of this title.
            (12) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development, except as otherwise specified 
        in this title.

            Subtitle A--Block Grants and Grant Requirements

SEC. 711. BLOCK GRANTS.

    (a) Authority.--For each fiscal year, the Secretary shall (to the 
extent amounts are made available to carry out this title) make grants 
under this section on behalf of Indian tribes to carry out affordable 
housing activities. Under such a grant on behalf of an Indian tribe, 
the Secretary shall provide the grant amounts for the tribe directly to 
the recipient for the tribe.
    (b) Condition of Grant.--
            (1) In general.--The Secretary may make a grant under this 
        title on behalf of an Indian tribe for a fiscal year only if--
                    (A) the Indian tribe has submitted to the Secretary 
                a local housing plan for such fiscal year under section 
                712; and
                    (B) the plan has been determined under section 713 
                to comply with the requirements of section 712.
            (2) Waiver.--The Secretary may waive the applicability of 
        the requirements under paragraph (1), in whole or in part, if 
        the Secretary finds that an Indian tribe has not complied or 
        can not complied with such requirements because of 
        circumstances beyond the control of the tribe.
    (c) Amount.--Except as otherwise provided under subtitle B, the 
amount of a grant under this section to a recipient for a fiscal year 
shall be--
            (1) in the case of a recipient whose grant beneficiary is a 
        single Indian tribe, the amount of the allocation under section 
        741 for the Indian tribe; and
            (2) in the case of a recipient whose grant beneficiary is 
        more than 1 Indian tribe, the sum of the amounts of the 
        allocations under section 741 for each such Indian tribe.
    (d) Use for Affordable Housing Activities.--Except as provided in 
subsection (f), amounts provided under a grant under this section may 
be used only for affordable housing activities under subtitle B.
    (e) Effectuation of LHP.--Except as provided in subsection (f), 
amounts provided under a grant under this section may be used only for 
affordable housing activities that are consistent with the approved 
local housing plan under section 713 for the grant beneficiary on whose 
behalf the grant is made.
    (f) Administrative Expenses.--
            (1) In general.--The Secretary shall, by regulation, 
        authorize each recipient to use a percentage of any grant 
        amounts received under this title for any administrative and 
        planning expenses of the recipient relating to carrying out 
        this title and activities assisted with such amounts, which may 
        include costs for salaries of individuals engaged in 
        administering and managing affordable housing activities 
        assisted with grant amounts provided under this title and 
        expenses of preparing a local housing plan under section 712.
            (2) Contents of regulations.--The regulations referred to 
        in paragraph (1) shall provide that--
                    (A) the Secretary shall, for each recipient, 
                establish a percentage referred to in paragraph (1) 
                based on the specific circumstances of the recipient 
                and the tribes served by the recipient; and
                    (B) the Secretary may review the percentage for a 
                recipient upon the written request of the recipient 
                specifying the need for such review or the initiative 
                of the Secretary and, pursuant to such review, may 
                revise the percentage established for the recipient.
    (g) Public-Private Partnerships.--Each recipient shall make all 
reasonable efforts, consistent with the purposes of this title, to 
maximize participation by the private sector, including nonprofit 
organizations and for-profit entities, in implementing the approved 
local housing plan for the tribe that is the grant beneficiary.

SEC. 712. LOCAL HOUSING PLANS.

    (a) In General.--
            (1) Submission.--The Secretary shall provide for an Indian 
        tribe to submit to the Secretary, for each fiscal year, a local 
        housing plan under this section for the tribe (or for the 
        tribally designated housing entity for a tribe to submit the 
        plan under subsection (e) for the tribe) and for the review of 
        such plans.
            (2) Locally driven national objectives.--A local housing 
        plan shall describe--
                    (A) the mission of the tribe with respect to 
                affordable housing or, in the case of a recipient that 
                is a tribally designated housing entity, the mission of 
                the housing entity;
                    (B) the goals, objectives, and policies of the 
                recipient to meet the housing needs of low-income 
                families in the jurisdiction of the housing entity, 
                which shall be designed to achieve the national 
                objectives under section 721(a); and
                    (C) how the locally established mission and 
                policies of the recipient are designed to achieve, and 
                are consistent with, the national objectives under 
                section 721(a).
    (b) 5-Year Plan.--Each local housing plan under this section for an 
Indian tribe shall contain, with respect to the 5-year period beginning 
with the fiscal year for which the plan is submitted, the following 
information:
            (1) Locally driven national objectives.--The information 
        described in subsection (a)(2).
            (2) Capital improvement overview.--If the recipient will 
        provide capital improvements for housing described in 
        subsection (c)(3) during such period, an overview of such 
        improvements, the rationale for such improvements, and an 
        analysis of how such improvements will enable the recipient to 
        meet its goals, objectives, and mission.
    (c) 1-year plan.--A local housing plan under this section for an 
Indian tribe shall contain the following information relating to the 
upcoming fiscal year for which the assistance under this title is to be 
made available:
            (1) Financial resources.--An operating budget for the 
        recipient for the tribe that includes--
                    (A) identification and a description of the 
                financial resources reasonably available to the 
                recipient to carry out the purposes of this title, 
                including an explanation of how amounts made available 
                will leverage such additional resources; and
                    (B) the uses to which such resources will be 
                committed, including eligible and required affordable 
                housing activities under subtitle B to be assisted and 
                administrative expenses.
            (2) Affordable housing.--For the jurisdiction within which 
        the recipient is authorized to use assistance under this 
        title--
                    (A) a description of the estimated housing needs 
                and the need for assistance for very low-income and 
                moderate-income families;
                    (B) a description of the significant 
                characteristics of the housing market, indicating how 
                such characteristics will influence the use of amounts 
                made available under this title for rental assistance, 
                production of new units, rehabilitation of old units, 
                or acquisition of existing units;
                    (C) an description of the structure, means of 
                cooperation, and coordination between the recipient and 
                any units of general local government in the 
                development, submission, and implementation of their 
                housing plans, including a description of the 
                involvement of any private industries, nonprofit 
                organizations, and public institutions;
                    (D) a description of how the plan will address the 
                housing needs identified pursuant to subparagraph (A), 
                describing the reasons for allocation priorities, and 
                identify any obstacles to addressing underserved needs;
                    (E) a description of any homeownership programs of 
                the recipient to be carried out with respect to 
                affordable housing assisted under this title and the 
                requirements and assistance available under such 
                programs;
                    (F) a certification that the recipient will 
                maintain written records of the standards and 
                procedures under which the recipient will monitor 
                activities assisted under this title and ensure long-
                term compliance with the provisions of this title;
                    (G) a certification that the recipient will comply 
                with title II of the Civil Rights Act of 1968 in 
                carrying out this title, to the extent that such title 
                is applicable;
                    (H) a statement of the number of families for whom 
                the recipient will provide affordable housing using 
                grant amounts provided under this title;
                    (I) a statement of how the goals, programs, and 
                policies for producing and preserving affordable 
                housing will be coordinated with other programs and 
                services for which the recipient is responsible and the 
                extent to which they will reduce (or assist in 
                reducing) the number of households with incomes below 
                the poverty line; and
                    (J) a certification that the recipient has obtain 
                insurance coverage for any housing units that are owned 
                or operated by the tribe or the tribally designated 
                housing entity for the tribe and assisted with amounts 
                provided under this Act, in compliance with such 
                requirements as the Secretary may establish.
            (3) Indian housing developed under united states housing 
        act of 1937.--A plan describing how the recipient for the tribe 
        will comply with the requirements under section 723 relating to 
        low-income housing owned or operated by the housing entity that 
        was developed pursuant to a contract between the Secretary and 
        an Indian housing authority pursuant to the United States 
        Housing Act of 1937, which shall include--
                    (A) a certification that the recipient will 
                maintain a written record of the policies of the 
                recipient governing eligibility, admissions, and 
                occupancy of families with respect to dwelling units in 
                such housing;
                    (B) a certification that the recipient will 
                maintain a written record of policies of the recipient 
                governing rents charged for dwelling units in such 
                housing, including--
                            (i) the methods by which such rents are 
                        determined; and
                            (ii) an analysis of how such methods 
                        affect--
                                    (I) the ability of the recipient to 
                                provide affordable housing for low-
                                income families having a broad range of 
                                incomes;
                                    (II) the affordability of housing 
                                for families having incomes that do not 
                                exceed 30 percent of the median family 
                                income for the area; and
                                    (III) the availability of other 
                                financial resources to the recipient 
                                for use for such housing;
                    (C) a certification that the recipient will 
                maintain a written record of the standards and policies 
                of the recipient governing maintenance and management 
                of such housing, and management of the recipient with 
                respect to administration of such housing, including--
                            (i) housing quality standards;
                            (ii) routine and preventative maintenance 
                        policies;
                            (iii) emergency and disaster plans;
                            (iv) rent collection and security policies;
                            (v) priorities and improvements for 
                        management of the housing; and
                            (vi) priorities and improvements for 
                        management of the recipient, including 
                        improvement of electronic information systems 
                        to facilitate managerial capacity and 
                        efficiency;
                    (D) a plan describing--
                            (i) the capital improvements necessary to 
                        ensure long-term physical and social viability 
                        of such housing; and
                            (ii) the priorities of the recipient for 
                        capital improvements of such housing based on 
                        analysis of available financial resources, 
                        consultation with residents, and health and 
                        safety considerations;
                    (E) a description of any such housing to be 
                demolished or disposed of, a timetable for such 
                demolition or disposition, and any information required 
                under law with respect to such demolition or 
                disposition;
                    (F) a description of how the recipient will 
                coordinate with tribal and State welfare agencies to 
                ensure that residents of such housing will be provided 
                with access to resources to assist in obtaining 
                employment and achieving self-sufficiency; and
                    (G) a description of the requirements established 
                by the recipient that promote the safety of residents 
                of such housing, facilitate the housing entity 
                undertaking crime prevention measures (such as 
                community policing, where appropriate), allow resident 
                input and involvement, and allow for creative methods 
                to increase resident safety by coordinating crime 
                prevention efforts between the recipient and tribal or 
                local law enforcement officials.
            (4) Indian housing loan guarantees and other housing 
        assistance.--A description of how loan guarantees under section 
        184 of the Housing and Community Development Act of 1992, and 
        other housing assistance provided by the Federal Government for 
        Indian tribes (including grants, loans, and mortgage insurance) 
        will be used to help in meeting the needs for affordable 
        housing in the jurisdiction of the recipient.
            (5) Distribution of assistance.--A certification that the 
        recipient for the tribe will maintain a written record of--
                    (A) the geographical distribution (within the 
                jurisdiction of the recipient) of the use of grant 
                amounts and how such geographical distribution is 
                consistent with the geographical distribution of 
                housing need (within such jurisdiction); and
                    (B) the distribution of the use of such assistance 
                for various categories of housing and how use for such 
                various categories is consistent with the priorities of 
                housing need (within the jurisdiction of the 
                recipient).
    (d) Participation of Tribally Designated Housing Entity.--A plan 
under this section for an Indian tribe may be prepared and submitted on 
behalf of the tribe by the tribally designated housing entity for the 
tribe, but only if such plan contains a certification by the recognized 
tribal government of the grant beneficiary that such tribe has had an 
opportunity to review the plan and has authorized the submission of the 
plan by the housing entity.
    (e) Coordination of Plans.--A plan under this section may cover 
more than 1 Indian tribe, but only if the certification requirements 
under subsection (d) are complied with by each such grant beneficiary 
covered.
    (f) Plans for Small Tribes.--
            (1) Separate requirements.--The Secretary shall establish 
        requirements for submission of plans under this section and the 
        information to be included in such plans applicable to small 
        Indian tribes and small tribally designated housing entities. 
        Such requirements shall waive any requirements under this 
        section that the Secretary determines are burdensome or 
        unnecessary for such tribes and housing entities.
            (2) Small tribes.--The Secretary shall define small Indian 
        tribes and small tribally designated housing entities based on 
the number of dwelling units assisted under this subtitle by the tribe 
or housing entity or owned or operated pursuant to a contract under the 
United States Housing Act of 1937 between the Secretary and the Indian 
housing authority for the tribe.
    (g) Regulations.--The requirements relating to the contents of 
plans under this section shall be established by regulation, pursuant 
to section 716.

SEC. 713. REVIEW OF PLANS.

    (a) Review and Notice.--
            (1) Review.--The Secretary shall conduct a limited review 
        of each local housing plan submitted to the Secretary to ensure 
        that the plan complies with the requirements of section 712. 
        The Secretary shall have the discretion to review a plan only 
        to the extent that the Secretary considers review is necessary.
            (2) Notice.--The Secretary shall notify each Indian tribe 
        for which a plan is submitted and any tribally designated 
        housing entity for the tribe whether the plan complies with 
        such requirements not later than 45 days after receiving the 
        plan. If the Secretary does not notify the Indian tribe, as 
        required under this subsection and subsection (b), the plan 
        shall be considered, for purposes of this title, to have been 
        determined to comply with the requirements under section 712 
        and the tribe shall be considered to have been notified of 
        compliance upon the expiration of such 45-day period.
    (b) Notice of Reasons for Determination of Noncompliance.--If the 
Secretary determines that a plan, as submitted, does not comply with 
the requirements under section 712, the Secretary shall specify in the 
notice under subsection (a) the reasons for the noncompliance and any 
modifications necessary for the plan to meet the requirements under 
section 712.
    (c) Standards for Determination of Noncompliance.--The Secretary 
may determine that a plan does not comply with the requirements under 
section 712 only if--
            (1) the plan is not consistent with the national objectives 
        under section 721(a);
            (2) the plan is incomplete in significant matters required 
        under such section;
            (3) there is evidence available to the Secretary that 
        challenges, in a substantial manner, any information provided 
        in the plan;
            (4) the Secretary determines that the plan violates the 
        purposes of this title because it fails to provide affordable 
        housing that will be viable on a long-term basis at a 
        reasonable cost; or
            (5) the plan fails to adequately identify the capital 
        improvement needs for low-income housing owned or operated by 
        the Indian tribe that was developed pursuant to a contract 
        between the Secretary and an Indian housing authority pursuant 
        to the United States Housing Act of 1937.
    (d) Treatment of Existing Plans.--Notwithstanding any other 
provision of this title, a plan shall be considered to have been 
submitted for an Indian tribe if the appropriate Indian housing 
authority has submitted to the Secretary a comprehensive plan under 
section 14(e) of the United States Housing Act of 1937 (as in effect 
immediately before the enactment of this title) or under the 
comprehensive improvement assistance program under such section 14, and 
the Secretary has approved such plan, before January 1, 1997. The 
Secretary shall provide specific procedures and requirements for such 
tribes to amend such plans by submitting only such additional 
information as is necessary to comply with the requirements of section 
712.
    (e) Updates to Plan.--After a plan under section 712 has been 
submitted for an Indian tribe for any fiscal year, the tribe may comply 
with the provisions of such section for any succeeding fiscal year 
(with respect to information included for the 5-year period under 
section 712(b) or the 1-year period under section 712(c)) by submitting 
only such information regarding such changes as may be necessary to 
update the plan previously submitted.

SEC. 714. TREATMENT OF PROGRAM INCOME AND LABOR STANDARDS.

    (a) Program Income.--
            (1) Authority to retain.--Notwithstanding any other 
        provision of law, a recipient may retain any program income 
        that is realized from any grant amounts under this title if--
                    (A) such income was realized after the initial 
                disbursement of the grant amounts received by the 
                recipient; and
                    (B) the recipient has agreed that it will utilize 
                the program income for affordable housing activities in 
                accordance with the provisions of this title.
            (2) Prohibition of reduction of grant.--The Secretary may 
        not reduce the grant amount for any Indian tribe based solely 
        on (1) whether the recipient for the tribe retains program 
        income under paragraph (1), or (2) the amount of any such 
        program income retained.
            (3) Exclusion of amounts.--The Secretary may, by 
        regulation, exclude from consideration as program income any 
        amounts determined to be so small that compliance with the 
        requirements of this subsection would create an unreasonable 
        administrative burden on the recipient.
    (b)(1) In General.--Any contract for the construction of affordable 
housing with 12 or more units assisted with grant amounts made 
available under this Act shall contain a provision requiring that not 
less than the wages prevailing in the locality, as predetermined by the 
Secretary of Labor pursuant to the Davis-Bacon Act (40 U.S.C. 276a--
276a-5), shall be paid to all laborers and mechanics employed in the 
development of affordable housing involved, and recipients shall 
require certification as to the compliance with the provisions of this 
section prior to making any payment under such contract.
    (2) Exceptions.--Subsection (a) shall not apply if the individual 
receives no compensation or is paid expenses, reasonable benefits, or a 
nominal fee to perform the services for which the individual 
volunteered and such persons are not otherwise employed at any time in 
the construction work.
    (3) Waiver.--The Secretary may waive the provisions of this 
subsection.

SEC. 715. ENVIRONMENTAL REVIEW.

    (a) In General.--In order to ensure that the policies of the 
National Environmental Policy Act of 1969 and other provisions of law 
which further the purposes of such Act (as specified in regulations 
issued by the Secretary) are most effectively implemented in connection 
with the expenditure of grant amounts provided under this title, and to 
ensure to the public undiminished protection of the environment, the 
Secretary, in lieu of the environmental protection procedures otherwise 
applicable, may under regulations provide for the release of amounts 
for particular projects to recipients of assistance under this title 
who assume all of the responsibilities for environmental review, 
decisionmaking, and action pursuant to such Act, and such other 
provisions of law as the regulations of the Secretary specify, that 
would apply to the Secretary were the Secretary to undertake such 
projects as Federal projects. The Secretary shall issue regulations to 
carry out this section only after consultation with the Council on 
Environmental Quality. The regulations shall provide--
            (1) for the monitoring of the environmental reviews 
        performed under this section;
            (2) in the discretion of the Secretary, to facilitate 
        training for the performance of such reviews; and
            (3) for the suspension or termination of the assumption of 
        responsibilities under this section.
The Secretary's duty under the preceding sentence shall not be 
construed to limit or reduce any responsibility assumed by a recipient 
of grant amounts with respect to any particular release of funds.
    (b) Procedure.--The Secretary shall approve the release of funds 
subject to the procedures authorized by this section only if, at least 
15 days prior to such approval and prior to any commitment of funds to 
such projects the recipient of grant amounts has submitted to the 
Secretary a request for such release accompanied by a certification 
which meets the requirements of subsection (c). The Secretary's 
approval of any such certification shall be deemed to satisfy the 
Secretary's responsibilities under the National Environmental Policy 
Act of 1969 and such other provisions of law as the regulations of the 
Secretary specify insofar as those responsibilities relate to the 
releases of funds for projects to be carried out pursuant thereto which 
are covered by such certification.
    (c) Certification.--A certification under the procedures authorized 
by this section shall--
            (1) be in a form acceptable to the Secretary,
            (2) be executed by the chief executive officer or other 
        officer of the recipient of assistance under this title 
        qualified under regulations of the Secretary,
            (3) specify that the recipient has fully carried out its 
        responsibilities as described under subsection (a), and
            (4) specify that the certifying officer (A) consents to 
        assume the status of a responsible Federal official under the 
        National Environmental Policy Act of 1969 and each provision of 
        law specified in regulations issued by the Secretary insofar as 
        the provisions of such Act or such other provisions of law 
        apply pursuant to subsection (a), and (B) is authorized and 
        consents on behalf of the recipient of assistance and such 
        officer to accept the jurisdiction of the Federal courts for 
        the purpose of enforcement of the certifying officer's 
        responsibilities as such an official.

SEC. 716. REGULATIONS.

    (a) Interim Requirements.--Not later than 90 days after the date of 
the enactment of this title, the Secretary shall, by notice issued in 
the Federal Register, establish any requirements necessary to carry out 
this title in the manner provided in section 717(b), which shall be 
effective only for fiscal year 1997. The notice shall invite public 
comments regarding such interim requirements and final regulations to 
carry out this title and shall include general notice of proposed 
rulemaking (for purposes of section 564(a) of title 5, United States 
Code) of the final regulations under paragraph (2).
    (b) Final Regulations.--
            (1) Timing.--The Secretary shall issue final regulations 
        necessary to carry out this title not later than September 1, 
        1997, and such regulations shall take effect not later than the 
        effective date under section 717(a).
            (2) Negotiated rulemaking.--Notwithstanding sections 563(a) 
        and 565(a) of title 5, United States Code, the final 
        regulations required under paragraph (1) shall be issued 
        according to a negotiated rulemaking procedure under subchapter 
        III of chapter 5 of title 5, United States Code. The Secretary 
        shall establish a negotiated rulemaking committee for 
        development of any such proposed regulations, which shall 
        include representatives of Indian tribes.

SEC. 717. EFFECTIVE DATE.

    (a) In General.--Except as provided in subsection (b) and as 
otherwise specifically provided in this title, this title shall take 
effect on October 1, 1997.
    (b) Interim Applicability.--For fiscal year 1997, this title shall 
apply to any Indian tribe that requests the Secretary to apply this 
title to such tribe, subject to the provisions of this subsection, but 
only if the Secretary determines that the tribe has the capacity to 
carry out the responsibilities under this title during such fiscal 
year. For fiscal year 1997, this title shall apply to any such tribe 
subject to the following limitations:
            (1) Use of assistance amounts as block grant.--Amounts 
        shall not be made available pursuant to this title for grants 
        under this title for such fiscal year, but any amounts made 
        available for the tribe under the United States Housing Act of 
        1937, title II or subtitle D of title IV of the Cranston-
        Gonzalez National Affordable Housing Act, title IV of the 
        Stewart B. McKinney Homeless Assistance Act, or section 2 of 
        the HUD Demonstration Act of 1993 shall be considered grant 
        amounts under this title and shall be used subject to the 
        provisions of this title relating to such grant amounts.
            (2) Local housing plan.--Notwithstanding section 713 of 
        this title, a local housing plan shall be considered to have 
        been submitted for the tribe for fiscal year 1997 for purposes 
        of this title only if--
                    (A) the appropriate Indian housing authority has 
                submitted to the Secretary a comprehensive plan under 
                section 14(e) of the United States Housing Act of 1937 
                or under the comprehensive improvement assistance 
                program under such section 14;
                    (B) the Secretary has approved such plan before 
                January 1, 1996; and
                    (C) the tribe complies with specific procedures and 
                requirements for amending such plan as the Secretary 
                may establish to carry out this subsection.
    (c) Assistance Under Existing Program During Fiscal Year 1997.--
Notwithstanding the repeal of any provision of law under section 501(a) 
and with respect only to Indian tribes not provided assistance pursuant 
to subsection (b), during fiscal year 1997--
            (1) the Secretary shall carry out programs to provide low-
        income housing assistance on Indian reservations and other 
        Indian areas in accordance with the provisions of title II of 
        the United States Housing Act of 1937 and related provisions of 
        law, as in effect immediately before the enactment of this Act;
            (2) except to the extent otherwise provided in the 
        provisions of such title II (as so in effect), the provisions 
        of title I of such Act (as so in effect) and such related 
        provisions of law shall apply to low-income housing developed 
        or operated pursuant to a contract between the Secretary and an 
        Indian housing authority; and
            (3) none of the provisions of title I, II, III, or IV, or 
        of any other law specifically modifying the public housing 
        program that is enacted after the date of the enactment of this 
        Act, shall apply to public housing operated pursuant to a 
        contract between the Secretary and an Indian housing authority, 
        unless the provision explicitly provides for such 
        applicability.

SEC. 718. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated for grants under subtitle A 
$650,000,000, for each of fiscal years 1998, 1999, 2000, and 2001.

               Subtitle B--Affordable Housing Activities

SEC. 721. NATIONAL OBJECTIVES AND ELIGIBLE FAMILIES.

    (a) Primary Objective.--The national objectives of this title are--
            (1) to assist and promote affordable housing activities to 
        develop, maintain, and operate safe, clean, and healthy 
        affordable housing on Indian reservations and in other Indian 
        areas for occupancy by low-income Indian families;
            (2) to ensure better access to private mortgage markets for 
        Indian tribes and their members and to promote self-sufficiency 
        of Indian tribes and their members;
            (3) to coordinate activities to provide housing for Indian 
        tribes and their members with Federal, State, and local 
        activities to further economic and community development for 
        Indian tribes and their members;
            (4) to plan for and integrate infrastructure resources for 
        Indian tribes with housing development for tribes; and
            (5) to promote the development of private capital markets 
        in Indian country and to allow such markets to operate and 
        grow, thereby benefiting Indian communities.
    (b) Eligible Families.--
            (1) In General.--Except as provided under paragraph (2), 
        assistance under eligible housing activities under this title 
        shall be limited to low-income Indian families on Indian 
        reservations and other Indian areas.
            (2) Exception to Low-Income Requirement.--A recipient may 
        provide assistance for model activities under section 722(6) to 
        families who are not low-income families, if the Secretary 
        approves the activities pursuant to such subsection because 
        there is a need for housing for such families that cannot 
        reasonably be met without such assistance. The Secretary shall 
        establish limits on the amount of assistance that may be 
        provided under this title for activities for families who are 
        not low-income families.
            (3) Non-indian families.--A recipient may provide housing 
        or housing assistance provided through affordable housing 
        activities assisted with grant amounts under this title for a 
        non-Indian family on an Indian reservation or other Indian area 
        if the recipient determines that the presence of the family on 
        the Indian reservation or other Indian area is essential to the 
        well-being of Indian families and the need for housing for the 
        family cannot reasonably be met without such assistance.
            (4) Preference for indian families.--The local housing plan 
        for an Indian tribe may require preference, for housing or 
        housing assistance provided through affordable housing 
        activities assisted with grant amounts provided under this 
        title on behalf of such tribe, to be given (to the extent 
        practicable) to Indian families who are members of such tribe, 
        or to other Indian families. In any case in which the 
        applicable local housing plan for an Indian tribe provides for 
        preference under this subsection, the recipient for the tribe 
        shall ensure that housing activities that are assisted with 
        grant amounts under this title for such tribe are subject to 
        such preference.
            (5) Exemption.--Title VI of the Civil Rights Act of 1964 
        and title VIII of the Civil Rights Act of 1968 shall not apply 
        to actions by Indian tribes under this subsection.

SEC. 722. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.

    Affordable housing activities under this subtitle are activities, 
in accordance with the requirements of this subtitle, to develop or to 
support affordable housing for rental or homeownership, or to provide 
housing services with respect to affordable housing, through the 
following activities:
            (1) Indian housing assistance.--The provision of 
        modernization or operating assistance for housing previously 
        developed or operated pursuant to a contract between the 
        Secretary and an Indian housing authority.
            (2) Development.--The acquisition, new construction, 
        reconstruction, or moderate or substantial rehabilitation of 
        affordable housing, which may include real property 
        acquisition, site improvement, development of utilities and 
        utility services, conversion, demolition, financing, 
        administration and planning, and other related activities.
            (3) Housing services.--The provision of housing-related 
        services for affordable housing, such as housing counseling in 
        connection with rental or homeownership assistance, energy 
        auditing, and other services related to assisting owners, 
        tenants, contractors, and other entities, participating or 
        seeking to participate in other housing activities assisted 
        pursuant to this section.
            (4) Housing management services.--The provision of 
        management services for affordable housing, including 
        preparation of work specifications, loan processing, 
        inspections, tenant selection, management of tenant-based 
        rental assistance, and management of affordable housing 
        projects.
            (5) Crime prevention and safety activities.--The provision 
        of safety, security, and law enforcement measures and 
        activities appropriate to protect residents of affordable 
        housing from crime.
            (6) Model activities.--Housing activities under model 
        programs that are designed to carry out the purposes of this 
        title and are specifically approved by the Secretary as 
        appropriate for such purpose.

SEC. 723. REQUIRED AFFORDABLE HOUSING ACTIVITIES.

    (a) Maintenance of Operating Assistance for Indian Housing.--Any 
recipient who owns or operates (or is responsible for funding any 
entity that owns or operates) housing developed or operated pursuant to 
a contract between the Secretary and an Indian housing authority 
pursuant to the United States Housing Act of 1937 shall, using amounts 
of any grants received under this title, reserve and use for operating 
assistance under section 722(1) such amounts as may be necessary to 
provide for the continued maintenance and efficient operation of such 
housing.
    (b) Demolition and Disposition.--This title may not be construed to 
prevent any recipient (or entity funded by a recipient) from 
demolishing or disposing of Indian housing referred to in such 
subsection. Notwithstanding section 116, section 261 shall apply to the 
demolition or disposition of Indian housing referred to in subsection 
(a).

SEC. 724. TYPES OF INVESTMENTS.

    (a) In General.--Subject to section 723 and the local housing plan 
for an Indian tribe, the recipient for such tribe shall have--
            (1) the discretion to use grant amounts for affordable 
        housing activities through equity investments, interest-bearing 
        loans or advances, noninterest-bearing loans or advances, 
        interest subsidies, leveraging of private investments under 
        subsection (b), or any other form of assistance that the 
        Secretary has determined to be consistent with the purposes of 
        this title; and
            (2) the right to establish the terms of assistance.
    (b) Leveraging Private Investment.--A recipient may leverage 
private investments in affordable housing activities by pledging 
existing or future grant amounts to assure the repayment of notes and 
other obligations of the recipient issued for purposes of carrying out 
affordable housing activities.

SEC. 725. LOW-INCOME REQUIREMENT AND INCOME TARGETING.

    Housing shall qualify as affordable housing for purposes of this 
title only if--
            (1) each dwelling unit in the housing--
                    (A) in the case of rental housing, is made 
                available for occupancy only by a family that is a low-
                income family at the time of their initial occupancy of 
                such unit; and
                    (B) in the case of housing for homeownership, is 
                made available for purchase only by a family that is a 
low-income family at the time of purchase; and
            (2) except for housing assisted under section 202 of the 
        United States Housing Act of 1937 (as in effect before the 
        enactment of this Act), each dwelling unit in the housing will 
        remain affordable, according to binding commitments 
        satisfactory to the Secretary, for the remaining useful life of 
        the property (as determined by the Secretary) without regard to 
        the term of the mortgage or to transfer of ownership, or for 
        such other period that the Secretary determines is the longest 
        feasible period of time consistent with sound economics and the 
        purposes of this title, except upon a foreclosure by a lender 
        (or upon other transfer in lieu of foreclosure) if such action 
        (A) recognizes any contractual or legal rights of public 
        agencies, nonprofit sponsors, or others to take actions that 
        would avoid termination of low-income affordability in the case 
        of foreclosure or transfer in lieu of foreclosure, and (B) is 
        not for the purpose of avoiding low-income affordability 
        restrictions, as determined by the Secretary.

SEC. 726. CERTIFICATION OF COMPLIANCE WITH SUBSIDY LAYERING 
              REQUIREMENTS.

    With respect to housing assisted with grant amounts provided under 
this title, the requirements of section 102(d) of the Department of 
Housing and Urban Development Reform Act of 1989 shall be considered to 
be satisfied upon certification by the recipient of the assistance to 
the Secretary that the combination of Federal assistance provided to 
any housing project is not any more than is necessary to provide 
affordable housing.

SEC. 727. LEASE REQUIREMENTS AND TENANT SELECTION.

    (a) Leases.--Except to the extent otherwise provided by or 
inconsistent with tribal law, in renting dwelling units in affordable 
housing assisted with grant amounts provided under this title, the 
owner or manager of the housing shall utilize leases that--
            (1) do not contain unreasonable terms and conditions;
            (2) require the owner or manager to maintain the housing in 
        compliance with applicable housing codes and quality standards;
            (3) require the owner or manager to give adequate written 
        notice of termination of the lease, which shall not be less 
        than--
                    (A) the period provided under the applicable law of 
                the jurisdiction or 14 days, whichever is less, in the 
                case of nonpayment of rent;
                    (B) a reasonable period of time, but not to exceed 
                14 days, when the health or safety of other residents 
                or employees of the owner or manager is threatened; and
                    (C) the period of time provided under the 
                applicable law of the jurisdiction, in any other case;
            (4) require that the owner or manager may not terminate the 
        tenancy except for violation of the terms or conditions of the 
        lease, violation of applicable Federal, tribal, State, or local 
        law, or for other good cause; and
            (5) provide that the owner or manager may terminate the 
        tenancy of a resident for any activity, engaged in by the 
        resident, any member of the resident's household, or any guest 
        or other person under the resident's control, that--
                    (A) threatens the health or safety of, or right to 
                peaceful enjoyment of the premises by, other residents 
                or employees of the owner or manager of the housing;
                    (B) threatens the health or safety of, or right to 
                peaceful enjoyment of their premises by, persons 
                residing in the immediate vicinity of the premises; or
                    (C) is criminal activity (including drug-related 
                criminal activity).
    (b) Tenant Selection.--The owner or manager of affordable rental 
housing assisted under with grant amounts provided under this title 
shall adopt and utilize written tenant selection policies and criteria 
that--
            (1) are consistent with the purpose of providing housing 
        for low-income families;
            (2) are reasonably related to program eligibility and the 
        applicant's ability to perform the obligations of the lease; 
        and
            (3) provide for (A) the selection of tenants from a written 
        waiting list in accordance with the policies and goals set 
        forth in the local housing plan for the tribe that is the grant 
        beneficiary of such grant amounts, and (B) the prompt 
        notification in writing of any rejected applicant of the 
        grounds for any rejection.

SEC. 728. REPAYMENT.

    If a recipient uses grant amounts to provide affordable housing 
under activities under this subtitle and, at any time during the useful 
life of the housing the housing does not comply with the requirement 
under section 725(a)(2), the Secretary shall reduce future grant 
payments on behalf of the grant beneficiary by an amount equal to the 
grant amounts used for such housing (under the authority under section 
751(a)(2)) or require repayment to the Secretary of an amount equal to 
such grant amounts.

SEC. 729. CONTINUED USE OF AMOUNTS FOR AFFORDABLE HOUSING.

    Any funds for programs for low-income housing under the United 
States Housing Act of 1937 that, on the date of the applicability of 
this title to an Indian tribe, are owned by, or in the possession or 
under the control of, the Indian housing authority for the tribe, 
including all reserves not otherwise obligated, shall be considered 
assistance under this title and subject to the provisions of this title 
relating to use of such assistance.

                Subtitle C--Allocation of Grant Amounts

SEC. 741. ANNUAL ALLOCATION.

    For each fiscal year, the Secretary shall allocate any amounts made 
available for assistance under this title for the fiscal year, in 
accordance with the formula established pursuant to section 742, among 
Indian tribes that comply with the requirements under this title for a 
grant under this title.

SEC. 742. ALLOCATION FORMULA.

    The Secretary shall, by regulations issued in the manner provided 
under section 716, establish a formula to provide for allocating 
amounts available for a fiscal year for block grants under this title 
among Indian tribes. The formula shall be based on factors that reflect 
the need of the Indian tribes and the Indian areas of the tribes for 
assistance for affordable housing activities, including the following 
factors:
            (1) The number of low-income housing dwelling units owned 
        or operated at the time pursuant to a contract between an 
        Indian housing authority for the tribe and the Secretary.
            (2) The extent of poverty and economic distress within 
        Indian areas of the tribe.
            (3) Other objectively measurable conditions as the 
        Secretary may specify.
    The regulations establishing the formula shall be issued not later 
than the expiration of the 12-month period beginning on the date of the 
enactment of this title.

              Subtitle D--Compliance, Audits, and Reports

SEC. 751. REMEDIES FOR NONCOMPLIANCE.

    (a) Actions by Secretary Affecting Grant Amounts.--Except as 
provided in subsection (b), if the Secretary finds after reasonable 
notice and opportunity for hearing that a recipient of assistance under 
this title has failed to comply substantially with any provision of 
this title, the Secretary shall--
            (1) terminate payments under this title to the recipient;
            (2) reduce payments under this title to the recipient by an 
        amount equal to the amount of such payments which were not 
        expended in accordance with this title;
            (3) limit the availability of payments under this title to 
        programs, projects, or activities not affected by such failure 
        to comply; or
            (4) in the case of noncompliance described in section 
        752(b), provide a replacement tribally designated housing 
        entity for the recipient, under section 752.
If the Secretary takes an action under paragraph (1), (2), or (3), the 
Secretary shall continue such action until the Secretary determines 
that the failure to comply has ceased.
    (b) Noncompliance Because of Technical Incapacity.--If the 
Secretary makes a finding under subsection (a), but determines that the 
failure to comply substantially with the provisions of this title--
            (1) is not a pattern or practice of activities constituting 
        willful noncompliance, and
            (2) is a result of the limited capability or capacity of 
        the recipient,
the Secretary may provide technical assistance for the recipient 
(directly or indirectly) that is designed to increase the capability 
and capacity of the recipient to administer assistance provided under 
this title in compliance with the requirements under this title.
    (c) Referral for Civil Action.--
            (1) Authority.--In lieu of, or in addition to, any action 
        authorized by subsection (a), the Secretary may, if the 
        Secretary has reason to believe that a recipient has failed to 
        comply substantially with any provision of this title, refer 
        the matter to the Attorney General of the United States with a 
        recommendation that an appropriate civil action be instituted.
            (2) Civil action.--Upon such a referral, the Attorney 
        General may bring a civil action in any United States district 
        court having venue thereof for such relief as may be 
        appropriate, including an action to recover the amount of the 
        assistance furnished under this title which was not expended in 
        accordance with it, or for mandatory or injunctive relief.
    (d) Review.--
            (1) In general.--Any recipient who receives notice under 
        subsection (a) of the termination, reduction, or limitation of 
        payments under this title may, within 60 days after receiving 
        such notice, file with the United States Court of Appeals for 
        the circuit in which such State is located, or in the United 
        States Court of Appeals for the District of Columbia, a 
        petition for review of the Secretary's action. The petitioner 
        shall forthwith transmit copies of the petition to the 
        Secretary and the Attorney General of the United States, who 
        shall represent the Secretary in the litigation.
            (2) Procedure.--The Secretary shall file in the court 
        record of the proceeding on which the Secretary based the 
        action, as provided in section 2112 of title 28, United States 
        Code. No objection to the action of the Secretary shall be 
        considered by the court unless such objection has been urged 
        before the Secretary.
            (3) Disposition.--The court shall have jurisdiction to 
        affirm or modify the action of the Secretary or to set it aside 
        in whole or in part. The findings of fact by the Secretary, if 
        supported by substantial evidence on the record considered as a 
        whole, shall be conclusive. The court may order additional 
        evidence to be taken by the Secretary, and to be made part of 
        the record. The Secretary may modify the Secretary's findings 
        of fact, or make new findings, by reason of the new evidence so 
        taken and filed with the court, and the Secretary shall also 
        file such modified or new findings, which findings with respect 
        to questions of fact shall be conclusive if supported by 
        substantial evidence on the record considered as a whole, and 
        shall also file the Secretary's recommendation, if any, for the 
        modification or setting aside of the Secretary's original 
        action.
            (4) Finality.--Upon the filing of the record with the 
        court, the jurisdiction of the court shall be exclusive and its 
        judgment shall be final, except that such judgment shall be 
        subject to review by the Supreme Court of the United States 
        upon writ of certiorari or certification as provided in section 
        1254 of title 28, United State Code.

SEC. 752. REPLACEMENT OF RECIPIENT.

    (a) Authority.--As a condition of the Secretary making a grant 
under this title on behalf of an Indian tribe, the tribe shall agree 
that, notwithstanding any other provision of law, the Secretary may, 
only in the circumstances set forth in subsection (b), require that a 
replacement tribally designated housing entity serve as the recipient 
for the tribe, in accordance with subsection (c).
    (b) Conditions of Removal.--The Secretary may require such 
replacement tribally designated housing entity for a tribe only upon a 
determination by the Secretary on the record after opportunity for a 
hearing that the recipient for the tribe has engaged in a pattern or 
practice of activities that constitutes substantial or willful 
noncompliance with the requirements under this title.
    (c) Choice and Term of Replacement.--If the Secretary requires that 
a replacement tribally designated housing entity serve as the recipient 
for a tribe (or tribes)--
            (1) the replacement entity shall be an entity mutually 
        agreed upon by the Secretary and the tribe (or tribes) for 
        which the recipient was authorized to act, except that if no 
        such entity is agreed upon before the expiration of the 60-day 
        period beginning upon the date that the Secretary makes the 
        determination under subsection (b), the Secretary shall act as 
        the replacement entity until agreement is reached upon a 
        replacement entity; and
            (2) the replacement entity (or the Secretary, as provided 
        in paragraph (1)) shall act as the tribally designated housing 
        entity for the tribe (or tribes) for a period that expires 
        upon--
                    (A) a date certain, which shall be specified by the 
                Secretary upon making the determination under 
                subsection (b); or
                    (B) the occurrence of specific conditions, which 
                conditions shall be specified in written notice 
                provided by the Secretary to the tribe upon making the 
                determination under subsection (b).

SEC. 753. MONITORING OF COMPLIANCE.

    (a) Enforceable Agreements.--Each recipient, through binding 
contractual agreements with owners and otherwise, shall ensure long-
term compliance with the provisions of this title. Such measures shall 
provide for (1) enforcement of the provisions of this title by the 
grant beneficiary or by recipients and other intended beneficiaries, 
and (2) remedies for the breach of such provisions.
    (b) Periodic Monitoring.--Not less frequently than annually, each 
recipient shall review the activities conducted and housing assisted 
under this title to assess compliance with the requirements of this 
title. Such review shall include on-site inspection of housing to 
determine compliance with applicable requirements. The results of each 
review shall be included in the performance report of the recipient 
submitted to the Secretary under section 754 and made available to the 
public.

SEC. 754. PERFORMANCE REPORTS.

    (a) Requirement.--For each fiscal year, each recipient shall--
            (1) review the progress it has made during such fiscal year 
        in carrying out the local housing plan (or plans) for the 
        Indian tribes for which it administers grant amounts; and
            (2) submit a report to the Secretary (in a form acceptable 
        to the Secretary) describing the conclusions of the review.
    (b) Content.--Each report under this section for a fiscal year 
shall--
            (1) describe the use of grant amounts provided to the 
        recipient for such fiscal year;
            (2) assess the relationship of such use to the goals 
        identified in the local housing plan of the grant beneficiary;
            (3) indicate the recipient's programmatic accomplishments; 
        and
            (4) describe how the recipient would change its programs as 
        a result of its experiences.
    (c) Submission.--The Secretary shall establish dates for submission 
of reports under this section, and review such reports and make such 
recommendations as the Secretary considers appropriate to carry out the 
purposes of this title.
    (d) Public Availability.--A recipient preparing a report under this 
section shall make the report publicly available to the citizens in the 
recipient's jurisdiction in sufficient time to permit such citizens to 
comment on such report prior to its submission to the Secretary, and in 
such manner and at such times as the recipient may determine. The 
report shall include a summary of any comments received by the grant 
beneficiary or recipient from citizens in its jurisdiction regarding 
its program.

SEC. 755. REVIEW AND AUDIT BY SECRETARY.

    (a) Annual Review.--The Secretary shall, at least on an annual 
basis, make such reviews and audits as may be necessary or appropriate 
to determine--
            (1) whether the recipient has carried out its eligible 
        activities in a timely manner, has carried out its eligible 
        activities and certifications in accordance with the 
        requirements and the primary objectives of this title and with 
        other applicable laws, and has a continuing capacity to carry 
        out those activities in a timely manner;
            (2) whether the recipient has complied with the local 
        housing plan of the grant beneficiary; and
            (3) whether the performance reports under section 754 of 
        the recipient are accurate.
Reviews under this section shall include, insofar as practicable, on-
site visits by employees of the Department of Housing and Urban 
Development.
    (b) Report by Secretary.--The Secretary shall submit a written 
report to the Congress regarding each review under subsection (a). The 
Secretary shall give a recipient not less than 30 days to review and 
comment on a report under this subsection. After taking into 
consideration the comments of the recipient, the Secretary may revise 
the report and shall make the recipient's comments and the report, with 
any revisions, readily available to the public not later than 30 days 
after receipt of the recipient's comments.
    (c) Effect of Reviews.--The Secretary may make appropriate 
adjustments in the amount of the annual grants under this title in 
accordance with the Secretary's findings pursuant to reviews and audits 
under this section. The Secretary may adjust, reduce, or withdraw grant 
amounts, or take other action as appropriate in accordance with the 
Secretary's reviews and audits under this section, except that grant 
amounts already expended on affordable housing activities may not be 
recaptured or deducted from future assistance provided on behalf of an 
Indian tribe.

SEC. 756. GAO AUDITS.

    To the extent that the financial transactions of Indian tribes and 
recipients of grant amounts under this title relate to amounts provided 
under this title, such transactions may be audited by the Comptroller 
General of the United States under such rules and regulations as may be 
prescribed by the Comptroller General. The representatives of the 
General Accounting Office shall have access to all books, accounts, 
records, reports, files, and other papers, things, or property 
belonging to or in use by such tribes and recipients pertaining to such 
financial transactions and necessary to facilitate the audit.

SEC. 757. REPORTS TO CONGRESS.

    (a) In General.--Not later than 90 days after the conclusion of 
each fiscal year in which assistance under this title is made 
available, the Secretary shall submit to the Congress a report that 
contains--
            (1) a description of the progress made in accomplishing the 
        objectives of this title; and
            (2) a summary of the use of such funds during the preceding 
        fiscal year.
    (b) Related Reports.--The Secretary may require recipients of grant 
amounts under this title to submit to the Secretary such reports and 
other information as may be necessary in order for the Secretary to 
make the report required by subsection (a).

     Subtitle E--Termination of Assistance for Indian Tribes under 
                         Incorporated Programs

SEC. 761. TERMINATION OF INDIAN PUBLIC HOUSING ASSISTANCE UNDER UNITED 
              STATES HOUSING ACT OF 1937.

    (a) In General.--After September 30, 1997, financial assistance may 
not be provided under the United States Housing Act of 1937 or pursuant 
to any commitment entered into under such Act, for Indian housing 
developed or operated pursuant to a contract between the Secretary and 
an Indian housing authority, unless such assistance is provided from 
amounts made available for fiscal year 1997 and pursuant to a 
commitment entered into before September 30, 1997.
    (b) Termination of Restrictions on Use of Indian Housing.--Except 
as provided in section 723(b) of this title, any housing developed or 
operated pursuant to a contract between the Secretary and an Indian 
housing authority pursuant to the United States Housing Act of 1937 
shall not be subject to any provision of such Act or any annual 
contributions contract or other agreement pursuant to such Act, but 
shall be considered and maintained as affordable housing for purposes 
of this title.

SEC. 762. TERMINATION OF NEW COMMITMENTS FOR RENTAL ASSISTANCE.

    After September 30, 1997, financial assistance for rental housing 
assistance under the United States Housing Act of 1937 may not be 
provided to any Indian housing authority or tribally designated housing 
entity, unless such assistance is provided pursuant to a contract for 
such assistance entered into by the Secretary and the Indian housing 
authority before such date.

SEC. 763. TERMINATION OF YOUTHBUILD PROGRAM ASSISTANCE.

    (a) In General.--Subtitle D of title IV of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12899 et seq.) is amended--
            (1) by redesignating section 460 as section 461; and
            (2) by inserting after section 459 the following new 
        section:

``SEC. 460. INELIGIBILITY OF INDIAN TRIBES.

    ``Indian tribes, Indian housing authorities, and other agencies 
primarily serving Indians or Indian areas shall not be eligible 
applicants for amounts made available for assistance under this 
subtitle for fiscal year 1997 and fiscal years thereafter.''.
    (b) Effective Date and Applicability.--The amendments under 
subsection (a) shall be made on October 1, 1997, and shall apply with 
respect to amounts made available for assistance under subtitle D of 
title II of the Cranston-Gonzalez National Affordable Housing Act for 
fiscal year 1998 and fiscal years thereafter.

SEC. 764. TERMINATION OF HOME PROGRAM ASSISTANCE.

    (a) In General.--Title II of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12721 et seq.) is amended--
            (1) in section 217(a)--
                    (A) in paragraph (1), by striking ``reserving 
                amounts under paragraph (2) for Indian tribes and 
                after''; and
                    (B) by striking paragraph (2); and
            (2) in section 288--
                    (A) in subsection (a), by striking ``, Indian 
                tribes,'';
                    (B) in subsection (b), by striking ``, Indian 
                tribe,''; and
                    (C) in subsection (c)(4), by striking ``, Indian 
                tribe,''.
    (b) Effective Date and Applicability.--The amendments under 
subsection (a) shall be made on October 1, 1997, and shall apply with 
respect to amounts made available for assistance under title II of the 
Cranston-Gonzalez National Affordable Housing Act for fiscal year 1998 
and fiscal years thereafter.

SEC. 765. TERMINATION OF HOUSING ASSISTANCE FOR THE HOMELESS.

    (a) McKinney Act Programs.--Title IV of the Stewart B. McKinney 
Homeless Assistance Act (42 U.S.C. 11361 et seq.) is amended--
            (1) in section 411, by striking paragraph (10);
            (2) in section 412, by striking ``, and for Indian 
        tribes,'';
            (3) in section 413--
                    (A) in subsection (a)--
                            (i) by striking ``, and to Indian 
                        tribes,''; and
                            (ii) by striking ``, or for Indian tribes'' 
                        each place it appears;
                    (B) in subsection (c), by striking ``or Indian 
                tribe''; and
                    (C) in subsection (d)(3)--
                            (i) by striking ``, or Indian tribe'' each 
                        place it appears; and
                            (ii) by striking ``, or other Indian 
                        tribes,'';
            (4) in section 414(a)--
                    (A) by striking `or Indian tribe'' each place it 
                appears; and
                    (B) by striking ``, local government,'' each place 
                it appears and inserting ``or local government'';
            (5) in section 415(c)(4), by striking ``Indian tribes,'';
            (6) in section 416(b), by striking ``Indian tribe,'';
            (7) in section 422--
                    (A) in by striking ``Indian tribe,''; and
                    (B) by striking paragraph (3);
            (8) in section 441--
                    (A) by striking subsection (g);
                    (B) in subsection (h), by striking ``or Indian 
                housing authority''; and
                    (C) in subsection (j)(1), by striking ``, Indian 
                housing authority'';
            (9) in section 462--
                    (A) in paragraph (2), by striking ``, Indian 
                tribe,''; and
                    (B) by striking paragraph (4); and
            (10) in section 491(e), by striking ``, Indian tribes (as 
        such term is defined in section 102(a) of the Housing and 
        Community Development Act of 1974),''.
    (b) Innovative Homeless Demonstration.--Section 2(b) of the HUD 
Demonstration Act of 1993 (42 U.S.C. 11301 note) is amended--
            (1) in paragraph (3), by striking `` `unit of general local 
        government', and `Indian tribe' '' and inserting ``and `unit of 
        general local government' ''; and
            (2) in paragraph (4), by striking ``unit of general local 
        government (including units in rural areas), or Indian tribe'' 
        and inserting ``or unit of general local government''.
    (c) Effective Date and Applicability.--The amendments under 
subsections (a) and (b) shall be made on October 1, 1997, and shall 
apply with respect to amounts made available for assistance under title 
IV of the Stewart B. McKinney Homeless Assistance Act and section 2 of 
the HUD Demonstration Act of 1993, respectively, for fiscal year 1998 
and fiscal years thereafter.

SEC. 766. SAVINGS PROVISION.

    Except as provided in sections 761 and 762, this title may not be 
construed to affect the validity of any right, duty, or obligation of 
the United States or other person arising under or pursuant to any 
commitment or agreement lawfully entered into before October 1, 1997, 
under the United States Housing Act of 1937, subtitle D of title IV of 
the Cranston-Gonzalez National Affordable Housing Act, title II of the 
Cranston-Gonzalez National Affordable Housing Act, title IV of the 
Stewart B. McKinney Homeless Assistance Act, or section 2 of the HUD 
Demonstration Act of 1993.

SEC. 767. EFFECTIVE DATE.

    Sections 761, 762, and 766 shall take effect on the date of the 
enactment of this title.

     Subtitle F--Loan Guarantees for Affordable Housing Activities

SEC. 771. AUTHORITY AND REQUIREMENTS.

    (a) Authority.--To such extent or in such amounts as provided in 
appropriation Acts, the Secretary may, subject to the limitations of 
this subtitle and upon such terms and conditions as the Secretary may 
prescribe, guarantee and make commitments to guarantee, the notes or 
other obligations issued by Indian tribes or tribally designated 
housing entities, for the purposes of financing affordable housing 
activities described in section 722.
    (b) Lack of Financing Elsewhere.--A guarantee under this subtitle 
may be used to assist an Indian tribe or housing entity in obtaining 
financing only if the Indian tribe or housing entity has made efforts 
to obtain such financing without the use of such guarantee and cannot 
complete such financing consistent with the timely execution of the 
program plans without such guarantee.
    (c) Terms of Loans.--Notes or other obligations guaranteed pursuant 
to this subtitle shall be in such form and denominations, have such 
maturities, and be subject to such conditions as may be prescribed by 
regulations issued by the Secretary. The Secretary may not deny a 
guarantee under this subtitle on the basis of the proposed repayment 
period for the note or other obligation, unless the period is more than 
20 years or the Secretary determines that the period causes the 
guarantee to constitute an unacceptable financial risk.
    (d) Limitation on Outstanding Guarantees.--No guarantee or 
commitment to guarantee shall be made with respect to any note or other 
obligation if the issuer's total outstanding notes or obligations 
guaranteed under this subtitle (excluding any amount defeased under the 
contract entered into under section 772(a)(1)) would thereby exceed an 
amount equal to 5 times the amount of the grant approval for the issuer 
pursuant to title III.
    (e) Prohibition of Purchase by FFB.--Notes or other obligations 
guaranteed under this subtitle may not be purchased by the Federal 
Financing Bank.
    (f) Prohibition of Guarantee Fees.--No fee or charge may be imposed 
by the Secretary or any other Federal agency on or with respect to a 
guarantee made by the Secretary under this subtitle.

SEC. 772. SECURITY AND REPAYMENT.

    (a) Requirements on Issuer.--To assure the repayment of notes or 
other obligations and charges incurred under this subtitle and as a 
condition for receiving such guarantees, the Secretary shall require 
the Indian tribe or housing entity issuing such notes or obligations 
to--
            (1) enter into a contract, in a form acceptable to the 
        Secretary, for repayment of notes or other obligations 
        guaranteed under this subtitle;
            (2) pledge any grant for which the issuer may become 
        eligible under this title;
            (3) demonstrate that the extent of such issuance and 
        guarantee under this title is within the financial capacity of 
        the tribe and is not likely to impairment the ability to use of 
        grant amounts under subtitle A, taking into consideration the 
        requirements under section 723(a); and
            (4) furnish, at the discretion of the Secretary, such other 
        security as may be deemed appropriate by the Secretary in 
        making such guarantees, including increments in local tax 
        receipts generated by the activities assisted under this title 
        or dispositions proceeds from the sale of land or rehabilitated 
        property.
    (b) Repayment From Grant Amounts.--Notwithstanding any other 
provision of this title--
            (1) the Secretary may apply grants pledged pursuant to 
        subsection (a)(2) to any repayments due the United States as a 
        result of such guarantees; and
            (2) grants allocated under this title for an Indian tribe 
        or housing entity (including program income derived therefrom) 
        may be used to pay principal and interest due (including such 
        servicing, underwriting, and other costs as may be specified in 
        regulations issued by the Secretary) on notes or other 
        obligations guaranteed pursuant to this subtitle.
    (c) Full Faith and Credit.--The full faith and credit of the United 
States is pledged to the payment of all guarantees made under this 
subtitle. Any such guarantee made by the Secretary shall be conclusive 
evidence of the eligibility of the obligations for such guarantee with 
respect to principal and interest, and the validity of any such 
guarantee so made shall be incontestable in the hands of a holder of 
the guaranteed obligations.

SEC. 773. PAYMENT OF INTEREST.

    The Secretary may make, and contract to make, grants, in such 
amounts as may be approved in appropriations Acts, to or on behalf of 
an Indian tribe or housing entity issuing notes or other obligations 
guaranteed under this subtitle, to cover not to exceed 30 percent of 
the net interest cost (including such servicing, underwriting, or other 
costs as may be specified in regulations of the Secretary) to the 
borrowing entity or agency of such obligations. The Secretary may also, 
to the extent approved in appropriation Acts, assist the issuer of a 
note or other obligation guaranteed under this subtitle in the payment 
of all or a portion of the principal and interest amount due under the 
note or other obligation, if the Secretary determines that the issuer 
is unable to pay the amount because of circumstances of extreme 
hardship beyond the control of the issuer.

SEC. 774. TREASURY BORROWING.

    The Secretary may issue obligations to the Secretary of the 
Treasury in an amount outstanding at any one time sufficient to enable 
the Secretary to carry out the obligations of the Secretary under 
guarantees authorized by this subtitle. The obligations issued under 
this section shall have such maturities and bear such rate or rates of 
interest as shall be determined by the Secretary of the Treasury. The 
Secretary of the Treasury is authorized and directed to purchase any 
obligations of the Secretary issued under this section, and for such 
purposes may use as a public debt transaction the proceeds from the 
sale of any securities issued under chapter 31 of title 31, United 
States Code, and the purposes for which such securities may be issued 
under such chapter are extended to include the purchases of the 
Secretary's obligations hereunder.

SEC. 775. TRAINING AND INFORMATION.

    The Secretary, in cooperation with eligible public entities, shall 
carry out training and information activities with respect to the 
guarantee program under this subtitle.

SEC. 776. LIMITATIONS ON AMOUNT OF GUARANTEES.

    (a) Aggregate Fiscal Year Limitation.--Notwithstanding any other 
provision of law and subject only to the absence of qualified 
applicants or proposed activities and to the authority provided in this 
subtitle, to the extent approved or provided in appropriation Acts, the 
Secretary shall enter into commitments to guarantee notes and 
obligations under this subtitle with an aggregate principal amount of 
$400,000,000 for each of fiscal years 1997, 1998, 1999, 2000, and 2001.
    (b) Authorization of Appropriations for Credit Subsidy.--There is 
authorized to be appropriated to cover the costs (as such term is 
defined in section 502 of the Congressional Budget Act of 1974) of 
guarantees under this subtitle, $40,000,000 for each of fiscal years 
1997, 1998, 1999, 2000, and 2001.
    (c) Aggregate Outstanding Limitation.--The total amount of 
outstanding obligations guaranteed on a cumulative basis by the 
Secretary pursuant to this subtitle shall not at any time exceed 
$2,000,000,000 or such higher amount as may be authorized to be 
appropriated for this subtitle for any fiscal year.
    (d) Fiscal Year Limitations on Tribes.--The Secretary shall monitor 
the use of guarantees under this subtitle by Indian tribes. If the 
Secretary finds that 50 percent of the aggregate guarantee authority 
under subsection (c) has been committed, the Secretary may--
            (1) impose limitations on the amount of guarantees any one 
        Indian tribe may receive in any fiscal year of $50,000,000; or
            (2) request the enactment of legislation increasing the 
        aggregate limitation on guarantees under this subtitle.

SEC. 777. EFFECTIVE DATE.

    This subtitle shall take effect upon the enactment of this title.

       Subtitle G--Other Housing Assistance for Native Americans

SEC. 781. LOAN GUARANTEES FOR INDIAN HOUSING.

    (a) Definition of Eligible Borrowers to Include Indian Tribes.--
Section 184 of the Housing and Community Development Act of 1992 (12 
U.S.C. 1515z-13a) is amended--
            (1) in subsection (a)--
                    (A) by striking ``and Indian housing authorities'' 
                and inserting ``, Indian housing authorities, and 
                Indian tribes,''; and
                    (B) by striking ``or Indian housing authority'' and 
                inserting ``, Indian housing authority, or Indian 
                tribe''; and
            (2) in subsection (b)(1), by striking ``or Indian housing 
        authorities'' and inserting ``, Indian housing authorities, or 
        Indian tribes''.
    (b) Need for Loan Guarantee.--Section 184(a) of the Housing and 
Community Development Act of 1992 is amended by striking ``trust land'' 
and inserting ``lands or as a result of a lack of access to private 
financial markets''.
    (c) LHP Requirement.--Section 184(b)(2) of the Housing and 
Community Development Act of 1992 is amended by inserting before the 
period at the end the following: ``that is under the jurisdiction of an 
Indian tribe for which a local housing plan has been submitted and 
approved pursuant to sections 712 and 713 of the Native American 
Housing Assistance and Self-Determination Act of 1996 that provides for 
the use of loan guarantees under this section to provide affordable 
homeownership housing in such areas''.
    (d) Lender Option to Obtain Payment Upon Default Without 
Foreclosure.--Section 184(h) of the Housing and Community Development 
Act of 1992 is amended--
            (1) in paragraph (1)(A)--
                    (A) in the first sentence of clause (i), by 
                striking ``in a court of competent jurisdiction''; and
                    (B) by striking clause (ii) and inserting the 
                following new clause:
                            ``(ii) No foreclosure.--Without seeking 
                        foreclosure (or in any case in which a 
                        foreclosure proceeding initiated under clause 
                        (i) continues for a period in excess of 1 
                        year), the holder of the guarantee may submit 
                        to the Secretary a request to assign the 
                        obligation and security interest to the 
                        Secretary in return for payment of the claim 
                        under the guarantee. The Secretary may accept 
                        assignment of the loan if the Secretary 
                        determines that the assignment is in the best 
                        interests of the United States. Upon 
                        assignment, the Secretary shall pay to the 
                        holder of the guarantee the pro rata portion of 
                        the amount guaranteed (as determined under 
                        subsection (e)). The Secretary shall be 
                        subrogated to the rights of the holder of the 
                        guarantee and the holder shall assign the 
                        obligation and security to the Secretary.'';
            (2) by striking paragraph (2); and
            (3) by redesignating paragraph (3) as paragraph (2).
    (e) Limitation of Mortgagee Authority.--Section 184(h)(2) of the 
Housing and Community Development Act of 1992, as so redesignated by 
subsection (e)(3) of this section, is amended--
            (1) in the first sentence, by striking ``tribal allotted or 
        trust land,'' and inserting ``restricted Indian land, the 
        mortgagee or''; and
                    (B) in the second sentence, by striking 
                ``Secretary'' each place it appears, and inserting 
                ``mortgagee or the Secretary''.
    (f) Limitation on Outstanding Aggregate Principal Amount.--Section 
184(i)(5)(C) of the Housing and Community Development Act of 1992 is 
amended by striking ``1993'' and all that follows through ``such year'' 
and inserting ``1997, 1998, 1999, 2000, and 2001 with an aggregate 
outstanding principal amount note exceeding $400,000,000 for each such 
fiscal year''.
    (g) Authorization of Appropriations for Guarantee Fund.--Section 
184(i)(7) of the Housing and Community Development Act of 1992 is 
amended by striking ``such sums'' and all that follows through ``1994'' 
and inserting ``$30,000,000 for each of fiscal years 1997, 1998, 1999, 
2000, and 2001''.
    (h) Definitions.--Section 184(k) of the Housing and Community 
Development Act of 1992 is amended--
            (1) in paragraph (4), by inserting after ``authority'' the 
        following: ``or Indian tribe'';
            (2) in paragraph (5)--
                    (A) by striking subparagraph (A) and inserting the 
                following new subparagraph:
                    ``(A) is authorized to engage in or assist in the 
                development or operation of--
                            ``(i) low-income housing for Indians; or
                            ``(ii) housing subject to the provisions of 
                        this section; and''; and
                    (B) by adding at the end the following:
        ``The term includes tribally designated housing entities under 
        the Native American Housing Assistance and Self-Determination 
        Act of 1996.''; and
            (3) by striking paragraph (8) and inserting the following 
        new paragraph:
            ``(8) The term `tribe' or `Indian tribe' means any Indian 
        tribe, band, notation, or other organized group or community of 
        Indians, including any Alaska Native village or regional or 
        village corporation as defined in or established pursuant to 
        the Alaska Native Claims Settlement Act, which is recognized as 
        eligible for the special programs and services provided by the 
        United States to Indians because of their status as Indians 
        pursuant to the Indian Self-Determination and Education 
        Assistance Act of 1975.
    (i) Principal Obligation Amounts.--Section 184(b)(5)(C) of the 
Housing and Community Development Act of 1992 is amended by striking 
clause (i) and inserting the following new clause:
                            ``(i) 97.75 percent of the appraised value 
                        of the property as of the date the loan is 
                        accepted for guarantee (or 98.75 percent if the 
                        value of the property is $50,000 or less); 
                        and''.
    (j) Availability of Amounts.--
            (1) Requirement of appropriations.--Section 184(i)(5) of 
        the Housing and Community Development Act of 1992 is amended by 
        striking subparagraph (A) and inserting the following new 
        subparagraph:
                    ``(A) Requirement of appropriations.--The authority 
                of the Secretary to enter into commitments to guarantee 
                loans under this section shall be effective for any 
                fiscal year to the extent or in such amounts as are or 
                have been provided in appropriations Acts, without 
                regard to the fiscal year for which such amounts were 
                appropriated.''.
            (2) Costs.--Section 184(i)(5)(B) of the Housing and 
        Community Development Act of 1992 is amended by adding at the 
        end the following new sentence: ``Any amounts appropriated 
        pursuant to this subparagraph shall remain available until 
        expended.''.
    (k) GNMA Authority.--The first sentence of section 306(g)(1) of the 
Federal National Mortgage Association Charter Act (12 U.S.C. 
1721(g)(1)) is amended by inserting before the period at the end the 
following: ``; or guaranteed under section 184 of the Housing and 
Community Development Act of 1992''.

SEC. 782. 50-YEAR LEASEHOLD INTEREST IN TRUST OR RESTRICTED LANDS FOR 
              HOUSING PURPOSES.

    (a) Authority to Lease.--Notwithstanding any other provision of 
law, any restricted Indian lands, whether tribally or individually 
owned, may be leased by the Indian owners, with the approval of the 
Secretary of the Interior, for residential purposes.
    (b) Term.--Each lease pursuant to subsection (a) shall be for a 
term not exceeding 50 years.
    (c) Other Conditions.--Each lease pursuant to subsection (a) and 
each renewal of such a lease shall be made under such terms and 
regulations as may be prescribed by the Secretary of the Interior.
    (d) Rule of Construction.--This section may not be construed to 
repeal, limit, or affect any authority to lease any restricted Indian 
lands that--
            (1) is conferred by or pursuant to any other provision of 
        law; or
            (2) provides for leases for any period exceeding 50 years.

SEC. 783. TRAINING AND TECHNICAL ASSISTANCE.

    There is authorized to be appropriated for assistance for the a 
national organization representing Native American housing interests 
for providing training and technical assistance to Indian housing 
authorities and tribally designated housing entities $2,000,000, for 
each of fiscal years 1997, 1998, 1999, 2000, and 2001.

SEC. 784. EFFECTIVE DATE.

    This subtitle and the amendments made by this subtitle shall take 
effect upon the enactment of this title.

   TITLE VIII--NATIONAL MANUFACTURED HOUSING CONSTRUCTION AND SAFETY 
                     STANDARDS CONSENSUS COMMITTEE

SEC. 801. SHORT TITLE; REFERENCE.

    (a) Short Title.--This title may be cited as the ``National 
Manufactured Housing Construction and Safety Standards Act of 1996''.
    (b) Reference.--Whenever in this title an amendment is expressed in 
terms of an amendment to, or repeal of, a section or other provision, 
the reference shall be considered to be made to that section or other 
provision of the Housing and Community Development Act of 1974.

SEC. 802. STATEMENT OF PURPOSE.

    Section 602 (42 U.S.C. 5401) is amended by striking the first 
sentence and inserting the following: ``The Congress declares that the 
purposes of this title are to reduce the number of personal injuries 
and deaths and property damage resulting from manufactured home 
accidents and to establish a balanced consensus process for the 
development, revision, and interpretation of Federal construction and 
safety standards for manufactured homes.''.

SEC. 803. DEFINITIONS.

    (a) In General.--Section 703 (42 U.S.C. 5402) is amended--
            (1) in paragraph (2), by striking ``dealer'' and inserting 
        ``retailer'';
            (2) in paragraph (12), by striking ``and'' at the end;
            (3) in paragraph (13), by striking the period at the end 
        and inserting a semicolon; and
            (4) by adding at the end the following new paragraphs:
            ``(14) `consensus committee' means the committee 
        established under section 604(a)(7); and
            ``(15) `consensus standards development process' means the 
        process by which additions and revisions to the Federal 
        manufactured home construction and safety standards shall be 
        developed and recommended to the Secretary by the consensus 
        committee.''.
    (b) Conforming Amendments.--
            (1) Occurrences of ``dealer''.--The Act (42 U.S.C. 5401 et 
        seq.) is amended by striking ``dealer'' and inserting 
        ``retailer'' in each of the following provisions:
                    (A) In section 613, each place such term appears.
                    (B) In section 614(f), each place such term 
                appears.
                    (C) In section 615(b)(1).
                    (D) In section 616.
            (2) Other amendments.--The Act (42 U.S.C. 5401 et seq.) is 
        amended--
                    (A) in section 615(b)(3), by striking ``dealer or 
                dealers'' and inserting ``retailer or retailers''; and
                    (B) by striking ``dealers'' and inserting 
                ``retailers'' each place such term appears--
                            (i) in section 615(d);
                            (ii) in section 615(f); and
                            (iii) in section 623(c)(9).

SEC. 804. FEDERAL MANUFACTURED HOME CONSTRUCTION AND SAFETY STANDARDS.

    Section 604 (42 U.S.C. 5403) is amended--
            (1) by striking subsections (a) and (b) and inserting the 
        following new subsections:
    ``(a) Establishment.--
            ``(1) Authority.--The Secretary shall establish, by order, 
        appropriate Federal manufactured home construction and safety 
        standards. Each such Federal manufactured home standard shall 
        be reasonable and shall meet the highest standards of 
        protection, taking into account existing State and local laws 
        relating to manufactured home safety and construction. The 
        Secretary shall issue all such orders pursuant to the consensus 
        standards development process under this subsection. The 
        Secretary may issue orders which are not part of the consensus 
        standards development process only in accordance with 
        subsection (b).
            ``(2) Consensus standards development process.--Not later 
        than 180 days after the date of enactment of the National 
        Manufactured Housing Construction and Safety Standards Act of 
        1996, the Secretary shall enter into a cooperative agreement or 
        establish a relationship with a qualified technical or building 
        code organization to administer the consensus standards 
        development process and establish a consensus committee under 
        paragraph (7). Periodically, the Secretary shall review such 
        organization's performance and may replace the organization 
        upon a finding of need.
            ``(3) Revisions.--The consensus committee established under 
        paragraph (7) shall consider revisions to the Federal 
        manufactured home construction and safety standards and shall 
        submit revised standards to the Secretary at least once during 
        every 2-year period, the first such 2-year period beginning 
        upon the appointment of the consensus committee under paragraph 
        (7). Before submitting proposed revised standards to the 
        Secretary, the consensus committee shall cause the proposed 
        revised standards to be published in the Federal Register, 
        together with a description of the consensus committee's 
        considerations and decisions under subsection (e), and shall 
        provide an opportunity for public comment. Public views and 
        objections shall be presented to the consensus committee in 
        accordance with American National Standards Institute 
        procedures. After such notice and opportunity public comment, 
        the consensus committee shall cause the recommended revisions 
        to the standards and notice of its submission to the Secretary 
        to be published in the Federal Register. Such notice shall 
        describe the circumstances under which the proposed revised 
        standards could become effective.
            ``(4) Review by secretary.--The Secretary shall either 
        adopt, modify, or reject the standards submitted by the 
        consensus committee. A final order adopting the standards shall 
        be issued by the Secretary not later than 12 months after the 
        date the standards are submitted to the Secretary by the 
        consensus committee, and shall be published in the Federal 
        Register and become effective pursuant to subsection (c). If 
        the Secretary--
                    ``(A) adopts the standards recommended by the 
                consensus committee, the Secretary may issue a final 
                order directly without further rulemaking;
                    ``(B) determines that any portion of the standards 
                should be rejected because it would jeopardize health 
                or safety or is inconsistent with the purposes of this 
                title, a notice to that effect, together with this 
                reason for rejecting the proposed standard, shall be 
                published in the Federal Register no later than 12 
                months after the date the standards are submitted to 
                the Secretary by the consensus committee;
                    ``(C) determines that any portion of the standard 
                should be modified because it would jeopardize health 
                or safety or is inconsistent with the purposes of this 
                title--
                            ``(i) such determination shall be made no 
                        later that 12 months after the date the 
                        standards are submitted to the Secretary by the 
                        consensus committee;
                            ``(ii) within such 12-month period, the 
                        Secretary shall cause the proposed modified 
                        standard to be published in the Federal 
                        Register, together with an explanation of the 
                        reason for the Secretary's determination that 
                        the consensus committee recommendation needs to 
                        be modified, and shall provide an opportunity 
                        for public comment in accordance with the 
                        provisions of section 553 of title 5, United 
                        States Code; and
                            ``(iii) the final standard shall become 
                        effective pursuant to subsection (c).
            ``(5) Failure to act.--If the Secretary fails to take final 
        action under paragraph (4) and publish notice of the action in 
        the Federal Register within the 12-month period under such 
        paragraph, the recommendations of the consensus committee shall 
        be considered to have been adopted by the Secretary and shall 
        take effect upon the expiration of the 180-day period that 
        begins upon the conclusion of the 12-month period. Within 10 
        days after the expiration of the 12-month period, the Secretary 
        shall cause to be published in the Federal Register notice of 
        the Secretary's failure to act, the revised standards, and the 
        effective date of the revised standards. Such notice shall be 
        deemed an order of the Secretary approving the revised 
        standards proposed by the consensus committee.
            ``(6) Interpretive bulletins.--The Secretary may issue 
        interpretive bulletins to clarify the meaning of any Federal 
        manufactured home construction and safety standards, subject to 
        the following requirements:
                    ``(A) Review by consensus committee.--Before 
                issuing an interpretive bulletin, the Secretary shall 
                submit the proposed bulletin to the consensus committee 
                and the consensus committee shall have 90 days to 
                provide written comments thereon to the Secretary. If 
                the consensus committee fails to act or if the 
                Secretary rejects any significant views recommended by 
                the consensus committee, the Secretary shall explain in 
                writing to the consensus committee, before the bulletin 
                becomes effective, the reasons for such rejection.
                    ``(B) Proposals.--The consensus committee may, from 
                time to time, submit to the Secretary proposals for 
                interpretive bulletins under this subsection. If the 
                Secretary fails to issue or rejects a proposed bulletin 
                within 90 days of its receipt, the Secretary shall be 
                considered to have approved the proposed bulletin and 
                shall immediately issue the bulletin.
                    ``(C) Effect.--Interpretative bulletins issued 
                under this paragraph shall become binding without 
                rulemaking.
            ``(7) Consensus committee.--
                    ``(A) Purpose.--The consensus committee referred to 
                in paragraph (2) shall have as its purpose providing 
                periodic recommendations to the Secretary to revise and 
                interpret the Federal manufactured home construction 
                and safety standards and carrying out such other 
                functions assigned to the committee under this title. 
                The committee shall be organized and carry out its 
                business in a manner that guarantees a fair opportunity 
                for the expression and consideration of various 
                positions.
                    ``(B) Membership.--The consensus committee shall be 
                composed of 25 members who shall be appointed as 
                follows:
                            ``(i) Appointment by process 
                        administrator.--Members shall be appointed by 
                        the qualified technical or building code 
                        organization that administers the consensus 
                        standards development process pursuant to 
                        paragraph (2), subject to the approval of the 
                        Secretary.
                            ``(ii) Balanced membership.--Members shall 
                        be appointed in a manner designed to include 
                        all interested parties without domination by 
                        any single interest category.
                            ``(iii) Selection procedures and 
                        requirements.--Members shall be appointed in 
                        accordance with selection procedures for 
                        consensus committees promulgated by the 
                        American National Standards Institute, except 
                        that the American National Standards Institute 
                        interest categories shall be modified to ensure 
                        representation on the committee by individuals 
                        representing the following fields, in equal 
                        numbers under each of the following subclauses:
                                    ``(I) Manufacturers.
                                    ``(II) Retailers, insurers, 
                                suppliers, lenders, community owners 
                                and private inspection agencies which 
                                have a financial interest in the 
                                industry.
                                    ``(III) Homeowners and consumer 
                                representatives.
                                    ``(IV) Public officials, such as 
                                those from State or local building code 
                                enforcement and inspection agencies.
                                    ``(V) General interest, including 
                                academicians, researchers, architects, 
                                engineers, private inspection agencies, 
                                and others.
                        Members of the consensus committee shall be 
                        qualified by background and experience to 
                        participate in the work of the committee, but 
                        members by reason of subclauses (III), (IV), 
                        and (V), except the private inspection 
                        agencies, may not have a financial interest in 
                        the manufactured home industry, unless such bar 
                        to participation is waived by the Secretary. 
                        The number of members by reason of subclause 
                        (V) who represent private inspection agencies 
                        may not constitute more than 20 percent of the 
                        total number of members by reason of subclause 
                        (V). Notwithstanding any other provision of 
                        this paragraph, the Secretary shall appoint a 
                        member of the consensus committee, who shall 
                        not have voting privileges.
                    ``(C) Meetings.--The consensus committee shall 
                cause advance notice of all meetings to be published in 
                the Federal Register and all meetings of the committee 
                shall be open to the public.
                    ``(D) Authority.--Sections 203, 205, 207, and 208 
                of title 18, United States Code, shall not apply to the 
                members of the consensus committee. Members shall not 
                be considered to be special government employees for 
                purposes of part 2634 of title 5, Code of Federal 
                Regulations. The consensus committee shall not be 
                considered an advisory committee for purposes of the 
                Federal Advisory Committee Act.
                    ``(E) Administration.--The consensus committee and 
                the administering organization shall operate in 
                conformance with American National Standards Institute 
                procedures for the development and coordination of 
                American National Standards and shall apply to such 
                Institute to obtain accreditation.
                    ``(F) Staff.--The consensus committee shall be 
                provided reasonable staff resources by the 
                administering organization. Upon a showing of need and 
                subject to the approval of the Secretary, the 
                administering organization shall furnish technical 
                support to any of the various interest categories on 
                the consensus committee.
    ``(b) Other Orders.--The Secretary may issue orders that are not 
developed under the procedures set forth in subsection (a) in order to 
respond to an emergency health or safety issue, or to address issues on 
which the Secretary determines the consensus committee will not make 
timely recommendations, but only if the proposed order is first 
submitted by the Secretary to the consensus committee for review and 
the committee is afforded 90 days to provide its views on the proposed 
order to the Secretary. If the consensus committee fails to act within 
such period or if the Secretary rejects any significant change 
recommended by the consensus committee, the public notice of the order 
shall include an explanation of the reasons for the Secretary's action. 
The Secretary may issue such orders only in accordance with the 
provisions of section 553 of title 5, United States Code.'';
            (2) by striking subsection (e);
            (3) in subsection (f), by striking the matter preceding 
        paragraph (1) and inserting the following:
    ``(e) Considerations in Establishing and Interpreting Standards.--
The consensus committee, in recommending standards and interpretations, 
and the Secretary, in establishing standards or issuing interpretations 
under this section, shall--'';
            (4) by striking subsection (g);
            (5) in the first sentence of subsection (j), by striking 
        ``subsection (f)'' and inserting ``subsection (e)''; and
            (6) by redesignating subsections (h), (i), and (j) as 
        subsections (f), (g), and (h), respectively.

SEC. 805. ABOLISHMENT OF NATIONAL MANUFACTURED HOME ADVISORY COUNCIL.

    Section 605 (42 U.S.C. 5404) is hereby repealed.

SEC. 806. PUBLIC INFORMATION.

    Section 607 (42 U.S.C. 5406) is amended--
            (1) in subsection (a)--
                    (A) by inserting ``to the Secretary'' after 
                ``submit''; and
                    (B) by adding at the end the following new 
                sentence: ``Such cost and other information shall be 
                submitted to the consensus committee by the Secretary 
                for its evaluation.'';
            (2) in subsection (d), by inserting ``, the consensus 
        committee,'' after ``public,''; and
            (3) by striking subsection (c) and redesignating 
        subsections (d) and (e) as subsections (c) and (d), 
        respectively.

SEC. 807. INSPECTION FEES.

    Section 620 (42 U.S.C. 5419) is amended to read as follows:
    ``Sec. 620. (a) Authority To Establish Fees.--In carrying out the 
inspections required under this title and in developing standards 
pursuant to section 604, the Secretary may establish and impose on 
manufactured home manufacturers, distributors, and retailers such 
reasonable fees as may be necessary to offset the expenses incurred by 
the Secretary in conducting such inspections and administering the 
consensus standards development process and for developing standards 
pursuant to section 604(b), and the Secretary may use any fees so 
collected to pay expenses incurred in connection therewith. Such fees 
shall only be modified pursuant to rulemaking in accordance with the 
provisions of section 553 of title 5, United States Code.
    ``(b) Deposit of Fees.--Fees collected pursuant to this title shall 
be deposited in a fund, which is hereby established in the Treasury for 
deposit of such fees. Amounts in the fund are hereby available for use 
by the Secretary pursuant to subsection (a). The use of these fees by 
the Secretary shall not be subject to general or specific limitations 
on appropriated funds unless use of these fees is specifically 
addressed in any future appropriations legislation. The Secretary shall 
provide an annual report to Congress indicating expenditures under this 
section. The Secretary shall also make available to the public, in 
accordance with all applicable disclosure laws, regulations, orders, 
and directives, information pertaining to such funds, including 
information pertaining to amounts collected, amounts disbursed, and the 
fund balance.''.

SEC. 808. ELIMINATION OF ANNUAL REPORT REQUIREMENT.

    Section 626 (42 U.S.C. 5425) is hereby repealed.

SEC. 809. EFFECTIVE DATE.

    The amendments made by this title shall take effect on the date of 
enactment of this Act, except that the amendments shall have no effect 
on any order or interpretative bulletin that is published as a proposed 
rule pursuant to the provisions of section 553 of title 5, United 
States Code, on or before that date.
            Amend the title so as to read: ``An Act to repeal the United States 
        Housing Act of 1937, deregulate the public housing program and the 
        program for rental housing assistance for low-income families, and 
        increase community control over such programs, and for other 
        purposes.''.
            Attest:

                                                                          Clerk.