[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 1260 Introduced in Senate (IS)]

  1st Session
                                S. 1260

 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.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

           September 19 (legislative day, September 5), 1995

   Mr. Mack (for himself, Mr. D'Amato, and Mr. Bond) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
 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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Public Housing 
Reform and Empowerment Act of 1995''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purpose.
Sec. 3. Definitions.
Sec. 4. Effective date.
Sec. 5. Technical recommendations; elimination of obsolete documents.
                   TITLE I--PUBLIC AND INDIAN HOUSING

Sec. 101. Declaration of policy.
Sec. 102. Nondiscrimination.
Sec. 103. Authority of public housing agencies.
Sec. 104. Definitions.
Sec. 105. Contributions for lower income housing projects.
Sec. 106. Public housing agency plan.
Sec. 107. Contract provisions and requirements.
Sec. 108. Expansion of powers.
Sec. 109. Public housing designated for the elderly and the disabled.
Sec. 110. Public and Indian housing capital and operating funds.
Sec. 111. Labor standards.
Sec. 112. Repeal of energy conservation; consortia and joint ventures.
Sec. 113. Repeal of modernization fund.
Sec. 114. Income eligibility for assisted housing.
Sec. 115. Demolition and disposition of public housing.
Sec. 116. Repeal of family investment centers; vouchers for public 
                            housing.
Sec. 117. Repeal of family self-sufficiency; homeownership 
                            opportunities.
Sec. 118. Conversion of distressed public housing to vouchers.
Sec. 119. Applicability to Indian housing.
                 TITLE II--SECTION 8 RENTAL ASSISTANCE

Sec. 201. Merger of the certificate and voucher programs.
Sec. 202. Repeal of Federal preferences.
Sec. 203. Portability.
Sec. 204. Leasing to voucher holders.
Sec. 205. Homeownership option.
Sec. 206. Technical and conforming amendments.
Sec. 207. Implementation.
Sec. 208. Effective date.
                  TITLE III--MISCELLANEOUS PROVISIONS

Sec. 301. Public housing flexibility in the CHAS.
Sec. 302. Public housing flexibility in the HOME program.
Sec. 303. Repeal of certain provisions.
Sec. 304. Determination of income limits.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--The Congress finds that--
            (1) there exists throughout the Nation a need for decent, 
        safe, and affordable housing;
            (2) as of the date of enactment of this Act, the inventory 
        of public housing units owned and operated by public housing 
        agencies, an asset in which the Federal Government has invested 
        approximately $90,000,000,000, has traditionally provided 
        rental housing that is affordable to low-income persons;
            (3) despite serving this critical function, the public 
        housing system is plagued by a series of problems, including 
        the concentration of very poor people in very poor 
        neighborhoods and disincentives for economic self-sufficiency;
            (4) the Federal method of overseeing every aspect of public 
        housing by detailed and complex statutes and regulations 
        aggravates the problem and places excessive administrative 
        burdens on public housing agencies;
            (5) the interests of low-income persons, and the public 
        interest, will best be served by a reformed public housing 
        program that--
                    (A) consolidates many public housing programs into 
                a single program for the operation and capital needs of 
                public housing;
                    (B) streamlines program requirements; and
                    (C) vests in public housing agencies that perform 
                well the maximum feasible authority, discretion, and 
                control with appropriate accountability to both public 
                housing residents and localities; and
            (6) voucher and certificate programs under section 8 of the 
        United States Housing Act of 1937 are successful for 
        approximately 80 percent of applicants, and a consolidation of 
        the voucher and certificate programs into a single, market-
        driven program will assist in making section 8 tenant-based 
        assistance more successful in assisting low-income families in 
        obtaining affordable housing.
    (b) Purpose.--The purpose of this Act is to consolidate the various 
programs and activities under the public housing programs administered 
by the Secretary in a manner designed to reduce Federal overregulation, 
to redirect the responsibility for a consolidated program to States, 
localities, public housing agencies, and public housing residents, and 
to require Federal action to overcome problems of public housing 
agencies with severe management deficiencies.

SEC. 3. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Public housing agency.--The term ``public housing 
        agency'' has the same meaning as in section 3 of the United 
        States Housing Act of 1937.
            (2) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.

SEC. 4. EFFECTIVE DATE.

    Except as otherwise specifically provided in this Act or the 
amendments made by this Act, this Act and the amendments made by this 
Act shall become effective on the date of enactment of this Act.

SEC. 5. TECHNICAL RECOMMENDATIONS; ELIMINATION OF OBSOLETE DOCUMENTS.

    (a) Technical Recommendations.--Not later than 9 months after the 
date of enactment of this Act, the Secretary shall submit to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Banking and Financial Services of the House of 
Representatives, recommended technical and conforming amendments to 
carry out the amendments made by this Act.
    (b) Elimination of Obsolete Documents.--
            (1) In general.--Effective 1 year after the date of 
        enactment of this Act, no rule, regulation, or order (including 
        all handbooks, notices, and related requirements) issued or 
        promulgated under the United States Housing Act of 1937 before 
        the date of enactment of this Act may be enforced by the 
        Secretary.
            (2) Proposed regulations.--Not later than 6 months after 
        the date of enactment of this Act, the Secretary shall submit 
        to the Congress proposed regulations that the Secretary 
        determines are necessary to carry out the United States Housing 
        Act of 1937, as amended by this Act.

                   TITLE I--PUBLIC AND INDIAN HOUSING

SEC. 101. DECLARATION OF POLICY.

    Section 2 of the United States Housing Act of 1937 (42 U.S.C. 1437) 
is amended to read as follows:

``SEC. 2. DECLARATION OF POLICY.

    ``It is the policy of the United States to promote the general 
welfare of the Nation by employing the funds and credit of the Nation, 
as provided in this Act--
            ``(1) to assist States and political subdivisions of States 
        to remedy the unsafe housing conditions and the acute shortage 
        of decent and safe dwellings for low-income families; and
            ``(2) consistent with the objectives of this title, to vest 
        in public housing agencies that perform well, the maximum 
        amount of responsibility and flexibility in program 
        administration, with appropriate accountability to both public 
        housing residents and localities.''.

SEC. 102. NONDISCRIMINATION.

    Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et 
seq.) is amended by adding at the end the following new section:

``SEC. 27. NONDISCRIMINATION.

    ``(a) Public Housing Residents.--No person shall be prohibited from 
serving on the board of directors or similar governing body of a public 
housing agency because of the residence of that person in a low-income 
housing project.
    ``(b) Nondiscrimination Based on Race, Color, National Origin, 
Religion, or Sex.--
            ``(1) In general.--No person in the United States shall, 
        based on the race, color, national origin, religion, or sex of 
        that person be excluded from participation in, denied the 
        benefits of, or be subjected to discrimination under any 
        program or activity funded in whole or in part with funds made 
        available under this title.
            ``(2) Applicability of other laws.--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 apply to any such program or 
        activity.''.

SEC. 103. AUTHORITY OF PUBLIC HOUSING AGENCIES.

    (a) Authority of Public Housing Agencies.--
            (1) In general.--Section 3(a)(2) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437a(a)(2)) is amended to read 
        as follows:
            ``(2) Authority of public housing agencies.--
                    ``(A) Ceiling rents.--Notwithstanding paragraph 
                (1), a public housing agency may--
                            ``(i) adopt ceiling rents that reflect the 
                        reasonable market value of the housing, but 
                        that are not less than the actual monthly 
                        costs--
                                    ``(I) to operate such housing; and
                                    ``(II) to make a deposit to a 
                                replacement reserve (in the sole 
                                discretion of the public housing 
                                agency); and
                            ``(ii) allow families to pay ceiling rents 
                        referred to in clause (i), unless, with respect 
                        to any family, the ceiling rent established 
                        under this subparagraph would exceed the amount 
                        payable as rent by that family under paragraph 
                        (1).
                    ``(B) Minimum rent.--Notwithstanding paragraph (1), 
                a public housing agency may provide that each family 
                residing in a public housing project or receiving 
                tenant-based or project-based assistance under section 
                8 shall pay a minimum monthly rent in an amount not to 
                exceed $30 per month.
                    ``(C) Mixed-income projects.--
                            ``(i) In general.--Notwithstanding 
                        paragraph (1), and subject to clause (ii), a 
                        public housing agency may own or operate one or 
                        more mixed-income projects, except as otherwise 
                        provided in the public housing agency plan of 
                        that public housing agency submitted in 
                        accordance with section 5A.
                            ``(ii) Restriction.--No assistance provided 
                        under section 9 shall be used by a public 
                        housing agency in direct support of any unit 
                        rented to a household that is not a low-income 
                        household.
                    ``(D) Police officers.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of law, a public housing agency 
                        may, in accordance with the public housing 
                        agency plan of the public housing agency, allow 
                        a police officer who is not otherwise eligible 
                        for residence in public housing to reside in a 
public housing unit. The number and location of units occupied by 
police officers under this clause, and the terms and conditions of 
their tenancies, shall be determined by the public housing agency.
                            ``(ii) Definition.--As used in this 
                        subparagraph, the term `police officer' means 
                        any person determined by a public housing 
                        agency to be, during the period of residence of 
                        such person in public housing, employed on a 
                        full-time basis by a Federal, State, or local 
                        government or any agency thereof (including a 
                        public housing agency having an accredited 
                        police force) as a duly licensed professional 
                        police officer.
                    ``(E) Encouragement of self-sufficiency.--Public 
                housing agencies shall develop rental policies that 
                encourage and reward employment and upward economic 
                mobility.''.
            (2) Regulations.--
                    (A) In general.--The Secretary shall, by 
                regulation, after notice and an opportunity for public 
                comment, establish such requirements as may be 
                necessary to carry out section 3(a)(2)(A) of the United 
                States Housing Act of 1937, as amended by paragraph 
                (1).
                    (B) Transition rule.--Prior to the issuance of 
                final regulations under paragraph (1), a public housing 
                agency may implement ceiling rents, which shall be--
                            (i) determined in accordance with section 
                        3(a)(2)(A) of the United States Housing Act of 
                        1937, as such section existed on the day before 
                        effective date of this Act; or
                            (ii) equal to the 95th percentile of the 
                        rent paid for a unit of comparable size by 
                        tenants in the same project or a group of 
                        comparable projects totaling 50 units or more.
    (b) High Performing Public Housing Agencies.--
            (1) In general.--Section 3(a) of the United States Housing 
        Act of 1937 (42 U.S.C. 1437(a)) is amended by adding at the end 
        the following new paragraph:
            ``(3) High performing public housing agencies.--
                    ``(A) In general.--Notwithstanding the rent 
                calculation formula in paragraph (1), subject to 
                subparagraph (B), the Secretary shall permit a high 
                performing public housing agency, as determined by the 
                Secretary, to determine the amount that a family 
                residing in public housing shall pay as rent.
                    ``(B) Limitation.--With respect to a family whose 
                income is equal to or less than 30 percent of the 
                median income for the area, as determined by the 
                Secretary with adjustments for smaller and larger 
                families, a public housing agency may not require a 
                family to pay as rent under subparagraph (A) an amount 
                that exceeds the greater of--
                            ``(i) 30 percent of the monthly adjusted 
                        income of the family; and
                            ``(ii) $30.''.
            (2) Phase-in period.--If a public housing agency charges 
        rent pursuant to section 3(a)(3) of the United States Housing 
        Act of 1937, as added by paragraph (1) of this subsection, the 
        agency shall phase in any increase in the amount otherwise 
        payable by the family over a 3-year period.
            (3) Reports to congress.--
                    (A) Initial report.--Not later than 2 years after 
                the date of enactment of this Act, the Secretary shall 
                report to the Congress on the impact of section 3(a)(3) 
                of the United States Housing Act of 1937, as added by 
                paragraph (1) of this subsection, on residents and on 
                the economic viability of public housing agencies.
                    (B) Final report.--Not later than 5 years after the 
                date of enactment of this Act, the Secretary shall 
                submit to the Congress a final report on the impact of 
                section 3(a)(3) of the United States Housing Act of 
                1937, as added by paragraph (1) of this subsection, on 
                residents and on the economic viability of public 
                housing agencies. The report shall include 
                recommendations for any legislative changes to rent 
                reform policies.

SEC. 104. DEFINITIONS.

    (a) Definitions.--
            (1) Single persons.--Section 3(b)(3) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437a(b)(3)) is amended--
                    (A) in subparagraph (A), in the third sentence, by 
                striking ``the Secretary shall'' and all that follows 
                before the period at the end and inserting the 
                following: ``the public housing agency may give 
                preference to single persons who are elderly or 
                disabled persons before single persons who are 
                otherwise eligible''; and
                    (B) in subparagraph (B), in the second sentence, by 
                striking ``regulations of the Secretary'' and inserting 
                ``public housing agency plan of the public housing 
                agency''.
            (2) Definition of adjusted income.--Section 3(b)(5) of the 
        United States Housing Act of 1937 (42 U.S.C. 1437a(b)(5)) is 
        amended to read as follows:
            ``(5) Adjusted income.--The term `adjusted income' means 
        the income that remains after excluding--
                    ``(A) $480 for each member of the family residing 
                in the household (other than the head of the household 
                or spouse)--
                            ``(i) who is under 18 years of age; or
                            ``(ii) who is--
                                    ``(I) 18 years of age or older; and
                                    ``(II) a person with disabilities 
                                or a full-time student;
                    ``(B) $400 for an elderly or disabled family;
                    ``(C) the amount by which the aggregate of--
                            ``(i) medical expenses for an elderly or 
                        disabled family; and
                            ``(ii) reasonable attendant care and 
                        auxiliary apparatus expenses for each family 
                        member who is a person with disabilities, to 
                        the extent necessary to enable any member of 
                        the family (including a member who is a person 
                        with disabilities) to be employed;
                exceeds 3 percent of the annual income of the family;
                    ``(D) child care expenses, to the extent necessary 
                to enable another member of the family to be employed 
                or to further his or her education;
                    ``(E) excessive travel expenses, not to exceed $25 
                per family per week, for employment- or education-
                related travel, except that this subparagraph shall 
                apply only to a family assisted by an Indian housing 
                authority; and
                    ``(F) any other income that the public housing 
                agency determines to be appropriate, as provided in the 
                public housing agency plan of the public housing 
                agency.''.
    (b) Definitions of Terms Used in Reference to Public Housing.--
            (1) Technical correction.--Section 622(c) of the Housing 
        and Community Development Act of 1992 (Public Law 102-550; 106 
        Stat. 3817) is amended by inserting ``in paragraph (3),'' after 
        ``is amended''.
            (2) Housing act of 1937.--Section 3(c) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437a(c)) is amended--
                    (A) in paragraph (1), by inserting ``and of the 
                fees and related costs normally involved in obtaining 
                non-Federal financing and tax credits with or without 
                private and nonprofit partners'' after ``carrying 
                charges'';
                    (B) in paragraph (2), in the first sentence, by 
                striking ``security personnel),'' and all that follows 
                through the period and inserting the following: 
                ``security personnel), and all eligible activities 
                under the Public and Assisted Housing Drug Elimination 
                Act of 1990, or financing in connection with a low-
                income housing project, including projects developed 
                with non-Federal financing and tax credits, with or 
                without private and nonprofit partners.'';
                    (C) in the undesignated paragraph immediately 
                following paragraph (3), by striking ``The earnings 
                of'' and all that follows through the period at the 
                end; and
                    (D) by adding at the end the following new 
                paragraphs:
            ``(6) Public housing agency plan.--The term `public housing 
        agency plan' means the annual plan adopted by a public housing 
        agency under section 5A.
            ``(7) Disabled housing.--The term `disabled housing' means 
        any project, building, or portion of a project or building that 
        is designated by a public housing agency for occupancy 
        exclusively by disabled persons or families.
            ``(8) Elderly housing.--The term `elderly housing' means 
        any project, building, or portion of a project or building, 
        that is designated by a public housing agency for occupancy 
        exclusively by elderly persons or families, including elderly 
        disabled persons or families.
            ``(9) Mixed-income project.--
                    ``(A) In general.--The term `mixed-income project' 
                means a project that is occupied both by one or more 
                low-income households and by one or more households 
                that are not low-income households.
                    ``(B) Types of projects.--The term `mixed-income 
                project' includes a project developed--
                            ``(i) by a public housing agency or an 
                        entity controlled by a public housing agency; 
                        and
                            ``(ii) by a partnership, a limited 
                        liability company, or other entity in which the 
                        public housing agency (or an entity controlled 
                        by a public housing agency) is a general 
                        partner, managing member, or otherwise has 
                        significant participation in directing the 
                        activities of such entity, if--
                                    ``(I) units are made available in 
                                the project, by master contract or 
                                individual lease, for occupancy by low-
                                income families identified by the 
                                public housing agency for a period of 
                                not less than 20 years; and
                                    ``(II) the number of public housing 
                                units are approximately in the same 
                                proportion to the total number of units 
                                in the mixed-income project that, in 
                                the sole determination of the public 
                                housing agency, the value of the 
                                financial assistance provided by the 
                                public housing agency bears to the 
                                value of the total equity investment in 
                                the project, or shall not be less than 
                                the number of units that could have 
                                been developed under the conventional 
                                public housing program with the 
                                assistance.
                    ``(C) Taxation.--A mixed-income project may elect 
                to have all units subject to the local real estate 
                taxes, except that units designated as public housing 
                units shall be eligible at the discretion of the public 
                housing agency for the taxing requirements under 
                section 6(d).''.

SEC. 105. CONTRIBUTIONS FOR LOWER INCOME HOUSING PROJECTS.

    Section 5 of the United States Housing Act of 1937 (42 U.S.C. 
1437c) is amended by striking subsections (h) through (l).

SEC. 106. PUBLIC HOUSING AGENCY PLAN.

    (a) In General.--Title I of the United States Housing Act of 1937 
(42 U.S.C. 1437 et seq.) is amended by inserting after section 5 the 
following new section:

``SEC. 5A. PUBLIC HOUSING AGENCY PLAN.

    ``(a) In General.--
            ``(1) Submission.--Each public housing agency shall submit 
        to the Secretary a written public housing agency plan developed 
        in accordance with this section.
            ``(2) Consistency requirement.--Each public housing agency 
        plan submitted to the Secretary under paragraph (1) shall be--
                    ``(A) made in consultation with the local advisory 
                board established under subsection (c);
                    ``(B) consistent with the Comprehensive Housing 
                Affordability Strategy for the jurisdiction in which 
                the public housing agency is located, as provided under 
                title I of the Cranston-Gonzalez National Affordable 
                Housing Act; and
                    ``(C) accompanied by a certification by an 
                appropriate State or local public official that the 
                proposed public housing activities are consistent with 
                the housing strategy of the jurisdiction to be served 
                by the public housing agency, as required by 
                subparagraph (B).
    ``(b) Contents.--Each public housing agency plan shall contain, at 
a minimum, the following:
            ``(1) Certification.--A written certification that the 
        public housing agency is a governmental entity or public body 
        (or agency or instrumentality thereof) that is authorized to 
        engage in or assist in the development or operation of low-
        income housing. Any reference in any provision of law of the 
        jurisdiction authorizing the creation of the public housing 
        agency shall be identified and any legislative declaration of 
        purpose in regard thereto shall be set forth in the 
        certification with full text.
            ``(2) Statement of policy.--An annual statement of policy 
        identifying the primary goals and objectives of the public 
        housing agency for the year for which the statement is 
        submitted, together with any major developments, projects, or 
        programs, including all proposed costs and activities under the 
        Capital and Operating Funds of the public housing agency 
        established under section 9.
            ``(3) General policies, rules, and regulations.--The 
        policies, rules, and regulations of the public housing agency 
        regarding--
                    ``(A) the requirements for eligibility into each 
                program administered by the public housing agency and 
                the policies of the public housing agency concerning 
                verification of eligibility, which verification shall 
                be required upon initial commencement of residency and 
                not less frequently than annually thereafter;
                    ``(B) the requirements for the selection and 
                admission of eligible families into the program or 
                programs of the public housing agency, including the 
                tenant screening policies, any preferences or 
                priorities for selection and admission, and the 
                requirements pertaining to the administration of the 
                waiting list or lists of the public housing agency;
                    ``(C) the procedure for assignment of persons 
                admitted into the program to dwelling units owned, 
                leased, managed, or assisted by the public housing 
                agency; and
                    ``(D) the requirements for occupancy of dwelling 
                units, including all standard lease provisions, and 
                conditions for continued occupancy, termination, and 
                eviction.
            ``(4) Management.--The policies, rules, and regulations 
        relating to the management of the public housing agency, and 
        the projects and programs of the public housing agency, 
        including--
                    ``(A) a description of how the public housing 
                agency is organized and staffed to perform the duties 
                and functions of the public housing agency;
                    ``(B) policies relating to the marketing of 
                dwelling units owned or operated by the public housing 
                agency;
                    ``(C) policies relating to rent collection;
                    ``(D) policies relating to security;
                    ``(E) policies relating to services and amenities 
                provided or offered to families assisted, including all 
                related charges or fees, if any;
                    ``(F) any system of priorities in the management of 
                the operations of the public housing agency; and
                    ``(G) a list of activities to enhance tenant 
                empowerment and management, including assistance to 
                resident councils and resident management corporations.
            ``(5) Rents and charges.--
                    ``(A) In general.--The policies of the public 
                housing agency concerning rents or other charges, the 
                manner in which such policies are determined, and the 
                justification for the policies.
                    ``(B) Factors for consideration.--In determining 
                and justifying the policies described in subparagraph 
                (A), the public housing agency shall take into 
                account--
                            ``(i) the goals of the public housing 
                        agency to serve households with a broad range 
                        of incomes, to create incentives for families 
                        to obtain employment, and to serve primarily 
                        low-income families;
                            ``(ii) the costs and other financial 
                        considerations of the public housing agency; 
                        and
                            ``(iii) such other factors as the public 
                        housing agency determines to be relevant.
            ``(6) Economic and social self-sufficiency programs.--A 
        description of any programs, plans, and activities of the 
        public housing agency for the enhancement of the economic and 
        social self-sufficiency of residents assisted by the programs 
        of the public housing agency. The description shall include a 
        statement of any self-sufficiency requirements affecting 
        residents assisted by the programs of the public housing 
        agency.
            ``(7) Use of funds for existing units.--
                    ``(A) In general.--A statement describing the use 
                of distributions from the Capital Fund and Operating 
                Fund of the public housing agency, established in 
                accordance with section 9, including a general 
                description of the public housing agency policies or 
                plans to keep the property of the public housing agency 
                in a decent and safe condition.
                    ``(B) Annual and 5-year plan.--An annual plan and, 
                if appropriate, a 5-year plan of the public housing 
                agency for modernization of the existing dwelling units 
                of the public housing agency, a plan for preventative 
                maintenance, a plan for routine maintenance, and a plan 
                to handle emergencies and other disasters. Each annual 
                and 5-year plan shall include a general statement 
                identifying the long-term viability and physical 
                condition of each of the projects and other property of 
                the public housing agency, including cost estimates and 
                demolition plans, if any.
            ``(8) Use of funds for new or additional units and 
        demolition or disposition.--
                    ``(A) In general.--
                            ``(i) Capital and operating funds.--If 
                        applicable, a description of the plans of the 
                        public housing agency for the Capital Fund and 
                        Operating Fund distributions of the public 
                        housing agency established under section 9, for 
                        the purpose of new construction, demolition, or 
                        disposition.
                            ``(ii) Annual and 5-year plans.--An annual 
                        plan and a 5-year plan describing any current 
                        and future plans for the development or 
                        acquisition of new or additional dwelling 
                        units, or the demolition or disposition of any 
                        of the existing housing stock of the public 
                        housing agency, including--
                                    ``(I) any plans for the sale of 
                                existing dwelling units to low-income 
                                residents, other low-income persons or 
                                families, or organizations acting as 
                                conduits for sales to low-income 
                                residents, or other low-income persons 
                                or families, under a homeownership 
                                plan; and
                                    ``(II) the plans of the public 
                                housing agency, if any, for replacement 
                                of dwelling units to be demolished or 
                                disposed of, and any plans providing 
                                for the relocation of residents who 
                                will be displaced by a demolition or 
                                disposition of units.
                    ``(B) Demolitions.--In the case of a demolition of 
                any existing housing stock, each plan required under 
                subparagraph (A)(ii) shall include--
                            ``(i) identification of the property to be 
                        demolished;
                            ``(ii) the estimated costs of the 
                        demolition and the sources of funds to pay for 
                        the demolition;
                            ``(iii) the uses and explanation of the 
                        uses to which the property will be put after 
                        demolition; and
                            ``(iv) the reasons for the demolition and 
                        for the conclusion of the public housing agency 
                        that the demolition is in the best interests of 
                        the programs of the public housing agency.
                    ``(C) Dispositions.--In the case of a disposition 
                of any existing housing stock, each plan required under 
                subparagraph (A)(ii) shall include--
                            ``(i) a description of the property to be 
                        disposed of;
                            ``(ii) a description of the use or uses to 
                        which the property will be put after 
                        disposition, including findings with regard 
                        to--
                                    ``(I) whether the new use or uses 
                                are consistent and compatible with any 
                                public housing agency dwelling units 
                                that will remain in the immediate 
                                vicinity of the property to be disposed 
                                of; and
                                    ``(II) whether the public housing 
                                agency plans to retain any control over 
                                or rights in the property after 
                                disposition;
                            ``(iii) identification of any 
                        consideration, whether in money, property, or 
                        both, to be received by the public housing 
                        agency as part of the disposition, and the low-
                        income uses that the public housing agency 
                        intends for the proceeds, pursuant to the 
                        requirements of section 18; and
                            ``(iv) the reasons for disposition of the 
                        property by the public housing agency and for 
                        the conclusion of the public housing agency 
                        that the disposition is in the best interests 
                        of the tenants, programs, and activities of the 
                        public housing agency.
                    ``(D) Other information.--The public housing agency 
                shall, with respect to any demolition or disposition 
                plan required by subparagraph (A)(ii), comply with the 
                requirements of section 18, and the public housing 
                agency plan shall expressly certify such compliance.
            ``(9) Operating fund plan.--
                    ``(A) In general.--A plan for the Operating Fund of 
                the public housing agency, including--
                            ``(i) an identification of all sources and 
                        uses of funding and income of the public 
                        housing agency;
                            ``(ii) a description for the establishment, 
                        maintenance, and use of reserves; and
                            ``(iii) an operating budget, a budget for 
                        any modernization or development, and any plans 
                        that the public housing agency has for 
                        borrowing funds, including a description of any 
                        anticipated actions to mortgage or otherwise 
                        grant a security interest in any of the 
                        projects or other properties of the public 
                        housing agency in connection with public 
                        housing agency borrowings.
                    ``(B) Approval by the secretary.--Each plan under 
                subparagraph (A) involving mortgaging or granting a 
                security interest in the projects of the public housing 
                agency shall--
                            ``(i) be deemed to be approved by the 
                        Secretary, unless the Secretary provides a 
                        written disapproval to the public housing 
                        agency not later than 45 days after the date on 
                        which the plan is submitted under subparagraph 
                        (A); and
                            ``(ii) include reasonable provisions for 
                        the relocation of low-income tenants in the 
                        event of displacement.
            ``(10) Additional performance requirements.--A description 
        of any additional performance standards established by the 
        public housing agency.
            ``(11) Annual audit.--The results of an annual audit of the 
        public housing agency, which shall be conducted by an 
        independent certified public accounting firm pursuant to 
        generally accepted accounting principles.
    ``(c) Local Advisory Board.--
            ``(1) In general.--
                    ``(A) Establishment.--Each public housing agency 
                shall establish one or more local advisory boards in 
                accordance with this subsection, adequate to reflect 
                and represent all of the residents of dwelling units 
                owned, operated, or assisted by the public housing 
                agency.
                    ``(B) Inclusion in public housing agency plan.--The 
                rules governing each local advisory board shall be 
                included in the public housing agency plan of the 
                public housing agency.
            ``(2) Membership.--Each local board established under this 
        subsection shall be composed of the following membership:
                    ``(A) Not less than 60 percent of the board shall 
                be residents of dwelling units owned, operated, or 
                assisted by the public housing agency.
                    ``(B) The remainder of the board shall be comprised 
                of--
                            ``(i) representatives of the community in 
                        which the public housing agency is located; and
                            ``(ii) local government officials of the 
                        community in which the public housing agency is 
                        located.
            ``(3) Purpose.--Each local advisory board established under 
        this subsection shall assist and make recommendations in the 
        development of the public housing agency plan for submission 
        under this section. The public housing agency shall consider 
        the recommendations of the local advisory board in preparing 
        the final public housing agency plan, and shall include a copy 
        of such recommendations in the public housing agency plan 
        submitted to the Secretary under this section.
    ``(d) Publication of Notice.--
            ``(1) In general.--Not later than 45 days before adoption 
        of any public housing agency plan by the governing body of the 
        public housing agency, the public housing agency shall publish 
        a notice informing the public that--
                    ``(A) the proposed public housing agency plan is 
                available for inspection at the principal office of the 
                public housing agency during normal business hours; and
                    ``(B) a public hearing will be held to discuss the 
                public housing agency plan and to invite public comment 
                thereon.
            ``(2) Public hearing.--Each public housing agency shall 
        conduct a public hearing, as provided in the notice published 
        under paragraph (1), not earlier than 30 days nor later than 50 
        days after the date on which the notice was published. After 
        such public hearing, the public housing agency shall, after 
        considering all public comments received and making any changes 
        it deems appropriate, adopt the public housing agency plan and 
        submit the plan to the Secretary in accordance with this 
        section.
    ``(e) Coordinated Procedures.--Each public housing agency shall, in 
conjunction with the State or relevant unit of general local 
government, establish procedures to ensure that the public housing 
agency plan required by this section is consistent with the applicable 
Comprehensive Housing Affordability Strategy for the jurisdiction in 
which the public housing agency is located, in accordance with title I 
of the Cranston-Gonzalez National Affordable Housing Act.
    ``(f) Amendments and Modifications to Plans.--
            ``(1) In general.--Nothing in this section shall preclude a 
        public housing agency, after submitting a plan to the Secretary 
        in accordance with this section, from amending or modifying any 
        policy, rule, regulation, or plan of the public housing agency, 
        except that no such significant amendment or modification may 
        be implemented--
                    ``(A) other than at a duly called meeting of 
                commissioners (or other comparable governing body) of 
                the public housing agency which is open to the public; 
                and
                    ``(B) until notification of such amendment or 
                modification is sent to the Secretary and approved in 
                accordance with subsection (g)(4).
            ``(2) Consistency.--Any significant amendment or 
        modification to a plan submitted to the Secretary under this 
        section shall--
                    ``(A) comply with the requirements of subsection 
                (a)(2); and
                    ``(B) be considered by the local board, as provided 
                in subsection (c).
    ``(g) Timing of Plans.--
            ``(1) In general.--
                    ``(A) Initial submission.--Each public housing 
                agency shall submit the initial plan required by this 
                section, and any amendment or revision to the initial 
                plan, to the Secretary at such time and in such form as 
                the Secretary shall require.
                    ``(B) Annual submission.--Not later than 60 days 
                prior to the start of the fiscal year of the public 
                housing agency, after initial submission of the plan 
                required by this section in accordance with 
                subparagraph (A), each public housing agency shall 
                annually submit to the Secretary a plan update, 
                including any amendments or reports containing 
                information constituting changes or modifications to 
                the public housing agency plan of the public housing 
                agency.
            ``(2) Review and approval.--
                    ``(A) Review.--After submission of the public 
                housing agency plan or any amendment or report of 
                changes or modifications to the plan to the Secretary, 
the Secretary shall review the public housing agency plan, amendment, 
or report to determine--
                            ``(i) in the case of a public housing 
                        agency plan, whether the contents of the plan--
                                    ``(I) set forth the information 
                                required by this section to be 
                                contained in a public housing agency 
                                plan; and
                                    ``(II) are consistent with 
                                information and data available to the 
                                Secretary; and
                            ``(ii) in all cases, whether the activities 
                        proposed by the plan, amendment, or report are 
                        prohibited by or inconsistent with any 
                        provision of this title or other applicable 
                        law.
                    ``(B) Approval.--
                            ``(i) In general.--Except as provided in 
                        paragraph (3)(B), not later than 45 days after 
                        the date on which a public housing agency plan 
                        is submitted in accordance with this section, 
                        the Secretary shall provide written notice to 
                        the public housing agency if the plan has been 
                        disapproved, stating with specificity the 
                        reasons for the disapproval.
                            ``(ii) Failure to provide notice of 
                        disapproval.--If the Secretary does not provide 
                        notice of disapproval under clause (i) before 
                        the expiration of the 45-day period described 
                        in clause (i), the public housing agency plan 
                        of the public housing agency shall be deemed to 
                        be approved by the Secretary.
            ``(3) Secretarial discretion.--
                    ``(A) In general.--The Secretary shall have sole 
                discretion to require such additional information and 
                performance requirements as deemed appropriate for each 
                public housing agency that is designated by the 
                Secretary as a troubled public housing agency under 
                section 6(j).
                    ``(B) Troubled agencies.--The Secretary shall 
                provide explicit written approval or disapproval, in a 
                timely manner, for a public housing agency plan 
                submitted by any public housing agency designated by 
                the Secretary as a troubled public housing agency under 
                section 6(j).
            ``(4) Streamlined plan.--In carrying out this section, the 
        Secretary may establish a streamlined public housing agency 
        plan for--
                    ``(A) public housing agencies that are determined 
                by the Secretary to be high performing public housing 
                agencies; and
                    ``(B) public housing agencies with less than 250 
                units.''.
    (b) Interim Rule.--
            (1) In general.--Not later than January 1, 1996, the 
        Secretary shall issue an interim rule to require the submission 
        of an interim public housing agency plan by each public housing 
        agency, as required by section 5A of the United States Housing 
        Act of 1937 (as added by subsection (a) of this section).
            (2) Regulations.--Not later than 1 year after the date of 
        enactment of this Act, the Secretary shall promulgate final 
        regulations implementing section 5A of the United States 
        Housing Act of 1937, as added by subsection (a) of this 
        section. Such regulations shall be subject to negotiated 
        rulemaking.

SEC. 107. CONTRACT PROVISIONS AND REQUIREMENTS.

    (a) Conditions.--Section 6(a) of the United States Housing Act of 
1937 (42 U.S.C. 1437d(a)) is amended--
            (1) in the first sentence, by inserting ``, in a manner 
        consistent with the public housing agency plan submitted under 
        section 5A'' before the period; and
            (2) by striking the second sentence.
    (b) Revision of Maximum Income Limits; Certification of Compliance 
With Requirements; Notification of Eligibility.--Section 6(c) of the 
United States Housing Act of 1937 (42 U.S.C. 1437d(c)) is amended to 
read as follows:
    ``(c) [Reserved.]''.
    (c) Excess Funds.--Section 6(e) of the United States Housing Act of 
1937 (42 U.S.C. 1437d(e)) is amended to read as follows:
    ``(e) [Reserved.]''.
    (d) Performance Indicators for Public Housing Agencies.--Section 
6(j) of the United States Housing Act of 1937 (42 U.S.C. 1437d(j)) is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B)--
                            (i) by striking ``obligated'' and inserting 
                        ``provided''; and
                            (ii) by striking ``unexpended'' and 
                        inserting ``unobligated by the public housing 
                        agency'';
                    (B) in subparagraph (D), by striking ``energy'' and 
                inserting ``utility'';
                    (C) by redesignating subparagraph (H) as 
                subparagraph (J); and
                    (D) by adding at the end the following new 
                paragraphs:
                    ``(H) The extent to which the agency provides 
                effective programs and activities to promote the 
                economic self-sufficiency of tenants.
                    ``(I) The extent to which the agency successfully 
                meets the goals and carries out the activities and 
                programs of the public housing agency plan under 
                section 5(A).''; and
            (2) in paragraph (2)(A)(i), by inserting after the first 
        sentence the following: ``The Secretary may use a simplified 
        set of indicators for public housing agencies with less than 
        250 units.''.
    (e) Leases.--Section 6(l) of the United States Housing Act of 1937 
(42 U.S.C. 1437d(l)) is amended--
            (1) in paragraph (3), by striking ``not be less than'' and 
        all that follows before the semicolon at the end and inserting 
        ``be the period of time required under State law''; and
            (2) in paragraph (5), by striking ``on or near such 
        premises''.
    (f) Public Housing Assistance to Foster Care Children.--Section 
6(o) of the United States Housing Act of 1937 (42 U.S.C. 1437d(o)) is 
amended by striking ``Subject'' and all that follows through ``, in'' 
and inserting ``In''.
    (g) Preference for Areas With Inadequate Supply of Very Low-Income 
Housing.--Section 6(p) of the United States Housing Act of 1937 (42 
U.S.C. 1437d(p)) is amended to read as follows:
    ``(p) [Reserved.]''.
    (h) Availability of Criminal Records for Screening and Eviction; 
Eviction for Drug-Related Activity.--Section 6 of the United States 
Housing Act of 1937 (42 U.S.C. 1437d) is amended by adding at the end 
the following new subsections:
    ``(q) Availability of Records.--
            ``(1) In general.--
                    ``(A) Provision of information.--Notwithstanding 
                any other provision of law, except as provided in 
                subparagraph (B), the National Crime Information 
                Center, a police department, and any other law 
                enforcement agency shall, upon request, provide 
                information to public housing agencies regarding the 
                criminal conviction records of adult applicants for, or 
                residents of, public housing for purposes of applicant 
                screening, lease enforcement, and eviction.
                    ``(B) Exception.--Except as provided under any 
                provision of State or local law, no law enforcement 
                agency described in subparagraph (A) shall provide 
                information under this paragraph relating to any 
                criminal conviction if the date of that conviction 
                occurred 5 or more years prior to the date on which the 
                request for the information is made.
            ``(2) Opportunity to dispute.--Before an adverse action is 
        taken on the basis of a criminal record, the public housing 
        agency shall provide the resident or applicant with a copy of 
        the criminal record and an opportunity to dispute the accuracy 
        and relevance of that record.
            ``(3) Fee.--A public housing agency may be charged a 
        reasonable fee for information provided under paragraph (1).
            ``(4) Records management.--Each public housing agency shall 
        establish and implement a system of records management that 
        ensures that any criminal record received by the public housing 
        agency is--
                    ``(A) maintained confidentially;
                    ``(B) not misused or improperly disseminated; and
                    ``(C) destroyed, once the purpose for which the 
                record was requested has been accomplished.
            ``(5) Definition.--For purposes of this subsection, 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 
        or State law.
    ``(r) Eviction for Drug-Related Activity.--Any resident evicted 
from housing assisted under this title by reason of drug-related 
criminal activity (as such term is defined in section 8(f)(5)) shall 
not be eligible for housing assistance under this title during the 3-
year period beginning on the date of such eviction, unless the evicted 
resident successfully completes a rehabilitation program approved by 
the public housing agency (which shall include a waiver of this 
subsection if the circumstances leading to eviction no longer 
exist).''.

SEC. 108. EXPANSION OF POWERS.

    (a) In General.--Section 6(j)(3) of the United States Housing Act 
of 1937 (42 U.S.C. 1437d(j)(3)) is amended--
            (1) in subparagraph (A)--
                    (A) by redesignating clauses (iii) and (iv) as 
                clauses (iv) and (v), respectively; and
                    (B) by inserting after clause (ii) the following 
                new clause:
                            ``(iii) take possession of the public 
                        housing agency, including any project or 
                        function of the agency, including any project 
                        or function under any other provision of this 
                        Act;'';
            (2) by redesignating subparagraphs (B) through (D) as 
        subparagraphs (E) through (G), respectively;
            (3) by inserting after subparagraph (A) the following new 
        subparagraphs:
                    ``(B)(i) If a public housing agency is identified 
                as troubled under this subsection, the Secretary shall 
                notify the agency of the troubled status of the agency.
                    ``(ii) The Secretary may give a public housing 
                agency a 1-year period, beginning on the date on which 
                the agency receives notification from the Secretary of 
                the troubled status of the agency under clause (i), 
                within which to demonstrate improvement satisfactory to 
                the Secretary. Nothing in this clause shall preclude 
                the Secretary from taking any action the Secretary 
                considers necessary before the commencement or the 
                expiration of the 1-year period described in this 
                clause.
                    ``(iii) Upon the expiration of the 1-year period 
                described in clause (ii), or in the case of a public 
                housing agency identified as troubled before the 
                effective date of this Act, upon the expiration of the 
                1-year period commencing on that date, if the troubled 
                agency has not demonstrated improvement satisfactory to 
                the Secretary and the Secretary has not yet declared 
                the agency to be in breach of its contract with the 
                Federal Government under this Act, the Secretary shall 
                declare the public housing agency to be in substantial 
                default, as described in subparagraph (A).
                    ``(iv) Upon declaration of a substantial default 
                under clause (iii), the Secretary--
                            ``(I) shall either--
                                    ``(aa) petition for the appointment 
                                of a receiver pursuant to subparagraph 
                                (A)(ii); or
                                    ``(bb) take possession of the 
                                public housing agency or any 
                                development or developments of the 
public housing agency pursuant to subparagraph (A)(iii); and
                            ``(II) may, in addition, take other 
                        appropriate action.
                    ``(C)(i) If a receiver is appointed pursuant to 
                subparagraph (A)(ii), in addition to the powers 
                accorded by the court appointing the receiver, the 
                receiver--
                            ``(I) may abrogate any contract that 
                        substantially impedes correction of the 
                        substantial default;
                            ``(II) may demolish and dispose of the 
                        assets of the public housing agency, in 
                        accordance with section 18;
                            ``(III) if determined to be appropriate by 
                        the Secretary, may require the establishment, 
                        as permitted by applicable State and local law, 
                        of one or more new public housing agencies; and
                            ``(IV) shall not be subject to any State or 
                        local law relating to civil service 
                        requirements, employee rights, procurement, or 
                        financial or administrative controls that, in 
                        the determination of the receiver, 
                        substantially impedes correction of the 
                        substantial default.
                    ``(ii) For purposes of this subparagraph, the term 
                `public housing agency' includes any project or 
                function of a public housing agency, as appropriate, 
                including any project or function under any other 
                provision of this Act.
                    ``(D)(i) If the Secretary takes possession of a 
                public housing agency, or any project or function of 
                the agency, pursuant to subparagraph (A)(iii), the 
                Secretary--
                            ``(I) may abrogate any contract that 
                        substantially impedes correction of the 
                        substantial default;
                            ``(II) may demolish and dispose of the 
                        assets of the public housing agency, in 
                        accordance with section 18;
                            ``(III) may require the establishment, as 
                        permitted by applicable State and local law, of 
                        one or more new public housing agencies;
                            ``(IV) shall not be subject to any State or 
                        local law relating to civil service 
                        requirements, employee rights, procurement, or 
                        financial or administrative controls that, in 
                        the determination of the Secretary, 
                        substantially impedes correction of the 
                        substantial default; and
                            ``(V) shall have such additional authority 
                        as a district court of the United States could 
                        confer under like circumstances on a receiver 
                        to fulfill the purposes of the receivership.
                    ``(ii) The Secretary may appoint, on a competitive 
                or noncompetitive basis, an individual or entity as an 
                administrative receiver to assume the responsibilities 
                of the Secretary under this subparagraph for the 
                administration of a public housing agency. The 
                Secretary may delegate to the administrative receiver 
                any or all of the powers given the Secretary by this 
                subparagraph, as the Secretary determines to be 
                appropriate.
                    ``(iii) Regardless of any delegation under this 
                subparagraph, an administrative receiver may not 
                require the establishment of one or more new public 
                housing agencies pursuant to clause (i)(III), unless 
                the Secretary first approves an application by the 
                administrative receiver to authorize such 
                establishment.
                    ``(iv) For purposes of this subparagraph, the term 
                `public housing agency' includes any project or 
                function of a public housing agency, as appropriate, 
                including any project or function under any other 
                provision of this Act.''; and
            (4) by adding at the end the following new subparagraph:
                    ``(H) If the Secretary (or an administrative 
                receiver appointed by the Secretary) takes possession 
                of a public housing agency (including any project or 
                function of the agency) pursuant to subparagraph 
                (A)(iii), or if a receiver is appointed by a court 
                pursuant to subparagraph (A)(ii), the Secretary or 
                receiver shall be deemed to be acting not in that 
                person's or entity's official capacity, but rather in 
                the capacity of the public housing agency, and any 
                liability incurred, regardless of whether the incident 
                giving rise to such liability occurred while the 
                Secretary or receiver was in possession of the public 
                housing agency (including any project or function of 
                the agency), shall be the liability of the public 
                housing agency.''.
    (b) Applicability.--The amendments made by subsection (a) shall 
apply to a public housing agency that is found to be in substantial 
default, on or after the date of enactment of this Act, with respect to 
the covenants or conditions to which the agency is subject (as such 
substantial default is defined in the contract for contributions of the 
agency) or with respect to an agreement entered into under section 
6(j)(2)(C) of the United States Housing Act of 1937.

SEC. 109. PUBLIC HOUSING DESIGNATED FOR THE ELDERLY AND THE DISABLED.

    Section 7 of the United States Housing Act of 1937 (42 U.S.C. 
1437e) is amended to read as follows:

``SEC. 7. AUTHORITY TO PROVIDE DESIGNATED HOUSING.

    ``(a) In General.--Notwithstanding any other provision of law, a 
public housing agency may, in its discretion and without approval by 
the Secretary, designate public housing projects or mixed-income 
projects (or portions of projects) for occupancy as elderly housing, 
disabled housing, or elderly and disabled housing. The public housing 
agency shall establish requirements for this section in the public 
housing agency plan of the public housing agency.
    ``(b) Relocation Assistance.--A public housing agency that converts 
any existing project or building, or portion thereof, to elderly 
housing or disabled housing shall provide to all persons or families 
who are to be relocated in connection with the conversion--
            ``(1) notice of the conversion and relocation not less than 
        6 months before the date of such action;
            ``(2) comparable housing (including appropriate services 
        and design features) at a rental rate 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.
    ``(c) Comparable Housing.--For purposes of this section, tenant-
based assistance under section 8(o) shall be deemed to be comparable 
housing, if the person or family who is relocated may obtain with such 
assistance housing that is generally comparable to the housing that was 
vacated at a cost to the relocated person or family that is not in 
excess of the amount previously paid for the housing vacated.
    ``(d) Uniform Relocation and Real Property Acquisition Act.--The 
Uniform Relocation and Real Property Acquisition Act shall not apply to 
activities under this section.''.

SEC. 110. PUBLIC AND INDIAN HOUSING CAPITAL AND OPERATING FUNDS.

    Section 9 of the United States Housing Act of 1937 (42 U.S.C. 
1437g) is amended to read as follows:

``SEC. 9. PUBLIC AND INDIAN HOUSING CAPITAL AND OPERATING FUNDS.

    ``(a) In General.--Except for assistance provided under section 8, 
all programs under which assistance is provided for public housing on 
the day before the effective date of the Public Housing Reform and 
Empowerment Act of 1995 shall be merged, as appropriate, into either--
            ``(1) the Capital Fund established under subsection (c); or
            ``(2) the Operating Fund established under subsection (d).
    ``(b) Use of Existing Funds.--With the exception of funds made 
available pursuant to section 20(f) and funds appropriated for the 
urban revitalization demonstration program authorized under the 
Department of Veterans Affairs and Housing and Urban Development, and 
Independent Agencies Appropriations Acts--
            ``(1) funds made available to the Secretary for public 
        housing purposes that have not been obligated by the Secretary 
        to a public housing agency before the effective date of the 
        Public Housing Reform and Empowerment Act of 1995 shall be made 
        available, for the period originally provided in law, for use 
        in either the Capital Fund or the Operating Fund established 
        under this section, as appropriate; and
            ``(2) funds made available to the Secretary for public 
        housing purposes that have been obligated by the Secretary to a 
        public housing agency but that, as of the effective date of the 
        Public Housing Reform and Empowerment Act of 1995, have not 
        been obligated by the public housing agency, may be made 
        available by that public housing agency, for the period 
        originally provided in law, for use in either the Capital Fund 
        or the Operating Fund established under this section, as 
        appropriate.
    ``(c) Capital Fund.--
            ``(1) In general.--The Secretary shall establish a Capital 
        Fund for the purpose of making grants to public housing 
        agencies principally--
                    ``(A) to make physical improvements to, to replace, 
                or demolish public housing projects, or portions of 
                projects; and
                    ``(B) for associated management improvements.
            ``(2) Grants.--The Secretary shall make grants to public 
        housing agencies to carry out capital and management 
        activities, including--
                    ``(A) the development and modernization of public 
                housing projects, including the redesign, 
                reconstruction, and reconfiguration of public housing 
                sites and buildings;
                    ``(B) vacancy reduction;
                    ``(C) addressing deferred maintenance needs and the 
                replacement of dwelling equipment;
                    ``(D) planned code compliance;
                    ``(E) management improvements;
                    ``(F) community services;
                    ``(G) demolition and replacement;
                    ``(H) tenant relocation; and
                    ``(I) activities to improve the economic 
                empowerment and self-sufficiency of public housing 
                tenants.
            ``(3) Limit on use of funds.--Each public housing agency 
        may use not more than 20 percent of the Capital Fund 
        distribution of the public housing agency for activities under 
        the Operating Fund of the public housing agency pursuant to 
        subsection (d), provided that the public housing agency plan 
        provides for such use.
    ``(d) Operating Fund.--
            ``(1) In general.--The Secretary shall establish an 
        Operating Fund for the purpose of making assistance available 
        to public housing agencies for the operation and management of 
        public housing.
            ``(2) Grants.--The Secretary shall make grants to public 
        housing agencies to carry out activities that relate to the 
        operation and management of public housing, including--
                    ``(A) anti-crime and anti-drug activities 
                (including those activities eligible for assistance 
                under the Public and Assisted Housing Drug Elimination 
                Act of 1990 and the Drug-Free Public Housing Act of 
                1988); and
                    ``(B) activities related to the provision of 
                service coordinators for elderly persons or persons 
                with disabilities pursuant to section 673 of the 
                Housing and Community Development Act of 1992.
    ``(e) Establishment of Formulae.--
            ``(1) In general.--The Secretary shall establish formulae 
        for providing assistance under the Capital Fund and the 
        Operating Fund under this subsection.
            ``(2) Formulae Requirements.--The formulae established 
        under paragraph (1) shall include the following:
                    ``(A) The needs of public housing agencies as 
                identified through their public housing agency plans 
                submitted under section 5A.
                    ``(B) The number of public housing dwelling units 
                owned and operated by a housing management agency and 
                occupied by low-income families (including the costs of 
                conversion to tenant-based assistance under section 
                22).
                    ``(C) The extent to which public housing agencies 
                provide programs and activities designed to promote the 
                economic self-sufficiency of tenants.
                    ``(D) The age, condition, and density of the low-
                income housing owned or operated by the agency.
                    ``(E) The number of dwelling units owned and 
                operated by the housing management agency that are 
                chronically vacant and the amount of assistance 
                appropriate for such units.
                    ``(F) The amount of assistance necessary to provide 
                rehabilitation and operating expenses for public 
                housing dwelling units including the amount of 
                assistance to provide a safe environment.
            ``(3) Transition formula.--The transition formula shall 
        provide that each public housing agency shall receive that 
        percentage of funds which represents the percentage of funds 
        that the public housing agency received, on average, for 
        modernization costs and operating expenses during the 3 fiscal 
        years of that public housing agency preceding implementation of 
        a formula established under paragraph (1).
            ``(4) Procedures.--The Secretary shall establish formulae 
        under paragraph (1) through negotiated rulemaking, and shall 
        submit the formulae to the Congress for review not later than 2 
        years after the date of enactment of the Public Housing Reform 
        and Empowerment Act of 1995.
            ``(5) Approval.--Unless the Congress acts to disapprove a 
        formula submitted under this subsection, the formula shall be 
        presumed to be approved until a revised formula is adopted.
            ``(6) Operating and capital assistance.--A resident 
        management corporation managing a public housing development 
        pursuant to a contract under this section shall be provided 
        directly by the Secretary with operating and capital assistance 
        under this title for purposes of operating the development and 
        performing such other eligible activities with respect to the 
        development as may be provided under the contract.
    ``(f) Native American Housing Programs.--Notwithstanding any other 
provision of law, from amounts appropriated for the Capital Fund or the 
Operating Fund, the Secretary shall establish such formulae and 
programs as may be necessary to provide such sums as may be necessary 
to carry out housing programs for Indians.
    ``(g) Technical Assistance.--To the extent approved in 
appropriations Acts for grants, the Secretary may provide--
            ``(1) technical assistance to public housing agencies, 
        resident councils, resident organizations, and resident 
        management corporations, including monitoring, inspections, 
        training for public housing agency employees and residents, and 
        data collection and analysis; and
            ``(2) remedial activities associated with troubled public 
        housing agencies, as such agencies are so designated under 
        section 6(j).
    ``(h) Funding for Resident Councils.--Of any amounts made available 
in any fiscal year to carry out this section, $25,000,000 shall be made 
available to resident councils, resident organizations, or resident 
management corporations, on a competitive basis, to carry out resident 
management activities, and other activities designed to improve the 
economic self-sufficiency of public housing residents.
    ``(i) Emergency Reserve.--
            ``(1) In general.--
                    ``(A) Set-aside.--In each fiscal year, the 
                Secretary shall set aside an amount not to exceed 2 
                percent of the amount appropriated to carry out this 
                section for that fiscal year for use in accordance with 
                this subsection.
                    ``(B) Use of funds.--Amounts set aside under this 
                paragraph shall be available to the Secretary for use 
                in connection with emergencies, and to fund the cost of 
                demolitions, modernization, and other activities if the 
                Capital Fund and Operating Fund distributions of any 
                public housing agency are not adequate to carry out 
                activities relating to the goal of the public housing 
                agency of providing decent, safe, and affordable 
                housing in viable communities.
            ``(2) Allocation.--Amounts set aside under this paragraph 
        shall be allocated pursuant to a competition based upon 
        relative need to such public housing agencies, in such manner, 
        and in such amounts as the Secretary shall determine.''.

SEC. 111. LABOR STANDARDS.

    Section 12 of the United States Housing Act of 1937 (42 U.S.C. 
1437j) is amended by adding at the end the following new subsection:
    ``(c) Work Requirement.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, each adult member of each household assisted under this 
        Act shall contribute not less than 8 hours of volunteer work 
        per month within the community of that adult.
            ``(2) Inclusion in plan.--Each public housing agency shall 
        include in the plan submitted to the Secretary under section 
        5A, a detailed description of how the public housing agency 
        intends to implement and administer the requirements of 
        paragraph (1).
            ``(3) Exemptions.--The Secretary may provide an exemption 
        from the requirements of paragraph (1) for any individual who 
        is--
                    ``(A) not less than 62 years of age;
                    ``(B) a person with disabilities who is unable, as 
                determined in accordance with guidelines established by 
                the Secretary, to comply with this section; or
                    ``(C) working full-time, a student, receiving 
                vocational training, or otherwise meeting work 
                requirements of a public assistance program.''.

SEC. 112. REPEAL OF ENERGY CONSERVATION; CONSORTIA AND JOINT VENTURES.

    Section 13 of the United States Housing Act of 1937 (42 U.S.C. 
1437k) is amended to read as follows:

``SEC. 13. CONSORTIA, JOINT VENTURES, AFFILIATES, AND SUBSIDIARIES OF 
              PUBLIC HOUSING AGENCIES.

    ``(a) Consortia.--
            ``(1) In general.--Any 2 or more public housing agencies 
        may participate in a consortium for the purpose of 
        administering any or all of the housing programs of those 
        public housing agencies in accordance with this section.
            ``(2) Effect.--With respect to any consortium described in 
        paragraph (1)--
                    ``(A) any assistance made available under this 
                title to each of the public housing agencies 
                participating in the consortium shall be paid to the 
                consortium; and
                    ``(B) all planning and reporting requirements 
                imposed upon each public housing agency participating 
                in the consortium with respect to the programs operated 
                by the consortium shall be consolidated.
            ``(3) Restrictions.--
                    ``(A) Agreement.--Each consortium described in 
                paragraph (1) shall be formed and operated in 
                accordance with a consortium agreement, and shall be 
                subject to the requirements of a joint public housing 
                agency plan, which shall be submitted by the consortium 
                in accordance with section 5A.
                    ``(B) Minimum requirements.--The Secretary shall 
                specify minimum requirements relating to the formation 
                and operation of consortia and the minimum contents of 
                consortium agreements under this paragraph.
    ``(b) Joint Ventures.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, a public housing agency, in accordance with its public 
        housing agency plan submitted under section 5A, may--
                    ``(A) form and operate wholly owned or controlled 
                subsidiaries (which may be nonprofit corporations) and 
                other affiliates, any of which may be directed, 
                managed, or controlled by the same persons who 
                constitute the board of commissioners or other similar 
                governing body of the public housing agency, or who 
                serve as employees or staff of the public housing 
                agency; or
                    ``(B) enter into joint ventures, partnerships, or 
                other business arrangements with, or contract with, any 
                person, organization, entity, or governmental unit, 
                with respect to the administration of the programs of 
                the public housing agency, including any program that 
                is subject to this title.
            ``(2) Use of income.--Any income generated under paragraph 
        (1) shall be used for low-income housing or to benefit the 
        tenants of the public housing agency.
            ``(3) Audits.--The Secretary may conduct an audit of any 
        activity undertaken under paragraph (1) at any time.''.

SEC. 113. REPEAL OF MODERNIZATION FUND.

    Section 14 of the United States Housing Act of 1937 (42 U.S.C. 
1437l) is repealed.

SEC. 114. INCOME ELIGIBILITY FOR ASSISTED HOUSING.

    Section 16 of the United States Housing Act of 1937 (42 U.S.C. 
1437n) is amended to read as follows:

``SEC. 16. INCOME ELIGIBILITY FOR ASSISTED HOUSING.

    ``(a) In General.--
            ``(1) Initial occupancy by certain households.--Of the 
        dwelling units of a public housing agency, including public 
        housing units in a designated mixed-income project, made 
        available for initial occupancy--
                    ``(A) not less than 40 percent shall be occupied by 
                households whose incomes do not exceed 30 percent of 
                the area median income for such households; and
                    ``(B) any remaining dwelling units may be made 
                available for households whose incomes do not exceed 80 
                percent of the area median income for such households.
            ``(2) Establishment of different standards.--
        Notwithstanding paragraph (1), if approved by the Secretary, a 
        public housing agency may for good cause establish and 
        implement an occupancy standard other than the standard 
        described in paragraph (1).
    ``(b) Applicability to Indian Housing.--Subsection (a) shall not 
apply to any dwelling unit assisted by an Indian housing agency.''.

SEC. 115. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.

    (a) In General.--Section 18 of the United States Housing Act of 
1937 (42 U.S.C. 1437p) is amended to read as follows:

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

    ``(a) Applications for Demolition and Disposition.--Not later than 
60 days after receiving an application by a public housing agency for 
authorization, with or without financial assistance under this title, 
to demolish or dispose of a public housing project or a portion of a 
public housing project, the Secretary shall approve the application, if 
the public housing agency certifies--
            ``(1) in the case of--
                    ``(A) an application proposing demolition of a 
                public housing project or a portion of a public housing 
                project, that--
                            ``(i) the project or portion of the project 
                        is obsolete as to physical condition, location, 
                        or other factors, making it unsuitable for 
                        housing purposes; and
                            ``(ii) no reasonable program of 
                        modifications is cost-effective to return the 
                        project or portion of the project to useful 
                        life; and
                    ``(B) an application proposing the demolition of 
                only a portion of a project, that the demolition will 
                help to assure the useful life of the remaining portion 
                of the project;
            ``(2) in the case of an application proposing disposition 
        of public housing project or other real property subject to 
        this title by sale or other transfer, that--
                    ``(A) the retention of the property is not in the 
                best interests of the residents or the public housing 
                agency because--
                            ``(i) conditions in the area surrounding 
                        the project adversely affect the health or 
                        safety of the residents or the feasible 
                        operation of the project by the public housing 
                        agency; or
                            ``(ii) disposition allows the acquisition, 
                        development, or rehabilitation of other 
                        properties that will be more efficiently or 
                        effectively operated as low-income housing;
                    ``(B) the public housing agency has otherwise 
                determined the disposition to be appropriate for 
                reasons that are--
                            ``(i) in the best interests of the 
                        residents and the public housing agency;
                            ``(ii) consistent with the goals of the 
                        public housing agency and the public housing 
                        agency plan of the public housing agency; and
                            ``(iii) otherwise consistent with this 
                        title; or
                    ``(C) for property other than dwelling units, the 
                property is excess to the needs of a public housing 
                project or the disposition is incidental to, or does 
                not interfere with, continued operation of a public 
                housing project;
            ``(3) that the public housing agency has specifically 
        authorized the demolition or disposition in the public housing 
        agency plan of the public housing agency submitted under 
        section 5A, and has certified that the actions contemplated in 
        the public housing agency plan comply with the requirements of 
        this section;
            ``(4) that the public housing agency--
                    ``(A) will provide for the payment of the 
                relocation expenses of each resident to be displaced;
                    ``(B) will ensure that the amount of rent paid by 
                the tenant following relocation will not exceed the 
                amount permitted under this Act; and
                    ``(C) will not commence demolition or disposition 
                until all tenants residing in the unit are relocated;
            ``(5) that the net proceeds of any disposition will be 
        used--
                    ``(A) unless waived by the Secretary, for the 
                retirement of outstanding obligations issued to finance 
                the original public housing project or modernization of 
                the project; and
                    ``(B) to the extent that any proceeds remain after 
                the application of proceeds in accordance with 
                subparagraph (A), for the provision of low-income 
                housing or to benefit the tenants of the public housing 
                agency; and
            ``(6) that the public housing agency has complied with 
        subsection (b).
    ``(b) Tenant Opportunity To Purchase in Case of Proposed 
Disposition.--
            ``(1) In general.--In the case of a proposed disposition of 
        a public housing project or portion of a project, the public 
        housing agency shall, in appropriate circumstances, as 
        determined by the Secretary, initially offer the property to 
        any eligible resident organization, eligible resident 
        management corporation, or nonprofit organization for resale to 
        low-income families, if such entity--
                    ``(A) is operating only at the public housing 
                project that is the subject of the disposition; and
                    ``(B) has expressed an interest, in writing, to the 
                public housing agency in a timely manner, in purchasing 
                the property for continued use as low-income housing.
    ``(2) Timing.--
                    ``(A) Thirty-day notice.--A resident organization, 
                resident management corporation, or other entity 
                referred to in paragraph (1) may express interest in 
                purchasing property that is the subject of a 
                disposition, as described in paragraph (1), during the 
                30-day period beginning on the date of notification of 
                a proposed sale of the property.
                    ``(B) Sixty-day notice.--If an entity expresses 
                written interest in purchasing a property, as provided 
                in subparagraph (A), no disposition of the property 
                shall occur during the 60-day period beginning on the 
                date of receipt of such written notice, during which 
                time that entity shall be given the opportunity to 
                obtain a firm commitment for financing the purchase of 
                the property.
    ``(c) Homeownership Activities.--This section does not apply to the 
disposition of a public housing project, or any portion thereof, in 
accordance with a homeownership program under which the property is 
sold or conveyed to low-income persons or families or to an 
organization acting as a conduit for sales or conveyances to such 
persons or families.
    ``(d) Replacement Units.--Notwithstanding any other provision of 
law, replacement housing units for public housing units demolished in 
accordance with this section may be built on the original public 
housing location or in the same neighborhood as the original public 
housing location if the number of such replacement units is fewer than 
the number of units demolished.''.
    (b) Homeownership Replacement Plan.--
            (1) In general.--Section 304(g) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437aaa-3(g)), as amended by 
        section 1002(b) of the Emergency Supplemental Appropriations 
        for Additional Disaster Assistance, for Anti-terrorism 
        Initiatives, for Assistance in the Recovery from the Tragedy 
        that Occurred At Oklahoma City, and Rescissions Act, 1995, is 
        amended to read as follows:
    ``(g) [Reserved.]''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall be effective for plans for the demolition, disposition, 
        or conversion to homeownership of public housing approved by 
        the Secretary after September 30, 1995.
    (c) Uniform Relocation and Real Property Acquisition Act.--The 
Uniform Relocation and Real Property Acquisition Act shall not apply to 
activities under section 18 of the United States Housing Act of 1937, 
as amended by this section.

SEC. 116. REPEAL OF FAMILY INVESTMENT CENTERS; VOUCHERS FOR PUBLIC 
              HOUSING.

    (a) In General.--Section 22 of the United States Housing Act of 
1937 (42 U.S.C. 1437t) is amended to read as follows:

``SEC. 22. VOUCHERS FOR PUBLIC HOUSING.

    ``(a) In General.--
            ``(1) Authorization.--A public housing agency may convert 
        any public housing project (or portion thereof) owned and 
        operated by the public housing agency to a system of tenant-
        based assistance in accordance with this section.
            ``(2) Requirements.--In making a conversion under this 
        section, the public housing agency shall develop a conversion 
        plan and an assessment under subsection (b) in consultation 
        with the appropriate public housing officials and residents, 
        which plan and assessment shall be consistent with and part of 
        the public housing agency plan submitted under section 5A, and 
        shall describe the conversion and future use or disposition of 
        the public housing project, including an impact analysis on the 
        affected community.
    ``(b) Conversion Assessment.--
            ``(1) In general.--Not later than 2 years after the date of 
        enactment of the Public Housing Reform and Empowerment Act of 
        1995, each public housing agency shall assess the status of 
        each public housing project owned and operated by that public 
        housing agency and shall submit to the Secretary a report that 
        includes--
                    ``(A) a cost analysis of the public housing 
                project, including costs attributable to the physical 
                condition, modernization needs, operating costs, and 
                market value (both before and after rehabilitation) of 
                the project;
                    ``(B) a market analysis of the public housing 
                project, including an evaluation of the availability of 
                rental dwelling units at or below the fair market rent 
                in the market area in which the public housing project 
                is located; and
                    ``(C) the impact of the conversion on the 
                neighborhood in which the public housing project is 
                located.
            ``(2) Streamlined assessment.--The Secretary may waive or 
        otherwise require a streamlined assessment at the request of 
        the public housing agency.
    ``(c) Cost of Conversion.--The cost of any conversion under this 
section shall be payable from funds made available from the Capital 
Fund and the Operating Fund established under section 9 attributable to 
the converted public housing and any additional funds made available by 
the Secretary or in an appropriations Act.''.
    (b) Savings Provision.--The amendment made by subsection (a) does 
not affect any contract or other agreement entered into under section 
23 of the United States Housing Act of 1937, as that section existed on 
the day before the date of enactment of this Act.

SEC. 117. REPEAL OF FAMILY SELF-SUFFICIENCY; HOMEOWNERSHIP 
              OPPORTUNITIES.

    (a) In General.--Section 23 of the United States Housing Act of 
1937 (42 U.S.C.1437u) is amended to read as follows:

``SEC. 23. PUBLIC HOUSING HOMEOWNERSHIP OPPORTUNITIES.

    ``(a) In General.--Notwithstanding any other provision of law, a 
public housing agency may sell low-income dwelling units, to the low-
income residents of the public housing agency, to other low-income 
persons or families, or to organizations serving as conduits for sales 
to such persons.
    ``(b) Sale Prices, Terms and Conditions.--Any sales under 
subsection (a) may involve such sales prices, terms, and conditions as 
the public housing agency may determine in accordance with procedures 
set forth in the public housing agency plan of the public housing 
agency submitted under section 5A.
    ``(c) Protection of Nonpurchasing Families.--If a tenant decides 
not to purchase a unit, or is not qualified to do so, the public 
housing agency shall--
            ``(1) ensure that rental assistance under section 8 is made 
        available to the tenant; and
            ``(2) provide for the payment of the reasonable relocation 
        expenses of the tenant.
    ``(d) Net Proceeds.--The net proceeds of any sales under this 
section remaining after payment of all costs of the sale and any 
unassumed, unpaid indebtedness owed in connection with the dwelling 
units sold unless waived by the Secretary, shall be used for purposes 
relating to low-income housing and in accordance with the public 
housing agency plan of the public housing agency submitted under 
section 5A.''.
    (b) Savings Provision.--The amendment made by subsection (a) does 
not affect any contract or other agreement entered into under section 
23 of the United States Housing Act of 1937, as that section existed on 
the day before the date of enactment of this Act.

SEC. 118. CONVERSION OF DISTRESSED PUBLIC HOUSING TO VOUCHERS.

    (a) In General.--Title I of the United States Housing Act of 1937 
(42 U.S.C. 1437 et seq.) is amended by adding at the end the following 
new section:

``SEC. 28. CONVERSION OF DISTRESSED PUBLIC HOUSING TO VOUCHERS.

    ``(a) Identification of Units.--Each public housing agency shall 
identify any public housing developments--
            ``(1) that are on the same or contiguous sites;
            ``(2) that total more than--
                    ``(A) 600 dwelling units; or
                    ``(B) in the case of high-rise family buildings or 
                substantially vacant buildings, 300 dwelling units;
            ``(3) that have a vacancy rate of at least 10 percent for 
        dwelling units not in funded, on-schedule modernization 
        programs;
            ``(4) identified as distressed housing that the public 
        housing agency cannot assure the long-term viability as public 
        housing through density reduction, achievement of a broader 
        range of household income, or other measures; and
            ``(5) for which the estimated cost of continued operation 
        and modernization of the developments as public housing exceeds 
        the cost of providing tenant-based assistance under section 8 
        for all families in occupancy.
    ``(b) Consultation.--Each public housing agency shall consult with 
the applicable public housing tenants and the unit of general local 
government in identifying any public housing under subsection (a).
    ``(c) Removal of Units From the Inventories of Public Housing 
Agencies.--
            ``(1) In general.--Each public housing agency shall develop 
        a plan in conjunction with the Secretary for the removal of 
        public housing units identified under subsection (a), over a 
        period of not more than 5 years, from the inventory of the 
        public housing agency and the annual contributions contract. 
        The plan shall be approved as part of the public housing agency 
        plan under section 5A and by the relevant local official as 
        consistent with the Comprehensive Housing Affordability 
        Strategy under title I of the Housing and Community Development 
        Act of 1992, including a description of any disposition and 
        demolition plan for the public housing units.
            ``(2) Extensions.--The Secretary may extend the deadline in 
        paragraph (1) by not more than 5 years if the Secretary makes a 
        determination that the deadline is impracticable.
            ``(3) Demolition and disposition.--To the extent approved 
        in advance in an appropriations Act, the Secretary may 
        establish requirements and provide funding under the Urban 
        Revitalization Demonstration program for demolition and 
        disposition of public housing under this section.
    ``(d) Conversion to Tenant-Based Assistance.--
            ``(1) In general.--The Secretary shall make authority 
        available to a public housing agency to provide tenant-based 
        assistance pursuant to section 8 to families residing in any 
        development that is removed from the inventory of the public 
        housing agency and the annual contributions contract pursuant 
        to subsection (b).
            ``(2) Conversion plans.--Each conversion plan under 
        subsection (c) shall--
                    ``(A) require the agency to notify families 
                residing in the development, consistent with any 
                guidelines issued by the Secretary governing such 
                notifications, that the development shall be removed 
                from the inventory of the public housing agency and the 
                families shall receive tenant-based or project-based 
                assistance, and to provide any necessary counseling for 
                families; and
                    ``(B) ensure that all tenants affected by a 
                determination under this section that a development 
                shall be removed from the inventory of a public housing 
                agency shall be offered tenant-based or project-based 
                assistance and shall be relocated to other decent, 
                safe, and affordable housing that is, to the maximum 
                extent practicable, housing of their choice.
    ``(e) Administration.--
            ``(1) In general.--The Secretary may require a public 
        housing agency to provide such information as the Secretary 
        considers necessary for the administration of this section.
            ``(2) Applicability of section 18.--Section 18 does not 
        apply to the demolition of developments removed from the 
        inventory of the public housing agency under this section.''.

SEC. 119. APPLICABILITY TO INDIAN HOUSING.

    In accordance with section 201(b)(2) of the United States Housing 
Act of 1937, except as otherwise provided in this Act, this title and 
the amendments made by this title shall apply to public housing 
developed or operated pursuant to a contract between the Secretary and 
an Indian housing authority, as such term is defined in section 3(b) of 
the United States Housing Act of 1937.

                 TITLE II--SECTION 8 RENTAL ASSISTANCE

SEC. 201. MERGER OF THE CERTIFICATE AND VOUCHER PROGRAMS.

    Section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)) is amended to read as follows:
    ``(o) Voucher Program.--
            ``(1) Payment standard.--
                    ``(A) In general.--The Secretary may provide 
                assistance to public housing agencies for tenant-based 
                assistance using a payment standard established in 
                accordance with subparagraph (B). The payment standard 
                shall be used to determine the monthly assistance that 
                may be paid for any family, as provided in paragraph 
                (2).
                    ``(B) Establishment of payment standard.--The 
                payment standard shall not exceed 120 percent of the 
                fair market rental established under subsection (c) and 
                shall be not less than 80 percent of that fair market 
                rental.
                    ``(C) Set-aside.--The Secretary may set aside not 
                more than 5 percent of the budget authority available 
                under this subsection as an adjustment pool. The 
                Secretary shall use amounts in the adjustment pool to 
make adjusted payments to public housing agencies under subparagraph 
(A), to ensure continued affordability, if the Secretary determines 
that additional assistance for such purpose is necessary, based on 
documentation submitted by a public housing agency.
                    ``(D) Approval.--The public housing agency shall 
                submit the payment standard of the public housing 
                agency as part of the public housing agency plan 
                submitted under section 5A.
                    ``(E) Review.--The Secretary shall monitor rent 
                burdens and review any payment standard that results in 
                a significant percentage of the families occupying 
                units of any size paying more than 30 percent of 
                adjusted income for rent. The Secretary shall require 
                each public housing agency to modify the payment 
                standard based on the results of such review.
            ``(2) Amount of monthly assistance payment.--
                    ``(A) Families receiving tenant-based assistance; 
                rent does not exceed payment standard.--For a family 
                receiving tenant-based assistance under this title, if 
                the rent for that family (including the amount allowed 
                for tenant-paid utilities) does not exceed the payment 
                standard established under paragraph (1), the monthly 
                assistance payment to that family shall be equal to the 
                amount by which the rent exceeds the greatest of the 
                following amounts, rounded to the nearest dollar:
                            ``(i) Thirty percent of the monthly 
                        adjusted income of the family.
                            ``(ii) Ten percent of the monthly income of 
                        the family.
                            ``(iii) If the family is receiving payments 
                        for welfare assistance from a public agency and 
                        a part of such payments, adjusted in accordance 
                        with the actual housing costs of the family, is 
                        specifically designated by such agency to meet 
                        the housing costs of the family, the portion of 
                        such payments that is so designated.
                    ``(B) Families receiving tenant-based assistance; 
                rent exceeds payment standard.--For a family receiving 
                tenant-based assistance under this title, if the rent 
                for that family (including the amount allowed for 
                tenant-paid utilities) exceeds the payment standard 
                established under paragraph (1), the monthly assistance 
                payment to that family shall be equal to the amount by 
                which the applicable payment standard exceeds the 
                greatest of the following amounts, rounded to the 
                nearest dollar:
                            ``(i) Thirty percent of the monthly 
                        adjusted income of the family.
                            ``(ii) Ten percent of the monthly income of 
                        the family.
                            ``(iii) If the family is receiving payments 
                        for welfare assistance from a public agency and 
                        a part of such payments, adjusted in accordance 
                        with the actual housing costs of the family, is 
                        specifically designated by such agency to meet 
                        the housing costs of the family, the portion of 
                        such payments that is so designated.
                    ``(C) Families receiving project-based 
                assistance.--For a family receiving project-based 
                assistance under this title, the rent that the family 
                is required to pay shall be determined in accordance 
                with section 3(a)(1), and the amount of the housing 
                assistance payment shall be determined in accordance 
                with subsection (c)(3) of this section.
            ``(3) Forty percent limit.--At the time at which a family 
        initially receives tenant-based assistance under this title 
        with respect to any dwelling unit, the total amount that a 
        family may be required to pay for rent may not exceed 40 
        percent of the monthly adjusted income of the family.
            ``(4) Eligible families.--At the time at which a family 
        initially receives assistance under this subsection, a family 
        shall qualify as--
                    ``(A) a very low-income family;
                    ``(B) a family previously assisted under this 
                title;
                    ``(C) a low-income family that meets eligibility 
                criteria specified by the public housing agency;
                    ``(D) a family that qualifies to receive a voucher 
                in connection with a homeownership program approved 
                under title IV of the Cranston-Gonzalez National 
                Affordable Housing Act; or
                    ``(E) a family that qualifies to receive a voucher 
                under section 223 or 226 of the Low-Income Housing 
                Preservation and Resident Homeownership Act of 1990.
            ``(5) Annual review of family income.--Each public housing 
        agency shall, not less frequently than annually, conduct a 
        review of the family income of each family receiving assistance 
        under this subsection.
            ``(6) Selection of families.--
                    ``(A) In general.--Each public housing agency may 
                establish local preferences consistent with its public 
                housing agency plan submitted under section 5A.
                    ``(B) Eviction for drug-related activity.--Any 
                individual or family evicted from housing assisted 
                under this subsection by reason of drug-related 
                criminal activity (as defined in subsection (f)(5)) 
                shall not be eligible for housing assistance under this 
                title during the 3-year period beginning on the date of 
                such eviction, unless the evicted tenant successfully 
                completes a rehabilitation program approved by the 
                public housing agency (which shall include waiver for 
                any member of the family of an individual prohibited 
                from receiving assistance under this title whom the 
                public housing agency determines clearly did not 
                participate in and had no knowledge of such criminal 
                activity, or if the circumstances leading to the 
                eviction no longer exist).
                    ``(C) Selection of tenants.--The selection of 
                tenants shall be made by the owner of the dwelling 
                unit, subject to the annual contributions contract 
                between the Secretary and the public housing agency.
            ``(7) Lease.--Each housing assistance payment contract 
        entered into by the public housing agency and the owner of a 
        dwelling unit shall provide that--
                    ``(A) the screening and selection of households for 
                such units shall be the function of the owner;
                    ``(B) the lease between the tenant and the owner 
                shall be for a term of not less than 1 year, except 
                that the public housing agency may approve a shorter 
                term for an initial lease between the tenant and the 
                dwelling unit owner if the public housing agency 
                determines that such shorter term would improve housing 
                opportunities for the tenant;
                    ``(C) except as otherwise provided by the public 
                housing agency, may provide for a termination of the 
                tenancy of a resident assisted under this subsection 
                after 1 year;
                    ``(D) the dwelling unit owner shall offer leases to 
                tenants assisted under this subsection that are--
                            ``(i) in a standard form used in the 
                        locality by the dwelling unit owner; and
                            ``(ii) contain terms and conditions that--
                                    ``(I) are consistent with State and 
                                local law; and
                                    ``(II) apply generally to tenants 
                                in the property who are not assisted 
                                under this section;
                    ``(E) the dwelling unit owner may not terminate the 
                tenancy of any person assisted under this subsection 
                during the term of a lease that meets the requirements 
                of this section unless the owner determines, on the 
                same basis and in the same manner as would apply to a 
                tenant in the property who does not receive assistance 
                under this subsection, that--
                            ``(i) the tenant has committed a serious 
                        violation of the terms and conditions of the 
                        lease;
                            ``(ii) the tenant has violated applicable 
                        Federal, State, or local law; or
                            ``(iii) other good cause for termination of 
                        the tenancy exists; and
                    ``(F) any termination of tenancy under this 
                subsection shall be preceded by the provision of 
                written notice by the owner to the tenant specifying 
                the grounds for such action, and any relief shall be 
                consistent with applicable State and local law.
            ``(8) Inspection of units by public housing agencies.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), for each dwelling unit for which a 
                housing assistance payment contract is established 
                under this subsection, the public housing agency 
                shall--
                            ``(i) inspect the unit before any 
                        assistance payment is made to determine whether 
                        the dwelling unit meets housing quality 
                        standards for decent and safe housing 
                        established--
                                    ``(I) by the Secretary for purposes 
                                of this subsection; or
                                    ``(II) by local housing codes that 
                                exceed housing quality standards or by 
                                housing agency-designed codes that 
                                exceed housing quality standards; and
                            ``(ii) make periodic inspections during the 
                        contract term.
                    ``(B) Leasing of units owned by public housing 
                agency.--If an eligible household assisted under this 
                subsection leases a dwelling unit that is owned by a 
                public housing agency administering assistance under 
                this subsection, the Secretary shall require the unit 
                of general local government, or another entity approved 
                by the Secretary, to make inspections and rent 
                determinations as required by this paragraph.
            ``(9) Expedited inspection procedures.--The Secretary shall 
        establish a demonstration project to identify efficient 
        procedures to determine whether units meet housing quality 
        standards for decent and safe housing established by the 
        Secretary. The demonstration project shall include the 
        development of procedures to be followed in any case in which a 
        family receiving tenant-based assistance under this subsection 
        is moving into a dwelling unit, or in which a family notifies 
        the Secretary that a dwelling unit in which they no longer live 
        fails to meet housing quality standards. The Secretary shall 
        also establish procedures for the expedited repair and 
        inspection of units that do not meet housing quality standards.
            ``(10) Vacated units.--If a family vacates a dwelling unit, 
        no assistance payment may be made under this subsection for the 
        dwelling unit after the month during which the unit was 
        vacated.
            ``(11) Rent.--
                    ``(A) Reasonable market rent.--The rent for 
                dwelling units for which a housing assistance payment 
                contract is established under this subsection shall be 
                reasonable in comparison with rents charged for 
                comparable dwelling units in the private, unassisted, 
                local market.
                    ``(B) Negotiated rent.--A public housing agency 
                shall, at the request of a family receiving tenant-
                based assistance under this subsection, assist such 
                family in negotiating a reasonable rent with a dwelling 
                unit owner. A public housing agency shall review the 
                rent for a unit under consideration by the family (and 
                all rent increases for units under lease by the family) 
                to determine whether the rent (or rent increase) 
                requested by the owner is reasonable. If a public 
                housing agency determines that the rent (or rent 
                increase) for a dwelling unit is not reasonable, the 
                public housing agency shall not make housing assistance 
                payments to the owner under this subsection with 
                respect to such unit.
                    ``(C) Units exempt from local rent control.--If a 
                dwelling unit for which a housing assistance payment 
                contract is established under this subsection is exempt 
                from local rent control provisions during the term of 
                such contract, the rent for such unit shall be 
                reasonable in comparison with other units in the market 
                area that are exempt from local rent control 
                provisions.
                    ``(D) Timely payments.--Each public housing agency 
                shall make timely payment of any amounts due to a 
                dwelling unit owner under this subsection. The housing 
                assistance payment contract between the owner and the 
                public housing agency may provide for penalties for the 
                late payment of amounts due under the contract, which 
                shall be imposed on the public housing agency in 
accordance with generally accepted practices in the local housing 
market.
                    ``(E) Penalties.--Unless otherwise authorized by 
                the Secretary, each public housing agency shall pay any 
                penalties from administrative fees collected by the 
                public housing agency.
            ``(12) Manufactured housing.--
                    ``(A) In general.--A public housing agency may make 
                assistance payments in accordance with this subsection 
                on behalf of a family that utilizes a manufactured home 
                as its principal place of residence. Such payments may 
                be made for the rental of the real property on which 
                the manufactured home owned by any such family is 
                located.
                    ``(B) Rent calculation.--
                            ``(i) Charges included.--For assistance 
                        pursuant to this paragraph, the rent for the 
                        space on which a manufactured home is located 
                        and with respect to which assistance payments 
                        are to be made shall include maintenance and 
                        management charges and tenant-paid utilities.
                            ``(ii) Payment standard.--The public 
                        housing agency shall establish a payment 
                        standard for the purpose of determining the 
                        monthly assistance that may be paid for any 
                        family under this paragraph. The payment 
                        standard may not exceed an amount approved or 
                        established by the Secretary.
                            ``(iii) Monthly assistance payment.--The 
                        monthly assistance payment under this paragraph 
                        shall be determined in accordance with 
                        paragraph (2).
            ``(13) Contract for assistance payments.--
                    ``(A) In general.--If the Secretary enters into an 
                annual contributions contract under this subsection 
                with a public housing agency pursuant to which the 
                public housing agency will enter into a housing 
                assistance payment contract with respect to an existing 
                structure under this subsection, the housing assistance 
                payment contract may not be attached to the structure 
                unless the owner agrees to rehabilitate or newly 
                construct the structure other than with assistance 
                under this Act, and otherwise complies with the 
                requirements of this section. The public housing agency 
                may approve a housing assistance payment contract for 
                such structures for not more than 15 percent of the 
                funding available for tenant-based assistance 
                administered by the public housing agency under this 
                section.
                    ``(B) Extension of contract term.--In the case of a 
                housing assistance payment contract that applies to a 
                structure under this paragraph, a public housing agency 
                shall enter into a contract with the owner, contingent 
                upon the future availability of appropriated funds for 
                the purpose of renewing expiring contracts for 
                assistance payments, as provided in appropriations 
                Acts, to extend the term of the underlying housing 
                assistance payment contract for such period as the 
                Secretary determines to be appropriate to achieve long-
                term affordability of the housing. The contract shall 
                obligate the owner to have such extensions of the 
                underlying housing assistance payment contract accepted 
                by the owner and the owner's successors in interest.
                    ``(C) Rent calculation.--For project-based 
                assistance under this paragraph, housing assistance 
                payment contracts shall establish rents and provide for 
                rent adjustments in accordance with subsection (c).
            ``(14) Inapplicability to tenant-based assistance.--
        Subsection (c) does not apply to tenant-based assistance under 
        this subsection.
            ``(15) Homeownership option.--A public housing agency 
        providing assistance under this subsection may, at the option 
        of the agency, provide assistance for homeownership under 
        subsection (y).''.

SEC. 202. REPEAL OF FEDERAL PREFERENCES.

    (a) Section 8 Existing and Moderate Rehabilitation.--Section 
8(d)(1)(A) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(d)(1)(A)) is amended to read as follows:
                    ``(A) the selection of tenants shall be the 
                function of the owner, subject to the annual 
                contributions contract between the Secretary and the 
                agency, except that with respect to the certificate and 
                moderate rehabilitation programs only, for the purpose 
                of selecting families to be assisted, the public 
                housing agency may establish, after public notice and 
                an opportunity for public comment, a written system of 
                preferences for selection that are not inconsistent 
                with the comprehensive housing affordability strategy 
                under title I of the Cranston-Gonzalez National 
                Affordable Housing Act;''.
    (b) Section 8 New Construction and Substantial Rehabilitation.--
            (1) Repeal.--Section 545(c) of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 1437f note) is 
        amended to read as follows:
    ``(c) [Reserved.]''.
            (2) Prohibition.--Notwithstanding any other provision of 
        law, no Federal tenant selection preferences shall apply with 
        respect to--
                    (A) housing constructed or substantially 
                rehabilitated pursuant to assistance provided under 
                section 8(b)(2) of the United States Housing Act of 
                1937 (as such section existed on the day before October 
                1, 1983); or
                    (B) projects financed under section 202 of the 
                Housing Act of 1959 (as such section existed on the day 
                before the date of enactment of the Cranston-Gonzalez 
                National Affordable Housing Act).
    (c) Rent Supplements.--Section 101(k) of the Housing and Urban 
Development Act of 1965 (12 U.S.C. 1701s(k)) is amended to read as 
follows:
    ``(k) [Reserved.]''.
    (d) Conforming Amendments.--
            (1) United states housing act of 1937.--The United States 
        Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended--
                    (A) in section 6(o), by striking ``preference rules 
                specified in'' and inserting ``written selection 
                criteria established pursuant to'';
                    (B) in section 7(a)(2), by striking ``according to 
                the preferences for occupancy under'' and inserting 
                ``in accordance with the written selection criteria 
                established pursuant to'';
                    (C) in section 7(a)(3), by striking ``who qualify 
                for preferences for occupancy under'' and inserting 
                ``who meet the written selection criteria established 
                pursuant to'';
                    (D) in section 8(d)(2)(A), by striking the last 
                sentence;
                    (E) in section 8(d)(2)(H), by striking 
                ``notwithstanding subsection (d)(1)(A)(i), an'' and 
                inserting ``An'';
                    (F) in section 16(c), in the second sentence, by 
                striking ``the system of preferences established by the 
                agency pursuant to section 6(c)(4)(A)(ii)'' and 
                inserting ``the written selection criteria established 
                by the public housing agency pursuant to section 
                6(c)(4)(A)''; and
                    (G) in section 24(e)--
                            (i) by striking ``(e) Exceptions.--'' and 
                        all that follows through ``The Secretary may'' 
                        and inserting the following:
    ``(e) Exception to General Program Requirements.--The Secretary 
may''; and
                            (ii) by striking paragraph (2).
            (2) Cranston-gonzalez national affordable housing act.--The 
        Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
        12704 et seq.) is amended--
                    (A) in section 455(a)(2)(D)(iii), by striking 
                ``would qualify for a preference under'' and inserting 
                ``meet the written selection criteria established 
                pursuant to'';
                    (B) in section 522(f)(6)(B), by striking ``any 
                preferences for such assistance under section 
                8(d)(1)(A)(i)'' and inserting ``the written selection 
                criteria established pursuant to section 8(d)(1)(A)''; 
                and
            (3) Low-income housing preservation and resident 
        homeownership act of 1990.--The second sentence of section 
        226(b)(6)(B) of the Low-Income Housing Preservation and 
        Resident Homeownership Act of 1990 (12 U.S.C. 4116(b)(6)(B)) is 
        amended by striking ``requirement for giving preferences to 
        certain categories of eligible families under'' and inserting 
        ``written selection criteria established pursuant to''.
            (4) Housing and community development act of 1992.--Section 
        655 of the Housing and Community Development Act of 1992 (42 
        U.S.C. 13615) is amended by striking ``preferences for 
        occupancy'' and all that follows before the period at the end 
        and inserting ``selection criteria established by the owner to 
        elderly families according to such written selection criteria, 
        and to near-elderly families according to such written 
        selection criteria, respectively''.
            (5) References in other law.--Any reference in any Federal 
        law other than any provision of any law amended by paragraphs 
        (1) through (5) of this subsection or section 201 to the 
        preferences for assistance under section 6(c)(4)(A)(i), 
        8(d)(1)(A)(i), or 8(o)(3)(B) of the United States Housing Act 
        of 1937 (as such sections existed on the day before the date of 
        enactment of this Act) shall be considered to refer to the 
        written selection criteria established pursuant to section 
        6(c)(4)(A), 8(d)(1)(A), or 8(o)(6)(A), respectively, of the 
        United States Housing Act of 1937, as amended by this 
        subsection and section 201 of this Act.

SEC. 203. PORTABILITY.

    Section 8(r) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(r)) is amended--
            (1) in paragraph (1), by striking ``assisted under 
        subsection (b) or (o)'' and inserting ``receiving tenant-based 
        assistance under subsection (o)'';
            (2) in paragraph (3)--
                    (A) by striking ``(b) or''; and
                    (B) by adding at the end the following new 
                sentence: ``The Secretary may reserve amounts available 
                for assistance under subsection (o) to compensate 
                public housing agencies that issue vouchers to families 
                that move into the jurisdiction of the public housing 
                agency under portability procedures.''; and
            (3) by adding at the end the following new paragraph:
            ``(5) Lease violations.--A family may not receive a voucher 
        from a public housing agency and move to another jurisdiction 
        under the tenant-based assistance program if the family has 
        moved out of the assisted dwelling unit of the family in 
        violation of a lease.''.

SEC. 204. LEASING TO VOUCHER HOLDERS.

    Section 8(t) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(t)) is amended to read as follows:
    ``(t) [Reserved.]''.

SEC. 205. HOMEOWNERSHIP OPTION.

    Section 8(y) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(y)) is amended--
            (1) in paragraph (1)(A), by inserting before the semicolon 
        ``, or owns or is acquiring shares in a cooperative'';
            (2) in paragraph (1)(B)(i), by inserting before the 
        semicolon ``and demonstrates to the public housing agency that 
        it has sufficient resources for homeownership'';
            (3) by amending paragraph (2) to read as follows:
            ``(2) Determination of amount of assistance.--
                    ``(A) Monthly expenses do not exceed payment 
                standard.--If the monthly homeownership expenses, as 
                determined in accordance with requirements established 
                by the Secretary, do not exceed the payment standard, 
                the monthly assistance payment shall be the amount by 
                which the homeownership expenses exceed the highest of 
                the following amounts, rounded to the nearest dollar:
                            ``(i) Thirty percent of the monthly 
                        adjusted income of the family.
                            ``(ii) Ten percent of the monthly income of 
                        the family.
                            ``(iii) If the family is receiving payments 
                        for welfare assistance from a public agency and 
                        a part of such payments, adjusted in accordance 
                        with the actual housing costs of the family, is 
                        specifically designated by such agency to meet 
                        the housing costs of the family, the portion of 
                        such payments that is so designated.
                    ``(B) Monthly expenses exceed payment standard.--If 
                the monthly homeownership expenses, as determined in 
                accordance with requirements established by the 
                Secretary, exceed the payment standard, the monthly 
                assistance payment shall be the amount by which the 
                applicable payment standard exceeds the highest of the 
                following amounts, rounded to the nearest dollar:
                            ``(i) Thirty percent of the monthly 
                        adjusted income of the family.
                            ``(ii) Ten percent of the monthly income of 
                        the family.
                            ``(iii) If the family is receiving payments 
                        for welfare assistance from a public agency and 
                        a part of such payments, adjusted in accordance 
                        with the actual housing costs of the family, is 
                        specifically designated by such agency to meet 
                        the housing costs of the family, the portion of 
                        such payments that is so designated.'';
            (4) by striking paragraphs (3) and (4); and
            (5) by redesignating paragraphs (5) through (8) as 
        paragraphs (3) through (6), respectively.

SEC. 206. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Contract Provisions and Requirements.--Section 6(p)(1)(B) of 
the United States Housing Act of 1937 (42 U.S.C. 1437d(p)(1)(B)) is 
amended by striking ``holding certificates and vouchers'' and inserting 
``receiving tenant-based assistance''.
    (b) Lower Income Housing Assistance.--Section 8 of the United 
States Housing Act of 1937 (42 U.S.C. 1437f) is amended--
            (1) in subsection (a), by striking the second and third 
        sentences;
            (2) in subsection (b)--
                    (A) in the section heading, by striking ``Rental 
                Certificates and''; and
                    (B) in the first undesignated paragraph--
                            (i) by striking ``The Secretary'' and 
                        inserting the following:
            ``(1) In general.--The Secretary''; and
                            (ii) by striking the second sentence;
            (3) in subsection (c)--
                    (A) in paragraph (3)--
                            (i) by striking ``(A)''; and
                            (ii) by striking subparagraph (B);
                    (B) in the first sentence of paragraph (4), by 
                striking ``or by a family that qualifies to receive'' 
                and all that follows through ``1990'';
                    (C) by striking paragraph (5) and redesignating 
                paragraph (6) as paragraph (5);
                    (D) by striking paragraph (7) and redesignating 
                paragraphs (8) through (10) as paragraphs (6) through 
                (8), respectively;
                    (E) in paragraph (6), as redesignated, by inserting 
                ``(other than a contract under section 8(o))'' after 
                ``section'';
                    (F) in paragraph (7), as redesignated, by striking 
                ``(but not less than 90 days in the case of housing 
                certificates or vouchers under subsection (b) or (o))'' 
                and inserting ``, other than a contract for tenant-
                based assistance under this section''; and
                    (G) in paragraph (8), as redesignated, by striking 
                ``Secretary'' and inserting ``contract administrator'';
            (4) in subsection (d)--
                    (A) in paragraph (1)(B)(iii), by striking ``on or 
                near such premises''; and
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking the 
                        third sentence and all that follows through the 
                        end of the subparagraph; and
                            (ii) by striking subparagraph (B) and 
                        inserting the following:
                    ``(B) [Reserved.]'';
            (5) in subsection (f)--
                    (A) in paragraph (6), by striking ``(d)(2)'' and 
                inserting ``(o)(11)''; and
                    (B) in paragraph (7)--
                            (i) by striking ``(b) or''; and
                            (ii) by inserting before the period the 
                        following: ``and that provides for the eligible 
                        family to select suitable housing and to move 
                        to other suitable housing'';
            (6) by striking subsection (j) and inserting the following:
    ``(j) [Reserved.]'';
            (7) by striking subsection (n) and inserting the following:
    ``(n) [Reserved.]'';
            (8) in subsection (q)--
                    (A) in the first sentence of paragraph (1), by 
                striking ``and housing voucher programs under 
                subsections (b) and (o)'' and inserting ``program under 
                this section'';
                    (B) in paragraph (2)(A)(i), by striking ``and 
                housing voucher programs under subsections (b) and 
                (o)'' and inserting ``program under this section''; and
                    (C) in paragraph (2)(B), by striking ``and housing 
                voucher programs under subsections (b) and (o)'' and 
                inserting ``program under this section'';
            (9) in subsection (u), by striking ``certificates or'' each 
        place such term appears; and
            (10) in subsection (x)(2), by striking ``housing 
        certificate assistance'' and inserting ``tenant-based 
        assistance''.
    (c) Rental Rehabilitation and Development Grants.--Section 
17(d)(6)(B) of the United States Housing Act of 1937 (42 U.S.C. 
1437o(d)(6)(B)) is amended by striking ``holding certificates under'' 
and inserting ``receiving tenant-based assistance''.
    (d) Public Housing Homeownership and Management Opportunities.--
Section 21(b)(3) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(b)) is amended--
            (1) in the first sentence, by striking ``(at the option of 
        the family) a certificate under section 8(b)(1) or a housing 
        voucher under section 8(o)'' and inserting ``tenant-based 
        assistance under section 8''; and
            (2) by striking the second sentence.
    (e) Documentation of Excessive Rent Burdens.--Section 550(b) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 1437f 
note) is amended--
            (1) in paragraph (1), by striking ``assisted under the 
        certificate and voucher programs established'' and inserting 
        ``receiving tenant-based assistance'';
            (2) in the first sentence of paragraph (2)--
                    (A) by striking ``, for each of the certificate 
                program and the voucher program'' and inserting ``for 
                the tenant-based assistance under section 8''; and
                    (B) by striking ``participating in the program'' 
                and inserting ``receiving tenant-based assistance''; 
                and
            (3) in paragraph (3), by striking ``assistance under the 
        certificate or voucher program'' and inserting ``tenant-based 
        assistance under section 8 of the United States Housing Act of 
        1937''.
    (f) Grants for Community Residences and Services.--Section 
861(b)(1)(D) of the Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 12910(b)(1)(D)) is amended by striking ``certificates or 
vouchers'' and inserting ``assistance''.
    (g) Section 8 Certificates and Vouchers.--Section 931 of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 1437c 
note) is amended by striking ``assistance under the certificate and 
voucher programs under sections 8(b) and (o) of such Act'' and 
inserting ``tenant-based assistance under section 8 of the United 
States Housing Act of 1937''.
    (h) Assistance for Displaced Tenants.--Section 223(a) of the 
Housing and Community Development Act of 1987 (12 U.S.C. 4113(a)) is 
amended by striking ``assistance under the certificate and voucher 
programs under sections 8(b) and 8(o)'' and inserting ``tenant-based 
assistance under section 8''.
    (i) Rural Housing Preservation Grants.--Section 533(a) of the 
Housing Act of 1949 (42 U.S.C. 1490m(a)) is amended in the second 
sentence by striking ``assistance payments as provided by section 
8(o)'' and inserting ``tenant-based assistance as provided under 
section 8''.
    (j) Repeal of Moving to Opportunities For Fair Housing 
Demonstration.--Section 152 of the Housing and Community Development 
Act of 1992 (42 U.S.C. 1437f note) is repealed.
    (k) Preferences for Elderly Families and Persons.--Section 655 of 
the Housing and Community Development Act of 1992 (42 U.S.C. 13615) is 
amended by striking ``the first sentence of section 8(o)(3)(B)'' and 
inserting ``section 8(o)(6)(A)''.
    (l) Assistance for Troubled Multifamily Housing Projects.--Section 
201(m)(2)(A) of the Housing and Community Development Amendments of 
1978 (12 U.S.C. 1715z-1a(m)(2)(A)) is amended by striking ``section 
8(b)(1)'' and inserting ``section 8''.
    (m) Management and Disposition of Multifamily Housing Projects.--
Section 203(g)(2) of the Housing and Community Development Amendments 
of 1978 (12 U.S.C. 1701z-11(g)(2)), as amended by section 101(b) of the 
Multifamily Housing Property Disposition Reform Act of 1994, is amended 
by striking ``8(o)(3)(B)'' and inserting ``8(o)(6)(A)''.

SEC. 207. IMPLEMENTATION.

    In accordance with the negotiated rulemaking procedures set forth 
in subchapter III of chapter 5 of title 5, United States Code, the 
Secretary shall issue such regulations as may be necessary to implement 
the amendments made by this title after notice and opportunity for 
public comment.

SEC. 208. EFFECTIVE DATE.

    (a) In General.--The amendments made by this title shall become 
effective not later than 1 year after the date of enactment of this 
Act.
    (b) Conversion Assistance.--
            (1) In general.--The Secretary may provide for the 
        conversion of assistance under the certificate and voucher 
        programs under subsections (b) and (o) of section 8 of the 
United States Housing Act of 1937, as such sections existed before the 
effective date of the amendments made by this title, to the voucher 
program established by the amendments made by this title.
            (2) Continued applicability.--The Secretary may apply the 
        provisions of the United States Housing Act of 1937, or any 
        other provision of law amended by this title, as such 
        provisions existed on the day before the effective date of the 
        amendments made by this title, to assistance obligated by the 
        Secretary before such effective date for the certificate or 
        voucher program under section 8 of the United States Housing 
        Act of 1937, if the Secretary determines that such action is 
        necessary for simplification of program administration, 
        avoidance of hardship, or other good cause.

                  TITLE III--MISCELLANEOUS PROVISIONS

SEC. 301. PUBLIC HOUSING FLEXIBILITY IN THE CHAS.

    Section 105(b) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12705(b)) is amended--
            (1) by redesignating the second paragraph designated as 
        paragraph (17) (as added by section 681(2) of the Housing and 
        Community Development Act of 1992) as paragraph (20);
            (2) by redesignating paragraph (17) (as added by section 
        220(b)(3) of the Housing and Community Development Act of 1992) 
        as paragraph (19);
            (3) by redesignating the second paragraph designated as 
        paragraph (16) (as added by section 220(c)(1) of the Housing 
        and Community Development Act of 1992) as paragraph (18);
            (4) in paragraph (16)--
                    (A) by striking the period at the end; and
                    (B) by striking ``(16)'' and inserting ``(17)'';
            (5) by redesignating paragraphs (11) through (15) as 
        paragraphs (12) through (16), respectively; and-
            (6) by inserting after paragraph (10) the following new 
        paragraph:
            ``(11) describe how the jurisdiction's plan will help 
        address the needs of public housing and coordinate with the 
        local public housing agency plan under section 5A of the United 
        States Housing Act of 1937;''.

SEC. 302. PUBLIC HOUSING FLEXIBILITY IN THE HOME PROGRAM.

    Section 212(d) of the Cranston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12742) is amended--
            (1) in paragraph (3), by adding ``or'' at the end;
            (2) by striking paragraphs (4) and (5); and
            (3) by redesignating paragraph (6) as paragraph (4).

SEC. 303. REPEAL OF CERTAIN PROVISIONS.

    (a) Maximum Annual Limitation on Rent Increases Resulting From 
Employment.--
            (1) Repeal.--Section 957 of the Cranston-Gonzalez National 
        Affordable Housing Act (42 U.S.C. 12714) is repealed.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall be deemed to have the same effective date as section 957 
        of the Cranston-Gonzalez National Affordable Housing Act.
    (b) Economic Independence.--
            (1) Repeal.--Section 923 of the Housing and Community 
        Development Act of 1992 (42 U.S.C. 12714 note) is repealed.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall be deemed to have the same effective date as section 923 
        of the Housing and Community Development Act of 1992.

SEC. 304. DETERMINATION OF INCOME LIMITS.

    (a) In General.--Section 3(b)(2) of the United States Housing Act 
of 1937 (42 U.S.C. 1437a(b)(2)) is amended--
            (1) in the fourth sentence--
                    (A) by striking ``County'' and inserting ``and 
                Rockland Counties''; and
                    (B) by inserting ``each'' before ``such county''; 
                and
            (2) in the fifth sentence, by striking ``County'' each 
        place such term appears and inserting ``and Rockland 
        Counties''.
    (b) Regulations.--Not later than the expiration of the 90-day 
period beginning on the date of the enactment of this Act, the 
Secretary shall issue regulations implementing the amendments made by 
subsection (a).
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