[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1447 Introduced in House (IH)]







105th CONGRESS
  1st Session
                                H. R. 1447

To reform the United States Housing Act of 1937, deregulate the public 
 housing program and the program for rental housing assistance for low-
income families, and increase community control over such programs, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 24, 1997

 Mr. Lazio of New York (for himself and Mr. Kennedy of Massachusetts) 
(both by request) introduced the following bill; which was referred to 
the Committee on Banking and Financial Services, and in addition to the 
Committee on Ways and Means, for a period to be subsequently determined 
 by the Speaker, in each case for consideration of such provisions as 
        fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
To reform the United States Housing Act of 1937, deregulate the public 
 housing program and the program for rental housing assistance for low-
income families, and increase community control over such programs, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.I20    (A) SHORT TITLE.--
              THIS ACT MAY BE CITED AS THE ``PUBLIC HOUSING MANAGEMENT 
              REFORM ACT OF 1997''.

    (b) Table of Contents.--The table of contents for this Act is as 
follows--

Sec. 1. Short title and table contents.
Sec. 2. Findings and purposes.
                TITLE I--PUBLIC HOUSING AND RENT REFORMS

Sec. 100. Establishment of capital and operating funds.
Sec. 101. Determination of rental amounts for residents of public 
                            housing.
Sec. 102. Minimum rents for public housing and section 8 programs.
Sec. 103. Public housing ceiling rents.
Sec. 104. Disallowance of earned income from public housing and section 
                            8 rent and family contribution 
                            determinations.
Sec. 105. Public housing homeownership.
Sec. 106. Public housing agency plan.
Sec. 107. PHMAP indicators for small PHAs.
Sec. 108. PHMAP self-sufficiency indicator.
Sec. 109. Expansion of powers for dealing with PHAs in substantial 
                            default.
Sec. 110. Public housing site-based waiting lists.
Sec. 111. Community service requirements for the public housing and 
                            section 8 programs.
Sec. 112. Comprehensive improvement assistance program streamlining.
Sec. 113. Flexibility for PHA funding.
Sec. 114. Replacement housing resources.
Sec. 115. Repeal of one-for-one replacement housing requirement.
Sec. 116. Demolition, site revitalization, replacement housing, and 
                            tenant-based assistance grants for 
                            developments.
Sec. 117. Performance evaluation board.
Sec. 118. Economic development and supportive services for public 
                            housing residents.
Sec. 119. Penalty for slow expenditure of modernization funds.
Sec. 120. Designation of PHAs as troubled.
Sec. 121. Volunteer services under the 1937 Act.
Sec. 122. Authorization of appropriations for operation safe home 
                            program.
    TITLE II--SECTION 8 STREAMLINING AND OTHER PROGRAM IMPROVEMENTS

Sec. 201. Permanent repeal of Federal preferences.
Sec. 202. Income targeting for public housing and section 8 programs.
Sec. 203. Merger of tenant-based assistance programs.
Sec. 204. Section 8 administrative fees.
Sec. 205. Section 8 homeownership.
Sec. 206. Welfare to work certificates.
Sec. 207. Effect of failure to comply with public assistance 
                            requirements.
Sec. 208. Streamlining section 8 tenant-based assistance.
Sec. 209. Income verification.
Sec. 210. Nondiscrimination against certificate and voucher holders.
Sec. 211. Recapture and reuse of ACC project reserves under the tenant-
                            based assistance program.
Sec. 212. Expanding the coverage of the Public and Assisted Housing 
                            Drug Elimination Act of 1990 to include 
                            other types of crime and to provide formula 
                            funding.
     TITLE III--``ONE STRIKE AND YOU'RE OUT'' OCCUPANCY PROVISIONS

Sec. 301. Screening of applicants.
Sec. 302. Termination of tenancy and assistance.
Sec. 303. Lease requirements.
Sec. 304. Availability of criminal records for public housing tenant 
                            screening and eviction.
Sec. 305. Definitions.
Sec. 306. Conforming amendments.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) we have a shared national interest in creating safe, 
        decent and affordable housing because, for all Americans, 
housing is an essential building block toward holding a job, getting an 
education, participating in the community, and helping fulfill our 
national goals;
            (2) the American people recognized this shared national 
        interest in 1937, when we created a public housing program 
        dedicated to meeting these needs while creating more hope and 
        opportunity for the American people;
            (3) for 60 years America's public housing system has 
        provided safe, decent, and affordable housing for millions of 
        low-income families, who have used public housing as a stepping 
        stone toward greater stability, independence, and 
        homeownership;
            (4) today, more than 3,300 local public housing agencies--
        --95 percent of all housing agencies throughout America----are 
        providing a good place for families to live and fulfilling 
        their historic mission;
            (5) yet, for all our progress as a nation, today, only one 
        out of four Americans who needs housing assistance receives it;
            (6) at the same time, approximately 15 percent of the 
        people who live in public housing nationwide live in housing 
        with management designated as ``troubled'';
            (7) for numerous developments at these troubled public 
        hosing agencies and elsewhere, families face a overwhelming mix 
        of crime, drug trafficking, unemployment, and despair, where 
        there is little hope for a better future or a better life;
            (8) the past 60 years have resulted in a system where 
        outdated rules and excessive government regulation are limiting 
        our ability to propose innovative solutions and solve problems, 
        not only at the relatively few local public housing agencies 
        designated as troubled, but at the 3,300 that are working well;
            (9) obstacles faced by those agencies that are working 
        well----multiple reports and cumbersome regulations----make a 
        compelling case for deregulation and for concentration by the 
        Department of Housing and Urban Development on fulfillment of 
        the program's basic mission;
            (10) all told, the Department has drifted from its original 
        mission, creating bureaucratic processes that encumber the 
        people and organizations it is supposed to serve;
            (11) under a framework enacted by Congress, the Department 
        has begun major reforms to address these problems, with 
        dramatic results;
            (12) public housing agencies have begun to demolish and 
        replace the worst public housing, reduce crime, promote 
        resident self-sufficiency, upgrade management, and end the 
        isolation of public housing developments from the working 
        world;
            (13) the Department has also recognized that for public 
        housing to work better, the Department needs to work better, 
        and has begun a major overhaul of its organization, 
        streamlining operations, improving management, building 
        stronger partnerships with state and local agencies and 
        improving its ability to take enforcement actions where 
        necessary to assure that its programs serve their intended 
        purposes; and
            (14) for these dramatic reforms to succeed, permanent 
        legislation is now needed to continue the transformation of 
        public housing agencies, strip away outdated rules, provide 
        necessary enforcement tools, and empower the Department and 
        local agencies to meet the needs of America's families.
    (b) Purpose.----It is the purpose of this Act----
            (1) to completely overhaul the framework and rules that 
        were put in place to govern public housing 60 years ago;
            (2) to revolutionize the way public housing serves its 
        clients, fits in the community, builds opportunity, and 
        prepares families for a better life;
            (3) to reaffirm America's historic commitment to safe, 
        decent, and affordable housing and to remove the obstacles to 
        meeting that goal;
            (4) to continue the complete and total overhaul of 
        management of the Department;
            (5) to dramatically deregulate and reorganize the Federal 
        government's management and oversight of America's public 
        housing;
            (6) to ensure that local public housing agencies spend more 
        time delivering vital services to residents and less time 
        complying with unessential regulations or filing unessential 
        reports;
            (7) to achieve greater accountability of taxpayer funds by 
        empowering the Federal government to take firmer, quicker, and 
        more effective actions to improve the management of troubled 
        local housing authorities and to crack down on poor 
        performance;
            (8) to preserve public housing as a rental resource for 
        low-income Americans, while breaking down the extreme social 
        isolation of public housing from mainstream America;
            (9) to provide for revitalization of severely distressed 
        public housing, or its replacement with replacement with 
        replacement housing or tenant-based assistance;
            (10) to integrate public housing reform with welfare reform 
        so that welfare receipents--many of whom are public housing 
        residents--can better chart a path to independence and self-
        sufficiency;
            (11) to anchor in a permanent statute needed changes that 
        will result in the continued transformation of the public 
        housing and tenant-based assistance programs-- including 
        deregulating well-performing housing agencies, ensuring 
        accountability to the public, providing sanctions for poor 
        performers, and providing additional management tools;
            (12) to streamline and simplify the tenant-based Section 8 
        program and to make this program workable for providing 
        homeownership; and
            (13) through these comprehensive measures, to reform the 
        United States Housing Act of 1937 and the programs thereunder.

                TITLE I--PUBLIC HOUSING AND RENT REFORMS

SEC. 100. ESTABLISHMENT OF CAPITAL AND OPERATING FUNDS.

    (a) CAPITAL FUND.--Section 14(a) of the United States Housing Act 
of 1937 is amended--
            (1) by redesignating paragraphs (1) through (5) as 
        subparagraphs (A) through (E), respectively;
            (2) by inserting the paragraph designation ``(2)'' before 
        ``It is the purpose; and
            (3) by inserting the following new paragraph (1) 
        immediately after the subsection designation ``(a)'';
            ``(1) The Secretary shall establish a Capital Fund under 
        this section for the purpose of making assistance available to 
        public housing agencies in accordance with this section.''.
    (b) Operating Fund.--Section 9(a) of the United States Housing Act 
of 1937 is amended by striking ``SEC.9. (a)(1)(A) In addition to'' an 
inserting the following:
    ``Sec. 9. (a) The Secretary shall establish an Operating Fund under 
this section for the purpose of making assistance available to public 
housing agencies in accordance with this section.
    ``(1)(A) In addition to''.

SEC. 101. DETERMINATION OF RENTAL AMOUNTS FOR RESIDENTS OF PUBLIC 
              HOUSING.

    (a) Section 3 of the United States Housing Act of 1937 is amended--
            (1) in subsection (a)(1), by revising subparagraph (A) to 
        read as follows:
                    ``(A)(i) if the family is assisted under section 8 
                of this Act, 30 per centum of the family's monthly 
                adjusted income; or
                            ``(ii) if the family resides in public 
                        housing, an amount established by the public 
                        housing agency not to exceed 30 per centum of 
                        the family's monthly adjusted income;''; and
            (2) in subsection (b)(5)--
                    (A) after the semicolon following subparagraph (F), 
                by inserting ``and'';
                    (B) in subparagraph (G), by striking ``; and'' and 
                inserting a period; and
                    (C) by striking subparagraph (H)>
    (b) Revised Operating Subsidy Formula.--The Secretary, in 
consultation with interested parties, shall establish a revised formula 
for allocating operating assistance under section 9 of the United 
States Housing Act of 1937, which formula may include such factors as:
            (1) standards for the costs of operation and reasonable 
        projections of income, taking into account the character and 
        location of the public housing project and characteristics of 
        the families served, or the costs of providing comparable 
        services as determined with criteria or a formula representing 
        the operations of a prototype well-managed public housing 
        project;
            (2) the number of public housing dwelling units owned and 
        operated by the public housing agency, the percentage of those 
        units that are occupied by very low-income families, and, if 
        applicable, the reduction in the number of public housing 
        unites as a result of any conversion to a system of tenant-
        based assistance;
            (3) the degree of household poverty served by a public 
        housing agency;
            (4) the extent to which the public housing agency provides 
        programs and activities designed to promote the economic self-
        sufficiency and management skills of public housing tenants;
            (5) the number of dwelling units owned and operated by the 
        public housing agency that are chronically vacant and the 
        amount of assistance appropriate for those units;
            (6) the costs of the public housing agency associated with 
        anti-crime and anti-drug activities, including the costs of 
        providing adequate security for public housing tenants;
            (7) the ability of the public housing agency to effectively 
        administer the Operating Fund distribution of the public 
        housing agency;
            (8) incentives to public housing agencies for good 
        management; and
            (9) standards for the costs of operation of assisted 
        housing compared to unassisted housing.
    (c) Transition Provision.--Prior to the establishment and 
implementation of an operating subsidy formula under subsection (b), if 
a public housing agency establishes a rental amount that is less than 
30 percent of the family's monthly adjusted income pursuant to section 
3(a)(1)(A)(ii) of the United States Housing Act of 1937, as amended by 
subsection (a)(1), the Secretary shall not take into account any 
reduction of or increase in the public housing agency's per unit 
dwelling rental income resulting from the use of such rental amount 
when calculating the contributions under section 9 of the United States 
Housing Act of 1937 for the public housing agency for the operation of 
the public housing.

SEC. 102. MINIMUM RENTS FOR PUBLIC HOUSING AND SECTION 8 PROGRAMS.

    The second sentence of section 3(a)(1) of the United States Housing 
Act of 1937 is amended--
            (1) at the end of subparagraph (B), by striking ``or'';
            (2) in subsection (C), by striking the period and 
        inserting''; or''; and
            (3) by inserting the following at the end: ``(D) 425.
        Where establishing the rent or family contribution based on 
        subparagraph (D) would otherwise result in undue hardship, as 
        defined by the Secretary or the pubic housing agency, for one 
        or more categories of affected families, the Secretary or the 
        public housing agency may exempt one or more such categories 
        from the requirements of this paragraph and may require a lower 
        minimum monthly rental contribution for one or more such 
        categories.''.

SEC. 103. PUBLIC HOUSING CEILING RENTS.

    (a) Section 3(a)(2)(A) of the United States Housing Act of 1937, as 
amended by section 402(b)(1) of the Balanced Budget Downpayment Act, I, 
is amended to read as follows:
                    ``(A) adopt ceiling rents that reflect the 
                reasonable market value of the housing, but that are 
                not less than--
                            ``(i) for housing other than housing 
                        predominantly for elderly or disabled families 
                        (or both), 75 percent of the monthly cost to 
                        operate the housing of the agency;
                            ``(ii) for housing predominantly for 
                        elderly or disabled families (or both), 100 
                        percent of the monthly cost to operate the 
                        housing of the agency; and
                            ``(iii) the monthly cost to make a deposit 
                        to a replacement reserve (in the sole 
                        discretion of the public housing agency); 
                        and''.
    (b) Notwithstanding section 402(f) of the Balanced Budget 
Downpayment Act, I, the amendments made by section 402(b) of that Act 
shall remain in effect after fiscal year 1997.

SEC. 104. DISALLOWANCE OF EARNED INCOME FROM PUBLIC HOUSING AND SECTION 
              8 RENT AND FAMILY CONTRIBUTION DETERMINATIONS.

    (a) In General.--Section 3 of the United States Housing Act of 1937 
is amended--
            (1) by striking the undesignated paragraph at the end of 
        subsection (c)(3) (as added by section 515(b) of Public Law 
        101-625); and
            (2) by adding at the end the following new subsection:
    ``(d) Disallowance of Earned Income From Public Housing and Section 
8 Rent and Family Contribution Determination.--
            ``(1) In General.--Notwithstanding any other provision of 
        law, the rent payable under subsection (a) by, the family 
        contribution determined in accordance with subsection (a) for, 
        a family--
                    ``(A) that--
                            ``(i) occupies a unit in a public housing 
                        project; or
                            ``(ii) receives assistance under section 8; 
                        and
                ``(B) whose income increases as a result of employment 
                of a member of the family who was previously unemployed 
                for one or more years (including a family whose income 
                increases as a result of the participation of a family 
                member in any family self-sufficiency or other job 
                training program);
        may not be increased as a result of the increased income due to 
        such employment during the 18-month period beginning on the 
        date on which the employment is commenced.
            ``(2) Phase-in of rate increases.--After the expiration of 
        the 18-month period referred to in paragraph (1), rent 
        increases due to the continued employment of the family member 
        described in paragraph (1)(b) shall be phased in over a 
        subsequent 3-year period.
            ``(3) Overall limitation.--Rent payable under subsection 
        (a) shall not exceed the amount determined under subsection 
        (a).''.
    (b) Applicability of Amendment.--
            (1) Public housing.--Notwithstanding the amendment made by 
        susbection (a), any tenant of public housing participating in 
        the program under the authority contained in the undesignated 
        paragraph at the end of the section 3(c)(3) of the United 
        States Housing Act of 1937, as that paragraph existed on the 
        day before the date of enactment this Act, shall be governed by 
        that authority after that date.
            (2) Section 8.--The amendments made by susbection (a) shall 
        apply to tenant-based assistance proided by a public housing 
        agency under section 8 of the United States Housing Act of 1937 
        on and after October 1, 1998, but shall apply only to the 
        extent approved in appropriation Acts.

SEC. 105. PUBLIC HOUSING HOMEOWNERSHIP.

    Section 5(h) of the United States Housing Act fo 1937 is amended--
            (1) in the first sentence, by striking ``lower income 
        tenants,'' and inserting the following: ``low-income tenants, 
        or to any organization serving as a conduit for sales to such 
        tenants,''; and
            (2) by adding the following two sentences at the end: ``In 
        the case of purchase by an entity that is an organization 
        serving as a conduit for sales to such tenants, the entity 
        shall sell the units to low-income families within five years 
        from the date of its acquisition of the units. The entity shall 
        use any net proceeds from the resale and from managing the 
        units, as determined in accordance with guidelines of the 
        Secretary, for housing purposes, such as funding resdient 
        organizations and reserves for capital replacements.''.

SEC. 106. PUBLIC HOUSING AGENCY PLAN.

    The United States Housing Act of 1937 is amended by inserting aftre 
section 5 of following new section:

SEC. 5A. PUBLIC HOUSING AGENCY PLAN.

            ``(a) Contents of Plan.--(1) Each public housing agency 
        shall submit to the Secretary a public housing agency plan that 
        shall consiste of the following parts, as applicable--
            ``(A) For assistance under section 14, a 5-year 
        comprehensive plan, as described in section 14(e)(1).
            ``(B) For assistance under section 14, the annual 
        statement, as required under section 14(e)(3).
            ``(C) An annual description of the public housing agency's 
        plans for the following activities--
                    ``(i) demolition and disposition under section 18;
                    ``(ii) homeownership under section 5(h); and
                    (III) designated housing under section 7.
            ``(D) An annual submission by the public housing agency 
        consisting of the following information----
                    ``(i) tenant selection admission and assignment 
                policies, including any admission preferences;
                    ``(ii) rent policies, including income and rent 
                calculation methodology, minimum rents, ceiling rents, 
                and income exclusions, disregards, or deductions;
                    ``(ii) any cooperation agreements between the 
                public housing agency and State welfare and employment 
                agencies to target services to public housing residents 
                (public housing agencies shall use best efforts to 
                enter into such agreements); and
                    ``(iv) anti-crime and securities plans, including a 
                strategic plan for addressing crime on or affecting the 
                sites owned by the agency, a statement of activities in 
                furtherance of the strategic plan to be carried out 
                Drug Elimination Act of 1990, performance criteria 
                regarding the effective use of such assistance, and any 
                plans for the provision of anti-crime assistance to be 
                provided by the local governed in addition to the 
                assistance otherwise required to be provid3d by the 
                agreement for local cooperation under section 5(e)(2) 
                or other applicable law.
        Where a public housing agency has no changes to report in any 
        of the information required under this subparagraph since the 
        previous annual submission, the public agency shall only state 
        in its annual submission that it has made no changes.
            ``(E) Other appropriate information that the Secretary 
        requires for each public housing agency that is--
                    ``(i) at risk of being designated as troubled under 
                section 6(j); or
                    ``(ii) designated as troubled under section 6(j).
            ``(F) Other information required by the Secretary in 
        connection with the provision of assistance under section 9.
            ``(G) An annul certification by the public housing agency 
        that it has met the citizen participation requirements under 
        subsection (b).
            ``(H) An annual certification by the public housing agency 
        that it will carry out the public housing agency plan in 
        conformity with title VI of the Civil Rights Act of 1964, the 
        Fair Housing Act, section 504 of the Rehabilitation Act of 
        1973, and title II of the Americans with Disabilities Act of 
        1990, and will affirmatively further fair housing.
            ``I) An annual certification by the public housing agency 
        that the public housing agency plan is consistent with the 
        approved Consolidated Plan for the locality.
    (2) The Secretary may provide for more frequent submissions where 
the public housing agency proposes to amend any parts of the public 
housing agency plan.
    ``(b) Citizen Participation Requirements.--In developing the public 
housing agency plan under subsection (a), each public housing agency 
shall consult with appropriate local government officials an with 
tenants of the housing projects, which shall include at least one 
public hearing that shall be held prior to the adoption of the plan, 
and afford tenants and interested parties an opportunity to summarize 
their priorities and concerns, to ensure their due consideration in the 
planning process of the public housing agency.
    ``(c) Performance Reports.--The Secretary shall require the public 
housing agency to submit any information that the Secretary determines 
is appropriate or necessary to assess the management performance of 
public housing agencies and resident management corporations under 
section 6(j) and to monitor assistance provided under this Act. To the 
maximum extent feasible, the Secretary shall require such information 
in one report, as part of the annual submission of the agency under 
subsection (a).
                            ``D) HUD Review.--After submission of the 
                        public housing agency plan for under subsection 
                        (a), the Secretary shall--
            ``(1) with respect to the 5-year comprehensive plan under 
        subsection (a)(1)(A), review the plan under the standards 
        described in section 14(e)(2);
            ``(2) with respect to the annual statement under subsection 
        (a)(1)(B), review the statement as required under section 
        14(e)(3);
            ``(3) with respect to the annual description under 
        subsection (a)(1)(C), not review the description (the Secretary 
        shall review any application, which may be submitted with the 
        public housing agency plan, as provided in sections 18, 5(h), 
        and 7);
          +``(4) with respect to the annual submission under subsection 
        (a)(1)(D), not review the submission unless the submission has 
        been challenged; where the submission has been challenged, the 
        Secretary shall review the submission to determine only whether 
        the submission sets forth the information required by 
        subsection (a)(1)(D);
            ``(5) with respect to information from troubled agencies 
        under subsection (a)(1)(E) and section 9 information under 
        subsection (a)(1)(F), review such information as necessary or 
        appropriate to carry out the Secretary's responsibilities under 
        section 6(j) and section 9;
            ``(6) with respect to the certifications under subsections 
        (a)(1)(G) and (a)(1)(I), not review the certification unless 
        the certification has been challenged; and, where the 
        certifications has been challenged, the Secretary shall review 
        the certification to determine only whether the certification 
        sets forth the information required by subsection (a)(1)(G) or 
        (a)(1)(I), and whether there is any available evidence that 
        tends to challenge in a substantial manner any certification 
        made under those subsections; and
            ``(7) with respect to the certification under subsection 
        (a)(1)(H), review the certification to determine only whether 
        the certification sets forth the information required by such 
        subsection, and whether there is any available evidence that 
        tends to challenge in a substantial manner any certification 
        made under such subsection.
    ``(e) Waiver Authority.--The Secretary may waive, or specify 
alternative requirements for, any requirements under this section that 
the Secretary determines are burdensome or unnecessary for public 
housing agencies that only administer tenant-based assistance and do 
not own or operate public housing.''.

SEC. 107. PHMAP INDICATORS FOR SMALL PHAS.

    Section 6(J)(1) of the United States Housing Act of 1937 is amended 
by--
            (1) redesignating subparagraphs (A) through (I) as clauses 
        (i) through (ix);
            (2) redesignating clauses (1), (2), and (3) in clause (ix), 
        as redesignated by paragraph (1), as subclauses (I), (II), and 
        (III), respectively;
            (3) in the fourth sentence, inserting immediately before 
        clause (i), as redesignated, the following new subparagraph:
                    ``(A) For public housing agencies that own or 
                operate 250 or more public housing dwelling units--''; 
                and
        (4) adding the following new subparagraph at the end:
                    ``(B) For public housing agencies that own and 
                operate fewer than 250 pubic housing dwelling units--
                            ``(i) The number and percentage of 
                        vacancies within an agency's inventory, 
                        including the progress that an agency has made 
                        within the previous 3 years to reduce such 
                        vacancies.
                            ``(ii) The percentage of rents uncollected.
                            ``(iii) The ability of the agency to 
                        produce and use accurate and timely records of 
                        monthly income and expenses and to maintain at 
                        lease a 3-month service.
                            ``(iv) The annual inspection of occupied 
                        units and the agency's ability to respond to 
                        maintenance work orders.
                            ``(v) Any one additional factor that the 
                        Secretary may determine to be appropriate.''.

SEC. 108. PHAMP SELF-SUFFICIENCY INDICATOR.

    Section 6(j)(1)(A) of the United States Housing Act of 1937, as 
amended by section 107 of this Act, is amended at the end by adding the 
following new clause:
                6``(x) The extent to which the agency coordinates and 
                promotes participation by families in programs that 
                assist them to achieve self-sufficiency.''.

SEC. 109. EXPANSION OF POWERS FOR DEALING WITH PHAS IN SUBSTANTIAL 
              DEFAULT.

    (a) In General.--Section 6(j)(3) of the United States Housing Act 
of 1937 is amended--
            (1) in subparagraph (A)--
                    (A) by amending clause (i) to read as follows:
                        ``(i) solicit competitive proposals from other 
                        public housing agencies and private housing 
                        management agents which, in the discretion of 
                        the Secretary, may be selected by existing 
                        public housing residents through administrative 
                        procedures established by the Secretary; if 
                        appropriate, these proposals shall provide for 
                        such agents to manage all, or part, of the 
                        housing administered by the public housing 
                        agency or all or part of the other programs of 
                        the agency;'';
                    (B) by redesignating clause (iv) as clause (v) and 
                amending it to read as follows:
                            ``(v) require the agency to make other 
                        arrangements acceptable to the Secretary and in 
                        the best interests of the public housing 
                        residents and families assisted under section 8 
                        for managing all, or part, of the public 
                        housing administered by the agency or of the 
                        programs of the agency.''' and
                    (C) by inserting a new clause (iv) after clause 
                (iii) to read as follows:
                            ``(iv) take possession of all or part of 
                        the public housing agency, including all or 
                        part of any project or program of the agency, 
                        including any project or program under any 
                        other provision of this title; and''; and
            (2) by striking subparagraphs (B) through (D) and inserting 
        in lieu thereof the following:
                ``(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) Upon the expiration of the 1-year period 
                beginning on the later of the date on which the agency 
                receives notice from the Secretary of the troubled 
                status of the agency under clause (i) and the date of 
                enactment of the Public Housing Management Reform Act 
                of 1997, the Secretary shall--
                            ``(I) in the case of a troubled public 
                        housing agency with 1,250 or more units, 
                        petition for the appointment of a receiver 
                        pursuant to subparagraph (A)(ii); or
                            ``(II) in the case of a troubled public 
                        housing agency with fewer than 1,250 units, 
                        either--
                            ``(aa) petition for the appointment of a 
                        receiver pursuant to subparagraph (A)(ii); or
                            ``(bb) appoint, on a competitive or 
                        noncompetitive basis, an individual or entity 
                        as an administrative receiver to assume the 
                        responsibilities of the Secretary for the 
                        administration of all or part of the public 
                        housing agency (including all or part of any 
                        project or program of the agency), provided the 
                        Secretary has taken possession of all or part 
                        of the public housing agency (including all or 
                        part of any project or program of the agency) 
                        pursuant to subparagraph (A)(iv).
                ``(C) 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 to which 
                        the United States or an agency of the United 
                        States is not a party that, in the receiver's 
                        written determination (which shall include the 
                        basis for such determination), substantially 
                        impedes correction of the substantial default, 
                        but only after the receiver determines that 
                        reasonable efforts to renegotiate such contract 
                        have failed;
                            ``(ii) may demolish and dispose of all or 
                        part of the assets of the public housing agency 
                        (including all or part of any project of the 
                        agency) in accordance with section 18, 
                        including disposition by transfer of properties 
                        to resident-supported nonprofit entities;
                            ``(iii) if determined to be appropriate by 
                        the Secretary, may seek the establishment, as 
                        permitted by applicable State and local law, of 
                        one or more new public housing agencies;
                            ``(iv) if determined to be appropriate by 
                        the Secretary, may seek consolidation of all or 
                        part of the agency (including all or part of 
                        any project or program of the agency), as 
                        permitted by applicable State and local laws, 
                        into other well-managed public housing agencies 
                        with the consent of such well-managed agencies; 
                        and
                            ``(v) shall not be required to comply with 
                        any State or local law relating to civil 
                        service requirements, employee rights (except 
                        civil rights), procurement, or financial or 
                        administrative controls that, in the receiver's 
                        written determination (which shall include the 
                        basis for such determination), substantially 
                        impedes correction of the substantial default.
                ``(D)(i) If the Secretary takes possession of all or 
                part of the public housing agency, including all or 
                part of any project or program of the agency, pursuant 
                to subparagraph (A)(iv), the Secretary--
                            ``(I) may abrogate any contract to which 
                        the United States or an agency of the United 
                        States is not a party that, in the written 
                        determination of the Secretary (which shall 
include the basis for such determination), substantially impedes 
correction of the substantial default, but only after the Secretary 
determines that reasonable efforts to renegotiate such contract have 
failed;
                            ``(II) may demolish and dispose of all or 
                        part of the assets of the public housing agency 
                        (including all or part of any project of the 
                        agency) in accordance with section 18, 
                        including disposition by transfer of properties 
                        to resident-supported nonprofit entities;
                            ``(III) may seek the establishment, as 
                        permitted by applicable State and local law, of 
                        one or more new public housing agencies;
                            ``(IV) may seek consolidation of all or 
                        part of the agency (including all or part of 
                        any project or program of the agency), as 
                        permitted by applicable State and local laws, 
                        into other well-managed public housing agencies 
                        with the consent of such well-managed agencies;
                            ``(V) shall not be required to comply with 
                        any State or local law relating to civil 
                        service requirements, employee rights (except 
                        civil rights), procurement, or financial or 
                        administrative controls that, in the 
                        Secretary's written determination (which shall 
                        include the basis for such determination), 
                        substantially impedes correction of the 
                        substantial default; and
                            ``(VI) shall, without any action by a 
                        district court of the United States, have such 
                        additional authority as a district court of the 
                        United States would have the authority to 
                        confer upon a receiver to achieve the purposes 
                        of the receivership.
                ``(ii) If the Secretary, pursuant to subparagraph 
                (B)(ii)(II)(bb), appoints an administrative receiver to 
                assume the responsibilities of the Secretary for the 
                administration of all or part of the public housing 
                agency (including all or part of any project or program 
                of the 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 seek 
                the establishment of one or more new public housing 
                agencies pursuant to clause (i)(III) or the 
                consolidation of all or part of an agency into other 
                well-managed agencies pursuant to clause (i)(IV), 
                unless the Secretary first approves an application by 
                the administrative receiver to authorize such action.
                ``(E) The Secretary may make available to receivers and 
                other entities selected or appointed pursuant to this 
                paragraph such assistance as the Secretary determines 
                in the discretion of the Secretary is necessary and 
                available to remedy the substantial deterioration of 
                living conditions in individual public housing 
                developments or other related emergencies that endanger 
                the health, safety, and welfare of public housing 
                residents or families assisted under section 8. A 
                decision made by the Secretary under this paragraph is 
not subject to review in any court of the United States, or in any 
court of any State, territory, or possession of the United States.
                ``(F) In any proceeding under subparagraph (A)(ii), 
                upon a determination that a substantial default has 
                occurred, and without regard to the availability of 
                alternative remedies, the court shall appoint a 
                receiver to conduct the affairs of all or part of the 
                public housing agency in a manner consistent with this 
                Act and in accordance with such further terms and 
                conditions as the court may provide. The receiver 
                appointed may be another public housing agency, a 
                private management corporation, or any other person or 
                appropriate entity. The court shall have power to grant 
                appropriate temporary or preliminary relief pending 
                final disposition of the petition by the Secretary.
                ``(G) The appointment of a receiver pursuant to this 
                paragraph may be terminated, upon the petition of any 
                party, when the court determines that all defaults have 
                been cured or the public housing agency is capable 
                again of discharging its duties.
                ``(H) If the Secretary (or an administrative receiver 
                appointed by the Secretary) takes possession of a 
                public housing agency (including all or part of any 
                project or program of the agency), or if a receiver is 
                appointed by a court, the Secretary or receiver shall 
                be deemed to be acting not in the official capacity of 
                that person or entity, but rather in the capacity of 
                the public housing agency, and any liability incurred, 
                regardless of whether the incident giving rise to that 
                liability occurred while the Secretary or receiver was 
                in possession of all or part of the public housing 
                agency (including all or part of any project or program 
                of the agency), shall be the liability of the public 
                housing agency.''.
            (b) Effectiveness.--The provisions of, and duties and 
        authorities conferred or confirmed by, subsection (a) shall 
        apply with respect to actions taken before, on, or after the 
        effective date of this Act and shall apply to any receivers 
        appointed for a public housing agency before the date of 
        enactment of this Act.
            (c) Technical Correction Regarding Applicability to Section 
        8.--Section 8(h) of the United States Housing Act of 1937 is 
        amended by inserting after ``6'' the following: ``(except as 
        provided in section 6(j)(3))''.

SEC. 110. PUBLIC HOUSING SITE-BASED WAITING LISTS.

            Section 6 of the United States Housing Act of 1937, as 
        amended by section 306(a)(2) of this Act, is amended by 
        inserting the following new subsection at the end:
                ``(q) A public housing agency may establish, in 
                accordance with guidelines established by the 
                Secretary, procedures for maintaining waiting lists for 
                admissions to public housing developments of the 
                agency, which may include a system whereby applicants 
                may apply directly at or otherwise designate the 
                development or developments in which they seek to 
                reside. All such procedures must comply with all 
                provisions of title VI of the Civil Rights Act of 1964, 
                the Fair Housing Act, and other applicable civil rights 
                laws.''.

SEC. 111. COMMUNITY SERVICE REQUIREMENTS FOR THE PUBLIC HOUSING AND 
              SECTION 8 PROGRAMS.

            Section 12 of the United States Housing Act of 1937 is 
amended by adding at the end the following new subsection:
    ``(c) Community Service Requirements for the Public Housing and 
Section1 8 Programs.--
            ``(1) In General.--Notwithstanding any other provision of 
        law, each adult member of each family residing in public 
        housing or assisted under section 8 shall, without 
        compensation, participate, for not less than 8 hours per month, 
        in community service activities (not to include any political 
        activity) within the community in which that adult resides.
            ``(2) Exemptions.--The requirement in paragraph (1) shall 
        not apply to any adult who is--
                    ``(A) at least 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 subsection;
                    ``(C) working at least 20 hours per week, a 
                student, receiving vocational training, or otherwise 
                meeting work, training, or educational requirements of 
                a public assistance program other than the program 
                specified in subparagraph (E);
                    ``(D) a single parent, grandparent, or the spouse 
                of an otherwise exempt individual, who is the primary 
                caretaker of one or more--
                            (i) children who are 6 years of age of 
                        younger;
                            (ii) persons who are at least 62 years of 
                        age; or
                            (iii) persons with disabilities; or
                    ``(E) in a family receiving assistance under the 
                Temporary Assistance for Needy Families program under 
                part A of title IV of the Social Security Act.''.

SEC. 112. COMPREHENSIVE IMPROVEMENT ASSISTANCE PROGRAM STREAMLINING.

    (a) Section 14(d) of the United States Housing Act of 1937 is 
amended to read as follows:
    ``(d) No assistance may be made available under subsection (b) to a 
public housing agency that owns or operates fewer than 250 public 
housing units unless the agency has submitted a comprehensive plan in 
accordance with subsection (e)(1) and the Secretary has approved it in 
accordance with subsection (e)(2). The assistance shall be allocated to 
individual agencies on the agencies on the basis of a formula 
established by the Secretary.''.
    (b) Section 14(f)(1) is repealed.
    (c) Section 14(g) is amended by striking ``(d)(3)'' and inserting 
``(d)''.
    (d) Section 14(h) is repealed.
    (e) Section 14(i) is repealed.
    (f) Section 14(k)(1) is amended by striking ``475,000,000'' and 
inserting ``$100,000,000''.

SEC. 113. FLEXIBILITY FOR PHA FUNDING.

    (a) Expansion of Uses of Funding.----Section 14(q)(1) of the United 
States Housing Act of 1937 is amended----
            (1) in the first sentence, by inserting after ``section 
        5,'' the following, ``by section 24,'';
            (2)in the first sentence, by inserting after ``public 
        housing agency,'', the following: ``except for the provision of 
        tenant-based assistance,''; and
            (3) by inserting at the end the following: 
        ``Notwithstanding the foregoing, (i) a public housing agency 
        that owns or operates fewer than 250 units may use 
        modernization assistance provided under section 14, development 
        assistance provided under section 5(a), and operating subsidy 
        provided under section 9, for any eligible activity authorized 
        by this Act or by applicable appropriations Acts for a public 
        housing agency, except for assistance under section 8, and (ii) 
        any agency determined to be a troubled agency under section 
        6(j) may use amounts not appropriated under section 9 for any 
        operating subsidy purpose authorized in section 9 only with the 
        approval of the Secretary.''.
    (b) Mixed-Finance Development.----Section 14(q)(2) of such Act is 
amended to read as follows:
            ``(2) A public housing agency may use capital or operating 
        assistance provided under section 5, 14, or 9 of this Act, or 
        under applicable Appropriations Acts for a public housing 
        agency, to assist public housing units in a development that is 
        owned by the public housing agency or other legal entity 
        approved by the Secretary and that may include units other than 
        public housing units (``mixed-finance development''). The 
        public housing units in a mixed-finance development shall be 
        developed, operated, and maintained as public housing in 
        accordance with the requirements of this Act during the period 
        required by law. The Secretary may waive regulatory and other 
        requirements established by the Secretary under this Act 
        governing the development, management, and operation of public 
        housing units to the extent necessary to allow a public housing 
        agency to undertake or permit measures that enhance the 
        viability of the public housing units included in a mixed-
        finance development. A public housing agency may, in accordance 
        with guidelines established by the Secretary, provide capital 
        assistance to a mixed-finance development in the form of a 
        grant, loan, or other form of investment in the project, which 
        may involve the drawdown of funds on a schedule commensurate 
        with construction draws for deposit into an interest earning 
        escrow account to serve as collateral or credit enhancement for 
        bonds issued by a public agency for the construction or 
        rehabilitation of the development.''.
    (c) Conforming Amendments.----Section 14(q) of such Act is 
amended----
            (1) in paragraph (3), by striking ``mixed income'' and 
        inserting ``mixed-finance'': and
            (2) in paragraph (4), by striking ``mixed-income project'' 
        and inserting ``mixed-finance development``.
    (d) Applicability.----Section 14(q) of the United States Housing 
Act of 1937, as amended by this section, shall be effective with 
respect to any assistance provided to the public housing agency under 
sections 5 and 14 of the United States Housing Act of 1937 and 
applicable appropriations Acts for a public housing agency.

SEC. 114. REPLACEMENT HOUSING RESOURCES.

    (a) Operating Fund.----Section 9(a)(3)(B) of the United States 
Housing Act of 1937 is amended----
            (1) at the end of clause (iv), by striking ``and '';
            (2) at the end of clause (v), by striking the period and 
        inserting''; and ''; and
            (3) by inserting at the end the following:
                            ``(vi) where an existing unit under a 
                        contract is demolished or disposed of, the 
                        Secretary shall adjust the amount the public 
                        housing agency receives under this section; 
                        notwithstanding this requirement, the Secretary 
                        shall provide assistance under this section for 
                        any replacement housing that is available for 
                        occupancy within five years of the demolition 
                        or disposition, is public housing developed 
                        under this Act or is developed without 
                        assistance under this Act but is operated as 
                        public housing, and meets other requirements 
                        established by the Secretary.''.
    (b) Comprehensive Grant Program.----Section 14(k)(2)(D)(ii) of such 
Act is amended to read as follows:
    ``(ii) When an existing unit under a contract is demolished or 
disposed of, the Secretary shall adjust the amount the agency receives 
under the formula. Notwithstanding the preceding sentence, for the 
five-year period after demolition or disposition, the Secretary may 
provide for no adjustment, or a partial adjustment, of the amount the 
agency receives under the formula and shall require the agency to use 
any additional amount received as a result of this sentence for 
replacement housing or physical improvements necessary to preserve 
viable public housing.''.

SEC. 115. REPEAL OR ONE-FOR-ONE REPLACEMENT HOUSING REQUIREMENT.

    Section 1002(d) of Public Law 104-19 is amended by striking ``and 
on or before September 30, 1997''.

SEC. 116. DEMOLITION, SITE REVITALIZATION, REPLACEMENT HOUSING, AND 
              TENANT-BASED ASSISTANCE GRANTS FOR DEVELOPMENTS.

    Section 24 of the United States Housing Act of 1937 is amended--
            (1) by amending the heading to read as follows: 
        ``DEMOLITION, SITE REVITALIZATION, REPLACEMENT HOUSING, AND 
        TENANT-BASED ASSISTANCE GRANTS FOR DEVELOPMENT'';
            (2) by amending subsections (a) and (c) to read as follows:
    ``(a) Purpose.--The purpose of this section is to provide 
assistance to public housing agencies for the purposes of--
            ``(1) reducing the density and improving the living 
        environment for public housing residents of severely distressed 
        public housing through the demolition of obsolete public 
        housing developments (or portions thereof);
            ``(2) revitalizing sites (including remaining public 
        housing dwelling units) on which such public housing 
        developments are located and contributing to the improvement of 
        the surrounding neighborhood;
            ``(3) providing housing that will avoid or decrease the 
        concentration of very low-income families; and
            ``(4) providing tenant-based assistance in accordance with 
        the provisions of section 8 for the purpose of providing 
        replacement housing and assisting residents to be displaced by 
        the demolition.
    ``(b) Grant Authority.--The Secretary may make grants available to 
public housing agencies as provided in this section.
    ``(c) Contribution Requirement.--The Secretary may not make any 
grant under this section to any applicant unless the applicant 
supplements the amount of assistance provided under this section (other 
than amounts provided for demolition or tenant-based assistance) with 
an amount of funds from sources other than this Act equal to not less 
than 5 percent of the amount provided under this section, including 
amounts from other Federal sources, any State or local government 
sources, any private contributions, and the value of any in-kind 
services or administrative costs provided.'';
            (3) by amending subsection (d)(1) to read as follows:
            ``(1) In general.--The Secretary may make grants under this 
        subsection to applicants for the purpose of carrying out 
        demolition, revitalization, and replacement programs for 
        severely distressed public housing under this section. The 
        Secretary may make a grant for the revitalization or 
        replacement of public housing only if the agency demonstrates 
        that the neighborhood is or will be a viable residential 
        community, as defined by the Secretary, after completion of the 
        work assisted under this section and any other neighborhood 
        improvements planned by the State or local government or 
        otherwise to be provided. The Secretary may approve grants 
        providing assistance for one eligible activity or a combination 
        of eligible activities under this section, including assistance 
        only for demolition and assistance only for tenant-based 
        assistance in accordance with the provisions of section 8.'';
            (4) in subsection (d)(2)(B)--
                    (A) by striking ``the redesign'' and inserting 
                ``the abatement of environmental hazards, demolition, 
                redesign''; and
                    (B) by striking ``is located'' and inserting ``is 
                or was located'';
            (5) in subsection (d)(2), by redesignating subparagraphs 
        (C) through (I) as subparagraphs (D) through (J), respectively, 
        and inserting the following new subparagraph after subparagraph 
        (B):
                    ``(C) replacement housing, which shall consist of 
                public housing, homeownership units as permitted under 
                the HOPE VI program (as previously authorized in 
                appropriations Acts), tenant-based assistance in 
                accordance with the provisions of section 8, or a 
                combination;'';
            (6)(A) in subsection (G), as redesignated by paragraph (5), 
        by inserting before the semicolon the following: ``and any 
        necessary supportive services, except that not more than 15 
        percent of any grant under this subsection may be used for such 
        purposes.'';
            (B) by inserting ``and'' at the end of subsection (H), as 
        redesignated by paragraph (4); and
            (C) by striking the semicolon at the end of subsection (I), 
        as redesignated by paragraph (4), and all that follows up to 
        the period;
            (7) in paragraph (3), by striking the second sentence;
            (8) by amending subsection (d)(4) to read as follows:
            ``(4) Selection criteria.--
                    ``(A) Applications for demolition.--The Secretary 
                shall establish selection criteria for applications 
                that request assistance only for demolition, which 
                shall include--
                            (i) the need for demolition, taking into 
                        account the effect of the distressed 
                        development on the public housing agency and 
                        the community;
                            ``(ii) the extent to which the public 
                        housing agency is not able to undertake such 
                        activities without a grant under this section; 
                        and
                            ``(iii) such other factors as the Secretary 
                        determines appropriate.
                    ``(B) Applications for demolition, revitalization, 
                and replacement.--The Secretary shall establish 
                selection criteria for applications that request 
                assistance for a combination of eligible activities, 
                which shall include--
                            ``(i) the relationship of the grant to the 
                        comprehensive plan for the locality;
                            ``(ii) the extent to which the grant will 
                        result in a viable development which will 
                        foster the economic and social integration of 
                        public housing residents and the extent to 
                        which the development will enhance the 
                        community;
                            ``(iii) the capability and record of the 
                        applicant public housing agency, its 
                        development team, or any alternative management 
                        agency for the agency, for managing large-scale 
                        redevelopment or modernization projects, 
                        meeting construction timetables, and obligating 
                        amounts in a timely manner;
                            ``(iv) the extent to which the public 
                        housing agency is not able to undertake such 
                        activities without a grant under this section;
                            ``(v) the extent of involvement of 
                        residents, State and local governments, private 
                        service providers, financing entities, and 
                        developers, in the development of a 
                        revitalization program for the development;
                            ``(vi) the amount of funds and other 
                        resources to be leveraged by the grant; and
                            ``(vii) such other factors as the Secretary 
                        determines appropriate.''
                ``(C) Applications for tenant-based assistance.--
                Notwithstanding any other provision of this subsection, 
                the Secretary may allocate tenant-based assistance 
                under this section on a non-competitive basis in 
                connection with the demolition or disposition of public 
                housing.'';
            (9) by amending subsection (e) to read as follows:
                            ``(e) Long Term Viability.--The Secretary 
                        may waive or revise rules established under 
                        this Act governing the development, management, 
                        and operation of public housing units, to 
                        permit a public housing agency to undertake 
                        measures that enhance the long-term viability 
                        of a severely distressed public housing project 
                        revitalized under this section.'';
            (10) in subsection (f)--
                    (A) by striking ``OTHER'' and all that follows 
                through ``(1)'';
                    (B) by striking paragraph (2); and
                    (C) by redesignating subparagraphs (A) and (B) as 
                paragraphs (1) and (2);
            (11) by striking subsections (g) and (i) and redesignating 
        subsection (h) as subsection (j);
            (12) by inserting the following new subsections after 
        subsection (f):
    ``(g) Administration by Other Entities.--The Secretary may require 
a grantee under this section to make arrangements satisfactory to the 
Secretary for use of an entity other than the public housing agency to 
carry out activities assisted under the revitalization plan, if the 
Secretary determines that such action will help to effectuate the 
purposes of this section.
    ``(h) Timely Expenditures.--
            ``(1) Withdrawal of funding.--If a grantee under this 
        section or under the HOPE VI program does not sign the primary 
        construction contract for the work included in the grant 
        agreement within 18 months from the date of the grant 
        agreement, the Secretary shall withdraw any grant amounts under 
        the grant agreement which have not been obligated by the 
        grantee. The Secretary shall redistribute any withdrawn amounts 
        to one or more applicants eligible for assistance under this 
        section. The Secretary may grant an extension of up to one 
        additional year from the date of enactment of this Act if the 
        18-month period has expired as of the date of enactment, for 
        delays caused by factors beyond the control of the grantee.
            ``(2) Completion.--A grant agreement under this section 
        shall provide for interim checkpoints and for completion of 
        physical activities within four years of execution, and the 
        Secretary shall enforce these requirements through default 
        remedies up to and including withdrawal of funding. The 
        Secretary may, however, provide for a longer timeframe, but 
        only when necessary due to factors beyond the control of the 
        grantee.
            ``(3) Inapplicability.--This subsection shall not apply to 
        grants for tenant-based assistance under section 8.
    ``(i) Inapplicability of Section 18.--Section 18 shall not apply to 
the demolition of development removed from the inventory of the public 
housing agency under this section.'';
            (13) by amending subsection (j)(1), as redesignated by 
        paragraph (11)--
                    (A) in subparagraph (C), by inserting after 
                ``nonprofit organization,'' the following: ``private 
                program manager, a partner in a mixed-finance 
                development,'';
                    (B) at the end of subparagraph (B), after the 
                semicolon, by inserting ``and''; and
                    (C) at the end of subparagraph (C), by striking ``; 
                and'' and all that follows up to the period;
            (14) by amending subsection (j)(5), as redesignated by 
        paragraph (11)--
                    (A) in subparagraph (A)--
                            (i) by striking ``(i)'';
                            (ii) by striking clauses (ii) through (iv); 
                        and
                            (iii) by inserting after ``physical plant 
                        of the project'' of the following: ``, where 
                        such distress cannot be remedied through 
                        assistance under section 14 because of 
                        inadequacy of available funding'';
                    (B) by amending subparagraph (A), as amended by 
                subparagraph (A) of this paragraph (14), by striking 
                ``appropriately'' and inserting ``inappropriately''; 
                and
                    (C) by amending subparagraph (B) to read as 
                follows:
                    ``(B) that was a project as described in 
                subparagraph (A0 that has been demolished, but for 
                which the Secretary has not provided replacement 
                housing assistance (other than tenant-based 
                assistance).'';
            (15) by inserting at the end of subsection (j) as 
        redesignated by paragraph (11), the following new paragraph:
            ``(6) Supportive services.--The term `supportive services' 
        includes all activities that will promote upward mobility, 
        self-sufficiency, and improved quality of life for the 
        residents of the public housing development involved, including 
        literacy training, job training, day care, and economic 
        development activities.''; and
            (16) by inserting the following new subsection at the end:
                            ``(k) Funding.--
            ``(1) Authorization of appropriations.--There are 
        authorized to be appropriated for grants under this section 
        $524,000,000 for fiscal year 1998 and such sums as may be 
        necessary for each of fiscal years 1999 through 2002.
            ``(2) Technical assistance and program oversight.--Of the 
        amount appropriated pursuant to paragraph (1) for any fiscal 
        year, the Secretary may use up to 2.5 percent for technical 
        assistance, program oversight, and fellowships for on-site 
        public housing agency assistance and supplemental education. 
        Technical assistance may be provided directly or indirectly by 
        grants, contracts, or cooperative agreements, and may include 
        training, and the cost of necessary travel for participants in 
        such training, by or to officials of the Department of Housing 
        and urban Development, of public housing agencies, and of 
        residents. The Secretary may use amounts under this paragraph 
        for program oversight to contract with private program and 
        construction management entities to assure that development 
        activities are carried out in a timely and cost-effective 
        manner.''.

SEC. 117. PERFORMANCE EVALUATION BOARD.

    ``(a) Establishment.--There is hereby established a performance 
evaluation board to assist the Secretary of Housing and Urban 
Development in improving and monitoring the systems for evaluation of 
public housing authority performance, including by studying and making 
recommendations to the Secretary on the most effective, efficient and 
productive method or methods of evaluating the performance of public 
housing agencies, consistent with the overall goal of improving 
management of the public housing program.
    ``(b)Membership.--
            (1) In general.--The broad shall be composed of at least 
        seven members with relevant experience who shall be appointed 
        by the Secretary as soon as practicable, but not later than 90 
        days after enactment of this Act.
            (2) Appointments.--In appointing members of the board, the 
        Secretary shall assure that each of the background areas set 
        forth in paragraph (3) are represented.
            (3) Backgrounds.--Background areas to be represented are--
                    (A) major public housing organizations;
                    (B) public housing resident organizations;
                    (C) real estate management, finance, or development 
                entities; and
                    (D) units of general local government.
    (c) Board Procedures.--
            (1) Chairperson.--The Secretary shall appoint a chairperson 
        from among members of the board.
            (2) Quorum.--A majority of the members of the board shall 
        constitute a quorum for the transaction of business.
            (3) Voting.--Each member of the board shall be entitled to 
        one vote, which shall be equal to the vote of each other member 
        of the board.
            (4) Prohibition of Additional pay.--Members of the board 
        shall serve without compensation, but shall be reimbursed for 
        travel, subsistence, and other necessary expenses incurred in 
        the performance of their duties as members of the board.
    (d) Powers.--
            (1) Hearings.--The board may, for the purpose of carrying 
        out this section, hold such hearings and sit and act at such 
        times and places as the board determines appropriate.
            (2) Assistance from federal agencies.--
                    (A) Information.--The board may request from any 
                agency of the United States, and such agency is 
                authorized to provide, such data and information as the 
                board may require for carrying out it functions.
                    (B) Staff support.--Upon request of the chairperson 
                of the board, to assist the board in carrying out its 
                duties under this section, the Secretary may--
                            (i) provide an executive secretariat;
                            (ii) assign by detail or otherwise any of 
                        the personnel of the Department of Housing and 
                        Urban Development; and
                            (iii) obtain by personnel services 
                        contracts or otherwise any technical or other 
                        assistance needed to carry out this section.
    (e) Advisory Committee.--The board shall be considered an advisory 
committee within the meaning of the Federal Advisory Committee Act (5 
U.S.C. App.).
    (f) Functions.--The board shall, as needed--
            (1) examine and assess the need for further modifications 
        to or replacement of the Public Housing Management Assessment 
        program, established by the Secretary under section 6(j) of the 
        United States Housing Act of 1937;
            (2) examine and assess models used in other industries or 
        public programs to assess the performance of recipients of 
        assistance, including accreditation systems, and the 
        applicability of those models to public housing;
            (3) develop (either itself, or through another body) 
        standards for professional competency for the public housing 
        industry, including methods of assessing the qualifications of 
        employees of public housing authorities, such as systems for 
        certifying the qualifications of employees;
            (4) develop a system for increasing the use of on-site 
        physical inspections of public housing developments; and
            (5) develop a system for increasing the use of independent 
        audits, as part of the overall system for evaluating the 
        performance of public housing agencies.
    (g) Reports.--(1) Not later than the expiration of the three-month 
period beginning upon the appointment of the seventh member of the 
board, and one year from such appointment, the board shall issue 
interim reports to the Secretary on its activities. The board shall 
make its final report and recommendations one year after its second 
interim report is issued. The final report shall include findings and 
recommendations of the board based upon the functions carried out under 
this section.
    (2) After the board issues its final report, it may be convened by 
its chair, upon the request of the Secretary, to review implementation 
of the performance evaluation system and for other purposes.
    (h) Term.--The duration of the board shall be seven years.
    (i) Funding.--The Secretary is authorized to use any amounts 
appropriated under the head Preserving Existing Housing Investment, or 
predecessor or successor appropriation accounts, without regard to any 
earmarks of funding, to carry out this section.

SEC. 118. ECONOMIC DEVELOPMENT AND SUPPORTIVE SERVICES FOR PUBLIC 
              HOUSING RESIDENTS.

    The United States Housing Act of 1937 is amended by adding the 
following new section after section 27:

``SEC. 29. ECONOMIC DEVELOPMENT AND SUPPORTIVE SERVICES FOR PUBLIC 
              HOUSING RESIDENTS.

                            ``(a) In General.--To the extent provided 
                        in advance in appropriations Acts, the 
                        Secretary shall make grants for the purposes of 
                        providing a program of supportive services and 
                        resident self-sufficiency activities to enable 
                        residents of public housing to become 
                        economically self-sufficient and to assist 
                        elderly persons and persons with disabilities 
                        to maintain independent living, to the 
                        following eligible applicants:
            ``(1) public housing agencies;
            ``(2) resident councils;
            ``(3) resident management corporations or other eligible 
        resident entities defined by the Secretary;
            ``(4) other applicants, as determined by the Secretary; and
            ``(5) any partnership of eligible applicants.
B``(b) Eligible Activities.--Grantees under this section may use grants 
for the provision of supportive service, economic development, and 
self-sufficiency activities conducted primarily for public housing 
residents in a manner that is easily accessible to those residents. 
Such activities shall include--
            ``(1) the provision of service coordinators and case 
        managers;
            ``(2) the provision of services related to work readiness, 
        including education, job training and counseling, job search 
        skills, business development training and planning, tutoring, 
        mentoring, adult literacy, computer access, personal and family 
        counseling, health screening, work readiness health services, 
        transportation, and child care;
            ``(3) economic and job development, including employer 
        linkages and job placement, and the start-up of resident 
        microenterprises, community credit unions, and revolving loan 
        funds, including the licensing, bonding and insurance needed to 
        operate such enterprises;
            ``(4) resident management activities, including related 
        training and technical assistance; and
            ``(5) other activities designed to improve the self-
        sufficiency of residents, as may be determined in the sole 
        discretion of the Secretary.
    ``(c) Funding Distribution.--
            ````(1) In general.--After reserving such amounts as the 
        Secretary determines to be necessary for technical assistance 
        and clearinghouse services under subsection (d), the Secretary 
        shall distribute any remaining amounts made available under 
        this section on a competitive basis. The Secretary may set a 
        cap on the maximum grant amount permitted under this section, 
        and may limit applications for grants under this section to 
        selected applicants or categories of applicants.
            ``(2) Selection criteria.--The Secretary shall establish 
        selection criteria for applications that request assistance for 
        one or more eligible activities under this section, which shall 
        include--
                    ``(A) the demonstrated capacity of the applicant to 
                carry out a program of supportive services or resident 
                empowerment activities;
                    ``(B) the amount of funds and other resources to be 
                leveraged by the grant;
                    ``(C) the extent to which the grant will result in 
                a quality program of supportive services or resident 
                empowerment activities;
            ``(D) the extent to which any job training and placement 
        services to be provided are coordinated with the provision of 
        such services under the Job Training Partnership Act and the 
        Wagner-Peyser Act; and
                    ``(E) such other factors as the Secretary 
                determines appropriate.
            ``(3) Matching requirement.--The Secretary may not make any 
        grant under this section to any applicant unless the applicant 
        supplements every dollar provided under this subsection with an 
        amount of funds from sources other than this section equal to 
        at least twice the amount provided under this subsection, 
        including amounts from other Federal sources, any State or 
        local government sources, any private contributions, an the 
        value of any in-kind services or administrative costs provided. 
        Of the supplemental funds furnished by the applicant, not more 
        than 50 percent may be in the form of in-kind services or 
        administrative costs provided. Of the supplemental funds 
        furnished by the applicant, not more than 50 percent may be in 
        the form of in-kind services or administrative costs provided.
    ``(d) Funding for Technical Assistance.----The Secretary may set 
aside a portion of the amounts appropriated under this section, to be 
provided directly or indirectly by grants, contracts, or cooperative 
agreements, for technical assistance, which may include training and 
cost of necessary travel for participants in such training, by or to 
officials and employees of the Department and of public housing 
agencies, and to residents and to other eligible grantees, and for 
clearinghouse services in furtherance of the goals and activities of 
this section.
    ``(e) Contract Administrators.----The Secretary may require 
resident councils, resident management corporations, or other eligible 
entities defined by the Secretary to utilize public housing agencies or 
other qualified organizations as contract administrators with respect 
to grants provided under this section.''.

SEC. 119. PENALTY FOR SLOW EXPENDITURE OF MODERNIZATION FUNDS.

    Section 14(k)(5) of the United Stated Housing Act of 1937 is 
amended to read as follows:
            ``(5)(A) A public housing agency shall obligate any 
        assistance received under this section within 18 months of the 
        date funds become available to the agency for obligation. The 
        Secretary may extend this time period by no more than one year 
        if an agency's failure to obligate such assistance in a timely 
        manner is attributable to events beyond the control of the 
        agency. The Secretary may also provide an exception for 
        deminimis amounts to be obligated with the next year's funding; 
        an agency that owns or administers fewer than 250 public 
        housing units, to the extent necessary to permit the agency to 
        accumulate sufficient funding to undertake activities; and any 
        agency, to the extent necessary to permit the agency to 
        accumulate sufficient funding to provide replacement housing.
            ``(B) A public housing agency shall not be awarded 
        assistance under this section for any month in a year in which 
        it has funds unobligated, in violation of subparagraph (A). 
        During such a year, the Secretary shall withhold all assistance 
        which would otherwise be provided to the agency. If the agency 
        cures its default during the year, it shall be provided with 
        the share attributable to the months remaining in the year. Any 
        funds not so provided to the agency shall be provided to high-
        performing agencies as determined under section 6(j).
            ``(C) If the Secretary has consented, before the date of 
        enactment of the Public Housing Management Reform Act of 1997, 
        to an obligation period for any agency longer than provided 
        under this paragraph, an agency which obligates its funds 
        within such extended period shall not be considered to be in 
        violation of subparagraph (A). Notwithstanding any prior 
        consent of the Secretary, however, all funds appropriated in 
        fiscal year 1995 and prior years shall be fully obligated by 
        the end of fiscal year 1998, and all funds appropriated in 
        fiscal years 1996 and 1997 shall be fully obligated by the end 
        of fiscal year 1999.
            ``(D) A public housing agency shall spend any assistance 
        received under this section within four years (plus the period 
        of any extension approved by the Secretary under subparagraph 
        (A)) of the date funds become available to the agency for 
        obligation. The Secretary shall enforce this requirement 
        through default remedies up to and including withdrawal of the 
        funding. Any obligation entered into by an agency shall be 
        subject to the right of the Secretary to recapture the amounts 
        for violation by the agency of the requirements of this 
        subparagraph.''.

SEC. 120. DESIGNATION OF PHAS AS TROUBLED.

    (a) Section 6(j)(10(A) of the United States Housing Act of 1937, as 
amended by sections 107 and 108, is further amended----
            (1) in subparagraph (A), by inserting the following after 
        clause (x):
                            ``(xi) Whether the agency is providing 
                        acceptable basic housing conditions, as 
                        determined by the Secretary.''; and
            (2) in subparagraph (B)----
                    (A) by redesignating clause (v) as clause (vi); and
                    (B) by inserting the following after clause (iv):
                            ``(v) Whether the agency is providing 
                        acceptable basic housing conditions, as 
                        determined by the Secretary.''.
    (b) Section 6(j)(2)(A)(i) of such Act is amended by inserting the 
following after the first sentence: ``Such procedures shall provide 
that an agency that does not provide acceptable basic housing 
conditions shall be designated a troubled public housing agency.''.
    (c) Section 6(j)(2)(A)(i) of such Act is amended in the first 
sentence----
            (1) by inserting before ``the performance indicators'' the 
        subclause designation ``(I)''; and
            (2) by inserting before the period the following:''; or 
        (II) such other evaluation system as is determined by the 
        Secretary to assess the condition of the public housing agency 
        or resident management corporation, which system may be in 
        addition to or in lieu of the performance indicators 
        established under paragraph (1)''.

SEC. 121. VOLUNTEER SERVICES UNDER THE 1937 ACT.

    (a) In General.----Section 12(b) of the United States Housing Act 
of 1937 is amended by striking ``that----'' and all that follows up to 
the period and inserting ``who performs volunteer services in 
accordance with the requirements of the Community Improvement Volunteer 
Act of 1994''.
    (b) CIVA Amendment.----Section 7305 of the Community Improvement 
Volunteer Act of 1994 is amended----
            (1) in paragraph (5), by striking ``and'' after the 
        semicolon;
            (2) in paragraph (6), by striking the period and 
        inserting''; and ''; and
            (3) by inserting the following paragraph after paragraph 
        (6):
            ``(7) the United States Housing Act of 1937.''.

SEC. 122. AUTHORIZATION OF APPROPRIATIONS FOR OPERATION SAFE HOME 
              PROGRAM.

    There are authorized to be appropriated to carry out the Operation 
Safe Home program $20,000,000 for fiscal year 1998 and such sums as may 
be necessary for fiscal years 1999, 2000, 2001, and 2002.

    TITLE II--SECTION 8 STREAMLINING AND OTHER PROGRAM IMPROVEMENTS

SEC. 201. PERMANENT REPEAL OF FEDERAL PREFERENCES.

    (a) Notwithstanding section 402(f) of The Balanced Budget 
Downpayment Act, I, the amendments made by section 402(d) of that Act 
shall remain in effect after fiscal year 1997, except that the 
amendments made by sections 402(d)(3) and 402(d)(6)(A)(iii), (iv), and 
(vi) of such Act shall remain in effect as amended by sections 203 and 
116 of this Act, and section 402(d)(6)(v) shall be repealed by the 
amendments made to section 16 of the United States Housing Act of 1937 
by section 202 of this Act.
    (b) Section 6(c)(4)(A) of the United States Housing Act of 1937, as 
amended by section 402(d)(1) of The Balanced Budget Downpayment Act, I, 
is amended by striking ``is'' and all that follows through ``Act'' and 
inserting the following: ``shall be based upon local housing needs and 
priorities, as determined by the public housing agency using general 
accepted data sources, including any information obtained pursuant to 
an opportunity for public comment under this subparagraph, under 
section 5A(b), and under the requirements of the approved Consolidated 
Plan for the locality''.
    (c) Section 8(d)(1)(A) of the United States Housing Act of 1937, as 
amended by section 402(d)(2) of The Balanced Budget Downpayment Act, I, 
is amended by striking ``is'' and all that follows through ``Act'' and 
inserting the following: ``shall be based upon local housing needs and 
priorities, as determined by the public housing agency using generally 
accepted data sources, including any information obtained pursuant to 
an opportunity for public comment under this subparagraph, under 
section 5A(b), and under the requirements of the approved Consolidated 
Plan for the locality''.

SEC. 202. INCOME TARGETING FOR PUBLIC PUBLIC HOUSING AND SECTION 8 
              PROGRAMS.

    (a) Section 16 of the United States Housing Act of 1937 is amended 
by revising the heading and subsections (a) through (c) to read as 
follows:

``SEC. 16. ELIGIBILITY FOR PUBLIC AND ASSISTED HOUSING.

    ``(a) Public Housing.--
            ``(1) Program requirement.--Of the public housing units of 
        a public housing agency made available for occupancy by 
        eligible families in any fiscal year of the agency--
                    ``(A) at least 40 percent shall be occupied by 
                families whose incomes do not exceed 30 percent of the 
                median income for the area; and
                    ``(B) at least 90 percent shall be occupied by 
                families whose incomes do not exceed 60 percent of the 
                median income for the area.
            ``(2) Development requirement.--At least 40 percent of the 
        units in each public housing development shall be occupied by 
        families with incomes which are less than 30 percent of the 
        median income for the area, except that no family may be 
        required to move to achieve compliance with this requirement.
    ``(b) Section 8 Assistance.--
            ``(1) Tenant-based, moderate rehabilitation, and project-
        based certificate assistance.--In any fiscal year of a public 
        housing agency, at least 75 percent of all families who 
        initially receive tenant-based assistance from the agency, 
        assistance under the moderate rehabilitation program of the 
        agency, or assistance under the project-based certificate 
        program of the agency shall be families whose incomes do not 
        exceed 30 percent of the median income for the area.
            ``(2) Project-based assistance.--Of the dwelling units in a 
        project receiving section 8 assistance, other than assistance 
        described in paragraph (1), that are made available for 
        occupancy by eligible families in any year (as determined by 
        the Secretary)--
                    ``(A) at least 40 percent shall be occupied by 
                families whose incomes do not exceed 30 percent of the 
                median income for the area; and
                    ``(B) at least 90 percent shall be occupied by 
                families whose incomes do not exceed 60 percent of the 
                median income for the area.
    ``(c) Definition of Area Median Income.--The term `area median 
income', as used in subsections (a) and (b), refers to the median 
income of an area, as determined by the Secretary, with adjustments for 
smaller and larger families, except that the Secretary may establish 
income ceilings higher or lower than the percentages specified in 
subsections (a) and (b) if the Secretary determines that such 
variations are necessary because of unusually high or low family 
incomes.''.
    (b) Section 16 of the United States Housing Act of 1937, as amended 
by this section, is further amended by inserting the following new 
heading after subsection designation (d): ``Applicability.--''.

SEC. 203. MERGER OR TENANT-BASED ASSISTANCE PROGRAMS.

    (a) Section 8(o) of the United States Housing Act of 1937 is 
amended to read as follow:
    ``(o) Rental Certificate.--(1) A public housing agency may only 
enter into contracts for tenant-based rental assistance under this Act 
pursuant to this subsection. The Secretary may provide rental 
assistance using a payment standard in accordance with this subsection. 
The payment standard shall be used to determine the monthly assistance 
which may be paid for any family.
            ``(2)(A) The payment standards may not exceed the FMR/
        exception rent limit. The payment standards may not be less 
        than 80 percent of the FMR/exception rent limit.
            ``B) The term `FMR/exception rent limit' means the section 
        8 existing housing fair market rent published by HUD in 
        accordance with subsection (c)(1) or any exception rent 
        approved by HUD for a designated part of the fair market rent 
        area. HUD may approve an exception rent of up to 120 percent of 
        the published fair market rent.
            ``(3)(A) For assistance under this subsection provided by a 
        public housing agency on and after October 1, 1998, to the 
        extent approved in appropriations Acts, the monthly assistance 
        payment for any family that moves to another unit in another 
        complex or moves to a single family dwelling shall be the 
        amount determined by subtracting the family contribution as 
        determined in accordance with section 3(a) from the applicable 
        payment standard, except that such monthly assistance payment 
        shall not exceed the amount by which the rent for the dwelling 
        unit (including the amount allowed for utilities in the case of 
        a unit with separate utility metering) exceeds 10 percent of 
        the family's monthly income.
            (B) For any family not covered by subparagraph (A), the 
        monthly assistance payment for the family shall be determined 
        by subtracting the family contribution as determined in 
        accordance with section 3(a) from the lower of the applicable 
payment standard and the rent for the dwelling unit (including the 
amount allowed for utilities in the case of a unit with separate 
utility metering).
            ``(4) Assistance payments may be made only for:
                    ``(A) a family determined to be a very low-income 
                family at the time the family initially receives 
                assistance, or
                    ``(B) another low-income family in circumstances 
                determined by the Secretary.
            ``(5) If a family vacates a dwelling unit before the 
        expiration of a lease term, no assistance payment may be made 
        with respect to the unit after the month during which the unit 
        was vacated.
            ``(6) The Secretary shall require that:
                    ``(A) the public housing agency shall inspect the 
                unit before any assistance payment may be made to 
                determine that the unit meets housing quality standards 
                for decent, safe, and sanitary housing established by 
                the Secretary for the purpose of this section, and
                    ``(B) the public housing agency shall make annual 
                or more frequent inspections during the contract term. 
                No assistance payment may be made for a dwelling unit 
                which fails to meet such quality standards.
            ``(7) The rent for units assisted under this subsection 
        shall be reasonable in comparison with rents charged for 
        comparable units in the private unassisted market. A public 
        housing agency shall review all rents for units under 
        consideration by families assisted under this subsection (and 
        all rent increases for units under lease by families assisted 
        under this subsection) to determine whether the rent (or rent 
        increase) requested by an owner is reasonable. If a public 
        housing agency determines that the rent (or rent increase) for 
        a unit is not reasonable, the agency may not approve a lease 
        for such unit.
            ``(8) Except as provided in paragraph (2) of this 
        subsection, section 8(c) of this Act does not apply to 
        assistance under this subsection.''.
    (b) In Section 3(a)(1) of the United States Housing Act of 1937, 
the second sentence is revised as follows:
            (1) by striking ``or paying rent under section 
        8(c)(3)(B)''; and
            (2) by striking ``the highest of the following amounts, 
        rounded to the nearest dollars:'' and inserting ``and the 
        family contribution for a family assisted under section 8(o) or 
        8(y) shall be the highest of the following amounts, rounded to 
        the next dollars:''.
    (c) Section 8(b) of the United States Housing Act is amended--
            (1) by striking ``Rental Certificates and Other Existing 
        Housing Programs.--'' and inserting ``(1)''; and
            (2) by striking the second sentence.
    (d) Section 8 of the United States Housing Act of 1937 is amended--
            (1) by striking subsection (c)(3)(B);
            (2) in subsection (d)(2), by striking subparagraphs (A), 
        (B), (C), (D) and (E); and by redesignating subparagraphs (F), 
        (G) and (H) as subparagraphs (A), (B) and (C) respectively;
            (3) in subsection (f)(6), as redesignated by section 
        306(b)(2) of this Act, by striking ``under subsection (b) or 
        (o)''; and
            (4) by striking subsection (j).

SEC. 204. SECTION 8 ADMINISTRATIVE FEES.

    Section 202(a)(1)(A) of the Departments of Veterans Affairs and 
Housing and Urban Development, Independent Agencies Appropriations Act, 
1997 is amended by--
            (1) striking ``7.5 percent'' and inserting ``7.65 
        percent'';
            (2) striking ``a program of'' and inserting ``one or more 
        such programs totaling''; and
            (3) inserting before the final period, ``of such total 
        units''.
    (b) The amendments made by this section shall be effective as of 
October 1, 1997.

SEC. 205. SECTION 8 HOMEOWNERSHIP.

    (a) Amendments to Section 8(y).--Section 8(y) of the United States 
Housing Act of 1937 is amended--
            (1) in paragraph (1), by striking ``A family receiving'' 
        through ``if the family'' and inserting the following: ``A 
        public housing agency providing tenant-based assistance on 
        behalf of an eligible family under this section may provide 
        assistance for an eligible family that purchases a dwelling 
        unit (including a unit under a lease-purchase agreement) that 
        will be owned by one or more members of the family, and will be 
        occupied by the family, if the family'';
            (2) in paragraph (1)(A), by inserting before the semicolon 
        the following: ``, or owns or is acquiring shares in a 
        cooperative'';
            (3) in paragraph (1), by amending paragraph (B) to read as 
        follows:
            ``(B)(i) in the case of disabled families and elderly 
        families, demonstrates that the family has income from 
        employment or other sources, as determined in accordance with 
        requirements of the Secretary, in such amount as may be 
        established by the Secretary; and
            ``(ii) in the case of other families, demonstrates that the 
        family has income from employment, as determined in accordance 
        with requirements of the Secretary, in such amount as may be 
        established by the Secretary;'';
            (4) in paragraph (1)(C), by striking ``except as'' and 
        inserting ``except in the case of disabled families and elderly 
        families and as otherwise'';
            (5) in paragraph (1), by inserting at the end the 
        following: ``The Secretary or the public housing agency may 
        target assistance under this subsection for program purposes, 
        such as to families assisted in connection with the FHA 
        multifamily demonstration under section 212 of the Departments 
        of Veterans Affairs and Housing and Urban Development, and 
        Independent Agencies Appropriations Act, 1997.'';
            (6) by amending (2) to read as follows:
            ``(2) Determination of amount of assistance.--The monthly 
        assistance payment for any family shall be the amount 
        determined by subtracting the family contribution as determined 
        under section 3(a) of this Act from the lower of:
                    ``(A) the applicable payment standard, or
                    ``(B) the monthly homeownership expenses, as 
                determined in accordance with requirements established 
                by the Secretary, of the family.'';
            (7) by resdesignating paragraphs (6), (7), and (8), as 
        paragraphs (9), (10), and (11), respectively;
            (8) by striking paragraphs (3), (4), and (5) and inserting 
        the following after paragraph (2):
            ``(3) Inspections and contract conditions.--Each contract 
        for the purchase of a unit to be assisted under this section 
        shall provide for pre-purchase inspection of the unit by an 
        independent professional and shall require that any cost of 
        necessary repairs shall be paid by the seller. The requirement 
        under section 8(o)(5)(B) for annual inspections of the unit 
        shall not apply to units assisted under this section.
            ``(4) Downpayment requirement.--Each public housing agency 
        providing assistance under this subsection shall require that 
        each assisted family make a significant contribution, form its 
        own resources, determined in accordance with guidelines 
        established by the Secretary, to cover all or a portion of the 
        downpayment required in connection within the purchase, which 
        may include credit for work by one or more family members to 
        improve the dwelling (``sweat equity'').
            ``(5) Reserve for replacements.--The Secretary shall 
        require each family to pay an amount equal to one percent of 
        the monthly amount payable by the family for principal and 
        interest on its acquisition loan into a reserve for repairs and 
        replacements for five years after the date of purchase. Any 
        amounts remaining in the reserve after five years shall be paid 
        to the family.
            ``(6) Application of new proceeds upon sale.--The Secretary 
        shall require that the net proceeds upon sale by a family of a 
        unit owned by the family while it received assistance under 
        this subsection shall be divided between the public housing 
        agency and the family. The Secretary shall establish guidelines 
        for determining the amount to be received by the family and the 
        amount to be received by the agency, which shall take into 
        account the relative amount of assistance provided on behalf of 
        the family in comparison with the amount paid by the family 
        form its own resources. The secretary shall require the agency 
        to use any amounts received under this paragraph to provide 
        assistance under subsection (o) or this subsection.
            ``(7) Limitation on size of program.--A public housing 
        agency may permit no more than 10 percent of the families 
        receiving tenant-based assistance provided by the agency to use 
        the assistance for homeownership under this subsection. The 
        Secretary may permit no more than 5 percent of all families 
        receiving tenant-based assistance to use the assistance for 
        homeownership under this subsection.
            ``(8) Other program requirements.--The Secretary may 
        establish such other requirements and limitations the Secretary 
        determines to be appropriate in connection with the provision 
        of assistance under this section, which may include limiting 
        the term of assistance for a family. The Secretary may modify 
        the requirements of this subsection where necessary to make 
        appropriate adaptations for lease-purchase agreements. The 
        Secretary shall establish performance measures and procedures 
        to monitor the provision of assistance under this subsection in 
        relation to the purposes of providing homeownership 
        opportunities for eligible families.'';
            (9) paragraph (10)(A), as redesignated by paragraph (7) of 
        this section, is amended--
                    (A) by striking ``dwelling, (ii)'' and inserting 
                ``dwelling, and (ii)''; and
                (b) striking ``, (iii)'' and all that follows up to the 
                period; and
            (10) by inserting after paragraph (11), as redesignated by 
        paragraph (7) of this section, the following:
            ``(12) Sunset.--The authority to provide assistance to 
        additional families under this subsection shall terminate on 
        September 30, 2022. The Secretary shall then prepare a report 
        evaluating the effectiveness of homeownership assistance under 
        this subsection.''.
    (b) Family Self-Sufficiency Escrow.--Section 23(d)(3) of the United 
States Housing Act of 1937 is repealed.

SEC. 206. WELFARE TO WORK CERTIFICATES.

    (a) To the extent of amounts approved in appropriations Acts, the 
Secretary may provide funding for welfare to work certificates in 
accordance with this section. ``Certificates'' means tenant-based 
rental assistance in accordance with section 8(o) of the United States 
Housing Act of 1937.
    (b) Funding under this section shall be used for a demonstration 
linking use of such certificate assistance with welfare reform 
initiatives to help families make the transition from welfare to work, 
and for technical assistance in connection with such demonstration.
    (c) Funding may only be awarded upon joint application by a public 
housing agency and a State or local welfare agency. Allocation of 
demonstration funding is not subject to section 213 of the Housing and 
Community Development Act of 1974.
    (d) Assistance provided under this section shall not be taken into 
account in determining the size of the family self-sufficiency program 
of a public housing agency under section 23 of the United States 
Housing Act of 1937.
    (e) For purposes of the demonstration, the Secretary may waive, or 
specify alternative requirements for, requirements established by or 
under this Act concerning the certificate program, including 
requirements concerning the amount of assistance, the family 
contribution, and the rent payable by the family.

SEC. 207. EFFECT OF FAILURE TO COMPLY WITH PUBLIC ASSISTANCE 
              REQUIREMENTS.

    Section 3(a) of the United States Housing Act of 1937, as amended 
by section 102, is amended by inserting the following after paragraph 
(3):
            ``(4) If the welfare or public assistance benefits of a 
        covered family, as defined in subparagraph (G)(i), are reduced 
        under a Federal, State, or local law regarding such an 
        assistance program because of any failure of any member of the 
        family to comply with program conditions requiring 
        participation in a self-sufficiency program or requiring work 
        activities as defined in subparagraphs (G)(ii) and (iii), the 
        family may not, for the duration of the reduction, have the 
        amount of rent or family contribution determined under this 
        subsection reduced as the result of any decrease in the income 
        of the family (to the extent that the decrease in income is the 
        result of the benefits reduction).
            ``(B) If the welfare or public assistance benefits of a 
        covered family are reduced under a Federal, State, or local law 
        regarding the welfare or public assistance program because of 
        any failure of any member of the family to comply with the 
        self-sufficiency or work activities requirements, the portion 
        of the amount of any increase in the earned income of the 
        family occurring after such reduction up to the amount of the 
        reduction for noncompliance shall not result in an increase in 
        the amount of rent or family contribution determined under this 
        subsection during the period the family would otherwise be 
        eligible for welfare or public assistance benefits under the 
        program.
            ``(C) Any covered family residing in public housing that is 
        affected by the operation of this paragraph shall have the 
        right to review the determination under this paragraph through 
        the administrative grievance procedures established pursuant to 
        section 6(k) for the public housing agency.
            ``(D) Subparagraph (A) shall not apply to any covered 
        family before the public housing agency providing assistance 
        under this Act on behalf of the family receives written 
        notification from the relevant welfare or public assistance 
        agency specifying that the benefits of the family have been 
        reduced because of noncompliance with self-sufficiency program 
        requirements and the level of such reduction.
            ``(E) Subparagraph (A) shall not apply in any case in which 
        the benefits of a family are reduced because the welfare or 
        public assistance program to which the Federal, State, or local 
        law relates limits the period during which benefits may be 
        provided under the program.
            ``(F) This paragraph may not be construed to authorize any 
        public housing agency to limit the duration of tenancy in a 
        public housing dwelling unit or of tenant-based assistance.
            ``(G) For purposes of this section--
            ``(i) The term `covered family' means a family that--
                            ``(I) receives benefits for welfare or 
                        public assistance from a State or other public 
                        agency under a program for which the Federal, 
                        State, or local law relating to the program 
                        requires, as a condition of eligibility for 
                        assistance under the program, participation of 
                        a member of the family in a self-sufficiency 
                        program or work activities; and
                            ``(II) resides in a public housing dwelling 
                        unit or receives assistance under section 8.
                    ``(ii) The term `self-sufficiency program' means 
                any program designed to encourage, assist, train, or 
                facilitate the economic independence of participants, 
                including programs for job training, employment 
                counseling, work placement, basic skills training, 
                education, workfare, money or household management, 
                apprenticeship, or other activities.
                    ``(iii) The term `work activities' means--
                            ``(I) unsubsidized employment;
                            ``(II) subsidized private sector 
                        employment;
                            ``(III) subsidized public sector 
                        employment;
                            ``(IV) work experience (including work 
                        associated with the refurbishing of publicly 
                        assisted housing) if sufficient private sector 
                        employment is not available;
                            ``(V) on-the job training;
                            ``(VI) job search and job readiness 
                        assistance;
                            ``(VII) community service programs;
                            ``(VIII) vocational education training (not 
                        to exceed 12 months with respect to any 
                        individual;
                            ``(IX) job skills training directly related 
                        to employment;
                            ``(X) education directly related to 
                        employment, in the case of a recipient who has 
                        not received a high school diploma or 
                        certificate of high school equivalency;
                            ``(XI) satisfactory attendance at secondary 
                        school or in a course of study leading to a 
                        certificate of general equivalence, in the case 
                        of a recipient who has not completed secondary 
                        school or received such a certificate; and
                            ``(XII) the provision of child care 
                        services to an individual who is participating 
                        in a community service program.''.

SEC. 208. STREAMLINING SECTION 8 TENANT-BASED ASSISTANCE.

    (a) ``Take-One, Take-All.''--Section 8(t) of the United States 
Housing Act of 1937 is hereby repealed.
    (b) Exemption from Notice Requirements for the Certificate and 
Voucher Programs.--Section 8(c) of such Act is amended--
            (1) in paragraph (8), by inserting after ``section'' the 
        following: ``(other than a contract for tenant-based 
        assistance)''; and
            (2) in the first sentence of paragraph (9), 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''.
    (c) Endless Lease.--Section 8(d)(1)(B) of such Act is amended--
            (1) in clause (ii), by inserting ``during the term of the 
        lease,'' after ``(ii)''; and
            (2) in clause (iii), by striking ``provide that'' and 
        inserting ``during the term of the lease,''.
    (d) Repeal.--Section 203 of the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1996 is hereby repealed.

SEC. 209. INCOME VERIFICATION.

    (a) Reinstitution of Requirements Regarding HUD Access to Certain 
Information of State Agencies.--
            (1) In general.--Subsection (i) of section 303 of the 
        Social Security Act is amended by striking paragraph (5).
            (2) Effective date.--The amendment made by this subsection 
        shall apply to requests for information made after the date of 
        the enactment of this Act.
    (b) Repeal of Termination Regarding Housing Assistance Programs.--
Subparagraph (D) of section 6103(1)(7) of the Internal Revenue Code of 
1986 is amended by striking the last sentence.

SEC. 210. NONDISCRIMINATION AGAINST CERTIFICATE AND VOUCHER HOLDERS.

    In the case of any multifamily rental housing that is receiving, or 
(except for insurance referred to in paragraph (4)) has received within 
two years before the effective date of this section, the benefit of 
Federal assistance from an agency of the United States, the owner shall 
not refuse to lease a reasonable number of units to families under the 
tenant-based assistance program under section 8 of the United States 
Housing Act of 1937 because of the status of the prospective tenants as 
families under that program. The Secretary shall establish reasonable 
time periods for applying the requirement of this section, taking into 
account the total amount of the assistance and the relative share of 
the assistance compared to the total cost of financing, developing, 
rehabilitating, or otherwise assisting a project. Federal assistance 
for purposes of this subsection shall mean--
            (1) project-based assistance under the United States 
        Housing Act of 1937;
            (2) assistance under title I of the Housing and Community 
        Development Act of 1974;
            (3) assistance under title II of the Cranston-Gonzalez 
        National Affordable Housing Act;
            (4) mortgage insurance under the National Housing Act;
            (5) low-income housing tax credits under section 42 of the 
        Internal Revenue Code of 1986;
            (6) assistance under title IV of the Stewart B. McKinney 
        Homeless Assistance Act; and
            (7) assistance under any other programs designated by the 
        Secretary of Housing and Urban Development.

SEC. 211. RECAPTURE AND REUSE OF ACC PROJECT RESERVES UNDER THE TENANT-
              BASED ASSISTANCE PROGRAM.

    Section 8(d) of the United States Housing Act of 1937 is amended by 
inserting at the end the following new paragraph:
            ``(5) To the extent that the Secretary determines that the 
        amount in the ACC reserve account under a contract with a 
        public housing agency for tenant-based assistance under this 
        section is in excess of the amount needed by the agency, the 
        Secretary shall recapture such excess amount. The Secretary may 
        hold recaptured amounts in reserve until needed to amend or 
        renew such contracts with any agency.''.

SEC. 212. EXPANDING THE COVERAGE OF THE PUBLIC AND ASSISTED HOUSING 
              DRUG ELIMINATION ACT OF 1990 TO INCLUDE OTHER TYPES OF 
              CRIME AND TO PROVIDE FORMULA FUNDING.

    (a) The Public and Assisted Housing Drug Elimination Act of 1990 is 
amended--
            (1) in section 5126(2)--
                    (A) in the heading, by inserting ``and other'' 
                after ``related'';
                    (B) by striking ``drug-related crime'' and 
                inserting ``drug-related and other crime''; and
                    (C) by inserting before the period the following: 
                ``and, as determined by the Secretary, other types of 
                crime''; and
            (2) in sections 5122(2), 5122(4), 5123, 5124(a)(4)(A), 
        5124(b), 5125(a), 5125(b)(1), 5125(c)(2), 5125(d), and 5128, by 
        striking ``drug-related crime'' and inserting ``drug-related 
        and other crime''.
    (b) Section 5125 of such Act is amended--
            (1) in the heading (and in the table of contents in section 
        5001 of the Anti-Drug Abuse Act of 1988 accordingly), by 
        inserting after ``applications'' the following: ``and formula 
        allocation'';
            (2) by striking ``(a) IN GENERAL'' and inserting ``(a)(1) 
        APPLICATIONS'';
            (3) by redesignating subsections (b), (b)(1), (b)(2), 
        (b)(3), and (b)(4) as subsections (b)(2), (a)(2)(A), (a)(2)(B), 
        (a)(2)(C), and (a)(2)(D);
            (4) by redesignating subsections (c), (c)(1), and (c)(2) as 
        subsections (a)(3), (a)(3)(A), and (a)(3)(B);
            (5) by redesignating subsection (d) as subsection (a)(4);
            (6) in subsection (a)(1), as redesignated, by striking ``a 
        public housing agency, a public housing resident management 
        corporation, or'';
            (7) in subsection (a)(2), as redesignated--
                    (A) by striking ``subsections (c) and (d)'' and 
                inserting ``paragraphs (3) and (4)''; and
                    (B) in subparagraphs (A) and (B), by striking 
                ``public or'' the two places it appears;
            (8) in subsection (a)(3), as redesignated, by striking 
        ``subsection (b)'' and inserting ``paragraph (2)'';
            (9) in subsection (a)(4), as redesignated, by striking 
        ``subsection (b)'' and inserting ``paragraph (2)''; and
            (10) by adding the following new subsection at the end:
    ``(b) Formula Allocation.--After setting aside amounts as provided 
in section 5130, the Secretary shall make grants to eligible 
recipients, except for owners of federally assisted low-income housing, 
in accordance with a formula established by the Secretary, which 
shall--
            ``(1) take into account the needs of the eligible recipient 
        for anti-drug and anti-crime funding, and the amount of funding 
        that the eligible recipient has received under this chapter 
        during fiscal years 1995, 1996, and 1997; and
            ``(2) not exclude an eligible recipient that has not 
        received funding during such fiscal years.
The Secretary may withhold, withdraw, or deny funds to a grantee if the 
Secretary determines that the grantee has not demonstrated satisfactory 
performance under a security indicator established by the Secretary.''.
    (c) Section 5128 of such Act is amended by striking ``section 
5125(a)'' and inserting ``section 5125(a)(1), section 5A(a)(1)(D)(iv) 
of the United States Housing Act of 1937, or section 102(c)(4)(J) of 
the Native American Housing Assistance and Self-Determination Act of 
1996''.
    (d) Section 5130 of such Act is amended--
            (1) by amending the first sentence of subsection (a) to 
        read as follows:
    ``There are authorized to be appropriated to carry out this chapter 
$290,000,000 for fiscal year 1998 and such sums as may be necessary for 
fiscal years 1999, 2000, 2001, 2002.'';
            (2) in subsection (b)--
                    (A) by striking ``Set-Asides'' and inserting ``Set-
                Aside for federally Assisted Low-Income Housing''; and
                    (B) by striking the second sentence; and
            (3) by amending subsection (c) to read as follows:
    ``(c) Set-Aside for Technical Assistance.--Of any amount made 
available in any fiscal year to carry out this chapter, the Secretary 
shall set aside amounts, to be provided directly or indirectly by 
grants, contracts, or cooperative agreements, for training, technical 
assistance, program assessment, execution, and other assistance for or 
on behalf of public housing agencies, tribally, designated housing 
entities, resident organizations, and officials and employees of the 
Department (including training and the cost of necessary travel for 
participants in such training, by or to officials and employees of the 
Department and of public housing agencies, and to residents and other 
eligible grantees.''.

     TITLE III--``ONE STRIKE AND YOU'RE OUT'' OCCUPANCY PROVISIONS

SEC. 301. SCREENING OF APPLICANTS.

    (a) Ineligibility Because of Past Evictions.--Any household or 
member of a household evicted from federally assisted housing (as 
defined in section 305(a)) by reason of drug-related criminal activity 
(as defined in section 305(c)) or for other serious violations of the 
terms or conditions of he lease shall not be eligible for federally 
assisted housing--
            (1) in the case of eviction by reason of drug-related 
        criminal activity, for a period of not less than three years 
        from the date of the eviction unless the evicted member of the 
        household successfully completes a rehabilitation program; and
            (2) for other evictions, for a reasonable period of time as 
        determined by the public housing agency or owner of the 
        federally assisted housing, as applicable.
The requirements of paragraphs (1) and (2) may be waived if the 
circumstances leading to eviction no longer exists.
    (b) Ineligibility of Illegal Drug Users and Alcohol Abusers.--
Notwithstanding any other provision of law, a public housing agency or 
an owner of federally assisted housing, or both, as determined by the 
Secretary, shall establish standards that prohibit admission to the 
program or admission to federally assisted housing for any household 
with a member--
            (1) who the public housing agency or the owner determines 
        is engaging in the illegal use of a controlled substance; or
            (2) with respect to whom the public housing agency or the 
        owner determines that it has reasonable cause to believe that 
        such household member's illegal use (or pattern of illegal use) 
        of a controlled substance, or abuse (or pattern of abuse) of 
        alcohol would interfere with the health, safety, or right to 
        peaceful enjoyment of the premises by other residents.
    (c) Consideration of Rehabilitation.--In determining whether, 
pursuant to subsection (b)(2), to deny admission to the program or to 
federally assisted housing to any household based on a pattern of 
illegal use of a controlled substance or a pattern of abuse of alcohol 
by a household member, a public housing agency or an owner may consider 
whether such household member--
            (1) has successfully completed an accredited drug or 
        alcohol rehabilitation program (as applicable) and is no longer 
        engaging in the illegal use of a controlled substance or abuse 
        of alcohol (as applicable);
            (2) has otherwise been rehabilitated successfully and is no 
        longer engaging in the illegal use of a controlled substance or 
        abuse of alcohol (as applicable); or
            (3) is participating in an accredited drug or alcohol 
        rehabilitation program (as applicable) and is no longer 
        engaging in the illegal use of a controlled substance or abuse 
        of alcohol (as applicable).
    (d) Authority To Deny Admission to the Program or to Federally 
Assisted Housing for Certain Criminal Offenders.--In addition to the 
provisions of subsections (a) and (b) and in addition to any other 
authority to screen applicants, in selecting among applicants for 
admission to the program or to federally assisted housing, if the 
public housing agency or owner of such housing, as applicable, 
determines that an applicant or any member of the applicant's household 
is or was, during a reasonable time preceding the date when the 
applicant household would otherwise be selected for admission, engaged 
in any drug-related or violent criminal activity or other criminal 
activity which would adversely affect the health, safety, or right to 
peaceful enjoyment of the premises by other residents, the owner or 
public housing agency may--
            (1) deny such applicant admission to the program or to 
        federally assisted housing; and
            (2) after expiration of the reasonable period beginning 
        upon such activity, require the applicant, as a condition of 
        admission to the program or to federally assisted housing, to 
        submit to the owner or public housing agency housing, to submit 
        to the owner or public housing agency evidence sufficient (as 
        the Secretary shall by regulation provide) to ensure that the 
        individual or individuals in the applicant's household who 
        engaged in such criminal activity for which denial was made 
        under this subsection have not engaged in any such criminal 
        activity during such reasonable time.
    (e) Authority To Require Access to Criminal Records.--A public 
housing agency may require, as a condition of providing admission to 
the public housing program, that each adult member of the household 
provide a signed, written authorization for the public housing provide 
a signed, written authorization for the public housing agency to obtain 
records described in section 304 regarding such member of the household 
from the National Crime Information Center, police departments, and 
other law enforcement agencies.

SEC. 302. TERMINATION OF TENANCY AND ASSISTANCE.

    (a) Termination of Tenancy and Assistance for Illegal Drug Users 
and Alcohol Abusers.--Notwithstanding any other provision of law, a 
public housing agency or an owner of federally assisted housing, as 
applicable, shall establish standards or lease provisions for continued 
assistance or occupancy in federally assisted housing that allow a 
public housing agency or the owner, as applicable, to terminate the 
tenancy or assistance for any household with a member--
            (1) who the public housing agency or owner determines is 
        engaging in the illegal use of a controlled substance; or
            (2) whose illegal use of a controlled substance, or whose 
        abuse of alcohol, is determined by the public housing agency or 
        owner to interfere with the health, safety, or right to 
        peaceful enjoyment of the premises by other residents.
    (b) Termination of Assistance for Serious Lease Violation.--
Nowtiwthstanding any other provision of law, the public housing agency 
must terminate tenant-based assistance for all household members if the 
household is evicted from assisted housing for serious violation of the 
lease.

SEC. 303. LEASE REQUIREMENTS.

    In addition to any other applicable lease requirements, each lease 
for a dwelling unit in federally assisted housing shall provide that--
            (1) the owner may not terminate the tenancy except for 
        serious or repeated violation of the terms and conditions of 
        the lease, violation of applicable Federal, State, or local 
        law, or other good cause; and
            (2) grounds for termination of tenancy shall include any 
        activity, engaged in by the tenant, any member of the tenant's 
        household, any quest, or any other person under the control of 
        any member of the household, that--
                    (A) threatens the health or safety of, or right to 
                peaceful enjoyment of the premises by, other tenants or 
                employees of the public housing agency, owner or other 
                manager of the housing,
                    (B) threatens the health or safety of, or right to 
                peaceful enjoyment of their residences by, persons 
                residing in the immediate vicinity of the premises, or
            (C) is drug-related or violent criminal activity on or off 
        the premises.

SEC. 304. AVAILABILITY OF CRIMINAL RECORDS FOR PUBLIC HOUSING TENANT 
              SCREENING AND EVICTION.

    (a) In general.--
            (1) Provision of information.--Notwithstanding any other 
        provision of law other than paragraphs (2) and (3), upon the 
        request of a public housing agency, the National Crime 
        Information Center, a police department, and any other law 
        enforcement agency shall provide to the public housing agency 
        information regarding the criminal conviction records of an 
        adult applicant for, or tenants of, the public housing for 
        purposes of applicant screening, lease enforcement, and 
        eviction, but only if the public housing agency requests such 
        information and presents to such Center, department, or agency 
        a written authorization, signed by such applicant, for the 
        release of such information to such public housing agency.
            (2) Exception.--A law enforcement agency described in 
        paragraph (1) shall provide information under this paragraph 
        relating to any criminal conviction of a juvenile only to the 
        extent that the release of such information is authorized under 
        the law of the applicable State, tribe, or locality.
    (b) Confidentiality.--A public housing agency receiving information 
under this section may use such information only for the purposes 
provided in this section and such information may not be disclosed to 
any person who is not an officer, employee, or authorized 
representatives of the public housing agency and who has a job-related 
need to have access to the information in connection with admission of 
applicants, eviction of tenants, or termination of assistance. However, 
for judicial eviction proceedings, disclosures may be made to the 
extent necessary. The Secretary shall, by regulation, establish 
procedures necessary to ensure that information provided under this 
section to any public housing agency is used, and confidentiality of 
such information is maintained, as required under this section.
    (c) Opportunity to Dispute.--Before an adverse action is taken with 
regard to assistance for public housing on the basis of a criminal 
record, the public housing agency shall provide the tenant or applicant 
with a copy of the criminal record and an opportunity to dispute the 
accuracy and relevance of that record.
    (d) Fee.--A public housing agency may be charged a reasonable fee 
for information provided under subsection (a).
    (e) Records Management.--Each public housing agency that receives 
criminal record information under this section shall establish and 
implement a system of records management that ensures that any criminal 
record received by the agency is--
            (1) maintained confidentially;
            (2) not misused or improperly disseminated; and
            (3) destroyed in a timely fashion, once the purpose for 
        which the record was requested has been accomplished.
    (f) Penalty.--Any person who knowingly and willfully requests or 
obtains any information concerning an applicant for, or resident of, 
public housing pursuant to the authority under this section under false 
pretenses, or any person who knowingly or willfully discloses any such 
information in any manner to any individual not entitled under any law 
to receive it, shall be guilty of a misdemeanor and fined not more than 
$5,000. The term ``person'' as used in this subsection shall include an 
officer, employee, or authorized representative of any public housing 
agency.
    (g) Civil Action.--Any applicant for, or resident of, public 
housing affected by (1) a negligent or knowing disclosure of 
information referred to in this section about such person by an officer 
or employee of any public housing agency, which disclosure is not 
authorized by this section, or (2) any other negligent or knowing 
action that is inconsistent with this section, may bring a civil action 
for damages and such other relief as may be appropriate against any 
public housing agency responsible for such unauthorized action. The 
district court of the United States in the district in which the 
affected applicant or resident resides, in which such unauthorized 
action occurred, or in which the officer or employee alleged to be 
responsible for any such unauthorized action resides, shall have 
jurisdiction in such matters. Appropriate relief that may be ordered by 
such district courts shall include reasonable attorney's fees and other 
litigation costs.
    (h) Definition of Adult.--For purposes of this section, the term 
``adult'' means a person who is 18 years of age or older, or who has 
been convicted of a crime as an adult under any Federal, State, or 
tribal law.

SEC. 305. DEFINITIONS.

    For purposes of this title, the following definitions shall apply:
    (a) Federally Assisted Housing.--The term ``federally assisted 
housing'' means a unit in--
            (1) public housing under the United States Housing Act of 
        1937;
            (2) housing assisted under section 8 of the United States 
        Housing Act of 1937 including both tenant-based assistance and 
        project-based assistance;
            (3) housing that is assisted under section 202 of the 
        Housing act of 1959 (as amended by section 801 of the Cranston-
        Gonzalez National Affordable Housing Act);
            (4) housing that is assisted under section 202 of the 
        Housing Act of 1959, as such section existed before enactment 
        of the Cranston-Gonzalez National Affordable Housing Act;
            (5) housing that is assisted under section 811 of the 
        Cranston-Gonzalez National Affordable Housing Act;
            (6) housing financed by a loan or mortgage insured under 
        section 221(d)(3) of the National Housing Act that bears 
        interest at a rate determined under the proviso of section 
        221(d)(5) of such Act;
            (7) housing with a mortgage insured, assisted, or held by 
        the Secretary or a State or State agency under section 236 of 
        the National Housing Act; and
            (8) for purposes only of subsections 301(c), 301(d), 303, 
        and 304, housing assisted under section 515 of the Housing Act 
        of 1949.
    (b) Drug-Related Criminal Activity.--The term ``drug-related 
criminal activity'' means the illegal manufacture, sale, distribution, 
use, or possession with intent to manufacture, sell, distribute, or 
use, of a controlled substance (as defined in section 102 of the 
Controlled Substances Act (21 U.S.C. 802)).
    (c) Owner.--The term ``owner'' means, with respect to federally 
assisted housing, the entity or private person, including a cooperative 
or public housing agency, that has the legal right to lease or sublease 
dwelling units in such housing.

SEC. 306. CONFORMING AMENDMENTS.

    (a) Consolidation of Public Housing One Strike Provisions.--Section 
6 of the United States Housing act of 1937 is amended--
            (1) by striking subsections (l)(4) and (l)(5) and the last 
        sentence of subsection (l), and redesignating paragraphs (6) 
        and (7) as paragraphs (4) and (5);
            (2) by striking subsection (q); and
            (3) by striking subsection (r).
    (b) Consolidation of Section 8 One Strike Provisions.--Section 8 of 
the United States Housing Act of 1937 (42 U.S.C. 1437f) is amended--
            (1) by striking subsections (d)(1)(B)(ii) and 
        (d)(1)(B)(iii), and redesignating clauses (iv) and (v) as 
        clauses (ii) and (iii); and
            (2) by striking subsections (f)(5) and redesignating 
        Paragraphs (6) and (7) as paragraphs (5) and (6), respectively.
    (c) Consolidation of One Strike Eligibility Provisions.--Section 16 
of the United States Housing Act of 1937 is amended by striking 
subsection (e).
                                 <all>