[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3545 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3545

 To amend section 8 of the United States Housing Act of 1937 to ensure 
 that the tenant-based rental assistance program under such section is 
              carried out in an efficient and fair manner.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 25, 1998

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

_______________________________________________________________________

                                 A BILL


 
 To amend section 8 of the United States Housing Act of 1937 to ensure 
 that the tenant-based rental assistance program under such section is 
              carried out in an efficient and fair manner.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Neighborhood Integrity and 
Responsibility Act''.

SEC. 2. RENT REASONABLENESS TEST.

    (a) Housing Certificate Program.--Section 8(c)(2) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(c)(2)) is amended by adding 
at the end the following new subparagraph:
    ``(D)(i) Each public housing agency administering assistance 
provided under the housing certificate program under this section shall 
ensure that the rent charged for each dwelling unit assisted by the 
agency is reasonable in comparison with rents charged for comparable 
unassisted units available in the private residential rental market, 
by--
            ``(I) reviewing all rents for units under consideration by 
        families assisted under the certificate program; and
            ``(II) reviewing all rent increases for units under lease 
        by families assisted under such program.
If an agency determines that the rent (or rent increase) for a unit is 
not reasonable, the agency shall disapprove a lease for such unit.
    ``(ii) For purposes of this subparagraph, rent comparisons shall be 
conducted by comparing the rent of the assisted dwelling unit with the 
rent of comparable unassisted units that are located in a geographical 
area, determined by the agency and approved by the Secretary that--
            ``(I) is geographically smaller than the applicable housing 
        area used for the establishment of fair market rentals under 
        paragraph (1);
            ``(II) has a continuous boundary; and
            ``(III) exhibits a commonality of geographic, demographic, 
        housing, or other characteristics that make it appropriate for 
        use under this subparagraph, including characteristics such as 
        consisting of a recognized or identifiable neighborhood or 
        geographic area, proximity to or identification with a 
        particular location, structure, or feature, having a population 
        with similar incomes, or containing housing a significant 
        portion of which is similar in age, cost, type, or design.''.
    (b) Housing Voucher Program.--The last sentence of paragraph (10) 
of section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(10)) is amended by striking ``may'' and inserting ``shall''.
    (c) Condition on Receipt of Administrative Fees.--Section 8(q) of 
the United States Housing Act of 1937 (42 U.S.C. 1437f(q)) is amended 
by adding at the end the following new paragraph:
    ``(5) Notwithstanding any other provision of this subsection, the 
fee under this subsection attributable to any dwelling unit for any 
fiscal year may be paid to the public housing agency only if the agency 
has complied, during the preceding fiscal year, with the requirement 
under subsection (c)(2)(D) or (o)(10), as applicable, to such dwelling 
unit.''.

SEC. 3. LIMITATION ON ASSISTED UNITS OWNED BY SINGLE OWNER.

    Section 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f) is amended by inserting after subsection (k) the following new 
subsection:
    ``(l) Ownership Limitation.--
            ``(1) In general.--Except as provided in paragraphs (2) and 
        (3), a single public housing agency may not provide tenant-
        based assistance under this section for more than 5 dwelling 
        units that are owned by any single owner.
            ``(2) Waiver.--A public housing agency may waive the 
        applicability of the limitation under paragraph (1) with 
        respect to an owner if the agency determines that all dwelling 
        units owned by such owner and assisted or to be assisted with 
        tenant-based assistance under this section are, at that time, 
        in compliance with housing quality standards established by the 
        Secretary for purposes of this section and any applicable State 
        or local laws relating to housing habitability, construction, 
        maintenance, safety, health, and sanitation.
            ``(3) Protection of current owners.--
                    ``(A) In general.--If, at any time, a single owner 
                owns more than 5 protected dwelling units, such 
                protected dwelling units in excess of 5 shall not be 
                considered at such time for purposes of applying the 
                numerical limitation under paragraph (1) to such owner.
                    ``(B) Protected dwelling units.--A dwelling unit 
                shall be considered to be a protected dwelling unit at 
                any time for purposes of this paragraph only if the 
                dwelling unit, at that time, is occupied by a tenant 
                who--
                            ``(i) is an assisted family on whose behalf 
                        tenant-based assistance under this section is 
                        provided;
                            ``(ii) on the date of the enactment of the 
                        Neighborhood Integrity and Responsibility Act 
                        occupied such unit and, at such time, was 
                        assisted with tenant-based assistance under 
                        this section; and
                            ``(iii) has, without interruption since 
                        such date of enactment, continued to occupy 
                        such unit and continued to be assisted with 
                        such assistance.
            ``(4) Owner.--The Secretary shall issue regulations 
        defining the term `single owner' for purposes of this 
        subsection. The regulations shall provide that, with respect to 
        any person or entity, any other person or entity owned or 
        controlled by such person or entity (including any such 
        affiliate or subsidiary of such person or entity) shall be 
        considered a single owner for purposes of this subsection.''.

SEC. 4. RENT PAID BY ASSISTED FAMILIES.

    (a) Exceptions to General Rent Rule.--Section 3(a)(1) of the United 
States Housing Act of 1937 (42 U.S.C. 1437a(1)) is amended in the 
matter preceding subparagraph (A) by striking ``section 8(c)(3)(B)'' 
and inserting ``subparagraph (B) or (C) of section 8(c)(3)''.
    (b) Tenant Rent Payment Under Certificate Program.--Section 8(c)(3) 
of the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(3)) is 
amended--
            (1) in the first sentence of subparagraph (A), by inserting 
        before the period at the end the following: ``or subparagraph 
        (B) or (C) of this paragraph, as applicable''; and
            (2) in subparagraph (B)(i), by striking the matter that 
        precedes clause I and inserting the following:
    ``(B)(i) Notwithstanding section 3(a)(1) and subparagraph (B) of 
this paragraph, a family receiving tenant-based assistance under 
subsection (b) may pay for rent more than the amount determined under 
such provisions if--'';
            (3) by redesignating subparagraph (B) (as so amended) as 
        subparagraph (C); and
            (4) by inserting after subparagraph (A) the following new 
        subparagraph:
    ``(B) A family on whose behalf tenant-based assistance under 
subsection (b) is provided for a dwelling unit having a maximum monthly 
rent under the contract equal to or exceeding 50 percent of the 
applicable fair market rental for the area shall pay as rent for the 
dwelling unit the greater of the following two amounts:
            ``(i) The amount determined for the family under section 
        3(a)(1).
            ``(ii) For a dwelling unit having a maximum monthly rent 
        under the contract--
                    ``(I) that is equal to or exceeds 75 percent of the 
                applicable fair market rental for the area, the amount 
                that is equal to 50 percent of the contract rent for 
                the unit.
                    ``(II) that is equal to or exceeds 50 percent of 
                the applicable fair market rental for the area but is 
                less than 75 percent of such fair market rental, the 
                amount that is equal to 30 percent of the contract rent 
                for the unit.''.
    (c) Monthly Assistance Payment Under Voucher Program.--Section 8(o) 
of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)) is 
amended--
            (1) in paragraph (2)--
                    (A) by striking ``The'' and inserting ``(A) Except 
                as provided in paragraph (2), the''; and
                    (B) by adding at the end the following new 
                subparagraph:
    ``(B) The monthly assistance payment under this subsection for any 
family renting a dwelling unit having a rent equal to or exceeding 50 
percent of the applicable payment standard for the area shall be the 
amount by which the payment standard exceeds the greater of the 
following two amounts:
            ``(i) The amount determined for the family pursuant to 
        subparagraph (A).
            ``(ii) For a dwelling unit having a rent--
                    ``(I) that is equal to or exceeds 75 percent of the 
                applicable payment standard for the area, the amount 
                that is equal to 50 percent of the rent for the unit.
                    ``(II) that is equal to or exceeds 50 percent of 
                the applicable payment standard for the area but is 
                less than 75 percent of such payment standard, the 
                amount that is equal to 30 percent of the rent for the 
                unit.''.
    (d) Conforming Amendments.--Section 8 of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(c)(1)(B)) is amended--
            (1) in clause (b) of the second sentence of subsection 
        (c)(1), by striking ``paragraph (3)(B)'' and inserting 
        ``paragraph (3)(C)''; and
            (2) in subsection (y)(6)(A), by striking ``Subsection 
        (c)(3)(B)'' and inserting ``Subsection (c)(3)(C)''.
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