[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[S. 462 Referred in House (RFH)]

  2d Session
                                 S. 462


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            October 21, 1998

      Referred to the Committee on Banking and Financial Services

_______________________________________________________________________

                                 AN ACT


 
 To reform and consolidate the public and assisted housing programs of 
  the United States, and to redirect primary responsibility for these 
programs from the Federal Government to States and localities, and for 
                            other purposes.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Public Housing 
Reform and Responsibility Act of 1997''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Effective date.
Sec. 5. Proposed regulations; technical recommendations.
Sec. 6. Elimination of obsolete documents.
Sec. 7. Annual reports.
                        TITLE I--PUBLIC HOUSING

Sec. 101. Declaration of policy.
Sec. 102. Membership on board of directors.
Sec. 103. Rental payments.
Sec. 104. Definitions.
Sec. 105. Contributions for lower income housing projects.
Sec. 106. Public housing agency plan.
Sec. 107. Contract provisions and requirements.
Sec. 108. Expansion of powers for dealing with public housing agencies 
                            in substantial default.
Sec. 109. Public housing site-based waiting lists.
Sec. 110. Public housing capital and operating funds.
Sec. 111. Community service and self-sufficiency.
Sec. 112. Repeal of energy conservation; consortia and joint ventures.
Sec. 113. Repeal of modernization fund.
Sec. 114. Eligibility for public and assisted housing.
Sec. 115. Demolition and disposition of public housing.
Sec. 116. Repeal of family investment centers; voucher system for 
                            public housing.
Sec. 117. Repeal of family self-sufficiency; homeownership 
                            opportunities.
Sec. 118. Revitalizing severely distressed public housing.
Sec. 119. Mixed-finance and mixed-ownership projects.
Sec. 120. Conversion of distressed public housing to tenant-based 
                            assistance.
Sec. 121. Public housing mortgages and security interests.
Sec. 122. Linking services to public housing residents.
Sec. 123. Prohibition on use of amounts.
Sec. 124. Pet ownership.
Sec. 125. City of Indianapolis flexible grant demonstration.
                 TITLE II--SECTION 8 RENTAL ASSISTANCE

Sec. 201. Merger of the certificate and voucher programs.
Sec. 202. Repeal of Federal preferences.
Sec. 203. Portability.
Sec. 204. Leasing to voucher holders.
Sec. 205. Homeownership option.
Sec. 206. Law enforcement and security personnel in public housing.
Sec. 207. Technical and conforming amendments.
Sec. 208. Implementation.
Sec. 209. Definition.
Sec. 210. Effective date.
Sec. 211. Recapture and reuse of annual contribution contract project 
                            reserves under the tenant-based assistance 
                            program.
     TITLE III--SAFETY AND SECURITY IN PUBLIC AND ASSISTED HOUSING

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 resident 
                            screening and eviction.
Sec. 305. Definitions.
Sec. 306. Conforming amendments.
                   TITLE IV--MISCELLANEOUS PROVISIONS

Sec. 401. Public housing flexibility in the CHAS.
Sec. 402. Determination of income limits.
Sec. 403. Demolition of public housing.
Sec. 404. National Commission on Housing Assistance Program Costs.
Sec. 405. Technical correction of public housing agency opt-out 
                            authority.
Sec. 406. Review of drug elimination program contracts.
Sec. 407. Treatment of public housing agency repayment agreement.
Sec. 408. Ceiling rents for certain section 8 properties.
Sec. 409. Sense of Congress.
Sec. 410. Other repeals.
Sec. 411. Guarantee of loans for acquisition of property.
Sec. 412. Prohibition on use of assistance for employment relocation 
                            activities.
Sec. 413. Use of HOME funds for public housing modernization.
Sec. 414. Report on single family and multifamily homes.

SEC. 2. FINDINGS AND PURPOSES.

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

SEC. 3. DEFINITIONS.

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

SEC. 4. EFFECTIVE DATE.

    (a) In General.--Except with respect to any provision or amendment 
identified by the Secretary under subsection (b) and as otherwise 
specifically provided in this Act or the amendments made by this Act, 
this Act and the amendments made by this Act shall take effect on the 
date of enactment of this Act.
    (b) Exception.--
            (1) Determination.--Not later than 2 months after the date 
        of enactment of this Act, the Secretary shall identify any 
        provision of this Act, or any amendment made by this Act, the 
        implementation of which, in the determination of the 
        Secretary--
                    (A) requires a substantial exercise of discretion, 
                such that there exists a significant risk of 
                litigation;
                    (B) requires a need for uniform interpretation; or
                    (C) is otherwise problematic, such that immediate 
                implementation is inappropriate.
            (2) Notice.--
                    (A) In general.--Notwithstanding any other 
                provision of law, not later than 6 months after the 
                date on which the Secretary makes any identification 
                under paragraph (1), the Secretary shall implement each 
                provision or amendment so identified by notice 
                published in the Federal Register, which notice shall--
                            (i) include such requirements as may be 
                        necessary to implement the provision or 
                        amendment; and
                            (ii) invite public comments on those 
                        requirements.
                    (B) Effective date of notice.--The notice published 
                under paragraph (2) may, in the discretion of the 
                Secretary, take effect upon publication.
            (3) Final regulations.--Not later than 12 months after the 
        date of enactment of this Act, the Secretary shall issue such 
        final regulations as may be necessary, taking into account any 
        comments received under paragraph (2)(A)(ii), to implement each 
        provision or amendment identified under paragraph (1).

SEC. 5. PROPOSED REGULATIONS; TECHNICAL RECOMMENDATIONS.

    (a) Proposed Regulations.--Not later than 9 months after the date 
of enactment of this Act, the Secretary shall submit to Congress 
proposed regulations that the Secretary determines are necessary to 
carry out the United States Housing Act of 1937, as amended by this 
Act.
    (b) Technical Recommendations.--Not later than 9 months after the 
date of enactment of this Act, the Secretary shall submit to the 
Committee on Banking, Housing, and Urban Affairs of the Senate and the 
Committee on Banking and Financial Services of the House of 
Representatives, recommended technical and conforming legislative 
changes necessary to carry out this Act and the amendments made by this 
Act.

SEC. 6. ELIMINATION OF OBSOLETE DOCUMENTS.

    Effective 1 year after the date of enactment of this Act, no rule, 
regulation, or order (including all handbooks, notices, and related 
requirements) pertaining to public housing or section 8 tenant-based 
programs issued or promulgated under the United States Housing Act of 
1937 before the date of enactment of this Act may be enforced by the 
Secretary.

SEC. 7. ANNUAL REPORTS.

    Not later than 1 year after the date of enactment of this Act, and 
annually thereafter, the Secretary shall submit a report to Congress 
on--
            (1) the impact of the amendments made by this Act on--
                    (A) the demographics of public housing residents 
                and families receiving tenant-based assistance under 
                the United States Housing Act of 1937; and
                    (B) the economic viability of public housing 
                agencies; and
            (2) the effectiveness of the rent policies established by 
        this Act and the amendments made by this Act on the employment 
        status and earned income of public housing residents.

                        TITLE I--PUBLIC HOUSING

SEC. 101. DECLARATION OF POLICY.

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

``SEC. 2. DECLARATION OF POLICY.

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

SEC. 102. MEMBERSHIP ON BOARD OF DIRECTORS.

    Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et 
seq.) is amended--
            (1) by redesignating the second section designated as 
        section 27 (as added by section 903(b) of Public Law 104-193 
        (110 Stat. 2348)) as section 28; and
            (2) by adding at the end the following:

``SEC. 29. MEMBERSHIP ON BOARD OF DIRECTORS.

    ``(a) Required Membership.--Except as provided in subsection (b), 
the membership of the board of directors of each public housing agency 
shall contain not less than 1 member--
            ``(1) who is a resident who directly receives assistance 
        from the public housing agency; and
            ``(2) who may, if provided for in the public housing agency 
        plan (as developed with appropriate notice and opportunity for 
        comment by the resident advisory board) be elected by the 
        residents directly receiving assistance from the public housing 
        agency.
    ``(b) Exception.--Subsection (a) shall not apply to any public 
housing agency--
            ``(1) that is located in a State that requires the members 
        of the board of directors of a public housing agency to be 
        salaried and to serve on a full-time basis; or
            ``(2) with less than 300 units, if--
                    ``(A) the public housing agency has provided 
                reasonable notice to the resident advisory board of the 
                opportunity of not less than 1 resident described in 
                subsection (a) to serve on the board of directors of 
                the public housing agency pursuant to that subsection; 
                and
                    ``(B) within a reasonable time after receipt by the 
                resident advisory board of notice under subparagraph 
                (A), the public housing agency has not been notified of 
                the intention of any resident to participate on the 
                board of directors.
    ``(c) Nondiscrimination.--No person shall be prohibited from 
serving on the board of directors or similar governing body of a public 
housing agency because of the residence of that person in a public 
housing project.''.

SEC. 103. RENTAL PAYMENTS.

    (a) In General.--Section 3(a)(1)(A) of the United States Housing 
Act of 1937 (42 U.S.C. 1437a(a)(1)(A)) is amended by inserting before 
the semicolon the following: `` or, if the family resides in public 
housing, an amount established by the public housing agency, which 
shall not exceed 30 percent of the monthly adjusted income of the 
family''.
    (b) Authority of Public Housing Agencies.--Section 3(a)(2) of the 
United States Housing Act of 1937 (42 U.S.C. 1437a(a)(2)) is amended to 
read as follows:
            ``(2) Authority of public housing agencies.--
                    ``(A) In general.--Notwithstanding paragraph (1), a 
                public housing agency may adopt ceiling rents that 
                reflect the reasonable market value of the housing, but 
                that are not less than--
                            ``(i) 75 percent of the monthly cost to 
                        operate the housing of the public housing 
                        agency; and
                            ``(ii) the monthly cost to make a deposit 
                        to a replacement reserve (in the sole 
                        discretion of the public housing agency).
                    ``(B) Minimum rent.--Notwithstanding paragraph (1), 
                a public housing agency may provide that each family 
                residing in a public housing project or receiving 
                tenant-based or project-based assistance under section 
                8 shall pay a minimum monthly rent in an amount not to 
                exceed $25 per month.
                    ``(C) Police officers.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of law and subject to clause 
                        (ii), a public housing agency may, in 
                        accordance with the public housing agency plan, 
                        allow a police officer who is not otherwise 
                        eligible for residence in public housing to 
                        reside in a public housing unit. The number and 
                        location of units occupied by police officers 
                        under this clause, and the terms and conditions 
                        of their tenancies, shall be determined by the 
                        public housing agency.
                            ``(ii) Increased security.--A public 
                        housing agency may take the actions authorized 
                        in clause (i) only for the purpose of 
                        increasing security for the residents of a 
                        public housing project.
                            ``(iii) Definition.--In this subparagraph, 
                        the term `police officer' means any person 
                        determined by a public housing agency to be, 
                        during the period of residence of that person 
                        in public housing, employed on a full-time 
                        basis as a duly licensed professional police 
                        officer by a Federal, State, or local 
                        government or by any agency thereof (including 
                        a public housing agency having an accredited 
                        police force).
                    ``(D) Exception to income limitations for certain 
                public housing agencies.--
                            ``(i) Definition of over-income family.--In 
                        this subparagraph, the term `over-income 
                        family' means an individual or family that is 
                        not a low-income family or a very low-income 
                        family.
                            ``(ii) Authorization.--Notwithstanding any 
                        other provision of law, a public housing agency 
                        that manages less than 250 units may, on a 
                        month-to-month basis, lease a unit in a public 
                        housing project to an over-income family in 
                        accordance with this subparagraph, if there are 
                        no eligible families applying for residence in 
                        that public housing project for that month.
                            ``(iii) Terms and conditions.--The number 
                        and location of units occupied by over-income 
                        families under this subparagraph, and the terms 
                        and conditions of those tenancies, shall be 
                        determined by the public housing agency, except 
                        that--
                                    ``(I) rent for a unit shall be in 
                                an amount that is equal to not less 
                                than the costs to operate the unit;
                                    ``(II) if an eligible family 
                                applies for residence after an over-
                                income family moves in to the last 
                                available unit, the over-income family 
                                shall vacate the unit not later than 
                                the date on which the month term 
                                expires; and
                                    ``(III) if a unit is vacant and 
                                there is no one on the waiting list, 
                                the public housing agency may allow an 
                                over-income family to gain immediate 
                                occupancy in the unit, while 
                                simultaneously providing reasonable 
                                public notice of the availability of 
                                the unit.
                    ``(E) Encouragement of self-sufficiency.--Each 
                public housing agency shall develop a rental policy 
                that encourages and rewards employment and economic 
                self-sufficiency.''.
    (c) Regulations.--
            (1) In general.--The Secretary shall, by regulation, after 
        notice and an opportunity for public comment, establish such 
        requirements as may be necessary to carry out section 
        3(a)(2)(A) of the United States Housing Act of 1937, as amended 
        by this section.
            (2) Transition rule.--
                    (A) In general.--Subject to subparagraph (B), prior 
                to the issuance of final regulations under paragraph 
                (1), a public housing agency may implement ceiling 
                rents, which shall be--
                            (i) determined in accordance with section 
                        3(a)(2)(A) of the United States Housing Act of 
                        1937 (amended by subsection (b) of this 
                        section);
                            (ii) equal to the 95th percentile of the 
                        rent paid for a unit of comparable size by 
                        residents in the same public housing project or 
                        a group of comparable projects totaling 50 
                        units or more; or
                            (iii) equal to the fair market rent for the 
                        area in which the unit is located.
                    (B) Minimum amount.--The amount of any ceiling rent 
                implemented by a public housing agency under this 
                paragraph may not be less than 75 percent of the 
                monthly cost to operate the housing.

SEC. 104. DEFINITIONS.

    (a) Definitions.--
            (1) Single persons.--Section 3(b)(3) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437a(b)(3)) is amended--
                    (A) in subparagraph (A), by striking the third 
                sentence; and
                    (B) in subparagraph (B), in the second sentence, by 
                striking ``regulations of the Secretary'' and inserting 
                ``public housing agency plan''.
            (2) Adjusted income.--Section 3(b)(5) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437a(b)(5)) is amended to read 
        as follows:
            ``(5) Adjusted income.--The term `adjusted income' means 
        the income that remains after excluding--
                    ``(A) $480 for each member of the family residing 
                in the household (other than the head of the household 
                or the spouse of the head of the household)--
                            ``(i) who is under 18 years of age; or
                            ``(ii) who is--
                                    ``(I) 18 years of age or older; and
                                    ``(II) a person with disabilities 
                                or a full-time student;
                    ``(B) $400 for an elderly or disabled family;
                    ``(C) the amount by which the aggregate of--
                            ``(i) medical expenses for an elderly or 
                        disabled family; and
                            ``(ii) reasonable attendant care and 
                        auxiliary apparatus expenses for each family 
                        member who is a person with disabilities, to 
                        the extent necessary to enable any member of 
                        the family (including a member who is a person 
                        with disabilities) to be employed;
                exceeds 3 percent of the annual income of the family;
                    ``(D) child care expenses, to the extent necessary 
                to enable another member of the family to be employed 
                or to further his or her education; and
                    ``(E) any other adjustments to earned income that 
                the public housing agency determines to be appropriate, 
                as provided in the public housing agency plan.''.
    (b) Disallowance of Earned Income From Public Housing Rent 
Determinations.--
            (1) In general.--Section 3 of the United States Housing Act 
        of 1937 (42 U.S.C. 1437a) is amended--
                    (A) by striking the undesignated paragraph at the 
                end of subsection (c)(3) (as added by section 515(b) of 
                the Cranston-Gonzalez National Affordable Housing Act); 
                and
                    (B) by adding at the end the following:
    ``(d) Disallowance of Earned Income From Public Housing Rent 
Determinations.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, the rent payable under subsection (a) by 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 1 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).
    ``(e) Individual Savings Accounts.--
            ``(1) In general.--In lieu of a disallowance of earned 
        income under subsection (d), upon the request of a family that 
        qualifies under subsection (d), a public housing agency may 
        establish an individual savings account in accordance with this 
        subsection for that family.
            ``(2) Deposits to account.--The public housing agency shall 
        deposit in any savings account established under this 
        subsection an amount equal to the total amount that otherwise 
        would be applied to the family's rent payment under subsection 
        (a) as a result of employment.
            ``(3) Withdrawal from account.--Amounts deposited in a 
        savings account established under this subsection may only be 
        withdrawn by the family for the purpose of--
                    ``(A) purchasing a home;
                    ``(B) paying education costs of family members;
                    ``(C) moving out of public or assisted housing; or
                    ``(D) paying any other expense authorized by the 
                public housing agency for the purpose of promoting the 
                economic self-sufficiency of residents of public and 
                assisted housing.''.
            (2) Applicability of amendment.--
                    (A) Public housing.--Notwithstanding the amendment 
                made by paragraph (1), any resident of public housing 
                participating in the program under the authority 
                contained in the undesignated paragraph at the end of 
                section 3(c)(3) of the United States Housing Act of 
                1937, as that section existed on the day before the 
                date of enactment of this Act, shall be governed by 
                that authority after that date.
                    (B) Section 8.--The amendment made by paragraph (1) 
                shall apply to tenant-based assistance provided under 
                section 8 of the United States Housing Act of 1937, 
                with funds appropriated on or after October 1, 1997.
    (c) Definitions of Terms Used in Reference to Public Housing.--
            (1) In general.--Section 3(c) of the United States Housing 
        Act of 1937 (42 U.S.C. 1437a(c)) is amended--
                    (A) in paragraph (1), by inserting ``and of the 
                fees and related costs normally involved in obtaining 
                non-Federal financing and tax credits with or without 
                private and nonprofit partners'' after ``carrying 
                charges''; and
                    (B) in paragraph (2), in the first sentence, by 
                striking ``security personnel),'' and all that follows 
                through the period and inserting the following: 
                ``security personnel), service coordinators, drug 
                elimination activities, or financing in connection with 
                a public housing project, including projects developed 
                with non-Federal financing and tax credits, with or 
                without private and nonprofit partners.''.
            (2) Technical correction.--Section 622(c) of the Housing 
        and Community Development Act of 1992 (Public Law 102-550; 106 
        Stat. 3817) is amended by striking ```project.''' and inserting 
        ``paragraph (3)''.
            (3) New definitions.--Section 3(c) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437a(c)) is amended by adding 
        at the end the following:
            ``(6) Public housing agency plan.--The term `public housing 
        agency plan' means the plan of the public housing agency 
        prepared in accordance with section 5A.
            ``(7) Disabled housing.--The term `disabled housing' means 
        any public housing project, building, or portion of a project 
        or building, that is designated by a public housing agency for 
        occupancy exclusively by disabled persons or families.
            ``(8) Elderly housing.--The term `elderly housing' means 
        any public housing project, building, or portion of a project 
        or building, that is designated by a public housing agency 
        exclusively for occupancy exclusively by elderly persons or 
        families, including elderly disabled persons or families.
            ``(9) Mixed-finance project.--The term `mixed-finance 
        project' means a public housing project that meets the 
        requirements of section 30.
            ``(10) Capital fund.--The term `Capital Fund' means the 
        fund established under section 9(c).
            ``(11) Operating fund.--The term `Operating Fund' means the 
        fund established under section 9(d).''.

SEC. 105. CONTRIBUTIONS FOR LOWER INCOME HOUSING PROJECTS.

    (a) In General.--Section 5 of the United States Housing Act of 1937 
(42 U.S.C. 1437c) is amended by striking subsections (h) through (l).
    (b) Conforming Amendments.--The United States Housing Act of 1937 
(42 U.S.C. 1437 et seq.) is amended--
            (1) in section 21(d), by striking ``section 5(h) or'';
            (2) in section 25(l)(1), by striking ``and for sale under 
        section 5(h)''; and
            (3) in section 307, by striking ``section 5(h) and''.

SEC. 106. PUBLIC HOUSING AGENCY PLAN.

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

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

    ``(a) 5-Year Plan.--
            ``(1) In general.--Subject to paragraph (2), not less than 
        once every 5 fiscal years, each public housing agency shall 
        submit to the Secretary a plan that includes, with respect to 
        the 5 fiscal years immediately following the date on which the 
        plan is submitted--
                    ``(A) a statement of the mission of the public 
                housing agency for serving the needs of low-income and 
                very low-income families in the jurisdiction of the 
                public housing agency during those fiscal years; and
                    ``(B) a statement of the goals and objectives of 
                the public housing agency that will enable the public 
                housing agency to serve the needs identified pursuant 
                to subparagraph (A) during those fiscal years.
            ``(2) Initial plan.--The initial 5-year plan submitted by a 
        public housing agency under this subsection shall be submitted 
        for the 5-year period beginning with the first fiscal year 
        following the date of enactment of the Public Housing Reform 
        and Responsibility Act of 1997 for which the public housing 
        agency receives assistance under this Act.
    ``(b) Annual Plan.--
            ``(1) In general.--Each public housing agency shall submit 
        to the Secretary a public housing agency plan under this 
        subsection for each fiscal year for which the public housing 
        agency receives assistance under sections 8(o) and 9.
            ``(2) Updates.--For each fiscal year after the initial 
        submission of a plan under this section by a public housing 
        agency, the public housing agency may comply with requirements 
        for submission of a plan under this subsection by submitting an 
        update of the plan for the fiscal year.
    ``(c) Procedures.--
            ``(1) In general.--The Secretary shall establish 
        requirements and procedures for submission and review of plans, 
        including requirements for timing and form of submission, and 
        for the contents of those plans.
            ``(2) Contents.--The procedures established under paragraph 
        (1) shall provide that a public housing agency shall--
                    ``(A) consult with the resident advisory board 
                established under subsection (e) in developing the 
                plan; and
                    ``(B) ensure that the plan under this section is 
                consistent with the applicable comprehensive housing 
                affordability strategy (or any consolidated plan 
                incorporating that strategy) for the jurisdiction in 
                which the public housing agency is located, in 
                accordance with title I of the Cranston-Gonzalez 
                National Affordable Housing Act and contains a 
                certification by the appropriate State or local 
                official that the plan meets the requirements of this 
                paragraph and a description of the manner in which the 
                applicable contents of the public housing agency plan 
                are consistent with the comprehensive housing 
                affordability strategy.
    ``(d) Contents.--An annual public housing agency plan under this 
section for a public housing agency shall contain the following 
information relating to the upcoming fiscal year for which the 
assistance under this Act is to be made available:
            ``(1) Needs.--A statement of the housing needs of low-
        income and very low-income families residing in the 
        jurisdiction served by the public housing agency, and of other 
        low-income and very low-income families on the waiting list of 
        the agency (including housing needs of elderly families and 
        disabled families), and the means by which the public housing 
        agency intends, to the maximum extent practicable, to address 
        those needs.
            ``(2) Financial resources.--A statement of financial 
        resources available to the agency and the planned uses of those 
        resources.
            ``(3) Eligibility, selection, and admissions policies.--A 
        statement of the policies governing eligibility, selection, 
        admissions (including any preferences), assignment, and 
        occupancy of families with respect to public housing dwelling 
        units and housing assistance under section 8(o).
            ``(4) Rent determination.--A statement of the policies of 
        the public housing agency governing rents charged for public 
        housing dwelling units and rental contributions of assisted 
        families under section 8(o).
            ``(5) Operation and management.--A statement of the rules, 
        standards, and policies of the public housing agency governing 
        maintenance and management of housing owned and operated by the 
        public housing agency (which shall include measures necessary 
        for the prevention or eradication of infestation by 
        cockroaches), and management of the public housing agency and 
        programs of the public housing agency.
            ``(6) Grievance procedure.--A statement of the grievance 
        procedures of the public housing agency.
            ``(7) Capital improvements.--With respect to public housing 
        developments owned or operated by the public housing agency, a 
        plan describing the capital improvements necessary to ensure 
        long-term physical and social viability of the developments.
            ``(8) Demolition and disposition.--With respect to public 
        housing developments owned or operated by the public housing 
        agency--
                    ``(A) a description of any housing to be demolished 
                or disposed of; and
                    ``(B) a timetable for that demolition or 
                disposition.
            ``(9) Designation of housing for elderly and disabled 
        families.--With respect to public housing developments owned or 
        operated by the public housing agency, a description of any 
        developments (or portions thereof) that the public housing 
        agency has designated or will designate for occupancy by 
        elderly and disabled families in accordance with section 7.
            ``(10) Conversion of public housing.--With respect to 
        public housing owned or operated by a public housing agency--
                    ``(A) a description of any building or buildings 
                that the public housing agency is required to convert 
                to tenant-based assistance under section 31 or that the 
                public housing agency voluntarily converts under 
                section 22;
                    ``(B) an analysis of those buildings required under 
                that section for conversion; and
                    ``(C) a statement of the amount of grant amounts to 
                be used for rental assistance or other housing 
                assistance.
            ``(11) Homeownership activities.--A description of any 
        homeownership programs of the public housing agency and the 
        requirements for participation in and the assistance available 
        under those programs.
            ``(12) Economic self-sufficiency and coordination with 
        welfare and other appropriate agencies.--A description of--
                    ``(A) any programs relating to services and 
                amenities provided or offered to assisted families;
                    ``(B) any policies or programs of the public 
                housing agency for the enhancement of the economic and 
                social self-sufficiency of assisted families; and
                    ``(C) how the public housing agency will comply 
                with the requirements of subsections (c) and (d) of 
                section 12.
            ``(13) Safety and crime prevention.--A description of 
        policies established by the public housing agency that increase 
        or maintain the safety of public housing residents.
            ``(14) Certification.--An annual certification by the 
        public housing agency that the public housing agency 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 the goal of fair housing.
            ``(15) Annual audit.--The results of the most recent fiscal 
        year audit of the public housing agency.
    ``(e) Resident Advisory Board.--
            ``(1) In general.--Except as provided in paragraph (3), 
        each public housing agency shall establish 1 or more resident 
        advisory boards in accordance with this subsection, the 
        membership of which shall adequately reflect and represent the 
        residents of the dwelling units owned, operated, or assisted by 
        the public housing agency.
            ``(2) Purpose.--Each resident advisory board established 
        under this subsection shall assist and make recommendations 
        regarding the development of the public housing agency plan. 
        The public housing agency shall consider the recommendations of 
        the resident advisory boards in preparing the final public 
        housing agency plan, and shall include a copy of those 
        recommendations and a description of the manner in which those 
        recommendations were addressed in the public housing agency 
        plan submitted to the Secretary under this section.
            ``(3) Waiver.--The Secretary may waive the requirements of 
        this subsection with respect to the establishment of resident 
        advisory boards, if the public housing agency demonstrates to 
        the satisfaction of the Secretary that there exists a resident 
        council or other resident organization of the public housing 
        agency that--
                    ``(A) adequately represents the interests of the 
                residents of the public housing agency; and
                    ``(B) has the ability to perform the functions 
                described in paragraph (2).
    ``(f) Publication of Notice.--
            ``(1) In general.--Not later than 45 days before the date 
        of a hearing conducted under paragraph (2) by the governing 
        body of a public housing agency, the public housing agency 
        shall publish a notice informing the public that--
                    ``(A) the proposed public housing agency plan and 
                all relevant information is available for inspection at 
                the principal office of the public housing agency 
                during normal business hours; and
                    ``(B) a public hearing will be conducted to discuss 
                the public housing agency plan and to invite public 
                comment regarding that plan.
            ``(2) Public hearing.--Each public housing agency shall, at 
        a location that is convenient to residents, conduct a public 
        hearing, as provided in the notice published under paragraph 
        (1).
            ``(3) Adoption of plan.--After conducting the public 
        hearing under paragraph (2), and after considering all public 
        comments received and, in consultation with the resident 
        advisory board, making any appropriate changes in the public 
        housing agency plan, the public housing agency shall--
                    ``(A) adopt the public housing agency plan; and
                    ``(B) submit the plan to the Secretary in 
                accordance with this section.
    ``(g) Amendments and Modifications to Plans.--
            ``(1) In general.--Except as provided in paragraph (2), 
        nothing in this section shall preclude a public housing agency, 
        after submitting a plan to the Secretary in accordance with 
        this section, from amending or modifying any policy, rule, 
        regulation, or plan of the public housing agency, except that 
        no such significant amendment or modification may be adopted or 
        implemented--
                    ``(A) other than at a duly called meeting of 
                commissioners (or other comparable governing body) of 
                the public housing agency that is open to the public; 
                and
                    ``(B) until notification of the amendment or 
                modification is provided to the Secretary and approved 
                in accordance with subsection (h)(2).
            ``(2) Consistency.--Each significant amendment or 
        modification to a public housing agency plan submitted to the 
        Secretary under this section shall--
                    ``(A) meet the consistency requirement of 
                subsection (c)(2);
                    ``(B) be subject to the notice and public hearing 
                requirements of subsection (f); and
                    ``(C) be subject to approval by the Secretary in 
                accordance with subsection (h)(2).
    ``(h) Timing of Plans.--
            ``(1) In general.--
                    ``(A) Initial submission.--Each public housing 
                agency shall submit the initial plan required by this 
                section, and any amendment or modification to the 
                initial plan, to the Secretary at such time and in such 
                form as the Secretary shall require.
                    ``(B) Annual submission.--Not later than 60 days 
                prior to the start of the fiscal year of the public 
                housing agency, after initial submission of the plan 
                required by this section in accordance with 
                subparagraph (A), each public housing agency shall 
                annually submit to the Secretary a plan update, 
                including any amendments or modifications to the public 
                housing agency plan.
            ``(2) Review and approval.--
                    ``(A) Review.--Subject to subparagraph (B), after 
                submission of the public housing agency plan or any 
                amendment or modification to the plan to the Secretary, 
                to the extent that the Secretary considers such action 
                to be necessary to make determinations under this 
                subparagraph, the Secretary shall review the public 
                housing agency plan (including any amendments or 
                modifications thereto) to determine whether the 
                contents of the plan--
                            ``(i) set forth the information required by 
                        this section to be contained in a public 
                        housing agency plan;
                            ``(ii) are consistent with information and 
                        data available to the Secretary, including the 
                        approved comprehensive housing affordability 
                        strategy under title I of the Cranston-Gonzalez 
                        National Affordable Housing Act of the 
                        jurisdiction in which the public housing agency 
                        is located; and
                            ``(iii) are prohibited by or inconsistent 
                        with any provision of this title or other 
                        applicable law.
                    ``(B) Exception.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), the Secretary may, by regulation, 
                        provide that 1 or more elements of a public 
                        housing agency plan shall be reviewed only if 
                        the element is challenged.
                            ``(ii) Inapplicability to certain 
                        provisions.--Notwithstanding clause (i), the 
                        Secretary shall review the information 
                        submitted under paragraphs (7) and (14) of 
                        subsection (d).
                    ``(C) Approval.--
                            ``(i) In general.--Except as provided in 
                        paragraph (3)(B), not later than 60 days after 
                        the date on which a public housing agency plan 
                        is submitted in accordance with this section 
                        (or, with respect to the initial provision of 
                        notice under this subparagraph, not later than 
                        75 days after the date on which the initial 
                        public housing agency plan is submitted in 
                        accordance with this section), the Secretary 
                        shall provide written notice to the public 
                        housing agency if the plan has been 
                        disapproved, stating with specificity the 
                        reasons for the disapproval.
                            ``(ii) Failure to provide notice of 
                        disapproval.--If the Secretary does not provide 
                        notice of disapproval under clause (i) before 
                        the expiration of the period described in 
                        clause (i), the public housing agency plan 
                        shall be deemed to be approved by the 
                        Secretary.
                    ``(D) Public availability.--The public housing 
                agency shall make the approved plan available to the 
                general public.
            ``(3) Secretarial discretion.--
                    ``(A) In general.--The Secretary may require such 
                additional information as the Secretary determines to 
                be appropriate 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).
                    ``(B) Troubled agencies.--The Secretary shall 
                provide explicit written approval or disapproval, in a 
                timely manner, for a public housing agency plan 
                submitted by any public housing agency designated by 
                the Secretary as a troubled public housing agency under 
                section 6(j).
                    ``(C) Advisory board consultation enforcement.--
                Following a written request by the resident advisory 
                board that documents a failure on the part of the 
                public housing agency to provide adequate notice and 
                opportunity for comment under subsection (f), and upon 
                a Secretarial finding of good cause within the time 
                period provided for in paragraph (2)(B) of this 
                subsection, the Secretary may require the public 
                housing agency to adequately remedy that failure prior 
                to a final approval of the public housing agency plan 
                under this section.
            ``(4) Streamlined plan.--In carrying out this section, the 
        Secretary may establish a streamlined public housing agency 
        plan for--
                    ``(A) public housing agencies that are determined 
                by the Secretary to be high performing public housing 
                agencies;
                    ``(B) public housing agencies with less than 250 
                public housing units that have not been designated as 
                troubled under section 6(j); and
                    ``(C) public housing agencies that only administer 
                tenant-based assistance and that do not own or operate 
                public housing.
            ``(5) Compliance with plan.--
                    ``(A) In general.--In providing assistance under 
                this title, a public housing agency shall comply with 
                the rules, standards, and policies established in the 
                public housing agency plan of the public housing agency 
                approved under this section.
                    ``(B) Investigation and enforcement.--In carrying 
                out this title, the Secretary shall--
                            ``(i) provide an appropriate response to 
                        any complaint concerning noncompliance by a 
                        public housing agency with the applicable 
                        public housing agency plan; and
                            ``(ii) if the Secretary determines, based 
                        on a finding of the Secretary or other 
                        information available to the Secretary, that a 
                        public housing agency is not complying with the 
                        applicable public housing agency plan, take 
                        such actions as the Secretary determines to be 
                        appropriate to ensure such compliance.''.
    (b) Implementation.--
            (1) Interim rule.--Not later than 120 days after the date 
        of enactment of this Act, the Secretary shall issue an interim 
        rule to require the submission of an interim public housing 
        agency plan by each public housing agency, as required by 
        section 5A of the United States Housing Act of 1937 (as added 
        by subsection (a) of this section).
            (2) Final regulations.--Not later than 1 year after the 
        date of enactment of this Act, in accordance with the 
        negotiated rulemaking procedures set forth in subchapter III of 
        chapter 5 of title 5, United States Code, the Secretary shall 
        promulgate final regulations implementing section 5A of the 
        United States Housing Act of 1937 (as added by subsection (a) 
        of this section).
    (c) Audit and Review; Report.--
            (1) Audit and review.--Not later than 1 year after the 
        effective date of final regulations promulgated under 
        subsection (b)(2), in order to determine the degree of 
        compliance with public housing agency plans approved under 
        section 5A of the United States Housing Act of 1937 (as added 
        by subsection (a) of this section) by public housing agencies, 
        the Comptroller General of the United States shall conduct--
                    (A) a review of a representative sample of the 
                public housing agency plans approved under such section 
                5A before that date; and
                    (B) an audit and review of the public housing 
                agencies submitting those plans.
            (2) Report.--Not later than 2 years after the date on which 
        public housing agency plans are initially required to be 
        submitted under section 5A of the United States Housing Act of 
        1937 (as added by subsection (a) of this section) the 
        Comptroller General of the United States shall submit to 
        Congress a report, which shall include--
                    (A) a description of the results of each audit and 
                review under paragraph (1); and
                    (B) any recommendations for increasing compliance 
                by public housing agencies with their public housing 
                agency plans approved under section 5A of the United 
                States Housing Act of 1937 (as added by subsection (a) 
                of this section).

SEC. 107. CONTRACT PROVISIONS AND REQUIREMENTS.

    (a) Conditions.--Section 6(a) of the United States Housing Act of 
1937 (42 U.S.C. 1437d(a)) is amended--
            (1) in the first sentence, by inserting ``, in a manner 
        consistent with the public housing agency plan'' before the 
        period; and
            (2) by striking the second sentence.
    (b) Repeal of Federal Preferences; Revision of Maximum Income 
Limits; Certification of Compliance With Requirements; Notification of 
Eligibility.--Section 6(c) of the United States Housing Act of 1937 (42 
U.S.C. 1437d(c)) is amended to read as follows:
    ``(c) Accounting System for Rental Collections and Costs.--
            ``(1) Establishment.--Each public housing agency that 
        receives grant amounts under this title shall establish and 
        maintain a system of accounting for rental collections and 
        costs (including administrative, utility, maintenance, repair, 
        and other operating costs) for each project.
            ``(2) Access to records.--Each public housing agency shall 
        make available to the general public the information required 
        pursuant to paragraph (1) regarding collections and costs.
            ``(3) Exemption.--The Secretary may permit authorities 
        owning or operating fewer than 500 dwelling units to comply 
        with the requirements of this subsection by accounting on an 
        agency-wide basis.''.
    (c) Excess Funds.--Section 6(e) of the United States Housing Act of 
1937 (42 U.S.C. 1437d(e)) is amended to read as follows:
    ``(e) [Reserved.]''.
    (d) Performance Indicators for Public Housing Agencies.--Section 
6(j) of the United States Housing Act of 1937 (42 U.S.C. 1437d(j)) is 
amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (B)--
                            (i) by striking ``obligated'' and inserting 
                        ``provided''; and
                            (ii) by striking ``unexpended'' and 
                        inserting ``unobligated by the public housing 
                        agency'';
                    (B) in subparagraph (D), by striking ``energy'' and 
                inserting ``utility'';
                    (C) by redesignating subparagraph (H) as 
                subparagraph (L); and
                    (D) by inserting after subparagraph (G) the 
                following:
                    ``(H) The extent to which the public housing 
                agency--
                            ``(i) coordinates, promotes, or provides 
                        effective programs and activities to promote 
                        the economic self-sufficiency of public housing 
                        residents; and
                            ``(ii) provides public housing residents 
                        with opportunities for involvement in the 
                        administration of the public housing.
                    ``(I) The extent to which the public housing agency 
                implements--
                            ``(i) effective screening and eviction 
                        policies; and
                            ``(ii) other anticrime strategies;
                including the extent to which the public housing agency 
                coordinates with local government officials and 
                residents in the development and implementation of 
                these strategies.
                    ``(J) The extent to which the public housing agency 
                is providing acceptable basic housing conditions.
                    ``(K) The extent to which the public housing agency 
                successfully meets the goals and carries out the 
                activities and programs of the public housing agency 
                plan under section 5(A).'';
            (2) in paragraph (2)(A)(i), by inserting after the first 
        sentence the following: ``The Secretary may use a simplified 
        set of indicators for public housing agencies with less than 
        250 public housing units.''; and
            (3) by adding at the end the following:
            ``(5)(A) To the extent that the Secretary determines such 
        action to be necessary in order to ensure the accuracy of any 
        certification made under this section, the Secretary shall 
        require an independent auditor to review documentation or other 
        information maintained by a public housing agency or resident 
        management corporation pursuant to this section to substantiate 
        each certification submitted by the agency or corporation 
        relating to the performance of that agency or corporation.
            ``(B) The Secretary may withhold, from assistance otherwise 
        payable to the agency or corporation under section 9, amounts 
        sufficient to pay for the reasonable costs of any review under 
        this paragraph.''.
    (e) Drug-Related and Criminal Activity.--Section 6(k) of the United 
States Housing Act of 1937 (42 U.S.C. 1437d(k)) is amended, in the 
matter following paragraph (6)--
            (1) by striking ``drug-related'' and inserting ``violent or 
        drug-related''; and
            (2) by inserting ``or any activity resulting in a felony 
        conviction,'' after ``on or off such premises,''.
    (f) Leases.--Section 6(l) of the United States Housing Act of 1937 
(42 U.S.C. 1437d(l)) is amended--
            (1) in paragraph (3), by striking ``not be less than'' and 
        all that follows through the end of paragraph (3) and 
        inserting: ``be the period of time required under State or 
        local law, except that the public housing agency may provide 
        such notice within a reasonable time which does not exceed the 
        lesser of--
                    ``(A) the period provided under applicable State or 
                local law; or
                    ``(B) 30 days--
                            ``(i) if the health or safety of other 
                        tenants, public housing agency employees, or 
                        persons residing in the immediate vicinity of 
                        the premises is threatened; or
                            ``(ii) in the event of any drug-related or 
                        violent criminal activity or any felony 
                        conviction;'';
            (2) in paragraph (6), by striking ``and'' at the end;
            (3) by redesignating paragraph (7) as paragraph (8); and
            (4) by inserting after paragraph (6) following:
            ``(7) provide that any occupancy in violation of section 
        7(e)(1) or the furnishing of any false or misleading 
        information pursuant to section 7(e)(2) shall be cause for 
        termination of tenancy; and''.
    (g) Public Housing Assistance to Foster Care Children.--Section 
6(o) of the United States Housing Act of 1937 (42 U.S.C. 1437d(o)) is 
amended by striking ``Subject'' and all that follows through ``, in'' 
and inserting ``In''.
    (h) Preference for Areas With Inadequate Supply of Very Low-Income 
Housing.--Section 6(p) of the United States Housing Act of 1937 (42 
U.S.C. 1437d(p)) is amended to read as follows:
    ``(p) [Reserved.]''.
    (i) Transition Rule Relating to Preferences.--During the period 
beginning on the date of enactment of this Act and ending on the date 
on which the initial public housing agency plan of a public housing 
agency is approved under section 5A of the United States Housing Act of 
1937 (as added by this Act) the public housing agency may establish 
local preferences for making available public housing under the United 
States Housing Act of 1937 and for providing tenant-based assistance 
under section 8 of that Act.

SEC. 108. EXPANSION OF POWERS FOR DEALING WITH PUBLIC HOUSING AGENCIES 
              IN SUBSTANTIAL DEFAULT.

    (a) In General.--Section 6(j)(3) of the United States Housing Act 
of 1937 (42 U.S.C. 1437d) is amended--
            (1) in subparagraph (A)--
                    (A) by striking clause (i) and inserting the 
                following:
                            ``(i) solicit competitive proposals from 
                        other public housing agencies and private 
                        housing management agents that, 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 striking clause (iv) and inserting the 
                following:
                            ``(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 after clause (iii) the following:
                            ``(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 
        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)(I) 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 Reform and 
                Responsibility Act of 1997, the Secretary shall--
                            ``(aa) 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
                            ``(bb) in the case of a troubled public 
                        housing agency with fewer than 1,250 units, 
                        either petition for the appointment of a 
                        receiver pursuant to subparagraph (A)(ii), or 
                        take possession of the public housing agency 
                        (including all or part of any project or 
                        program of the agency) pursuant to subparagraph 
                        (A)(iv) and 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).
                    ``(II) During the period between the date on which 
                a petition is filed under item (aa) and the date on 
                which a receiver assumes responsibility for the 
                management of the public housing agency under that 
                item, the Secretary may take possession of the public 
                housing agency (including all or part of any project or 
                program of the agency) pursuant to subparagraph (A)(iv) 
                and may 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).
                    ``(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 
                        1 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 
                        1 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), 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 1 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) Applicability.--The provisions of, and duties and authorities 
conferred or confirmed by, the amendments made by subsection (a) shall 
apply with respect to any action taken before, on, or after the 
effective date of this Act and shall apply to any receiver 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 ``(except as provided in section 6(j)(3))'' after ``6''.

SEC. 109. PUBLIC HOUSING SITE-BASED WAITING LISTS.

    Section 6 of the United States Housing Act of 1937 is amended by 
adding at the end the following:
    ``(s) Site-Based Waiting Lists.--
            ``(1) In general.--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 under which applicants may apply directly at or 
        otherwise designate the development or developments in which 
        they seek to reside.
            ``(2) Civil rights.--Any procedures established under 
        paragraph (1) shall comply with title VI of the Civil Rights 
        Act of 1964, the Fair Housing Act, and other applicable civil 
        rights laws.
            ``(3) Notice required.--Any system described in paragraph 
        (1) shall provide for the full disclosure by the public housing 
        agency to each applicant of any option available to the 
        applicant in the selection of the development in which to 
        reside.''.

SEC. 110. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.

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

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

    ``(a) In General.--Except for assistance provided under section 8 
of this Act or as otherwise provided in the Public Housing Reform and 
Responsibility Act of 1997, all programs under which assistance is 
provided for public housing under this Act on the day before October 1, 
1998, shall be merged, as appropriate, into either--
            ``(1) the Capital Fund established under subsection (c); or
            ``(2) the Operating Fund established under subsection (d).
    ``(b) Use of Existing Funds.--With the exception of funds made 
available pursuant to section 8 or section 20(f) and funds made 
available for the urban revitalization demonstration program authorized 
under the Department of Veterans Affairs and Housing and Urban 
Development, and Independent Agencies Appropriations Acts--
            ``(1) funds made available to the Secretary for public 
        housing purposes that have not been obligated by the Secretary 
        to a public housing agency as of October 1, 1998, shall be made 
        available, for the period originally provided in law, for use 
        in either the Capital Fund or the Operating Fund, as 
        appropriate; and
            ``(2) funds made available to the Secretary for public 
        housing purposes that have been obligated by the Secretary to a 
        public housing agency but that, as of October 1, 1998, have not 
        been obligated by the public housing agency, may be made 
        available by that public housing agency, for the period 
        originally provided in law, for use in either the Capital Fund 
        or the Operating Fund, as appropriate.
    ``(c) Capital Fund.--
            ``(1) In general.--The Secretary shall establish a Capital 
        Fund for the purpose of making assistance available to public 
        housing agencies to carry out capital and management 
        activities, including--
                    ``(A) the development and modernization of public 
                housing projects, including the redesign, 
                reconstruction, and reconfiguration of public housing 
                sites and buildings and the development of mixed-
                finance projects;
                    ``(B) vacancy reduction;
                    ``(C) addressing deferred maintenance needs and the 
                replacement of dwelling equipment;
                    ``(D) planned code compliance;
                    ``(E) management improvements;
                    ``(F) demolition and replacement;
                    ``(G) resident relocation;
                    ``(H) capital expenditures to facilitate programs 
                to improve the empowerment and economic self-
                sufficiency of public housing residents and to improve 
                resident participation;
                    ``(I) capital expenditures to improve the security 
                and safety of residents; and
                    ``(J) homeownership activities.
            ``(2) Establishment of capital fund formula.--The Secretary 
        shall develop a formula for providing assistance under the 
        Capital Fund, which may take into account--
                    ``(A) the number of public housing dwelling units 
                owned or operated by the public housing agency and the 
                percentage of those units that are occupied by very 
                low-income families;
                    ``(B) if applicable, the reduction in the number of 
                public housing units owned or operated by the public 
                housing agency as a result of any conversion to a 
                system of tenant-based assistance;
                    ``(C) the costs to the public housing agency of 
                meeting the rehabilitation and modernization needs, and 
                meeting the reconstruction, development, replacement 
                housing, and demolition needs of public housing 
                dwelling units owned and operated by the public housing 
                agency;
                    ``(D) the degree of household poverty served by the 
                public housing agency;
                    ``(E) the costs to the public housing agency of 
                providing a safe and secure environment in public 
                housing units owned and operated by the public housing 
                agency;
                    ``(F) the ability of the public housing agency to 
                effectively administer the Capital Fund distribution of 
                the public housing agency; and
                    ``(G) any other factors that the Secretary 
                determines to be appropriate.
            ``(3) Condition on use of the capital fund for development 
        and modernization.--
                    ``(A) Development.--Any public housing developed 
                using amounts provided under this subsection shall be 
                operated for a 40-year period under the terms and 
                conditions applicable to public housing during that 
                period, beginning on the date on which the development 
                (or stage of development) becomes available for 
                occupancy.
                    ``(B) Modernization.--Any public housing, or 
                portion thereof, that is modernized using amounts 
                provided under this subsection shall be maintained and 
                operated for a 20-year period under the terms and 
                conditions applicable to public housing during that 
                period, beginning on the latest date on which 
                modernization is completed.
                    ``(C) Applicability of latest expiration date.--
                Public housing subject to this paragraph or to any 
                other provision of law mandating the operation of the 
                housing as public housing or under the terms and 
                conditions applicable to public housing for a specified 
                length of time shall be maintained and operated as 
                required until the latest expiration date.
    ``(d) Operating Fund.--
            ``(1) In general.--The Secretary shall establish an 
        Operating Fund for the purpose of making assistance available 
        to public housing agencies for the operation and management of 
        public housing, including--
                    ``(A) procedures and systems to maintain and ensure 
                the efficient management and operation of public 
                housing units (including amounts sufficient to pay for 
                the reasonable costs of review by an independent 
                auditor of the documentation or other information 
                maintained pursuant to section 6(j)(5) by a public 
                housing agency or resident management corporation to 
                substantiate the performance of that agency or 
                corporation);
                    ``(B) activities to ensure a program of routine 
                preventative maintenance;
                    ``(C) anticrime and antidrug activities, including 
                the costs of providing adequate security for public 
                housing residents;
                    ``(D) activities related to the provision of 
                services, including service coordinators for elderly 
                persons or persons with disabilities;
                    ``(E) activities to provide for management and 
                participation in the management and policymaking of 
                public housing by public housing residents;
                    ``(F) the costs associated with the operation and 
                management of mixed-finance projects, to the extent 
                appropriate (including the funding of an operating 
                reserve to ensure affordability for low-income and very 
                low-income families in lieu of the availability of 
                operating funds for public housing units in a mixed-
                finance project);
                    ``(G) the reasonable costs of insurance;
                    ``(H) the reasonable energy costs associated with 
                public housing units, with an emphasis on energy 
                conservation; and
                    ``(I) the costs of administering a public housing 
                work program under section 12, including the costs of 
                any related insurance needs.
            ``(2) Establishment of operating fund formula.--The 
        Secretary shall establish a formula for providing assistance 
        under the Operating Fund, which may take into account--
                    ``(A) 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;
                    ``(B) 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 units as a result of 
                any conversion to a system of tenant-based assistance;
                    ``(C) the degree of household poverty served by a 
                public housing agency;
                    ``(D) 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 residents;
                    ``(E) 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;
                    ``(F) the costs of the public housing agency 
                associated with anticrime and antidrug activities, 
                including the costs of providing adequate security for 
                public housing residents;
                    ``(G) the ability of the public housing agency to 
                effectively administer the Operating Fund distribution 
                of the public housing agency; and
                    ``(H) any other factors that the Secretary 
                determines to be appropriate.
    ``(e) Limitations on Use of Funds.--
            ``(1) In general.--Each public housing agency may use not 
        more than 20 percent of the Capital Fund distribution of the 
        public housing agency for activities that are eligible for 
        assistance under the Operating Fund under subsection (d), if 
        the public housing agency plan provides for such use.
            ``(2) New construction.--
                    ``(A) In general.--A public housing agency may not 
                use any of the Capital Fund or Operating Fund 
                distributions of the public housing agency for the 
                purpose of constructing any public housing unit, if 
                such construction would result in a net increase in the 
                number of public housing units owned or operated by the 
                public housing agency on the date of enactment of the 
                Public Housing Reform and Responsibility Act of 1997, 
                including any public housing units demolished as part 
                of any revitalization effort.
                    ``(B) Exception.--
                            ``(i) In general.--Notwithstanding 
                        subparagraph (A), a public housing agency may 
                        use the Capital Fund or Operating Fund 
                        distributions of the public housing agency for 
                        the construction and operation of housing units 
                        that are available and affordable to low-income 
                        families in excess of the limitations on new 
                        construction set forth in subparagraph (A), 
                        except that the formulas established under 
                        subsections (c)(2) and (d)(2) shall not provide 
                        additional funding for the specific purpose of 
                        allowing construction and operation of housing 
                        in excess of those limitations.
                            ``(ii) Exception.--Notwithstanding clause 
                        (i), subject to reasonable limitations set by 
                        the Secretary, the formulae established under 
                        subsections (c)(2) and (d)(2) may provide 
                        additional funding for the operation and 
                        modernization costs (but not the initial 
                        development costs) of housing in excess of 
                        amounts otherwise permitted under this 
                        paragraph if--
                                    ``(I) those units are part of a 
                                mixed-finance project or otherwise 
                                leverage significant additional private 
                                or public investment; and
                                    ``(II) the estimated cost of the 
                                useful life of the project is less than 
                                the estimated cost of providing tenant-
                                based assistance under section 8(o) for 
                                the same period of time.
    ``(f) Direct Provision of Operating and Capital Assistance.--
            ``(1) In general.--The Secretary shall directly provide 
        operating and capital assistance under this section to a 
        resident management corporation managing a public housing 
        development pursuant to a contract under this section, but only 
        if--
                    ``(A) the resident management corporation petitions 
                the Secretary for the release of the funds
                    ``(B) the contract provides for the resident 
                management corporation to assume the primary management 
                responsibilities of the public housing agency; and
                    ``(C) the Secretary determines that the corporation 
                has the capability to effectively discharge such 
                responsibilities.
            ``(2) Use of assistance.--Any operating and capital 
        assistance provided to a resident management corporation 
        pursuant to this subsection shall be used for purposes of 
        operating the public housing developments of the agency and 
        performing such other eligible activities with respect to 
        public housing as may be provided under the contract.
            ``(3) Responsibility of public housing agency.--If the 
        Secretary provides direct funding to a resident management 
        corporation under this subsection, the public housing agency 
        shall not be responsible for the actions of the resident 
        management corporation.
    ``(g) Technical Assistance.--To the extent approved in advance in 
appropriations Acts, the Secretary may make grants or enter into 
contracts in accordance with this subsection for purposes of providing, 
either directly or indirectly--
            ``(1) technical assistance to public housing agencies, 
        resident councils, resident organizations, and resident 
        management corporations, including assistance relating to 
        monitoring and inspections;
            ``(2) training for public housing agency employees and 
        residents;
            ``(3) data collection and analysis; and
            ``(4) training, technical assistance, and education to 
        assist public housing agencies that are--
                    ``(A) at risk of being designated as troubled under 
                section 6(j) from being so designated; and
                    ``(B) designated as troubled under section 6(j) in 
                achieving the removal of that designation.
    ``(h) Emergency Reserve.--
            ``(1) In general.--
                    ``(A) Set-aside.--In each fiscal year, the 
                Secretary shall set aside not more than 2 percent of 
                the amount made available for use under the capital 
                fund to carry out this section for that fiscal year for 
                use in accordance with this subsection.
                    ``(B) Use of funds.--Amounts set aside under this 
                paragraph shall be available to the Secretary for use 
                in connection with--
                            ``(i) emergencies and other disasters;
                            ``(ii) housing needs resulting from any 
                        settlement of litigation; and
                            ``(iii) the Operation Safe Home program, 
                        except that amounts set aside under this clause 
                        may not exceed $10,000,000 in any fiscal year.
            ``(2) Limitation.--With respect to any fiscal year, the 
        Secretary may carry over not more than a total of $25,000,000 
        in unobligated amounts set aside under this subsection for use 
        in connection with the activities described in paragraph (1)(B) 
        during the succeeding fiscal year.
            ``(3) Reports.--The Secretary and the Office of Inspector 
        General shall report to the Committee on Banking, Housing, and 
        Urban Affairs of the Senate and the Committee on Banking and 
        Financial Services of the House of Representatives regarding 
        the feasibility of transferring the authority to administer the 
        program functions implemented to reduce violent crime in public 
        housing under Operation Safe Home to the Office of Public and 
        Indian Housing or to the Department of Justice.
            ``(4) Publication.--The Secretary shall publish the use of 
        any amounts allocated under this subsection relating to 
        emergencies (other disasters and housing needs resulting from 
        any settlement of litigation) in the Federal Register.
            ``(5) Eligible uses.--In carrying out this subsection, the 
        Secretary may use amounts set aside under this subsection for--
                    ``(A) any eligible use under the Operating Fund or 
                the Capital Fund established by this section; or
                    ``(B) the provision of tenant-based assistance in 
                accordance with section 8.
    ``(i) Penalty for Slow Expenditure of Capital Funds.--
            ``(1) In general.--
                    ``(A) Time period.--Except as provided in paragraph 
                (2), and subject to subparagraph (B) of this paragraph, 
                a public housing agency shall obligate any assistance 
                received under this section not later than 24 months 
                after, as applicable--
                            ``(i) the date on which the funds become 
                        available to the agency for obligation in the 
                        case of modernization; or
                            ``(ii) the date on which the agency 
                        accumulates adequate funds to undertake 
                        comprehensive modernization, substantial 
                        rehabilitation, or new construction of units.
                    ``(B) Extension of time period.--The Secretary--
                            ``(i) may, extend the time period described 
                        in subparagraph (A) , for such period of time 
                        as the Secretary determines to be necessary, if 
                        the Secretary determines that the failure of 
                        the public housing agency to obligate 
                        assistance in a timely manner is attributable 
                        to--
                                    ``(I) litigation;
                                    ``(II) obtaining approvals of a 
                                Federal, State, or local government;
                                    ``(III) complying with 
                                environmental assessment and abatement 
                                requirements;
                                    ``(IV) relocating residents;
                                    ``(V) an event beyond the control 
                                of the public housing agency; or
                                    ``(VI) any other reason established 
                                by the Secretary by notice published in 
                                the Federal Register;
                            ``(ii) shall disregard the requirements of 
                        subparagraph (A) with respect to any 
                        unobligated amounts made available to a public 
                        housing agency, to the extent that the total of 
                        those amounts does not exceed 10 percent of the 
                        original amount made available to the public 
                        housing agency; and
                            ``(iii) may, with the prior approval of the 
                        Secretary, extend the period of time described 
                        in subparagraph (A), for an additional period 
                        not to exceed 12 months, based on--
                                    ``(I) the size of the public 
                                housing agency;
                                    ``(II) the complexity of capital 
                                program of the public housing agency;
                                    ``(III) any limitation on the 
                                ability of the public housing agency to 
                                obligate the Capital Fund distributions 
                                of the public housing agency in a 
                                timely manner as a result of State or 
                                local law; or
                                    ``(IV) such other factors as the 
                                Secretary determines to be relevant.
                    ``(C) Effect of failure to comply.--
                            ``(i) In general.--A public housing agency 
                        shall not be awarded assistance under this 
                        section for any month during any fiscal year in 
                        which the public housing agency has funds 
                        unobligated in violation of subparagraph (A) or 
                        (B).
                            ``(ii) Effect of failure to comply.--During 
                        any fiscal year described in clause (i), the 
                        Secretary shall withhold all assistance that 
                        would otherwise be provided to the public 
                        housing agency. If the public housing agency 
                        cures its default during the year, it shall be 
                        provided with the share attributable to the 
                        months remaining in the year.
                            ``(iii) Redistribution.--The total amount 
                        of any funds not provided public housing 
                        agencies by operation of this subparagraph 
                        shall be distributed to high-performing 
                        agencies, as determined under section 6(j).
            ``(2) Exception.--
                    ``(A) In general.--Subject to subparagraph (B), if 
                the Secretary has consented, before the date of 
                enactment of the Public Housing Reform and 
                Responsibility Act of 1997, to an obligation period for 
                any agency longer than provided under paragraph (1)(A), 
                a public housing agency that obligates its funds before 
                the expiration of that period shall not be considered 
                to be in violation of paragraph (1)(A).
                    ``(B) Fiscal year 1995.--Notwithstanding 
                subparagraph (A)--
                            ``(i) any funds appropriated to a public 
                        housing agency for fiscal year 1995, or for any 
                        preceding fiscal year, shall be fully obligated 
                        by the public housing agency not later than 
                        September 30, 1998; and
                            ``(ii) any funds appropriated to a public 
                        housing agency for fiscal year 1996 or 1997 
                        shall be fully obligated by the public housing 
                        agency not later than September 30, 1999.
            ``(3) Expenditure of amounts.--
                    ``(A) In general.--A public housing agency shall 
                spend any assistance received under this section not 
                later than 4 years (plus the period of any extension 
                approved by the Secretary under paragraph (1)(B)) after 
                the date on which funds become available to the agency 
                for obligation.
                    ``(B) Enforcement.--The Secretary shall enforce the 
                requirement of subparagraph (A) through default 
                remedies up to and including withdrawal of the funding.
            ``(4) Right of recapture.--Any obligation entered into by a 
        public housing agency shall be subject to the right of the 
        Secretary to recapture the obligated amounts for violation by 
        the public housing agency of the requirements of this 
        subsection.''.
    (b) Implementation; Effective Date; Transition Period.--
            (1) Implementation.--Not later than 1 year after the date 
        of enactment of this Act, in accordance with the negotiated 
        rulemaking procedures set forth in subchapter III of chapter 5 
        of title 5, United States Code, the Secretary shall establish 
        the formulas described in subsections (c)(3) and (d)(2) of 
        section 9 of the United States Housing Act of 1937, as amended 
        by this section.
            (2) Effective date.--The formulas established under 
        paragraph (1) shall be effective only with respect to amounts 
        made available under section 9 of the United States Housing Act 
        of 1937, as amended by this section, in fiscal year 1999 or in 
        any succeeding fiscal year.
            (3) Transition period.--
                    (A) In general.--Subject to subparagraph (B), prior 
                to the effective date described in paragraph (2), the 
                Secretary shall provide that each public housing agency 
                shall receive funding under sections 9 and 14 of the 
                United States Housing Act of 1937, as those sections 
                existed on the day before the date of enactment of this 
                Act.
                    (B) Qualification.--If a public housing agency 
                establishes a rental amount that is less than 30 
                percent of the monthly adjusted income of the family 
                under section 3(a)(1)(A) of the United States Housing 
                Act of 1937 (as amended by section 103(a) of this Act), 
                or a rental amount that is based on an adjustment to 
                income under section 3(b)(5)(E) (as amended by section 
                104(a)(2) of this Act), the Secretary shall not take 
                into account any reduction of or increase in the per 
                unit dwelling rental income of the public housing 
                agency resulting from the use of that rental amount in 
                calculating the contributions for the public housing 
                agency for the operation of the public housing under 
                section 9 of the United States Housing Act of 1937 (as 
                in existence on the day before the date of enactment of 
                this Act).

SEC. 111. COMMUNITY SERVICE AND SELF-SUFFICIENCY.

    Section 12 of the United States Housing Act of 1937 (42 U.S.C. 
1437j) is amended by adding at the end the following:
    ``(c) Community Service and Self-Sufficiency Requirement.--
            ``(1) Minimum requirement.--Notwithstanding any other 
        provision of law, each adult resident of a public housing 
        project shall--
                    ``(A) contribute not less than 8 hours per month of 
                community service (not to include any political 
                activity) within the community in which that adult 
                resides; or
                    ``(B) participate in a self-sufficiency program (as 
                that term is defined in subsection (d)(1)) for not less 
                than 8 hours per month.
            ``(2) Inclusion in plan.--Each public housing agency shall 
        include in the public housing agency plan a detailed 
        description of the manner in which the public housing agency 
        intends to implement and administer paragraph (1).
            ``(3) Exemptions.--The Secretary may provide an exemption 
        from paragraph (1) for any adult who--
                    ``(A) has attained age 62;
                    ``(B) is a blind or disabled individual, as defined 
                under section 216(i)(1) or 1614 of the Social Security 
                Act (42 U.S.C. 416(i)(1); 1382c) and who is unable to 
                comply with this section, or a primary caretaker of 
                that individual;
                    ``(C) is engaged in a work activity (as that term 
                is defined in subsection (d)(1)(C)); or
                    ``(D) meets the requirements for being exempted 
                from having to engage in a work activity under the 
                State program funded under part A of title IV of the 
                Social Security Act (42 U.S.C. 601 et seq.) or under 
                any other welfare program of the State in which the 
                public housing agency is located.
            ``(4) Geographic location; prohibition against replacement 
        of employees.--
                    ``(A) Geographic location.--The requirement 
                described in paragraph (1) may include community 
                service or participation in a self-sufficiency program 
                performed at a location not owned by the public housing 
                agency.
                    ``(B) Prohibition against replacement of 
                employees.--In carrying out this subsection, a public 
                housing agency may not--
                            ``(i) substitute community service or 
                        participation in a self-sufficiency program, as 
                        described in paragraph (1), for work performed 
                        by a public housing employee; or
                            ``(ii) supplant a job at any location at 
                        which community work requirements under section 
                        111 are fulfilled.
    ``(d) Self-Sufficiency.--
            ``(1) Definitions.--In this section--
                    ``(A) 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; and
                            ``(ii) resides in a public housing dwelling 
                        unit or is provided tenant-based assistance;
                    ``(B) the term `self-sufficiency program' means any 
                program designed to encourage, assist, train, or 
                facilitate the economic independence of participants 
                and their families or to provide work for participants, 
                including programs for job training, employment 
                counseling, work placement, basic skills training, 
                education, workfare and apprenticeship; and
                    ``(C) the term `work activities' has the meaning 
                given that term in section 407(d) of the Social 
                Security Act (42 U.S.C. 607(d)) (as in effect on and 
                after July 1, 1997).
            ``(2) Compliance.--
                    ``(A) Sanctions.--Notwithstanding any other 
                provision of law, if the welfare or public assistance 
                benefits of a covered family 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 the conditions under the 
                assistance program requiring participation in a self-
                sufficiency program or a work activities requirement, 
                or because of an act of fraud by any member of the 
                family under the law or program, the amount required to 
                be paid by the family as a monthly contribution toward 
                rent may not be decreased, during the period of the 
                reduction, as a result of any decrease in the income of 
                the family (to the extent that the decrease in income 
                is a result of the benefits reduction).
                    ``(B) Review.--Any covered family that is affected 
                by the operation of this paragraph shall have the right 
                to review the determination under this paragraph 
                through the administrative grievance procedure for the 
                public housing agency.
                    ``(C) Notice.--Subparagraph (A) shall not apply to 
                any covered family before the public housing agency 
                providing assistance under this Act on behalf of the 
                family obtains written notification from the relevant 
                welfare or public assistance agency specifying that the 
                family's benefits have been reduced because of 
                noncompliance with self-sufficiency program or an 
                applicable work activities requirement and the level of 
                such reduction.
                    ``(D) No application of reductions based on time 
                limit for assistance.--For purposes of this paragraph, 
                a reduction in benefits as a result of the expiration 
                of a lifetime time limit for a family receiving welfare 
                or public assistance benefits shall not be considered 
                to be a failure to comply with the conditions under the 
                assistance program requiring participation in a self-
                sufficiency program or a work activities requirement.
            ``(3) Occupancy rights.--This subsection 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.
            ``(4) Cooperation agreements for self-sufficiency 
        activities.--
                    ``(A) Requirement.--To the maximum extent 
                practicable, a public housing agency providing public 
                housing dwelling units or tenant-based assistance for 
                covered families shall enter into such cooperation 
                agreements, with State, local, and other agencies 
                providing assistance to covered families under welfare 
                or public assistance programs, as may be necessary, to 
                provide for such agencies to transfer information to 
                facilitate administration of subsection (c) or 
                paragraph (2) of this subsection, and other information 
                regarding rents, income, and assistance that may assist 
                a public housing agency or welfare or public assistance 
                agency in carrying out its functions.
                    ``(B) Contents.--A public housing agency shall seek 
                to include in a cooperation agreement under this 
                paragraph requirements and provisions designed to 
                target assistance under welfare and public assistance 
                programs to families residing in public and other 
                assisted housing developments, which may include 
                providing for self-sufficiency services within such 
                housing, providing for services designed to meet the 
                unique employment-related needs of residents of such 
                housing, providing for placement of workfare positions 
                on-site in such housing, and such other elements as may 
                be appropriate.
                    ``(C) Confidentiality.--This paragraph may not be 
                construed to authorize any release of information that 
                is prohibited by, or in contravention of, any other 
                provision of Federal, State, or local law.''.

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

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

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

    ``(a) Consortia.--
            ``(1) In general.--Any 2 or more public housing agencies 
        may participate in a consortium for the purpose of 
        administering any or all of the housing programs of those 
        public housing agencies in accordance with this section.
            ``(2) Effect.--With respect to any consortium described in 
        paragraph (1)--
                    ``(A) any assistance made available under this 
                title to each of the public housing agencies 
                participating in the consortium shall be paid to the 
                consortium; and
                    ``(B) all planning and reporting requirements 
                imposed upon each public housing agency participating 
                in the consortium with respect to the programs operated 
                by the consortium shall be consolidated.
            ``(3) Restrictions.--
                    ``(A) Agreement.--Each consortium described in 
                paragraph (1) shall be formed and operated in 
                accordance with a consortium agreement, and shall be 
                subject to the requirements of a joint public housing 
                agency plan, which shall be submitted by the consortium 
                in accordance with section 5A.
                    ``(B) Minimum requirements.--The Secretary shall 
                specify minimum requirements relating to the formation 
                and operation of consortia and the minimum contents of 
                consortium agreements under this paragraph.
    ``(b) Joint Ventures.--
            ``(1) In general.--Notwithstanding any other provision of 
        law, a public housing agency, in accordance with the public 
        housing agency plan, may--
                    ``(A) form and operate wholly owned or controlled 
                subsidiaries (which may be nonprofit corporations) and 
                other affiliates, any of which may be directed, 
                managed, or controlled by the same persons who 
                constitute the board of commissioners or other similar 
                governing body of the public housing agency, or who 
                serve as employees or staff of the public housing 
                agency; or
                    ``(B) enter into joint ventures, partnerships, or 
                other business arrangements with, or contract with, any 
                person, organization, entity, or governmental unit--
                            ``(i) with respect to the administration of 
                        the programs of the public housing agency, 
                        including any program that is subject to this 
                        title; or
                            ``(ii) for the purpose of providing or 
                        arranging for the provision of supportive or 
                        social services.
            ``(2) Use of and treatment income.--Any income generated 
        under paragraph (1)--
                    ``(A) shall be used for low-income housing or to 
                benefit the residents of the public housing agency; and
                    ``(B) shall not result in any decrease in any 
                amount provided to the public housing agency under this 
                title.
            ``(3) Audits.--The Comptroller General of the United 
        States, the Secretary, and the Inspector General of the 
        Department of Housing and Urban Development may conduct an 
        audit of any activity undertaken under paragraph (1) at any 
        time.''.

SEC. 113. REPEAL OF MODERNIZATION FUND.

    (a) In General.--Section 14 of the United States Housing Act of 
1937 (42 U.S.C. 1437l) is repealed.
    (b) Conforming Amendments.--The United States Housing Act of 1937 
(42 U.S.C. 1437 et seq.) is amended--
            (1) in section 5(c)(5), by striking ``for use under section 
        14 or'';
            (2) in section 5(c)(7)--
                    (A) in subparagraph (A)--
                            (i) by striking clause (iii); and
                            (ii) by redesignating clauses (iv) through 
                        (x) as clauses (iii) through (ix), 
                        respectively; and
                    (B) in subparagraph (B)--
                            (i) by striking clause (iii); and
                            (ii) by redesignating clauses (iv) through 
                        (x) as clauses (iii) through (ix), 
                        respectively;
            (3) in section 6(j)(1)--
                    (A) by striking subparagraph (B); and
                    (B) by redesignating subparagraphs (C) through (H) 
                as subparagraphs (B) through (G), respectively;
            (4) in section 6(j)(2)(A)--
                    (A) in clause (i), by striking ``The Secretary 
                shall also designate,'' and all that follows through 
                the period at the end; and
                    (B) in clause (iii), by striking ``(including 
                designation as a troubled agency for purposes of the 
                program under section 14)'';
            (5) in section 6(j)(2)(B)--
                    (A) in clause (i), by striking ``and determining 
                that an assessment under this subparagraph will not 
                duplicate any review conducted under section 14(p)''; 
                and
                    (B) in clause (ii)--
                            (i) by striking ``(I) the agency's 
                        comprehensive plan prepared pursuant to section 
                        14 adequately and appropriately addresses the 
                        rehabilitation needs of the agency's inventory, 
                        (II)'' and inserting ``(I)''; and
                            (ii) by striking ``(III)'' and inserting 
                        ``(II)'';
            (6) in section 6(j)(3)--
                    (A) in clause (ii), by adding ``and'' at the end;
                    (B) by striking clause (iii); and
                    (C) by redesignating clause (iv) as clause (iii);
            (7) in section 6(j)(4)--
                    (A) in subparagraph (D), by adding ``and'' at the 
                end;
                    (B) in subparagraph (E), by striking ``; and'' at 
                the end and inserting a period; and
                    (C) by striking subparagraph (F);
            (8) in section 20--
                    (A) by striking subsection (c) and inserting the 
                following:
    ``(c) [Reserved.]''; and
                    (B) by striking subsection (f) and inserting the 
                following:
    ``(f) [Reserved.]'';
            (9) in section 21(a)(2)--
                    (A) by striking subparagraph (A); and
                    (B) by redesignating subparagraphs (B) and (C) as 
                subparagraphs (A) and (B), respectively;
            (10) in section 21(a)(3)(A)(v), by striking ``the building 
        or buildings meet the minimum safety and livability standards 
        applicable under section 14, and'';
            (11) in section 25(b)(1), by striking ``From amounts 
        reserved'' and all that follows through ``the Secretary may'' 
        and inserting the following: ``To the extent approved in 
        appropriations Acts, the Secretary may'';
            (12) in section 25(e)(2)--
                    (A) by striking ``The Secretary'' and inserting 
                ``To the extent approved in appropriations Acts, the 
                Secretary''; and
                    (B) by striking ``available annually from amounts 
                under section 14'';
            (13) in section 25(e), by striking paragraph (3);
            (14) in section 25(f)(2)(G)(i), by striking ``including--'' 
        and all that follows through ``an explanation'' and inserting 
        ``including an explanation'';
            (15) in section 25(i)(1), by striking the second sentence; 
        and
            (16) in section 202(b)(2)--
                    (A) by striking ``(b) Financial Assistance.--'' and 
                all that follows through ``The Secretary may,'' and 
                inserting the following:
    ``(b) Financial Assistance.--The Secretary may''; and
                    (B) by striking paragraph (2).

SEC. 114. ELIGIBILITY FOR PUBLIC AND ASSISTED HOUSING.

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

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

    ``(a) Income Eligibility for Public Housing.--
            ``(1) In general.--Of the dwelling units of a public 
        housing agency, including public housing units in a designated 
        mixed-finance project, made available for occupancy in any 
        fiscal year of the public housing agency--
                    ``(A) not less than 40 percent shall be occupied by 
                families whose incomes do not exceed 30 percent of the 
                area median income for those families;
                    ``(B) not less than 70 percent shall be occupied by 
                families whose incomes do not exceed 60 percent of the 
                area median income for those families; and
                    ``(C) any remaining dwelling units may be made 
                available for families whose incomes do not exceed 80 
                percent of the area median income for those families.
            ``(2) Establishment of different standards.--
        Notwithstanding paragraph (1), if approved by the Secretary, a 
        public housing agency, in accordance with the public housing 
        agency plan, may for good cause establish and implement an 
        admission standard other than the standard described in 
        paragraph (1).
            ``(3) Prohibition of concentration of low-income 
        families.--A public housing agency may not, in complying with 
        the requirements under paragraph (1), concentrate very low-
        income families (or other families with relatively low incomes) 
        in public housing dwelling units in certain public housing 
        developments or certain buildings within developments.
            ``(4) Mixed-income housing standard.--Each public housing 
        agency plan submitted by a public housing agency shall include 
        a plan for achieving a diverse income mix among residents in 
        each public housing project of the public housing agency and 
        among the scattered site public housing of the public housing 
        agency.
    ``(b) Income Eligibility for Certain Assisted Housing.--
            ``(1) Tenant-based assistance.--Of the dwelling units 
        receiving tenant-based assistance under section 8 made 
        available for occupancy in any fiscal year of the public 
        housing agency--
                    ``(A) not less than 65 percent shall be occupied by 
                families whose incomes do not exceed 30 percent of the 
                area median income for those families;
                    ``(B) not less than 90 percent shall be occupied by 
                families whose incomes do not exceed 60 percent of the 
                area median income for those families; and
                    ``(C) any remaining dwelling units may be made 
                available for families whose incomes do not exceed 80 
                percent of the area median income for those families.
            ``(2) Establishment of different standards.--
        Notwithstanding paragraph (1), if approved by the Secretary, a 
        public housing agency, in accordance with the public housing 
        agency plan, may for good cause establish and implement an 
        admission standard other than the standard described in 
        paragraph (1).
            ``(3) Project-based assistance.--Of the total number of 
        dwelling units in a project receiving assistance under section 
        8, 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) not less than 40 percent shall be occupied by 
                families whose incomes do not exceed 30 percent of the 
                area median income;
                    ``(B) not less than 70 percent shall be occupied by 
                families whose incomes do not exceed 60 percent of the 
                area median income; and
                    ``(C) any remaining dwelling units may be made 
                available for families whose incomes do not exceed 80 
                percent of the area median income for those families.
    ``(c) Definition of Area Median Income.--In this section, the term 
`area median income' means 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.''.

SEC. 115. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.

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

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

    ``(a) Applications for Demolition and Disposition.--Except as 
provided in subsection (b), not later than 60 days after receiving an 
application by a public housing agency for authorization, with or 
without financial assistance under this title, to demolish or dispose 
of a public housing project or a portion of a public housing project 
(including any transfer to a resident-supported nonprofit entity), the 
Secretary shall approve the application, if the public housing agency 
certifies--
            ``(1) in the case of--
                    ``(A) an application proposing demolition of a 
                public housing project or a portion of a public housing 
                project, that--
                            ``(i) the project or portion of the public 
                        housing project is obsolete as to physical 
                        condition, location, or other factors, making 
                        it unsuitable for housing purposes; and
                            ``(ii) no reasonable program of 
                        modifications is cost-effective to return the 
                        public housing project or portion of the 
                        project to useful life; and
                    ``(B) an application proposing the demolition of 
                only a portion of a public housing project, that the 
                demolition will help to assure the viability of the 
                remaining portion of the project;
            ``(2) in the case of an application proposing disposition 
        of a public housing project or other real property subject to 
        this title by sale or other transfer, that--
                    ``(A) the retention of the property is not in the 
                best interests of the residents or the public housing 
                agency because--
                            ``(i) conditions in the area surrounding 
                        the public housing project adversely affect the 
                        health or safety of the residents or the 
                        feasible operation of the project by the public 
                        housing agency; or
                            ``(ii) disposition allows the acquisition, 
                        development, or rehabilitation of other 
                        properties that will be more efficiently or 
                        effectively operated as low-income housing;
                    ``(B) the public housing agency has otherwise 
                determined the disposition to be appropriate for 
                reasons that are--
                            ``(i) in the best interests of the 
                        residents and the public housing agency;
                            ``(ii) consistent with the goals of the 
                        public housing agency and the public housing 
                        agency plan; and
                            ``(iii) otherwise consistent with this 
                        title; or
                    ``(C) for property other than dwelling units, the 
                property is excess to the needs of a public housing 
                project or the disposition is incidental to, or does 
                not interfere with, continued operation of a public 
                housing project;
            ``(3) that the public housing agency has specifically 
        authorized the demolition or disposition in the public housing 
        agency plan, and has certified that the actions contemplated in 
        the public housing agency plan comply with this section;
            ``(4) that the public housing agency--
                    ``(A) will notify residents in a project subject to 
                demolition or disposition 90 days prior to the 
                displacement date except in cases of imminent threat to 
                health or safety;
                    ``(B) will provide for the payment of the actual 
                and reasonable relocation expenses of each resident to 
                be displaced;
                    ``(C) will ensure that each displaced resident is 
                offered comparable housing--
                            ``(i) that meets housing quality standards;
                            ``(ii) which may include--
                                    ``(I) tenant-based assistance;
                                    ``(II) project-based assistance; or
                                    ``(III) occupancy in a unit 
                                operated or assisted by the public 
                                housing agency;
                            ``(iii) that is at a rental rate paid by 
                        the resident that is comparable to the rental 
                        rate applicable to the unit from which the 
                        resident is vacated; and
                            ``(iv) that is located in an area that is 
                        generally not less desirable than the location 
                        of the displaced person's housing;
                    ``(D) will provide any necessary counseling for 
                residents who are displaced; and
                    ``(E) will not commence demolition or complete 
                disposition until all residents residing in the unit 
                are relocated;
            ``(5) that the net proceeds of any disposition will be 
        used--
                    ``(A) unless waived by the Secretary, for the 
                retirement of outstanding obligations issued to finance 
                the original public housing project or modernization of 
                the project; and
                    ``(B) to the extent that any proceeds remain after 
                the application of proceeds in accordance with 
                subparagraph (A), for the provision of low-income 
                housing or to benefit the residents of the public 
                housing agency; and
            ``(6) that the public housing agency has complied with 
        subsection (c).
    ``(b) Disapproval of Applications.--The Secretary shall disapprove 
an application submitted under subsection (a) if the Secretary 
determines that--
            ``(1) any certification made by the public housing agency 
        under that subsection is clearly inconsistent with information 
        and data available to the Secretary or information or data 
        requested by the Secretary; or
            ``(2) the application was not developed in consultation 
        with--
                    ``(A) residents who will be affected by the 
                proposed demolition or disposition; and
                    ``(B) each resident advisory board and resident 
                council, if any, that will be affected by the proposed 
                demolition or disposition.
    ``(c) Resident Opportunity To Purchase in Case of Proposed 
Disposition.--
            ``(1) In general.--In the case of a proposed disposition of 
        a public housing project or portion of a project, the public 
        housing agency shall, in appropriate circumstances, as 
        determined by the Secretary, initially offer the property to 
        any eligible resident organization, eligible resident 
        management corporation, or nonprofit organization acting on 
        behalf of the residents, if that entity has expressed an 
        interest, in writing, to the public housing agency in a timely 
        manner, in purchasing the property for continued use as low-
        income housing.
            ``(2) Timing.--
                    ``(A) Thirty-day notice.--A resident organization, 
                resident management corporation, or other resident-
                supported nonprofit entity referred to in paragraph (1) 
                may express interest in purchasing property that is the 
                subject of a disposition, as described in paragraph 
                (1), during the 30-day period beginning on the date of 
                notification of a proposed sale of the property.
                    ``(B) Sixty-day notice.--If an entity expresses 
                written interest in purchasing a property, as provided 
                in subparagraph (A), no disposition of the property 
                shall occur during the 60-day period beginning on the 
                date of receipt of that written notice, during which 
                time that entity shall be given the opportunity to 
                obtain a firm commitment for financing the purchase of 
                the property.
    ``(d) Replacement Units.--Notwithstanding any other provision of 
law, replacement housing units for public housing units demolished in 
accordance with this section may be built on the original public 
housing location or in the same neighborhood as the original public 
housing location if the number of those replacement units is fewer than 
the number of units demolished.''.
    (b) Homeownership Replacement Plan.--
            (1) In general.--Section 304(g) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437aaa-3(g)), as amended by 
        section 1002(b) of the Emergency Supplemental Appropriations 
        for Additional Disaster Assistance, for Anti-terrorism 
        Initiatives, for Assistance in the Recovery from the Tragedy 
        that Occurred At Oklahoma City, and Rescissions Act, 1995 
        (Public Law 104-19; 109 Stat. 236), is amended to read as 
        follows:
    ``(g) [Reserved.]''.
            (2) Effective date.--The amendment made by paragraph (1) 
        shall be effective with respect to any plan for the demolition, 
        disposition, or conversion to homeownership of public housing 
        that is approved by the Secretary after September 30, 1995.
    (c) Uniform Relocation and Real Property Acquisition Act.--The 
Uniform Relocation and Real Property Acquisition Act shall not apply to 
activities under section 18 of the United States Housing Act of 1937, 
as amended by this section.

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

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

``SEC. 22. VOUCHER SYSTEM FOR PUBLIC HOUSING.

    ``(a) In General.--
            ``(1) Authorization.--A public housing agency may convert 
        any public housing project (or portion thereof) owned and 
        operated by the public housing agency to a system of tenant-
        based assistance in accordance with this section.
            ``(2) Requirements.--In converting to a tenant-based system 
        of assistance under this section, the public housing agency 
        shall develop a conversion assessment and plan under subsection 
        (b) in consultation with the appropriate public officials, with 
        significant participation by the residents of the project (or 
        portion thereof), which assessment and plan shall--
                    ``(A) be consistent with and part of the public 
                housing agency plan; and
                    ``(B) describe the conversion and future use or 
                disposition of the public housing project, including an 
                impact analysis on the affected community.
    ``(b) Conversion Assessment and Plan.--
            ``(1) In general.--Not later than 2 years after the date of 
        enactment of the Public Housing Reform and Responsibility Act 
        of 1997, each public housing agency shall assess the status of 
        each public housing project owned and operated by that public 
        housing agency, and shall submit to the Secretary an assessment 
        that includes--
                    ``(A) a cost analysis that demonstrates whether or 
                not the cost (both on a net present value basis and in 
                terms of new budget authority requirements) of 
                providing tenant-based assistance under section 8 for 
                the same families in substantially similar dwellings 
                over the same period of time is less expensive than 
                continuing public housing assistance in the public 
                housing project proposed for conversion for the 
                remaining useful life of the project;
                    ``(B) an analysis of the market value of the public 
                housing project proposed for conversion both before and 
                after rehabilitation, and before and after conversion;
                    ``(C) an analysis of the rental market conditions 
                with respect to the likely success of tenant-based 
                assistance under section 8 in that market for the 
                specific residents of the public housing project 
                proposed for conversion, including an assessment of the 
                availability of decent and safe dwellings renting at or 
                below the payment standard established for tenant-based 
                assistance under section 8 by the public housing 
                agency;
                    ``(D) the impact of the conversion to a system of 
                tenant-based assistance under this section on the 
                neighborhood in which the public housing project is 
                located; and
                    ``(E) a plan that identifies actions, if any, that 
                the public housing agency would take with regard to 
                converting any public housing project or projects (or 
                portions thereof) of the public housing agency to a 
                system of tenant-based assistance.
            ``(2) Streamlined assessment.--At the discretion of the 
        Secretary or at the request of a public housing agency, the 
        Secretary may waive any or all of the requirements of paragraph 
        (1) or otherwise require a streamlined assessment with respect 
        to any public housing project or class of public housing 
        projects.
            ``(3) Implementation of conversion plan.--
                    ``(A) In general.--A public housing agency may 
                implement a conversion plan only if the conversion 
                assessment under this section demonstrates that the 
                conversion--
                            ``(i) will not be more expensive than 
                        continuing to operate the public housing 
                        project (or portion thereof) as public housing; 
                        and
                            ``(ii) will principally benefit the 
                        residents of the public housing project (or 
                        portion thereof) to be converted, the public 
                        housing agency, and the community.
                    ``(B) Disapproval.--The Secretary shall disapprove 
                a conversion plan only if--
                            ``(i) the plan is plainly inconsistent with 
                        the conversion assessment under subsection (b);
                            ``(ii) there is reliable information and 
                        data available to the Secretary that 
                        contradicts that conversion assessment; or
                            ``(iii) the plan otherwise fails to meet 
                        the requirements of this subsection.
    ``(c) Other Requirements.--To the extent approved by the Secretary, 
the funds used by the public housing agency to provide tenant-based 
assistance under section 8 shall be added to the annual contribution 
contract administered by the public housing agency.''.
    (b) Savings Provision.--The amendment made by subsection (a) does 
not affect any contract or other agreement entered into under section 
22 of the United States Housing Act of 1937, as that section existed on 
the day before the date of enactment of this Act.

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

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

``SEC. 23. PUBLIC HOUSING HOMEOWNERSHIP OPPORTUNITIES.

    ``(a) In General.--Notwithstanding any other provision of law, a 
public housing agency may, in accordance with this section--
            ``(1) sell any public housing unit in any public housing 
        project of the public housing agency to--
                    ``(A) the low-income residents of the public 
                housing agency; or
                    ``(B) any organization serving as a conduit for 
                sales to those persons; and
            ``(2) provide assistance to public housing residents to 
        facilitate the ability of those residents to purchase a 
        principal residence.
    ``(b) Right of First Refusal.--In making any sale under this 
section, the public housing agency shall initially offer the public 
housing unit at issue to the resident or residents occupying that unit, 
if any, or to an organization serving as a conduit for sales to any 
such resident.
    ``(c) Sale Prices, Terms, and Conditions.--Any sale under this 
section may involve such prices, terms, and conditions as the public 
housing agency may determine in accordance with procedures set forth in 
the public housing agency plan.
    ``(d) Purchase Requirements.--
            ``(1) In general.--Each resident that purchases a dwelling 
        unit under subsection (a) shall, as of the date on which the 
        purchase is made--
                    ``(A) intend to occupy the property as a principal 
                residence; and
                    ``(B) submit a written certification to the public 
                housing agency that such resident will occupy the 
                property as a principal residence for a period of not 
                less than 12 months beginning on that date.
            ``(2) Recapture.--Except for good cause, as determined by a 
        public housing agency in the public housing agency plan, if, 
        during the 1-year period beginning on the date on which any 
        resident acquires a public housing unit under this section, 
        that public housing unit is resold, the public housing agency 
        shall recapture 75 percent of the amount of any proceeds from 
        that resale that exceed the sum of--
                    ``(A) the original sale price for the acquisition 
                of the property by the qualifying resident;
                    ``(B) the costs of any improvements made to the 
                property after the date on which the acquisition 
                occurs; and
                    ``(C) any closing costs incurred in connection with 
                the acquisition.
    ``(e) Protection of Nonpurchasing Residents.--If a public housing 
resident does not exercise the right of first refusal under subsection 
(b) with respect to the public housing unit in which the resident 
resides, the public housing agency shall--
            ``(1) ensure that either another public housing unit or 
        rental assistance under section 8 is made available to the 
        resident; and
            ``(2) provide for the payment of the actual and reasonable 
        relocation expenses of the resident.
    ``(f) Net Proceeds.--The net proceeds of any sales under this 
section remaining after payment of all costs of the sale and any 
unassumed, unpaid indebtedness owed in connection with the dwelling 
units sold under this section unless waived by the Secretary, shall be 
used for purposes relating to low-income housing and in accordance with 
the public housing agency plan.
    ``(g) Homeownership Assistance.--From amounts distributed to a 
public housing agency under section 9, or from other income earned by 
the public housing agency, the public housing agency may provide 
assistance to public housing residents to facilitate the ability of 
those residents to purchase a principal residence, including a 
residence other than a residence located in a public housing 
project.''.
    (b) Conforming Amendments.--The United States Housing Act of 1937 
(42 U.S.C. 1437 et seq.) is amended--
            (1) in section 8(y)(7)(A)--
                    (A) by striking ``, (ii)'' and inserting ``, and 
                (ii)''; and
                    (B) by striking ``, and (iii)'' and all that 
                follows before the period at the end; and
            (2) in section 25(l)(2)--
                    (A) in the first sentence, by striking ``, 
                consistent with the objectives of the program under 
                section 23,''; and
                    (B) by striking the second sentence.
    (c) Savings Provision.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section do not affect any contract or 
        other agreement entered into under section 23 of the United 
        States Housing Act of 1937, as that section existed on the day 
        before the date of enactment of this Act.
            (2) Exception.--Section 23(d)(3) of the United States 
        Housing Act of 1937, as in existence on the day before the date 
        of enactment of this Act, shall not apply to any contract or 
        other agreement after the date of enactment of this Act.

SEC. 118. REVITALIZING SEVERELY DISTRESSED PUBLIC HOUSING.

    Section 24 of the United States Housing Act of 1937 (42 U.S.C. 
1437v) is amended to read as follows:

``SEC. 24. REVITALIZING SEVERELY DISTRESSED PUBLIC HOUSING.

    ``(a) In General.--To the extent provided in advance in 
appropriations Acts, the Secretary may make grants to public housing 
agencies for the purposes of--
            ``(1) enabling the demolition of obsolete public housing 
        projects or portions thereof;
            ``(2) revitalizing sites (including remaining public 
        housing units) on which such public housing projects are 
        located;
            ``(3) the provision of replacement housing, which will 
        avoid or lessen concentrations of very low-income families; and
            ``(4) the provision of tenant-based assistance under 
        section 8 for use as replacement housing.
    ``(b) Competition.--The Secretary shall make grants under this 
section on the basis of a competition, which shall be based on such 
factors as--
            ``(1) the need for additional resources for addressing a 
        severely distressed public housing project;
            ``(2) the need for affordable housing in the community;
            ``(3) the supply of other housing available and affordable 
        to a family receiving tenant-based assistance under section 8; 
        and
            ``(4) the local impact of the proposed revitalization 
        program.
    ``(c) Terms and Conditions.--The Secretary may impose such terms 
and conditions on recipients of grants under this section as the 
Secretary determines to be appropriate to carry out the purposes of 
this section, except that such terms and conditions shall be similar to 
the terms and conditions of either--
            ``(1) the urban revitalization demonstration program 
        authorized under the Departments of Veterans Affairs and 
        Housing and Urban Development, and Independent Agencies 
        Appropriations Acts; or
            ``(2) section 24 of the United States Housing Act of 1937, 
        as such section existed before the date of enactment of the 
        Public Housing Reform and Responsibility Act of 1997.
    ``(d) Alternative Management.--The Secretary may require any 
recipient of a grant under this section to make arrangements with an 
entity other than the public housing agency to carry out the purposes 
for which the grant was awarded, if the Secretary determines that such 
action is necessary for the timely and effective achievement of the 
purposes for which the grant was awarded.
    ``(e) Sunset.--No grant may be made under this section on or after 
October 1, 2000.''.

SEC. 119. MIXED-FINANCE AND MIXED-OWNERSHIP PROJECTS.

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

``SEC. 30. MIXED-FINANCE AND MIXED-OWNERSHIP PROJECTS.

    ``(a) In General.--A public housing agency may own, operate, 
assist, or otherwise participate in 1 or more mixed-finance projects in 
accordance with this section.
    ``(b) Requirements.--
            ``(1) Mixed-finance project.--In this section, the term 
        `mixed-finance project' means a project that meets the 
        requirements of paragraph (2) and that is occupied both by 1 or 
        more very low-income families and by 1 or more families that 
        are not very low-income families.
            ``(2) Structure of projects.--Each mixed-finance project 
        shall be developed--
                    ``(A) in a manner that ensures that units are made 
                available in the project, by master contract, 
                individual lease, or equity interest for occupancy by 
                eligible families identified by the public housing 
                agency for a period of not less than 20 years;
                    ``(B) in a manner that ensures that the number of 
                public housing units bears approximately the same 
                proportion to the total number of units in the mixed-
                finance project as the value of the total financial 
                commitment provided by the public housing agency bears 
                to the value of the total financial commitment in the 
                project, or shall not be less than the number of units 
                that could have been developed under the conventional 
                public housing program with the assistance; and
                    ``(C) in accordance with such other requirements as 
                the Secretary may prescribe by regulation.
            ``(3) Types of projects.--The term `mixed-finance project' 
        includes a project that is developed--
                    ``(A) by a public housing agency or by an entity 
                affiliated with a public housing agency;
                    ``(B) by a partnership, a limited liability 
                company, or other entity in which the public housing 
                agency (or an entity affiliated with a public housing 
                agency) is a general partner, managing member, or 
                otherwise participates in the activities of that 
                entity;
                    ``(C) by any entity that grants to the public 
                housing agency a right of first refusal to acquire the 
                public housing project within the applicable period of 
                time after initial occupancy of the public housing 
                project in accordance with section 42(i)(7) of the 
                Internal Revenue Code of 1986; or
                    ``(D) in accordance with such other terms and 
                conditions as the Secretary may prescribe by 
                regulation.
    ``(c) Taxation.--
            ``(1) In general.--A public housing agency may elect to 
        have all public housing units in a mixed-finance project 
        subject to local real estate taxes, except that such units 
        shall be eligible at the discretion of the public housing 
        agency for the taxing requirements under section 6(d).
            ``(2) Low-income housing tax credit.--With respect to any 
        unit in a mixed-finance project that is assisted pursuant to 
        the low-income housing tax credit under section 42 of the 
        Internal Revenue Code of 1986, the rents charged to the 
        residents may be set at levels not to exceed the amounts 
        allowable under that section.
    ``(d) Restriction.--No assistance provided under section 9 shall be 
used by a public housing agency in direct support of any unit rented to 
a family that is not a low-income family.
    ``(e) Effect of Certain Contract Terms.--If an entity that owns or 
operates a mixed-finance project under this section enters into a 
contract with a public housing agency, the terms of which obligate the 
entity to operate and maintain a specified number of units in the 
project as public housing units in accordance with the requirements of 
this Act for the period required by law, such contractual terms may 
provide that, if, as a result of a reduction in appropriations under 
section 9, or any other change in applicable law, the public housing 
agency is unable to fulfill its contractual obligations with respect to 
those public housing units, that entity may deviate, under procedures 
and requirements developed through regulations by the Secretary, from 
otherwise applicable restrictions under this Act regarding rents, 
income eligibility, and other areas of public housing management with 
respect to a portion or all of those public housing units, to the 
extent necessary to preserve the viability of those units while 
maintaining the low-income character of the units to the maximum extent 
practicable.''.
    (b) Regulations.--The Secretary shall issue such regulations as may 
be necessary to promote the development of mixed-finance projects, as 
that term is defined in section 30 of the United States Housing Act of 
1937 (as added by this Act).

SEC. 120. CONVERSION OF DISTRESSED PUBLIC HOUSING TO TENANT-BASED 
              ASSISTANCE.

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

``SEC. 31. CONVERSION OF DISTRESSED PUBLIC HOUSING TO TENANT-BASED 
              ASSISTANCE.

    ``(a) Identification of Units.--Each public housing agency shall 
identify all public housing projects of the public housing agency--
            ``(1) that are on the same or contiguous sites;
            ``(2) that the public housing agency determines to be 
        distressed, which determination shall be made in accordance 
        with guidelines established by the Secretary, which guidelines 
        shall take into account the criteria established in the Final 
        Report of the National Commission on Severely Distressed Public 
        Housing (August 1992);
            ``(3) identified as distressed housing under paragraph (2) 
        for which the public housing agency cannot assure the long-term 
        viability as public housing through reasonable modernization 
        expenses, density reduction, achievement of a broader range of 
        family income, or other measures; and
            ``(4) for which the estimated cost, during the remaining 
        useful life of the project, of continued operation and 
        modernization as public housing exceeds the estimated cost, 
        during the remaining useful life of the project, of providing 
        tenant-based assistance under section 8 for all families in 
        occupancy, based on appropriate indicators of cost (such as the 
        percentage of total development costs required for 
        modernization).
    ``(b) Consultation.--Each public housing agency shall consult with 
the appropriate public housing residents and the appropriate unit of 
general local government in identifying any public housing projects 
under subsection (a).
    ``(c) Removal of Units From the Inventories of Public Housing 
Agencies.--
            ``(1) In general.--
                    ``(A) Development of plan.--Each public housing 
                agency shall develop and, to the extent provided in 
                advance in appropriations Acts, carry out a 5-year plan 
                in conjunction with the Secretary for the removal of 
                public housing units identified under subsection (a) 
                from the inventory of the public housing agency and the 
                annual contributions contract.
                    ``(B) Approval of plan.--The plan required under 
                subparagraph (A) shall--
                            ``(i) be included as part of the public 
                        housing agency plan;
                            ``(ii) be certified by the relevant local 
                        official to be in accordance with the 
                        comprehensive housing affordability strategy 
                        under title I of the Housing and Community 
                        Development Act of 1992; and
                            ``(iii) include a description of any 
                        disposition and demolition plan for the public 
                        housing units.
            ``(2) Extensions.--The Secretary may extend the 5-year 
        deadline described in paragraph (1) by not more than an 
        additional 5 years if the Secretary makes a determination that 
        the deadline is impracticable.
            ``(3) Determination of secretary.--
                    ``(A) Failure to identify projects.--If the 
                Secretary determines, based on a plan submitted under 
                this subsection, that a public housing agency has 
                failed to identify 1 or more public housing projects 
                that the Secretary determines should have been 
                identified under subsection (a), the Secretary may 
                designate the public housing projects to be removed 
                from the inventory of the public housing agency 
                pursuant to this section.
                    ``(B) Erroneous identification of projects.--If the 
                Secretary determines, based on a plan submitted under 
                this subsection, that a public housing agency has 
                identified 1 or more public housing projects that 
                should not have been identified pursuant to subsection 
                (a), the Secretary shall--
                            ``(i) require the public housing agency to 
                        revise the plan of the public housing agency 
                        under this subsection; and
                            ``(ii) prohibit the removal of any such 
                        public housing project from the inventory of 
                        the public housing agency under this section.
    ``(d) Conversion to Tenant-Based Assistance.--
            ``(1) In general.--To the extent approved in advance in 
        appropriations Acts, the Secretary shall make authority 
        available to a public housing agency to provide assistance 
        under this Act to families residing in any public housing 
        project that is removed from the inventory of the public 
        housing agency and the annual contributions contract pursuant 
        to this section.
            ``(2) Plan requirements.--Each plan under subsection (c) 
        shall require the agency--
                    ``(A) to notify each family residing in the public 
                housing project, consistent with any guidelines issued 
                by the Secretary governing such notifications, that--
                            ``(i) the public housing project will be 
                        removed from the inventory of the public 
                        housing agency;
                            ``(ii) the demolition will not commence 
                        until each resident residing in the public 
                        housing project is relocated; and
                            ``(iii) each family displaced by such 
                        action will be offered comparable housing--
                                    ``(I) that meets housing quality 
                                standards; and
                                    ``(II) which may include--
                                            ``(aa) tenant-based 
                                        assistance;
                                            ``(bb) project-based 
                                        assistance; or
                                            ``(cc) occupancy in a unit 
                                        operated or assisted by the 
                                        public housing agency at a 
                                        rental rate paid by the family 
                                        that is comparable to the 
                                        rental rate applicable to the 
                                        unit from which the family is 
                                        vacated;
                    ``(B) to provide any necessary counseling for 
                families displaced by such action; and
                    ``(C) to provide any actual and reasonable 
                relocation expenses for families displaced by such 
                action.
    ``(e) Removal by Secretary.--The Secretary shall take appropriate 
actions to ensure removal of any public housing project identified 
under subsection (a) from the inventory of a public housing agency, if 
the public housing agency fails to adequately develop a plan under 
subsection (c) with respect to that project, or fails to adequately 
implement such plan in accordance with the terms of the plan.
    ``(f) Administration.--
            ``(1) In general.--The Secretary may require a public 
        housing agency to provide to the Secretary or to public housing 
        residents such information as the Secretary considers to be 
        necessary for the administration of this section.
            ``(2) Applicability of section 18.--Section 18 does not 
        apply to the demolition of public housing projects removed from 
        the inventory of the public housing agency under this 
        section.''.
    (b) Conforming Amendment.--Section 202 of the Departments of 
Veterans Affairs and Housing and Urban Development, and Independent 
Agencies Appropriations Act, 1996 (42 U.S.C. 1437l note) is repealed.

SEC. 121. PUBLIC HOUSING MORTGAGES AND SECURITY INTERESTS.

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

``SEC. 32. PUBLIC HOUSING MORTGAGES AND SECURITY INTERESTS.

    ``(a) General Authorization.--The Secretary may, upon such terms 
and conditions as the Secretary may prescribe, authorize a public 
housing agency to mortgage or otherwise grant a security interest in 
any public housing project or other property of the public housing 
agency.
    ``(b) Terms and Conditions.--
            ``(1) Criteria for approval.--In making any authorization 
        under subsection (a), the Secretary may consider--
                    ``(A) the ability of the public housing agency to 
                use the proceeds of the mortgage or security interest 
                for low-income housing uses;
                    ``(B) the ability of the public housing agency to 
                make payments on the mortgage or security interest; and
                    ``(C) such other criteria as the Secretary may 
                specify.
            ``(2) Terms and conditions of mortgages and security 
        interests obtained.--Each mortgage or security interest granted 
        under this section shall be--
                    ``(A) for a term that--
                            ``(i) is consistent with the terms of 
                        private loans in the market area in which the 
                        public housing project or property at issue is 
                        located; and
                            ``(ii) does not exceed 30 years; and
                    ``(B) subject to conditions that are consistent 
                with the conditions to which private loans in the 
                market area in which the subject project or other 
                property is located are subject.
            ``(3) No federal liability.--No action taken under this 
        section shall result in any liability to the Federal 
        Government.''.

SEC. 122. LINKING SERVICES TO PUBLIC HOUSING RESIDENTS.

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

``SEC. 33. SERVICES FOR PUBLIC HOUSING RESIDENTS.

    ``(a) In General.--To the extent provided in advance in 
appropriations Acts, the Secretary may make grants to public housing 
agencies on behalf of public housing residents, or directly to resident 
management corporations, resident councils, or resident organizations 
(including nonprofit entities supported by residents), for the purposes 
of providing a program of supportive services and resident empowerment 
activities to assist public housing residents in becoming economically 
self-sufficient.
    ``(b) Eligible Activities.--Grantees under this section may use 
such amounts only for activities on or near the property of the public 
housing agency or public housing project that are designed to promote 
the self-sufficiency of public housing residents, including activities 
relating to--
            ``(1) physical improvements to a public housing project in 
        order to provide space for supportive services for residents;
            ``(2) the provision of service coordinators or a congregate 
        housing services program for elderly disabled individuals, 
        nonelderly disabled individuals, or temporarily disabled 
        individuals;
            ``(3) 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;
            ``(4) 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;
            ``(5) resident management activities and resident 
        participation activities; and
            ``(6) other activities designed to improve the economic 
        self-sufficiency of residents.
    ``(c) Funding Distribution.--
            ``(1) In general.--Except for amounts provided under 
        subsection (d), the Secretary may distribute amounts made 
        available under this section on the basis of a competition or a 
        formula, as appropriate.
            ``(2) Factors for distribution.--Factors for distribution 
        under paragraph (1) shall include--
                    ``(A) the demonstrated capacity of the applicant to 
                carry out a program of supportive services or resident 
                empowerment activities;
                    ``(B) the ability of the applicant to leverage 
                additional resources for the provision of services; and
                    ``(C) the extent to which the grant will result in 
                a high quality program of supportive services or 
                resident empowerment activities.
    ``(d) Matching Requirement.--The Secretary may not make any grant 
under this section to any applicant unless the applicant supplements 
each dollar made available under this section with funds from sources 
other than this section, in an amount equal to not less than 25 percent 
of the grant amount, including--
            ``(1) funds from other Federal sources;
            ``(2) funds from any State or local government sources;
            ``(3) funds from private contributions; and
            ``(4) the value of any in-kind services or administrative 
        costs provided to the applicant.
    ``(e) Funding for Resident Councils.--Of amounts appropriated for 
activities under this section, not less than 25 percent shall be 
provided directly to resident councils, resident organizations, and 
resident management corporations.''.

SEC. 123. PROHIBITION ON USE OF AMOUNTS.

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

``SEC. 34. PROHIBITION ON USE OF AMOUNTS.

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

SEC. 124. PET OWNERSHIP.

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

``SEC. 35. PET OWNERSHIP IN FEDERALLY ASSISTED RENTAL HOUSING.

    ``(a) Ownership Conditions.--
            ``(1) In general.--A resident of a dwelling unit in 
        federally assisted rental housing may own 1 or more common 
        household pets or have 1 or more common household pets present 
        in the dwelling unit of such resident, subject to the 
        reasonable requirements of the owner of the federally assisted 
        rental housing, if the resident maintains each pet responsibly 
        and in accordance with applicable State and local public 
        health, animal control, and animal anti-cruelty laws and 
        regulations.
            ``(2) Requirements.--The reasonable requirements described 
        in paragraph (1) may include--
                    ``(A) requiring payment of a nominal fee, a pet 
                deposit, or both, by residents owning or having pets 
                present, to cover the reasonable operating costs to the 
                project relating to the presence of pets and to 
                establish an escrow account for additional costs not 
                otherwise covered, respectively;
                    ``(B) limitations on the number of animals in a 
                unit, based on unit size; and
                    ``(C) prohibitions on--
                            ``(i) certain breeds or types of animals 
                        that are determined to be dangerous; and
                            ``(ii) individual animals, based on certain 
                        factors, including the size and weight of the 
                        animal.
    ``(b) Prohibition Against Discrimination.--No owner of federally 
assisted rental housing may restrict or discriminate against any person 
in connection with admission to, or continued occupancy of, such 
housing by reason of the ownership of common household pets by, or the 
presence of such pets in the dwelling unit of, such person.
    ``(c) Definitions.--In this section:
            ``(1) Federally assisted rental housing.--The term 
        `federally assisted rental housing' means any public housing 
        project or any rental housing receiving project-based 
        assistance under--
                    ``(A) the new construction and substantial 
                rehabilitation program under section 8(b)(2) of this 
                Act (as in effect before October 1, 1983);
                    ``(B) the property disposition program under 
                section 8(b);
                    ``(C) the moderate rehabilitation program under 
                section 8(e)(2) of this Act (as it existed prior to 
                October 1, 1991);
                    ``(D) section 23 of this Act (as in effect before 
                January 1, 1975);
                    ``(E) the rent supplement program under section 101 
                of the Housing and Urban Development Act of 1965;
                    ``(F) section 8 of this Act, following conversion 
                from assistance under section 101 of the Housing and 
                Urban Development Act of 1965; or
                    ``(G) loan management assistance under section 8 of 
                this Act.
            ``(2) Owner.--The term `owner' means, with respect to 
        federally assisted rental 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 (including a manager of such housing having such 
        right).
    ``(d) Regulations.--This section shall take effect upon the date of 
the effectiveness of regulations issued by the Secretary to carry out 
this section. Such regulations shall be issued after notice and 
opportunity for public comment in accordance with the procedure under 
section 553 of title 5, United States Code, applicable to substantive 
rules (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such 
section).''.

SEC. 125. CITY OF INDIANAPOLIS FLEXIBLE GRANT DEMONSTRATION.

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

``SEC. 36. CITY OF INDIANAPOLIS FLEXIBLE GRANT DEMONSTRATION.

    ``(a) Definitions.--In this section:
            ``(1) Covered housing assistance.--The term `covered 
        housing assistance' means--
                    ``(A)(i) operating assistance under section 9 of 
                the United States Housing Act of 1937 (as in existence 
                on the day before the effective date of the Public 
                Housing Reform and Responsibility Act of 1997), 
                modernization assistance under section 14 of the United 
                States Housing Act of 1937 (as in existence on the day 
                before the effective date of the Public Housing Reform 
                and Responsibility Act of 1997); and
                    ``(ii) assistance for the certificate and voucher 
                programs under section 8 of the United States Housing 
                Act of 1937 (as in existence on the day before the 
                effective date of the Public Housing Reform and 
                Responsibility Act of 1997);
                    ``(B) assistance for public housing under the 
                Capital and Operating Funds established under section 
                9; and
                    ``(C) tenant-based rental assistance under section 
                8.
            ``(2) City.--The term `City' means the city of 
        Indianapolis, Indiana.
    ``(b) Purpose.--The Secretary shall carry out a demonstration 
program in accordance with this section under which the City, in 
coordination with the public housing agency of the City--
            ``(1) may receive and combine program allocations of 
        covered housing assistance; and
            ``(2) shall have the flexibility to design creative 
        approaches for providing and administering Federal housing 
        assistance that--
                    ``(A) provide incentives to low-income families 
                with children whose head of the household is employed, 
                seeking employment, or preparing for employment by 
                participating in a job training or educational program, 
                or any program that otherwise assists individuals in 
                obtaining employment and attaining economic self-
                sufficiency;
                    ``(B) reduce costs of Federal housing assistance 
                and achieve greater cost-effectiveness in Federal 
                housing assistance expenditures;
                    ``(C) increase the stock of affordable housing and 
                housing choices for low-income families;
                    ``(D) increase homeownership among low-income 
                families; and
                    ``(E) achieve such other purposes with respect to 
                low-income families, as determined by the City in 
                coordination with the public housing agency.
    ``(c) Program Allocation.--In each fiscal year, the amount made 
available to the City under this section shall be equal to the sum of 
the amounts that would otherwise be made available to the public 
housing agency of the City under the provisions of this Act described 
in subparagraphs (A) through (C) of subsection (a)(1).
    ``(d) Applicability of Program Requirements.--
            ``(1) In general.--In each fiscal year of the demonstration 
        program under this section, amounts made available to the City 
        under this section shall be subject to the same terms and 
        conditions as those amounts would be subject if made available 
        under the provisions of this Act pursuant to which covered 
        housing assistance is otherwise made available to the public 
        housing agency of the City under this Act, except that--
                    ``(A) the Secretary may waive any such term or 
                condition to the extent that the Secretary determines 
                such action to be appropriate to carry out the 
                demonstration program under this section; and
                    ``(B) the City may combine the amounts made 
                available and use the amounts for any activity eligible 
                under each such program under section 8 or 9.
            ``(2) Number of families assisted.--In carrying out the 
        demonstration program under this section, the City shall assist 
        substantially the same total number of eligible low-income 
        families as would have otherwise been served by the public 
        housing agency of the City.
            ``(3) Protection of recipients.--Nothing is this section 
        shall be construed to authorize the termination of assistance 
        to any recipient of assistance under this Act before the date 
        of enactment of this section, as a result of the implementation 
        of the demonstration program under this section.
    ``(e) Plan Requirement.--In carrying out this section, the 
Secretary may establish a streamlined public housing agency plan and 
planning process for the City in accordance with section 5A.
    ``(f) Effect on Ability To Compete for Other Categorical 
Programs.--Nothing in this section shall be construed to affect the 
ability of the City (or the public housing agency of the City) to 
compete or otherwise apply for or receive assistance under any other 
housing assistance program administered by the Secretary.
    ``(g) Performance Standards.--The Secretary and the City shall 
collectively establish standards for evaluating the performance of the 
City in meeting the goals set forth in subsection (b) including--
            ``(1) moving dependent low-income families to economic 
        self-sufficiency;
            ``(2) reducing the per-family cost of providing housing 
        assistance;
            ``(3) expanding the stock of affordable housing and housing 
        choices of low-income families;
            ``(4) increasing the number of homeownership opportunities 
        for low-income families; and
            ``(5) any other performance goals established by the 
        Secretary and the City.
    ``(h) Records and Reports.--
            ``(1) Records.--The City shall maintain such records as the 
        Secretary may require in order to--
                    ``(A) document the amounts received by the City 
                under this Act, and the disposition of those amounts 
                under the demonstration program under this section;
                    ``(B) ensure compliance by the City with this 
                section; and
                    ``(C) evaluate the performance of the City under 
                the demonstration program under this section.
            ``(2) Reports.--
                    ``(A) In general.--The City shall annually submit 
                to the Secretary a report in a form and at a time 
                specified by the Secretary.
                    ``(B) Contents.--Each report under this paragraph 
                shall include--
                            ``(i) documentation of the use of funds 
                        made available to the City under this section;
                            ``(ii) such data as the Secretary may 
                        request to assist the Secretary in evaluating 
                        the demonstration program under this section; 
                        and
                            ``(iii) a description and analysis of the 
                        effect of assisted activities in addressing the 
                        objectives of the demonstration program under 
                        this section.
            ``(3) Access to documents by the secretary and comptroller 
        general.--The Secretary and the Comptroller General of the 
        United States, or any duly authorized representative of the 
        Secretary or the Comptroller General, shall have access for the 
        purpose of audit and examination to any books, documents, 
        papers, and records maintained by the City that relate to the 
        demonstration program under this section.
    ``(i) Performance Review and Evaluation.--
            ``(1) Performance review.--Based on the performance 
        standards established under subsection (g), the Secretary shall 
        monitor the performance of the City in providing assistance 
        under this section.
            ``(2) Status report.--Not later than 60 days after the last 
        day of the second year of the demonstration program under this 
        section, the Secretary shall submit to Congress an interim 
        report on the status of the demonstration program and the 
        progress of the City in achieving the purposes of the 
        demonstration program under subsection (b).
            ``(3) Termination and Evaluation.--
                    ``(A) Termination.--The demonstration program under 
                this section shall terminate not less than 2 and not 
                more than 5 years after the date on which the program 
                is commenced under this section.
                    ``(B) Evaluation.--Not later than 6 months after 
                the termination of the demonstration program under this 
                section, the Secretary shall submit to Congress a final 
                report, which shall include--
                            ``(i) an evaluation the effectiveness of 
                        the activities carried out under the 
                        demonstration program under this section; and
                            ``(ii) any findings and recommendations of 
                        the Secretary for any appropriate legislative 
                        action.''.

                 TITLE II--SECTION 8 RENTAL ASSISTANCE

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

    (a) In General.--Section 8(o) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)) is amended to read as follows:
    ``(o) Voucher Program.--
            ``(1) Payment standard.--
                    ``(A) In general.--The Secretary may provide 
                assistance to public housing agencies for tenant-based 
                assistance using a payment standard established in 
                accordance with subparagraph (B). The payment standard 
                shall be used to determine the monthly assistance that 
                may be paid for any family, as provided in paragraph 
                (2).
                    ``(B) Establishment of payment standard.--Except as 
                provided under subparagraph (D), the payment standard 
                shall not exceed 110 percent of the fair market rental 
                established under subsection (c) and shall be not less 
                than 90 percent of that fair market rental.
                    ``(C) Set-aside.--The Secretary may set aside not 
                more than 5 percent of the budget authority available 
                under this subsection as an adjustment pool. The 
                Secretary shall use amounts in the adjustment pool to 
                make adjusted payments to public housing agencies under 
                subparagraph (A), to ensure continued affordability, if 
                the Secretary determines that additional assistance for 
                such purpose is necessary, based on documentation 
                submitted by a public housing agency.
                    ``(D) Approval.--The Secretary may require a public 
                housing agency to submit the payment standard of the 
                public housing agency to the Secretary for approval, if 
                the payment standard is less than 90 percent of the 
                fair market rent or exceeds 110 percent of the fair 
                market rent.
                    ``(E) Review.--The Secretary--
                            ``(i) shall monitor rent burdens and review 
                        any payment standard that results in a 
                        significant percentage of the families 
                        occupying units of any size paying more than 30 
                        percent of adjusted income for rent; and
                            ``(ii) may require a public housing agency 
                        to modify the payment standard of the public 
                        housing agency based on the results of that 
                        review.
            ``(2) Amount of monthly assistance payment.--
                    ``(A) Families receiving tenant-based assistance; 
                rent does not exceed payment standard.--For a family 
                receiving tenant-based assistance under this title, if 
                the rent for that family (including the amount allowed 
                for tenant-paid utilities) does not exceed the payment 
                standard established under paragraph (1), the monthly 
                assistance payment to that family shall be equal to the 
                amount by which the rent exceeds the greatest of the 
                following amounts, rounded to the nearest dollar:
                            ``(i) Thirty percent of the monthly 
                        adjusted income of the family.
                            ``(ii) Ten percent of the monthly income of 
                        the family.
                            ``(iii) If the family is receiving payments 
                        for welfare assistance from a public agency and 
                        a part of those payments, adjusted in 
                        accordance with the actual housing costs of the 
                        family, is specifically designated by that 
                        agency to meet the housing costs of the family, 
                        the portion of those payments that is so 
                        designated.
                    ``(B) Families receiving tenant-based assistance; 
                rent exceeds payment standard.--For a family receiving 
                tenant-based assistance under this title, if the rent 
                for that family (including the amount allowed for 
                tenant-paid utilities) exceeds the payment standard 
                established under paragraph (1), the monthly assistance 
                payment to that family shall be equal to the amount by 
                which the applicable payment standard exceeds the 
                greatest of the following amounts, rounded to the 
                nearest dollar:
                            ``(i) Thirty percent of the monthly 
                        adjusted income of the family.
                            ``(ii) Ten percent of the monthly income of 
                        the family.
                            ``(iii) If the family is receiving payments 
                        for welfare assistance from a public agency and 
                        a part of those payments, adjusted in 
                        accordance with the actual housing costs of the 
                        family, is specifically designated by that 
                        agency to meet the housing costs of the family, 
                        the portion of those payments that is so 
                        designated.
                    ``(C) Families receiving project-based 
                assistance.--For a family receiving project-based 
                assistance under this title, the rent that the family 
                is required to pay shall be determined in accordance 
                with section 3(a)(1), and the amount of the housing 
                assistance payment shall be determined in accordance 
                with subsection (c)(3) of this section.
            ``(3) Forty percent limit.--At the time a family initially 
        receives tenant-based assistance under this title with respect 
        to any dwelling unit, the total amount that a family may be 
        required to pay for rent may not exceed 40 percent of the 
        monthly adjusted income of the family.
            ``(4) Eligible families.--At the time a family initially 
        receives assistance under this subsection, a family shall 
        qualify as--
                    ``(A) a very low-income family;
                    ``(B) a family previously assisted under this 
                title;
                    ``(C) a low-income family that meets eligibility 
                criteria specified by the public housing agency;
                    ``(D) a family that qualifies to receive a voucher 
                in connection with a homeownership program approved 
                under title IV of the Cranston-Gonzalez National 
                Affordable Housing Act; or
                    ``(E) a family that qualifies to receive a voucher 
                under section 223 or 226 of the Low-Income Housing 
                Preservation and Resident Homeownership Act of 1990.
            ``(5) Annual review of family income.--Each public housing 
        agency shall, not less frequently than annually, conduct a 
        review of the family income of each family receiving assistance 
        under this subsection.
            ``(6) Selection of families.--
                    ``(A) In general.--Each public housing agency may 
                establish local preferences consistent with the public 
                housing agency plan submitted by the public housing 
                agency under section 5A, including a preference for 
                families residing in public housing who are victims of 
                a crime of violence (as that term is defined in section 
                16 of title 18, United States Code) that has been 
                reported to an appropriate law enforcement agency.
                    ``(B) Selection of tenants.--The selection of 
                tenants shall be made by the owner of the dwelling 
                unit, subject to the annual contributions contract 
                between the Secretary and the public housing agency.
            ``(7) Lease.--Each housing assistance payment contract 
        entered into by the public housing agency and the owner of a 
        dwelling unit--
                    ``(A) shall provide that the screening and 
                selection of families for those units shall be the 
                function of the owner;
                    ``(B) shall provide that the lease between the 
                tenant and the owner shall be for a term of not less 
                than 1 year, except that the public housing agency may 
                approve a shorter term for an initial lease between the 
                tenant and the dwelling unit owner if the public 
                housing agency determines that such shorter term would 
                improve housing opportunities for the tenant and if 
                such shorter term is considered to be an acceptable 
                local market practice;
                    ``(C) shall provide that the dwelling unit owner 
                shall offer leases to tenants assisted under this 
                subsection that--
                            ``(i) are in a standard form used in the 
                        locality by the dwelling unit owner; and
                            ``(ii) contain terms and conditions that--
                                    ``(I) are consistent with State and 
                                local law; and
                                    ``(II) apply generally to tenants 
                                in the property who are not assisted 
                                under this section;
                    ``(D) shall provide that the dwelling unit owner 
                may not terminate the tenancy of any person assisted 
                under this subsection during the term of a lease that 
                meets the requirements of this section unless the owner 
                determines, on the same basis and in the same manner as 
                would apply to a tenant in the property who does not 
                receive assistance under this subsection, that--
                            ``(i) the tenant has committed a serious or 
                        repeated violation of the terms and conditions 
                        of the lease;
                            ``(ii) the tenant has violated applicable 
                        Federal, State, or local law; or
                            ``(iii) other good cause for termination of 
                        the tenancy exists;
                    ``(E) shall provide that any termination of tenancy 
                under this subsection shall be preceded by the 
                provision of written notice by the owner to the tenant 
                specifying the grounds for that action, and any relief 
                shall be consistent with applicable State and local 
                law; and
                    ``(F) may include any addenda appropriate to set 
                forth the provisions of this title.
            ``(8) Inspection of units by public housing agencies.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), for each dwelling unit for which a 
                housing assistance payment contract is established 
                under this subsection, the public housing agency 
                shall--
                            ``(i) inspect the unit before any 
                        assistance payment is made to determine whether 
                        the dwelling unit meets housing quality 
                        standards for decent safe housing established--
                                    ``(I) by the Secretary for purposes 
                                of this subsection; or
                                    ``(II) by local housing codes or by 
                                codes adopted by public housing 
                                agencies that--
                                            ``(aa) meet or exceed 
                                        housing quality standards; and
                                            ``(bb) do not severely 
                                        restrict housing choice; and
                            ``(ii) make not less than annual 
                        inspections during the contract term.
                    ``(B) Leasing of units owned by public housing 
                agency.--If an eligible family assisted under this 
                subsection leases a dwelling unit (other than public 
                housing) that is owned by a public housing agency 
                administering assistance under this subsection, the 
                Secretary shall require the unit of general local 
                government, or another entity approved by the 
                Secretary, to make inspections and rent determinations 
                as required by this paragraph.
            ``(9) Vacated units.--If an assisted family vacates a 
        dwelling unit for which rental assistance is provided under a 
        housing assistance contract before the expiration of the term 
        of the lease for the unit, rental assistance pursuant to such 
        contract may not be provided for the unit after the month 
        during which the unit was vacated.
            ``(10) Rent.--
                    ``(A) Reasonable market rent.--The rent for 
                dwelling units for which a housing assistance payment 
                contract is established under this subsection shall be 
                reasonable in comparison with rents charged for 
                comparable dwelling units in the private, unassisted, 
                local market, or for comparable dwelling units that are 
                in the assisted, local market.
                    ``(B) Negotiated rent.--A public housing agency 
                shall, at the request of a family receiving tenant-
                based assistance under this subsection, assist that 
                family in negotiating a reasonable rent with a dwelling 
                unit owner. A public housing agency shall review the 
                rent for a unit under consideration by the family (and 
                all rent increases for units under lease by the family) 
                to determine whether the rent (or rent increase) 
                requested by the owner is reasonable. If a public 
                housing agency determines that the rent (or rent 
                increase) for a dwelling unit is not reasonable, the 
                public housing agency shall not make housing assistance 
                payments to the owner under this subsection with 
                respect to that unit.
                    ``(C) Units exempt from local rent control.--If a 
                dwelling unit for which a housing assistance payment 
                contract is established under this subsection is exempt 
                from local rent control provisions during the term of 
                that contract, the rent for that unit shall be 
                reasonable in comparison with other units in the market 
                area that are exempt from local rent control 
                provisions.
                    ``(D) Timely payments.--Each public housing agency 
                shall make timely payment of any amounts due to a 
                dwelling unit owner under this subsection. The housing 
                assistance payment contract between the owner and the 
                public housing agency may provide for penalties for the 
                late payment of amounts due under the contract, which 
                shall be imposed on the public housing agency in 
                accordance with generally accepted practices in the 
                local housing market.
                    ``(E) Penalties.--Unless otherwise authorized by 
                the Secretary, each public housing agency shall pay any 
                penalties from administrative fees collected by the 
                public housing agency, except that no penalty shall be 
                imposed if the late payment is due to factors that the 
                Secretary determines are beyond the control of the 
                public housing agency.
            ``(11) Manufactured housing.--
                    ``(A) In general.--A public housing agency may make 
                assistance payments in accordance with this subsection 
                on behalf of a family that utilizes a manufactured home 
                as a principal place of residence. Such payments may be 
                made for the rental of the real property on which the 
                manufactured home owned by any such family is located.
                    ``(B) Rent calculation.--
                            ``(i) Charges included.--For assistance 
                        pursuant to this paragraph, the rent for the 
                        space on which a manufactured home is located 
                        and with respect to which assistance payments 
                        are to be made shall include maintenance and 
                        management charges and tenant-paid utilities.
                            ``(ii) Payment standard.--The public 
                        housing agency shall establish a payment 
                        standard for the purpose of determining the 
                        monthly assistance that may be paid for any 
                        family under this paragraph. The payment 
                        standard may not exceed an amount approved or 
                        established by the Secretary.
                            ``(iii) Monthly assistance payment.--The 
                        monthly assistance payment under this paragraph 
                        shall be determined in accordance with 
                        paragraph (2).
            ``(12) Contract for assistance payments.--
                    ``(A) In general.--If the Secretary enters into an 
                annual contributions contract under this subsection 
                with a public housing agency pursuant to which the 
                public housing agency will enter into a housing 
                assistance payment contract with respect to an existing 
                structure under this subsection--
                            ``(i) the housing assistance payment 
                        contract may not be attached to the structure 
                        unless the owner agrees to rehabilitate or 
                        newly construct the structure other than with 
                        assistance under this Act, and otherwise 
                        complies with this section; and
                            ``(ii) the public housing agency may 
                        approve a housing assistance payment contract 
                        for such existing structure for not more than 
                        15 percent of the funding available for tenant-
                        based assistance administered by the public 
                        housing agency under this section.
                    ``(B) Extension of contract term.--In the case of a 
                housing assistance payment contract that applies to a 
                structure under this paragraph, a public housing agency 
                may enter into a contract with the owner, contingent 
                upon the future availability of appropriated funds for 
                the purpose of renewing expiring contracts for 
                assistance payments, as provided in appropriations 
                Acts, to extend the term of the underlying housing 
                assistance payment contract for such period as the 
                Secretary determines to be appropriate to achieve long-
                term affordability of the housing. The contract shall 
                obligate the owner to have such extensions of the 
                underlying housing assistance payment contract accepted 
                by the owner and the successors in interest of the 
                owner.
                    ``(C) Rent calculation.--For project-based 
                assistance under this paragraph, housing assistance 
                payment contracts shall establish rents and provide for 
                rent adjustments in accordance with subsection (c).
                    ``(D) Adjusted rents.--With respect to rents 
                adjusted under this paragraph--
                            ``(i) the adjusted rent for any unit shall 
                        be reasonable in comparison with rents charged 
                        for comparable dwelling units in the private, 
                        unassisted, local market, or for comparable 
                        dwelling units that are in the assisted local 
                        market; and
                            ``(ii) the provisions of subsection 
                        (c)(2)(C) do not apply.
            ``(13) Inapplicability to tenant-based assistance.--
        Subsection (c) does not apply to tenant-based assistance under 
        this subsection.
            ``(14) Homeownership option.--
                    ``(A) In general.--A public housing agency 
                providing assistance under this subsection may, at the 
                option of the agency, provide assistance for 
                homeownership under subsection (y).
                    ``(B) Alternative administration.--A public housing 
                agency may contract with a nonprofit organization to 
                administer a homeownership program under subsection 
                (y).
            ``(15) Rental vouchers for relocation of witnesses and 
        victims of crime.--
                    ``(A) In general.--Of amounts made available for 
                assistance under this subsection in each fiscal year, 
                the Secretary, in consultation with the Inspector 
                General, shall make available such sums as may be 
                necessary for the relocation of witnesses in connection 
                with efforts to combat crime in public and assisted 
                housing pursuant to requests from law enforcement or 
                prosecution agencies.
                    ``(B) Victims of crime.--
                            ``(i) In general.--Of amounts made 
                        available for assistance under this section in 
                        each fiscal year, the Secretary shall make 
                        available such sums as may be necessary for the 
                        relocation of families residing in public 
                        housing who are victims of a crime of violence 
                        (as that term is defined in section 16 of title 
                        18, United States Code) that has been reported 
                        to an appropriate law enforcement agency.
                            ``(ii) Notice.--A public housing agency 
                        that receives amounts under this subparagraph 
                        shall establish procedures for providing notice 
                        of the availability of that assistance to 
                        families that may be eligible for that 
                        assistance.''.
    (b) Conforming Amendment.--Section 8(f)(6) of the United States 
Housing Act (42 U.S.C. 1437f(f)(6)) is amended by striking ``(d)(2)'' 
and inserting ``(o)(12)''.

SEC. 202. REPEAL OF FEDERAL PREFERENCES.

    (a) Section 8 Existing and Moderate Rehabilitation.--Section 
8(d)(1)(A) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(d)(1)(A)) is amended to read as follows:
            ``(A) the selection of tenants shall be the function of the 
        owner, subject to the annual contributions contract between the 
        Secretary and the agency, except that with respect to the 
        certificate and moderate rehabilitation programs only, for the 
        purpose of selecting families to be assisted, the public 
        housing agency may establish local preferences, consistent with 
        the public housing agency plan submitted by the public housing 
        agency under section 5A;''.
    (b) Section 8 New Construction and Substantial Rehabilitation.--
            (1) Repeal.--Section 545(c) of the Cranston-Gonzalez 
        National Affordable Housing Act (42 U.S.C. 1437f note) is 
        amended to read as follows:
    ``(c) [Reserved.]''.
            (2) Prohibition.--The provisions of section 8(e)(2) of the 
        United States Housing Act of 1937, as in existence on the day 
        before October 1, 1983, that require tenant selection 
        preferences shall not apply with respect to--
                    (A) housing constructed or substantially 
                rehabilitated pursuant to assistance provided under 
                section 8(b)(2) of the United States Housing Act of 
                1937, as in existence on the day before October 1, 
                1983; or
                    (B) projects financed under section 202 of the 
                Housing Act of 1959, as in existence on the day before 
                the date of enactment of the Cranston-Gonzalez National 
                Affordable Housing Act.
    (c) Rent Supplements.--Section 101(k) of the Housing and Urban 
Development Act of 1965 (12 U.S.C. 1701s(k)) is amended to read as 
follows:
    ``(k) [Reserved.]''.
    (d) Conforming Amendments.--
            (1) United states housing act of 1937.--The United States 
        Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended--
                    (A) in section 6(o), by striking ``preference rules 
                specified in'' and inserting ``written selection 
                criteria established pursuant to'';
                    (B) in section 8(d)(2)(A), by striking the last 
                sentence; and
                    (C) in section 8(d)(2)(H), by striking 
                ``Notwithstanding subsection (d)(1)(A)(i), an'' and 
                inserting ``An''.
            (2) Cranston-gonzalez national affordable housing act.--The 
        Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
        12704 et seq.) is amended--
                    (A) in section 455(a)(2)(D)(iii), by striking 
                ``would qualify for a preference under'' and inserting 
                ``meet the written selection criteria established 
                pursuant to''; and
                    (B) in section 522(f)(6)(B), by striking ``any 
                preferences for such assistance under section 
                8(d)(1)(A)(i)'' and inserting ``the written selection 
                criteria established pursuant to section 8(d)(1)(A)''.
            (3) Low-income housing preservation and resident 
        homeownership act of 1990.--The second sentence of section 
        226(b)(6)(B) of the Low-Income Housing Preservation and 
        Resident Homeownership Act of 1990 (12 U.S.C. 4116(b)(6)(B)) is 
        amended by striking ``requirement for giving preferences to 
        certain categories of eligible families under'' and inserting 
        ``written selection criteria established pursuant to''.
            (4) Housing and community development act of 1992.--Section 
        655 of the Housing and Community Development Act of 1992 (42 
        U.S.C. 13615) is amended by striking ``preferences for 
        occupancy'' and all that follows before the period at the end 
        and inserting ``selection criteria established by the owner to 
        elderly families according to such written selection criteria, 
        and to near-elderly families according to such written 
        selection criteria, respectively''.
            (5) References in other law.--Any reference in any Federal 
        law other than any provision of any law amended by paragraphs 
        (1) through (5) of this subsection or section 201 to the 
        preferences for assistance under section 8(d)(1)(A)(i) or 
        8(o)(3)(B) of the United States Housing Act of 1937, as those 
        sections existed on the day before the effective date of this 
        title, shall be considered to refer to the written selection 
        criteria established pursuant to section 8(d)(1)(A) or 
        8(o)(6)(A), respectively, of the United States Housing Act of 
        1937, as amended by this subsection and section 201 of this 
        Act.

SEC. 203. PORTABILITY.

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

SEC. 204. LEASING TO VOUCHER HOLDERS.

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

SEC. 205. HOMEOWNERSHIP OPTION.

    (a) In general.--Section 8(y) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(y)) is amended--
            (1) in paragraph (1)--
                    (A) by striking ``A family receiving'' and all that 
                follows 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 
                1 or more members of the family, and will be occupied 
                by the family, if the family'';
                    (B) in subparagraph (A), by inserting before the 
                semicolon ``, or owns or is acquiring shares in a 
                cooperative''; and
                    (C) in subparagraph (B)--
                            (i) by striking ``(i) participates'' and 
                        all that follows through ``(ii) demonstrates'' 
                        and inserting ``demonstrates''; and
                            (ii) by inserting ``, except that the 
                        Secretary may provide for the consideration of 
                        public assistance in the case of an elderly 
                        family or a disabled family'' after ``other 
                        than public assistance'';
            (2) by striking paragraph (2) and inserting the following:
            ``(2) Determination of amount of assistance.--
                    ``(A) Monthly expenses do not exceed payment 
                standard.--If the monthly homeownership expenses, as 
                determined in accordance with requirements established 
                by the Secretary, do not exceed the payment standard, 
                the monthly assistance payment shall be the amount by 
                which the homeownership expenses exceed the highest of 
                the following amounts, rounded to the nearest dollar:
                            ``(i) Thirty percent of the monthly 
                        adjusted income of the family.
                            ``(ii) Ten percent of the monthly income of 
                        the family.
                            ``(iii) If the family is receiving payments 
                        for welfare assistance from a public agency, 
                        and a portion of those payments, adjusted in 
                        accordance with the actual housing costs of the 
                        family, is specifically designated by that 
                        agency to meet the housing costs of the family, 
                        the portion of those payments that is so 
                        designated.
                    ``(B) Monthly expenses exceed payment standard.--If 
                the monthly homeownership expenses, as determined in 
                accordance with requirements established by the 
                Secretary, exceed the payment standard, the monthly 
                assistance payment shall be the amount by which the 
                applicable payment standard exceeds the highest of the 
                following amounts, rounded to the nearest dollar:
                            ``(i) Thirty percent of the monthly 
                        adjusted income of the family.
                            ``(ii) Ten percent of the monthly income of 
                        the family.
                            ``(iii) If the family is receiving payments 
                        for welfare assistance from a public agency and 
                        a part of those payments, adjusted in 
                        accordance with the actual housing costs of the 
                        family, is specifically designated by that 
                        agency to meet the housing costs of the family, 
                        the portion of those payments that is so 
                        designated.'';
            (3) by striking paragraphs (3) and (4) and inserting the 
        following:
            ``(3) Inspections and contract conditions.--
                    ``(A) In general.--Each contract for the purchase 
                of a unit to be assisted under this section shall--
                            ``(u) provide for pre-purchase inspection 
                        of the unit by an independent professional; and
                            ``(ii) require that any cost of necessary 
                        repairs be paid by the seller.
                    ``(B) Annual inspections not required.--The 
                requirement under subsection (o)(8)(A)(ii) for annual 
                inspections shall not apply to units assisted under 
                this section.
            ``(4) Other authority of the secretary.--The Secretary 
        may--
                    ``(A) limit the term of assistance for a family 
                assisted under this subsection; and
                    ``(B) modify the requirements of this subsection as 
                the Secretary determines to be necessary to make 
                appropriate adaptations for lease-purchase 
                agreements.'';
            (4) by striking paragraph (5); and
            (5) by redesignating paragraphs (6) through (8) as 
        paragraphs (5) through (7), respectively.
    (b) Demonstration.--
            (1) In general.--With the consent of the affected public 
        housing agencies, the Secretary may carry out (or contract with 
        1 or more entities to carry out) a demonstration program under 
        section 8(y) of the United States Housing Act of 1937 (42 
        U.S.C. 1437f(y)) to expand homeownership opportunities for low-
        income families.
            (2) Report.--The Secretary shall report annually to 
        Congress on activities conducted under this subsection.

SEC. 206. LAW ENFORCEMENT AND SECURITY PERSONNEL IN PUBLIC HOUSING.

    Section 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f) is amended by adding at the end the following:
    ``(cc) Law Enforcement and Security Personnel.--
            ``(1) In general.--Notwithstanding any other provision of 
        this Act, in the case of assistance attached to a structure, 
        for the purpose of increasing security for the residents of a 
        public housing project, an owner may admit, and assistance may 
        be provided to, police officers and other security personnel 
        who are not otherwise eligible for assistance under the Act).
            ``(2) Rent requirements.--With respect to any assistance 
        provided by an owner under this subsection, the Secretary may--
                    ``(A) permit the owner to establish such rent 
                requirements and other terms and conditions of 
                occupancy that the Secretary considers to be 
                appropriate; and
                    ``(B) require the owner to submit an application 
                for those rent requirements, which application shall 
                include such information as the Secretary, in the 
                discretion of the Secretary, determines to be 
                necessary.''.

SEC. 207. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Lower Income Housing Assistance.--Section 8 of the United 
States Housing Act of 1937 (42 U.S.C. 1437f) is amended--
            (1) in subsection (a), by striking the second and third 
        sentences;
            (2) in subsection (b)--
                    (A) in the subsection heading, by striking ``Rental 
                Certificates and''; and
                    (B) in the first undesignated paragraph--
                            (i) by striking ``The Secretary'' and 
                        inserting the following:
            ``(1) In general.--The Secretary''; and
                            (ii) by striking the second sentence;
            (3) in subsection (c)--
                    (A) in paragraph (3)--
                            (i) by striking ``(A)''; and
                            (ii) by striking subparagraph (B);
                    (B) in the first sentence of paragraph (4), by 
                striking ``or by a family that qualifies to receive'' 
                and all that follows through ``1990'';
                    (C) by striking paragraph (5) and redesignating 
                paragraph (6) as paragraph (5);
                    (D) by striking paragraph (7) and redesignating 
                paragraphs (8) through (10) as paragraphs (6) through 
                (8), respectively;
                    (E) effective on October 1, 1997, in paragraph (7), 
                as redesignated, by striking ``housing certificates or 
                vouchers under subsection (b) or'' and inserting ``a 
                voucher under subsection''; and
                    (F) in paragraph (8), as redesignated, by striking 
                ``(9)'' and inserting ``(7)'';
            (4) in subsection (d)--
                    (A) in paragraph (1)(B)(iii), by striking ``drug-
                related criminal activity on or near such premises'' 
                and inserting ``violent or drug-related criminal 
                activity on or off such premises, or any activity 
                resulting in a felony conviction'';
                    (B) in paragraph (2)--
                            (i) in subparagraph (A), by striking the 
                        third sentence and all that follows through the 
                        end of the subparagraph; and
                            (ii) by striking subparagraphs (B) through 
                        (E) and redesignating subparagraphs (F) through 
                        (H) as subparagraphs (B) through (D), 
                        respectively;
            (5) in subsection (f)--
                    (A) in paragraph (6), by striking ``(d)(2)'' and 
                inserting ``(o)(11)''; and
                    (B) in paragraph (7)--
                            (i) by striking ``(b) or''; and
                            (ii) by inserting before the period the 
                        following: ``and that provides for the eligible 
                        family to select suitable housing and to move 
                        to other suitable housing'';
            (6) by striking subsection (j) and inserting the following:
    ``(j) [Reserved.]'';
            (7) by striking subsection (n) and inserting the following:
    ``(n) [Reserved.]'';
            (8) in subsection (q)--
                    (A) in the first sentence of paragraph (1), by 
                striking ``certificate and housing voucher programs 
                under subsections (b) and (o)'' and inserting ``voucher 
                program under this section'';
                    (B) in paragraph (2)(A)(i), by striking 
                ``certificate and housing voucher programs under 
                subsections (b) and (o)'' and inserting ``voucher 
                program under this section''; and
                    (C) in paragraph (2)(B), by striking ``certificate 
                and housing voucher programs under subsections (b) and 
                (o)'' and inserting ``voucher program under this 
                section'';
            (9) in subsection (u)--
                    (A) in paragraph (2), by striking ``, 
                certificates''; and
                    (B) by striking ``certificates or'' each place that 
                term appears; and
            (10) in subsection (x)(2), by striking ``housing 
        certificate assistance'' and inserting ``tenant-based 
        assistance''.
    (b) Public Housing Homeownership and Management Opportunities.--
Section 21(b)(3) of the United States Housing Act of 1937 (42 U.S.C. 
1437s(b)(3)) is amended--
            (1) in the first sentence, by striking ``(at the option of 
        the family) a certificate under section 8(b)(1) or a housing 
        voucher under section 8(o)'' and inserting ``tenant-based 
        assistance under section 8''; and
            (2) by striking the second sentence.
    (c) Documentation of Excessive Rent Burdens.--Section 550(b) of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 1437f 
note) is amended--
            (1) in paragraph (1), by striking ``assisted under the 
        certificate and voucher programs established'' and inserting 
        ``receiving tenant-based assistance'';
            (2) in the first sentence of paragraph (2)--
                    (A) by striking ``, for each of the certificate 
                program and the voucher program'' and inserting ``for 
                the tenant-based assistance under section 8''; and
                    (B) by striking ``participating in the program'' 
                and inserting ``receiving tenant-based assistance''; 
                and
            (3) in paragraph (3), by striking ``assistance under the 
        certificate or voucher program'' and inserting ``tenant-based 
        assistance under section 8 of the United States Housing Act of 
        1937''.
    (d) Grants for Community Residences and Services.--Section 
861(b)(1)(D) of the Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 12910(b)(1)(D)) is amended by striking ``certificates or 
vouchers'' and inserting ``assistance''.
    (e) Section 8 Certificates and Vouchers.--Section 931 of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 1437c 
note) is amended by striking ``assistance under the certificate and 
voucher programs under sections 8(b) and (o) of such Act'' and 
inserting ``tenant-based assistance under section 8 of the United 
States Housing Act of 1937''.
    (f) Assistance for Displaced Residents.--Section 223(a) of the 
Housing and Community Development Act of 1987 (12 U.S.C. 4113(a)) is 
amended by striking ``assistance under the certificate and voucher 
programs under sections 8(b) and 8(o)'' and inserting ``tenant-based 
assistance under section 8''.
    (g) Rural Housing Preservation Grants.--Section 533(a) of the 
Housing Act of 1949 (42 U.S.C. 1490m(a)) is amended in the second 
sentence by striking ``assistance payments as provided by section 
8(o)'' and inserting ``tenant-based assistance as provided under 
section 8''.
    (h) Repeal of Moving to Opportunities for Fair Housing 
Demonstration.--Section 152 of the Housing and Community Development 
Act of 1992 (42 U.S.C. 1437f note) is repealed.
    (i) Preferences for Elderly Families and Persons.--Section 655 of 
the Housing and Community Development Act of 1992 (42 U.S.C. 13615) is 
amended by striking ``the first sentence of section 8(o)(3)(B)'' and 
inserting ``section 8(o)(6)(A)''.
    (j) Assistance for Troubled Multifamily Housing Projects.--Section 
201(m)(2)(A) of the Housing and Community Development Amendments of 
1978 (12 U.S.C. 1715z-1a(m)(2)(A)) is amended by striking ``section 
8(b)(1)'' and inserting ``section 8''.
    (k) Management and Disposition of Multifamily Housing Projects.--
Section 203(g)(2) of the Housing and Community Development Amendments 
of 1978 (12 U.S.C. 1701z-11(g)(2)) is amended by striking 
``8(o)(3)(B)'' and inserting ``8(o)(6)(A)''.

SEC. 208. IMPLEMENTATION.

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

SEC. 209. DEFINITION.

    In this title, the term ``public housing agency'' has the same 
meaning as section 3 of the United States Housing Act of 1937, except 
that such term shall also include any other nonprofit entity serving 
more than 1 local government jurisdiction that was administering the 
section 8 tenant-based assistance program pursuant to a contract with 
the Secretary or a public housing agency prior to the date of enactment 
of this Act.

SEC. 210. EFFECTIVE DATE.

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

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

    Section 8(d) of the United States Housing Act of 1937 is amended by 
adding at the end the following:
            ``(5) Recapture and reuse of annual contribution contract 
        project reserves.--
                    ``(A) Recapture.--To the extent that the Secretary 
                determines that the amount in the annual contribution 
                contract 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 public 
                housing agency, the Secretary shall recapture such 
                excess amount.
                    ``(B) Reuse.--The Secretary may hold any amounts 
                under this paragraph in reserve until needed to amend 
                or renew an annual contributions contract with any 
                public housing agency.''.

     TITLE III--SAFETY AND SECURITY IN PUBLIC AND ASSISTED HOUSING

SEC. 301. SCREENING OF APPLICANTS.

    (a) Ineligibility Because of Past Evictions.--
            (1) In general.--Any household or member of a household 
        evicted from federally assisted housing (as that term is 
        defined in section 305(1)) by reason of drug-related criminal 
        activity (as that term is defined in section 305(3)) or for 
        other serious violations of the terms or conditions of the 
        lease shall not be eligible for federally assisted housing--
                    (A) in the case of eviction by reason of drug-
                related criminal activity, for a period of not less 
                than 3 years from the date of the eviction unless the 
                evicted member of the household successfully completes 
                a rehabilitation program; and
                    (B) 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.
            (2) Waiver.--The requirements of subparagraphs (A) and (B) 
        of paragraph (1) may be waived if the circumstances leading to 
        eviction no longer exist.
    (b) Ineligibility of Illegal Drug Users and Alcohol Abusers.--
            (1) In general.--Notwithstanding any other provision of 
        law, a public housing agency shall establish standards that 
        prohibit admission to the program or admission to federally 
        assisted housing for any household with a member--
                    (A) who the public housing agency determines is 
                engaging in the illegal use of a controlled substance; 
                or
                    (B) with respect to whom the public housing agency 
                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.
            (2) Owners of federally assisted housing.--The Secretary 
        may require any owner of federally assisted housing to 
        establish admission standards under this subsection.
            (3) Consideration of rehabilitation.--In determining 
        whether, pursuant to paragraph (1)(B), 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 may consider whether such household member--
                    (A) has successfully completed a supervised drug or 
                alcohol rehabilitation program (as applicable) and is 
                no longer engaging in the illegal use of a controlled 
                substance or abuse of alcohol (as applicable);
                    (B) has otherwise been rehabilitated successfully 
                and is no longer engaging in the illegal use of a 
                controlled substance or abuse of alcohol (as 
                applicable); or
                    (C) is participating in a supervised drug or 
                alcohol rehabilitation program (as applicable) and is 
                no longer engaging in the illegal use of a controlled 
                substance or abuse of alcohol (as applicable).
    (c) Procedure for Receipt of Information From a Drug Abuse 
Treatment Facility About the Current Illegal Use of a Controlled 
Substance.--
            (1) Definitions.--In this subsection:
                    (A) Drug abuse treatment facility.--The term ``drug 
                abuse treatment facility'' means--
                            (i) an entity other than a general medical 
                        care facility; or
                            (ii) an identified unit within a general 
                        medical care facility which holds itself out as 
                        providing, and provides, diagnosis, treatment, 
                        or referral for treatment with respect to the 
                        illegal use of a controlled substance.
                    (B) Controlled substance.--The term ``controlled 
                substance'' has the meaning given the term in section 
                102 of the Controlled Substances Act (21 U.S.C. 802).
                    (C) Currently engaging in the illegal use of a 
                controlled substance.--The term ``currently engaging in 
                the illegal use of a controlled substance'' means the 
                illegal use of a controlled substance that occurred 
                recently enough to justify a reasonable belief that an 
                applicant's illegal use of a controlled substance is 
                current or that continuing illegal use of a controlled 
                substance by the applicant is a real and ongoing 
                problem.
            (2) Authority.--Notwithstanding any other provision of law 
        other than the Public Health Service Act (42 U.S.C. 201 et 
        seq.), a public housing agency may require each person who 
        applies for admission to public housing to sign 1 or more forms 
        of written consent authorizing the public housing agency to 
        receive information from a drug abuse treatment facility that 
        is solely related to whether the applicant is currently 
        engaging in the illegal use of a controlled substance.
            (3) Restrictions to protect the confidentiality of an 
        applicant's records.--
                    (A) Limitation on the kind and amount of 
                information requested on form of written consent.--In a 
                form of written consent, a public housing agency may 
                request only whether the drug abuse treatment facility 
                has reasonable cause to believe that the applicant is 
                currently engaging in the illegal use of a controlled 
                substance.
                    (B) Records management.--Each public housing agency 
                that receives information under this subsection from a 
                drug abuse treatment facility shall establish and 
                implement a system of records management that ensures 
                that any information received by the public housing 
                agency under this subsection--
                            (i) is maintained confidentially in 
                        accordance with section 543 of the Public 
                        Health Service Act (12 U.S.C. 290dd-2);
                            (ii) is not misused or improperly 
                        disseminated; and
                            (iii) is destroyed, as applicable--
                                    (I) not later than 5 business days 
                                after the date on which the public 
                                housing agency gives final approval for 
                                an application for admission; or
                                    (II) if the public housing agency 
                                denies the application for admission, 
                                in a timely manner after the date on 
                                which the statute of limitations for 
                                the commencement of a civil action from 
                                the applicant based upon that denial of 
                                admission has expired.
                    (C) Expiration of written consent.--In addition to 
                the requirements of subparagraph (B), an applicant's 
                signed written consent shall expire automatically after 
                the public housing agency has made a final decision to 
                either approve or deny the applicant's application for 
                admittance to public housing.
            (4) Restrictions to prohibit the discriminatory treatment 
        of applicants.--
                    (A) Forms signed.--A public housing agency may only 
                require an applicant for admission to public housing to 
                sign 1 or more forms of written consent under this 
                subsection if the public housing agency requires all 
                such applicants to sign the same form or forms of 
                written consent.
                    (B) Circumstances of inquiry.--A public housing 
                agency may only make an inquiry to a drug abuse 
                treatment facility under this subsection if--
                            (i) the public housing agency makes the 
                        same inquiry with respect to all applicants; or
                            (ii) the public housing agency only makes 
                        the same inquiry with respect to each and every 
                        applicant with respect to whom--
                                    (I) the public housing agency 
                                receives information from the criminal 
                                record of the applicant that indicates 
                                evidence of a prior arrest or 
                                conviction; or
                                    (II) the public housing agency 
                                receives information from the records 
                                of prior tenancy of the applicant that 
                                demonstrates that the applicant--
                                            (aa) engaged in the 
                                        destruction of property;
                                            (bb) engaged in violent 
                                        activity against another 
                                        person; or
                                            (cc) interfered with the 
                                        right of peaceful enjoyment of 
                                        the premises of another tenant.
            (5) Fee permitted.--A drug abuse treatment facility may 
        charge a public housing agency a reasonable fee for information 
        provided under this subsection.
            (6) Disclosure permitted by drug abuse treatment 
        facilities.--A drug abuse treatment facility shall not be 
        liable for damages based on any information required to be 
        disclosed pursuant to this subsection if such disclosure is 
        consistent with section 543 of the Public Health Service Act 
        (42 U.S.C. 290dd-2).
            (7) Public housing agencies not required to make inquiries 
        to drug abuse treatment facilities.--A public housing agency 
        shall not be liable for damages based on its decision not to 
        require each person who applies for admission to public housing 
        to sign 1 or more forms of written consent authorizing the 
        public housing agency to receive information from a drug abuse 
        treatment facility under this subsection.
            (8) Effective date.--This subsection shall take effect upon 
        enactment and without the necessity of guidance from, or any 
        regulation issued by, the Secretary.
    (d) Study and Report.--Not later than 1 year after the date of 
enactment of this Act, the Comptroller General of the United States 
shall conduct a study, and submit to the Committee on Banking, Housing, 
and Urban Affairs of the Senate a report that includes information 
relating to--
            (1) the proportion of United States public housing agencies 
        that screen applicants for drug and alcohol addiction;
            (2) the extent, if any, to which the screening described in 
        paragraph (1), alone or in combination with other initiatives, 
        has reduced crime in public housing; and
            (3) the relative value of different types of information 
        used by public housing agencies in the screening process 
        described in paragraph (1), including criminal records, credit 
        histories, tenancy records, and information from drug abuse 
        treatment facilities on current illegal drug use of applicants 
        (as that term is defined in subsection (c)(1)).
    (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 or assisted housing program under the 
jurisdiction of the public housing agency, that each adult member of 
the household 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.
    (f) Ineligibility of Sexually Violent Predators for Admission to 
Public Housing.--
            (1) In general.--Notwithstanding any other provision of 
        law, a public housing agency shall prohibit admission to public 
        or assisted housing of any family that includes any individual 
        who is a sexually violent predator.
            (2) Definition.--In this subsection, the term `sexually 
        violent predator' means an individual who--
                    (A) is a sexually violent predator (as that term is 
                defined in section 170101(a)(3) of the Violent Crime 
                Control and Law Enforcement Act of 1994 (42 U.S.C. 
                14071(a)(3))); and
                    (B) is subject to a registration requirement under 
                section 170101(a)(1)(B) or 170102(c) of the Violent 
                Crime Control and Law Enforcement Act of 1994 (42 
                U.S.C. 14071(a)(1)(B), 14072(c)), as provided under 
                section 170101(b)(6)(B) or 170102(d)(2), respectively, 
                of that Act.

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 or Repeated Lease 
Violation.--Notwithstanding 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 
or repeated 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, 
during the term of the lease--
            (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 resident, any member of the 
        resident's household, any guest, 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 residents 
                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, or any activity resulting in a 
                felony conviction.

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

    (a) In General.--
            (1) Provision of information.--Notwithstanding any other 
        provision of law other than paragraph (2), 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 
        residents of, the public housing program or assisted housing 
        program under the jurisdiction of the public housing agency 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) Information Regarding Crimes Committed By Sexually Violent 
Predators and Crimes Against Children.--
            (1) Definition of appropriate law enforcement agency.--In 
        this subsection, the term ``appropriate law enforcement 
        agency'' means--
                    (A) the Federal Bureau of Investigation;
                    (B) a State law enforcement agency designated as a 
                registration agency under a State registration program 
                under subtitle A of title XVII of the Violent Crime 
                Control and Law Enforcement Act of 1994 (42 U.S.C. 
                14071 et seq.); or
                    (C) any local law enforcement agency authorized by 
                a State law enforcement agency described in 
                subparagraph (B).
            (2) Provision of information.--Notwithstanding any other 
        provision of law other than subsection (a)(2), the appropriate 
        law enforcement agency shall provide to a public housing agency 
        any information collected under the national database 
        established pursuant to section 170102 of the Violent Crime 
        Control and Law Enforcement Act of 1994 (42 U.S.C. 14072), or 
        under a State registration program under subtitle A of title 
        XVII of the Violent Crime Control and Law Enforcement Act of 
        1994 (42 U.S.C. 14071 et seq.), as applicable, regarding an 
        adult who is an applicant for, or a resident of, federally 
        assisted housing, for purposes of applicant screening, lease 
        enforcement, or eviction, if the public housing agency--
                    (A) requests the information; and
                    (B) presents to the appropriate law enforcement 
                agency a written authorization, signed by the adult at 
                issue, for the release of that information to the 
                public housing agency or other owner of the federally 
                assisted housing.
    (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 resident or 
applicant with a copy of the criminal record and an opportunity to 
dispute the accuracy and relevance of that record.
    (d) 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.
    (e) Fee.--A public housing agency may be charged a reasonable fee 
for information provided under this section.
    (f) Definition of Adult.--In 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.

    In this title:
            (1) Federally assisted housing.--The term ``federally 
        assisted housing'' means a unit in--
                    (A) public housing under the United States Housing 
                Act of 1937;
                    (B) housing assisted under section 8 of the United 
                States Housing Act of 1937 including both tenant-based 
                assistance and project-based assistance;
                    (C) 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);
                    (D) housing that is assisted under section 202 of 
                the Housing Act of 1959 (as in existence immediately 
                before the date of enactment of the Cranston-Gonzalez 
                National Affordable Housing Act); and
                    (E) housing that is assisted under section 811 of 
                the Cranston-Gonzalez National Affordable Housing Act.
            (2) Drug-related criminal activity.--The term ``drug-
        related criminal activity'' means the illegal manufacture, 
        sale, distribution, use, or possession with intent to 
        manufacture, sell, distribute, or use, of a controlled 
        substance (as defined in section 102 of the Controlled 
        Substances Act (21 U.S.C. 802)).
            (3) 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.

    Section 6 of the United States Housing Act of 1937 (42 U.S.C. 
1437d) is amended--
            (1) in subsection (l) (as amended by section 107(f) of this 
        Act)--
                    (A) by striking paragraphs (4) and (5);
                    (B) by striking the last sentence; and
                    (C) by redesignating paragraphs (6) through (8) as 
                paragraphs (4) through (6), respectively;
            (2) by striking subsections (q) and (r); and
            (3) by redesignating subsection (s) (as added by section 
        109 of this Act) as subsection (q).

                   TITLE IV--MISCELLANEOUS PROVISIONS

SEC. 401. PUBLIC HOUSING FLEXIBILITY IN THE CHAS.

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

SEC. 402. DETERMINATION OF INCOME LIMITS.

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

SEC. 403. DEMOLITION OF PUBLIC HOUSING.

    Notwithstanding any other provision of law, beginning on the date 
of enactment of this Act, the public housing projects described in 
section 415 of the Department of Housing and Urban Development--
Independent Agencies Appropriations Act, 1988 (as in existence on April 
25, 1996) shall be eligible for demolition under--
            (1) section 9 of the United States Housing Act of 1937, as 
        amended by this Act; and
            (2) section 14 of the United States Housing Act of 1937, as 
        that section existed on the day before the date of enactment of 
        this Act.

SEC. 404. NATIONAL COMMISSION ON HOUSING ASSISTANCE PROGRAM COSTS.

    (a) Definitions.--In this section--
            (1) the term ``Commission'' means the National Commission 
        on Housing Assistance Program Costs established in subsection 
        (b);
            (2) the term ``Federal assisted housing programs'' means--
                    (A) the public housing program under the United 
                States Housing Act of 1937;
                    (B) the certificate program for rental assistance 
                under section 8(b)(1) of the United States Housing Act 
                of 1937;
                    (C) the voucher program for rental assistance under 
                section 8(o) of the United States Housing Act of 1937;
                    (D) the programs for project-based assistance under 
                section 8 of the United States Housing Act of 1937;
                    (E) the rental assistance payments program under 
                section 521(a)(2)(A) of the Housing Act of 1949;
                    (F) the program for housing for the elderly under 
                section 202 of the Housing Act of 1959;
                    (G) the program for housing for persons with 
                disabilities under section 811 of the Cranston-Gonzalez 
                National Affordable Housing Act;
                    (H) the program for financing housing by a loan or 
                mortgage insured under section 221(d)(3) of the 
                National Housing Act that bears interest at a rate 
                determined under the proviso of section 221(d)(5) of 
                such Act;
                    (I) the program under section 236 of the National 
                Housing Act;
                    (J) the program for constructed or substantial 
                rehabilitation under section 8(b)(2) of the United 
                States Housing Act of 1937, as in effect before October 
                1, 1983; and
                    (K) any other program for housing assistance 
                administered by the Secretary of Housing and Urban 
                Development or the Secretary of Agriculture, under 
                which occupancy in the housing assisted or housing 
                assistance provided is based on income, as the 
                Commission may determine; and
            (3) the term ``Secretary'' means the Secretary of Housing 
        and Urban Development.
    (b) Establishment; Purpose.--
            (1) Establishment.--There is established a commission to be 
        known as the ``National Commission on Housing Assistance 
        Program Costs''.
            (2) Purpose.--The purpose of the Commission shall be to 
        provide an objective and independent accounting and analysis of 
        the full cost to the Federal Government, public housing 
        agencies, State and local governments, and other entities, per 
        assisted household, of the Federal assisted housing programs, 
        taking into account the qualitative differences among Federal 
        assisted housing programs in accordance with applicable 
        standards of the Department of Housing and Urban Development.
    (c) Membership.--
            (1) Appointment.--The Commission shall be composed of 12 
        members, of whom--
                    (A) 1 member shall be the Inspector General of the 
                Department of Housing and Urban Development;
                    (B) 2 members shall be appointed by the Secretary;
                    (C) 2 members shall be appointed by the Chairman 
                and Ranking Minority Member of the Subcommittee on 
                Housing Opportunity and Community Development of the 
                Committee on Banking, Housing, and Urban Affairs of the 
                Senate and the Chairman and Ranking Minority Member of 
                the Subcommittee on VA, HUD, and Independent Agencies 
                of the Committee on Appropriations of the Senate;
                    (D) 2 members shall be appointed by the Chairman 
                and Ranking Minority Member of the Subcommittee on 
                Housing and Community Opportunity of the Committee on 
                Banking and Financial Services of the House of 
                Representatives and the Chairman and Ranking Minority 
                Member of the Subcommittee on VA, HUD, and Independent 
                Agencies of the Committee on Appropriations of the 
                House of Representatives;
                    (E) 1 member shall be appointed by the Majority 
                Leader of the Senate;
                    (F) 1 member shall be appointed by the Majority 
                Leader of the House of Representatives;
                    (G) 1 member shall be appointed by the Minority 
                Leader of the Senate;
                    (H) 1 member shall be appointed by the Minority 
                Leader of the House of Representatives; and
                    (I) 1 member shall be an ex-officio member 
                appointed by the Comptroller General of the United 
                States, from among officers and employees of the 
                General Accounting Office.
            (2) Initial appointments.--The initial members of the 
        Commission shall be appointed not later than 90 days after the 
        date of enactment of this Act.
            (3) Qualifications.--The members of the Commission 
        appointed under paragraph (1)--
                    (A) shall all be experts in the field of 
                accounting, economics, cost analysis, finance, or 
                management; and
                    (B) shall include--
                            (i) 1 individual who is a distinguished 
                        academic engaged in teaching or research;
                            (ii) 1 individual who is a business leader, 
                        financial officer, or management expert; and
                            (iii) 1 individual who is--
                                    (I) a financial expert employed in 
                                the private sector; and
                                    (II) knowledgeable about housing 
                                and real estate issues.
            (4) Additional qualifications.--In selecting members of the 
        Commission for appointment, the individual making the 
        appointment shall ensure that each member selected is able to 
        analyze the Federal assisted housing programs on an objective 
        basis, and that no individual is appointed to the Commission if 
        that individual has a personal financial interest, professional 
        association, or business interest in any Federal assisted 
        housing program, such that it would pose a conflict of interest 
        if that individual were appointed to the Commission.
    (d) Organization.--
            (1) Chairperson.--The Commission shall elect a chairperson 
        from among members of the Commission.
            (2) Quorum.--A majority of the members of the Commission 
        shall constitute a quorum for the transaction of business, but 
        a lesser number may hold hearings.
            (3) Voting.--
                    (A) In general.--Except as provided in subparagraph 
                (B), each member of the Commission shall be entitled to 
                1 vote, which shall be equal to the vote of every other 
                member of the Commission.
                    (B) Exception.--The member of the Commission 
                appointed pursuant to subsection (c)(1)(I) shall be a 
                nonvoting member of the Commission.
            (4) Vacancies.--Any vacancy on the Commission shall not 
        affect its powers, but shall be filled in the manner in which 
        the original appointment was made.
            (5) Prohibition on additional pay.--Members of the 
        Commission shall serve without compensation.
            (6) Travel expenses.--Each member shall receive travel 
        expenses, including per diem in lieu of subsistence, in 
        accordance with sections 5702 and 5703 of title 5, United 
        States Code.
    (e) Functions.--
            (1) In general.--The Commission shall--
                    (A) analyze the full cost to the Federal 
                Government, public housing agencies, State and local 
                governments, and other parties, per assisted household, 
                of the Federal assisted housing programs, and shall 
                conduct the analysis on a nationwide and regional basis 
                and in a manner such that accurate per unit cost 
                comparisons may be made between Federal assisted 
                housing programs, including grants, direct subsidies, 
                tax concessions, Federal mortgage insurance liability, 
                periodic renovation and rehabilitation, and 
                modernization costs, demolition costs, and other 
                ancillary costs such as security; and
                    (B) measure and evaluate qualitative differences 
                among Federal assisted housing programs in accordance 
                with applicable standards of the Department of Housing 
                and Urban Development.
            (2) Final report.--Not later than 24 months after the 
        initial members of the Commission are appointed pursuant to 
        subsection (c)(2), the Commission shall submit to the Secretary 
        and to the Congress a final report which shall contain the 
        results of the analysis and estimates required under paragraph 
        (1).
            (3) Limitation.--The Commission may not make any 
        recommendations regarding Federal housing policy.
    (f) Powers.--
            (1) Hearings.--The Commission may, for the purpose of 
        carrying out this section, hold such hearings and sit and act 
        at such times and places as the Commission may find advisable.
            (2) Rules and regulations.--The Commission may adopt such 
        rules and regulations as may be necessary to establish its 
        procedures and to govern the manner of its operations, 
        organization, and personnel.
            (3) Assistance from federal agencies.--
                    (A) Information.--The Commission may request from 
                any department or agency of the United States, and such 
                department or agency shall provide to the Commission in 
                a timely fashion, such data and information as the 
                Commission may require to carry out this section.
                    (B) Administrative support.--The General Services 
                Administration shall provide to the Commission, on a 
                reimbursable basis, such administrative support 
                services as the Commission may request.
                    (C) Personnel details and technical assistance.--
                Upon the request of the chairperson of the Commission, 
                the Secretary shall, to the extent possible and subject 
                to the discretion of the Secretary--
                            (i) detail any of the personnel of the 
                        Department of Housing and Urban Development, on 
                        a nonreimbursable basis, to assist the 
                        Commission in carrying out its duties under 
                        this section; and
                            (ii) provide the Commission with technical 
                        assistance in carrying out its duties under 
                        this section.
            (4) Information from local housing and management 
        authorities.--The Commission shall have access, for the purpose 
        of carrying out its functions under this section, to any books, 
        documents, papers, and records of a local housing and 
        management authority that are pertinent to this section and 
        assistance received pursuant to this section.
            (5) Mails.--The Commission may use the United States mails 
        in the same manner and under the same conditions as other 
        Federal agencies.
            (6) Contracting.--The Commission may, to the extent and in 
        such amounts as are provided in appropriations Acts, enter into 
        contracts necessary to carry out its duties under this section.
            (7) Staff.--
                    (A) Executive director.--The Commission shall 
                appoint an executive director of the Commission who 
                shall be compensated at a rate fixed by the Commission, 
                not to exceed the rate established for level V of the 
                Executive Schedule under title 5, United States Code.
                    (B) Personnel.--In addition to the executive 
                director, the Commission may appoint and fix the 
                compensation of such personnel as it deems advisable, 
                in accordance with the provisions of title 5, United 
                States Code, governing appointments to the competitive 
                service, and the provisions of chapter 51 and 
                subchapter III of chapter 53 of such title, relating to 
                classification and General Schedule pay rates.
                    (C) Limitation.--Subparagraphs (A) and (B) shall be 
                effective only to the extent and in such amounts as are 
                provided in appropriations Acts.
                    (D) Selection criteria.--In appointing an executive 
                director and staff, the Commission shall ensure that 
                the individuals appointed can conduct any functions 
                they may have regarding the Federal assisted housing 
                programs on an objective basis and that no such 
                individual has a personal financial or business 
                interest in any such program.
            (8) Advisory committee.--The Commission shall be considered 
        an advisory committee within the meaning of the Federal 
        Advisory Committee Act (5 U.S.C. App.).
    (g) Funding.--Of any amounts made available to the Department of 
Housing and Urban Development for each of fiscal years 1998 and 1999, 
there shall be available $4,500,000 to carry out this section.
    (h) Sunset.--The Commission shall terminate upon the expiration of 
the 24-month period beginning on the date on which the initial members 
of the Commission are appointed pursuant to subsection (c)(2).

SEC. 405. TECHNICAL CORRECTION OF PUBLIC HOUSING AGENCY OPT-OUT 
              AUTHORITY.

    Section 214(h)(2)(A) of the Housing and Community Development Act 
of 1980 (42 U.S.C. 1436(h)(2)(A)) is amended by striking ``this 
section'' and inserting ``paragraph (1) of this subsection''.

SEC. 406. REVIEW OF DRUG ELIMINATION PROGRAM CONTRACTS.

    (a) Requirement.--The Secretary shall investigate all security 
contracts awarded by grantees under the Public and Assisted Housing 
Drug Elimination Act of 1990 (42 U.S.C. 11901 et seq.) that are public 
housing agencies that own or operate more than 4,500 public housing 
dwelling units--
            (1) to determine whether the contractors under such 
        contracts have complied with all laws and regulations regarding 
        prohibition of discrimination in hiring practices;
            (2) to determine whether such contracts were awarded in 
        accordance with the applicable laws and regulations regarding 
        the award of such contracts;
            (3) to determine how many such contracts were awarded under 
        emergency contracting procedures;
            (4) to evaluate the effectiveness of the contracts; and
            (5) to provide a full accounting of all expenses under the 
        contracts.
    (b) Report.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall complete the investigation 
required under subsection (a) and submit a report to Congress regarding 
the findings under the investigation. With respect to each such 
contract, the report shall--
            (1) state whether the contract was made and is operating, 
        or was not made or is not operating, in full compliance with 
        applicable laws and regulations; and
            (2) for each contract that the Secretary determines is in 
        such compliance issue a personal certification of such 
        compliance by the Secretary.
    (c) Actions.--For each contract that is described in the report 
under subsection (b) as not made or not operating in full compliance 
with applicable laws and regulations, the Secretary shall promptly take 
any actions available under law or regulation that are necessary--
            (1) to bring such contract into compliance; or
            (2) to terminate the contract.
    (d) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 407. TREATMENT OF PUBLIC HOUSING AGENCY REPAYMENT AGREEMENT.

    (a) Limitation on Secretary.--During the 2-year period beginning on 
the date of the enactment of this Act, if the Housing Authority of the 
City of Las Vegas, Nevada, is otherwise in compliance with the 
Repayment Lien Agreement and Repayment Plan approved by the Secretary 
on February 12, 1997, the Secretary of Housing and Urban Development 
shall not take any action that has the effect of reducing the inventory 
of senior citizen housing owned by such housing authority that does not 
receive assistance from the Department of Housing and Urban 
Development.
    (b) Alternative Repayment Options.--During the period referred to 
in subsection (a), the Secretary shall assist the housing authority 
referred to in such subsection to identify alternative repayment 
options to the plan referred to in such subsection and to execute an 
amended repayment plan that will not adversely affect the housing 
referred to in such subsection.
    (c) Rule of Construction.--This section may not be construed to 
alter--
            (1) any lien held by the Secretary pursuant to the 
        agreement referred to in subsection (a); or
            (2) the obligation of the housing authority referred to in 
        subsection (a) to close all remaining items contained in the 
        Inspector General audits numbered 89 SF 1004 (issued January 
        20, 1989), 93 SF 1801 (issued October 30, 1993), and 96 SF 1002 
        (issued February 23, 1996).

SEC. 408. CEILING RENTS FOR CERTAIN SECTION 8 PROPERTIES.

    Notwithstanding any other provision of law, upon the request of the 
owner of the project, the Secretary may establish ceiling rents for the 
Marshall Field Garden Apartments Homes in Chicago, Illinois, if the 
ceiling rents are, in the determination of the Secretary, equivalent to 
rents for comparable properties.

SEC. 409. SENSE OF CONGRESS.

    It is the sense of Congress that, each public housing agency 
involved in the selection of residents under the United States Housing 
Act of 1937 (including section 8 of that Act) should, consistent with 
the public housing agency plan of the public housing agency, consider 
preferences for individuals who are victims of domestic violence.

SEC. 410. OTHER REPEALS.

    The following provisions of law are repealed:
            (1) Report regarding fair housing objectives.--Section 153 
        of the Housing and Community Development Act of 1992 (42 U.S.C. 
        1437f note).
            (2) Special projects for elderly or handicapped families.--
        Section 209 of the Housing and Community Development Act of 
        1974 (42 U.S.C. 1438).
            (3) Local housing assistance plans.--Subsection (c) of 
        section 213 of the Housing and Community Development Act of 
        1974 (42 U.S.C. 1439(c)).
            (4) Miscellaneous provisions.--Subsections (b)(1), (c), and 
        (d) of section 326 of the Housing and Community Development 
        Amendments of 1981 (Public Law 97-35, 95 Stat. 406; 42 U.S.C. 
        1437f note).
            (5) Public housing childhood development.--Section 222 of 
        the Housing and Urban-Rural Recovery Act of 1983 (12 U.S.C. 
        1701z-6 note).
            (6) Indian housing childhood development.--Section 518 of 
        the Cranston-Gonzalez National Affordable Housing Act (12 
        U.S.C. 1701z-6 note).
            (7) Public housing one-stop perinatal services 
        demonstration.--Section 521 of the Cranston-Gonzalez National 
        Affordable Housing Act (42 U.S.C. 1437t note).
            (8) Public housing mincs demonstration.--Section 522 of the 
        Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
        1437f note).
            (9) Public housing energy efficiency demonstration.--
        Section 523 of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 1437g note).
            (10) Public and assisted housing youth sports programs.--
        Section 520 of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 11903a).

SEC. 411. GUARANTEE OF LOANS FOR ACQUISITION OF PROPERTY.

    Notwithstanding section 108(b) of the Housing and Community 
Development Act of 1974 (42 U.S.C. 5308(b)), with respect to any 
eligible public entity (or any public agency designated by an eligible 
public entity) receiving assistance under that section (in this section 
referred to as the ``issuer''), a guarantee or commitment to guarantee 
may be made with respect to any note or other obligation under such 
section 108 if the issuer's total outstanding notes or obligations 
guaranteed under that section (excluding any amount defeased under the 
contract entered into under section 108(d)(1)(A) of the Housing and 
Community Development Act of 1974 (42 U.S.C. 5308(d)(1)(A))) would 
thereby exceed an amount equal to 5 times the amount of the grant 
approval for the issuer pursuant to section 106 or 107 of the Housing 
and Community Development Act of 1974, if the issuer's total 
outstanding notes or obligations guaranteed under that section 
(excluding any amount defeased under the contract entered into under 
section 108(d)(1)(A) of the Housing and Community Development Act of 
1974 (42 U.S.C. 5308(d)(1)(A))) would not thereby exceed an amount 
equal to 6 times the amount of the grant approval for the issuer 
pursuant to section 106 or 107 of the Housing and Community Development 
Act of 1974, if the additional grant amount is used only for the 
purpose of acquiring or transferring the ownership of the production 
facility located at the following address in order to maintain 
production: One Prince Avenue, Lowell, Massachusetts 01852.

SEC. 412. PROHIBITION ON USE OF ASSISTANCE FOR EMPLOYMENT RELOCATION 
              ACTIVITIES.

    Section 105 of the Housing and Community Development Act of 1974 
(42 U.S.C. 5305) is amended by adding at the end the following:
    ``(h) Prohibition on Use of Assistance for Employment Relocation 
Activities.--Notwithstanding any other provision of law, no amount from 
a grant under section 106 made in fiscal year 1997 or any succeeding 
fiscal year may be used to directly assist in the relocation of any 
industrial or commercial plant, facility, or operation, from 1 area to 
another area, if the relocation is likely to result in an increase in 
the unemployment rate in the labor market area from which the 
relocation occurs.''.

SEC. 413. USE OF HOME FUNDS FOR PUBLIC HOUSING MODERNIZATION.

    Notwithstanding section 212(d)(5) of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12742(d)(5)), amounts made available 
to the City of Bismarck, North Dakota or the State of North Dakota, 
under subtitle A of title II of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12741 et seq.) for fiscal year 1998, 
1999, 2000, 2001, or 2002, may be used to carry out activities 
authorized under section 14 of the United States Housing Act of 1937 
(42 U.S.C. 1437l) for the purpose of modernizing the Crescent Manor 
public housing project located at 107 East Bowen Avenue, in Bismarck, 
North Dakota, if--
            (1) the Burleigh County Housing Authority (or any successor 
        public housing agency that owns or operates the Crescent Manor 
        public housing project) has obligated all other Federal 
        assistance made available to that public housing agency for 
        that fiscal year; or
            (2) the Secretary of Housing and Urban Development 
        authorizes the use of those amounts for the purpose of 
        modernizing that public housing project, which authorization 
        may be made with respect to 1 or more of those fiscal years.

SEC. 414. REPORT ON SINGLE FAMILY AND MULTIFAMILY HOMES.

    Not later than March 1, 1998, the Inspector General of the 
Department of Housing and Urban Development shall submit to Congress a 
report, which shall include information relating to--
            (1) with respect to 1- to 4-family dwellings owned by the 
        Department of Housing and Urban Development as of November 1, 
        1997--
                    (A) the total number of units in those dwellings;
                    (B) the number and percentage of units in those 
                dwellings that are unoccupied, and their average period 
                of vacancy, as of that date; and
                    (C) the number and percentage of units in those 
                dwellings that have been unoccupied for more than 1 
                year, as of that date;
            (2) with respect to multifamily housing projects (as that 
        term is defined in section 203 of the Housing and Community 
        Development Amendments of 1978) owned by the Department of 
        Housing and Urban Development as of November 1, 1997--
                    (A) the total number of units in those projects;
                    (B) the number and percentage of units in those 
                projects that are unoccupied, and their average period 
                of vacancy, as of that date;
                    (C) the number and percentage of units in those 
                projects that have been unoccupied for more than 1 
                year, as of that date; and
                    (D) the number and percentage of units in those 
                projects that are determined by the Inspector General 
                to be substandard, based on any--
                            (i) lack of hot or cold piped water;
                            (ii) lack of working toilets;
                            (iii) regular and prolonged breakdowns in 
                        heating;
                            (iv) dangerous electrical problems;
                            (v) unsafe hallways or stairways;
                            (vi) leaking roofs, windows, or pipes;
                            (vii) open holes in walls and ceilings; and
                            (viii) indications of rodent infestation; 
                        and
            (3) the causes of the vacancies described in subparagraphs 
        (B) and (C) of paragraph (1), and subparagraphs (B) and (C) of 
        paragraph (2), and the programs of the Department of Housing 
        and Urban Development that are, as of November 1, 1997, 
        targeted to rectifying those causes.

            Passed the Senate September 26, 1997.

            Attest:

                                                    GARY SISCO,

                                                             Secretary.