[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2721 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2721

   To improve the voucher rental assistance program under the United 
          States Housing Act of 1937, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                July 11 (legislative day, July 10), 2002

   Mr. Sarbanes (for himself, Mr. Reed, Mr. Schumer, Mr. Carper, Ms. 
 Stabenow, Mr. Corzine, and Mr. Akaka) introduced the following bill; 
which was read twice and referred to the Committee on Banking, Housing, 
                           and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
   To improve the voucher rental assistance program under the United 
          States Housing Act of 1937, 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.

    This Act may be cited as the ``Housing Voucher Improvement Act of 
2002''.

SEC. 2. PURPOSES.

    The purposes of this Act are to--
            (1) ensure that the section 8 tenant-based assistance 
        program works effectively, and all families receiving tenant-
        based housing assistance are able to find decent, safe, and 
        affordable housing;
            (2) provide families receiving housing assistance with the 
        widest range of possibilities for where to live, and the 
        opportunity to live in areas accessible to jobs, educational 
        opportunities, and other economic opportunities; and
            (3) assist families receiving housing assistance in 
        reaching their educational and employment goals by promoting 
        self-sufficiency programs and encouraging partnerships between 
        public housing agencies and agencies that administer welfare 
        programs.

SEC. 3. PROJECT-BASED VOUCHERS AND THRIFTY VOUCHERS.

    (a) In General.--Section 8(o)(13) of the United States Housing Act 
of 1937 (42 U.S.C. 1437f(o)(13)) is amended--
            (1) in subparagraph (A), by adding after the period at the 
        end the following: ``In assessing the performance of a public 
        housing agency in administering assistance provided under this 
        subsection, the Secretary shall not consider budget authority 
        committed to project-based use under this paragraph to be 
        unutilized by the agency if the decision of that agency not to 
        utilize that authority is reasonably necessary to ensure that 
        the agency will be able to meet its obligation to provide 
        assistance promptly when the units to which such assistance is 
        attached become available for occupancy.'';
            (2) in subparagraph (C)(ii), by inserting before the period 
        at the end the following: ``, revitalizing a low-income 
        community, or preventing the displacement of extremely low-
        income families'';
            (3) in subparagraph (D)(ii), by striking ``apply in the 
        case of'' and all that follows through the period and inserting 
        the following: ``apply--
                                    ``(I) in the case of assistance 
                                under a contract for housing consisting 
                                of single family properties (buildings 
                                with 1 to 4 units);
                                    ``(II) for dwelling units that are 
                                specifically made available for 
                                households comprised of elderly 
                                families or disabled families; or
                                    ``(III) outside of a qualified 
                                census tract, for buildings with 5 to 
                                25 units or with dwelling units that 
                                are specifically made available for 
                                families receiving supportive services.
                        For purposes of this clause, the term 
                        `qualified census tract' has the same meaning 
                        given that term in section 42(d) of the 
                        Internal Revenue Code of 1986 (26 U.S.C. 
                        42(d)). The Secretary may waive the limitations 
                        of this clause, consistent with the obligation 
                        to affirmatively further fair housing 
                        practices.'';
            (4) in subparagraph (F), by striking ``10 years'' and 
        inserting ``15 years'';
            (5) in subparagraph (J)--
                    (A) in the first sentence, by inserting before the 
                period the following: ``, or from 1 or more separate 
                project-based waiting lists established and maintained 
                in accordance with subparagraph (K). A public housing 
                agency may permit an owner to select families from a 
                waiting list for units assisted under this paragraph 
                maintained by the owner in accordance with subparagraph 
                (L). Regardless of whether a waiting list is maintained 
                under this subparagraph or under subparagraph (K) or 
                (L), families shall initially be selected from the 
                public housing agency's waiting list for assistance 
                under this subsection for at least \1/2\ of the vacant 
                units in a building made available with assistance 
                under this paragraph, unless the units are restricted 
                under the tenant selection preferences adopted under 
                the annual plan submitted by the public housing agency 
                to the Secretary pursuant to section 5A(b) to occupancy 
                by persons who are receiving intensive publicly funded 
                services and who have a disability, as defined in 
                section 3 of this Act or section 422 of the McKinney-
                Vento Homeless Assistance Act (42 U.S.C. 11382)'';
                    (B) in the fifth sentence, by inserting before the 
                period the following: ``, unless the owner maintains a 
                waiting list under subparagraph (L)''; and
                    (C) in the last sentence, by striking ``and may 
                maintain'' and all that follows through ``on the 
                separate list'';
            (6) by redesignating subparagraph (K) as subparagraph (M);
            (7) by inserting after subparagraph (J) the following:
                    ``(K) Public housing agency waiting list.--
                            ``(i) In general.--A public housing agency 
                        may select families for assistance--
                                    ``(I) using its waiting list for 
                                tenant-based assistance under this 
                                subsection;
                                    ``(II) under this subparagraph for 
                                each property that receives assistance 
                                under this paragraph; or
                                    ``(III) under this subparagraph for 
                                similar properties that receive 
                                assistance under this paragraph.
                            ``(ii) Requirements.--A public housing 
                        agency that maintains a separate waiting list 
                        under this subparagraph--
                                    ``(I) shall provide notice of the 
                                opening of the waiting list in the same 
                                manner required by the Secretary for 
                                the provision of notice of the opening 
                                of the waiting list for tenant-based 
                                assistance under this subsection, 
                                except that this subclause shall not 
                                apply to units assisted under this 
                                paragraph that are restricted, under 
                                tenant selection preferences adopted 
                                under the annual plan submitted by the 
                                public housing agency to the Secretary 
                                pursuant to section 5A(b) to occupancy 
                                by persons who are receiving intensive 
                                publicly funded services and who have a 
                                disability, as defined in section 3 of 
                                this Act or section 422 of the 
                                McKinney-Vento Homeless Assistance Act 
                                (42 U.S.C. 11382);
                                    ``(II) shall give preference to 
                                families on its tenant-based waiting 
                                list, if families are applying at the 
                                equivalent time and date with otherwise 
                                equivalent preference under the annual 
                                plan submitted by the public housing 
                                agency to the Secretary pursuant to 
                                section 5A(b); and
                                    ``(III) shall notify families that 
                                are applying for tenant-based 
                                assistance of the opportunity to be 
                                listed on the waiting list maintained 
                                under this subparagraph, except that 
                                this subclause shall not apply to units 
                                assisted under this paragraph that are 
                                restricted under tenant selection 
                                preferences adopted under the annual 
                                plan submitted by the public housing 
                                agency to the Secretary pursuant to 
                                section 5A(b) to occupancy by persons 
                                who are receiving intensive publicly 
                                funded services and who have a 
                                disability, as defined in section 3 of 
                                this Act or section 422 of the 
                                McKinney-Vento Homeless Assistance Act 
                                (42 U.S.C. 11382).
                    ``(L) Owner waiting list.--
                            ``(i) In general.--A public housing agency 
                        may allow an owner of a structure with a 
                        contract for assistance under this paragraph to 
                        maintain a waiting list for units assisted 
                        under this paragraph.
                            ``(ii) Agency plan.--The policy for a 
                        waiting list maintained under this subparagraph 
                        and any applicable preferences or selection 
                        criteria shall be included in the annual plan 
                        submitted by the public housing agency to the 
                        Secretary in accordance with section 5A(b).
                            ``(iii) Agency responsibilities.--If a 
                        waiting list is maintained under this 
                        subparagraph, the public housing agency shall--
                                    ``(I) provide notice of the opening 
                                of the waiting list in the same manner 
                                and to the same extent as is required 
                                of the agency under subparagraph 
                                (K)(ii)(I);
                                    ``(II) notify families that apply 
                                for tenant-based assistance of the 
                                opportunity to be listed on that 
                                waiting list, except that this 
                                subclause shall not apply to units 
                                assisted under this paragraph that are 
                                restricted under tenant selection 
                                preferences adopted under the annual 
                                plan submitted by the public housing 
                                agency to the Secretary pursuant to 
                                section 5A(b) to occupancy by persons 
                                who are receiving intensive publicly 
                                funded services and who have a 
                                disability, as defined in section 3 of 
                                this Act of section 422 of the 
                                McKinney-Vento Homeless Assistance Act 
                                (42 U.S.C. 11382);
                                    ``(III) establish a mechanism to 
                                transmit applications submitted at its 
                                office to the owner for placement on 
                                that waiting list; and
                                    ``(IV) monitor, at reasonable 
                                intervals, the compliance by the owner 
                                with laws applicable to tenant 
                                selection and waiting lists, including 
                                civil rights laws, regulations, and 
                                certifications.
                            ``(iv) Owner responsibilities.--If a 
                        waiting list is maintained under this 
                        subparagraph, the owner of the structure 
                        shall--
                                    ``(I) provide notice of the opening 
                                of the waiting list (unless the public 
                                housing agency agrees to provide such 
                                notice for the owner, or notice is not 
                                required pursuant to clause (iii)(I)) 
                                and provide preference to families on 
                                the tenant-based waiting list of the 
                                public housing agency in the same 
                                manner as is required under 
                                subparagraph (K);
                                    ``(II) place on its waiting list, 
                                families that apply at an office of the 
                                agency that accepts applications for 
                                tenant-based assistance;
                                    ``(III) cooperate with requests of 
                                the public housing agency for 
                                information concerning the waiting list 
                                and the tenant selection decisions of 
                                the owner; and
                                    ``(IV) submit written tenant 
                                selection policies and criteria to the 
                                public housing agency for approval, and 
                                make those policies and criteria 
                                available to the public.
                            ``(v) Right to informal review.--A family 
                        that is denied a unit by an owner that 
                        maintains a waiting list under this 
                        subparagraph shall have the same rights to 
                        informal review by a public housing agency as a 
                        family that is denied tenant-based assistance 
                        by a public housing agency, and such review 
                        shall be performed expeditiously so as not to 
                        impede the timely rental of units. The public 
                        housing agency's review at the informal hearing 
                        shall be limited to determining if the owner, 
                        if denying admission, followed applicable law 
                        and the procedures and criteria adopted by the 
owner and approved by the public housing agency for determining the 
eligibility of applicants for admission.
                            ``(vi) Applicability.--Except as provided 
                        in this subparagraph, a waiting list maintained 
                        by an owner shall be considered to be a waiting 
                        list maintained by a public housing agency for 
                        assistance under this subsection.''; and
            (8) by adding at the end the following:
                    ``(N) Fair housing, subsidy layering, and 
                competitive selection requirements.--A public housing 
                agency may attach assistance under this paragraph to 
                units without specific approval by the Secretary of 
                compliance with fair housing, subsidy layering, or 
                competitive selection requirements, if--
                            ``(i) for fair housing compliance, the 
                        units proposed to receive assistance under this 
                        paragraph receive a grant or a loan under a 
                        Federal program pursuant to which the 
                        Secretary, or a designee of the Secretary, has 
                        determined in accordance with regulations that 
                        the site location would meet applicable civil 
                        rights and fair housing requirements;
                            ``(ii) for compliance with subsidy layering 
                        requirements, consistent with the written 
                        policy of the Secretary, the public housing 
                        agency or another public agency has determined 
                        that addition of subsidies under this paragraph 
                        would not duplicate other public funding; or
                            ``(iii) for compliance with competitive 
                        selection requirements, an advertisement for 
                        capital funds announced the potential for 
                        availability of assistance under this 
                        paragraph.
                    ``(O) Use of assistance in conjunction with public 
                housing capital funds.--
                            ``(i) Capital fund and hope vi.--
                        Notwithstanding any provision to the contrary 
                        in this Act, a public housing agency may attach 
                        assistance under this paragraph to a structure 
                        or unit that receives assistance allocated to 
                        the public housing agency under the Capital 
                        Fund, established by section 9(d), or under 
                        section 24.
                            ``(ii) Operating fund.--A unit that 
                        receives assistance under this paragraph shall 
                        not be eligible for assistance under the 
                        Operating Fund established by section 9(e).
                    ``(P) Thrifty vouchers.--
                            ``(i) In general.--For the purpose of 
                        encouraging the production or preservation of 
                        housing affordable to extremely low-income 
                        families, a public housing agency may use 
                        amounts provided under an annual contributions 
                        contract under this subsection to enter into a 
                        housing assistance payment contract for Thrifty 
                        Voucher assistance that is attached to the 
                        structure. Except as otherwise specified in 
                        this paragraph, such housing assistance 
                        contract shall be subject to the limitations 
                        and requirements of subparagraphs (A), (B), 
                        (C), (D), (E), (F), (G), (J), (K), (L), (M), 
                        (N), and (O).
                            ``(ii) Use for new production, substantial 
                        rehabilitation, and preservation.--Assistance 
                        under this paragraph may only be attached to a 
                        structure that is newly constructed, acquired 
                        for preservation as affordable housing, or 
                        substantially rehabilitated.
                            ``(iii) Eligible families.--A prospective 
                        tenant of a unit that is assisted under this 
                        subparagraph must qualify as an extremely low-
                        income family at the commencement of the 
                        proposed occupancy by the tenant.
                            ``(iv) Limitation.--Assistance under this 
                        subparagraph may not be attached to more than 
                        25 percent of the units in a building. For 
                        purposes of this clause, a project consisting 
                        of single family structures shall be treated as 
                        1 building if the single family structures are 
                        owned, and constructed, substantially 
                        rehabilitated, or acquired for preservation 
                        under a common plan.
                            ``(v) Rent calculation.--
                                    ``(I) In general.--A housing 
                                assistance payment contract entered 
                                into under this subparagraph shall 
                                establish the gross rent for each unit 
                                assisted in an amount equal to the per 
                                unit operating cost of the property 
                                plus the applicable utility allowance 
                                of the public housing agency for 
                                tenant-paid utilities. An owner may 
                                accept a gross rent that is less than 
                                the per unit operating cost of the 
                                property plus the applicable utility 
                                allowance, if the gross rent exceeds 
                                the limitation under subclause (IV).
                                    ``(II) Unit operating cost.--As 
                                used in this subparagraph, the unit 
                                operating cost is the allocable share 
                                of the ordinary and customary expenses 
                                of the unit incurred to operate the 
                                property, including applicable owner-
                                paid utilities, contribution to the 
                                replacement reserve, asset management 
                                fees, and a cash flow allowance equal 
                                to 15 percent of all other allocable 
                                operating costs. A public housing 
                                agency shall require an owner to 
                                demonstrate that the unit operating 
                                cost for units assisted under this 
                                subparagraph does not exceed the 
                                operating cost of other units in the 
                                property that are not assisted under 
                                this subparagraph, with appropriate 
                                adjustments for unit size, and shall 
                                establish policies to ensure that 
                                expenses included in the unit operating 
                                cost that are paid to the owner or a 
                                related entity are reasonable and 
                                consistent with prevailing costs in the 
                                community in which the property is 
                                located. Required verification shall be 
                                determined by the public housing 
                                agency.
                                    ``(III) Adjustment.--A public 
                                housing agency shall, upon request, 
                                make an appropriate annual adjustment 
                                in the rent established under this 
                                clause based on documented changes in 
                                unit operating costs and any increase 
                                in the applicable fair market rent or 
                                payment standard.
                                    ``(IV) Limitation.--Gross rent 
                                established under this paragraph shall 
                                not exceed the greater of--
                                            ``(aa) 75 percent of the 
                                        payment standard used by the 
                                        public  housing agency for a 
dwelling unit of the same size; or
                                            ``(bb) 75 percent of the 
                                        applicable fair market rental.
                                    ``(V) Exception.--The Secretary is 
                                authorized to approve an exception to 
                                the 75 percent limitation in subclause 
                                (IV) for not more than 2 percent of the 
                                total number of vouchers funded under 
                                this subsection, not to exceed 90 
                                percent of the payment standard or 
                                applicable fair market rental, if the 
                                permitted maximum rent could not 
                                otherwise support the reasonable 
                                operating cost of rental housing, and 
                                the public housing agency can 
                                demonstrate a need for production or 
                                preservation of affordable housing.
                            ``(vi) Renewal of assistance.--
                                    ``(I) In general.--The Secretary 
                                shall increase the adjusted allocation 
                                baseline for renewal of funding under 
                                subsection (dd) for public housing 
                                agencies that attach assistance under 
                                this paragraph to a structure.
                                    ``(II) Increase equivalent.--An 
                                increase under subclause (I) shall 
                                equal the number of additional families 
                                that a public housing agency can assist 
                                as a result of the reduced payments 
                                permitted under this paragraph.
                                    ``(III) Exception to limitation on 
                                project-based assistance.--The 
                                additional units assisted as a result 
                                of the reduced payments permitted under 
                                this paragraph shall not be considered 
                                in determining the compliance of a 
                                public housing agency with the 
                                percentage limitation in subparagraph 
                                (B).
                                    ``(IV) Applicability.--This 
                                subparagraph shall not apply to 
                                incremental assistance initially issued 
                                under this paragraph.
                            ``(vii) Allocation of incremental 
                        assistance for use under this paragraph.--
                                    ``(I) In general.--Incremental 
                                assistance appropriated for use under 
                                this paragraph--
                                            ``(aa) shall be allocated 
                                        for public housing agencies 
                                        within each State, after 
                                        reserving appropriate amounts 
                                        for insular areas, in 
                                        accordance with the formula 
                                        established by the Secretary 
                                        under section 217(b) of the 
                                        Cranston-Gonzalez National 
                                        Affordable Housing Act (42 
                                        U.S.C. 12747(b)); and
                                            ``(bb) the Secretary shall 
                                        obligate amounts that are 
                                        available for public housing 
                                        agencies within each State, as 
                                        determined under item (aa), to 
                                        qualified public housing 
                                        agencies within the State 
                                        pursuant to specific criteria 
                                        for the selection of recipients 
                                        for assistance in a notice 
                                        published in the Federal 
                                        Register.
                                    ``(II) Recipients.--Subject to the 
                                allocation referred to in subclause (I) 
                                and any additional criteria that the 
                                Secretary may establish, the Secretary 
                                shall award such incremental assistance 
                                for use under this paragraph to a 
                                public housing agency that administers 
                                a program of tenant-based assistance 
                                under this subsection and--
                                            ``(aa) administers funds 
                                        for the construction, 
                                        preservation, or substantial 
                                        rehabilitation of rental 
                                        housing other than public 
                                        housing; or
                                            ``(bb) has an agreement 
                                        with an agency or entity that 
                                        administers funds for the 
                                        construction, preservation, or 
                                        substantial rehabilitation of 
                                        rental housing that will enable 
                                        a prospective developer of such 
                                        housing to submit a single 
                                        application for both types of 
                                        funds.
                                    ``(III) Limitation.--Incremental 
                                assistance for use under this paragraph 
                                shall not be considered in determining 
                                compliance by a public housing agency 
                                with the limitation in subparagraph 
                                (B).
                                    ``(IV) National competition.--If 
                                the Secretary determines that 
                                sufficient funds for incremental 
                                assistance for use under this paragraph 
                                have not been appropriated for public 
                                housing agencies within each State in 
                                accordance with the formula established 
                                under section 217(b) of the Cranston-
                                Gonzalez National Affordable Housing 
                                Act (42 U.S.C. 12747(b)), the Secretary 
                                may award such funds to qualified 
                                public housing agencies through a 
                                national competition.
                            ``(viii) Definitions.--In this 
                        subparagraph--
                                    ``(I) the term `substantial 
                                rehabilitation' means rehabilitation 
                                expenditures paid or incurred with 
                                respect to a unit, including its 
                                prorated share of work on common areas 
                                or systems, of at least $25,000, which 
                                amount shall be increased annually by 
                                the Secretary to reflect inflation, and 
                                such increased amount shall be 
                                published in the Federal Register; and
                                    ``(II) the term `extremely low-
                                income families' means persons and 
                                families (as that term is defined in 
                                section 3(b)(3)) whose incomes do not 
                                exceed--
                                            ``(aa) 30 percent of the 
                                        area median income, as 
                                        determined by the Secretary 
                                        with adjustments for smaller 
                                        and larger families and for 
                                        unusually high or low family 
                                        incomes; or
                                            ``(bb) 30 percent of the 
                                        national nonmetropolitan median 
                                        income, if it is higher than 
                                        the area median income.''.
    (b) Effective Date.--
            (1) In general.--This section and the amendments made by 
        this section shall take effect upon the date of enactment of 
        this Act.
            (2) Rules.--The Secretary shall promulgate rules, as may be 
        necessary, to carry out section 8(o)(13) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)(13)), as amended by this Act, 
and shall publish--
                    (A) either proposed rules or interim rules not 
                later than 6 months after the date of enactment of this 
                Act; and
                    (B) final rules not later than 1 year after the 
                date of enactment of this Act.

SEC. 4. PROVIDING ASSISTANCE TO VOUCHER HOLDERS IN THEIR SEARCH FOR 
              DECENT, SAFE, AND AFFORDABLE HOUSING.

    (a) Use of Unutilized Section 8 Funds To Assist Families in Finding 
Housing.--
            (1) In general.--Section 8(o) of the United States Housing 
        Act of 1937 (42 U.S.C. 1437f(o)), as amended by this Act, is 
        amended by adding at the end the following:
            ``(20) Assistance to find housing.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), a public housing agency may use not 
                more than 2 percent of the funds allocated to it for 
                voucher rental assistance under this subsection to 
                assist families in finding adequate housing, if the 
                public housing agency--
                            ``(i) is not designated as troubled by the 
                        Secretary;
                            ``(ii) had a voucher success rate for the 
                        previous year of not more than 80 percent, or 
                        serves an area in which a large share of the 
                        voucher holders live in a small percentage of 
                        census tracts;
                            ``(iii) only uses less than the percentage 
                        of funds that it anticipates will not be used 
                        for voucher rental assistance; and
                            ``(iv) continues to expend not less than 
                        the amount of other funds on the administration 
                        of the voucher program that the public housing 
                        agency expended in the previous fiscal year.
                    ``(B) Subsequent fiscal years.--
                            ``(i) In general.--If a public housing 
                        agency uses funds in accordance with this 
                        paragraph in a given fiscal year, the agency 
                        may use not more than 2 percent of the funds in 
                        accordance with this paragraph in subsequent 
                        fiscal years if the public housing agency has--
                                    ``(I) an increased voucher 
                                utilization rate compared with the 
                                previous fiscal year;
                                    ``(II) an increased voucher success 
                                rate compared with the previous fiscal 
                                year; or
                                    ``(III) made progress in 
                                deconcentrating voucher holders 
                                compared with the previous fiscal year.
                            ``(ii) Continuation of assistance.--If a 
                        public housing agency uses funds in accordance 
                        with this paragraph in a given fiscal year and 
                        the voucher success rate of that agency has 
                        increased above 80 percent, the public housing 
                        agency may use funds in accordance with this 
                        paragraph in subsequent fiscal years if--
                                    ``(I) the voucher success rate of 
                                the agency improved compared with the 
                                previous fiscal year; and
                                    ``(II) the public housing agency 
                                meets the requirements of clauses (i), 
                                (iii), and (iv) of subparagraph (A).
                    ``(C) Eligibility of public housing agencies that 
                utilize allocated annual funds.--A public housing 
                agency that meets the criteria in subparagraph (A) but 
                uses all of its allocated annual funds for voucher 
                assistance may use up to 1 week of its reserve funds 
                for the activities identified in subparagraph (D) if 
                the public housing agency has leased fewer than 95 
                percent of its allocated number of vouchers.
                    ``(D) Eligible activities.--Funds used in 
                accordance with this paragraph shall--
                            ``(i) be for activities designed to improve 
                        voucher utilization, voucher success rates (the 
                        proportion of families that are issued a 
                        voucher that succeed in leasing a unit within 
                        the timeframe provided by the public housing 
                        agency to search for housing), and 
                        deconcentration; and
                            ``(ii) be used to ensure that voucher 
                        recipients are able to find suitable housing 
                        through--
                                    ``(I) housing and mobility 
                                counseling, or reimbursement for such 
                                services;
                                    ``(II) loans or grants for security 
                                deposit, application, and credit check 
                                fees;
                                    ``(III) transportation services, or 
                                reimbursement for such services;
                                    ``(IV) outreach to landlords, 
                                including landlord education and 
                                marketing of the voucher program under 
                                this section to landlords; and
                                    ``(V) any other activities that 
                                directly assist voucher recipients in 
                                obtaining suitable housing.
                    ``(E) Inclusion in public housing agency plan.--The 
                annual public housing agency plan that is submitted to 
                the Secretary pursuant to section 5A(b) shall include--
                            ``(i) a description of the efforts by that 
                        public housing agency to increase voucher 
                        utilization and voucher success rates;
                            ``(ii) a description of activities to be 
                        undertaken with funds provided under this 
                        paragraph;
                            ``(iii) what amounts shall be used for 
                        which activities;
                            ``(iv) how the public housing agency meets 
                        the requirements of subparagraph (A); and
                            ``(v) the voucher success rate of the 
                        public housing agency for the previous 12 
                        months.''.
            (2) Effective date.--The amendment made by this subsection 
        shall take effect on October 1, 2002.
    (b) Voucher Success Fund.--Section 8(o) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)), as amended by this Act, is 
amended by adding at the end the following:
            ``(21) Voucher success fund.--
                    ``(A) Establishment.--There is established the 
                Voucher Success Fund (referred to in this subsection as 
                the `Fund').
                    ``(B) Assistance.--Subject to appropriations, the 
                Secretary may provide assistance from the Fund to 
                public housing agencies on a competitive basis, for the 
                provision of additional support for families that 
                receive voucher rental assistance provided under this 
                subsection.
                    ``(C) Eligible grant recipients.--In a fiscal year, 
                a public housing agency is eligible to receive 
assistance under this paragraph if the public housing agency expended a 
high percentage of its allocated budget authority under this section 
during the previous fiscal year so that the public housing agency does 
not have enough funds to use the authority under section 4 of the 
Housing Voucher Improvement Act of 2002, and--
                            ``(i) is not designated as troubled by the 
                        Secretary;
                            ``(ii) had a voucher success rate (the 
                        proportion of families that are issued a 
                        voucher that succeed in leasing a unit within 
                        the timeframe provided by the public housing 
                        agency to search for housing) for the previous 
                        fiscal year of not more than 80 percent; or
                            ``(iii) serves an area in which a large 
                        share of the voucher holders live in a small 
                        percentage of census tracts.
                    ``(D) Award of funds.--
                            ``(i) In general.--To apply for assistance 
                        under this paragraph, a public housing agency 
                        shall submit a plan to the Secretary for using 
                        that assistance, at such time and in such 
                        manner as determined by the Secretary.
                            ``(ii) Criteria.--In providing assistance 
                        under this paragraph, the Secretary shall 
                        consider--
                                    ``(I) the adequacy of the plan 
                                submitted in accordance with clause (i) 
                                in addressing the needs of voucher 
                                recipients;
                                    ``(II) the extent of the need of 
                                the public housing agency for 
                                additional assistance to assist voucher 
                                holders in finding adequate housing;
                                    ``(III) the extent of the 
                                concentration of voucher holders in 
                                areas within the jurisdiction of the 
                                public housing agency;
                                    ``(IV) the quality of the 
                                administration of the voucher program 
                                by the public housing agency; and
                                    ``(V) any other criteria as 
                                established by the Secretary.
                    ``(E) Eligible activities.--Assistance provided 
                under this paragraph shall--
                            ``(i) be designed to improve voucher 
                        utilization; and
                            ``(ii) improve the likelihood that voucher 
                        recipients are able to find suitable housing 
                        through--
                                    ``(I) housing and mobility 
                                counseling, or reimbursement for such 
                                services;
                                    ``(II) loans or grants for security 
                                deposit, application, and credit check 
                                fees;
                                    ``(III) transportation services, or 
                                reimbursement for such services;
                                    ``(IV) outreach to landlords, 
                                including landlord education and 
                                marketing of the voucher program under 
                                this section to landlords; and
                                    ``(V) any other activities that 
                                directly assist voucher recipients in 
                                obtaining suitable housing.
                    ``(F) Inclusion in public housing agency plan.--The 
                annual public housing agency plan that is submitted to 
                the Secretary pursuant to section 5A(b) shall include--
                            ``(i) a description of the efforts by that 
                        public housing agency to increase voucher 
                        utilization and voucher success rates;
                            ``(ii) a description of how the public 
                        housing agency plans to use the funds received 
                        under this paragraph; and
                            ``(iii) the voucher success rate of the 
                        public housing agency during the previous 12 
                        months.
                    ``(G) Limitation and accounting.--
                            ``(i) In general.--Assistance received 
                        under this paragraph shall not be included in 
                        the total program expenditures of a public 
                        housing agency for purposes of--
                                    ``(I) calculating the per-unit 
                                costs of the public housing agency; or
                                    ``(II) determining the amount of 
                                renewal funding to be provided to the 
                                public housing agency.
                            ``(ii) Separate accounting.--The Secretary 
                        may establish procedures for the separate 
                        accounting of assistance received under this 
                        paragraph by public housing agencies.
                    ``(H) Additional funding.--A public housing agency 
                that receives assistance under this paragraph in a 
                fiscal year--
                            ``(i) may apply for assistance under this 
                        paragraph in subsequent fiscal years; and
                            ``(ii) may receive assistance under this 
                        paragraph if the Secretary finds that previous 
                        assistance made under this paragraph to the 
                        public housing agency resulted in--
                                    ``(I) increased voucher 
                                utilization;
                                    ``(II) increased voucher success 
                                rates (the proportion of families that 
                                are issued a voucher that succeed in 
                                leasing a unit within the timeframe 
                                provided by the public housing agency 
                                to search for housing); or
                                    ``(III) decreased voucher 
                                concentration.
                    ``(I) Evaluation.--The Secretary shall evaluate the 
                activities of public housing agencies that receive 
                assistance under this paragraph in order to determine 
                the effectiveness of that assistance on--
                            ``(i) success and utilization rates in the 
                        voucher program; and
                            ``(ii) access of families to housing 
                        opportunities across the jurisdiction of a 
                        public housing agency.
                    ``(J) Report.--A public housing agency that 
                receives assistance under this paragraph shall report 
                annually to the Secretary on--
                            ``(i) what assistance was used for; and
                            ``(ii) what progress has been made with 
                        respect to the voucher program.
                    ``(K) Authorization of appropriations.--There is 
                authorized to be appropriated $50,000,000 to carry out 
                this paragraph for fiscal year 2003 and each fiscal 
                year thereafter.''.

SEC. 5. EXPANDING HOUSING OPPORTUNITIES FOR VOUCHER HOLDERS.

    (a) Increased Payment Standard.--
            (1) In general.--Section 8(o)(1)(D) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f(o)(1)(D)) is amended--
                    (A) by striking ``(D) Approval.--The'' and 
                inserting the following:
                    ``(D) Exception payment standards.--
                            ``(i) Approval.--The''; and
                    (B) by adding at the end the following:
                            ``(ii) Increased payment standard.--A 
                        public housing agency may establish a payment 
                        standard for the same size dwelling unit in a 
                        market area or portion of a market area between 
                        110 and 120 percent of the fair market rent, if 
                        the payment standard for the market area or 
                        portion of a market area has been set at 110 
                        percent or above for the 6 months prior to the 
                        establishment of the new payment standard and 
                        the public housing agency determines that it 
                        has--
                                    ``(I) a voucher success rate (the 
                                proportion of families that are issued 
                                a voucher that succeed in leasing a 
                                unit within the timeframe provided by 
                                the public housing agency to search for 
                                housing) of not more than 80 percent or 
                                has provided an extended search time of 
                                not less than 90 days to a significant 
                                number of voucher recipients; or
                                    ``(II) problems with concentration 
                                of the voucher holders in high poverty 
                                areas.
                            ``(iii) Disability accommodation.--A public 
                        housing agency may establish a payment standard 
                        of not more than 120 percent of the fair market 
                        rent where necessary as a reasonable 
                        accommodation for a person with a disability, 
                        without approval of the Secretary. A public 
                        housing agency may seek approval of the 
                        Secretary to use a payment standard greater 
                        than 120 percent of the fair market rent as a 
                        reasonable accommodation for a person with a 
                        disability.
                            ``(iv) Secretary approval.--A public 
                        housing agency may establish a payment standard 
                        in accordance with clause (ii) without approval 
                        of the Secretary, if the public housing agency 
                        includes in its annual plan that is submitted 
                        to the Secretary pursuant to section 5A(b)--
                                    ``(I) the reasons for the increase 
                                in the payment standard;
                                    ``(II) a description of how and why 
                                the public housing agency has 
                                determined that it meets the 
                                requirements of clause (ii); and
                                    ``(III) a description of other 
                                steps the public housing agency is 
                                taking, in addition to increasing the 
                                payment standard, to address the 
                                problems of voucher utilization, 
                                voucher success rates (the proportion 
                                of families that are issued a voucher 
                                that succeed in leasing a unit within 
                                the timeframe provided by the public 
                                housing agency to search for housing), 
                                and concentration of voucher 
                                holders.''.
            (2) Effective date.--Section 8(o)(1)(D)(ii) of the United 
        States Housing Act of 1937, as added by this Act, shall take 
        effect on October 1, 2003.
    (b) Payment Standard and Rent.--Section 8(o) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)) is amended--
            (1) in paragraph (1)(B), by inserting ``in paragraph 
        (10)(F)(i) and'' after ``provided''; and
            (2) in paragraph (10), by adding at the end the following:
                    ``(F) Payment standard.--
                            ``(i) Tax credit units.--Notwithstanding 
                        the payment standard that applies under 
                        paragraph (1)(B), if a housing assistance 
                        payment contract covers a dwelling unit that 
                        has been allocated low-income housing tax 
                        credits pursuant to section 42 of the Internal 
                        Revenue Code of 1986 (26 U.S.C. 42) and is not 
                        located in a qualified census tract (as that 
                        term is defined in subsection (d) of such 
                        section 42), the payment standard for such unit 
                        may be established at a level that is higher 
                        than the payment standard that applies under 
                        paragraph (1), but does not exceed the rent 
                        charged for comparable units in the building 
                        that also receive the low-income housing tax 
                        credit but do not receive any additional rental 
                        assistance.
                            ``(ii) Home-funded units.--Subject to 
                        subparagraph (A), and notwithstanding section 
                        215(a)(1)(A) of the Cranston-Gonzalez National 
                        Affordable Housing Act of 1990 (42 U.S.C. 
                        12745(a)(1)(A)), if a housing assistance 
                        payment contract that is not subject to 
                        subparagraph (B) covers a dwelling unit that 
                        has been allocated HOME funds under such Act 
                        and is not located in a qualified census tract 
                        (as that term is defined in section 42(d) of 
                        the Internal Revenue Code of 1986 (26 U.S.C. 
                        42(d)), the rent for such unit, if it is higher 
                        than the applicable fair market rent, may be 
                        established at the payment standard that 
                        applies under paragraph (1).
                            ``(iii) Applicability.--
                                    ``(I) In general.--If clauses (i) 
                                and (ii) apply to a dwelling unit, 
                                clause (ii) shall control.
                                    ``(II) Exception.--Clause (ii) 
                                shall not apply with respect to a 
                                housing assistance payment contract 
                                attached to a structure under paragraph 
                                (13).''.
    (c) Consolidated Planning.--
            (1) Voucher utilization.--Section 105(b) of title I of the 
        Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
        12705(b)) is amended--
                    (A) in paragraph (19), by striking ``and'' at the 
                end;
                    (B) in paragraph (20), by striking the period at 
                the end and inserting ``; and''; and
                    (C) by adding at the end the following:
            ``(21) identify and describe the barriers in the 
        jurisdiction to utilization of voucher rental assistance 
        provided under section 8(o) of the United States Housing Act of 
        1937 (42 U.S.C. 1437f), including outside of areas of poverty 
        or racial concentration, and describe the strategies to 
        ameliorate or overcome these barriers, including the use of 
        housing funds made available under title II of this Act and the 
        Housing and Community Development Act of 1974 (42 U.S.C. 5301 
        et seq.).''.
            (2) Consideration of employment locations.--Section 
        105(b)(7) of title I of the Cranston-Gonzalez National 
        Affordable Housing Act (42 U.S.C. 12705(b)(7)) is amended by 
        inserting before the semicolon the following: ``, including how 
        the planning for geographical locations of new or rehabilitated 
        rental housing or homeownership units will promote employment 
        opportunities for families currently or recently assisted under 
        the State plan under part A of title IV of the Social Security 
        Act (42 U.S.C. 601 et seq.) or for families who may become 
        eligible for assistance under such State plan''.
            (3) Consultation with social services agencies.--Section 
        105(e) of title I of the Cranston-Gonzalez National Affordable 
        Housing Act (42 U.S.C. 12705(e)) is amended by inserting at the 
        end the following:
            ``(3) Consolidated planning.--When preparing the portions 
        of a housing strategy required by paragraphs (7), (14), and 
        (19) of subsection (b), a jurisdiction shall--
                    ``(A) consult with the State or local agencies or 
                boards that administer a program under part A of title 
                IV of the Social Security Act (42 U.S.C. 601 et seq.) 
                or under the Workforce Investment Act of 1998 (29 
                U.S.C. 2811 et seq.) and serve families in the 
                jurisdiction; and
                    ``(B) submit to the Secretary, together with the 
                plan required under subsection (a)--
                            ``(i) any written comments submitted by 
                        such agencies or boards on the proposed 
                        strategy of the jurisdiction; and
                            ``(ii) the response of the jurisdiction to 
                        those comments.''.

SEC. 6. ACCESS TO HOME AND LIHTC DEVELOPMENTS; LIST OF RENTAL UNITS.

    (a) Responsibilities of the Secretary.--
            (1) In general.--The Secretary of Housing and Urban 
        Development shall provide each public housing agency with an 
        updated list of rental units located in the same metropolitan 
        area or contiguous nonmetropolitan counties--
                    (A) that are allocated low-income housing tax 
                credits under section 42 of the Internal Revenue Code 
                of 1986 (26 U.S.C. 42); or
                    (B) that were built with funds allocated under the 
                HOME Investments Partnership Act (42 U.S.C. 12721 et 
                seq.).
            (2) Contents.--Each list provided under paragraph (1) shall 
        contain information regarding--
                    (A) the location of the rental units; and
                    (B) the number of units of each bedroom size.
            (3) Update.--The Secretary of Housing and Urban Development 
        shall--
                    (A) maintain and update the list provided under 
                paragraph (1) on a regular basis; or
                    (B) make the list provided under paragraph (1) 
                easily accessible to all public housing agencies 
                through Federal Register notice, a posting on the 
                Internet, or other readily available means.
    (b) Responsibilities of Public Housing Agencies.--Public housing 
agencies shall make the information provided by the Secretary under 
subsection (a) available to families when the families are issued 
voucher rental assistance under section 8(o) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f).

SEC. 7. REALLOCATION OF VOUCHERS.

    (a) In General.--Section 8(dd) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(dd)) is amended--
            (1) by striking ``Subject to'' and inserting the following:
            ``(1) In general.--Subject to''; and
            (2) by adding at the end the following:
            ``(2) Reallocation of chronically unutilized vouchers.--
                    ``(A) In general.--The Secretary may reduce the 
                allocation baseline, only to the extent that the 
                reduction reflects the lesser of the unutilized portion 
                of tenant-based subsidies or of budget authority 
                provided under this section, of a public housing agency 
                that--
                            ``(i) fails, in a fiscal year, beginning in 
                        the fiscal year in which the Housing Voucher 
                        Improvement Act of 2002 is enacted, to utilize 
                        at least 90 percent of its allocated number of 
                        tenant-based subsidies or at least 90 percent 
                        of the budget authority provided under this 
                        section that has been under annual 
                        contributions contract for 12 months on the 
                        first day of the fiscal year, not taking into 
                        account, in the numerator, funds used for 
                        services and other activities under section 4; 
                        and
                            ``(ii) fails, within 16 months after 
                        written notice by the Secretary of a failure 
                        described in clause (i), to utilize at least 95 
                        percent of allocated vouchers for rental 
                        assistance provided under this section or 
                        contracted budget authority provided under this 
                        section with respect to vouchers that have been 
                        under annual contributions contract for 12 
                        months on the first day of the fiscal year, not 
                        taking into account, in the numerator, funds 
                        used for services and other activities under 
                        section 4.
                    ``(B) Notice to tenants and community.--When the 
                Secretary provides written warning to a public housing 
                agency of a failure described in subparagraph (A)(i), 
                the Secretary shall also publish notice of such failure 
                in the Federal Register and shall provide written 
                notice of such failure to the chairman of the subject 
                public housing agency's resident advisory board 
                established pursuant to section 5A(e). Not later than 
                14 days after the date of receipt by the public housing 
                agency of notice of a failure described in subparagraph 
                (A)(i), that public housing agency shall provide a copy 
                of such notice to all members of its resident advisory 
                board or boards.
                    ``(C) Utilization rate determination.--
                            ``(i) In general.--At the request of a 
                        public housing agency, the Secretary shall 
                        determine the voucher utilization rate of the 
                        public housing agency for use under 
                        subparagraph (A), based on data regarding the 
                        utilization of vouchers from the period 
                        beginning 6 months prior to the request of the 
                        public housing agency.
                            ``(ii) Eligibility of a pha to request a 
                        new survey of fair market rents.--If a public 
                        housing agency requests, within 60 days of 
                        receipt of the written notice by the Secretary 
of a failure described in subparagraph (A)(i), that the Secretary 
conduct a further survey of market rents in the area to determine the 
accuracy of the applicable fair market rent or the need for an 
exception payment standard, and the Secretary determines as a result of 
such survey to increase the fair market rent or approve an exception 
payment standard, the written notice shall be considered null and void. 
Whether a public housing agency complies with the standard under 
subparagraph (A)(i) shall be determined based on the first complete 
fiscal year in which the agency has the opportunity to use the 
increased fair market rent or approved exception payment standard. To 
be eligible to request a rent survey under this clause, a public 
housing agency must use the maximum allowable payment standard for that 
area for a period of not less than 6 months prior to such request.
                    ``(D) Determination of ineffective performance.--A 
                reallocation of chronically unutilized vouchers under 
                this subsection shall be deemed to be a determination 
                that the agency is not performing effectively under 
                section 3(b)(6)(B)(iii).
            ``(3) Reallocation.--
                    ``(A) In general.--The Secretary shall allocate the 
                contracts for the vouchers made available by the 
                reduction in baseline authority authorized under 
                paragraph (2) in a manner that ensures that applicants 
                on the waiting list of the public housing agency from 
                which vouchers are reallocated may continue to be 
                served, consistent with this paragraph.
                    ``(B) Metropolitan area.--
                            ``(i) Designation of metropolitan 
                        administrator.--If vouchers are reallocated 
                        from a public housing agency located in a 
                        metropolitan area, the Secretary shall, based 
                        on a public competitive process, designate a 
                        metropolitan administrator for all or a portion 
                        of the metropolitan statistical area in which 
                        that public housing agency is located, in a 
                        manner consistent with clause (iv).
                            ``(ii) Distribution of vouchers.--A 
                        metropolitan administrator designated under 
                        clause (i) shall receive all vouchers in that 
                        administrator's region made available pursuant 
                        to paragraph (2).
                            ``(iii) Eligible administrators.--The 
                        Secretary may select as a metropolitan 
                        administrator an agency--
                                    ``(I) that--
                                            ``(aa) currently 
                                        administers a voucher program 
                                        serving residents of the 
                                        geographic area served by the 
                                        agency whose voucher allocation 
                                        has been reduced;
                                            ``(bb) has the legal 
                                        ability to serve such area; or
                                            ``(cc) has an agreement 
                                        with the Secretary to serve 
                                        such area pursuant to section 
                                        3(b)(6)(B)(iii); and
                                    ``(II) that is--
                                            ``(aa) a public housing 
                                        agency that administers a 
                                        voucher program;
                                            ``(bb) a State or local 
                                        agency that has experience in 
                                        administering tenant-based 
                                        assistance programs; or
                                            ``(cc) a nonprofit or for-
                                        profit agency that has 
                                        experience in administering 
                                        tenant-based assistance 
                                        programs.
                            ``(iv) Selection process.--
                                    ``(I) Preference for certain public 
                                housing agencies.--The Secretary may 
                                give preference in a competitive 
                                selection to a public housing agency 
                                described in clause (iii)(II)(aa) over 
                                other eligible administrators described 
                                in items (bb) and (cc) of that clause 
                                (iii)(II), if the public housing 
                                agency--
                                            ``(aa) is a well-managed 
                                        agency, based on objective 
                                        indicators, including a high 
                                        rate of utilization of 
                                        allocated vouchers or 
                                        contracted budget authority 
                                        provided under this section, 
                                        and a high rate of compliance 
                                        with eligibility and rent 
                                        determination requirements; and
                                            ``(bb) has demonstrated an 
                                        ability to increase the number 
                                        of voucher holders residing in 
                                        low poverty areas.
                                    ``(II) Selection criteria.--In 
                                selecting a metropolitan administrator, 
                                the Secretary shall take into account--
                                            ``(aa) whether the entity 
                                        has operated tenant-based 
                                        assistance programs in a manner 
                                        that has not led to an 
                                        overconcentration of tenant-
                                        based subsidy holders in 
                                        certain areas;
                                            ``(bb) whether the entity 
                                        has the administrative capacity 
                                        to administer the number of 
                                        additional vouchers it is 
                                        likely to receive if it is 
                                        selected as a metropolitan 
                                        administrator and to serve the 
                                        geographic area served by 
                                        agencies from which vouchers 
                                        are reallocated;
                                            ``(cc) the relative need 
                                        for assistance under subsection 
                                        (o) of the eligible population 
                                        not receiving housing 
                                        assistance in the area 
                                        currently served by the entity; 
                                        and
                                            ``(dd) any other criteria 
                                        for choosing a metropolitan 
                                        administrator that the 
                                        Secretary determines to be 
                                        appropriate.
                    ``(C) Nonmetropolitan area.--
                            ``(i) In general.--If vouchers are 
                        reallocated pursuant to this subsection from a 
                        public housing agency that is located in a 
                        nonmetropolitan area, the Secretary shall 
                        reallocate such authority to a public housing 
                        agency or other eligible administrator as 
                        specified in subparagraph (B)(iii). The 
                        Secretary may designate an entity to receive 
                        vouchers reallocated from all or a portion of 
                        the nonmetropolitan area in a State.
                            ``(ii) Selection.--In selecting an entity 
                        to receive vouchers reallocated from a 
                        nonmetropolitan area, the Secretary shall 
                        utilize the preferences and criteria in 
                        subparagraph (B)(iv), and shall consider 
the relative administrative costs likely to be incurred to serve 
families that reside in the geographic area of the agency from which 
the vouchers were reallocated.
                    ``(D) Designation of a new administrator.--If, at 
                any time, the Secretary determines that the criteria 
                established under this paragraph for a metropolitan or 
                nonmetropolitan administrator are not met, the 
                Secretary shall designate another administrator.
                    ``(E) Additional vouchers.--The Secretary shall 
                ensure that certain criteria or benchmarks regarding 
                voucher success rates and concentration of voucher 
                holders are met each year before providing an 
                administrator with additional vouchers.
                    ``(F) Lack of eligible families.--If the Secretary 
                determines that the primary cause of voucher 
                underutilization by a public housing agency under 
                paragraph (2)(A) is a lack of eligible families in the 
                area of operation of the public housing agency, the 
                Secretary may establish criteria and procedures to 
                reallocate vouchers from that agency to another public 
                housing agency or another metropolitan or 
                nonmetropolitan administrator outside of the area of 
                operation of the public housing agency. First priority 
                for vouchers reallocated under this subparagraph shall 
                be given to an entity that has previously voluntarily 
                relinquished to the Secretary a portion of its 
                allocated voucher budget authority and has subsequently 
                demonstrated a need for, and an ability to use, such 
                budget authority under criteria established by the 
                Secretary. Second priority shall be given to an entity 
                that serves a jurisdiction in the same State as the 
                agency from which vouchers are being reallocated.
            ``(4) Special populations.--Vouchers that have been 
        designated by the Secretary to be used by special populations 
        shall--
                    ``(A) retain such designation on reallocation; and
                    ``(B) be reallocated, if there is an eligible 
                applicant within the State or area that has experience 
                administering a voucher program for a special 
                population, in accordance with paragraphs (2) and (3).
            ``(5) Prompt reallocation.--Within 60 days of reducing a 
        public housing agency's allocation of vouchers pursuant to 
        paragraph (2) in an area for which the Secretary has designated 
        an administrator to receive vouchers reallocated pursuant to 
        this subsection, the Secretary shall enter into a contract with 
        the designated administrator for the reallocated vouchers.''.
    (b) Rules of the Secretary.--The Secretary shall promulgate rules 
to carry out this section not later than 6 months after the date of 
enactment of this Act.

SEC. 8. PROMOTING SELF-SUFFICIENCY.

    (a) Family Self-Sufficiency.--Section 23 of the United States 
Housing Act of 1937 (42 U.S.C. 1437u) is amended--
            (1) in subsection (a), by striking ``under the certificate 
        and voucher programs'';
            (2) in subsection (b), by adding at the end the following:
            ``(6) Eligibility of families in project-based section 8 
        units.--
                    ``(A) In general.--Families residing in units 
                assisted under section 8(c) are eligible to participate 
                in a program under this section.
                    ``(B) Voluntary participation of owners.--
                            ``(i) In general.--The owner of units 
                        receiving assistance under section 8(c) may 
                        elect to carry out a local program under this 
                        section, subject to approval by the Secretary 
                        of an action plan pursuant to subsection (g) of 
                        this section.
                            ``(ii) Applicability.--The provisions of 
                        this section that apply to public housing 
                        agencies operating a program under this section 
                        shall apply to owners that carry out a local 
                        program under this section.
                    ``(C) Voluntary expansion of public housing agency 
                programs to include families in project-based section 8 
                units.--
                            ``(i) In general.--If an owner of units 
                        that receive assistance under section 8(c) does 
                        not elect to carry out a local program under 
                        this section, a public housing agency that 
                        operates a program under this section and 
                        serves the jurisdiction in which the units are 
                        located may enroll families residing in such 
                        units in its program under this section, 
                        subject to the approval of the Secretary.
                            ``(ii) Escrow accounts.--The Secretary 
                        shall determine how to enable families residing 
                        in units assisted under section 8(c) and 
                        participating in a public housing agency 
                        program under this section to benefit from the 
                        escrow savings accounts authorized by 
                        subsection (d)(2) of this section.'';
            (3) in subsection (h)(2), by striking ``a full-time service 
        coordinator'' and inserting ``1 or more full-time service 
        coordinators''; and
            (4) in subsection (n)(4), by inserting before the period 
        the following: ``or carried out by an owner of units assisted 
        under section 8(c)''.
    (b) Allow ROSS Funds To Be Used To Serve Section 8 Families.--
Section 34 of the United States Housing Act of 1937 (42 U.S.C. 1437z-6) 
is amended--
            (1) in subsection (a), by inserting ``or households 
        receiving vouchers'' after ``public housing residents'' each 
        place it appears; and
            (2) in subsection (b), by inserting ``directed toward 
        families receiving vouchers or for activities'' after ``only 
        for activities''.
    (c) Increasing Incentives for Families To Work and Increase Their 
Earnings and To Reunify Families.--Section 3 of the United States 
Housing Act of 1937 (42 U.S.C. 1437a) is amended--
            (1) in subsection (b)(5)(A), by adding at the end the 
        following:
                            ``(viii) Incentives to increase earned 
                        income.--Any payment made to, or on behalf of, 
                        a member of a family (including a parent or 
                        spouse who begins to reside with a family after 
                        the family has begun to receive assistance 
                        under section 8 or live in public housing) that 
                        receives assistance under section 8 or resides 
                        in public housing that is expressly for the 
                        purpose of offsetting in whole or in part an 
                        increase in rent that results from an increase 
                        in the total earned income in a household.''; 
                        and
            (2) by adding at the end the following:
    ``(g) Incentive Grants.--A public housing agency or owner that 
administers a public housing program or section 8 subsidies may receive 
funding from any State or local agency for the purpose of providing 
incentives to families to increase earned income as provided in 
subsection (b)(5)(A)(viii), and such grants shall not be included as 
revenue or income to the agency or owner in determining the payments 
owed to the agency or owner by the Secretary.''.
    (d) Welfare-to-Work Housing Voucher Program.--
            (1) In general.--Section 8(o) of the United States Housing 
        Act of 1937 (42 U.S.C. 1437f(o)), as amended by this Act, is 
        amended by adding at the end the following:
            ``(22) Welfare-to-work housing voucher program.--
                    ``(A) Program requirements.--
                            ``(i) Applicability.--Paragraphs (1) 
                        through (14), (20), and (21) apply to the 
                        program established under this paragraph.
                            ``(ii) Renewal.--Upon renewal, incremental 
                        vouchers awarded under this paragraph shall 
                        continue to be administered under this 
                        paragraph.
                            ``(iii) Technical assistance.--The 
                        Secretary may use funds available for technical 
                        assistance to assist public housing agencies 
                        that receive assistance under this paragraph.
                    ``(B) Eligible grantees.--A public housing agency 
                (including Indian tribes and tribally designated 
                housing entities, as defined by the Secretary) is 
                eligible to receive assistance under this paragraph if 
                the public housing agency demonstrates, to the 
                satisfaction of the Secretary--
                            ``(i) that the agency--
                                    ``(I) is effectively administering 
                                a voucher program;
                                    ``(II) is capable of leasing the 
                                allotted number of welfare-to-work 
                                vouchers in the time allowed by the 
                                Secretary; and
                                    ``(III) has included in the annual 
                                plan of the agency a description of a 
                                program to provide welfare-to-work 
                                vouchers; and
                            ``(ii) that the agency--
                                    ``(I) is carrying out an effective 
                                welfare-to-work housing program using 
                                Federal, State, or local funds 
                                (including vouchers funded under the 
                                Department of Veterans Affairs and 
                                Housing and Urban Development, and 
                                Independent Agencies Appropriations 
                                Act, 1999 (Public Law 105-276), 
or other vouchers funded under this subsection) and, in determining 
whether an agency is carrying out an effective welfare-to-work housing 
program, the Secretary shall consider whether the agency has a 
collaboration with the State, local, or tribal entities administering 
the programs under part A of title IV of the Social Security Act (42 
U.S.C. 601 et seq.) and under the Workforce Investment Act of 1998 (29 
U.S.C. 2811 et seq.) that serve families in the jurisdiction to ensure 
that these agencies will collaborate with the public housing agency in 
identifying eligible families, determining criteria for selection among 
eligible families in light of the circumstances in the jurisdiction, 
and providing payments and services to families (including outreach to 
owners and case management) so that families may obtain housing in an 
area of greater employment opportunity or in proximity to a current 
place of employment or transportation to employment and overcome other 
barriers to obtaining or retaining employment; or
                                    ``(II) has entered into a 
                                memorandum of understanding with the 
                                State, local, or tribal entities that 
                                administer the programs under part A of 
                                title IV of the Social Security Act (42 
                                U.S.C. 601 et seq.) and under the 
                                Workforce Investment Act of 1998 (29 
                                U.S.C. 2811 et seq.) that serve 
                                families in the jurisdiction, and such 
                                memoranda specify how the agencies will 
                                collaborate with the public housing 
                                agency in identifying eligible 
                                families, determining criteria for 
                                selection among eligible families in 
                                light of the circumstances in the 
                                jurisdiction, and providing payments 
                                and services to families (including 
                                outreach to owners and case management) 
                                so that families may obtain housing in 
                                an area of greater employment 
                                opportunity or in proximity to a 
                                current place of employment or 
                                transportation to employment and 
                                overcome other barriers to obtaining or 
                                retaining employment.
                    ``(C) Additional criteria for grantee selection.--
                The Secretary--
                            ``(i) may establish criteria in addition to 
                        that established in subparagraph (B) for the 
                        selection of public housing agencies that are 
                        eligible to receive assistance under this 
                        paragraph; and
                            ``(ii) shall consult with the Secretary of 
                        Health and Human Services and the Secretary of 
                        Labor in determining additional criteria under 
                        this subparagraph.
                    ``(D) Eligible families.--Families selected to 
                receive assistance under this paragraph shall be--
                            ``(i) receiving, or shall have received in 
                        the 2 years preceding the date on which the 
                        family was selected to receive assistance under 
                        this paragraph, assistance or other payments 
                        (including benefits provided by payments to 
                        third parties) or services funded under the 
                        Temporary Assistance for Needy Families (TANF) 
                        program under part A of title IV of the Social 
                        Security Act or as part of a qualified State 
                        expenditure of a State under section 
                        409(a)(7)(B)(i) of such Act; and
                            ``(ii) in need of housing voucher 
                        assistance as determined by the public housing 
                        agency, the agency that administers the 
                        Temporary Assistance for Needy Families 
                        program, or the Workforce Investment Agency in 
                        order to--
                                    ``(I) obtain housing in an area of 
                                greater employment opportunity or in 
                                proximity to a current place of 
                                employment or transportation to 
                                employment;
                                    ``(II) participate effectively in a 
                                program to overcome barriers to 
                                employment; or
                                    ``(III) retain employment or 
                                increase hours of employment.
                    ``(E) Portability requirement.--Notwithstanding any 
                provision of State law, if a public housing agency, 
                having authority with respect to the dwelling unit to 
                which a family moves, does not operate a welfare-to-
                work voucher program under this paragraph and does not 
                agree to carry out the responsibilities of the issuing 
                agency under this paragraph, the issuing agency may 
                continue to administer assistance under this paragraph.
                    ``(F) Preference.--The Secretary shall give 
                preference in the award of assistance under this 
                paragraph to public housing agencies within a State--
                            ``(i) with jurisdiction that minimizes the 
                        need to use the procedures established under 
                        subsection (r) to allow families to reside in 
                        areas with job opportunities; or
                            ``(ii) that demonstrate, to the 
                        satisfaction of the Secretary, that the 
                        procedures under subsection (r) do not pose a 
                        barrier to the choice of housing for families.
                    ``(G) Coordination with family self-sufficiency 
                program.--A public housing agency that applies for 
                assistance under this paragraph shall have approval 
                from the Secretary to operate a family self-sufficiency 
                program under section 23 (42 U.S.C. 1437u) of 
                sufficient size to accommodate families that may 
                receive assistance from that agency under this 
                paragraph, or shall request such approval. The 
                Secretary shall consider the award of assistance under 
                this paragraph in determining the amount of funding for 
                family self-sufficiency program coordinators for which 
                public housing may be available.
                    ``(H) Preliminary fees.--Notwithstanding subsection 
                (q)(2)(A), a public housing agency is eligible for a 
                preliminary fee under that subsection the first time 
                that agency receives assistance under this paragraph.
                    ``(I) Authorization of appropriations.--There is 
                authorized to be appropriated such sums as may be 
                necessary for each of fiscal years 2003 through 2007 to 
                provide for incremental vouchers for use to provide 
                assistance as part of a welfare-to-work housing voucher 
                program.''.
            (2) Portability requirement.--Section 8(r) of the United 
        States Housing Act of 1937 (42 U.S.C. 1437f(r)) is amended by 
        adding at the end the following:
            ``(6) Applicability.--This subsection applies to 
        assistance--
                    ``(A) provided under subsection (o)(22); or
                    ``(B) funded under the Department of Veterans 
                Affairs and Housing and Urban Development, and 
                Independent Agencies Appropriations Act, 1999 (Public 
                Law 105-276).''.
            (3) Adjusted income.--Section 3(b)(5) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437a(b)(5)) is amended by 
        adding at the end the following:
                    ``(C) Permissive exclusions with secretary approval 
                for welfare-to-work vouchers.--In determining adjusted 
                income, a public housing agency may, with the approval 
                of the Secretary, exclude from the annual income of a 
                family that receives assistance under section 8(o)(22), 
                a portion of the earned income of that family.''.

SEC. 9. INSPECTION OF UNITS.

    Section 8(o)(8) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(8)) is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``In general.--Except as provided 
                in paragraph (11),'' and inserting the following: 
                ``General rule.--
                            ``(i) In general.--Except as provided in 
                        clause (ii) and paragraph (11),''; and
                    (B) by adding at the end the following:
                            ``(ii) Exception.--A public housing agency 
                        may commence payments to an owner, if the 
                        public housing agency--
                                    ``(I) has conducted an inspection 
                                of the building, which includes an 
                                inspection of a reasonable number of 
                                units in the 6 months prior to the date 
                                on which payment is made to the owner, 
                                and that inspection and any subsequent 
                                unit inspections have not turned up 
                                major deficiencies;
                                    ``(II) conducts an inspection of 
                                the unit for which the payment is being 
                                made not later than 30 days after the 
                                date for which payment is made to the 
                                owner; and
                                    ``(III) has an agreement with the 
                                owner to correct any deficiencies and 
                                make any repairs in the unit not later 
                                than 30 days after the date on which 
                                the inspection was made under subclause 
                                (II).'';
            (2) in subparagraph (D)--
                    (A) by striking ``Each'' and inserting the 
                following:
                            ``(i) In general.--Except as provided in 
                        clause (ii), each''; and
                    (B) by adding at the end the following:
                            ``(ii) Exception.--If a public housing 
                        agency has a large jurisdiction and is 
                        conducting inspections on a geographical basis, 
                        the public housing agency may comply with the 
                        annual inspection requirement by inspecting the 
                        unit within 9 to 15 months of the previous 
                        inspection.''; and
            (3) in subparagraph (E), by adding at the end the 
        following: ``If an inspection of a dwelling unit by a public 
        housing agency reveals deficiencies that an owner must correct 
        in order that the unit comply with the applicable standards 
        relating to physical condition, the public housing agency may 
        delay or abate payments to the owner, either wholly or 
        partially, pending completion of any necessary repairs or other 
        corrective action by the owner. In determining the extent of 
        any abatement, the public housing agency may take into account 
        the seriousness of the deficiency and the owner's previous 
        performance with respect to the correction of deficiencies.

SEC. 10. AUTOMATIC PAYMENT SYSTEMS.

    Section 8(o)(10) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(o)(10)) is amended by adding at the end the following:
                    ``(F) Automated payments.--
                            ``(i) In general.--The Secretary shall 
                        provide measures, including technical 
                        assistance, to ensure that all administrative 
                        agencies have the capacity to process voucher 
                        subsidy payments by means of electronic fund 
                        transfers to owners of dwelling units for the 
                        purpose of ensuring timely payments in 
                        accordance with this paragraph and regulations 
                        promulgated by the Secretary.
                            ``(ii) Current systems.--The Secretary 
                        shall examine the current use and 
                        implementation of automated payment systems 
                        among administrative agencies, and establish 
                        the need and capacity of such agencies to 
                        implement an automated electronic funds 
                        transfer system. The Secretary shall provide 
                        progress reports on this activity not less than 
                        annually.''.

SEC. 11. ENHANCED VOUCHERS.

    Section 8(t)(1) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(t)(1)) is amended--
            (1) in the matter preceding subparagraph (A), by inserting 
        after ``except that'' the following: ``a family may not be 
        denied assistance due to a public housing agency's selection 
        standards for participation, and''; and
            (2) in subparagraph (B), by inserting after ``eligibility 
        event for the project'' the following: ``regardless of unit and 
        family size standards normally used by the administering 
        agency''.

SEC. 12. EFFECTIVE DATE.

    This Act and the amendments made by this Act shall take effect upon 
the date of enactment of this Act, with the following exceptions:
            (1) Subsections (b) and (c) of section 5, and sections 6, 
        9, and 10 of this Act, and the amendments made by those 
        sections, shall take effect 1 year after the date of enactment 
        of this Act.
            (2) Section 8 of this Act, and the amendments made by that 
        section, shall take effect on October 1, 2002, with the 
        exception of paragraphs (2) and (3) of subsection (d), and the 
        amendments made by those paragraphs, which shall take effect 
        upon the date of enactment of this Act.
            (3) Except as otherwise specified in this Act.
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