[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 947 Introduced in Senate (IS)]






108th CONGRESS
  1st Session
                                 S. 947

 To better assist lower income families in obtaining decent, safe, and 
  affordable housing through the conversion of the section 8 housing 
     choice voucher program into a State-administered block grant.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             April 29, 2003

 Mr. Allard introduced the following bill; which was read twice and 
        referred to the Committee on Banking, Housing, and Urban 
        AffairsYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY

_______________________________________________________________________

                                 A BILL


 
 To better assist lower income families in obtaining decent, safe, and 
  affordable housing through the conversion of the section 8 housing 
     choice voucher program into a State-administered block grant.

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

SECTION 1. SHORT TITLE.

    (a) Short Title.--This Act may be cited as the ``Housing Assistance 
for Needy Families Act of 2003''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds that--
            (1) the section 8 tenant-based assistance program now 
        provides rental and homeownership assistance to more than 
        1,800,000 families;
            (2) despite this success, during the past several years, 
        billions of dollars of funds appropriated for tenant-based 
        assistance have remained unspent, and as a result, several 
        hundred thousand families have not been provided housing 
        assistance made available by Congress;
            (3) over 2,600 public housing agencies, half of which 
        administer 250 or fewer vouchers, administer the tenant-based 
        assistance program through direct contracts with the Secretary 
        of Housing and Urban Development, and thus the Secretary must 
        administer the program through rules and regulations that apply 
        directly to more than 2,600 entities throughout the Nation;
            (4) this administrative structure has contributed to the 
        development of regulatory and statutory measures that have made 
        the tenant-based assistance program overly prescriptive and 
        difficult to administer, with hundreds of pages of regulations 
        and guidance;
            (5) the complexity of the tenant-based assistance program, 
        its inability to allow adequate timely adjustments to changing 
        local markets, and its multiplicity of Federal directives, all 
        have contributed to several hundred thousand families not being 
        provided the housing assistance made available by Congress;
            (6) the linkage between housing assistance and the 
        government's role in supporting self-sufficiency efforts for 
        low-income families is critical, and this role is now largely 
        carried out by the States under the Temporary Assistance for 
        Needy Families program authorized by the Personal 
        Responsibility and Work Opportunity Reconciliation Act of 1996 
        (42 U.S.C. 601 et. seq.) and other programs; and
            (7) since assuming responsibility for the Temporary 
        Assistance for Needy Families program, and with respect to 
        other initiatives, such as the One-Stop Career Center system 
        under the Workforce Investment Act of 1998 (P.L. 105-220; 112 
        Stat. 936), States have shown that they can bring creative, 
        effective administration to programs for assistance to needy 
        families.
    (b) Purposes.--The purpose of this Act is to provide for housing 
assistance through a State-administered block grant, and thereby to--
            (1) provide for the necessary program flexibility and 
        oversight so that funds are used promptly and effectively to 
        assist needy families;
            (2) facilitate greater program responsiveness to local 
        markets and needs;
            (3) provide for administrative decision-making closer to 
        the communities and families affected, by their elected 
        officials;
            (4) provide for additional program flexibility to address 
        local needs;
            (5) give States the authority to reallocate funds or take 
        other actions necessary to ensure that program funds are 
        expended promptly and effectively;
            (6) improve government support of self-sufficiency efforts 
        by assisted families, by facilitating greater coordination with 
        the Temporary Assistance for Needy Families program, programs 
        under the Workforce Investment Act, and other Federal and State 
        programs that promote self-sufficiency;
            (7) provide greater flexibility for addressing special 
        needs of elderly and disabled families; and
            (8) facilitate State and local efforts to reduce 
        homelessness.

SEC. 3. DEFINITIONS.

    In this Act:
            (1) Families; elderly families; disabled families.--The 
        terms ``families'', ``elderly families'', and ``disabled 
        families'' have the meanings given those terms in section 
        3(b)(3) of the United States Housing Act of 1937 (42 U.S.C. 
        1437a(b)(3)).
            (2) Annual gross income; gross monthly income.--The terms 
        ``annual gross income'' and ``gross monthly income'' mean 
        income, during the appropriate period of time, from all sources 
        of each member of a household, as determined in accordance with 
        criteria prescribed by the State in which the household is 
        located.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (4) State.--The term ``State'' means the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        territories and possessions of the United States, and the 
        Commonwealth of the Northern Mariana Islands.
            (5) Tenant-based rental and homeownership housing 
        assistance.--The term ``tenant-based rental and homeownership 
        housing assistance'' means assistance provided to an eligible 
        family under this Act to select suitable housing, and to re-
locate to other suitable housing.

SEC. 4. AUTHORITY.

    (a) In General.--The Secretary may--
            (1) make grants to States to provide tenant-based rental 
        and homeownership housing assistance; and
            (2) carry out activities related to the provision of those 
        grants in accordance with this Act.
    (b) Assistance.--Subject to the availability of appropriations, 
each State receiving a grant under this Act shall, for each of the 
fiscal years 2005 through 2009, provide tenant-based rental and 
homeownership housing assistance to not fewer than the average number 
of families served in such State during the 120-day period ending on 
September 30, 2004, by the Housing Choice Voucher program authorized 
under section 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f), including those families receiving enhanced voucher assistance 
authorized under such section 8 during that 120-day period.
    (c) Designation of Agencies.--The chief executive officer of any 
State may, in any fiscal year during which a grant under this Act is 
received by the State, designate any agency or instrumentality of the 
State to act on behalf of the State with regard to this Act.

SEC. 5. ELIGIBLE ACTIVITIES.

    Grants awarded pursuant to section 4 may be used for--
            (1) tenant-based rental housing assistance;
            (2) homeownership assistance for first-time homebuyers, 
        including monthly homeownership assistance and downpayment 
        assistance as described in section 8 of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f);
            (3) defraying the costs of administering grant amounts 
        under this Act, except that such costs shall not exceed 10 
        percent of grant amounts provided to the State; and
            (4) any other activities specified by the Secretary in 
        support of tenant-based rental housing and homeownership 
        assistance.

SEC. 6. PLANNING AND PERFORMANCE.

    (a) State Plan.--In any fiscal year, prior to the receipt of a 
grant under this Act, a State shall, as part of its comprehensive 
housing affordability strategy (or any consolidated plan incorporating 
such strategy) under section 105 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12705), set forth quantifiable 
objectives related to performance standards established by the 
Secretary under subsection (b).
    (b) Performance Standards.--The Secretary shall establish uniform 
performance standards for States receiving grants under this Act that 
shall address the--
            (1) utilization of all grant funds received under this Act;
            (2) overall effective financial management of grant funds 
        received under this Act;
            (3) number of families served by grant funds received under 
        this Act;
            (4) quality of affordable housing subsidized by grant funds 
        received under this Act;
            (5) overall reduction of homelessness, including 
        homelessness among veterans, within the State;
            (6) improvement of living conditions for elderly and 
        disabled families;
            (7) the effectiveness of voucher assistance in helping 
        families move toward homeownership and self-sufficiency; and
            (8) the extent to which State or local governments remove 
        barriers to affordable housing.
    (c) Performance Report.--
            (1) In general.--Each State shall submit to the Secretary, 
        at a time and in a form determined by the Secretary, a report 
        detailing--
                    (A) the progress the State has made in carrying out 
                its strategy or plan under subsection (a); and
                    (B) the success of the State in meeting the 
                quantifiable objectives established by the State under 
                subsection (a).
            (2) Additional information.--The report required under 
        paragraph (1) shall also set forth--
                    (A) the number of families and individuals 
                receiving tenant-based rental and homeownership housing 
                assistance under the State program;
                    (B) of those families reported under subparagraph 
                (A), the--
                            (i) number of families with children;
                            (ii) number of elderly families;
                            (iii) number of disabled families;
                            (iv) annual gross income of each family;
                            (v) sources of income of each family; and
                            (vi) changes in income and employment 
                        status of each family;
                    (C) the total amount of housing assistance received 
                under this Act by all families reported under 
                subparagraph (A);
                    (D) the amount of grant funds distributed under 
                this Act that are spent on administrative fees;
                    (E) the poverty rates of neighborhoods in which 
                families receiving tenant-based homeownership and 
                housing assistance reside; and
                    (F) any other information on the use of Federal 
                assistance as the Secretary may prescribe.
            (3) Sufficiency of report.--If a State fails to submit the 
        report required under this subsection to the Secretary in a 
        satisfactory and timely manner, the Secretary may take any 
        compliance action authorized under section 13(b) of this Act.
            (4) Public disclosure.--The Secretary shall make available 
        to the public any report submitted to the Secretary under this 
        subsection.
    (d) Alternative Administration.--
            (1) In general.--If, at any time after September 30, 2004, 
        the Secretary determines that a State cannot administer grant 
        amounts in conformity with this Act, the Secretary shall--
                    (A) oversee all future disbursements of grant funds 
                within the State;
                    (B) require such modifications to the 
                administration of grant amounts within the State as the 
                Secretary deems necessary to bring the State into 
                conformity with this Act; or
                    (C) authorize the administration of grant funds by 
                1 or more public housing agencies or other entities.
            (2) Applicability of law.--Any public housing agency or 
        other entity authorized to oversee the administration of grant 
        funds pursuant to paragraph (1)(C) shall be treated as a State 
        for purposes of this Act.

SEC. 7. ELIGIBLE FAMILIES.

    (a) Initial Eligibility.--
            (1) In general.--A family shall be eligible to receive 
        tenant-based rental and homeownership housing assistance if 
        that family--
                    (A) is not receiving assistance under section 8 of 
                the United States Housing Act of 1937 (42 U.S.C. 
                1437f); and
                    (B) does not have a gross income exceeding 80 
                percent of the median income for the area, as 
                determined by the Secretary with adjustments based upon 
                the size of the family, except that the Secretary may 
                establish income ceilings higher than 80 percent of the 
                median for the area for elderly and disabled families.
            (2) New admissions.--
                    (A) In general.--In any fiscal year, not less than 
                75 percent of families receiving their first payment of 
                tenant-based rental and homeownership housing 
                assistance within a State shall have incomes that do 
                exceed 30 percent of the area median income, as 
                determined by the Secretary, with adjustments based 
                upon the size of each family.
                    (B) Waiver.--
                            (i) In general.--Any State desiring a 
                        waiver of the income requirements in 
                        subparagraph (A) shall submit to the Secretary 
                        such evidence sufficient to allow for a finding 
                        that the requirements cannot reasonably be met 
                        during a particular fiscal year.
                            (ii) Modification.--In any fiscal year in 
                        which a waiver of the income requirements is 
                        granted, the Secretary shall modify the 
                        requirements of subparagraph (A) to a level 
                        that the State can reasonably attain.
                            (iii) Limitation.--The Secretary may grant 
                        a waiver of the income requirements only to the 
                        extent that not less than 55 percent of new 
                        admissions in the State in any fiscal year have 
                        incomes that do not exceed 30 percent of the 
                        area median income.
    (b) Continued Eligibility.--Subject to subsection (d), continued 
eligibility for tenant-based housing and homeownership assistance shall 
be determined in accordance with standards established--
            (1) by the State in which the family resides; or
            (2) in those instances in which the State does not 
        administer grant funds, by either the Secretary or the entity 
        responsible for the administration of such grant funds.
    (c) Preferences.--In distributing grant funds, each State may 
establish a uniform system that provides preference to families having 
certain characteristics, including--
            (1) working families;
            (2) families currently receiving assistance under the 
        Temporary Assistance for Needy Families program authorized by 
        the Personal Responsibility and Work Opportunity Reconciliation 
        Act of 1996 (42 U.S.C. 601 et seq.);
            (3) individuals at risk of chronic homelessness;
            (4) families affected by the conversion, sale, or 
        demolition of public housing projects;
            (5) families relocating from structures receiving project-
        based assistance under section 8(o)(13) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f(o)(13)); and
            (6) veterans of the Armed Forces of the United States.
    (d) Grandfathering Provision.--
            (1) Section 8 tenant-based assistance; voucher 
        assistance.--Any family or entity receiving homeownership, 
        project-based certificate, project-based voucher assistance, or 
        tenant-based assistance under section 8(o) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f(o)) as of the date of 
        enactment of this Act shall--
                    (A) for each of the fiscal years 2005 through 2009, 
                continue to receive such assistance subject to the 
                terms and conditions of that Act, from amounts made 
                available pursuant to section 14 of this Act; and
                    (B) for each of the fiscal years after 2009, 
                receive such assistance subject to the terms and 
                conditions of this Act.
            (2) Insufficient funds.--If grant funds received by the 
        State pursuant to this Act are insufficient to fund all 
        currently assisted families pursuant to paragraph (1)(A), the 
        State shall make every effort to continue to provide assistance 
        to the same number of families currently receiving assistance 
        in the State.
            (3) Conforming amendment.--Section 8(o) of the United 
        States Housing Act of 1937 (42 U.S.C. 1437f(o)) is amended by 
        adding at the end the following:
            ``(20) Phase-out.--Any family or entity receiving 
        homeownership, project-based certificate, project-based 
        voucher, or tenant-based assistance (provided under this 
        subsection) shall, for fiscal year 2010 and each fiscal year 
        thereafter, receive such assistance only according to the terms 
        and conditions of the Housing Assistance for Needy Families Act 
        of 2003.''.
    (e) Annual Review of Family Income.--Each State administering a 
grant under this Act shall conduct an annual review of the family 
income of each family receiving assistance under this Act, except that 
the State shall be required to review the income of elderly families 
every 3 years.

SEC. 8. AMOUNT OF ASSISTANCE.

    (a) In General.--
            (1) Administration.--Subject to subsections (b), (c), and 
        (d), the amount of any monthly assistance payment to a family 
        pursuant to this Act shall be determined by the State, or such 
        other entity responsible for administering such assistance.
            (2) Minimum payments.--
                    (A) In general.--Except as provided in subsection 
                (b), no family residing in a dwelling unit that is 
                assisted with grant funds under this Act shall be 
                required at the time of entering the lease to pay more 
                than 30 percent of such family's gross monthly income 
                as rent (including the amount allowed for tenant-paid 
                utilities), or as homeownership expenses.
                    (B) Exception.--A family may choose to pay a 
                greater amount of its gross monthly income to secure 
                higher quality housing.
    (b) Minimum Rental Amount.--
            (1) In general.--Each State shall establish a minimum 
        monthly rental amount of $50 per month for any dwelling unit 
        assisted with grant funds under this Act.
            (2) Hardship exemption.--A State may grant a hardship 
        exemption on a case-by-case basis.
    (c) Reasonable Rent.--The rent for dwelling units assisted under 
this Act shall be reasonable and appropriate in comparison with rents 
charged for non-luxury dwelling units in the private, unassisted local 
market.
    (d) Maximum Subsidy.--States shall establish maximum subsidy levels 
for housing assistance under this Act that are reasonable and 
appropriate for the market area.

SEC. 9. AUTHORIZATION, ALLOCATION, AND DISTRIBUTION OF FUNDS.

    (a) Allocations for Fiscal Years 2004 and 2005.--The Secretary 
shall allocate amounts made available in an appropriations Act for 
homeownership, project-based certificate, project-based voucher, or 
tenant-based assistance under section 8(o) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f) as follows:
            (1) Fiscal year 2004.--For fiscal year 2004, allocate to 
        public housing agencies under section 8 of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f), except that the 
        Secretary may reallocate to a State, from public housing 
        agencies in the same State, any amounts made available under 
        such section 8 that are not being utilized by the end of that 
        fiscal year.
            (2) Fiscal year 2005.--In fiscal year 2005, the Secretary 
        shall allocate to each State an amount that bears the same 
        ratio to the total amount available for assistance under this 
        Act for such fiscal year that the amount allocated in fiscal 
        year 2004 to public housing agencies within the State bears to 
        the total amount made available under this Act for fiscal year 
        2004.
    (b) Base Allocations for Fiscal Year 2006 and Subsequent Fiscal 
Years.--
            (1) Establishment of formula.--Not later than 12 months 
        after the date of enactment of this Act, the Secretary shall, 
        by regulation, establish a formula allocating amounts available 
        for fiscal year 2006 and subsequent fiscal years for block 
        grants to States under this Act.
            (2) Factors.--In establishing the formula under paragraph 
        (1), the Secretary shall consider factors reflecting the need 
        of low-income families in each State, including--
                    (A) the number of families receiving tenant-based 
                housing and homeownership assistance under this Act in 
                each State;
                    (B) the extent of poverty within the State;
                    (C) the cost of housing in the State or areas of 
                the State;
                    (D) the performance of the State in administering 
                grant amounts under this Act;
                    (E) the extent to which the State has available any 
                funds previously appropriated under this Act; and
                    (F) other objectively measurable criteria as the 
                Secretary may specify.
            (3) Special provisions.--Subject to paragraph (4), for each 
        of the fiscal years 2006 through 2009, the formula established 
        under paragraph (1) shall provide that--
                    (A) for a fiscal year in which the amount 
                appropriated for block grants under this Act is equal 
                to or greater than the amount appropriated in fiscal 
                year 2005, the Secretary shall provide each State with 
                an allocation that is not less than the allocation that 
                the State received in fiscal year 2005 adjusted for 
                changes in housing costs in the preceding year, and for 
                the State's performance in using funds and executing 
                its plan or strategy under section 6(a); or
                    (B) for a fiscal year in which the total amount 
                made available to States for assistance under this Act 
                is less than the total amount made available to States 
                for fiscal year 2005, the amount provided to each State 
                for such fiscal year shall not be less than the amount 
                that bears the same ratio to the total amount available 
                for assistance under this Act for such fiscal year that 
                the amount provided to the State for fiscal year 2005 
                bears to the total amount made available to States for 
                fiscal year 2005 adjusted for changes in housing costs 
                in the preceding year and for the State's performance 
                in using funds and executing its plan or strategy under 
                section 6(a).
            (4) Retention of funds; effect on allocation.--
                    (A) In general.--Beginning on September 30, 2005, 
                any amounts made available during a time determined by 
                the Secretary for housing assistance to any State that 
                exceed the amounts being utilized for housing 
                assistance by the end of the fiscal year shall be 
                identified and shall be retained by the State.
                    (B) Adjustment of allocation.--In calculating the 
                amount of assistance to allocate to a State in any 
                fiscal year following the 2005 fiscal year, the 
                Secretary shall reduce the amount that would otherwise 
                be allocated to that State pursuant to this paragraph 
                by the amounts identified in subparagraph (A).
                    (C) Performance adjustment.--In any fiscal year 
                following the 2005 fiscal year, subject to the 
                availability of appropriated amounts, and in addition 
                to amounts provided under the formula established under 
                paragraph (1), the Secretary shall allocate an amount 
                at least equal to the total amount of the reductions in 
                assistance made in such fiscal year pursuant to this 
                subparagraph to those States that have exceeded, as 
                determined by the Secretary, the performance standards 
                established by the Secretary under section 6(b).
    (c) Tenant-Protection Assistance.--Subject to the availability of 
appropriations, the Secretary shall allocate additional amounts to each 
State for tenant-protection assistance as authorized by section 8(t) of 
the United States Housing Act of 1937 (42 U.S.C. 1437f(t)) in fiscal 
year 2005 and each fiscal year thereafter based on the number of 
eligible tenants previously receiving such assistance in that State.

SEC. 10. ENVIRONMENTAL REVIEW.

    For purposes of environmental review, a grant under this Act shall 
be treated as assistance for a special project that is subject to 
section 305(c) of the Multifamily Housing Property Disposition Reform 
Act of 1994 (42 U.S.C. 3547), and shall be subject to the regulations 
issued by the Secretary to implement such section.

SEC. 11. INSPECTION OF UNITS.

    (a) In General.--The Secretary shall require that any State 
administering grant funds under this Act inspect a dwelling unit prior 
to the disbursement of those funds to determine whether the dwelling 
unit meets the housing quality standards described in subsection (b).
    (b) Housing Quality Standards.--All dwelling units in a State 
receiving assistance under this Act shall meet--
            (1) all applicable State and local housing quality 
        standards and code requirements; or
            (2) if there are no such standards or code requirements, 
        housing quality standards established by the Secretary.
    (c) Inspections.--Each State administering housing assistance 
provided under this Act shall ensure that all dwelling units receiving 
such assistance are maintained in accordance with the standards 
described in subsection (b). Every dwelling unit in the State receiving 
assistance under this Act shall be inspected not less than once every 3 
years.
    (d) Corrective Actions.--No assistance payment may be made pursuant 
to this Act to a dwelling unit which fails to meet the standards 
described in subsection (b).

SEC. 12. PORTABILITY.

    (a) In General.--Any family receiving housing assistance pursuant 
to this Act shall be eligible to receive assistance in any State in 
which a program is being administered under this Act.
    (b) Administration of Assistance.--Assistance for any family 
relocating pursuant to subsection (a) shall be administered in 
accordance with the provisions established pursuant to this Act in the 
State to which the family moves.

SEC. 13. COMPLIANCE.

    (a) Compliance Monitoring.--The Secretary may conduct such reviews 
and audits as may be necessary to determine whether a State has--
            (1) carried out the housing assistance activities and 
        objectives set forth in its plan under section 6(a) in a timely 
        or effective manner;
            (2) carried out those activities and objectives, including 
        certifications, in accordance with the requirements of this Act 
        and other applicable laws;
            (3) the capacity to continue to undertake those activities 
        in a timely and effective manner; and
            (4) met the performance standards established by the 
        Secretary pursuant to section 6(b).
    (b) Compliance Actions.--In addition to any other actions 
authorized under this or any other Act, if the Secretary finds, after 
notice and opportunity for a hearing, that a State receiving a grant 
under this Act has failed to comply substantially with any provision of 
this Act, including any performance standard established by the 
Secretary pursuant to this Act, and until the Secretary is satisfied 
that there is no longer any such failure to comply, the Secretary may--
            (1) terminate grant payments under this Act to the State 
        and provide for alternative administration of such grant 
        amounts;
            (2) withhold from the State amounts from the total 
        allocation that would otherwise be available to the State under 
        this Act;
            (3) reduce the amount of future grants to the State by an 
        amount equal to the amount of such grants that were not 
        expended in accordance with this Act;
            (4) limit the availability of grant amounts provided to the 
        State to programs and activities under this Act not affected by 
        such failure to comply;
            (5) withhold from the State other amounts allocated for the 
        State under other programs administered by the Secretary;
            (6) refer the matter to the Attorney General of the United 
        States with a recommendation that an appropriate civil action 
        be instituted; or
            (7) order other corrective action with respect to the 
        State.

SEC. 14 AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such sums as may be 
necessary to carry out this Act for each of fiscal years 2004 through 
2009.
                                 <all>