[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1851 Introduced in House (IH)]

110th CONGRESS
  1st Session
                                H. R. 1851

  To reform the housing choice voucher program under section 8 of the 
                   United States Housing Act of 1937.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 29, 2007

Ms. Waters (for herself, Mr. Frank of Massachusetts, Mrs. Biggert, and 
  Mr. Shays) introduced the following bill; which was referred to the 
                    Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
  To reform the housing choice voucher program under section 8 of the 
                   United States Housing Act of 1937.

    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 ``Section 8 Voucher Reform Act of 
2007''.

SEC. 2. INSPECTION OF DWELLING UNITS.

    Section 8(o)(8) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(8)) is amended--
            (1) by striking subparagraph (A) and inserting the 
        following new subparagraph:
                    ``(A) Initial inspection.--
                            ``(i) In general.--For each dwelling unit 
                        for which a housing assistance payment contract 
                        is established under this subsection, the 
                        public housing agency (or other entity pursuant 
                        to paragraph (11)) shall inspect the unit 
                        before any assistance payment is made to 
                        determine whether the dwelling unit meets the 
                        housing quality standards under subparagraph 
                        (B), except as provided in clause (ii) of this 
                        subparagraph.
                            ``(ii) Correction of non-life threatening 
                        conditions.--In the case of any dwelling unit 
                        that is determined, pursuant to an inspection 
                        under clause (i), not to meet the housing 
                        quality standards under subparagraph (B), 
                        assistance payments may be made for the unit 
                        notwithstanding subparagraph (C) if failure to 
                        meet such standards is a result only of non-
                        life threatening conditions. A public housing 
                        agency making assistance payments pursuant to 
                        this clause for a dwelling unit shall, 30 days 
                        after the beginning of the period for which 
                        such payments are made, suspend any assistance 
                        payments for the unit if any deficiency 
                        resulting in noncompliance with the housing 
                        quality standards has not been corrected by 
                        such time, and may not resume such payments 
                        until each such deficiency has been 
                        corrected.''; and
            (2) by striking subparagraph (D) and inserting the 
        following new subparagraph:
                    ``(D) Biennial inspections.--
                            ``(i) Requirement.--Each public housing 
                        agency providing assistance under this 
                        subsection (or other entity, as provided in 
                        paragraph (11)) shall, for each assisted 
                        dwelling unit, make biennial inspections during 
                        the term of the housing assistance payments 
                        contract for the unit to determine whether the 
                        unit is maintained in accordance with the 
                        requirements under subparagraph (A). The agency 
                        (or other entity) shall retain the records of 
                        the inspection for a reasonable time and shall 
                        make the records available upon request to the 
                        Secretary, the Inspector General for the 
                        Department of Housing and Urban Development, 
                        and any auditor conducting an audit under 
                        section 5(h).
                            ``(ii) Sufficient inspection.--An 
                        inspection of a dwelling unit shall be 
                        sufficient to comply with the inspection 
                        requirement under clause (i) if--
                                    ``(I) the inspection was conducted 
                                pursuant to requirements under a 
                                Federal, State, or local housing 
                                assistance program (including the HOME 
                                investment partnerships program under 
                                title II of the Cranston-Gonzalez 
                                National Affordable Housing Act (42 
                                U.S.C. 12721 et seq.)); and
                                    ``(II) pursuant to such inspection, 
                                the dwelling was determined to meet the 
                                standards or requirements regarding 
                                housing quality or safety applicable to 
                                units assisted under such program, and 
                                the public housing agency has certified 
                                to the Secretary that such standards or 
                                requirements provide the same 
                                protection to occupants of dwelling 
                                units meeting such standards or 
                                requirements as, or greater protection 
                                than, the housing quality standards 
                                under subparagraph (B).''.

SEC. 3. RENT REFORM AND INCOME REVIEWS.

    (a) Rent for Public Housing and Section 8 Programs.--Section 3 of 
the United States Housing Act of 1937 (42 U.S.C. 1437a(a)) is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1) by inserting ``Low-income 
                occupancy requirement and rental payments.--'' after 
                ``(1)''; and
                    (B) by adding at the end the following new 
                paragraphs:
            ``(6) Reviews of family income.--
                    ``(A) Frequency.--Reviews of family income for 
                purposes of this section shall be made--
                            ``(i) in the case of all families, upon the 
                        initial provision of housing assistance for the 
                        family;
                            ``(ii) annually thereafter, except as 
                        provided in subparagraph (B)(i);
                            ``(iii) upon the request of the family, at 
                        any time the income or deductions (under 
                        subsection (b)(5)) of the family change by an 
                        amount that is estimated to result in a 
                        decrease of $1,500 (or such lower amount as the 
                        public housing agency may, at the option of the 
                        agency, establish) or more in annual adjusted 
                        income; and
                            ``(iv) at any time the income or deductions 
                        (under subsection (b)(5)) of the family change 
                        by an amount that is estimated to result in an 
                        increase of $1,500 or more in annual adjusted 
                        income, except that any increase in the earned 
                        income of a family shall not be considered for 
                        purposes of this clause (except that earned 
                        income may be considered if the increase 
                        corresponds to previous decreases under clause 
                        (iii)).
                    ``(B) Fixed-income families.--
                            ``(i) Self certification and 3-year 
                        review.--In the case of any family described in 
                        clause (ii), after the initial review of the 
                        family's income pursuant to subparagraph 
                        (A)(i), the public housing agency or owner 
                        shall not be required to conduct a review of 
                        the family's income pursuant to subparagraph 
                        (A)(ii) for any year for which such family 
                        certifies, in accordance with such requirements 
                        as the Secretary shall establish, that the 
                        income of the family meets the requirements of 
                        clause (ii) of this subparagraph, except that 
                        the public housing agency or owner shall 
                        conduct a review of each such family's income 
                        not less than once every 3 years.
                            ``(ii) Eligible families.--A family 
                        described in this clause is a family who has an 
                        income, as of the most recent review pursuant 
                        to subparagraph (A) or clause (i) of this 
                        subparagraph, of which 90 percent or more 
                        consists of fixed income, as such term is 
                        defined in clause (iii).
                            ``(iii) Fixed income.--For purposes of this 
                        subparagraph, the term `fixed income' includes 
                        income from--
                                    ``(I) the supplemental security 
                                income program under title XVI of the 
                                Social Security Act, including 
                                supplementary payments pursuant to an 
                                agreement for Federal administration 
                                under section 1616(a) of the Social 
                                Security Act and payments pursuant to 
                                an agreement entered into under section 
                                212(b) of Public Law 93-66;
                                    ``(II) Social Security payments;
                                    ``(III) Federal, State, local and 
                                private pension plans; and
                                    ``(IV) other periodic payments 
                                received from annuities, insurance 
                                policies, retirement funds, disability 
                                or death benefits, and other similar 
                                types of periodic receipts.
                    ``(C) In general.--Reviews of family income for 
                purposes of this section shall be subject to the 
                provisions of section 904 of the Stewart B. McKinney 
                Homeless Assistance Amendments Act of 1988.
            ``(7) Calculation of income.--
                    ``(A) Use of prior year's income.--Except as 
                otherwise provided in this paragraph, in determining 
                the income of a family for a year, a public housing 
                agency or owner may use the income of the family as 
                determined by the agency or owner for the preceding 
                year, taking into consideration any redetermination of 
                income during such prior year pursuant to clause (iii) 
                or (iv) of paragraph (6)(A).
                    ``(B) Earned income.--For purposes of this section, 
                the earned income of a family for a year shall be the 
                amount of earned income by the family in the prior year 
                minus an amount equal to 10 percent of the lesser of 
                such prior year's earned income or $10,000, except that 
                the income of a family for purposes of section 16 
                (relating to eligibility for assisted housing and 
                income mix) shall be determined without regard to any 
                reduction under this subparagraph.
                    ``(C) Inflationary adjustment for fixed income 
                families.--If, for any year, a public housing agency or 
                owner determines the income for any family described in 
                paragraph (6)(B)(ii), or the amount of fixed income of 
                any other family, based on the prior year's income or 
                fixed income, respectively, pursuant to subparagraph 
                (A), such prior year's income or fixed income, 
                respectively, shall be adjusted by applying an 
                inflationary factor as the Secretary shall, by 
                regulation, establish.
                    ``(D) Other income.--If, for any year, a public 
                housing agency or owner determines the income for any 
                family based on the prior year's income, with respect 
                to prior year calculations of types of income not 
                subject to subparagraph (B), a public housing agency or 
                owner may make other adjustments as it considers 
                appropriate to reflect current income.
                    ``(E) Safe harbor.--A public housing agency or 
                owner may, to the extent such information is available 
                to the public housing agency or owner, determine the 
                family's income for purposes of this section based on 
                timely income determinations made for purposes of other 
                means-tested Federal public assistance programs 
                (including the program for block grants to States for 
                temporary assistance for needy families under part A of 
                title IV of the Social Security Act, a program for 
                medicaid assistance under a State plan approved under 
                title XIX of the Social Security Act, and the food 
                stamp program as defined in section 3(h) of the Food 
                Stamp Act of 1977).
                    ``(F) PHA and owner compliance.--A public housing 
                agency or owner may not be considered to fail to comply 
                with this paragraph or paragraph (6) due solely to any 
                de minimus errors made by the agency or owner in 
                calculating family incomes.'';
            (2) by striking subsections (d) and (e); and
            (3) by redesignating subsection (f) as subsection (d).
    (b) Income.--Section 3(b) of the United States Housing Act of 1937 
(42 U.S.C. 1437a(b)) is amended--
            (1) by striking paragraph (4) and inserting the following 
        new paragraph:
            ``(4) Income.--The term `income' means, with respect to a 
        family, income received from all sources by each member of the 
        household who is 18 years of age or older or is the head of 
        household, as determined in accordance with criteria prescribed 
        by the Secretary, in consultation with the Secretary of 
        Agriculture, subject to the following requirements:
                    ``(A) Included amounts.--Such term includes 
                recurring gifts and receipts, actual income from 
                assets, and profit or loss from a business.
                    ``(B) Excluded amounts.--Such term does not 
                include--
                            ``(i) any imputed return on assets; and
                            ``(ii) any amounts that would be eligible 
                        for exclusion under section 1613(a)(7) of the 
                        Social Security Act (42 U.S.C. 1382b(a)(7)).
                    ``(C) Earned income of students.--Such term does 
                not include earned income of any dependent earned 
                during any period that such dependent is attending 
                school on a full-time basis.
                    ``(D) Other exclusions.--Such term shall not 
                include other exclusions from income as are established 
                by the Secretary or any amount required by Federal law 
                to be excluded from consideration as income. The 
                Secretary may not require a public housing agency or 
                owner to maintain records of any amounts excluded from 
                income pursuant to this subparagraph.''; and
            (2) by striking paragraph (5) and inserting the following 
        new paragraph:
            ``(5) Adjusted income.--The term `adjusted income' means, 
        with respect to a family, the amount (as determined by the 
        public housing agency or owner) of the income of the members of 
        the family residing in a dwelling unit or the persons on a 
        lease, after any deductions from income as follows:
                    ``(A) Elderly and disabled families.--$725 in the 
                case of any family that is an elderly family or a 
                disabled family.
                    ``(B) Dependents.--In the case of any family that 
                includes a member or members who--
                            ``(i) are less than 18 years of age or 
                        attending school or vocational training on a 
                        full-time basis; or
                            ``(ii) is a person with disabilities who is 
                        18 years of age or older and resides in the 
                        household,
                $500 for each such member.
                    ``(C) Health and medical expenses.--The amount, if 
                any, by which 10 percent of annual family income is 
                exceeded by the sum of--
                            ``(i) in the case of any elderly or 
                        disabled family, any unreimbursed health and 
                        medical care expenses; and
                            ``(ii) any unreimbursed reasonable 
                        attendant care and auxiliary apparatus expenses 
                        for each handicapped member of the family, to 
                        the extent necessary to enable any member of 
                        such family to be employed.
                    ``(D) Permissive deductions.--Such additional 
                deductions as a public housing agency may, at its 
                discretion, establish, except that the Secretary shall 
                establish procedures to ensure that such deductions do 
                not increase Federal expenditures.
        The Secretary shall annually adjust the amounts of the 
        exclusions under subparagraphs (A) and (B), as such amounts may 
        have been previously adjusted, by applying an inflationary 
        factor as the Secretary shall, by regulation, establish. If the 
        dollar amount of any such exclusion determined for any year by 
        applying such inflationary factor is not a multiple of $25, the 
        Secretary shall round such amount to the next lowest multiple 
        of $25.''.
    (c) Housing Choice Voucher Program.--Paragraph (5) of section 8(o) 
of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(5)) is 
amended--
            (1) in the paragraph heading, by striking ``Annual review'' 
        and inserting ``Reviews'';
            (2) in subparagraph (A)--
                    (A) by striking ``the provisions of'' and inserting 
                ``paragraphs (6) and (7) of section 3(a) and to''; and
                    (B) by striking ``and shall be conducted upon the 
                initial provision of housing assistance for the family 
                and thereafter not less than annually''; and
            (3) in subparagraph (B), by striking the second sentence.
    (d) Enhanced Voucher Program.--Section 8(t)(1)(D) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(D)) is amended by 
striking ``income'' and inserting ``annual adjusted income''.
    (e) Effective Date and Transition.--The amendments made by this 
section shall apply with respect to fiscal year 2008 and fiscal years 
thereafter.

SEC. 4. ELIGIBILITY FOR ASSISTANCE BASED ON ASSETS AND INCOME.

    (a) Assets.--Section 16 of the United States Housing Act of 1937 
(42 U.S.C. 1437n) is amended by inserting after subsection (d) the 
following new subsection:
    ``(e) Eligibility for Assistance Based on Assets.--
            ``(1) Limitation on assets.--Subject to paragraph (3) and 
        notwithstanding any other provision of this Act, a dwelling 
        unit assisted under this Act may not be rented and assistance 
        under this Act may not be provided, either initially or at each 
        recertification of family income, to any family--
                    ``(A) whose net family assets exceed $100,000, as 
                such amount is adjusted annually by applying an 
                inflationary factor as the Secretary considers 
                appropriate; or
                    ``(B) who has a present ownership interest in, and 
                a legal right to reside in, real property that is 
                suitable for occupancy as a residence, except that the 
                prohibition under this subparagraph shall not apply 
                to--
                            ``(i) any property for which the family is 
                        receiving assistance under this Act;
                            ``(ii) any person that is a victim of 
                        domestic violence; or
                            ``(iii) any family that is making a good 
                        faith effort to sell such property.
            ``(2) Net family assets.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `net family assets' means, for all members of 
                the household, the net cash value of all assets after 
                deducting reasonable costs that would be incurred in 
                disposing of real property, savings, stocks, bonds, and 
                other forms of capital investment. Such term does not 
                include interests in Indian trust land, equity accounts 
                in homeownership programs of the Department of Housing 
                and Urban Development, or Family Self Sufficiency 
                accounts.
                    ``(B) Exclusions.--Such term does not include--
                            ``(i) the value of personal property, 
                        except for items of personal property of 
                        significant value, as the public housing agency 
                        may determine;
                            ``(ii) the value of any retirement account; 
                        and
                            ``(iii) any amounts recovered in any civil 
                        action or settlement based on a claim of 
                        malpractice, negligence, or other breach of 
                        duty owed to a member of the family and arising 
                        out of law, that resulted in a member of the 
                        family being disabled (under the meaning given 
                        such term in section 1614 of the Social 
                        Security Act (42 U.S.C. 1382c)).
                    ``(C) Trust funds.--In cases where a trust fund has 
                been established and the trust is not revocable by, or 
                under the control of, any member of the family or 
                household, the value of the trust fund shall not be 
                considered an asset of a family if the fund continues 
                to be held in trust. Any income distributed from the 
                trust fund shall be considered income for purposes of 
                section 3(b) and any calculations of annual family 
                income, except in the case of medical expenses for a 
                minor.
                    ``(D) Self-certification.--A public housing agency 
                or owner may determine the net assets of a family, for 
                purposes of this section, based on the amounts reported 
                by the family at the time the agency or owner reviews 
                the family's income.
            ``(3) Compliance for public housing dwelling units.--When 
        recertifying family income with respect to families residing in 
        public housing dwelling units, a public housing agency may, in 
        the discretion of the agency and only pursuant to a policy that 
        is set forth in the public housing agency plan under section 5A 
        for the agency, choose not to enforce the limitation under 
        paragraph (1).
            ``(4) Authority to delay evictions.--In the case of a 
        family residing in a dwelling unit assisted under this Act who 
        does not comply with the limitation under paragraph (1), the 
        public housing agency or project owner may delay eviction of 
        the family based on such noncompliance for a period of not more 
        than 6 months.''.
    (b) Income.--The United States Housing Act of 1937 is amended--
            (1) in section 3(a)(1) (42 U.S.C. 1437a(a)(1)), by striking 
        the first sentence and inserting the following: ``Dwelling 
        units assisted under this Act may be rented, and assistance 
        under this Act may be provided, whether initially or at time of 
        recertification, only to families who are low-income families 
        at the time such initial or continued assistance, respectively, 
        is provided. When recertifying family income with respect to 
        families residing in public housing dwelling units, a public 
        housing agency may, in the discretion of the agency and only 
        pursuant to a policy that is set forth in the public housing 
        agency plan under section 5A for the agency, choose not to 
        enforce the prohibition under the preceding sentence. When 
        recertifying family income with respect to families residing in 
        dwelling units for which project-based assistance is provided, 
        a project owner may, in the owner's discretion and only 
        pursuant to a policy adopted by such owner, choose not to 
        enforce such prohibition. In the case of a family residing in a 
        dwelling unit assisted under this Act who does not comply with 
        the prohibition under the first sentence of this paragraph, the 
        public housing agency or project owner may delay eviction of 
        the family based on such noncompliance for a period of not more 
        than 6 months.''; and
            (2) in section 8(o)(4) (42 U.S.C. 1437f(o)(4)), by striking 
        the matter preceding subparagraph (A) and inserting the 
        following:
            ``(4) Eligible families.--Assistance under this subsection 
        may be provided, whether initially or at each recertification, 
        only pursuant to subsection (t) to a family eligible for 
        assistance under such subsection or to a family who at the time 
        of such initial or continued assistance, respectively, is a 
        low-income family that is--''.

SEC. 5. TARGETING ASSISTANCE TO LOW-INCOME WORKING FAMILIES.

    (a) Vouchers.--Section 16(b)(1) of the United States Housing Act of 
1937 (42 U.S.C. 1437n(b)(1)) is amended--
            (1) by inserting after ``do not exceed'' the following: 
        ``the higher of (A) the poverty line (as such term is defined 
        in section 673 of the Omnibus Budget Reconciliation Act of 1981 
        (42 U.S.C. 9902), including any revision required by such 
        section) applicable to a family of the size involved, or (B)''; 
        and
            (2) by inserting before the period at the end the 
        following: ``; and except that clause (A) of this sentence 
        shall not apply in the case of families residing in Puerto Rico 
        or any other territory or possession of the United States''.
    (b) Public Housing.--Section 16(a)(2)(A) of the United States 
Housing Act of 1937 (42 U.S.C. 1437n(a)(2)(A)) is amended--
            (1) by inserting after ``do not exceed'' the following: 
        ``the higher of (i) the poverty line (as such term is defined 
        in section 673 of the Omnibus Budget Reconciliation Act of 1981 
        (42 U.S.C. 9902), including any revision required by such 
        section) applicable to a family of the size involved, or 
        (ii)''; and
            (2) by inserting before the period at the end the 
        following: ``; and except that clause (i) of this sentence 
        shall not apply in the case of families residing in Puerto Rico 
        or any other territory or possession of the United States''.
    (c) Project-Based Section 8 Assistance.--Section 16(b)(1) of the 
United States Housing Act of 1937 (42 U.S.C. 1437n(b)(1)) is amended--
            (1) by inserting after ``do not exceed'' the following: 
        ``the higher of (A) the poverty line (as such term is defined 
        in section 673 of the Omnibus Budget Reconciliation Act of 1981 
        (42 U.S.C. 9902), including any revision required by such 
        section) applicable to a family of the size involved, or (B)''; 
        and
            (2) by inserting before the period at the end the 
        following: ``; and except that clause (A) of this sentence 
        shall not apply in the case of families residing in Puerto Rico 
        or any other territory or possession of the United States''.

SEC. 6. VOUCHER RENEWAL FUNDING.

    (a) In General.--Section 8 of the United States Housing Act of 1937 
(42 U.S.C. 1437f) is amended by striking subsection (dd) and inserting 
the following new subsection:
    ``(dd) Tenant-Based Vouchers.--
            ``(1) Authorization of appropriations.--There are 
        authorized to be appropriated, for each of fiscal years 2008 
        through 2012, such sums as may be necessary for tenant-based 
        assistance under subsection (o) for the following purposes:
                    ``(A) To renew all expiring annual contributions 
                contracts for tenant-based rental assistance.
                    ``(B) To provide tenant-based rental assistance 
                for--
                            ``(i) relocation and replacement of housing 
                        units that are demolished or disposed of 
                        pursuant to the Omnibus Consolidated 
                        Rescissions and Appropriations Act of 1996 
                        (Public Law 104-134);
                            ``(ii) conversion of section 23 projects to 
                        assistance under this section;
                            ``(iii) the family unification program 
                        under subsection (x) of this section;
                            ``(iv) relocation of witnesses in 
                        connection with efforts to combat crime in 
                        public and assisted housing pursuant to a 
                        request from a law enforcement or prosecution 
                        agency;
                            ``(v) enhanced vouchers authorized under 
                        subsection (t) of this section;
                            ``(vi) vouchers in connection with the HOPE 
                        VI program under section 24;
                            ``(vii) demolition or disposition of public 
                        housing units pursuant to section 18 of the 
                        United States Housing Act of 1937 (42 U.S.C. 
                        1437p);
                            ``(viii) mandatory and voluntary 
                        conversions of public housing to vouchers, 
                        pursuant to sections 33 and 22 of the United 
                        States Housing Act of 1937, respectively (42 
                        U.S.C. 1437z-5, 1437t);
                            ``(ix) vouchers necessary to comply with a 
                        consent decree or court order;
                            ``(x) vouchers to replace dwelling units 
                        that cease to receive project-based assistance 
                        under subsection (b), (c), (d), (e), or (v) of 
                        this section;
                            ``(xi) tenant protection assistance, 
                        including replacement and relocation 
                        assistance; and
                            ``(xii) emergency voucher assistance for 
                        the protection of victims of domestic violence, 
                        dating violence, sexual assault, or stalking.
                Subject only to the availability of sufficient amounts 
                provided in appropriation Acts, the Secretary shall 
                provide tenant-based rental assistance to replace all 
                dwelling units that cease to be available as assisted 
                housing as a result of clause (i), (ii), (v), (vi), 
                (vii), (viii), or (x).
            ``(2) Allocation of renewal funding among public housing 
        agencies.--
                    ``(A) From amounts appropriated for each year 
                pursuant to paragraph (1)(A), the Secretary shall 
                provide renewal funding for each public housing 
                agency--
                            ``(i) based on leasing and costs from the 
                        preceding calendar year, as adjusted by an 
                        annual adjustment factor to be established by 
                        the Secretary;
                            ``(ii) by making any adjustments necessary 
                        to provide for the first-time renewal of 
                        vouchers funded under paragraph (1)(B); and
                            ``(iii) by making such other adjustments as 
                        the Secretary considers appropriate, including 
                        adjustments necessary to address changes in 
                        voucher utilization rates and voucher costs 
                        related to natural and other major disasters.
                    ``(B) Leasing and cost data.--For purposes of 
                subparagraph (A)(i), leasing and cost data shall be 
                calculated annually by using the average for the 
                preceding calendar year. Such leasing data shall be 
                adjusted to include vouchers that were set aside under 
                a commitment to provide project-based assistance under 
                subsection (o)(13) and to exclude amounts funded 
                through advances under paragraph (3).
                    ``(C) Moving to work.--Notwithstanding 
                subparagraphs (A) and (B), each public housing agency 
                participating at any time in the moving to work 
                demonstration under section 204 of the Departments of 
                Veterans Affairs and Housing and Urban Development, and 
                Independent Agencies Appropriations Act, 1996 (42 
                U.S.C. 1437f note) shall be funded pursuant to its 
                agreement under such program and shall be subject to 
                any pro rata adjustment made under subparagraph (D)(i).
                    ``(D) Pro rata allocation.--
                            ``(i) Insufficient funds.--To the extent 
                        that amounts made available for a fiscal year 
                        are not sufficient to provide each public 
                        housing agency with the full allocation for the 
                        agency determined pursuant to subparagraphs (A) 
                        and (C), the Secretary shall reduce such 
                        allocation for each agency on a pro rata basis, 
                        except that renewal funding of enhanced 
                        vouchers under section 8(t) shall not be 
                        subject to such proration.
                            ``(ii) Excess funds.--To the extent that 
                        amounts made available for a fiscal year exceed 
                        the amount necessary to provide each housing 
                        agency with the full allocation for the agency 
                        determined pursuant to subparagraphs (A) and 
                        (C), such excess amounts shall be used for the 
                        purposes specified in subparagraphs (B) and (D) 
                        of paragraph (4).
            ``(3) Advances.--
                    ``(A) Authority.--During the last 3 months of each 
                calendar year, the Secretary shall provide amounts to 
                any public housing agency, at the request of the 
                agency, in an amount up to two percent of the 
                allocation for the agency for such calendar year, 
                subject to subparagraph (C).
                    ``(B) Use.--Amounts advanced under subparagraph (A) 
                may be used to pay for additional voucher costs, 
                including costs related to temporary overleasing.
                    ``(C) Use of prior year amounts.--During the last 3 
                months of a calendar year, if amounts previously 
                provided to a public housing agency for tenant-based 
                assistance for such year or for previous years remain 
                unobligated and available to the agency--
                            ``(i) the agency shall exhaust such amounts 
                        to cover any additional voucher costs under 
                        subparagraph (B) before amounts advanced under 
                        subparagraph (A) may be so used; and
                            ``(ii) the amount that may be advanced 
                        under subparagraph (A) to the agency shall be 
                        reduced by an amount equal to the total of such 
                        previously provided and unobligated amounts.
                    ``(D) Repayment.--Amounts advanced under 
                subparagraph (A) in a calendar year shall be repaid to 
                the Secretary in the subsequent calendar year by 
                reducing the amounts made available for such agency for 
                such subsequent calendar year pursuant to allocation 
                under paragraph (2) by an amount equal to the amount so 
                advanced to the agency.
            ``(4) Recapture.--
                    ``(A) In general.--The Secretary shall recapture, 
                from amounts provided under the annual contributions 
                contract for a public housing agency for a calendar 
                year, all accumulated amounts allocated under paragraph 
                (2) and from previous years that are unused by the 
                agency at the end of each calendar year except--
                            ``(i) with respect to the recapture under 
                        this subparagraph at the end of 2007, an amount 
                        equal to one twelfth the amount allocated to 
                        the public housing agency for such year 
                        pursuant to paragraph (2)(A); and
                            ``(ii) with respect to the recapture under 
                        this subparagraph at the end of each of 2008, 
                        2009, 2010, and 2011, an amount equal to 2 
                        percent of such amount allocated to the agency 
                        for such year.
                    ``(B) Reallocation.--Not later than May 1 of each 
                calendar year, the Secretary shall--
                            ``(i) calculate the aggregate unused 
                        amounts for the preceding year recaptured 
                        pursuant to subparagraph (A);
                            ``(ii) set aside and make available such 
                        amounts as the Secretary considers appropriate 
                        to reimburse public housing agencies for 
                        increased costs related to portability and 
                        family self-sufficiency activities during such 
                        year; and
                            ``(iii) reallocate all remaining amounts 
                        among public housing agencies, with priority 
                        given based on the extent to which an agency 
                        has utilized the amount allocated under 
                        paragraph (2) for the agency to serve eligible 
                        families.
                    ``(C) Use.--Amounts reallocated to a public housing 
                agency pursuant to subparagraph (B)(iii) may be used 
                only to increase voucher leasing rates to the level 
                authorized for the agency.''.
    (b) Absorption of Voucher From Other Agencies.--Section 8(r)(2) of 
the United States Housing Act of 1937 (42 U.S.C. 1437f(r)(2)) is 
amended by adding after the period at the end the following: ``The 
agency shall absorb the family into its program for voucher assistance 
under this section and shall have priority to receive additional 
funding from the Secretary for the housing assistance provided for such 
family from amounts made available pursuant to subsection (dd)(4)(B).''

SEC. 7. ADMINISTRATIVE FEES.

    (a) In General.--Section 8(q) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(q)) is amended--
            (1) in paragraph (1), by striking subparagraphs (B) and (C) 
        and inserting the following new subparagraphs:
                    ``(B) Calculation.--The fee under this subsection 
                shall--
                            ``(i) be payable to each public housing 
                        agency for each month for which a dwelling unit 
                        is covered by an assistance contract;
                            ``(ii) include an amount for the cost of 
                        issuing voucher to new participants; and
                            ``(iii) be updated each year using an index 
                        of changes in wage data or other objectively 
                        measurable data that reflect the costs of 
                        administering the program for such assistance, 
                        as determined by the Secretary.
                    ``(C) Publication.--The Secretary shall cause to be 
                published in the Federal Register the fee rate for each 
                geographic area.''; and
            (2) in paragraph (4), by striking ``1999'' and inserting 
        ``2007''.
    (b) Repeal.--Section 202 of the Departments of Veterans Affairs and 
Housing and Urban Development, and Independent Agencies Appropriations 
Act, 1997 (42 U.S.C. 1437f note; Public Law 104-204; 110 Stat. 2893) is 
hereby repealed.
    (c) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act.

SEC. 8. SECTION 8 HOMEOWNERSHIP DOWNPAYMENT PROGRAM.

    Section 8(y)(7) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(y)(7)) is amended by striking subparagraphs (A) and (B) and 
inserting the following new subparagraph:
                    ``(A) In general.--Subject to the provisions of 
                this paragraph, in the case of a family on whose behalf 
                rental assistance under section 8(o) has been provided 
                for a period of not less than 12 months prior to the 
                date of receipt of downpayment assistance under this 
                paragraph, a public housing agency may, in lieu of 
                providing monthly assistance payments under this 
                subsection on behalf of a family eligible for such 
                assistance and at the discretion of the agency, provide 
                a downpayment assistance grant in accordance with 
                subparagraph (B).
                    ``(B) Grant requirements.--A downpayment assistance 
                grant under this paragraph--
                            ``(i) shall be used by the family only as a 
                        contribution toward the downpayment and 
                        reasonable and customary closing costs required 
                        in connection with the purchase of a home;
                            ``(ii) shall be in the form of a single 
                        one-time grant; and
                            ``(iii) may not exceed $10,000.
                    ``(C) No effect on obtaining outside sources for 
                downpayment assistance.--This Act may not be construed 
                to prohibit a public housing agency from providing 
                downpayment assistance to families from sources other 
                than a grant provided under this Act, or as determined 
                by the public housing agency.''.

SEC. 9. PHA REPORTING OF RENT PAYMENTS TO CREDIT REPORTING AGENCIES.

    (a) In General.--Section 3 of the United States Housing Act of 1937 
(42 U.S.C. 1437a) is amended by adding at the end the following new 
subsection:
    ``(g) PHA Reporting of Rent Payments to Credit Reporting 
Agencies.--
            ``(1) Authority.--To the extent that a family receiving 
        tenant-based housing choice vouchers under section 8 by a 
        public housing agency agrees in writing to reporting under this 
        subsection, the public housing agency may submit to consumer 
        reporting agencies described in section 603(p) of the Fair 
        Credit Reporting Act (15 U.S.C. 1681a) information regarding 
        the past rent payment history of the family with respect to the 
        dwelling unit for which such assistance is provided.
            ``(2) Format.--The Secretary, after consultation with 
        consumer reporting agencies referred in paragraph (1), shall 
        establish a system and format to be used by public housing 
        agencies for reporting of information under such paragraph that 
        provides such information in a format and manner that is 
        similar to other credit information submitted to such consumer 
        reporting agencies and is usable by such agencies.''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect on the date of the enactment of this Act.

SEC. 10. PERFORMANCE ASSESSMENTS.

    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 new paragraph:
            ``(21) Performance assessments.--
                    ``(A) Establishment.--The Secretary shall, by 
                regulation, establish standards and procedures for 
                assessing the performance of public housing agencies in 
                carrying out the programs for tenant-based rental 
                assistance under this subsection and for homeownership 
                assistance under subsection (y).
                    ``(B) Contents.--The standards and procedures under 
                this paragraph shall provide for assessment of the 
                performance of public housing agencies in the following 
                areas:
                            ``(i) Quality of dwelling units obtained 
                        using such assistance.
                            ``(ii) Extent of utilization of assistance 
                        amounts provided to the agency.
                            ``(iii) Financial condition of the agency.
                            ``(iv) Timeliness and accuracy of reporting 
                        by the agency to the Secretary.
                            ``(v) Effectiveness in carrying out 
                        policies to achieve deconcentration of poverty.
                            ``(vi) Such other areas as the Secretary 
                        considers appropriate.
                    ``(C) Periodic assessment.--Using the standards and 
                procedures established under this paragraph, the 
                Secretary shall conduct an assessment of the 
                performance of each public housing agency carrying out 
                a program referred to in subparagraph (A) and shall 
                submit a report to the Congress regarding the results 
                of each such assessment.''.

SEC. 11. PHA PROJECT-BASED ASSISTANCE.

    Section 8(o)(13) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(o)(13)) is amended--
            (1) in subparagraph (H), by inserting before the period at 
        the end of the first sentence the following: ``, except that in 
        the case of a contract unit that has been allocated low-income 
        housing tax credits and for which the rent limitation pursuant 
        to such section 42 is less than the amount that would otherwise 
        be permitted under this subparagraph, the rent for such unit 
        may, in the sole discretion of a public housing agency, be 
        established at the higher section 8 rent, subject only to 
        paragraph (10)(A)''; and
            (2) in subparagraph (I)(i), by inserting before the 
        semicolon the following: ``, except that the contract may 
        provide that the maximum rent permitted for a dwelling unit 
        shall not be less than the initial rent for the dwelling unit 
        under the initial housing assistance payments contract covering 
        the unit''.

SEC. 12. REPORTS ON RENT BURDEN.

    Section 8(o)(1) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(1)) is amended by striking subparagraph (E) and inserting the 
following new subparagraph:
                    ``(E) Reviews.--
                            ``(i) Rent burdens.--The Secretary shall 
                        monitor rent burdens and submit a report to the 
                        Congress annually on the percentage of families 
                        assisted under this subsection, occupying 
                        dwelling units of any size, that pay more than 
                        30 percent of their adjusted incomes for rent. 
                        Using information regularly reported by public 
                        housing agencies, the Secretary shall provide 
                        public housing agencies, on an annual basis, a 
                        report with the information described in the 
                        first sentence of this clause, and may require 
                        a public housing agency to modify a payment 
                        standard that results in a significant 
                        percentage of families assisted under this 
                        subsection, occupying dwelling units of any 
                        size, paying more than 30 percent of their 
                        adjusted incomes for rent.
                            ``(ii) Concentration of poverty.--The 
                        Secretary shall submit a report to the Congress 
                        annually on the degree to which families 
                        assisted under this subsection in each 
                        metropolitan area are clustered in lower rent, 
                        higher poverty areas and how, and the extent to 
                        which, greater geographic distribution of such 
                        assisted families could be achieved, including 
                        by increasing payment standards for particular 
                        communities within such metropolitan areas.''.

SEC. 13. EFFECTIVE DATE.

    Except as otherwise specifically provided in this Act, this Act and 
the amendments made by this Act, shall take effect on January 1, 2008.
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