[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 2684 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 2684

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 3, 2008

  Mr. Dodd (for himself, Mr. Schumer, Mr. Reed, Mr. Menendez, and Mr. 
Brown) introduced the following bill; which was read twice and referred 
        to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 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; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Section 8 Voucher 
Reform Act of 2008''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Inspection of dwelling units.
Sec. 3. Rent reform and income reviews.
Sec. 4. Eligibility for assistance based on assets and income.
Sec. 5. Targeting assistance to low-income working families.
Sec. 6. Voucher renewal funding.
Sec. 7. Administrative fees.
Sec. 8. Homeownership.
Sec. 9. Performance assessments.
Sec. 10. PHA project-based assistance.
Sec. 11. Rent burdens.
Sec. 12. Establishment of fair market rent.
Sec. 13. Screening of applicants.
Sec. 14. Enhanced vouchers.
Sec. 15. Project-based preservation vouchers.
Sec. 16. Demonstration program waiver authority.
Sec. 17. Study to identify obstacles to using vouchers in federally 
                            subsidized housing projects.
Sec. 18. Collection of data on tenants in projects receiving tax 
                            credits.
Sec. 19. Agency authority for utility payments in certain 
                            circumstances.
Sec. 20. Access to HUD programs for persons with limited English 
                            proficiency.
Sec. 21. Authorization of appropriations.
Sec. 22. Effective date.

SEC. 2. INSPECTION OF DWELLING UNITS.

    (a) Inspection of Units by PHA's.--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) or (iii) 
                        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.
                            ``(iii) Projects receiving certain federal 
                        housing subsidies.--In the case of any property 
                        that within the previous 12 months has been 
                        determined to meet Federal housing quality and 
                        safety standards under any Federal housing 
                        program inspection standard equivalent to the 
                        standards under the program under this 
                        subsection, including the program under section 
                        42 of the Internal Revenue Code of 1986 or 
                        under subtitle A of title II of the Cranston 
                        Gonzalez National Affordable Housing Act, a 
                        public housing agency may--
                                    ``(I) authorize occupancy before 
                                the inspection under clause (i) has 
                                been completed; and
                                    ``(II) make assistance payments 
                                retroactive to the beginning of the 
                                lease term after the unit has been 
                                determined pursuant to an inspection 
                                under clause (i) to meet the housing 
                                quality standards under subparagraph 
                                (B), provided that such inspection is 
                                conducted pursuant to the requirements 
                                of subparagraph (C).'';
            (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 make, for each assisted 
                        dwelling unit, inspections not less than 
                        biennially 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 property 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.) or the low-income 
                                housing tax credit under section 42 of 
                                the Internal Revenue Code of 1986); and
                                    ``(II) pursuant to such inspection, 
                                the property was determined to meet the 
                                standards or requirements regarding 
                                housing quality or safety applicable to 
                                units assisted under such program, and 
                                if a non-Federal standard was used, 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).''; and
            (3) by adding at the end the following new subparagraph:
                    ``(F) Interim inspections.--Upon notification by a 
                family on whose behalf tenant-based assistance is 
                provided under this subsection, that the dwelling unit 
                for which such assistance is provided does not comply 
                with housing quality standards under subparagraph (B), 
                the public housing agency shall inspect the dwelling 
                unit--
                            ``(i) in the case of a life threatening 
                        condition, within 24 hours of such notice; and
                            ``(ii) in the case of any non-life 
                        threatening condition, within 15 days of such 
                        notice.
                    ``(G) Enforcement of housing quality standards.--
                            ``(i) Determination of noncompliance.--A 
                        dwelling unit that is covered by a housing 
                        assistance payments contract under this 
                        subsection shall be considered, for purposes of 
                        this subparagraph, to be in noncompliance with 
                        the housing quality standards under 
                        subparagraph (B) if--
                                    ``(I) the public housing agency or 
                                an inspector authorized by the State or 
                                unit of local government determines 
                                upon inspection of the unit that the 
                                unit fails to comply with such 
                                standards;
                                    ``(II) the agency or inspector 
                                notifies the owner of the unit in 
                                writing of such failure to comply; and
                                    ``(III) the failure to comply is 
                                not corrected--
                                            ``(aa) in the case of any 
                                        such failure that is a result 
                                        of a life threatening 
                                        condition, within 24 hours 
                                        after receipt of such notice; 
                                        and
                                            ``(bb) in the case of any 
                                        failure that is a result of a 
                                        non-life threatening condition, 
                                        within 30 days after provision 
                                        of such notice, or such other 
                                        reasonable period as the public 
                                        housing agency may establish.
                            ``(ii) Abatement of assistance.--
                                    ``(I) In general.--A public housing 
                                agency providing assistance under this 
                                subsection shall abate such assistance 
                                with respect to any assisted dwelling 
                                unit that is determined to be in 
                                noncompliance with the housing quality 
                                standards under subparagraph (B). Upon 
                                a showing by the owner of the unit that 
                                sufficient repairs to the unit have 
                                been completed so that the unit 
                                complies with such housing quality 
                                standards, the public housing agency 
                                may recommence payment of such 
                                assistance.
                                    ``(II) Use of abated assistance to 
                                pay for repairs.--The public housing 
                                agency may use any assistance amounts 
                                abated pursuant to subclause (I) to 
                                make repairs or to contract for such 
                                repairs for life-threatening 
                                conditions, except that a contract to 
                                make repairs may not be entered into 
                                with the inspector for the dwelling 
                                unit.
                            ``(iii) Protection of tenants.--If a public 
                        housing agency providing assistance under this 
                        subsection abates rental assistance payments 
                        under clause (ii), the public housing agency 
                        shall--
                                    ``(I) notify the tenant--
                                            ``(aa) when such abatement 
                                        begins; and
                                            ``(bb) at the start of the 
                                        abatement period that if the 
                                        unit is not brought into 
                                        compliance within 120 days, the 
                                        tenant will have to move; and
                                    ``(II) issue the tenant the 
                                necessary forms to allow the tenant to 
                                move with their voucher to another 
                                housing unit; and
                                    ``(III) use funds that otherwise 
                                would have gone to pay the rental 
                                amount, for the reasonable moving 
                                expenses or security deposit costs of 
                                the tenant.
                            ``(iv) Right of the tenant to terminate 
                        tenancy.--During any period that housing 
                        assistance payments are abated with respect to 
                        any assisted dwelling unit pursuant to this 
                        subparagraph, the tenant of such dwelling may 
                        terminate his or her tenancy without penalty by 
                        notifying the owner of the dwelling unit.
                            ``(v) Limitation on authority of an 
                        owner.--An owner of a dwelling unit that is 
                        considered to be in noncompliance with the 
                        housing quality standards under subparagraph 
                        (B) may not terminate the tenancy of a tenant, 
                        or refuse to renew a lease for such unit, as a 
                        result of an abatement order carried out by a 
                        public housing agency under clause (ii).
                            ``(vi) Termination of lease or assistance 
                        payments contracts.--If a public housing agency 
                        providing assistance under this subsection 
                        abates rental assistance payments under clause 
                        (ii) and the owner of the unit does not correct 
                        the noncompliance within 120 days after the 
                        effective date of the determination of 
                        noncompliance under clause (i), the public 
                        housing agency shall terminate the housing 
                        assistance payment contract subject to clause 
                        (vii). The termination of the housing 
                        assistance payment contract shall terminate the 
                        lease agreement.
                            ``(vii) Relocation of tenants.--
                                    ``(I) 120-day period to relocate.--
                                The public housing agency shall provide 
                                to the individual or family residing in 
                                any unit whose lease is terminated 
                                under clause (vi) at least 120 days 
                                beginning at the start of the abatement 
                                period to lease a new residence with 
                                tenant-based assistance under this 
                                paragraph.
                                    ``(II) Preference in case of 
                                relocation hardship.--If the individual 
                                or family residing in any unit whose 
                                lease is terminated under clause (vi) 
                                is unable to lease a new residence 
                                pursuant to subclause (I), the public 
                                housing agency shall provide, at the 
                                option of the individual or family--
                                            ``(aa) additional search 
                                        time to such individual or 
                                        family; or
                                            ``(bb) preference for 
                                        occupancy in a public housing 
                                        unit owned or operated by the 
                                        public housing agency.
                                    ``(III) Provision of reasonable 
                                relocation assistance.--The public 
                                housing agency shall provide reasonable 
                                assistance to each individual or family 
                                residing in any unit whose lease is 
                                terminated under clause (vi) in finding 
                                a new residence, including the use of 
                                up to 2 months of any assistance abated 
                                pursuant to clause (ii) for relocation 
                                expenses, including moving expenses and 
                                security deposits. The public housing 
                                agency may require that an individual 
                                or family receiving assistance for a 
                                security deposit, remit, to the extent 
                                of such assistance, the amount of any 
                                security deposit refunded by the owner 
                                of the unit for which the lease was 
                                terminated.
                            ``(viii) Tenant caused damages.--If a 
                        public housing agency determines that the 
                        noncompliance of a dwelling unit was caused by 
                        a tenant, member of the tenant's family, or a 
                        guest of the tenant, the public housing agency 
                        may waive the applicability of this 
                        subparagraph.
                            ``(ix) Treatment of certain abatement 
                        assistance.--Assistance amounts abated and used 
                        to make repairs or to contract for such repairs 
                        for life-threatening conditions pursuant to 
                        clause (ii)(II) or used for relocation 
                        assistance pursuant to clause (viii)(iv) shall 
                        be treated as costs which shall be considered 
                        in determining the allocation of renewal 
                        funding under subsection (dd)(2).''.
    (b) Leasing of Units Owned by PHA's.--Section 8(o)(11) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(o)(11)) is amended 
by striking ``the Secretary shall require the unit of general local 
government or another entity approved by the Secretary,'' and inserting 
``the public housing agency shall arrange for a third party''.

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--
                            ``(i) shall be made in the case of all 
                        families, upon the initial provision of housing 
                        assistance for the family;
                            ``(ii) shall be made annually thereafter, 
                        except as provided in subparagraph (B)(i);
                            ``(iii) shall be made 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 $1,000 (or such lower 
                        amount as the public housing agency or owner 
                        may, at the option of the agency or owner, 
                        establish) or more in annual adjusted income;
                            ``(iv) shall be made 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 $1,000 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)), except that a public 
                        housing agency or owner may elect not to 
                        conduct such review in the last 3 months of a 
                        certification period; and
                            ``(v) may be made, in the discretion of the 
                        public housing agency, when the income of a 
                        family, including earned income, changes in an 
                        amount that is less than the amounts specified 
                        in clause (iii) or (iv), if the amount so 
                        specified for increases is not lower than the 
                        amount specified for decreases.
                    ``(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 or anticipated income.--
                In determining the income of a family for purposes of 
                paragraph (6)(A)(ii) or (6)(B)(i), a public housing 
                agency or owner shall use the income of the family as 
                determined by the agency or owner for the preceding 
                year. In determining the income of a family under 
                clauses (i), (iii), (iv), or (v) of paragraph (6)(A) a 
                public housing agency or owner shall use the 
                anticipated income of the family as estimated by the 
                agency or owner for the coming year.
                    ``(B) 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), based on a review of the income 
                of the family conducted during a preceding year, such 
                income shall be adjusted by applying an inflationary 
                factor as the Secretary shall, by regulation, 
                establish.
                    ``(C) 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). The Secretary shall work with other 
                appropriate Federal agencies to develop procedures to 
                enable public housing agencies and owners to have 
                access to such income determinations made by other 
                Federal programs.
                    ``(D) 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 minimis 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 or spouse of the head of the household, plus unearned 
        income by or on behalf of each dependent who is less than 18 
        years of age, 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 
                any--
                            ``(i) imputed return on assets;
                            ``(ii) amounts that would be eligible for 
                        exclusion under section 1613(a)(7) of the 
                        Social Security Act (42 U.S.C. 1382b(a)(7)); 
                        and
                            ``(iii) deferred Veterans Administration 
                        disability benefits that are received in a lump 
                        sum amount or in prospective monthly amounts.
                    ``(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 or any grant-in-aid or 
                scholarship amounts related to such attendance used for 
                the cost of tuition or books.
                    ``(D) Educational savings accounts.--Income shall 
                be determined without regard to any amounts in or from, 
                or any benefits from, any Coverdell Education Savings 
                Account under section 530 of the Internal Revenue Code 
                of 1986 or any qualified tuition program under section 
                529 of such Code.
                    ``(E) 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.--$700 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,
                $480 for each such member.
                    ``(C) Earned income disregard.--An amount equal to 
                10 percent of the lesser of the family's earned income 
                or $9,000.
                    ``(D) Child care.--The amount, if any, exceeding 5 
                percent of annual income used to pay for childcare for 
                preschool age children, for before- or after-care for 
                children in school, or for other childcare necessary to 
                enable a member of the family to be employed or further 
                his or her education.
                    ``(E) 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.
                    ``(F) Permissive deductions.--Such additional 
                deductions as a public housing agency or owner 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 
        deductions 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 deduction 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, except that in no instance shall the dollar amount of 
        any such deduction be less than the initial amount of the 
        deduction established under subparagraphs (A) and (B). The 
        Secretary shall annually adjust the fixed numerical dollar 
        amount under subparagraph (C) ($9,000 as of the date of 
        enactment of the Section 8 Voucher Reform Act of 2008), as such 
        amount may have been previously adjusted, by applying an 
        inflationary factor as the Secretary shall, by regulation, 
        establish. If such dollar amount determined for any year by 
        applying such inflationary factor is not a multiple of $1,000, 
        the Secretary shall round such amount to the next lowest 
        multiple of $1,000.''.
    (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) Project-Based Housing.--Paragraph (3) of section 8(c) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(c)(3)) is amended by 
striking the last sentence.
    (f) Impact on Public Housing Revenues.--
            (1) Interaction with asset management rule.--If a public 
        housing agency determines that the application of the 
        amendments made by this section results in a net reduction in 
        the dwelling rental income of the public housing agency and 
        such reduction in the first quarter of a calendar year is 
        projected to be more than one-half percent of the net dwelling 
        rents received by the public housing agency during the 
        preceding calendar year, the public housing agency may, any 
        time prior to April 15th of each year following the effective 
        date of the amendments made by this section, certify to the 
        Secretary of Housing and Urban Development the anticipated net 
        reduction in annual dwelling rental income and the Secretary, 
        within 45 days of receipt of such statement, shall reimburse 
        the agency from funds appropriated for operating assistance 
        under section 9(e) of the United States Housing Act of 1937 (42 
        U.S.C. 1437g(e)) if such funds are available. Each public 
        housing agency so assisted shall maintain the books, documents, 
        papers, and records supporting the certification submitted to 
        the Secretary and such materials shall be available for review 
        and audit by the Secretary and by the Comptroller General of 
        the United States and their authorized representatives.
            (2) HUD reports on public housing revenue impact.--For each 
        of fiscal years 2009 and 2010, the Secretary of Housing and 
        Urban Development shall submit a report to Congress identifying 
        and calculating the impact of changes made by the amendments 
        made by this section on the revenues and costs of operating 
        public housing units.
            (3) Effective date.--This subsection shall take effect 
        during the first year that the amendments made by this section 
        are effective.
    (g) Access to Information.--Section 904(2)(C) of the Stewart B. 
McKinney Homeless Assistance Amendments Act of 1988 (42 U.S.C. 3544) is 
amended by striking the period and inserting the following: ``, and 
each applicant or participant, or the authorized representative 
thereof, shall have the opportunity to examine all information obtained 
for purposes of verifying the applicant or participant's eligibility 
for or levels of benefits.''.

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 in real 
                property to which the prohibition under paragraph 
                (1)(B) does not apply, savings accounts in 
                homeownership programs of the Department of Housing and 
                Urban Development, or Family Self-Sufficiency program 
                accounts.
                    ``(B) Exclusions.--Such term does not include--
                            ``(i) necessary items of personal property, 
                        such as furniture and automobiles, as the 
                        public housing agency may determine for 
                        purposes of the voucher and public housing 
                        programs, and as the Secretary shall determine 
                        for purposes of other Federal housing programs;
                            ``(ii) the value of any retirement account;
                            ``(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; and
                            ``(iv) the value of any Coverdell Education 
                        Savings Account under section 530 of the 
                        Internal Revenue Code of 1986 or any qualified 
                        tuition program under section 529 of such Code.
                    ``(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--
                    ``(A) delay eviction or termination of the family, 
                based on such noncompliance for a period of not more 
                than 6 months; and
                    ``(B) continue to provide assistance to the family 
                if the family rectifies its noncompliance with such 
                limitation during the period of delay described under 
                subparagraph (A).''.
    (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, except that families residing in dwelling units as 
        of the date of the enactment of the Section 8 Voucher Reform 
        Act of 2008 that, under agreements in effect on such date of 
        enactment, may have incomes up to 95 percent of local area 
        median income shall continue to be eligible for assistance at 
        recertification as long as they continue to comply with such 
        income restrictions. Public housing agencies and owners shall 
        determine whether a family receiving assistance under this Act 
        is a low-income family at the time of recertification based on 
        the highest area median income determined by the Secretary for 
        the area since the family began receiving assistance under this 
        Act. 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 or the 
        prohibition in section 8(o)(4), the public housing agency or 
        project owner may delay eviction or termination of the family, 
        based on such noncompliance for a period of not more than 6 
        months and may continue to provide assistance to the family if 
        the family rectifies its noncompliance with such limitation 
        during this period of delay.'';
            (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--''; and
            (3) in section 8(c)(4) (42 U.S.C. 1437f(c)(4)), by striking 
        ``at the time it initially occupied such dwelling unit'' and 
        insert ``according to the restrictions under section 3(a)(1)''.

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 public housing agencies located 
        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 public housing agencies located 
        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 projects located 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 2009 
        through 2013, 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) relocation and replacement of public 
                        housing units that are demolished or disposed 
                        of in connection with the HOPE VI program under 
                        section 24;
                            ``(vii) relocation and replacement of 
                        vouchers used to preserve public housing 
                        developed from sources other than under section 
                        9 of the United States Housing Act of 1937 (42 
                        U.S.C. 1437g);
                            ``(viii) mandatory conversions of public 
                        housing to vouchers, pursuant to sections 33 of 
                        the United States Housing Act of 1937 (42 
                        U.S.C. 1437z-5);
                            ``(ix) voluntary conversion of public 
                        housing to vouchers pursuant to section 22 of 
                        the United States Housing Act of 1937 (42 
                        U.S.C. 1437t);
                            ``(x) vouchers necessary to comply with a 
                        consent decree or court order;
                            ``(xi) relocation and replacement of public 
                        housing units that are demolished or disposed 
                        of pursuant to eminent domain, homeownership 
                        programs, in connection with a mixed-finance 
                        project under section 35 of the United States 
                        Housing Act of 1937 (42 U.S.C. 1437z-7), or 
                        otherwise;
                            ``(xii) vouchers to replace dwelling units 
                        that cease to receive project-based assistance 
                        under subsection (b), (c), (d), (e), or (v) of 
                        this section;
                            ``(xiii) vouchers used to preserve public 
                        housing developed from sources other than under 
                        section 9 of the United States Housing Act of 
                        1937 (42 U.S.C. 1437g);
                            ``(xiv) tenant protection assistance, 
                        including replacement and relocation 
                        assistance; and
                            ``(xv) 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), (xi), (xii), or (xiii).
            ``(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 cost data from 
                        the preceding calendar year, as adjusted by an 
                        annual adjustment factor to be established by 
                        the Secretary, which shall be established using 
                        the smallest geographical areas for which data 
                        on changes in rental costs are annually 
                        available;
                            ``(ii) by making any adjustments necessary 
                        to provide for--
                                    ``(I) the first-time renewal of 
                                vouchers funded under paragraph (1)(B); 
                                and
                                    ``(II) any incremental vouchers 
                                funded in previous years;
                            ``(iii) by making any adjustments necessary 
                        for full-year funding of vouchers moved into or 
                        out of the jurisdiction of the public housing 
                        agency in the prior calendar year pursuant to 
                        the portability procedures under subsection 
                        (r)(2); and
                            ``(iv) 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 and cost 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). 
                Such leasing and cost data shall not include funds not 
                appropriated for tenant-based assistance under section 
                8(o), unless the agency's funding was prorated in the 
                prior year and the agency used other funds to maintain 
                vouchers in use.
                    ``(C) Overleasing.--For the purpose of determining 
                allocations under subsection (A)(i), the leasing rate 
                calculated for the prior calendar year may exceed an 
                agency's authorized voucher level, except that such 
                calculation shall not include amounts resulting from a 
                leasing rate in excess of 103 percent of an agency's 
                authorized vouchers in the prior year which results 
                from the use of accumulated amounts, as referred to in 
                paragraph (4)(A).
                    ``(D) Moving to work.--Notwithstanding 
                subparagraphs (A) and (B), each public housing agency 
                participating in any year 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--
                            ``(i) funded pursuant to its agreement 
                        under such program, if such agreement includes 
                        an alternate to the provisions of this 
                        subsection; and
                            ``(ii) subject to any pro rata adjustment 
                        made under subparagraph (E)(i).
                    ``(E) 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 (D), 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 
                        (D), such excess amounts shall be used for the 
                        purposes specified in subparagraphs (B) and (C) 
                        of paragraph (4).
                    ``(F) Prompt funding allocation.--The Secretary 
                shall allocate all funds under this subsection for each 
                year before the latter of (i) February 15, or (ii) the 
                expiration of the 45-day period beginning upon the 
                enactment of the appropriations Act funding such 
                renewals.
            ``(3) Advances.--
                    ``(A) Authority.--During the last 3 months of each 
                calendar year, the Secretary shall provide funds out of 
                any appropriations made under paragraph (1) for the 
                fiscal year beginning on October 1 of that calendar 
                year, to any public housing agency, at the request of 
                the agency, in an amount up to 2 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) Offset.--
                    ``(A) In general.--The Secretary shall offset, 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 offset under this 
                        subparagraph at the end of 2008, an amount 
                        equal to 12.5 percent of the amount allocated 
                        to the public housing agency for such year 
                        pursuant to paragraph (2)(A);
                            ``(ii) with respect to the offset under 
                        this subparagraph at the end of 2009, an amount 
                        equal to 7.5 percent of the amount allocated to 
                        the public housing agency for such year 
                        pursuant to paragraph (2)(A); and
                            ``(iii) with respect to the offset under 
                        this subparagraph at the end of each of 2010, 
                        2011, and 2012, an amount equal to 5 percent of 
                        such amount allocated to the agency for such 
                        year. Notwithstanding any other provision of 
                        law, each public housing agency may retain all 
                        amounts not authorized to be offset under this 
                        subparagraph, and may use such amounts for all 
                        authorized purposes. Funds initially allocated 
                        prior to the effective date of the Section 8 
                        Voucher Reform Act of 2008 for the purposes 
                        specified in paragraph (1)(B) shall not be 
                        included in the calculation of accumulated 
                        amounts subject to offset under this paragraph.
                    ``(B) Reallocation.--Not later than May 1 of each 
                calendar year, the Secretary shall--
                            ``(i) calculate the aggregate savings due 
                        to the offset of unused amounts for the 
                        preceding year recaptured pursuant to 
                        subparagraph (A);
                            ``(ii) set aside such amounts as the 
                        Secretary considers likely to be needed to 
                        reimburse public housing agencies for increased 
                        costs related to portability and family self-
                        sufficiency activities during such year, which 
                        amounts shall be made available for allocation 
                        upon submission of a request that meets 
                        criteria prescribed by the Secretary; 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, as well as the relative need of 
                        communities for additional assistance under 
                        this subsection.
                    ``(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 
                eligible for renewal funding under paragraph (2)(C).''.
    (b) Absorption of Vouchers From Other Agencies.--
            (1) In general.--Section 8(r)(2) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f(r)(2)) is amended--
                    (A) by striking ``The public housing agency'' and 
                inserting ``(A) In general.--The public housing 
                agency''; and
                    (B) by adding the end the following:
                    ``(B) Absorption and priority.--
                            ``(i) In general.--The public housing 
                        agency shall--
                                    ``(I) absorb any family that moves 
                                under this subsection into its program 
                                for voucher assistance under this 
                                section after the initial month, except 
                                that the Secretary may limit the 
                                absorption of vouchers in excess of a 
                                public housing agency's authorized 
                                level if the Secretary makes the 
                                determination under subparagraph (C) 
                                that there is insufficient funding for 
                                such vouchers in the current year; and
                                    ``(II) have priority to receive 
                                additional funding from the Secretary 
                                for the net additional cost of housing 
                                assistance provided pursuant to this 
                                requirement from amounts made available 
                                pursuant to subsection (dd)(4)(B) or 
                                otherwise, except that the obligation 
                                to absorb vouchers under subclause (I) 
                                does not override any provision of a 
                                judgement, consent decree, contract 
                                with the Secretary pursuant to section 
                                3(b)(6), or any other similar 
                                arrangement under which the public 
                                housing agency administers voucher 
                                assistance under this section without 
                                regard to any other applicable 
                                limitation on the public housing 
                                agency's area of operation.
                            ``(ii) No delay of vouchers for families on 
                        waiting list.--The Secretary shall provide the 
                        funding required to carry out the activities 
                        under clause (i) as needed for a public housing 
                        agency to meet its obligation under this 
                        subparagraph without delaying issuance of 
                        vouchers to families on its waiting list.
                    ``(C) Exception.--If in any fiscal year, the 
                Secretary does not have sufficient funds available 
                under subsection (dd)(4)(B) or that otherwise may be 
                used for the purposes of this subsection, the Secretary 
                shall suspend the requirement described in subparagraph 
                (B). Such suspension shall take effect no earlier than 
                60 days after the Secretary provides notice of the 
                suspension by electronic mail to all public housing 
                agencies and to the public by posting of the notice on 
                the website of the Department. The obligation of the 
                Secretary to fund vouchers absorbed under subparagraph 
                (B) shall continue for all vouchers that are leased 
                prior to the effective date of such suspension.''.
            (2) Transition.--The amendments made by paragraph (1) shall 
        take effect January 1, 2010, provided that in each calendar 
        quarter of 2010 and 2011, a public housing agency shall absorb 
        no more than one-eighth of the vouchers subject to absorption 
        on such effective date of each public housing agency that is 
        providing assistance for the vouchers on such effective date. 
        Public housing agencies may by mutual agreement alter the 
        absorption rate established in the previous sentence.
            (3) Report to congress.--Not later than May 1, 2009, the 
        Secretary of Housing and Urban Development shall provide to 
        Congress an estimate of the net additional cost to the 
        Department of Housing and Urban Development in the first year 
        of implementation of the new requirements added by the 
        amendments made in paragraph (1), and of the savings likely to 
        be available in 2010 and 2011 as a result of the reduction in 
        the permitted level of retained funds under subsection 
        (dd)(4)(A) of section 8 of the United States Housing Act of 
        1937 (42 U.S.C. 1437f(dd)(4)(A)).
    (c) Vouchers for Persons With Disabilities.--The Secretary of 
Housing and Urban Development shall develop and issue, to public 
housing agencies that received voucher assistance under section 8(o) 
for non-elderly disabled families pursuant to appropriations Acts, 
guidance to ensure that, to the maximum extent practicable, such 
vouchers continue to be provided upon turnover to qualified non-elderly 
disabled families.

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)--
                    (A) by amending subparagraphs (B) and (C) to read 
                as follows:
                    ``(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) be based on the per unit fee payable 
                        to the agency in fiscal year 2003, updated for 
                        each subsequent year as specified in subsection 
                        (iv), unless the Secretary establishes by 
                        rulemaking a revised method of calculating the 
                        per unit fee for each agency, which method--
                                    ``(I) shall otherwise comply with 
                                this subparagraph; and
                                    ``(II) may include performance 
                                incentives, consistent with subsection 
                                (o)(21);
                            ``(iii) include an amount for the cost of 
                        issuing vouchers to new participants who lease 
                        units in the jurisdiction of the agency or in 
                        another jurisdiction under the procedures 
                        established in subsection (r);
                            ``(iv) 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; and
                            ``(v) include an amount for the cost of 
                        family self-sufficiency coordinators, as 
                        provided in section 23(h)(1).
                    ``(C) Publication.--The Secretary shall cause to be 
                published in the Federal Register the fee rate for each 
                geographic area.''; and
                    (B) by striking subparagraph (E); and
            (2) in paragraph (4), by striking ``1999'' and inserting 
        ``2008''.
    (b) Administrative Fees for Family Self-Sufficiency Program 
Costs.--Subsection (h) of section 23 of the United States Housing Act 
of 1937 (42 U.S.C. 1437u(h)) is amended by striking paragraph (1) and 
inserting the following new paragraph:
            ``(1) Section 8 fees.--
                    ``(A) In general.--The Secretary shall establish a 
                fee under section 8(q) for the costs incurred in 
                administering the self-sufficiency program under this 
                section to assist families receiving voucher assistance 
                through section 8(o).
                    ``(B) Eligibility for fee.--The fee shall provide 
                funding for family self-sufficiency coordinators as 
                follows:
                            ``(i) Base fee.--A public housing agency 
                        serving 25 or more participants in the Family 
                        Self-Sufficiency program under this section 
                        shall receive a fee equal to the costs of 
                        employing 1 full-time family self-sufficiency 
                        coordinator. An agency serving fewer than 25 
                        such participants shall receive a prorated fee.
                            ``(ii) Additional fee.--An agency that 
                        meets minimum performance standards shall 
                        receive an additional fee sufficient to cover 
                        the costs of employing a second family self-
                        sufficiency coordinator if the agency has 75 or 
                        more participating families, and a third such 
                        coordinator if it has 125 or more participating 
                        families.
                            ``(iii) Previously funded agencies.--An 
                        agency that received funding from the 
                        Department of Housing and Urban Development for 
                        more than 3 such coordinators in any of fiscal 
                        years 1998 through 2008 shall receive funding 
                        for the highest number of coordinators funded 
                        in a single fiscal year during that period, 
                        provided they meet applicable size and 
                        performance standards.
                            ``(iv) Initial year.--For the first year in 
                        which a public housing agency exercises its 
                        right to develop a family self-sufficiency 
                        program for its residents, it shall be entitled 
                        to funding to cover the costs of up to 1 family 
                        self-sufficiency coordinator, based on the size 
                        specified in its action plan for such program.
                            ``(v) State and regional agencies.--For 
                        purposes of calculating the family self-
                        sufficiency portion of the administrative fee 
                        under this subparagraph, each administratively 
                        distinct part of a State or regional public 
                        housing agency shall be treated as a separate 
                        agency.
                            ``(vi) Determination of number of 
                        coordinators.--In determining whether a public 
                        housing agency meets a specific threshold for 
                        funding pursuant to this paragraph, the number 
                        of participants being served by the agency in 
                        its family self-sufficiency program shall be 
                        considered to be the average number of families 
                        enrolled in such agency's program during the 
                        course of the most recent fiscal year for which 
                        the Department of Housing and Urban Development 
                        has data.
                    ``(C) Proration.--If insufficient funds are 
                available in any fiscal year to fund all of the 
                coordinators authorized under this section, the first 
                priority shall be given to funding 1 coordinator at 
                each agency with an existing family self-sufficiency 
                program. The remaining funds shall be prorated based on 
                the number of remaining coordinators to which each 
                agency is entitled under this subparagraph.
                    ``(D) Recapture.--Any fees allocated under this 
                subparagraph by the Secretary in a fiscal year that 
                have not been spent by the end of the subsequent fiscal 
                year shall be recaptured by the Secretary and shall be 
                available for providing additional fees pursuant to 
                subparagraph (B)(ii).
                    ``(E) Performance standards.--Within 6 months after 
                the date of the enactment of this paragraph, the 
                Secretary shall publish a proposed rule specifying the 
                performance standards applicable to funding under 
                clauses (ii) and (iii) of subparagraph (B). Such 
                standards shall include requirements applicable to the 
                leveraging of in-kind services and other resources to 
                support the goals of the family self-sufficiency 
                program.
                    ``(F) Data collection.--Public housing agencies 
                receiving funding under this paragraph shall collect 
                and report to the Secretary, in such manner as the 
                Secretary shall require, information on the performance 
                of their family self-sufficiency programs.
                    ``(G) Evaluation.--The Secretary shall conduct a 
                formal and scientific evaluation of the effectiveness 
                of well-run family self-sufficiency programs, using 
                random assignment of participants to the extent 
                practicable. Not later than the expiration of the 4-
                year period beginning upon the enactment of this 
                paragraph, the Secretary shall submit an interim 
                evaluation report to Congress. Not later than the 
                expiration of the 8-year period beginning upon such 
                enactment, the Secretary shall submit a final 
                evaluation report to Congress. There is authorized to 
                be appropriated $10,000,000 to carry out the evaluation 
                under this subparagraph.
                    ``(H) Incentives for innovation and high 
                performance.--The Secretary may reserve up to 10 
                percent of the amounts made available for 
                administrative fees under this paragraph to provide 
                support to or reward family self-sufficiency programs 
                that are particularly innovative or highly successful 
                in achieving the goals of the program.''.
    (c) 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.

SEC. 8. HOMEOWNERSHIP.

    (a) 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 1-
                        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.''.
    (b) Use of Vouchers for Manufactured Housing.--Section 8(o)(12) of 
the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(12)) is 
amended--
            (1) in subparagraph (A), by striking the period at the end 
        of the first sentence and all that follows through ``of'' in 
        the second sentence and inserting ``and rents''; and
            (2) in subparagraph (B)--
                    (A) in clause (i), by striking ``the rent'' and all 
                that follows and inserting the following: ``rent shall 
                mean the sum of the monthly payments made by a family 
                assisted under this paragraph to amortize the cost of 
                purchasing the manufactured home, including any 
                required insurance and property taxes, the monthly 
                amount allowed for tenant-paid utilities, and the 
                monthly rent charged for the real property on which the 
                manufactured home is located, including monthly 
                management and maintenance charges.'';
                    (B) by striking clause (ii); and
                    (C) in clause (iii)--
                            (i) by inserting after the period at the 
                        end the following: ``If the amount of the 
                        monthly assistance payment for a family exceeds 
                        the monthly rent charged for the real property 
                        on which the manufactured home is located, 
                        including monthly management and maintenance 
                        charges, a public housing agency may pay the 
                        remainder to the family, lender, or utility 
                        company, or may choose to make a single payment 
                        to the family for the entire monthly assistance 
                        amount.''; and
                            (ii) by redesignating such clause as clause 
                        (ii).

SEC. 9. 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 and of 
                        authorized vouchers, adjusted for vouchers set 
                        aside to meet commitments under paragraph (13) 
                        and to take into account the time required for 
                        additional lease-up efforts resulting from 
                        absorption of a significant number or share of 
                        an agency's vouchers under subsection (r).
                            ``(iii) Timeliness and accuracy of 
                        reporting by the agency to the Secretary.
                            ``(iv) Effectiveness in carrying out 
                        policies to achieve deconcentration of poverty.
                            ``(v) Reasonableness of rent burdens, 
                        consistent with public housing agency 
                        responsibilities under section 8(o)(1)(E)(iii).
                            ``(vi) Accurate calculations of rent, 
                        utility allowances, and subsidy payments.
                            ``(vii) Effectiveness in carrying out 
                        family self-sufficiency activities.
                            ``(viii) Timeliness of actions related to 
                        landlord participation.
                            ``(ix) Compliance with targeting 
                        requirements under section 16(b).
                            ``(x) Such other areas as the Secretary 
                        considers appropriate.
                    ``(C) Biennial assessment.--Not later than 2 years 
                after the date of enactment of this paragraph, and at 
                least every 2 years thereafter, the Secretary, using 
                the standards and procedures established under this 
                paragraph, shall--
                            ``(i) conduct an assessment of the 
                        performance of each public housing agency 
                        carrying out a program referred to in 
                        subparagraph (A);
                            ``(ii) make such assessment available to 
                        the public housing agency and to the public via 
                        the website of the Department of Housing and 
                        Urban Development; and
                            ``(iii) submit a report to Congress 
                        regarding the results of each such assessment.
                    ``(D) Use of assessments to assist performance.--
                The Secretary shall, by regulation and based upon the 
                results of the assessments of public housing agencies 
                conducted under this paragraph, establish procedures 
                and mechanisms to assist poorly performing public 
                housing agencies in becoming ably performing public 
                housing agencies.''.

SEC. 10. 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) by striking subparagraph (B) and inserting the 
        following new subparagraph:
                    ``(B) Percentage limitation.--
                            ``(i) In general.--Subject to clause (ii), 
                        not more than 25 percent of the funding 
                        available for tenant-based assistance under 
                        this section that is administered by the agency 
                        may be attached to structures pursuant to this 
                        paragraph.
                            ``(ii) Exception.--An agency may attach up 
                        to an additional 5 percent of the funding 
                        available for tenant-based assistance under 
                        this section to structures pursuant to this 
                        paragraph for dwelling units that house 
                        individuals and families that meet the 
                        definition of homeless under section 103 of the 
                        McKinney-Vento Homeless Assistance Act (42 
                        U.S.C. 11302).'';
            (2) by striking subparagraph (D) and inserting the 
        following new subparagraph:
                    ``(D) Income mixing requirement.--
                            ``(i) In general.--Except as provided in 
                        clause (ii), not more than the greater of 25 
                        dwelling units or 25 percent of the dwelling 
                        units in any project may be assisted under a 
                        housing assistance payment contract for 
                        project-based assistance pursuant to this 
                        paragraph. For purposes of this subparagraph, 
                        the term `project' means a single building, 
                        multiple contiguous buildings, or multiple 
                        buildings on contiguous parcels of land.
                            ``(ii) Exceptions.--
                                    ``(I) Certain housing.--The 
                                limitation under clause (i) shall not 
                                apply in the case of assistance under a 
                                contract for housing consisting of 
                                single family properties, or for 
                                dwelling units that are specifically 
                                made available for households comprised 
                                of elderly families, disabled families, 
                                and families receiving supportive 
                                services only where comprehensive 
                                services are provided to special 
                                populations such as to individuals who 
                                were formerly homeless and other 
                                populations with special needs. For 
                                purposes of the preceding sentence, the 
                                term `single family properties' means 
                                buildings with no more than 4 dwelling 
                                units.
                                    ``(II) Certain areas.--With respect 
                                to areas in which fewer than 75 percent 
                                of families issued vouchers become 
                                participants in the program, the public 
                                housing agency has established the 
                                payment standard at 110 percent of the 
                                fair market rent for all census tracts 
                                in the area for the previous 6 months, 
                                the public housing agency has requested 
                                a higher payment standard, and the 
                                public housing agency grants an 
                                automatic extension of 90 days (or 
                                longer) to families with vouchers who 
                                are attempting to find housing, clause 
                                (i) shall be applied by substituting 
                                `40 percent' for `25 percent'.'';
            (3) in the first sentence of subparagraph (F), by striking 
        ``10 years'' and inserting ``15 years'';
            (4) in subparagraph (G)--
                    (A) by inserting after the period at the end of the 
                first sentence the following: ``Such contract may, at 
                the election of the public housing agency and the owner 
                of the structure, specify that such contract shall be 
                extended for renewal terms of up to 15 years each, if 
                the agency makes the determination required by this 
                subparagraph and the owner is in compliance with the 
                terms of the contract.''; and
                    (B) by adding at the end the following: ``A public 
                housing agency may agree to enter into such a contract 
                at the time it enters into the initial agreement for a 
                housing assistance payment contract or at any time 
                thereafter that is before the expiration of the housing 
                assistance payment contract.'';
            (5) 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)'';
            (6) 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'';
            (7) in subparagraph (J)--
                    (A) by striking the fifth and sixth sentences and 
                inserting the following: ``A public housing agency may 
                establish and utilize procedures for maintaining site-
                based waiting lists under which applicants may apply 
                directly at, or otherwise designate to the public 
                housing agency, the project or projects in which they 
                seek to reside, except that all applicants on the 
                waiting list of an agency for assistance under this 
                subsection shall be permitted to place their names on 
                such separate list. All such procedures shall comply 
                with title VI of the Civil Rights Act of 1964, the Fair 
                Housing Act, and other applicable civil rights laws. 
                The owner or manager of a structure assisted under this 
                paragraph shall not admit any family to a dwelling unit 
                assisted under a contract pursuant to this paragraph 
                other than a family referred by the public housing 
                agency from its waiting list, or a family on a site-
                based waiting list that complies with the requirements 
                of this subparagraph. A public housing agency shall 
                fully disclose to each applicant each option in the 
                selection of a project in which to reside that is 
                available to the applicant.''; and
                    (B) by inserting after the third sentence the 
                following new sentence: ``Any family who resides in a 
                dwelling unit proposed to be assisted under this 
                paragraph, or in a unit to be replaced by a proposed 
                unit to be assisted under this paragraph shall be given 
                an absolute preference for selection for placement in 
                the proposed unit, if the family is otherwise eligible 
                for assistance under this subsection.''; and
            (8) by adding at the end the following new subparagraphs:
                    ``(L) Structure owned by agency.--Notwithstanding 
                any other provision of law, as part of an initiative to 
                improve, redevelop, or replace a public housing site, a 
                public housing agency may attach assistance to an 
                existing, newly constructed, or rehabilitated structure 
                in which the public housing agency has an ownership 
                interest, without following a competitive process, 
                provided that the agency includes such action in its 
                public housing agency plan approved under section 5A 
                and the units that will receive such assistance will 
                not receive assistance under section 9. The preceding 
                sentence shall not be construed to limit a public 
                housing agency's ability to attach assistance to 
                structures under applicable law.
                    ``(M) Use in cooperative housing and elevator 
                buildings.--A public housing agency may enter into a 
                housing assistance payments contract under this 
                paragraph with respect to--
                            ``(i) dwelling units in cooperative 
                        housing; and
                            ``(ii) notwithstanding subsection (c), 
                        dwelling units in a high-rise elevator project, 
                        including such a project that is occupied by 
                        families with children, without review and 
                        approval of the contract by the Secretary.
                    ``(N) Reviews.--
                            ``(i) Subsidy layering.--A subsidy layering 
                        review in accordance with section 102(d) of the 
                        Department of Housing and Urban Development 
                        Reform Act of 1989 (42 U.S.C. 3545(d)) shall 
                        not be required for assistance under this 
                        subparagraph in the case of a housing 
                        assistance payments contract for an existing 
                        structure, or if a subsidy layering review has 
                        been conducted by the applicable State or local 
                        agency.
                            ``(ii) Environmental review.--A public 
                        housing agency shall not be required to 
                        undertake any environmental review before 
                        entering into a housing assistance payments 
                        contract under this paragraph for an existing 
                        structure, except to the extent such a review 
                        is otherwise required by law or regulation.
                    ``(O) Leases and tenancy.--Assistance provided 
                under this paragraph shall be subject to the provisions 
                of paragraph (7), except that subparagraph (A) of such 
                paragraph shall not apply.
                    ``(P) Allowable transfers.--To promote regional 
                mobility and increase housing and economic 
                opportunities through expanded use of project-based 
                voucher assistance, a public housing agency may 
                transfer a portion of its vouchers and related budget 
                authority to a public housing agency that administers a 
                program under this subsection in another jurisdiction 
                in the same or contiguous metropolitan area or county. 
                The Secretary shall encourage such voluntary agreements 
                and promptly execute the necessary funding and contract 
                modifications.''.

SEC. 11. RENT BURDENS.

    (a) Reviews.--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.--
                                    ``(I) Monitor and report.--The 
                                Secretary shall monitor rent burdens 
                                and submit a report to Congress 
                                annually on the percentage of families 
                                assisted under this subsection, 
                                occupying dwelling units of each size, 
                                that pay more than 30 percent of their 
                                adjusted incomes for rent and such 
                                percentage that pay more than 40 
                                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. In 
                                implementing the requirements of this 
                                clause, the Secretary shall distinguish 
                                excessive rent burdens that result 
                                solely from the methods of determining 
                                a family's rent contribution under 
                                section (3)(A)(3) or clauses (ii) or 
                                (iii) of paragraph (2)(A) of this 
                                subsection.
                                    ``(II) Public availability.--Each 
                                public housing agency shall make 
                                publicly available the information on 
                                rent burdens provided by the Secretary 
                                pursuant to subclause (I), and, for 
                                agencies located in metropolitan areas, 
                                the information on concentration 
                                provided by the Secretary pursuant to 
                                clause (ii).
                            ``(ii) Concentration of poverty.--The 
                        Secretary shall submit a report to Congress 
                        annually on the degree to which families of 
                        particular racial and ethnic groups assisted 
                        under this subsection in each metropolitan area 
                        are clustered in higher poverty areas, 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.
                            ``(iii) Public housing agency 
                        responsibilities.--If a public housing agency 
                        has a high degree of concentration of families 
                        of particular racial and ethnic groups 
                        clustered in a higher poverty area or if such 
                        agency has more than 5 percent of families 
                        residing in units assisted under this 
                        subsection who pay more than 40 percent of 
                        their adjusted incomes for rent--
                                    ``(I) the public housing agency 
                                shall adjust its payment standard or 
                                explain its reasons for not making such 
                                adjustment; and
                                    ``(II) the Secretary may not deny 
                                the request of the public housing 
                                agency to set a payment standard up to 
                                120 percent of the fair market rent to 
                                remedy excessive rent burdens or undue 
                                concentration of families assisted 
                                under this subsection in lower rent, 
                                higher poverty sections of a 
                                metropolitan area, if the public 
                                housing agency--
                                            ``(aa) has conducted a 
                                        thorough review of its payment 
                                        standards;
                                            ``(bb) conducts a thorough 
                                        review of its rent 
                                        reasonableness policies and 
                                        procedures, and properly 
                                        conducts a review of its rent 
                                        reasonableness on an ongoing 
                                        basis;
                                            ``(cc) has conducted 
                                        outreach to landlords in all 
                                        areas within the service area 
                                        of the public housing agency;
                                            ``(dd) provides search 
                                        assistance to such families, if 
                                        undue concentration is the 
                                        reason for the adjustment of 
                                        the payment standard;
                                            ``(ee) has completed a 
                                        review of utility allowances 
                                        and burdens on such families; 
                                        and
                                            ``(ff) the public housing 
                                        agency has, for the previous 6-
                                        month period, had its payment 
                                        standards set at 110 percent of 
                                        the fair market rent.''.
    (b) Public Housing Agency Plan.--Section 5A(d)(4) of the United 
States Housing Act of 1937 (42 U.S.C. 1437c-1(d)(4)) is amended by 
inserting before the period at the end the following: ``, including the 
report with respect to the agency furnished by the Secretary pursuant 
to section 8(o)(1)(E) concerning rent burdens and, if applicable, 
geographic concentration of voucher holders, any changes in rent or 
other policies the public housing agency is making to address excessive 
rent burdens or concentration, and if the public housing agency is not 
adjusting its payment standard, its reasons for not doing so.''.
    (c) Rent Burdens for Persons With Disabilities.--Subparagraph (D) 
of section 8(o)(1) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(1)) is amended by inserting before the period at the end the 
following: ``, except that 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''.
    (d) Rent Burdens for Voucher Holders in Low-Income Housing Tax 
Credit Units.--Section 8(o)(10)(A) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(o)(10)(A)) is amended by inserting before the 
period the following: ``, except that in a unit receiving tax credits 
under section 42 of the Internal Revenue Code or assistance under 
subtitle A of title II of the Cranston-Gonzalez National Affordable 
Housing Act for which a housing assistance contract not subject to 
paragraph (13) is established--
                            ``(i) no comparison with rent for units in 
                        the private, unassisted local market shall be 
                        required if the rent is at or below the rent 
                        for other comparable units receiving such tax 
                        credits or assistance in the project that are 
                        not occupied by tenant-based voucher holders; 
                        and
                            ``(ii) the rent shall not be considered 
                        reasonable if it exceeds the higher of (I) the 
                        rents charged for other comparable units 
                        receiving such tax credits or assistance in the 
                        project that are not occupied by tenant-based 
                        voucher holders and (II) the payment standard 
                        established by the public housing agency for a 
                        unit of the particular size.''.

SEC. 12. ESTABLISHMENT OF FAIR MARKET RENT.

    (a) In General.--Paragraph (1) of section 8(c) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(c)(1)) is amended--
            (1) by inserting ``(A)'' after the paragraph designation;
            (2) by striking the seventh, eighth, and ninth sentences; 
        and
            (3) by adding at the end the following:
    ``(B)(i) The Secretary shall endeavor to define market areas for 
purposes of this paragraph in a manner that results in fair market 
rentals that are adequate to cover typical rental costs of units 
suitable for occupancy by persons assisted under this section in as 
wide a range of communities as is feasible, including communities with 
low poverty rates.
    ``(ii) The Secretary at a minimum shall define a separate market 
area for each--
            ``(I) metropolitan city, as such term is defined in section 
        102(a) of the Housing and Community Development Act of 1974 (42 
        U.S.C. 5302(a)), with more than 40,000 rental dwelling units; 
        and
            ``(II) county or in the case of a county that includes a 
        metropolitan city specified in subclause (I), for the remainder 
        of that county located outside the boundaries of such 
        metropolitan city.
The requirement under subclause (II) shall not apply to any counties 
wholly within a metropolitan city specified in subclause (I) or any 
counties in the following States: Connecticut, Maine, Massachusetts, 
New Hampshire, Rhode Island, or Vermont.
    ``(iii) Notwithstanding clause (ii), the Secretary may establish 
minimum fair market rents within each State to ensure that fair market 
rents in a State are adequate to cover the cost of standard quality 
housing in that State.
    ``(iv) The Secretary shall, at the request of 1 or more public 
housing agency, establish a separate market area for part or all of the 
area under the jurisdiction of such agency, if--
            ``(I) the requested market area contains at least 20,000 
        rental dwelling units;
            ``(II) the areas contained in the requested market area are 
        geographically contiguous and share similar housing market 
        characteristics;
            ``(III) adequate data are available to establish a reliable 
        fair market rental for the requested market area, and for the 
        remainder of the market area in which it is currently located; 
        and
            ``(IV) establishing the requested market area would raise 
        or lower the fair market rental by 10 percent or more at the 
        time the requested market area is established.
For purposes of subclause (III), data for an area shall be considered 
adequate if they are sufficient to establish from time to time a 
reliable benchmark fair market rental based primarily on data from that 
area, whether or not those data need to be supplemented with data from 
a larger area for purposes of annual updates.
    ``(v) The Secretary shall not reduce the fair market rental in a 
market area as a result of a change in the percentile of the 
distribution of market rents used to establish the fair market 
rental.''.
    (b) Payment Standard.--Subparagraph (B) of section 8(o)(1) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(o)(1)(B)) is amended 
by inserting before the period at the end the following: ``, except 
that no public housing agency shall be required as a result of a 
reduction in the fair market rental to reduce the payment standard 
applied to a family continuing to reside in a unit for which the family 
was receiving assistance under this section at the time the fair market 
rental was reduced''.

SEC. 13. SCREENING OF APPLICANTS.

    Subparagraph (B) of section 8(o)(6) of the United States Housing 
Act of 1937 (1437f(o)(6)(B)) is amended--
            (1) by inserting after the period at the end of the second 
        sentence the following: ``A public housing agency's elective 
        screening shall be limited to criteria that are directly 
        related to an applicant's ability to fulfill the obligations of 
        an assisted lease and shall consider mitigating circumstances 
        related to such applicant. The requirements of the prior 
        sentence shall not limit the ability of a public housing agency 
        to deny assistance based on the applicant's criminal background 
        or any other permissible grounds for denial under subtitle F of 
        title V of the Quality Housing and Work Responsibility Act of 
        1998 (42 U.S.C. 13661 et seq., relating to safety and security 
        in public and assisted housing), subject to the procedural 
        requirements of this section. Any applicant or participant 
        determined to be ineligible for admission or continued 
        participation to the program shall be notified of the basis for 
        such determination and provided, within a reasonable time after 
        the determination, an opportunity for an informal hearing on 
        such determination at which mitigating circumstances, including 
        remedial conduct subsequent to the conduct that is the basis of 
        such consideration.''; and
            (2) by adding at the end the following: ``Public housing 
        tenants requesting tenant-based voucher assistance under this 
        subsection to relocate from public housing as a result of the 
        demolition or disposition of public housing shall not be 
        considered new applicants under this paragraph and shall not be 
        subject to elective screening by the public housing agency.''.

SEC. 14. ENHANCED VOUCHERS.

    (a) In General.--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 
        ``and shall not require that the family requalify under the 
        selection standards for a public housing agency in order to be 
        eligible for such assistance'' after ``subsection (o)''; and
            (2) by amending subparagraph (B) to read as follows:
                    ``(B)(i) the assisted family may elect to remain in 
                the same project in which the family was residing on 
                the date of the eligibility event for the project 
                regardless of unit and family size standards normally 
                used by the administering public housing agency (except 
                that tenants may be required to move to units of 
                appropriate size if available on the premises), and the 
                owner of the unit shall accept the enhanced voucher and 
                terminate the tenancy only for serious or repeated 
                violation of the terms and conditions of the lease or 
                for violation of applicable law; and
                    ``(ii) if, during any period the family makes such 
                an election and continues to so reside, the rent for 
                the dwelling unit of the family in such project exceeds 
                the applicable payment standard established pursuant to 
                subsection (o) for the unit, the amount of rental 
                assistance provided on behalf of the family shall be 
                determined using a payment standard that is equal to 
                the rent for the dwelling unit (as such rent may be 
                increased from time-to-time), subject to paragraph 
                (10)(A) of subsection (o) and any other reasonable 
                limit prescribed by the Secretary, except that a limit 
                shall not be considered reasonable for purposes of this 
                subparagraph if it adversely affects such assisted 
                families;''.
    (b) Rulemaking.--Not later than 6 months after the date of 
enactment of this Act, the Secretary of Housing and Urban Development 
shall promulgate regulations implementing the amendments made by 
subsection (a).

SEC. 15. PROJECT-BASED PRESERVATION VOUCHERS.

    (a) Enhanced Vouchers.--Section 8(t) of the United States Housing 
Act of 1937 (42 U.S.C. 1437(t)(1)) is amended by adding at the end the 
following new paragraph:
            ``(5) Authorization of preservation project-based voucher 
        assistance in lieu of enhanced voucher assistance.--
        Notwithstanding any other provision of law, preservation 
        project-based voucher assistance may be provided pursuant to 
        subsection (o)(13)(Q) in lieu of enhanced voucher assistance at 
        the request of the owner of the multifamily housing project, 
        subject to the determinations of the public housing agency 
        pursuant to clause (ii) of subsection (o)(13)(Q). Preservation 
        project-based voucher assistance provided pursuant to 
        subsection (o)(13)(Q) in lieu of enhanced voucher assistance 
        shall be subject to the provisions of subsection (o)(13)(Q) and 
        shall not be subject to the provisions of this subsection.''.
    (b) 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 by 
adding at the end the following new subparagraph:
                    ``(Q) Preservation project-based voucher 
                assistance.--
                            ``(i) In general.--The Secretary is 
                        authorized to provide assistance under this 
                        paragraph in lieu of enhanced voucher 
                        assistance under subsection (t) to a public 
                        housing agency that enters into a contract with 
                        an owner of a multifamily housing project upon 
                        the occurrence of an eligibility event with 
                        respect to the project as defined in subsection 
                        (t)(2). All owners of projects for which 
                        enhanced voucher assistance would otherwise be 
                        provided may request and receive a contract for 
                        preservation project-based voucher assistance 
                        at the project in lieu of enhanced voucher 
                        assistance upon the occurrence of an 
                        eligibility event with respect to the project, 
                        subject to the determinations of the public 
                        housing agency in clause (ii). The contract 
                        shall cover all of the units in the project for 
                        which enhanced voucher assistance would 
                        otherwise be provided under subsection (t).
                            ``(ii) Public housing agency 
                        determinations.--Prior to entering into a 
                        contract pursuant to this subparagraph, the 
                        public housing agency shall have determined 
                        that (I) the housing to be assisted hereunder 
                        is economically viable, and that (II) there is 
                        significant demand for the housing, or the 
                        housing will contribute to a concerted 
                        community revitalization plan or to the goal of 
                        deconcentrating poverty and expanding housing 
                        and economic opportunities, or the continued 
                        affordability of the housing otherwise is an 
                        important asset to the community. The 
                        determinations of the public housing agency 
                        required in the previous sentence shall be in 
                        lieu of meeting the requirements of 
                        subparagraph (C).
                            ``(iii) Special rules.--Funding provided 
                        for preservation project-based voucher 
                        assistance pursuant to this subparagraph shall 
                        be disregarded for the purpose of calculating 
                        the limitation on attaching funding to 
                        structures otherwise applicable to public 
                        housing agency project-based assistance 
                        pursuant to subparagraph (B). Assistance under 
                        this subparagraph shall not be subject to the 
                        requirements of subparagraph (D).
                            ``(iv) Eligibility.--Notwithstanding any 
                        other provision of law, each family residing in 
                        a project on the date of the eligibility event 
                        that would otherwise be eligible for enhanced 
                        voucher assistance under subsection (t) shall 
                        be eligible for preservation project-based 
                        voucher assistance under this subparagraph.''.

SEC. 16. DEMONSTRATION PROGRAM WAIVER AUTHORITY.

    (a) Authority to Enter Into Agreements.--Notwithstanding any other 
provision of law, the Secretary of Housing and Urban Development may 
enter into such agreements as may be necessary with the Social Security 
Administration and the Secretary of Health and Human Services to allow 
for the participation, in any demonstration program described in 
subsection (c), by the Department of Housing and Urban Development and 
the use under such program of housing choice vouchers under section 
8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)).
    (b) Waiver of Income Requirements.--The Secretary of Housing and 
Urban Development may, to the extent necessary to allow rental 
assistance under section 8(o) of the United States Housing Act of 1937 
to be provided on behalf of persons described in subsection (c) who 
participate in a demonstration program described in such subsection, 
and to allow such persons to be placed on a waiting list for such 
assistance, partially or wholly disregard increases in earned income 
for the purpose of rent calculations under section 3 for such persons.
    (c) Demonstration Programs.--A demonstration program described in 
this subsection is a demonstration program of a State that provides for 
persons with significant disabilities to be employed and continue to 
receive benefits under programs of the Department of Health and Human 
Services and the Social Security Administration, including the program 
of supplemental security income benefits under title XVI of the Social 
Security Act, disability insurance benefits under title II of such Act, 
and the State program for medical assistance (Medicaid) under title XIX 
of such Act.

SEC. 17. STUDY TO IDENTIFY OBSTACLES TO USING VOUCHERS IN FEDERALLY 
              SUBSIDIZED HOUSING PROJECTS.

    (a) Study.--The Comptroller General of the United States shall 
conduct a study of (1) the housing voucher program authorized under 
section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)), and (2) other federally subsidized housing programs, to 
determine whether any statutory, regulatory, or administrative 
provisions of the housing voucher program or of other federally 
subsidized housing programs, or policies and practices of housing 
owners or public housing agencies or other agencies, may have the 
effect of making occupancy by voucher holders in federally subsidized 
housing projects more difficult to obtain than occupancy by non-voucher 
holders. In conducting the study required under this subsection the 
Comptroller General shall determine if any gaps exist in the statute, 
regulations, or administration of the housing voucher program or of 
other federally subsidized housing programs and policies and practices 
of housing owners or public housing agencies or other agencies that, if 
addressed, could eliminate or reduce obstacles to voucher holders in 
seeking occupancy in federally subsidized housing projects. Such study 
shall include data on the use of housing vouchers in federally 
subsidized housing projects.
    (b) Definition.--As used in this section, the term ``federally 
subsidized housing projects'' includes projects assisted pursuant to 
the HOME investment partnerships program under title II of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et 
seq.) and those projects receiving the benefit of low-income housing 
credits under section 42 of the Internal Revenue Code of 1986 (26 
U.S.C. 42).
    (c) Report.--Not later than 6 months after the date of enactment of 
this Act, the Comptroller General shall report to Congress the findings 
from the study required under subsection (a) and any recommendations 
for statutory, regulatory, or administrative changes.

SEC. 18. COLLECTION OF DATA ON TENANTS IN PROJECTS RECEIVING TAX 
              CREDITS.

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

``SEC. 36. COLLECTION OF DATA ON TENANTS IN PROJECTS RECEIVING TAX 
              CREDITS.

    ``(a) In General.--State agencies administering credits under 
section 42 of the Internal Revenue Code shall furnish to the Secretary 
of Housing and Urban Development, not less than annually, data 
concerning the race, ethnicity, family composition, age, income, use of 
rental assistance under section 8(o) of the United States Housing Act 
of 1937 or other similar assistance, disability status, and monthly 
rental payments of households residing in each property receiving such 
credits. State agencies shall, to the extent feasible, collect such 
data through existing reporting processes and in a manner that 
minimizes burdens on property owners. In the case of a household 
continuing to reside in the same unit, such data may rely on 
information provided by the household in a previous year for categories 
of information that are not subject to change or if information for the 
current year is not readily available to the owner of the property.
    ``(b) Standards and Definitions.--The Secretary of Housing and 
Urban Development shall--
            ``(1) by rule, establish standards and definitions for the 
        data collected under subsection (a);
            ``(2) provide States with technical assistance in 
        establishing systems to compile and submit such data; and
            ``(3) in coordination with other Federal agencies 
        administering housing programs, establish procedures to 
        minimize duplicative reporting requirements for properties 
        assisted under multiple housing programs.
    ``(c) Public Availability of Reports.--The Secretary of Housing and 
Urban Development shall compile and make publicly available not less 
than annually the data furnished by State agencies under subsection 
(a).
    ``(d) Authorization of Appropriations.--There are authorized to be 
appropriated $2,500,000 for fiscal year 2009 and $900,000 for each of 
the fiscal years 2010 to 2013 to cover the cost of the activities 
required under subsections (b) and (c).''.

SEC. 19. AGENCY AUTHORITY FOR UTILITY PAYMENTS IN CERTAIN 
              CIRCUMSTANCES.

    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:
            ``(23) Authority of public housing agencies to make direct 
        payments for utilities when owner fails to pay.--
                    ``(A) In general.--If the owner has failed to pay 
                for utilities that are the responsibility of the owner 
                under the lease or applicable law, the public housing 
                agency is authorized to utilize subsidy payments 
                otherwise due the owner to pay for continued utility 
                service to avoid hardship to program participants.
                    ``(B) Notice.--Before making utility payments as 
                described in subparagraph (A), the public housing 
                agency shall take reasonable steps to notify the owner 
                that it intends to make payments to a utility provider 
                in lieu of payments to the owner, except prior 
                notification shall not be required in any case in which 
                the unit will be or has been rendered uninhabitable due 
                to the termination or threat of termination of service, 
                in which case the public housing agency shall notify 
                the owner within a reasonable time after making such 
                payment.''.

SEC. 20. ACCESS TO HUD PROGRAMS FOR PERSONS WITH LIMITED ENGLISH 
              PROFICIENCY.

    (a) HUD Responsibilities.--To allow the Department of Housing and 
Urban Development to better serve persons with limited proficiency in 
the English language by providing technical assistance to recipients of 
Federal funds, the Secretary of Housing and Urban Development shall 
take the following actions:
            (1) Task force.--Within 90 days after the enactment of this 
        Act, convene a task force comprised of appropriate industry 
        groups, recipients of funds from the Department of Housing and 
        Urban Development (in this section referred to as the 
        ``Department''), community-based organizations that serve 
        individuals with limited English proficiency, civil rights 
        groups, and stakeholders, which shall identify a list of vital 
        documents, including Department and certain property and other 
        documents, to be competently translated to improve access to 
        federally conducted and federally assisted programs and 
        activities for individuals with limited English proficiency. 
        The task force shall meet not less frequently than twice per 
        year.
            (2) Translations.--Within 6 months after identification of 
        documents pursuant to paragraph (1), produce translations of 
        the documents identified in all necessary languages and make 
        such translations available as part of the library of forms 
        available on the website of the Department and as part of the 
        clearinghouse developed pursuant to paragraph (4).
            (3) Plan.--Develop and carry out a plan that includes 
        providing resources of the Department to assist recipients of 
        Federal funds to improve access to programs and activities for 
        individuals with limited English proficiency, which plan shall 
        include the elements described in paragraph (4).
            (4) Housing information resource center.--Develop and 
        maintain a housing information resource center to facilitate 
        the provision of language services by providers of housing 
        services to individuals with limited English proficiency. 
        Information provided by such center shall be made available in 
        printed form and through the Internet. The resources provided 
        by the center shall include the following:
                    (A) Translation of written materials.--The center 
                may provide, directly or through contract, vital 
                documents from competent translation services for 
                providers of housing services.
                    (B) Toll-free customer service telephone number.--
                The center shall provide a 24-hour toll-free 
                interpretation service telephone line, by which 
                recipients of funds of the Department and individuals 
                with limited English proficiency may--
                            (i) obtain information about federally 
                        conducted or federally assisted housing 
                        programs of the Department;
                            (ii) obtain assistance with applying for or 
                        accessing such housing programs and 
                        understanding Federal notices written in 
                        English; and
                            (iii) communicate with housing providers. 
                        and learn how to access additional language 
                        services.
                The toll-free telephone service provided pursuant to 
                this subparagraph shall supplement resources in the 
                community identified by the plan developed pursuant to 
                paragraph (3).
                    (C) Document clearinghouse.--The center shall 
                collect and evaluate for accuracy or develop, and make 
                available, templates and documents that are necessary 
                for consumers, relevant industry representatives, and 
                other stakeholders of the Department, to access, make 
                educated decisions, and communicate effectively about 
                their housing, including--
                            (i) administrative and property documents;
                            (ii) legally binding documents;
                            (iii) consumer education and outreach 
                        materials;
                            (iv) documents regarding rights and 
                        responsibilities of any party; and
                            (v) remedies available to consumers.
                    (D) Study of language assistance programs.--The 
                center shall conduct a study that evaluates best-
                practices models for all programs of the Department 
                that promote language assistance and strategies to 
                improve language services for individuals with limited 
                English proficiency. Not later than 18 months after the 
                date of the enactment of this Act, the center shall 
                submit a report to the Committee on Banking, Housing, 
                and Urban Affairs of the Senate and the Committee on 
                Financial Services of the House of Representatives, 
                which shall provide recommendations for implementation, 
                specific to programs of the Department, and information 
                and templates that could be made available to all 
                recipients of grants from the Department.
                    (E) Cultural and linguistic competence materials.--
                The center shall provide information relating to 
                culturally and linguistically competent housing 
                services for populations with limited English 
                proficiency.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to carry out subsection (a).
    (c) Report.--Not later than the expiration of the 6-month period 
beginning on the date of the enactment of this Act, and annually 
thereafter, the Secretary of Housing and Urban Development shall submit 
a report regarding its compliance with the requirements under 
subsection (a) to the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Financial Services of the House of 
Representatives.

SEC. 21. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated the amount necessary for 
each of fiscal years 2009 through 2013 to provide public housing 
agencies with incremental tenant-based assistance under section 8(o) of 
the United States Housing Act of 1937 (42 U.S.C. 1437f(o)) sufficient 
to assist 20,000 incremental dwelling units in each such fiscal year. A 
preference for allocation of such incremental tenant-based assistance, 
as part of the competitive process required by section 213(d) of the 
Housing and Community Development Act of 1974 (42 U.S.C. 1439(d)), is 
to be given to (1) preserving affordable housing, including State 
public housing, and other housing that needs operating support in order 
to remain affordable, and (2) entities that are providing voucher 
assistance on a regional basis.

SEC. 22. EFFECTIVE DATE.

    (a) In General.--Except as otherwise specifically provided in this 
Act, this Act and the amendments made by this Act, shall take effect on 
January 1, 2009.
    (b) Exception.--
            (1) Rent reforms.--Sections 3, 4, and 12 of this Act, and 
        the amendments made by such sections, shall take effect 
        beginning of the first day of fiscal year 2010, and shall apply 
        to each fiscal year thereafter.
            (2) Notification requirement.--Beginning on the date of 
        enactment of this Act, public housing agencies and owners of 
        dwelling units assisted under title I of the United States 
        Housing Act of 1937 (42 U.S.C. 1437 et seq.) shall notify 
        tenants as soon as possible of the--
                    (A) major changes made by the amendments in 
                sections 3 and 4, and how such changes affect the 
                current tenants occupying such units; and
                    (B) potential effects of such changes on current 
                tenants in general.
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