[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 829 Introduced in Senate (IS)]







110th CONGRESS
  1st Session
                                 S. 829

   To reauthorize the HOPE VI program for revitalization of severely 
           distressed public housing, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             March 8, 2007

  Ms. Mikulski (for herself, Mr. Martinez, Mr. Reed, Mr. Schumer, Mr. 
Levin, Mr. Menendez, Mr. Specter, Mr. Bond, Mr. Nelson of Florida, and 
  Mrs. Dole) introduced the following bill; which was read twice and 
    referred to the Committee on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
   To reauthorize the HOPE VI program for revitalization of severely 
           distressed public housing, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``HOPE VI Improvement and 
Reauthorization Act of 2007.''.

SEC. 2. HOPE VI PROGRAM REAUTHORIZATION.

    (a) Findings.--Congress finds that--
            (1) the HOPE VI program is one of the most significant and 
        successful neighborhood reinvestment strategies implemented in 
        recent years, having transformed dozens of distressed public 
        housing developments into successful mixed-use and mixed-income 
        communities of hope and opportunity and without which the 
        physical and social revitalization of these neighborhoods would 
        not have occurred;
            (2) HOPE VI has changed the face of public housing by 
        seamlessly incorporating affordable housing opportunities in 
        vital and sustainable market-based, mixed-income developments, 
        thereby serving as a model for creativity and innovation in the 
        delivery of affordable housing;
            (3) there are over 1,200,000 units of public housing, 
        between 81,900 of which are considered to be severely 
        distressed;
            (4) nationwide, the public housing inventory has an 
        accumulated capital needs backlog of approximately 
        $18,000,000,000, with an additional $2,000,000,000 accruing 
        each year;
            (5) HOPE VI funds have successfully leveraged substantial 
        additional resources;
            (6) from 1993 through 2001, the $4,500,000,000 in HOPE VI 
        grants awarded was anticipated by Public Housing Authorities to 
        leverage an additional $10,210,000,000 in other public and 
        private investments;
            (7) according to the Government Accountability Office, 59 
        percent of the total funds budgeted by fiscal year 2001 
        grantees for community and supportive services consisted of 
        leveraged funds;
            (8) HOPE VI has resulted in the demolition of tens of 
        thousands of severely distressed and often uninhabitable public 
        housing units and, in their place, created affordable housing 
        opportunities in healthy mixed- income communities in the form 
        of both project-based housing and housing voucher assistance, 
        giving existing public housing residents improved and 
        meaningful housing choices; and
            (9) HOPE VI has fundamentally transformed the lives of 
        thousands of public housing residents who have become self-
        sufficient through the required community and supportive 
        services programs.
    (b) Declaration of Policy.--Based on the findings set forth in 
subsection (a), Congress declares that it is the policy of the United 
States to reauthorize the HOPE VI program to--
            (1) end the practice of concentrating the poor in 
        distressed, isolated neighborhoods as an underlying predicate 
        for leaving no children behind;
            (2) create healthy communities using a holistic and 
        comprehensive approach to assure long term marketability and 
        sustainability of the community;
            (3) support excellent outcomes for families, especially 
        children, with an emphasis on excellent--
                    (A) high-performing neighborhood schools and 
                academic achievement; and
                    (B) quality of life amenities, such as first class 
                retail space and green space;
            (4) create mixed-income communities, with the goal of 
        creating a market-rate community with a seamless affordable 
        component;
            (5) develop such mixed-income communities through public-
        private partnerships using public and private sources of 
        funding and market principles; and
            (6) support residents with adequate resources to assist 
        them in achieving their life goals, focusing on self-
        sufficiency and educational advancement of children and their 
        parents, thereby creating a culture of learning, education, and 
        excellence, in which expectations and standards for personal 
        responsibility are benchmarks for success.
    (c) Purposes of HOPE VI Program.--Section 24(a) of the United 
States Housing Act of 1937 (42 U.S.C. 1437v(a)) is amended--
            (1) in paragraph (3), by striking ``and'' at the end;
            (2) in paragraph (4), by striking the period at the end and 
        inserting a semicolon; and
            (3) by adding at the end the following:
            ``(5) promoting sustainable connections between the 
        revitalization of public housing communities and local schools 
        and institutions of higher learning, as a means of supporting 
        educational achievement by children and adults as part of a 
        comprehensive self-sufficiency strategy; and
            ``(6) reducing concentrations of poverty and promoting 
        housing choice and self-sufficiency among low-income families 
        by ensuring the successful temporary or permanent relocation of 
        residents from severely distressed public housing projects 
        through comprehensive counseling and supportive services that 
        assist in selection of and success in lower poverty 
        neighborhoods of such families by giving them the tools to 
        achieve self-sufficiency.''.
    (d) Education and Relocation Activities.--Section 24(d) of the 
United States Housing Act of 1937 (42 U.S.C. 1437v(d)) is amended--
            (1) in paragraph (1)--
                    (A) in subparagraph (K), by striking ``and'' at the 
                end;
                    (B) by striking subparagraph (L) and inserting the 
                following:
                    ``(L) necessary comprehensive supportive services, 
                including employment and vocational counseling, life 
                skills training, and other human services; and
                    ``(M) necessary costs of ensuring the effective 
                temporary and permanent relocation of existing 
                residents.''; and
            (2) by adding at the end the following:
            ``(3) Linkages to education.--
                    ``(A) In general.--Subject to subparagraph (C), 
                each HOPE VI grant recipient shall establish, in 
                partnership with the local schools and school 
                superintendent, a comprehensive educational reform and 
                achievement strategy, including objective standards and 
                measures for performance, for transforming the 
                neighborhood schools that serve the revitalized HOPE VI 
                sites into high performing schools.
                    ``(B) Content of strategy.--The strategy required 
                under subparagraph (A) shall--
                            ``(i) include the clear commitment of the 
                        neighborhood schools and institutions of higher 
                        learning, including the commitment of financial 
                        and other resources by local foundations and 
                        other public and private partners;
                            ``(ii) include a detailed plan for 
                        reforming educational programming for pre-
                        school and elementary school children;
                            ``(iii) address educational reform for 
                        middle school and high school students; and
                            ``(iv) provide means of encouraging adult 
                        continuing education.
                    ``(C) Alternative strategy.--If a public housing 
                agency certifies to the Secretary, with supporting 
                documentation reasonably satisfactory to the Secretary, 
                that the neighborhood schools that serve the 
                revitalized HOPE VI sites are high-performing schools, 
                or that there are schools other than neighborhood 
                schools, such as other local public schools, charter 
                schools or other accredited schools, that serve the 
                revitalized HOPE VI sites, then the public housing 
                agency, in lieu of the requirements under subparagraphs 
                (A) and (B), shall establish a comprehensive 
                educational achievement strategy, including objective 
                standards and measures for performance, for students 
                residing at the revitalized HOPE VI sites that involves 
                a level of effort commensurate with the comprehensive 
                educational reform and achievement strategy required 
                under subparagraphs (A) and (B).
                    ``(D) Timeline.--The timeline for development and 
                implementation of the strategy required under 
                subparagraph (A) shall support and be consistent with 
                the HOPE VI redevelopment schedule.''.
    (e) Grant Award Criteria.--Section 24(e)(2) of the United States 
Housing Act of 1937 (42 U.S.C. 1437v(e)(2)) is amended to read as 
follows:
            ``(2) Grant award criteria.--
                    ``(A) In general.--The Secretary shall establish 
                criteria for the award of grants under this section to 
                ensure that performance standards are met by awarding 
                funds to public housing agencies that--
                            ``(i) demonstrate--
                                    ``(I) partnerships and 
                                collaboration between public and 
                                private sector partners;
                                    ``(II) a need for funding; and
                                    ``(III) a readiness and capacity to 
                                execute the proposed program; and
                            ``(ii) propose measurable interim and long-
                        term outcomes achieving the purposes and goals 
                        of the program.
                    ``(B) Criteria requirements.--In developing 
                criteria under subparagraph (A), the Secretary shall 
                consider--
                            ``(i) the extent to which the proposal 
                        realistically addresses achievement of the 
                        purposes of the HOPE VI program described in 
                        subsection (a);
                            ``(ii) the extent to which a proposal 
                        demonstrates linkages to education, as required 
                        under subsection (d)(3);
                            ``(iii) the quality and sustainability of 
                        the physical redevelopment program and the 
                        offering of housing choice to residents, 
                        including multifamily rental housing and 
                        homeownership opportunities for households with 
                        a wide range of incomes and housing for 
                        seniors;
                            ``(iv) the likely effectiveness of the plan 
                        for temporary and permanent relocation of 
                        existing residents, which shall ensure that 
                        residents are--
                                    ``(I) fully aware of their 
                                relocation choices; and
                                    ``(II) supported during the 
                                relocation process to assure a 
                                successful transition, including case 
                                management and the counseling and 
                                supportive services that the plan 
                                offers to such residents;
                            ``(v) evidence that the subject project is 
                        severely distressed, which shall include a 
                        certification signed by an engineer or 
                        architect licensed by a State licensing board 
                        that the project meets the criteria for 
                        physical distress described in subsection 
                        (j)(2);
                            ``(vi) the strength of local government 
                        support for the proposal, financial and 
                        otherwise, which shall require, at a minimum, a 
                        commitment evidenced by the signature of the 
                        chief executive of such government of financial 
                        assistance equal to not less than 5 percent of 
                        the HOPE VI grant amount;
                            ``(vii) the strength of evidence that the 
                        implementation team has the ability to perform 
                        under the HOPE VI program, including evidence 
                        as to the capabilities of both the public 
                        partners, including the public housing agency, 
                        and the proposed private development partners;
                            ``(viii) the achievability of the timelines 
                        proposed for implementation of the 
                        revitalization plan, which shall reflect the 
                        scope and scale of the project, while 
                        addressing the implementation timeline for each 
                        of the components individually;
                            ``(ix) the extent to which the proposal 
                        will leverage other public or private funds or 
                        assets for the project in an amount that equal 
                        to not less than 2 times the amount of the HOPE 
                        VI grant;
                            ``(x) the extent to which the applicant 
                        could undertake such activities without a grant 
                        under this section;
                            ``(xi) the extent of involvement of 
                        residents, State and local governments, private 
                        service providers, financing entities, and 
                        developers, in the development and ongoing 
                        implementation of a revitalization program for 
                        the project, except that the Secretary may not 
                        award a grant under this section unless the 
                        applicant has involved affected public housing 
                        residents at the beginning of, and during the 
                        planning process for, the revitalization 
                        program, prior to submission of an application;
                            ``(xii) the need for affordable housing in 
                        the community;
                            ``(xiii) the supply of other housing 
                        available and affordable to families receiving 
                        tenant-based assistance under section 8 of this 
                        title;
                            ``(xiv) the strength and soundness of the 
                        proposal to assist residents in achieving self-
                        sufficiency and personal responsibility;
                            ``(xv) the extent to which--
                                    ``(I) the plan minimizes permanent 
                                displacement of current residents of 
                                the public housing site who--
                                            ``(aa) wish to return to 
                                        the revitalized community; and
                                            ``(bb) meet the reoccupancy 
                                        criteria (including all 
                                        residents that were not evicted 
                                        prior to the revitalization 
                                        effort);
                                    ``(II) the plan provides for 
                                community and supportive services to 
                                residents prior to and during any 
                                relocation; and
                                    ``(III) reasonable and appropriate 
                                supportive services are offered to 
                                residents wishing to return to the 
                                revitalized site that will help such 
                                residents meet reoccupancy criteria;
                            ``(xvi) the extent to which the plan 
                        sustains or creates more project-based housing 
                        units available to persons eligible for public 
                        housing in markets where the plan shows there 
                        is demand for the maintenance or creation of 
                        such units;
                            ``(xvii) the extent to which the proposal 
                        sets forth strategies and plans that assist 
                        residents displaced by the revitalization in 
                        utilizing tenant based vouchers to select 
                        housing opportunities, including in communities 
                        with a lower concentration of poverty that--
                                    ``(I) will not result in a 
                                financial burden to the family; and
                                    ``(II) will promote long-term 
                                housing stability;
                            ``(xviii) the extent to which the proposal 
                        provides and ensures, as part of its 
                        revitalization program for the effective 
                        temporary and permanent relocation of existing 
                        residents, that--
                                    ``(I) residents are fully informed 
                                of relocation options, which include 
                                relocation to housing in a neighborhood 
                                with a lower concentration of poverty 
                                than the current residence of such 
                                residents, through workshops, site 
                                tours, case management, or other means, 
                                and are given the opportunity to make 
                                informed choices;
                                    ``(II) relocation milestones are 
                                established that ensure successful 
                                relocation in terms of timeliness and 
                                steps toward self-sufficiency;
                                    ``(III) the relocation plan does 
                                not result in increased concentrations 
                                of poverty in the communities to which 
                                residents are relocated;
                                    ``(IV) particular attention is paid 
                                to minimizing the impact of relocations 
                                on children, such as coordinating 
                                relocation moves with school calendars;
                                    ``(V) existing residents who are 
                                being temporarily or permanently 
                                relocated are offered and encouraged to 
                                participate in comprehensive community 
                                and supportive services over the period 
                                of the HOPE VI grant to facilitate the 
                                progress of such residents toward self-
                                sufficiency whenever possible; and
                                    ``(VI) the proposed budget for 
                                relocation costs reflects the costs of 
                                effective relocation efforts, including 
                                moving expenses, counseling, case 
                                management, and other related costs, 
                                including payments required under the 
                                Uniform Relocation Act; and
                            ``(xix) such other factors as the Secretary 
                        considers appropriate.''.
    (f) Supplemental Funding.--Section 24(e)(3) of the United States 
Housing Act of 1937 (42 U.S.C. 1437v(e)(3)) is amended by adding after 
the first sentence the following: ``The Secretary may also determine 
not to apply certain of the selection criteria when awarding grants to 
previous recipients of assistance under this section that have 
successfully utilized such grants for site revitalization in accordance 
with their grant agreements, but that require demolition-only or site 
revitalization assistance to address conditions on a portion of the 
original public housing site not covered by the original grant in a 
manner that will increase or complement the success of the original 
grant.''.
    (g) Site Visits.--Section 24(e) of the United States Housing Act of 
1937 (42 U.S.C. 1437v(e)), as amended by subsection (e), is amended by 
adding at the end the following:
            ``(4) Notwithstanding any other provision of law, the 
        Secretary may conduct site visits for HOPE VI applicants to 
        assist in making funding decisions under this section.''.
    (h) HOPE VI Performance Benchmarks.--Section 24 of the United 
States Housing Act of 1937 (42 U.S.C. 1437v) is amended--
            (1) by redesignating subsections (f) through (o) as 
        subsections (g) through (p), respectively; and
            (2) by inserting after subsection (e) the following:
    ``(f) Performance Benchmarks.--
            ``(1) In general.--Public housing agencies, in consultation 
        with the Secretary, shall set performance benchmarks for each 
        component of their HOPE VI projects, including benchmarks for--
                    ``(A) linkages with schools and other community 
                partners;
                    ``(B) effective temporary and permanent relocation 
                of existing residents;
                    ``(C) achievement of self-sufficiency by residents;
                    ``(D) accomplishing key revitalization goals, 
                taking into consideration the scope and scale of the 
                revitalization plan; and
                    ``(E) such other benchmarks as the Secretary 
                determines appropriate.
            ``(2) Failure to meet benchmarks.--Except as provided in 
        paragraph (3), if a public housing agency fails to meet the 
        performance benchmarks described under paragraph (1), the 
        Secretary shall impose appropriate sanctions, including--
                    ``(A) appointment of an alternative administrator 
                for the HOPE VI project;
                    ``(B) financial penalties;
                    ``(C) withdrawal of funding under subsection (j); 
                or
                    ``(D) such other sanctions as the Secretary may 
                deem necessary.
            ``(3) Extension of benchmarks.--The Secretary shall extend 
        the performance benchmarks under paragraph (1) for a public 
        housing agency, for such period as the Secretary determines to 
        be necessary, if the failure of the agency to meet such 
        benchmarks is attributable to--
                    ``(A) litigation;
                    ``(B) obtaining approvals of the Federal Government 
                or a State or local government;
                    ``(C) complying with environmental assessment and 
                abatement requirements;
                    ``(D) relocating residents;
                    ``(E) an event beyond the control of the public 
                housing agency; or
                    ``(F) any other reason established by the Secretary 
                by notice published in the Federal Register.
            ``(4) Authority of the secretary.--The Secretary shall 
        determine the amount of each grant under this section and the 
        closeout or termination date for the grant, taking into 
        consideration the scope, scale, and size of the revitalization 
        plan.''.
    (i) Authorization of Appropriations.--Section 24(n)(1) of the 
United States Housing Act of 1937 (42 U.S.C. 1437v(n)(1)), as 
redesignated by subsection (h), is amended by striking ``$574,000,000 
for fiscal year 2007'' and inserting ``$600,000,000 for each of fiscal 
years 2008 through 2013''.
    (j) Extension of Program.--Section 24(p) of the United States 
Housing Act of 1937 (42 U.S.C. 1437v(p)), as redesignated by subsection 
(g) of this section, is amended by striking ``September 30, 2007'' and 
inserting ``September 30, 2013''.
    (k) Review.--The Comptroller General of the United States shall--
            (1) conduct a review of tools utilized in HOPE VI 
        revitalization efforts under section 24 of the United States 
        Housing Act of 1937 (42 U.S.C. 1437v) which may be transferable 
        to other federally-assisted housing programs; and
            (2) make recommendations to the Congress on the tools 
        reviewed under paragraph (1) not later than September 30, 2009.
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