1.Short title; table of
contents
(a)This Act may be cited as the Rental Housing Revitalization Act of
2010
.
(b)The table of contents for this Act is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Conversion of rental assistance.
Sec. 4. Transformation authority.
Sec. 5. Property-based contracts.
Sec. 6. Project-based voucher contracts.
Sec. 7. Conforming amendments.
2.
(a)The
Congress finds that—
(1)the Department of
Housing and Urban Development (in this section referred to as HUD) currently
provides rental assistance to more than 4.8 million households through at least
13 different programs that are implemented through an infrastructure comprised
of approximately public housing agencies, more than 18,000 individual Federal
contracts with private owners, and hundreds of non-profit rental program
administrators;
(2)the substantial
unmet capital needs of the aging public and assisted housing stock hinder
Federal efforts to provide safe, high-quality, sustainable, energy-efficient
affordable housing; and
(3)the current rental
assistance structure unnecessarily increases transaction costs for developers
and communities, makes it more difficult for families in need to obtain rental
assistance, impedes fair access to scarce resources, and fails to decrease the
concentration of poor and minority families in distressed or isolated
neighborhoods, to expand opportunities to live in mixed-income sustainable
neighborhoods, or to expand opportunities to live in mixed-income sustainable
neighborhoods, while at the same time worst-case housing needs and homelessness
are increasing significantly.
(b)The
purposes of this Act are—
(1)to preserve
affordable housing opportunities for the long term, by providing the
opportunity for public housing agencies and private owners to convert from
current forms of rental assistance under a variety of programs to long-term,
property-based contracts that will enhance market-based discipline and enable
owners to sustain operations and leverage private financing to address
immediate and long-term capital needs;
(2)to enhance housing
choice for residents;
(3)to streamline and
improve the delivery and oversight of rental assistance across all rental
assistance programs by such means as promoting consortia, consolidation, and
other locally designed structures for administrative functions;
(4)to create more
uniform policies across all rental assistance programs funded by the Secretary
of Housing and Urban Development to increase administrative efficiency at all
levels of program operations; and
(5)to facilitate the
adoption of energy-efficient and green technologies in HUD-assisted housing in
order to reduce operating costs, improve residents’ quality of life, and
enhance and protect the value of such housing.
3.Conversion of
rental assistanceSection 8 of
the United States Housing Act of 1937 (42 U.S.C. 1437f) is amended by inserting
after subsection (k) the following new subsection:
(l)Conversion of
rental assistance
(1)Authority for
conversion of rental assistanceThe Secretary may, subject to the
availability of amounts provided in appropriations Acts and that otherwise
become available, and to the control of the Secretary of applicable accounts in
the Treasury of the United States, allocate amounts to public housing agencies
and other owners of eligible properties for the voluntary conversion of
existing project-based rental housing assistance contracts, as specified in
this subsection, including annual contributions contracts, through the
execution of long-term, property-based assistance contracts under subsection
(n) (in this subsection referred to as property-based contracts)
or of project-based voucher rental assistance contracts for additional units of
assistance under subsection (o)(13) (in this subsection referred to as
project-based voucher contracts) with public and private owners of
properties assisted under—
(A)this section,
excluding owners that continue to request renewal of rental assistance
contracts under section 524 of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note);
(B)section 9 of this
Act (42 U.S.C. 1437g);
(C)the rent
supplement program under section 101 of the Housing and Urban Development Act
of 1965 (12 U.S.C. 1701s);
(D)the rental
assistance program under section 236(f)(2) of the National Housing Act (12
U.S.C. 1715z–1(f)(2)); and
(E)other Federal
affordable housing programs, as authorized by statute.
(2)Conditions and
procedures for conversion processThe Secretary shall provide, by
notice inviting owners of eligible properties to request conversion of
assistance pursuant to this subsection, conditions and procedures for approval
of such requests as the Secretary determines appropriate, including conditions
and procedures that—
(A)promote the
rehabilitation, including energy-efficiency improvements and sustainable design
features, and long-term financial and physical sustainability of
properties;
(B)deconcentrate
poverty;
(C)increase
administrative efficiency; or
(D)promote physical
accessibility for persons with disabilities.
(3)In addition to any other conditions of conversion the
Secretary may require, the Secretary shall ensure, through measures including
requirements for conversion requests, contract provisions, and the control of
the allocation of amounts, that—
(A)any property that
is proposed for conversion of assistance under this subsection and will undergo
substantial rehabilitation shall be subject to a detailed physical condition
assessment that will identify rehabilitation needs, estimate repair and
replacement needs, and identify opportunities to implement cost-effective,
energy-efficient and green technologies;.
(B)the number of
affordable units with property-based assistance is not decreased by the
conversion of assistance under this subsection, except as provided in paragraph
(5) of this subsection;
(C)there is no
reduction in the number of families receiving rental assistance as a result of
the conversion under this subsection;
(D)conversion under
this subsection shall not be grounds for termination of tenancy; and
(E)the owner has
complied with requirements established by the Secretary for consultation with
residents about the owner’s intention to apply for conversion under this
subsection, and any related rehabilitation or demolition of units in which
tenants reside and any resulting relocation of tenants to other units,
including the applicable rights of return, which requirements shall
include—
(i)resident
involvement in planning for and implementation of conversion, including
reasonable steps to help ensure meaningful participation for residents who are
limited in their English proficiency;
(ii)meetings with
residents to ensure that each tenant wishing to return to revitalized on-site
housing has the opportunity to express that wish and be accorded preference for
tenancy; and
(iii)public meetings
prior to implementing any significant amendments or changes to a conversion
plan.
For a
public housing agency, a plan to convert under this subsection shall be
considered a significant amendment to the agency plan under section 5A (42
U.S.C. 1437c–1), and the agency shall comply with applicable requirements to
consult with the resident advisory board and the public concerning significant
amendments.(4)Agreement to
provide assistanceThe Secretary may provide for an agreement to
provide assistance under a property-based or project-based voucher contract
with an owner of a property in advance of final approval of conversion, to
facilitate the owner’s ability to obtain financing or for other reasons.
(5)One-for-one
replacement of assisted unitsProperties converted to assistance
under this subsection may have fewer assisted units under a property-based
contract or under a project-based voucher contract after conversion that the
property had immediately prior to the conversion of assistance (including
vacant units) only if the assistance from such reduced number of units is
transferred to an equal number of units in a replacement property or
properties, as follows:
(A)For 100 percent of all such units in existence, as of the
date of the request for conversion, that are to be demolished or disposed or
converted to a unit that is not assisted under this Act, the owner shall
provide a plan acceptable to the Secretary for timely replacement of each
unit.
(B)Replacement housing shall reflect the number of bedrooms
that are needed to adequately serve returning tenants, households currently on
the waiting list and to meet future needs based on other market data, as
determined by the Secretary.
(C)Disability
accessible housingOff-site replacement housing shall not result
in a decrease in available inventory of disability accessible housing, and all
housing, where otherwise covered, shall comply with the accessibility
requirements of the Fair Housing Act (42 U.S.C. 3601 et seq.) and section 504
of the Rehabilitation Act of 1973 (29 U.S.C. 794).
(D)Replacement
housing units shall be developed—
(i)on
the site of the property being converted; and
(ii)in the
neighborhood or within the metropolitan area up to 25 miles from the property
being converted, as necessary to—
(I)comply with fair
housing requirements;
(II)deconcentrate
poverty;
(III)provide
appropriate densities for the property being converted;
(IV)promote
location-efficient communities; or
(V)meet other factors
as determined by the Secretary in order to further the purposes of this
subsection and subsection (m).
(E)Replacement
housing developed off the site of the property being converted as provided
under subparagraph (D)(ii) shall meet the following requirements:
(i)Off-site replacement housing shall offer access to
economic opportunities and public transportation and be accessible to social,
recreational, educational, commercial, health facilities and services, and
other municipal services and facilities that are comparable under such
standards as the Secretary may prescribe.
(ii)Prohibition of
increase of concentration of minoritiesOff-site replacement
housing shall not be located in areas of minority concentration, defined in
relation to the metropolitan area or rural county in which the project is
located, or in areas of extreme poverty, except in areas that qualify as
revitalizing neighborhoods, as defined by the Secretary.
(F)Tenant-based
vouchers as replacement housingAn owner may replace up to half
of the units that are demolished or disposed of or permitted to be unassisted
under the conversion in accordance with this subsection with tenant-based
vouchers in housing markets where there is—
(i)an
adequate supply of affordable rental housing in areas of low poverty, which
supply shall be demonstrated by data that show within the housing market area
of the property that—
(I)at least 80
percent of vouchers under subsection (o) issued over the last 24 months to
comparable families were successfully leased within 120 days of issuance, or,
if a sufficient number of comparable families have not received vouchers, an
alternative measure, as the Secretary shall design, is met;
(II)existing voucher
holders are widely dispersed geographically in areas of low poverty with access
to public transportation, education, and other amenities, as determined by the
Secretary, among the available private rental housing stock; and
(III)the applicant
provides a market analysis demonstrating that—
- (aa)there is a
relatively high vacancy rate among units that would meet or exceed housing
quality standards within the market area, as determined by the Secretary, with
rent and utility costs not exceeding the applicable payment standard under
subsection (o); and
- (bb)such high vacancy
rate within the market area is expected to continue for the next 5 years or
longer; or
(ii)a
judgment, consent decree, or other order of a court limits the ability of the
owner to comply with the requirements under this paragraph.
(G)Notwithstanding any other provision of this subsection,
the owner of a property converting under this subsection may demolish not more
than the lesser of 5 dwelling units or 5 percent of the total dwelling units at
the converting property, but only—
(i)to
reconfigure units to serve returning tenants or households currently on the
waiting list;
(ii)if the space
occupied by the demolished unit is used for meeting the service or other needs
of residents; or
(iii)if the
demolished unit was beyond repair.
(6)The Secretary shall require use and affordability
restrictions as a condition of conversion of each property to a property-based
contract or project-based voucher contract, as follows:
(A)
(i)An owner of a
property assisted under section 9 approved for conversion of assistance
pursuant to this subsection shall agree to provide the number of units, as
required under paragraph (5), subject to the eligibility, targeting, and rent
rules as provided under the property-based contract or project-based voucher
contract for use as affordable housing for at least 30 years from the date of
execution of the initial section 8 contract after conversion and continuously
for the duration of each extension or renewal of such contract offered by the
Secretary or a public housing agency pursuant to subsection (n) or
(o)(13).
(ii)Transfer or
sale of propertyNo sale or transfer of a property subject to a
use agreement under this subparagraph, except properties subject to paragraph
(18), shall be permitted without the prior approval of the Secretary. The
Secretary shall not approve a sale or transfer to a for-profit entity, except
as permitted under paragraph (13)(B) of this subsection to facilitate the use
of tax credits under section 42 of the Internal Revenue Code of 1986, and shall
not approve a sale or transfer to a non-profit entity unless the Secretary
determines that there is no capable public entity willing to take ownership of
the property.
(B)An owner of a
property other than a property assisted under section 9 entering into a
contract for rental assistance pursuant to this subsection shall agree to
provide the number of units, as required under paragraph (5), subject to the
eligibility, targeting, and rent rules as provided under the property-based or
project-based voucher contract for use as affordable housing for the greater of
the remaining term of any prior use restriction existing at the time of
conversion to the new rental assistance contract or the initial term of the new
rental assistance contract.
(C)Modification of
use agreement with transfer of assistanceThe Secretary shall
establish procedures to allow for the transfer of assistance from all or part
of the units in a property with converted assistance, at the request of an
owner or upon expiration or termination of a rental assistance contract, to a
new contract for rental assistance at a replacement property or properties,
subject to the requirements of paragraph (5), otherwise applicable legal
requirements, and to a continuation of use restriction at the new property. The
Secretary shall require owners requesting such modifications to provide notice
and consultation with tenants as provided in paragraph (3)(E) and to assist
tenants to relocate, in accordance with paragraph (9).
(7)Tenants residing
in units at time of conversionNotwithstanding any other
provision of law, a family lawfully residing in an assisted unit in a property
at the time of a conversion of assistance under this subsection shall be
considered eligible for assistance under subsections (n) and (o)(13), as
applicable, and shall not be subject to rescreening or termination of
assistance or eviction from the unit or denial of reoccupancy after
rehabilitation because of the conversion or the requirements of any other funds
used to finance the rehabilitation, and the requirements of section 16 shall
not apply to such family, but shall be complied with upon turnover of tenants.
For purposes of section 42 of the Internal Revenue Code of 1986, such otherwise
compliant tenancies shall be considered to be in compliance with income
requirements.
(8)The Secretary may implement measures to facilitate the
cost-effective adoption of energy-efficient and green technologies in
properties converting to assistance under this subsection and in replacement
units newly constructed with assistance under this section.
(9)
(A)Applicability of
Uniform Relocation and Real Property Acquisition Policies ActThe
Uniform Relocation and Real Property Acquisition Policies Act of 1970 (42
U.S.C. 4601 et seq.) shall apply to displacement and relocation activities
pursuant to the conversion of rental assistance under this subsection except as
otherwise provided in this paragraph.
(B)A public housing agency or owner that acquires,
rehabilitates, or demolishes any project or building, or portion thereof, in
connection with the conversion or transfer of assistance under this subsection
may temporarily, for a period not to exceed 12 months, or such other period,
not to exceed 24 months, as the Secretary may authorize, relocate families
lawfully residing in a unit on the property and provide such families notice
and relocation assistance as required by the Secretary. A relocated family
shall have, upon completion of the project and consistent with any guidelines
issued by the Secretary, the right to return if the tenant has not committed
serious or repeated violations of material terms of the lease or occupancy
agreement at the time of departure from the housing subject to rehabilitation
or demolition, or during the temporary relocation period.
(C)When assistance is transferred to another property
pursuant to this subsection without a period of temporary relocation, the
public housing agency or owner shall offer each family that chooses to relocate
from the property from which assistance is transferred to the property to which
assistance is transferred payment of actual, reasonable, and necessary moving
expenses, including utility deposits, and, if the newly assisted units are not
owned by the public housing agency or owner, payment of security deposits,
credit checks, and other moving-related expenses.
(D)Displacement
and relocation costs as required by law or as the Secretary may direct as
authorized by this paragraph shall be paid from any rental assistance or other
funds provided by the Secretary or otherwise available to a public housing
agency or owner that may be used for such purpose. A displaced family may
receive an incremental, tenant-based voucher under this section, if such a
voucher is made available.
(10)Amount of
monthly assistance payment to ownerThe amount of the monthly assistance
payment with respect to any unit upon conversion shall be the difference
between the maximum monthly rent that the property-based or project-based
voucher contract provides the owner is to receive for the unit plus the
allowance for tenant-paid utilities and the rent that the family is required to
pay under section 3 of this Act.
(11)Tenants
over-income for continuing subsidyIf the required contribution of a family
toward rent under section 3 exceeds the rent established for the unit and the
applicable utility allowance, the family may continue to reside in the unit and
pay the established rent. The Secretary or the public housing agency shall not
reduce the number of units assisted under the property-based or project-based
voucher contract due to residency by such a family, and may use funds not
required for assistance under the contract in any year for other authorized
rental assistance.
(12)If the units proposed to be converted pursuant to this
subsection are subject to an approved designation plan under section 7 (42
U.S.C. 1437e) or are designed to accommodate tenants with special needs under
any other authority, the Secretary shall permit the designation or
accommodation to continue to apply to the converted units under the same terms
and conditions as would otherwise have applied, and may permit additional
designations consistent with Federal statute or executive order.
(13)Conversion of
public housingIn addition to such other conditions as the
Secretary may require, the following conditions shall apply to a property
assisted under section 9 that is converting to rental assistance under this
subsection:
(A)Treatment of
converted unitsThe conversion of units assisted under section 9
to assistance in accordance with this subsection shall not be considered a
disposition under section 18 (42 U.S.C. 1437p).
(B)Requirements for
properties with housing tax creditsPublic housing agencies that
utilize tax credits under section 42 of the Internal Revenue Code of 1986 for
rental housing units converted under this subsection with respect to such units
shall provide for—
(i)an
option for the public housing agency to purchase limited partnership interests
in a property containing such units after the tax compliance period under such
section 42;
(ii)a
provision to give a public housing agency an active role in property management
decisions of such housing; or
(iii)such other
provision or provisions as the Secretary may establish to ensure the
preservation of the interest of the public housing agency in the
property.
(C)Resident
membership on boardA public housing agency that converts some or
all of its units to assistance in accordance with this subsection shall comply
with the resident board membership requirement of section 2(b) (42 U.S.C.
1437(b)), as applicable.
(D)The Secretary shall
require, following conversion of assistance in accordance with this subsection,
that the Secretary and the public housing agency shall continue to meet
obligations associated with financing pursuant to section 30 (42 U.S.C.
1437z–2), including financing obligations for which capital funds or operating
funds provided under section 9 are pledged for repayment, if such obligations
are not refinanced or otherwise paid off, using assistance provided under the
property-based or project-based voucher contract or otherwise, and shall comply
with the terms and conditions of contracts associated with such financings,
energy performance contracts, and similar contracts, as specified by the
Secretary, in effect before conversion of assistance in accordance with this
subsection. The Secretary may require the allocation of an equitable percentage
of repayment obligations to be repaid from assistance under the property-based
or project-based voucher contracts or impose such other requirements as are
necessary to ensure that the requirements of the preceding sentence are met,
without imposing greater restrictions on the public housing agency than the
agency would have had under the original financing.
(E)Notwithstanding any other provision of law, capital funds
provided pursuant to section 9(d) (42 U.S.C. 1437g(d)) may be used for
assistance in the financing of necessary improvements or other capital expenses
for any project or units assisted under section 9 and to be converted to
assistance in accordance with this subsection, including making a capital
contribution to such a project where needed to make the financing feasible, the
purchase or provision of letters of credit or other credit enhancements
necessary to carry out successful conversions, initial contributions to any
necessary reserves, and other financing expenses approved by the Secretary. The
Secretary may waive or modify requirements otherwise applicable to such capital
funds as necessary to facilitate their use in connection with conversions as
authorized by this subsection.
(F)Transition rents
for tenants in converted public housing propertiesThe Secretary
shall require a public housing agency to implement such changes in rental
payment requirements otherwise applicable to tenants at the time of conversion
under this subsection as are necessary to prevent such tenants from having
rents increased solely as a result of the conversion by more than 10 percent
per year. The Secretary may require or authorize a public housing agency to
adopt a specific time after which such transitional provisions no longer will
be effective.
(14)Transfer and
use of funds
(A)Termination of
assistance under previous contractFollowing conversion under
this subsection, additional assistance for a property shall not be provided
under the previous contract, agreement, or authority.
(B)The Secretary shall take necessary actions to provide
that, as a condition of conversion of a property, the unexpended assistance,
including capital funds, made available for such property under a previous
contract, agreement, or authority (up to and including the Federal fiscal year
of conversion) shall be transferred to accounts applicable to assistance
provided under this subsection to pay all or a portion of—
(i)the up-front costs
of conversion;
(ii)the initial
contributions to any necessary reserves;
(iii)the funding of the initial year or years of
the new property-based or project-based voucher contract of assistance entered
into pursuant to this subsection;
(iv)the financing of
necessary renovations to, or other capital expenses for, the property,
including the making of capital contributions and the provision of letters of
credit or other credit enhancements or financing expenses approved by the
Secretary; and
(v)contract
administration of converted rental assistance properties under this
subsection.
(C)To the extent provided in advance in appropriations Acts,
the Secretary may transfer funds between accounts applicable to assistance
provided under section 9 and accounts applicable to assistance provided under
this subsection and subsections (n) and (o).
(15)Release of
prior requirementsA property
assisted under a property-based or project-based voucher contract following
conversion under this section shall not be subject to any terms, conditions,
and requirements of the previous assistance from which it was converted, except
as provided for by this subsection and subsections (n) and (o), and by such
terms, conditions, and requirements as established for the new assistance by
the Secretary.
(16)Conversion from
property-based contract to project-based voucher contractA
property under a property-based contract may convert to a project-based voucher
contract at the request of the owner of the property and at the discretion of,
and upon approval by, the Secretary if the property meets the applicable
requirements under subsection (o)(13) and a public housing agency eligible to
administer the contract agrees to such administration.
(17)Notice of
termination of affordability restrictions
(A)An owner of a property that has been converted to a
property-based contract pursuant to this subsection shall, if the owner intends
not to renew or extend the rental assistance contract at the property, provide
written notice of such intent at least 12 months in advance of the intended
termination date. Notice shall be provided to the Secretary, the chief
executive officer of the State and the unit of general local government (as
such term is defined in section 4 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12704)) in which the property is located, and to each
tenant of the property at such time and in such form as may be prescribed by
the Secretary through regulation.
(B)Failure to
provide noticeIf an owner fails to provide notice as required in
subparagraph (A), the owner may not evict the tenants or increase the tenants’
rent payments based upon the change in subsidy status of the property until
such time as the owner has provided the notice and the 12-month period
beginning upon the provision of such notice has elapsed.
(18)Properties in
default, foreclosure, or bankruptcy
(A)
(i)Any mortgage made
on, or security interest otherwise granted in, any property with a rental
assistance contract or agreement converted pursuant to this subsection shall
include a provision for simultaneous notification to the owner of the property
and the Secretary of any default under the mortgage or other security
agreement.
(ii)Conversion
contract requirementAny
contract or agreement to convert assistance pursuant to this subsection shall
include a provision requiring the owner to notify the Secretary of any default
under a mortgage made on, or security interest otherwise granted in, any
property with a rental assistance contract or agreement converted pursuant to
this subsection.
(iii)Authority to
suspend rental assistanceAfter receiving notification of a
default as provided in clause (i), the Secretary may suspend all or a portion
of any rental assistance payments funded by the Secretary under any contract on
behalf of the property in default and use amounts from such suspended payments
to cure the default. Such suspension shall not be cause for eviction of any
tenant assisted under this section.
(iv)The
Secretary may conduct an audit of any property that has had rental assistance
payments suspended under clause (i). The owner of such property shall make
available all records of the property to the Secretary, including books of
account, bank statements, and contracts for purposes of the audit.
(v)Resumption of
rental assistanceFollowing cure of the default and subject to
the results of any audit conducted under clause (iv), the Secretary may
terminate, in whole or in part, the suspension of payments and resume payment
in accordance with the contract. The Secretary may require the payee under the
contract to take such corrective actions as the Secretary determines to be
appropriate as a condition of resuming payments under the contract.
(B)Properties in
foreclosure or bankruptcyNotwithstanding any provision of
Federal or State law, in the event of a foreclosure, or the bankruptcy of an
owner, of a property converted under this subsection, such property shall
remain subject to—
(i)such rental
assistance contract and any extensions or renewal agreements thereof;
(ii)all leases
between the prior owner and tenants assisted under such contract; and
(iii)any use
agreement related to such contract in effect immediately before the foreclosure
or bankruptcy filing.
Any and
all successors in interest in such property shall assume such contract,
extensions or renewal agreements, leases, and related use agreement
obligations. In the case of a property converted from assistance under section
9, prior to the sale or other transfer of any ownership interest in such
property pursuant to a foreclosure or bankruptcy, the Secretary shall have a
first option to purchase, and the Secretary shall exercise such option or may
assign such option to a public entity purchaser that exercises such option in
accordance with implementing regulations pursuant to this subparagraph and
paragraph (19)(A)(iv). If the Secretary determines the property is not
physically viable, the Secretary may require the transfer of the contract for
assistance, including monthly assistance payments, and use agreement to one or
more other properties in accordance with the procedures and requirements of
subsection (m)(F)(ii).(19)Federal option
to purchase
(A)
(i)Opportunity for
purchase by SecretaryExcept as provided in clause (vi), an owner
of a covered property, as defined in clause (v), shall not sell the covered
property at any time before—
(I)providing notice
within the time periods and to the parties described in paragraph (17) of the
owner’s intent to sell the property; and
(II)offering the
Secretary the opportunity to purchase the property pursuant to clause (ii) of
this subparagraph.
(ii)Right of
Secretary to make offerUpon receipt of the notice required in
clause (i)(I), the Secretary shall have the right either to purchase the
property subject to terms and conditions established through regulation or to
select an assignee to act on behalf of the Secretary as the purchaser before
the owner enters into any agreement to sell to a third party. Failure by the
Secretary or the Secretary’s assignee to submit an offer to purchase the
property in compliance with the conditions specified in regulation shall
constitute an irrevocable waiver of the Secretary’s right under this
paragraph.
(iii)Relationship
with other lawsThe requirements of this paragraph are in
addition to, and not in lieu of, any State or local law that has established a
right of first refusal to preserve affordable housing.
(iv)The
Secretary shall issue regulations to carry out this paragraph, which
may—
(I)define such terms
as the Secretary determines necessary to facilitate the understanding of the
rights and obligations of the owner of the property, the Secretary, the
Secretary’s assignee, or tenants;
(II)address any
agreement that may be appropriate between the Secretary and the Secretary’s
assignee;
(III)provide for the
timing of any offer made by the Secretary to purchase the owner’s property and
the acceptance or refusal of the Secretary’s purchase offer; and
(IV)establish the
conditions for sale of a property to the Secretary.
(v)Properties covered by this paragraph include
properties with assistance converted pursuant to this subsection after
receiving assistance under subsection (e)(2) or section 9 of this Act, section
236(f)(2) of the National Housing Act (12 U.S.C. 1715z–1(f)(2)), or section 101
of the Housing and Urban Development Act of 1965 (12 U.S.C. 1701s). For other
converted properties, the Secretary and owner may agree to be bound by this
paragraph.
(vi)Inapplicability
of secretary’s right to purchaseClauses (i) through (v) of this
subparagraph shall not apply to any of the following actions:
(I)A government
taking of covered housing by eminent domain or a negotiated purchase in lieu of
eminent domain.
(II)A proposed
transfer of assistance from the property to another, subject to terms and
conditions established by the Secretary.
(B)For properties converted from assistance under section 9,
the Secretary shall provide a priority, first, to a public entity, and next to
a non-profit entity, including a tenant organization, in selecting an assignee
under this paragraph.
(C)For properties other than properties converted from
assistance under section 9, clauses (i) through (v) of subparagraph (A) shall
not apply to a proposed sale pursuant to terms and conditions that preserve
affordability, as determined by the Secretary.
(20)Financing of
properties with converted assistanceThe Secretary shall
establish policies and procedures governing the use of sound financing and
underwriting standards for properties with assistance converted under this
subsection, to ensure that such properties are financially sustainable for the
term of the assistance contract.
(21)To
the extent provided in advance in appropriations Acts, amounts obligated with
respect to a property under a rental assistance program, for years beyond the
fiscal year in which conversion of rental assistance under this subsection
takes place, shall be deobligated and collected by the Secretary.
(22)Rental
Assistance Conversion Trust Fund
(A)There
is established in the Treasury of the United States a fund to be known as the
Rental Assistance Conversion Trust Fund (in this paragraph
referred to as the Fund) for deposit of amounts, to be used for
the costs of the resident choice option under subsection (m)(1), of conversions
under this subsection, including the actions under paragraph (14)(B), and of
the exercise of the Secretary’s first option to purchase under paragraphs
(18)(B) and (19) of this subsection, from—
(i)to
the extent provided in advance in appropriations Acts, the collection of costs
as authorized by this subsection, which shall not exceed $100,000 per property
(or such other higher limit as the Secretary may establish after providing
public notice and an opportunity to comment), as may be necessary for payment
of expenses incurred by the Secretary in connection with assessing such
properties for conversion, including the costs of rental comparability studies
and physical needs and financial assessments, as the Secretary may require;
and
(ii)the amounts
deobligated and collected under paragraph (21).
(B)Amounts
in the Fund shall be available only to the extent provided in advance in
appropriations
Acts.
.
4.Section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f), as amended by the
preceding provisions of this Act, is further amended by inserting after
subsection (l) the following new subsection:
(m)
(1)The Secretary shall promote informed choice regarding
housing opportunities for families in dwelling units with rental assistance
converted under subsection (l) of this section by establishing procedures to
implement a resident choice option as follows:
(A)To extent of available resources, each low-income family
lawfully residing in a unit converted under subsection (l) may move at any time
after residing in the property for a period of not less than 24 months (which
period shall run from the date of the tenant’s initial occupancy or, if the
property is rehabilitated in conjunction with the conversion, from the date of
conversion or the tenant’s initial occupancy, whichever is later), or such
other period as provided in subsection (o)(13) or as determined by the
Secretary, and may continue to receive rental assistance that is subject to
policies comparable to those that apply to assistance under subsection (o)
concerning income, assistance, rent contribution, affordability, and other
policies as the Secretary may specify by regulation.
(B)A public housing agency administering a tenant-based
voucher program under subsection (o) whose property is selected for conversion
or that is selected to administer a rental assistance contract pursuant to
subsection (l) shall provide vouchers to low-income families lawfully residing
in units converted under subsection (l) who exercise their rights under the
resident choice option provided under subparagraph (A) as required by the
Secretary, but not more than one-third of the vouchers that become available
each year as a result of turnover may be used for such purpose.
(C)A public housing agency may establish a separate waiting
list for families eligible to exercise such resident choice option if demand
for vouchers exceeds one-third of turnover vouchers.
(2)Streamlining
rental assistance programsIn addition to the authority of the
Secretary under any other provision of law or as specified in this paragraph,
the Secretary may establish uniform policies and procedures governing
properties with rental assistance converted under subsection (l), including
policies and procedures with respect to the following:
(A)Tenant
organization rightsIn implementing the authority under this
paragraph with respect to tenants’ rights to organize, the Secretary shall
provide that—
(i)owners of
properties funded under a rental assistance program and public housing agencies
administering rental assistance shall not impede the reasonable efforts of
tenants to organize or of tenant organizations to represent their
members;
(ii)tenants and tenant organizations shall have
the right to hold meetings, including meetings concerning the formation of a
tenant organization, in a building receiving funding from a rental assistance
program;
(iii)property owners
and public housing agencies administering rental assistance under subsection
(l) shall recognize legitimate tenant organizations and give reasonable
consideration to concerns raised by legitimate tenant organizations;
(iv)properties with
only a portion of the units funded under a rental assistance program may, at
the option of the tenants of units with such assistance, have a single tenant
organization representing all tenants;
(v)a
tenant organization shall be considered legitimate if it meets regularly,
operates democratically, is broadly representative, is independent of the
public housing agency, owners, management, and their representatives, and has
been established—
(I)by the tenants in
a property funded under a rental assistance program administered by the
Secretary for purposes of addressing issues related to the tenants’ living
environment, which shall include the terms and conditions of their tenancy and
other issues as determined by the Secretary;
(II)by the
participants in a rental assistance program under subsection (o), for purposes
of addressing issues related to policies governing payment standards,
conditions of occupied units, or other discretionary policies and program
implementation issues; or
(III)through a
combination of tenant organizations, including jurisdiction-wide or area-wide
organizations; and
(vi)a
portion of funds made available for renewal of rental assistance shall be
allocated to tenant groups, non-profit organizations, or public entities to
facilitate tenants’ rights to organize; such amounts, which shall not be less
than the amount that would have been provided for such purposes under
previously applicable funding formulas if the properties had not converted
pursuant to subsection (l), may fund technical assistance and organizing
activities that empower residents to participate meaningfully in planning
processes and other activities related to improving or preserving the quality
of their housing, subject to such terms and conditions as the Secretary may
establish; allocation of funds to legitimate tenant organizations meeting the
requirements of clause (v) shall not require a competitive process.
(B)Applicant and
tenant procedural rights
(i)Applicants for, and tenants of, units with assistance
converted under subsection (l) or with assistance under subsection (o) shall be
timely notified of and provided the rights specified in this subparagraph upon
receiving notification of, including a statement of the specific grounds
for—
(I)ineligibility for
assistance or for admission to a unit assisted under this subsection;
(II)adverse actions
involving income determinations, tenant contributions, unit size, other
conditions of continuing eligibility, or such other issues as determined by the
Secretary; and
(III)eviction or
termination of assistance.
(ii)
(I)An applicant for, and a tenant of, a unit
with assistance converted under subsection (l) or with assistance under
subsection (o) may request a review of an action for which the applicant or
tenant receives notification pursuant to this subparagraph. Such request for a
review must be made within 30 days of receipt of any notice concerning
ineligibility for assistance or for admission to a unit assisted under this
section, or termination of assistance or eviction. For notices concerning any
other matter, such request for a review must be made within 10 days of receipt
of the notice or such longer time as the owner or agency, consistent with its
written administrative policies, may permit, and before the action may be
initiated or carried out.
(II)An applicant for, and a tenant of, a unit
with assistance converted under subsection (l) or with assistance under
subsection (o) may request a review within a reasonable period of time of any
agency or owner failure to act that has had a direct adverse impact on the
applicant or tenant.
(III)For any review
concerning an eviction or termination of tenancy that involves any activity
that threatens the health, safety, or right to peaceful enjoyment of the
premises of other tenants or employees of the owner or agency or any violent or
drug-related criminal activity on or off such premises, or any activity
resulting in a felony conviction, the agency or owner may establish an
expedited review procedure as the Secretary shall provide, or exclude from its
review procedure any such matter, in any jurisdiction which requires that prior
to eviction, a tenant be given a hearing in court, which the Secretary
determines provides the basic elements of due process. Such elements of due
process shall not include a requirement that the tenant be provided an
opportunity to examine relevant documents within the possession of the agency
or owner. The agency or owner shall provide to the tenant a reasonable
opportunity, prior to hearing or trial, to examine and obtain copies of any
relevant documents, records, or regulations directly related to the eviction or
termination.
(IV)The review shall
be conducted by a person or panel with authority to approve, amend, or withdraw
the action, but not the person, or a subordinate of the person, that made the
initial decision to take the action.
(V)The entity that made the decision for the
action or that failed to take an action for which a review is requested shall
permit a reasonable opportunity in advance of the review for the applicant or
tenant to inspect and obtain copies of documents claimed to support the action
or failure to act.
(VI)The applicant’s or tenant’s entire file
shall be made available for review by the applicant or tenant upon
request.
(VII)The applicant or
tenant may bring a representative to the review and such person may make
statements on the applicant’s or tenant’s behalf. The applicant or tenant shall
have the right to present evidence and arguments, to controvert evidence relied
on by the entity, and to confront and cross-examine any witness who testifies
at the review on behalf of the entity. The applicant or tenant may present
arguments as to why the agency or owner should not exercise discretionary
authority to undertake the action being challenged.
(VIII)A written
notice of the outcome of the review and the reasons in support of the outcome
shall be provided to the applicant or tenant and representative, if any. The
decision shall be based solely on the facts presented at the review.
(iii)The
reasonable costs, which shall not include attorney’s fees, of providing the
applicant and tenant rights under this subparagraph shall be considered
operating costs of a property.
(C)Nondiscrimination
and affirmatively furthering fair housing
(i)All programs and activities related to
providing or administering rental housing assistance, including admissions,
demolition or disposition, relocation, replacement, re-occupancy of housing
units, and transfer of any contracts for rental assistance, shall be conducted
in compliance with the civil rights laws and their implementing regulations,
including the Fair Housing Act (42 U.S.C. 3601 et seq.), title VI of the Civil
Rights Act of 1964 (42 U.S.C. 2000d et seq.), section 504 of the Rehabilitation
Act of 1973 (29 U.S.C. 794), and Executive Orders 11063 and 13166, and shall
not have the purpose or effect of discriminating against a tenant or
prospective tenant assisted under this subsection because of such person’s
receipt of a voucher under this section.
(ii)Affirmatively
furthering fair housingOwners and public housing agencies shall
conduct all rental housing assistance programs and activities funded by the
Secretary authorized under this Act, including admissions, demolition or
disposition, relocation, replacement, re-occupancy of housing units, and
transfer of any contracts for rental assistance, in a manner that affirmatively
furthers fair housing as required by section 808(e)(5) of the Fair Housing Act
(42 U.S.C. 3608(e)(5)).
(D)Administration
of rental assistanceIn implementing the authority under this
subsection with respect to the administration of rental assistance, the
Secretary may—
(i)facilitate the
implementation, by public housing agencies that administer tenant-based voucher
programs under subsection (o), of regional portability agreements, consortia,
and such other or additional methods of streamlining administration of vouchers
and other rental assistance on an area-wide basis as the Secretary determines
appropriate to promote greater efficiency in the use of resources and to
increase informed resident choice and mobility;
(ii)allocate funds to
administer contracts for properties converted under subsection (l) to entities
authorized to administer rental assistance under section 3(b)(6)(B) pursuant to
such conditions and procedures as the Secretary may establish by notice,
following an opportunity for comment. In awarding such funding, the Secretary
shall promote administrative efficiency and advance the policy of resident
choice as specified in paragraph (1) of this subsection; and
(iii)establish
mechanisms, procedures, and policies to initiate in a single location the
application process for all waiting lists for rental assistance programs
administered by the Secretary in a metropolitan or rural area and to minimize
the burdens on owners, public housing agencies, and applicants, including
through provision of technical assistance.
(E)Physical
condition standardsIn implementing the authority under this
subsection with respect to the inspection of properties, the Secretary may
establish or provide for the use of uniform physical condition
standards.
(F)
(i)Authority to
bring actionThe Secretary may commence any action in an
appropriate United States district court to obtain a monetary judgment or such
other relief, or both, as may be available with respect to a rental assistance
contract, an annual contributions contract, a use agreement, or any statute
other than the Fair Housing Act (42 U.S.C. 3601 et seq.), or regulation
applicable to any rental assistance program under the authority of the
Secretary or the property assisted under such program, or to protect or enforce
any obligation to, or right or requirement of, the Secretary under any such
contract, agreement, or law. The monetary judgment or other relief may, in the
court’s discretion, include the attorneys’ fees and other expenses incurred by
the Secretary in connection with the action.
(ii)Termination and
transfer of assistanceUpon repeated or continued violation of
applicable requirements, or upon substantial default of any covenants or
conditions of a use agreement or rental assistance contract by the owner of a
property with rental assistance, and following consultation with the primary
and subordinate mortgages of the property, if any, the Secretary may terminate
the rental assistance contract with such owner and, through a selection process
established by regulation, transfer the rental assistance by entering into a
new contract with the owner or owners of a property or properties that have the
capacity to accept all assisted tenants who choose to move to such properties
from the property that has had its assistance terminated. Assisted tenants that
do not choose to move to the replacement properties, or if replacement
properties are not available, shall be provided voucher assistance under
subsection (o), which may be funded initially by the remaining funds on the
terminated contract. No additional units of assistance under this section are
authorized to be created as a result of such termination and transfer.
(iii)Additional
equitable remediesNotwithstanding any other provision of law or
of any contract for contributions, upon the occurrence of events or conditions
that constitute a default by a public housing agency with which the Secretary
contracts for administration of rental assistance under this section with
respect to the covenants or conditions to which the public housing agency is
subject, the Secretary may—
(I)take possession of
properties solely owned by a public housing authority, rights or interests held
in connection with the program for rental assistance under this section,
including funds held by a depository, program receipts, and rights or interests
under a housing assistance payments contract with an owner;
(II)appoint a
receiver, which may be another public housing agency or other entity at the
Secretary's discretion regardless of jurisdictional limitations;
(III)transfer the
program to another public housing agency or other entity at the discretion of
the Secretary regardless of jurisdictional limitations;
(IV)seek the
establishment of one or more new public housing agencies; or
(V)require the agency
to make other arrangements acceptable to the Secretary for managing all or part
of the programs administered by the agency or other programs of the agency
under this section.
(iv)Notwithstanding any other provision of law, the
Secretary shall apply amounts collected under this subparagraph to the Rental
Assistance Conversion Trust Fund established under subsection (l)(22) or shall
authorize the owner of the property or project at issue in the action to use
the amounts, in accordance with the requirements of the Secretary, for the
improvement of such property or project.
(G)Resident access
to building information
(i)Upon a written request by a legitimate tenants’
organization meeting the requirements of subparagraph (A)(v) of this paragraph,
established with respect to a multifamily housing property covered under part
245 of the Secretary’s regulations (24 C.F.R. part 245) or assisted by a
contract that has been converted pursuant to subsection (l), by or through its
duly appointed designee or representative, the Secretary shall make available
to that organization designee or representative—
(I)information
identifying the legal entities that own and manage the property, including
identification of general partners and other principals;
(II)an annual
operating statement of profit and loss of the ownership and management entities
identified in subclause (I);
(III)any subsidy
contracts between the ownership entities and the Secretary, and related,
non-privileged correspondence between those ownership entities and the
Department of Housing and Urban Development;
(IV)any management
reviews of entities identified in subclause (I) that are conducted by the
Department of Housing and Urban Development and which may, pursuant to the
regulations of the Department of Housing and Urban Development, be publicly
disclosed; and
(V)an annual
statement, prepared by the Department’s contract administrator for the subject
property, of the balances of, and expenditures from, any replacement reserves
and other escrow funds for the property.
(ii)Protection of
informationSuch a request shall be subject to the applicability
of all laws and regulations governing proprietary information, privacy rights,
privileges and other established legal protections for individuals and
entities, and shall not be construed to limit or otherwise alter such laws,
regulations, rights, privileges, and protections, or to require disclosure of
Social Security numbers, personal tax returns, or any other personal financial
information of or concerning individuals who have an interest in the ownership
or management entities referred to in subclause (I) of clause (i).
(H)The Secretary may establish streamlined review and
compliance requirements for small or partially assisted properties, or both,
regardless of the form of assistance provided such properties under this
section.
(3)Authorization of
appropriationsThere is authorized to be appropriated for the
transformation of rental assistance, including conversions under subsection
(l), $350,000,000 for fiscal year 2011 and such sums as may be necessary for
each of fiscal years 2012, 2013, 2014, and 2015.
(4)The Secretary may allocate amounts for the
transformation of rental assistance under this subsection, including for a
portion of the funding of property-based and project-based voucher contracts,
the costs of administration of a property-based or project-based voucher
contract for a particular property, promotion of tenant organizing rights and
resident mobility (including of participants in the tenant-based voucher
program under subsection (o)), relocation assistance pursuant to subsection
(l)(9), efforts to affirmatively further fair housing, and expenses of
combining administrative components of local programs under subsection (o) by
competition or such other procedure the Secretary determines appropriate, upon
publication of notice in the Federal Register notice not later than 30 days
before such allocation is made. Except in the case of a competitive allocation,
if the method of allocation from year to year does not change, publication of a
new notice shall not be
required.
.
5.Section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f), as amended by the
preceding provisions of this Act, is further amended by inserting after
subsection (m) the following new subsection:
(n)
(1)Subject to the availability of amounts
provided in appropriations Acts and that otherwise become available, and to the
control of the Secretary of applicable accounts in the Treasury of the United
States, the Secretary may enter into a property-based housing assistance
payment contract with respect to a property converted pursuant to subsection
(l) or a replacement property, and may provide funds pursuant to such
conditions and procedures as the Secretary may establish for a public housing
agency to administer or assist in the administration of such property-based
contract.
(2)The Secretary may enter
into a multi-year property-based contract for assistance pursuant to this
subsection, subject to the availability of appropriations for each year of such
contract, for the following terms:
(A)
(i)A property-based
contract between the Secretary and the owner of a property assisted, prior to
conversion, under section 9 shall have an initial term of not fewer than 20
years.
(ii)A property-based
contract between the Secretary and the owner of any other property shall have a
term at least equal to the term remaining on the contract being converted to a
contract for rental assistance under this subsection, or may have a term of up
to 20 years, as determined by the Secretary.
(B)Contract
renewals and extensions
(i)Agreement to
extend or renewAt any time
during the term of a property-based contract, the Secretary may, at the request
of the owner, agree to extend or renew the property-based contract for up to a
20-year period beyond the initial contract term or the term of any renewal
contract subject to the availability of appropriations for each year of such
extension or renewal. In the initial contract or any renewal contract, the
Secretary and the owner may agree to have such extensions or renewals of the
property-based contract accepted by the owner and by the successors in interest
of the owner.
(ii)
(I)During the 2-year period before the
expiration of a property-based contract, the Secretary shall offer, and at the
request of the owner shall agree to, a renewal contract for a term of up to 20
years, subject to the requirements of subclause (II) and the availability of
appropriations for each year of such renewal.
(II)The Secretary shall not offer or agree to renew a
contract for the subject property—
- (aa)if
the Secretary determines, in consultation with the tenants and the local
government, that the property is obsolete as to physical condition, location,
or other factors that cannot be remedied with available Federal, State, and
local resources, making it unsuitable as low-income housing; or
- (bb)with an owner
that is debarred or suspended, or found to be in serious and repeated
noncompliance with applicable requirements established by the Secretary.
(III)An owner of a property converted from assistance
under section 9 shall accept all renewal contracts offered by the Secretary in
accordance with this subparagraph.
(C)
(i)At the request of an owner of a property with a
property-based contract that expires or otherwise terminates to renew such
expired or terminated contract in whole or in part, the Secretary shall,
subject to the requirements of subparagraph (B)(ii)(II), renew such contract if
eligible tenants in the property have not yet been issued tenant protection
vouchers and if the rental assistance formerly provided to the property has not
been transferred to another property or properties.
(ii)In the case of a partial renewal, the assistance not
renewed may be transferred to another property or properties or vouchers shall
be provided in accordance with subsection (k).
(3)Calculation of
rent to owner
(A)
(i)The Secretary shall
establish rents for each unit assisted under a property-based contract at the
level requested by the owner but not to exceed the rents derived from
comparable unassisted properties in the area, up to 110 percent of the
applicable area rental established by the Secretary or such higher amount
approved by the Secretary based on a determination by the Secretary that such
higher amount is cost-effective considering the need for affordable housing by
the types of households served by the property and the quality and location of
the property. For a property for which the Secretary has approved under the
Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note) a rent not in excess of the comparable rent at the time of such
approval, the Secretary shall establish rents for each unit assisted under a
property-based contract at the higher of the level most recently approved or
the rent established under the preceding sentence. Prior to the agreement to
enter into a contract under this subsection, the Secretary may approve upon an
owner’s request a lower rent than that permitted under this clause if such
lower rent is sufficient to meet the financial and physical sustainability
needs of the property.
(ii)
(I)The maximum monthly rent may exceed the rents
derived from comparable unassisted properties in the area upon a determination
by the Secretary that such exception rents are necessary to meet the financial
and physical sustainability needs of the property, and that—
- (aa)the
property is not, or after planned rehabilitation will not be, obsolete as to
physical condition, location, or other factors, making it unsuitable for
housing purposes; and
- (bb)a
reasonable program of property modifications in combination with rents
determined under this clause will be cost-effective to extend the useful life
of the property.
(II)The Secretary may not approve an exception above the
higher of 110 percent of the applicable area rental or 120 percent of the rent
for comparable unassisted properties in the area. The limitations of this
subclause shall not apply if the property was, prior to conversion of
assistance, subject to a rental assistance contract that has been renewed under
section 515 of the Multifamily Assisted Housing Reform and Affordability Act of
1997 (42 U.S.C. 1437f note) with rents established under section 514(g)(2) of
such Act that, at the time of conversion of assistance, exceed the limit
established in the preceding sentence.
(III)Consideration
of other fundsIn determining whether to allow an exception rent,
the Secretary shall consider the availability of unexpended funds that may be
used to reduce or eliminate the need for an exception rent.
(iii)Units exempt
from rent controlIf a unit
for which a property-based contract is established is exempt from local rent
control provisions during the term of such contract, the rent for that unit
shall be reasonable in comparison with other units in the area that are exempt
from local rent control provisions.
(B)A property-based
contract pursuant to this subsection shall provide for annual rent adjustments
using one or more indices established by the Secretary (which shall not result
in a negative adjustment) by notice published in the Federal Register to
reflect the change in the rents and costs of multifamily rental housing, except
that—
(i)the contract may provide that the maximum
rent permitted for a unit shall not be less than the initial rent for the unit
under the initial property-based contract under this subsection;
(ii)an owner may
request a rent increase above the index based on significant improvements to
the property, subject to limitations in subparagraph (A) and any additional
standards issued by the Secretary; and
(iii)the Secretary
may at any time, and at least every 5 years, compare the maximum rent to the
level of rents charged for comparable units in the private, unassisted local
market, and shall, if appropriate, decrease the contract rent, subject to the
limitations in clause (i) or any exception approved by the Secretary, and may,
if appropriate, increase the contract rent, subject to the limitations in
subparagraph (A) and clause (ii) of this subparagraph.
(C)Tax credit or
HOME projectsIn the case of
a unit receiving tax credits pursuant to section 42 of the Internal Revenue
Code of 1986 or for which assistance is provided under subtitle A of title II
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12741 et
seq.) for which a property-based contract is established under this subsection,
rent reasonableness shall be determined as otherwise provided by this
paragraph, except that comparison with rents for units in the private,
unassisted local market shall not be required if the rent is equal to or less
than the rent for other comparable units receiving such tax credits or
assistance in the project that are not occupied by families assisted under a
property-based contract.
(4)A family shall pay as rent for a unit assisted under
this subsection the amount determined in accordance with section 3 (42 U.S.C.
1437a).
(5)To be eligible to be a tenant for a unit assisted under
this subsection, a family shall, at the time a family initially receives
assistance under this subsection, be—
(A)a family lawfully
residing in a unit at the time of a conversion of assistance under subsection
(l); or
(B)a low-income
family meeting eligibility criteria specified by the Secretary that fulfill the
requirements under paragraphs (3) and (4) of section 16(c) (42 U.S.C.
1437n(c)).
(6)
(A)Subject to such
conditions as may be established by the Secretary, selection of tenants for
units assisted under a property-based contract under this subsection shall be
subject to the following:
(i)The owner shall select families for units assisted under such
a contract from a waiting list for applicants for housing assistance under this
subsection. If a property has rental assistance that has been converted under
subsection (l), any waiting list for the property prior to conversion shall
continue to apply after the conversion.
(ii)Delay due to
resident choice optionNotwithstanding clause (i), the Secretary
may establish policies to permit applicants on a tenant-based voucher waiting
list whose receipt of assistance is delayed due to the resident choice option
under subsection (m)(1) to exercise the option to be placed on a waiting list
for applicants for housing assistance under this subsection or subsection
(o)(13).
(iii)Maintenance of
waiting listAn owner may maintain a waiting list or may use a
waiting list maintained by a public housing agency on such terms and conditions
as agreed to by the owner and public housing agency and permitted by the
Secretary.
(iv)Single and
site-based waiting listsAn owner of more than one property, or a
public housing agency administering waiting lists for properties assisted under
this subsection, may maintain a single waiting list for all or some of such
properties or may establish a site-based waiting list for individual
properties. An owner or public housing agency shall disclose to each applicant
all other options in the selection of a property in which to reside that are
provided by the owner or administered by the public housing agency and are
available to the applicant. If a public housing agency administers site-based
waiting lists for more than one property assisted under this subsection, an
applicant may apply in a single location to all site-based waiting lists
maintained by such an entity.
(v)The
owner or the public housing agency administering the waiting list for the
property may establish preferences or criteria for tenant selection for a unit
that are consistent with the affordable housing needs established for the area
in which a property is located in the consolidated plan prepared pursuant to
part 91 of the Secretary’s regulations (24 C.F.R. part 91), or successor
regulations.
(vi)The
owner or the public housing agency administering the waiting list for the
property shall adopt affirmative marketing procedures and undertake affirmative
marketing activities. Such special outreach efforts shall be targeted to those
who are least likely to apply for the housing to ensure that all persons,
regardless of their race, color, national origin, religion, sex, disability, or
familial status, are aware of the housing opportunities in each of the owner’s
properties with rental assistance.
(vii)Compliance
with civil rights lawsAll procedures, preferences, and criteria
for waiting lists shall comply with title VI of the Civil Rights Act of 1964
(42 U.S.C. 2000d et seq.), the Fair Housing Act (42 U.S.C. 3601 et seq.),
section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), and other
applicable civil rights laws.
(B)Each property-based
contract entered into by the Secretary and an owner shall provide that the
screening and selection of families shall be the function of the owner.
(C)Prevention of
displacementAny family who resides in a unit proposed to be
assisted under this subsection, or in a unit to be replaced by a unit proposed
to be assisted under this subsection, shall be given an absolute preference for
selection for placement in the unit proposed to be assisted, if the family is
otherwise eligible for assistance under this subsection.
(7)Each property-based contract for a property converted
under subsection (l) shall provide that the lease between the tenant and the
owner—
(A)shall be for an
initial term of 1 year, automatically renewable at the expiration of each term,
and that the owner may terminate a tenancy only for serious or repeated
violations of the terms and conditions of the lease or for a violation of
applicable law;
(B)shall comply with
subsection (c)(9); and
(C)shall contain
provisions required by the Secretary and State and local law.
(8)
(A)For each property with assistance converted under this
subsection, the owner may receive, as permitted by the Secretary, for a
reasonable period not exceeding 60 days, vacancy payments for a unit that
becomes vacant, but only if—
(i)the vacancy was
not the fault of the owner of the dwelling unit; and
(ii)the owner has
taken and continues to take every reasonable action to minimize the likelihood
and extent of any such vacancy.
(B)Rental
assistance may not be provided for a vacant unit after the expiration of the
60-day period specified in subparagraph (A).
(C)Prohibition of
double compensation for vacanciesIf the owner collects payments
for vacancies from other sources, the owner shall not be entitled to collect
vacancy payments to the extent these collections from other sources plus the
vacancy payment exceed contract rent.
(9)Physical
inspections of properties
(A)The Secretary shall, for each property
receiving assistance under this subsection, provide for inspections during the
term of the property-based contract to determine whether the property is
maintained in accordance with the physical condition standards established or
provided by the Secretary under subsection (m)(2)(E). The schedule of the
inspections shall be determined by the Secretary.
(B)The Secretary may take such actions as provided by law
or contract to enforce and maintain compliance with applicable inspection
standards.
(C)The
owner 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 of the Department of Housing and Urban Development, and any auditor
conducting an audit under section 5(h) (42. U.S.C. 1437c(h)).
(D)State and local
inspectionsFor purposes of meeting the requirement under
subparagraph (A), the Secretary may accept inspection results from inspections
conducted by a State or locality or a program funded or administered by a State
or locality if such inspection employs standards equivalent to or exceeding the
physical condition standards established by the Secretary. Such reserve
requirements shall vary based on the anticipated physical needs of the
property.
(10)
(A)An owner of a property with rental assistance under
this subsection shall comply with operating and replacement reserve
requirements established by the Secretary.
(B)The Secretary may establish standards for the cash
flow of a property, including standards applicable upon suspension, expiration,
or termination of rental assistance, with assistance under this subsection. Any
access to cash flow shall not be limited based on the tax status of the
property owner or project sponsor or whether the property was formerly assisted
under section 9.
(11)Expiration or
termination of contract or use agreement
(A)In the case of a
property-based contract that is no longer in effect and the property is no
longer subject to a use agreement, in whole or in part, to the extent that
amounts are provided in advance in appropriation Acts, upon the date of
expiration of such contract or use agreement, whichever is later, the Secretary
shall make voucher assistance under subsection (t), or in the case of a
contract that expires or is terminated because it does not meet the
requirements of paragraph (2)(B)(ii)(II) of this subsection, voucher assistance
under subsection (o), available on behalf of each low-income family who, upon
the date of such expiration, is residing in an assisted dwelling unit in the
property, and shall, subject to the availability of appropriations, provide
replacement vouchers under subsection (o) for any vacant units subject to the
contract at the time of expiration or termination.
(B)In lieu of providing vouchers pursuant to subparagraph
(A) when a contract expires or is terminated, the Secretary may, following
notice and consultation by the Secretary with tenants as provided in subsection
(l)(3)(E)(i), transfer assistance from a contract that is not renewed in whole
or in part to a new contract with another property or properties, and in the
case of a property converted from assistance under section 9, shall transfer
such assistance to a new contract with another property or properties with
priority for a public entity owner, followed by a priority for a non-profit
entity owner.
(12)The owner of a property assisted under this subsection
shall provide the Secretary an annual financial report of the property,
prepared and submitted in accordance with the requirements of the Secretary,
which may include certification by the owner, a certified public accountant, or
other person acceptable to the
Secretary.
.
6.Project-based
voucher contractsParagraph
(13) of section 8(o) of the United States Housing Act of 1937 (42 U.S.C.
1437f(o)(13)) is amended—
(1)by striking
structure
each place such term appears and inserting
project
;
(2)by striking
subparagraph (B) and inserting the following new subparagraph:
(B)
(i)Subject to clauses (ii) and (iii), not more than 20
percent of the dwelling units assisted by the agency under this subsection may
be assisted with project-based assistance under this paragraph.
(ii)Up
to an additional 5 percent of the dwelling units assisted by an agency under
this subsection may be assisted with project-based assistance under this
paragraph to provide 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), that provide supportive housing to
elderly persons or persons with disabilities, or that are located in areas
where vouchers under this subsection are difficult to use, as specified in
subparagraph (D)(ii)(II). The Secretary may, by regulation, establish
additional categories for the exception under this clause.
(iii)Exception for
projects converted under subsection
(l)An agency administering
project-based assistance under this paragraph pursuant to a conversion under
subsection (l) may attach project-based assistance under this paragraph to up
to 40 percent of the dwelling units assisted by the agency under this
subsection, but in no event may an agency attach project-based assistance
through means other than conversion to more than the share of units permitted
by clauses (i) and (ii) of this
subparagraph.
;
(3)by striking
subparagraph (D) and inserting the following new subparagraph:
(D)Income mixing
requirement
(i)Except as provided in clause (ii), of the dwelling units
in any project, not more than the greater of 25 units or 25 percent of the
units 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)
(I)The limitation under clause (i) shall not apply to
dwelling units assisted under a contract that are exclusively made available to
elderly families or to households eligible for comprehensive social services
that are made available to residents of the property. The Secretary may
establish additional requirements for the monitoring and oversight of projects
in which more than 40 percent of the dwelling units are assisted.
(II)With respect to areas in which tenant-based vouchers are
difficult to use, as determined by the Secretary, and with respect to census
tracts with a poverty rate of 20 percent or less, clause (i) shall be applied
by substituting 40 percent
for 25 percent
and the
Secretary may, by regulation, establish additional conditions.
(III)Exception for
projects converted under subsection
(l)In the case of a project
assisted under this paragraph pursuant to a conversion under subsection (l),
the exception in subclause (I) shall apply to not more than 40 percent of the
dwelling
units.
;
(4)by striking
subparagraph (F) and inserting the following new subparagraph:
(F)A housing assistance payment contract pursuant to this
paragraph between a public housing agency and the owner of a project may have a
term of up to 20 years, subject to—
(i)the availability
of sufficient appropriated funds for the purpose of renewing expiring contracts
for assistance payments, as provided in appropriations Acts and in the agency’s
annual contributions contract with the Secretary: Provided,
That in the event of insufficient appropriated funds, payments due under
contracts under this paragraph shall take priority if other cost-saving
measures that do not require the termination of an existing contract are
available to the agency; and
(ii)compliance with
the inspection requirements under paragraph (8), except that the Secretary may
modify the application of paragraph (8) to properties assisted under this
paragraph, through actions including permitting inspection of a sample of
dwelling units in a project, avoiding duplicative requirements, and
incentivizing high performance.
The
contract may specify additional conditions, including with respect to
continuation, termination, or
expiration.;
(5)in subparagraph
(G)—
(A)in the second
sentence, by striking 15
and inserting 20
;
(B)in the last
sentence, by inserting extension
after enter into such a
contract
;
(C)by striking the
(G) Extension of
contract term.—A public housing agency may enter into a
contract
and inserting the following:
(G)Extension of
contract term
(i)A public housing
agency may enter into a contract
extension
;
and
(D)by adding at the
end the following new clause:
(ii)In the case of projects converted from other forms of
rental assistance pursuant to subsection (l), a public housing agency may
decline to offer to extend the term of the underlying housing assistance
payment contract for the maximum period permitted under clause (i) of this
subparagraph only with the advance approval of the Secretary. The Secretary may
grant approval to not extend a contract only—
(I)if the property is
obsolete as to physical condition, location, or other factors which cannot be
remedied with available Federal, State, and local resources, making it
unsuitable as low-income housing;
(II)with an owner
that is debarred or suspended, or found in to be in serious and repeated
noncompliance with applicable requirements established by the Secretary;
or
(III)if no funding is
available that can be used for such
extensions.
;
(6)in subparagraph
(H)—
(A)in the first
sentence, by striking (or any exception payment standard approved by the
Secretary pursuant to paragraph (1)(D)),
and inserting (or any
exception payment standard approved by the Secretary for the area pursuant to
paragraph (1)(D) or for the project),
;
(B)by striking (H)
Rent
calculation.—A housing
and inserting the
following:
(H)
(i)A
housing
;
and
(C)by adding at the
end the following new clause:
(ii)Tenants
over-income for continuing subsidySubsection (l)(11) shall apply
to all contracts under this paragraph, except that the public housing agency
and the owner may agree to retain the number of dwelling units subject to a
contract for assistance under this subparagraph, subject to policies issued by
the
Secretary.
;
(7)by striking
subparagraph (I) and inserting the following new subparagraph:
(I)
(i)A housing assistance payment contract pursuant to this
paragraph shall provide for reasonable rent adjustments if requested by the
owner, except that—
(I)the adjusted rent
for any unit assisted shall be reasonable in comparison with rents charged for
comparable dwelling units in the private, unassisted, local market and may not
exceed the maximum rent permitted under subparagraph (H); and
(II)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.
(ii)Scheduled rent
adjustmentsA housing assistance payment contract pursuant to
this paragraph may, at the discretion of the Secretary, provide for annual rent
adjustments using an index determined by the Secretary for adjustment of
contracts under subsection (n). Such a contract shall provide that—
(I)an owner may
request a rent increase above the index based on significant improvements to
the project, subject to limitations in subparagraph (H) of this paragraph and
any additional standards issued by the Secretary; and
(II)the public
housing agency shall, at least every 5 years, compare the maximum rent to the
level of rents charged for comparable dwelling units in the private, unassisted
local market, and shall, if appropriate, decrease the contract rent, subject to
the limitations in clause (i) or any exception approved by the Secretary, and
may, if appropriate, increase the contract rent, subject to the limitations in
subparagraph (H).
;
(8)in subparagraph
(J)—
(A)by striking the
last two sentences;
(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 unit proposed 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.
;
(C)by striking (J)
Tenant
selection.—A public housing agency
and inserting the
following:
(J)
(i)A public housing
agency
;
and
(D)by adding at the
end the following new clause:
(ii)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 eligible
applicants on the waiting list of an agency for assistance under this
subsection shall be permitted to place their names on such separate lists,
subject to policies and procedures specified by the Secretary. All such
procedures shall comply with title VI of the Civil Rights Act of 1964 (42
U.S.C. 42 U.S.C. 2000d et seq.), the Fair Housing Act (42 U.S.C. 3601 et seq.),
section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), and other
applicable civil rights laws. The owner or manager of a project 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 disclose to each applicant all other options in the selection of a
project in which to reside that are provided by the public housing agency and
are available to the
applicant.
;
(9)in subparagraph
(K)(ii) by striking the owner has notified the agency of the
vacancy
and inserting the unit has become vacant
;
and
(10)by adding at the
end the following new subparagraphs:
(N)Notwithstanding any other provision of law, for the term
of the contract under this paragraph, the owner may terminate a tenancy only
for serious or repeated violations of the terms and conditions of the lease or
for violation of applicable law.
(O)Properties in
foreclosure or bankruptcyNotwithstanding any provision of
Federal or State law, for all properties assisted under this paragraph on or
after May 20, 2009, the provision of subsection (l)(18)(B) shall apply.
(P)Conversion from
project-based voucher contract to property-based contractA
property assisted under this paragraph (in this subparagraph referred to as a
project-based voucher contract) may convert to a property-based
housing assistance payment contract under subsection (n) (in this subparagraph
referred to as a property-based contract) at the request of the
owner of the property and at the discretion of, and upon approval by, the
Secretary if the property meets the applicable requirements under subsection
(n), subject to the following requirements:
(i)Contracts
resulting from conversionIf
the project-based voucher contract resulted from a conversion under subsection
(l), the Secretary, upon approval of the request to convert to a property-based
contract, shall reduce the annual contributions contract under this subsection
of the public housing agency administering the project-based voucher contract
by the appropriate number of units and related funding, and transfer the
funding to the entity administering the project-based contract.
(ii)Contracts not
resulting from conversionIf
the project-based voucher contract did not result from a conversion under
subsection (l), and the public housing agency has not breached its contractual
obligations concerning the property, the Secretary may approve the request only
with the agreement of the public housing agency administering the project-based
voucher contract to the reduction of its annual contributions contract under
this subsection by the appropriate number of units and related funding.
(Q)Conversion from
tenant-based vouchers to property-based contractA property with
units assisted under this subsection or subsection (t) may convert to a
property-based housing assistance payment contract under subsection (n) (in
this subparagraph referred to as a property-based contract),
rather than to assistance under this paragraph, at the request of the owner of
the property and agreement of the public housing agency and at the discretion
of, and upon approval by, the Secretary if the property meets the applicable
requirements under subsection (n), subject to the following
requirements:
(i)Reduction of
annual contributions contractThe Secretary, upon approval of the
request to convert to a property-based contract, shall reduce the annual
contributions contract of the public housing agency administering the
tenant-based vouchers by the appropriate number of units and related funding,
and transfer the funding to the entity administering the project-based
contract.
(ii)Tenants in units with assistance converted under this
subparagraph shall be provided with a resident choice option as provided for in
subsection (m)(1).
(iii)Treatment of
limitation on tenant-based vouchersThe percentage limitation on
a public housing agency’s tenant-based vouchers converted to property-based
assistance under subparagraph (B)(iii) shall include vouchers converted under
this subparagraph.
(iv)Conversion under this subparagraph shall be considered
a substantial amendment to the public housing agency’s plan under section
5A(g).
(v)Consultation
with residentsThe owner of the property shall comply with the
requirements established by the Secretary pursuant to subsection (l)(2)(E)(i)
for consultation with residents about the owner’s intention to apply for
conversion under this
subparagraph.
.
7.
(a)Subparagraph
(B) of section 3(b)(6) of the United States Housing Act of 1937 (42 U.S.C.
1437a(b)(6)(B)) is amended—
(1)by striking
tenant-based
each place such term appears;
(2)in the
subparagraph heading, by striking program
and inserting
programs
;
(3)and in the matter preceding clause (i), by
striking program
and inserting programs
;
and
(4)by striking
clauses (i) and (ii) and inserting the following:
(i)any State, county,
municipality, or other governmental entity or public body, or an agency or
instrumentality of such an entity, and a non-profit entity, that has the
capability to administer a program for assistance under such section in an
efficient manner and, notwithstanding any provision of State or local law,
without regard to any otherwise applicable limitations on its area of
operation, as determined by the Secretary;
(ii)a
consortium of public housing agencies, which shall have a legal entity or
entities authorized to act as the legal representative of the consortium
members;
and
.
(b)Paragraph (1) of section 8(q) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(q)(1)) is amended by adding at the end the
following new subparagraph:
(F)Conversion
rental assistance administratorThe Secretary may establish and
allocate a fee, as determined by the Secretary, for the administration of the
rental assistance for properties converted to a project-based voucher contract
under subsection
(l).
.
(c)Renewal of
mainstream tenant-Based rental assistance program through section 8 voucher
program
(1)Subsection (d) of section 811 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 8013(d)) is amended by striking
paragraph (4) and inserting the following new paragraph:
(4)Tenant-based
rental assistance
(A)Tenant-based rental assistance provided under subsection
(b)(1) shall be provided under section 8(o) of the United States Housing Act of
1937 (42 U.S.C. 1437f(o)).
(B)Conversion of
existing assistanceThere is
authorized to be appropriated for tenant-based rental assistance under section
8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)) for persons
with disabilities, an amount not less than the amount necessary to convert the
number of authorized vouchers and funding under an annual contributions
contract in effect on the date of enactment of the
Rental Housing Revitalization Act of
2010. Such converted vouchers may be administered by the entity
administering the vouchers prior to conversion. Such entities shall be
considered a public housing agency authorized to engage in the operation of
tenant-based assistance under such section 8(o).
(C)Requirements
upon turnoverThe Secretary shall develop and issue, to public
housing agencies that receive voucher assistance made available under this
subsection and to public housing agencies that received voucher assistance
under section 8(o) of the United States Housing Act of 1937 (42 U.S.C.
1437f(o)) for non-elderly disabled families pursuant to appropriation Acts for
fiscal years 1997 through 2002 or any other subsequent appropriations for
incremental vouchers for non-elderly disabled families, guidance to ensure that
such vouchers continue to be provided upon turnover to qualified persons with
disabilities or to qualified non-elderly disabled families,
respectively.
.
(2)Unexpended amounts made available in prior year
appropriations Acts for the Department of Housing and Urban Development under
the heading Housing for Persons with Disabilities
or the heading
Housing for Special Populations
for contracts under section 811
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013) shall
be available until expended for renewal of vouchers converted under section
811(d)(4)(B) of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 8013(d)(4)(B)), as amended by paragraph (1) of this subsection,
notwithstanding the period of availability for such amounts established in such
prior appropriations Acts. The Secretary may reallocate such amounts to
administering entities for the purpose of establishing a reserve in an amount
determined by the Secretary up to the amount as may be otherwise established by
law.
(3)The Secretary of Housing and Urban Development may, to
the extent amounts are made available in appropriations Acts, provide technical
assistance to public housing agencies and other administering entities to
facilitate using vouchers to provide permanent supportive housing for persons
with disabilities, to assist States to reduce reliance on segregated
restrictive settings for people with disabilities to meet community care
requirements, to end chronic homelessness (as chronically
homeless
is defined in section 401 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11361)), and for other related purposes.
(d)Paragraph (6) of section 16(c) (42 U.S.C.
1437n(c)(6)) is amended by adding at the end the following new
subparagraph:
(H)The property-based
contract program under section
8(n).
.
(e)Section 29 of the United States Housing Act of 1937
(42 U.S.C. 1437z–1) is amended—
(1)in subsection
(b)—
(A)in paragraph
(1)—
(i)in
subparagraph (B), by striking and
after the semicolon;
(ii)in
subparagraph (C) by striking that has an identity of interest with the
owner or the general partner of a partnership owner of the property;
and inserting ; and
; and
(iii)by
adding at the end the following new subparagraph:
(D)any member of a
limited liability company that is the owner of such property or is the general
partner of a limited partnership owner or is a partner of a general partnership
owner.
;
(B)in paragraph
(2)—
(i)in
the matter preceding subparagraph (A) by inserting or use
agreement,
before the comma;
(ii)in
subparagraph (A), by striking or
at the end;
(iii)in
subparagraph (B), by striking the period at the end and inserting a semicolon;
and
(iv)by
adding at the end the following new subparagraphs:
(C)failure of an
owner of a property receiving project-based assistance under section 8 to
submit an annual audited financial statement to the Secretary in the form and
manner established by the Secretary;
(D)failure of an
owner of a property receiving project-based assistance under section 8 to
provide management for the property that is acceptable to the Secretary
pursuant to regulations and requirements of the Secretary, including—
(i)proper fiscal
management;
(ii)proper handling
of vacancies and tenanting in accordance with regulations set forth by the
Secretary;
(iii)appropriate
handling of rent collection;
(iv)proper property
maintenance; and
(v)compliance with
regulations set forth by the Secretary on tenant organization;
(E)failure to provide
access to the books, records, and accounts related to the operations of the
project; or
(F)failure to permit
physical access to the property or any unit of the
property.
;
and
(C)in paragraph (3),
by striking $25,000
and inserting $37,500
;
and
(2)in subsection
(c)(1)—
(A)by redesignating
subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively;
and
(B)by inserting after
subparagraph (A) the following new subparagraph:
(B)shall provide the
Secretary the discretion to investigate any facts, conditions, practices, or
matters that may be deemed necessary or proper to aid in the enforcement of the
provisions of this Act; to aid in the investigations, the Secretary may hold
such hearings, administer such oaths, and require by subpoena the attendance
and testimony of such witnesses and production of such documents as the
Secretary deems advisable, and such subpoena authority shall include the
authority to require the attendance of any witness and the production of
documentary evidence from any place in the United States at any designated
place of hearing; any district court of the United States within the
jurisdiction of which an inquiry is carried on may, in the case of contumacy or
refusal to obey a subpoena of the Secretary issued under this section, issue an
order requiring compliance therewith; any failure to obey such order of the
court may be punished by such court as a contempt
thereof;
;
and
(3)in subsection (g),
by striking paragraph (1) and inserting the following new paragraph:
(1)Notwithstanding any other provision of law, the Secretary
shall apply civil money penalties collected under this section to the Rental
Assistance Conversion Trust Fund, established under section 8(l)(21), or shall
authorize the owner of the property or project at issue in the penalty action
to use the penalty funds, in accordance with the requirements of the Secretary,
for the improvement of that property or
project.
.
(f)Amendments to
section 3 of the Housing and Urban Development Act of
1968Subsection (c) of section 3 of the Housing and Urban
Development Act of 1968 (12 U.S.C. 1701u(c)) is amended—
(1)in paragraph
(1)—
(A)by striking the
paragraph designation and all that follows through (A)
In
general.—The Secretary
and inserting the
following:
(1)Public and
Indian housing programsThe
Secretary
;
and
(B)by striking
subparagraph (B);
(2)in paragraph
(2)—
(A)by striking the
paragraph designation and all that follows through (A)
In
general.—In other
and inserting the following:
(1)In
other
;
and
(B)by striking
subparagraph (B); and
(3)by adding at the
end the following new paragraphs:
(3)The
efforts required under paragraphs (1) and (2) of this subsection shall be
directed in the following order of priority:
(A)First, to
recipients of Federal rental assistance, including public housing residents,
residents of other federally subsidized properties, or participants in the
program under section 8(o) of the U.S. Housing Act in the service area and
metropolitan area (or non-metropolitan county).
(B)Next, to low- and
very low-income residents in the service area and metropolitan area (or
non-metropolitan county).
(C)Next, to other
residents, as designated by the Secretary by regulation.
(4)For
properties with rental assistance converted under section 8(l) of the United
States Housing Act of 1937, the requirements of paragraphs (1)(A) and (2)(A) of
this subsection, as in effect immediately before the enactment of the
Rental Housing Revitalization Act of
2010, shall continue to
apply.
.