[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3700 Enrolled Bill (ENR)]
H.R.3700
One Hundred Fourteenth Congress
of the
United States of America
AT THE SECOND SESSION
Begun and held at the City of Washington on Monday,
the fourth day of January, two thousand and sixteen
An Act
To provide housing opportunities in the United States through
modernization of various housing programs, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Housing
Opportunity Through Modernization Act of 2016''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
TITLE I--SECTION 8 RENTAL ASSISTANCE AND PUBLIC HOUSING
Sec. 101. Inspection of dwelling units.
Sec. 102. Income reviews.
Sec. 103. Limitation on public housing tenancy for over-income families.
Sec. 104. Limitation on eligibility for assistance based on assets.
Sec. 105. Units owned by public housing agencies.
Sec. 106. PHA project-based assistance.
Sec. 107. Establishment of fair market rent.
Sec. 108. Collection of utility data.
Sec. 109. Public housing Capital and Operating Funds.
Sec. 110. Family unification program for children aging out of foster
care.
Sec. 111. Public housing heating guidelines.
Sec. 112. Use of vouchers for manufactured housing.
Sec. 113. Preference for United States citizens or nationals.
Sec. 114. Exception to public housing agency resident board member
requirement.
TITLE II--RURAL HOUSING
Sec. 201. Delegation of guaranteed rural housing loan approval.
Sec. 202. Guaranteed underwriting user fee.
TITLE III--FHA MORTGAGE INSURANCE FOR CONDOMINIUMS
Sec. 301. Modification of FHA requirements for mortgage insurance for
condominiums.
TITLE IV--HOUSING REFORMS FOR THE HOMELESS AND FOR VETERANS
Sec. 401. Definition of geographic area for Continuum of Care Program.
Sec. 402. Inclusion of public housing agencies and local redevelopment
authorities in emergency solutions grants.
Sec. 403. Special assistant for Veterans Affairs in the Department of
Housing and Urban Development.
Sec. 404. Annual supplemental report on veterans homelessness.
Sec. 405. Reopening of public comment period for continuum of care
program regulations.
TITLE V--MISCELLANEOUS
Sec. 501. Inclusion of Disaster Housing Assistance Program in certain
fraud and abuse prevention measures.
Sec. 502. Energy efficiency requirements under Self-Help Homeownership
Opportunity program.
Sec. 503. Data exchange standardization for improved interoperability.
TITLE VI--REPORTS
Sec. 601. Report on interagency family economic empowerment strategies.
TITLE VII--HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS
Sec. 701. Formula and terms for allocations to prevent homelessness for
individuals living with HIV or AIDS.
TITLE I--SECTION 8 RENTAL ASSISTANCE AND PUBLIC HOUSING
SEC. 101. INSPECTION OF DWELLING UNITS.
(a) In General.--Section 8(o)(8) of the United States Housing Act
of 1937 (42 U.S.C. 1437f(o)(8)) is amended--
(1) by striking subparagraph (A) and inserting the following
new subparagraph:
``(A) Initial inspection.--
``(i) In general.--For each dwelling unit for which a
housing assistance payment contract is established under
this subsection, the public housing agency (or other entity
pursuant to paragraph (11)) shall inspect the unit before
any assistance payment is made to determine whether the
dwelling unit meets the housing quality standards under
subparagraph (B), except as provided in clause (ii) or
(iii) of this subparagraph.
``(ii) Correction of non-life-threatening conditions.--
In the case of any dwelling unit that is determined,
pursuant to an inspection under clause (i), not to meet the
housing quality standards under subparagraph (B),
assistance payments may be made for the unit
notwithstanding subparagraph (C) if failure to meet such
standards is a result only of non-life-threatening
conditions, as such conditions are established by the
Secretary. A public housing agency making assistance
payments pursuant to this clause for a dwelling unit shall,
30 days after the beginning of the period for which such
payments are made, withhold any assistance payments for the
unit if any deficiency resulting in noncompliance with the
housing quality standards has not been corrected by such
time. The public housing agency shall recommence assistance
payments when such deficiency has been corrected, and may
use any payments withheld to make assistance payments
relating to the period during which payments were withheld.
``(iii) Use of alternative inspection method for
interim period.--In the case of any property that within
the previous 24 months has met the requirements of an
inspection that qualifies as an alternative inspection
method pursuant to subparagraph (E), a public housing
agency may authorize occupancy before the inspection under
clause (i) has been completed, and may make assistance
payments retroactive to the beginning of the lease term
after the unit has been determined pursuant to an
inspection under clause (i) to meet the housing quality
standards under subparagraph (B). This clause may not be
construed to exempt any dwelling unit from compliance with
the requirements of subparagraph (D).'';
(2) by redesignating subparagraph (G) as subparagraph (H); and
(3) by inserting after subparagraph (F) the following new
subparagraph:
``(G) Enforcement of housing quality standards.--
``(i) Determination of noncompliance.--A dwelling unit
that is covered by a housing assistance payments contract
under this subsection shall be considered, for purposes of
subparagraphs (D) and (F), to be in noncompliance with the
housing quality standards under subparagraph (B) if--
``(I) the public housing agency or an inspector
authorized by the State or unit of local government
determines upon inspection of the unit that the unit
fails to comply with such standards;
``(II) the agency or inspector notifies the owner
of the unit in writing of such failure to comply; and
``(III) the failure to comply is not corrected--
``(aa) in the case of any such failure that is
a result of life-threatening conditions, within 24
hours after such notice has been provided; and
``(bb) in the case of any such failure that is
a result of non-life-threatening conditions, within
30 days after such notice has been provided or such
other reasonable longer period as the public
housing agency may establish.
``(ii) Withholding of assistance amounts during
correction.--The public housing agency may withhold
assistance amounts under this subsection with respect to a
dwelling unit for which a notice pursuant to clause
(i)(II), of failure to comply with housing quality
standards under subparagraph (B) as determined pursuant to
an inspection conducted under subparagraph (D) or (F), has
been provided. If the unit is brought into compliance with
such housing quality standards during the periods referred
to in clause (i)(III), the public housing agency shall
recommence assistance payments and may use any amounts
withheld during the correction period to make assistance
payments relating to the period during which payments were
withheld.
``(iii) Abatement of assistance amounts.--The public
housing agency shall abate all of the assistance amounts
under this subsection with respect to a dwelling unit that
is determined, pursuant to clause (i) of this subparagraph,
to be in noncompliance with housing quality standards under
subparagraph (B). Upon completion of repairs by the public
housing agency or the owner sufficient so that the dwelling
unit complies with such housing quality standards, the
agency shall recommence payments under the housing
assistance payments contract to the owner of the dwelling
unit.
``(iv) Notification.--If a public housing agency
providing assistance under this subsection abates rental
assistance payments pursuant to clause (iii) with respect
to a dwelling unit, the agency shall, upon commencement of
such abatement--
``(I) notify the tenant and the owner of the
dwelling unit that--
``(aa) such abatement has commenced; and
``(bb) if the dwelling unit is not brought into
compliance with housing quality standards within 60
days after the effective date of the determination
of noncompliance under clause (i) or such
reasonable longer period as the agency may
establish, the tenant will have to move; and
``(II) issue the tenant the necessary forms to
allow the tenant to move to another dwelling unit and
transfer the rental assistance to that unit.
``(v) Protection of tenants.--An owner of a dwelling
unit may not terminate the tenancy of any tenant because of
the withholding or abatement of assistance pursuant to this
subparagraph. During the period that assistance is abated
pursuant to this subparagraph, the tenant may terminate the
tenancy by notifying the owner.
``(vi) Termination of lease or assistance payments
contract.--If assistance amounts under this section for a
dwelling unit are abated pursuant to clause (iii) and the
owner does not correct the noncompliance within 60 days
after the effective date of the determination of
noncompliance under clause (i), or such other reasonable
longer period as the public housing agency may establish,
the agency shall terminate the housing assistance payments
contract for the dwelling unit.
``(vii) Relocation.--
``(I) Lease of new unit.--The agency shall provide
the family residing in such a dwelling unit a period of
90 days or such longer period as the public housing
agency determines is reasonably necessary to lease a
new unit, beginning upon termination of the contract,
to lease a new residence with tenant-based rental
assistance under this section.
``(II) Availability of public housing units.--If
the family is unable to lease such a new residence
during such period, the public housing agency shall, at
the option of the family, provide such family a
preference for occupancy in a dwelling unit of public
housing that is owned or operated by the agency that
first becomes available for occupancy after the
expiration of such period.
``(III) Assistance in finding unit.--The public
housing agency may provide assistance to the family in
finding a new residence, including use of up to two
months of any assistance amounts withheld or abated
pursuant to clause (ii) or (iii), respectively, for
costs directly associated with relocation of the family
to a new residence, which shall include security
deposits as necessary and may include reimbursements
for reasonable moving expenses incurred by the
household, as established by the Secretary. The agency
may require that a family receiving assistance for a
security deposit shall remit, to the extent of such
assistance, the amount of any security deposit refunds
made by the owner of the dwelling unit for which the
lease was terminated.
``(viii) Tenant-caused damages.--If a public housing
agency determines that any damage to a dwelling unit that
results in a failure of the dwelling unit to comply with
housing quality standards under subparagraph (B), other
than any damage resulting from ordinary use, was caused by
the tenant, any member of the tenant's household, or any
guest or other person under the tenant's control, the
agency may waive the applicability of this subparagraph,
except that this clause shall not exonerate a tenant from
any liability otherwise existing under applicable law for
damages to the premises caused by such tenant.
``(ix) Applicability.--This subparagraph shall apply to
any dwelling unit for which a housing assistance payments
contract is entered into or renewed after the date of the
effectiveness of the regulations implementing this
subparagraph.''.
(b) Effective Date.--The Secretary of Housing and Urban Development
shall issue notice or regulations to implement subsection (a) of this
section and such subsection shall take effect upon such issuance.
SEC. 102. INCOME REVIEWS.
(a) Income Reviews for Public Housing and Section 8 Programs.--
Section 3 of the United States Housing Act of 1937 (42 U.S.C. 1437a) is
amended--
(1) in subsection (a)--
(A) in the second sentence of paragraph (1), by striking
``at least annually'' and inserting ``pursuant to paragraph
(6)''; and
(B) by adding at the end the following new paragraphs:
``(6) Reviews of family income.--
``(A) Frequency.--Reviews of family income for purposes of
this section shall be made--
``(i) in the case of all families, upon the initial
provision of housing assistance for the family;
``(ii) annually thereafter, except as provided in
paragraph (1) with respect to fixed-income families;
``(iii) upon the request of the family, at any time the
income or deductions (under subsection (b)(5)) of the
family change by an amount that is estimated to result in a
decrease of 10 percent (or such lower amount as the
Secretary may, by notice, establish, or permit the public
housing agency or owner to establish) or more in annual
adjusted income; and
``(iv) at any time the income or deductions (under
subsection (b)(5)) of the family change by an amount that
is estimated to result in an increase of 10 percent or more
in annual adjusted income, or such other amount as the
Secretary may by notice establish, except that any increase
in the earned income of a family shall not be considered
for purposes of this clause (except that earned income may
be considered if the increase corresponds to previous
decreases under clause (iii)), except that a public housing
agency or owner may elect not to conduct such review in the
last three months of a certification period.
``(B) In general.--Reviews of family income for purposes of
this section shall be subject to the provisions of section 904
of the Stewart B. McKinney Homeless Assistance Amendments Act
of 1988 (42 U.S.C. 3544).
``(7) Calculation of income.--
``(A) Use of current year income.--In determining family
income for initial occupancy or provision of housing assistance
pursuant to clause (i) of paragraph (6)(A) or pursuant to
reviews pursuant to clause (iii) or (iv) of such paragraph, a
public housing agency or owner shall use the income of the
family as estimated by the agency or owner for the upcoming
year.
``(B) Use of prior year income.--In determining family
income for annual reviews pursuant to paragraph (6)(A)(ii), a
public housing agency or owner shall, except as otherwise
provided in this paragraph and paragraph (1), use the income of
the family as determined by the agency or owner for the
preceding year, taking into consideration any redetermination
of income during such prior year pursuant to clause (iii) or
(iv) of paragraph (6)(A).
``(C) Other income.--In determining the income for any
family based on the prior year's income, with respect to prior
year calculations of income not subject to subparagraph (B), a
public housing agency or owner may make other adjustments as it
considers appropriate to reflect current income.
``(D) Safe harbor.--A public housing agency or owner may,
to the extent such information is available to the public
housing agency or owner, determine the family's income prior to
the application of any deductions based on timely income
determinations made for purposes of other means-tested Federal
public assistance programs (including the program for block
grants to States for temporary assistance for needy families
under part A of title IV of the Social Security Act, a program
for Medicaid assistance under a State plan approved under title
XIX of the Social Security Act, and the supplemental nutrition
assistance program (as such term is defined in section 3 of the
Food and Nutrition Act of 2008 (7 U.S.C. 2012))). The Secretary
shall, in consultation with other appropriate Federal agencies,
develop electronic procedures to enable public housing agencies
and owners to have access to such benefit determinations made
by other means-tested Federal programs that the Secretary
determines to have comparable reliability. Exchanges of such
information shall be subject to the same limitations and tenant
protections provided under section 904 of the Stewart B.
McKinney Homeless Assistance Act Amendments of 1988 (42 U.S.C.
3544) with respect to information obtained under the
requirements of section 303(i) of the Social Security Act (42
U.S.C. 503(i)).
``(E) Electronic income verification.--The Secretary shall
develop a mechanism for disclosing information to a public
housing agency for the purpose of verifying the employment and
income of individuals and families in accordance with section
453(j)(7)(E) of the Social Security Act (42 U.S.C.
653(j)(7)(E)), and shall ensure public housing agencies have
access to information contained in the `Do Not Pay' system
established by section 5 of the Improper Payments Elimination
and Recovery Improvement Act of 2012 (Public Law 112-248; 126
Stat. 2392).
``(F) PHA and owner compliance.--A public housing agency or
owner may not be considered to fail to comply with this
paragraph or paragraph (6) due solely to any de minimis errors
made by the agency or owner in calculating family incomes.'';
(2) by striking subsections (d) and (e); and
(3) by redesignating subsection (f) as subsection (d).
(b) Certification Regarding Hardship Exception to Minimum Monthly
Rent.--Not later than the expiration of the 6-month period beginning on
the date of the enactment of this Act, the Secretary of Housing and
Urban Development shall submit to the Congress a certification that the
hardship and tenant protection provisions in clause (i) of section
3(a)(3)(B) of the United States Housing Act of 1937 (42 U.S.C.
1437a(a)(3)(B)(i)) are being enforced at such time and that the
Secretary will continue to provide due consideration to the hardship
circumstances of persons assisted under relevant programs of this Act.
(c) Income; Adjusted Income.--Section 3(b) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)) is amended by striking
paragraphs (4) and (5) and inserting the following new paragraphs:
``(4) Income.--The term `income' means, with respect to a
family, income received from all sources by each member of the
household who is 18 years of age or older or is the head of
household or spouse of the head of the household, plus unearned
income by or on behalf of each dependent who is less than 18 years
of age, as determined in accordance with criteria prescribed by the
Secretary, in consultation with the Secretary of Agriculture,
subject to the following requirements:
``(A) Included amounts.--Such term includes recurring gifts
and receipts, actual income from assets, and profit or loss
from a business.
``(B) Excluded amounts.--Such term does not include--
``(i) any imputed return on assets, except to the
extent that net family assets exceed $50,000, except that
such amount (as it may have been previously adjusted) shall
be adjusted for inflation annually by the Secretary in
accordance with an inflationary index selected by the
Secretary;
``(ii) any amounts that would be eligible for exclusion
under section 1613(a)(7) of the Social Security Act (42
U.S.C. 1382b(a)(7));
``(iii) deferred disability benefits from the
Department of Veterans Affairs that are received in a lump
sum amount or in prospective monthly amounts;
``(iv) any expenses related to aid and attendance under
section 1521 of title 38, United States Code, to veterans
who are in need of regular aid and attendance; and
``(v) exclusions from income as established by the
Secretary by regulation or notice, or any amount required
by Federal law to be excluded from consideration as income.
``(C) Earned income of students.--Such term does not
include--
``(i) earned income, up to an amount as the Secretary
may by regulation establish, of any dependent earned during
any period that such dependent is attending school or
vocational training on a full-time basis; or
``(ii) any grant-in-aid or scholarship amounts related
to such attendance used--
``(I) for the cost of tuition or books; or
``(II) in such amounts as the Secretary may allow,
for the cost of room and board.
``(D) Educational savings accounts.--Income shall be
determined without regard to any amounts in or from, or any
benefits from, any Coverdell education savings account under
section 530 of the Internal Revenue Code of 1986 or any
qualified tuition program under section 529 of such Code.
``(E) Recordkeeping.--The Secretary may not require a
public housing agency or owner to maintain records of any
amounts excluded from income pursuant to this subparagraph.
``(5) Adjusted income.--The term `adjusted income' means, with
respect to a family, the amount (as determined by the public
housing agency or owner) of the income of the members of the family
residing in a dwelling unit or the persons on a lease, after any
deductions from income as follows:
``(A) Elderly and disabled families.--$525 in the case of
any family that is an elderly family or a disabled family.
``(B) Minors, students, and persons with disabilities.--
$480 for each member of the family residing in the household
(other than the head of the household or his or her spouse) who
is less than 18 years of age or is attending school or
vocational training on a full-time basis, or who is 18 years of
age or older and is a person with disabilities.
``(C) Child care.--Any reasonable child care expenses
necessary to enable a member of the family to be employed or to
further his or her education.
``(D) Health and medical expenses.--The amount, if any, by
which 10 percent of annual family income is exceeded by the sum
of--
``(i) in the case of any elderly or disabled family,
any unreimbursed health and medical care expenses; and
``(ii) any unreimbursed reasonable attendant care and
auxiliary apparatus expenses for each handicapped member of
the family, if determined necessary by the public housing
agency or owner to enable any member of such family to be
employed.
The Secretary shall, by regulation, provide hardship
exemptions to the requirements of this subparagraph and
subparagraph (C) for impacted families who demonstrate an
inability to pay calculated rents because of financial
hardship. Such regulations shall include a requirement to
notify tenants regarding any changes to the determination of
adjusted income pursuant to such subparagraphs based on the
determination of the family's claim of financial hardship
exemptions required by the preceding sentence. Such regulations
shall be promulgated in consultation with tenant organizations,
industry participants, and the Secretary of Health and Human
Services, with an adequate comment period provided for
interested parties.
``(E) Permissive deductions.--Such additional deductions as
a public housing agency may, at its discretion, establish,
except that the Secretary shall establish procedures to ensure
that such deductions do not materially increase Federal
expenditures.
The Secretary shall annually calculate the amounts of the
deductions under subparagraphs (A) and (B), as such amounts may
have been previously calculated, by applying an inflationary factor
as the Secretary shall, by regulation, establish, except that the
actual deduction determined for each year shall be established by
rounding such amount to the next lowest multiple of $25.''.
(d) Housing Choice Voucher Program.--Section 8(o) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(o)) is amended--
(1) in paragraph (1)(D), by inserting before the period at the
end the following: ``, except that a public housing agency may
establish a payment standard of not more than 120 percent of the
fair market rent where necessary as a reasonable accommodation for
a person with a disability, without approval of the Secretary. A
public housing agency may use a payment standard that is greater
than 120 percent of the fair market rent as a reasonable
accommodation for a person with a disability, but only with the
approval of the Secretary. In connection with the use of any
increased payment standard established or approved pursuant to
either of the preceding two sentences as a reasonable accommodation
for a person with a disability, the Secretary may not establish
additional requirements regarding the amount of adjusted income
paid by such person for rent''; and
(2) in paragraph (5)--
(A) in the paragraph heading, by striking ``Annual review''
and inserting ``Reviews'';
(B) in subparagraph (A)--
(i) by striking ``the provisions of'' and inserting
``paragraphs (1), (6), and (7) of section 3(a) and to'';
and
(ii) by striking ``and shall be conducted'' and all
that follows through the end of the subparagraph and
inserting a period; and
(C) in subparagraph (B), by striking the second sentence.
(e) Enhanced Voucher Program.--Section 8(t)(1)(D) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(D)) is amended by
striking ``income'' each place such term appears and inserting ``annual
adjusted income''.
(f) Project-Based Housing.--Paragraph (3) of section 8(c) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(c)(3)) is amended by
striking the last sentence.
(g) Impact on Public Housing Revenues.--
(1) Adjustments to operating formula.--If the Secretary of
Housing and Urban Development determines that the application of
subsections (a) through (e) of this section results in a material
and disproportionate reduction in the rental income of certain
public housing agencies during the first year in which such
subsections are implemented, the Secretary may make appropriate
adjustments in the formula income for such year of those agencies
experiencing such a reduction.
(2) HUD reports on revenue and cost impact.--In each of the
first two years after the first year in which subsections (a)
through (e) are implemented, the Secretary of Housing and Urban
Development shall submit a report to Congress identifying and
calculating the impact of changes made by such subsections and
section 104 of this Act on the revenues and costs of operating
public housing units, the voucher program for rental assistance
under section 8 of the United States Housing Act of 1937, and the
program under such section 8 for project-based rental assistance.
If such report identifies a material reduction in the net income of
public housing agencies nationwide or a material increase in the
costs of funding the voucher program or the project-based
assistance program, the Secretary shall include in such report
recommendations for legislative changes to reduce or eliminate such
a reduction.
(h) Effective Date.--The Secretary of Housing and Urban Development
shall issue notice or regulations to implement this section and this
section shall take effect after such issuance, except that this section
may only take effect upon the commencement of a calendar year.
(i) Study on Impact on Elderly and Disabled Families of Decreased
Deductions in Income.--
(1) Study.--The Secretary of Housing and Urban Development
shall conduct a study to determine the impacts, on rents paid by
elderly and disabled individuals and families assisted under the
section 8 rental assistance and public housing programs under the
United States Housing Act of 1937 (42 U.S.C. 1437 et seq.), of any
decreases in the amounts of any deductions from income (for
purposes of section 3(b) of such Act (42 U.S.C. 1437a(b))), as
compared to such deductions under such section 3(b) as in effect
before the effectiveness of this section, resulting from the
amendments made by this section.
(2) Report.--The Secretary shall submit to the Congress a
report setting forth the results of the study conducted pursuant to
paragraph (1) not later than the expiration of the 12-month period
beginning on the date of the enactment of this Act.
(3) Effective date.--Notwithstanding subsection (h) of this
section, this subsection shall take effect on the date of the
enactment of this Act.
SEC. 103. LIMITATION ON PUBLIC HOUSING TENANCY FOR OVER-INCOME
FAMILIES.
Subsection (a) of section 16 of the United States Housing Act of
1937 (42 U.S.C. 1437n(a)) is amended by adding at the end the following
new paragraph:
``(5) Limitations on tenancy for over-income families.--
``(A) Limitations.--Except as provided in subparagraph (D),
in the case of any family residing in a dwelling unit of public
housing whose income for the most recent two consecutive years,
as determined pursuant to income reviews conducted pursuant to
section 3(a)(6), has exceeded the applicable income limitation
under subparagraph (C), the public housing agency shall--
``(i) notwithstanding any other provision of this Act,
charge such family as monthly rent for the unit occupied by
such family an amount equal to the greater of--
``(I) the applicable fair market rental established
under section 8(c) for a dwelling unit in the same
market area of the same size; or
``(II) the amount of the monthly subsidy provided
under this Act for the dwelling unit, which shall
include any amounts from the Operating Fund and Capital
Fund under section 9 used for the unit, as determined
by the agency in accordance with regulations that the
Secretary shall issue to carry out this subclause; or
``(ii) terminate the tenancy of such family in public
housing not later than 6 months after the income
determination described in subparagraph (A).
``(B) Notice.--In the case of any family residing in a
dwelling unit of public housing whose income for a year has
exceeded the applicable income limitation under subparagraph
(C), upon the conclusion of such year the public housing agency
shall provide written notice to such family of the requirements
under subparagraph (A).
``(C) Income limitation.--The income limitation under this
subparagraph shall be 120 percent of the median income for the
area, as determined by the Secretary with adjustments for
smaller and larger families, except that the Secretary may
establish income limitations higher or lower than 120 percent
of such median income on the basis of the Secretary's findings
that such variations are necessary because of prevailing levels
of construction costs, or unusually high or low family incomes,
vacancy rates, or rental costs.
``(D) Exception.--Subparagraph (A) shall not apply to a
family occupying a dwelling unit in public housing pursuant to
paragraph (5) of section 3(a) (42 U.S.C. 1437a(a)(5)).
``(E) Reports on over-income families and waiting lists.--
The Secretary shall require that each public housing agency
shall--
``(i) submit a report annually, in a format required by
the Secretary, that specifies--
``(I) the number of families residing, as of the
end of the year for which the report is submitted, in
public housing administered by the agency who had
incomes exceeding the applicable income limitation
under subparagraph (C); and
``(II) the number of families, as of the end of
such year, on the waiting lists for admission to public
housing projects of the agency; and
``(ii) make the information reported pursuant to clause
(i) publicly available.''.
SEC. 104. LIMITATION ON ELIGIBILITY FOR ASSISTANCE BASED ON ASSETS.
Section 16 of the United States Housing Act of 1937 (42 U.S.C.
1437n) is amended by inserting after subsection (d) the following new
subsection:
``(e) Eligibility for Assistance Based on Assets.--
``(1) Limitation on assets.--Subject to paragraph (3) and
notwithstanding any other provision of this Act, a dwelling unit
assisted under this Act may not be rented and assistance under this
Act may not be provided, either initially or at each
recertification of family income, to any family--
``(A) whose net family assets exceed $100,000, as such
amount is adjusted annually by applying an inflationary factor
as the Secretary considers appropriate; or
``(B) who has a present ownership interest in, a legal
right to reside in, and the effective legal authority to sell,
real property that is suitable for occupancy by the family as a
residence, except that the prohibition under this subparagraph
shall not apply to--
``(i) any property for which the family is receiving
assistance under subsection (y) or (o)(12) of section 8 of
this Act;
``(ii) any person that is a victim of domestic
violence; or
``(iii) any family that is offering such property for
sale.
``(2) Net family assets.--
``(A) In general.--For purposes of this subsection, the
term `net family assets' means, for all members of the
household, the net cash value of all assets after deducting
reasonable costs that would be incurred in disposing of real
property, savings, stocks, bonds, and other forms of capital
investment. Such term does not include interests in Indian
trust land, equity in property for which the family is
receiving assistance under subsection (y) or (o)(12) of section
8, equity accounts in homeownership programs of the Department
of Housing and Urban Development, or Family Self Sufficiency
accounts.
``(B) Exclusions.--Such term does not include--
``(i) the value of personal property, except for items
of personal property of significant value, as the Secretary
may establish or the public housing agency may determine;
``(ii) the value of any retirement account;
``(iii) real property for which the family does not
have the effective legal authority necessary to sell such
property;
``(iv) any amounts recovered in any civil action or
settlement based on a claim of malpractice, negligence, or
other breach of duty owed to a member of the family and
arising out of law, that resulted in a member of the family
being disabled;
``(v) the value of any Coverdell education savings
account under section 530 of the Internal Revenue Code of
1986 or any qualified tuition program under section 529 of
such Code; and
``(vi) such other exclusions as the Secretary may
establish.
``(C) Trust funds.--In cases in which a trust fund has been
established and the trust is not revocable by, or under the
control of, any member of the family or household, the value of
the trust fund shall not be considered an asset of a family if
the fund continues to be held in trust. Any income distributed
from the trust fund shall be considered income for purposes of
section 3(b) and any calculations of annual family income,
except in the case of medical expenses for a minor.
``(3) Self-certification.--
``(A) Net family assets.--A public housing agency or owner
may determine the net assets of a family, for purposes of this
section, based on a certification by the family that the net
assets of such family do not exceed $50,000, as such amount is
adjusted annually by applying an inflationary factor as the
Secretary considers appropriate.
``(B) No current real property ownership.--A public housing
agency or owner may determine compliance with paragraph (1)(B)
based on a certification by the family that such family does
not have any current ownership interest in any real property at
the time the agency or owner reviews the family's income.
``(C) Standardized forms.--The Secretary may develop
standardized forms for the certifications referred to in
subparagraphs (A) and (B).
``(4) Compliance for public housing dwelling units.--When
recertifying family income with respect to families residing in
public housing dwelling units, a public housing agency may, in the
discretion of the agency and only pursuant to a policy that is set
forth in the public housing agency plan under section 5A for the
agency, choose not to enforce the limitation under paragraph (1).
``(5) Enforcement.--When recertifying the income of a family
residing in a dwelling unit assisted under this Act, a public
housing agency or owner may choose not to enforce the limitation
under paragraph (1) or may establish exceptions to such limitation
based on eligibility criteria, but only pursuant to a policy that
is set forth in the public housing agency plan under section 5A for
the agency or under a policy adopted by the owner. Eligibility
criteria for establishing exceptions may provide for separate
treatment based on family type and may be based on different
factors, such as age, disability, income, the ability of the family
to find suitable alternative housing, and whether supportive
services are being provided.
``(6) Authority to delay evictions.--In the case of a family
residing in a dwelling unit assisted under this Act who does not
comply with the limitation under paragraph (1), the public housing
agency or project owner may delay eviction or termination of the
family based on such noncompliance for a period of not more than 6
months.
``(7) Verifying income.--
``(A) Beginning in fiscal year 2018, the Secretary shall
require public housing agencies to require each applicant for,
or recipient of, benefits under this Act to provide
authorization by the applicant or recipient (or by any other
person whose income or resources are material to the
determination of the eligibility of the applicant or recipient
for such benefits) for the public housing agency to obtain
(subject to the cost reimbursement requirements of section
1115(a) of the Right to Financial Privacy Act) from any
financial institution (within the meaning of section 1101(1) of
such Act) any financial record (within the meaning of section
1101(2) of such Act) held by the institution with respect to
the applicant or recipient (or any such other person) whenever
the public housing agency determines the record is needed in
connection with a determination with respect to such
eligibility or the amount of such benefits.
``(B) Notwithstanding section 1104(a)(1) of the Right to
Financial Privacy Act, an authorization provided by an
applicant or recipient (or any other person whose income or
resources are material to the determination of the eligibility
of the applicant or recipient) pursuant to subparagraph (A) of
this paragraph shall remain effective until the earliest of--
``(i) the rendering of a final adverse decision on the
applicant's application for eligibility for benefits under
this Act;
``(ii) the cessation of the recipient's eligibility for
benefits under this Act; or
``(iii) the express revocation by the applicant or
recipient (or such other person referred to in subparagraph
(A)) of the authorization, in a written notification to the
Secretary.
``(C)(i) An authorization obtained by the public housing
agency pursuant to this paragraph shall be considered to meet
the requirements of the Right to Financial Privacy Act for
purposes of section 1103(a) of such Act, and need not be
furnished to the financial institution, notwithstanding section
1104(a) of such Act.
``(ii) The certification requirements of section 1103(b) of
the Right to Financial Privacy Act shall not apply to requests
by the public housing agency pursuant to an authorization
provided under this clause.
``(iii) A request by the public housing agency pursuant to
an authorization provided under this clause is deemed to meet
the requirements of section 1104(a)(3) of the Right to
Financial Privacy Act and the flush language of section 1102 of
such Act.
``(iv) The public housing agency shall inform any person
who provides authorization pursuant to this paragraph of the
duration and scope of the authorization.
``(D) If an applicant for, or recipient of, benefits under
this Act (or any such other person referred to in subparagraph
(A)) refuses to provide, or revokes, any authorization made by
the applicant or recipient for the public housing agency to
obtain from any financial institution any financial record, the
public housing agency may, on that basis, determine that the
applicant or recipient is ineligible for benefits under this
title.''.
SEC. 105. UNITS OWNED BY PUBLIC HOUSING AGENCIES.
Paragraph (11) of section 8(o) of the United States Housing Act of
1937 (42 U.S.C. 1437f(o)(11)) is amended--
(1) by striking ``(11) Leasing of units owned by pha.--If'' and
inserting the following:
``(11) Leasing of units owned by pha.--
``(A) Inspections and rent determinations.--If''; and
(2) by adding at the end the following new subparagraph:
``(B) Units owned by pha.--For purposes of this subsection,
the term `owned by a public housing agency' means, with respect
to a dwelling unit, that the dwelling unit is in a project that
is owned by such agency, by an entity wholly controlled by such
agency, or by a limited liability company or limited
partnership in which such agency (or an entity wholly
controlled by such agency) holds a controlling interest in the
managing member or general partner. A dwelling unit shall not
be deemed to be owned by a public housing agency for purposes
of this subsection because the agency holds a fee interest as
ground lessor in the property on which the unit is situated,
holds a security interest under a mortgage or deed of trust on
the unit, or holds a non-controlling interest in an entity
which owns the unit or in the managing member or general
partner of an entity which owns the unit.''.
SEC. 106. PHA PROJECT-BASED ASSISTANCE.
(a) In General.--Paragraph (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) Percentage limitation.--
``(i) In general.--Subject to clause (ii), a public
housing agency may use for project-based assistance under
this paragraph not more than 20 percent of the authorized
units for the agency.
``(ii) Exception.--A public housing agency may use up
to an additional 10 percent of the authorized units for the
agency for project-based assistance under this paragraph,
to provide 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 house families with veterans, that provide supportive
housing to persons with disabilities or elderly persons, or
that are located in areas where vouchers under this
subsection are difficult to use, as specified in
subparagraph (D)(ii)(II). Any units of project-based
assistance that are attached to units previously subject to
federally required rent restrictions or receiving another
type of long-term housing subsidy provided by the Secretary
shall not count toward the percentage limitation under
clause (i) of this subparagraph. The Secretary may, by
regulation, establish additional categories for the
exception under this clause.'';
(3) by striking subparagraph (D) and inserting the following
new subparagraph:
``(D) Income-mixing requirement.--
``(i) In general.--Except as provided in clause (ii),
not more than the greater of 25 dwelling units or 25
percent of the dwelling units in any project may be
assisted under a housing assistance payment contract for
project-based assistance pursuant to this paragraph. For
purposes of this subparagraph, the term `project' means a
single building, multiple contiguous buildings, or multiple
buildings on contiguous parcels of land.
``(ii) Exceptions.--
``(I) Certain families.--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
supportive services that are made available to the
assisted residents of the project, according to
standards for such services the Secretary may
establish.
``(II) Certain areas.--With respect to areas in
which tenant-based vouchers for assistance under this
subsection 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) Certain contracts.--The limitation under
clause (i) shall not apply with respect to contracts or
renewal of contracts under which a greater percentage
of the dwelling units in a project were assisted under
a housing assistance payment contract for project-based
assistance pursuant to this paragraph on the date of
the enactment of the Housing Opportunity Through
Modernization Act of 2016.
``(IV) Certain properties.--Any units of project-
based assistance under this paragraph that are attached
to units previously subject to federally required rent
restrictions or receiving other project-based
assistance provided by the Secretary shall not count
toward the percentage limitation imposed by this
subparagraph (D).
``(iii) Additional monitoring and oversight
requirements.--The Secretary may establish additional
requirements for monitoring and oversight of projects in
which more than 40 percent of the dwelling units are
assisted under a housing assistance payment contract for
project-based assistance pursuant to this paragraph.'';
(4) by striking subparagraph (F) and inserting the following
new subparagraph:
``(F) Contract term.--
``(i) Term.--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 appropriation
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 agency shall not
be required to make biennial inspections of each
assisted unit in the development.
``(ii) Addition of eligible units.--Subject to the
limitations of subparagraphs (B) and (D), the agency and
the owner may add eligible units within the same project to
a housing assistance payments contract at any time during
the term thereof without being subject to any additional
competitive selection procedures.
``(iii) Housing under construction or recently
constructed.--An agency may enter into a housing assistance
payments contract with an owner for any unit that does not
qualify as existing housing and is under construction or
recently has been constructed whether or not the agency has
executed an agreement to enter into a contract with the
owner, provided that the owner demonstrates compliance with
applicable requirements prior to execution of the housing
assistance payments contract. This clause shall not subject
a housing assistance payments contract for existing housing
under this paragraph to such requirements or otherwise
limit the extent to which a unit may be assisted as
existing housing.
``(iv) Additional conditions.--The contract may specify
additional conditions, including with respect to
continuation, termination, or expiration, and shall specify
that upon termination or expiration of the contract without
extension, each assisted family may elect to use its
assistance under this subsection to remain in the same
project if its unit complies with the inspection
requirements under paragraph (8), the rent for the unit is
reasonable as required by paragraph (10)(A), and the family
pays its required share of the rent and the amount, if any,
by which the unit rent (including the amount allowed for
tenant-based utilities) exceeds the applicable payment
standard.'';
(5) in subparagraph (G), by striking ``15 years'' and inserting
``20 years'';
(6) by striking subparagraph (I) and inserting the following
new subparagraph:
``(I) Rent adjustments.--A housing assistance payments
contract pursuant to this paragraph entered into after the date
of the enactment of the Housing Opportunity Through
Modernization Act of 2016 shall provide for annual rent
adjustments upon the request of the owner, except that--
``(i) by agreement of the parties, a contract may allow
a public housing agency to adjust the rent for covered
units using an operating cost adjustment factor established
by the Secretary pursuant to section 524(c) of the
Multifamily Assisted Housing Reform and Affordability Act
of 1997 (which shall not result in a negative adjustment),
in which case the contract may require an additional
adjustment, if requested, up to the reasonable rent
periodically during the term of the contract, and shall
require such an adjustment, if requested, upon extension
pursuant to subparagraph (G);
``(ii) the adjusted rent shall not exceed the maximum
rent permitted under subparagraph (H);
``(iii) 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 units;
and
``(iv) the provisions of subsection (c)(2)(C) shall not
apply.'';
(7) in subparagraph (J)--
(A) in the first sentence--
(i) by striking ``shall'' and inserting ``may''; and
(ii) by inserting before the period the following: ``or
may permit owners to select applicants from site-based
waiting lists as specified in this subparagraph'';
(B) by striking the third sentence and inserting the
following: ``The agency or owner may establish preferences or
criteria for selection for a unit assisted under this paragraph
that are consistent with the public housing agency plan for the
agency approved under section 5A and that give preference to
families who qualify for voluntary services, including
disability-specific services, offered in conjunction with
assisted units.''; and
(C) by striking the fifth and sixth sentences and inserting
the following: ``A public housing agency may establish and
utilize procedures for owner-maintained site-based waiting
lists, under which applicants may apply 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 list, subject to policies and procedures
established by the Secretary. All such procedures shall comply
with title VI of the Civil Rights Act of 1964, the Fair Housing
Act, section 504 of the Rehabilitation Act of 1973, 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.'';
(8) in subparagraph (M)(ii), by inserting before the period at
the end the following: ``relating to funding other than housing
assistance payments''; and
(9) by adding at the end the following new subparagraphs:
``(N) Structure owned by agency.--A public housing agency
engaged in an initiative to improve, develop, or replace a
public housing property or site may attach assistance to an
existing, newly constructed, or rehabilitated structure in
which the agency has an ownership interest or which the agency
has control of without following a competitive process,
provided that the agency has notified the public of its intent
through its public housing agency plan and subject to the
limitations and requirements of this paragraph.
``(O) Special purpose vouchers.--A public housing agency
that administers vouchers authorized under subsection (o)(19)
or (x) of this section may provide such assistance in
accordance with the limitations and requirements of this
paragraph, without additional requirements for approval by the
Secretary.''.
(b) Effective Date.--The Secretary of Housing and Urban Development
shall issue notice or regulations to implement subsection (a) of this
section and such subsection shall take effect upon such issuance.
SEC. 107. ESTABLISHMENT OF FAIR MARKET RENT.
(a) In General.--Paragraph (1) of section 8(c) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(c)(1)) is amended--
(1) by inserting ``(A)'' after the paragraph designation;
(2) by striking the fourth, seventh, eighth, and ninth
sentences; and
(3) by adding at the end the following:
``(B) Fair market rentals for an area shall be published not less
than annually by the Secretary on the site of the Department on the
World Wide Web and in any other manner specified by the Secretary.
Notice that such fair market rentals are being published shall be
published in the Federal Register, and such fair market rentals shall
become effective no earlier than 30 days after the date of such
publication. The Secretary shall establish a procedure for public
housing agencies and other interested parties to comment on such fair
market rentals and to request, within a time specified by the
Secretary, reevaluation of the fair market rentals in a jurisdiction
before such rentals become effective. The Secretary shall cause to be
published for comment in the Federal Register notices of proposed
material changes in the methodology for estimating fair market rentals
and notices specifying the final decisions regarding such proposed
substantial methodological changes and responses to public comments.''.
(b) Payment Standard.--Subparagraph (B) of section 8(o)(1) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(o)(1)(B)) is amended
by inserting before the period at the end the following: ``, except
that no public housing agency shall be required as a result of a
reduction in the fair market rental to reduce the payment standard
applied to a family continuing to reside in a unit for which the family
was receiving assistance under this section at the time the fair market
rental was reduced. The Secretary shall allow public housing agencies
to request exception payment standards within fair market rental areas
subject to criteria and procedures established by the Secretary''.
(c) Effective Date.--The amendments made by this section shall take
effect upon the date of the enactment of this Act.
SEC. 108. COLLECTION OF UTILITY DATA.
Section 8(o) of the United States Housing Act of 1937 (42 U.S.C.
1437f(o)) is amended by adding at the end the following new paragraph:
``(20) Collection of utility data.--
``(A) Publication.--The Secretary shall, to the extent that
data can be collected cost effectively, regularly publish such
data regarding utility consumption and costs in local areas as
the Secretary determines will be useful for the establishment
of allowances for tenant-paid utilities for families assisted
under this subsection.
``(B) Use of data.--The Secretary shall provide such data
in a manner that--
``(i) avoids unnecessary administrative burdens for
public housing agencies and owners; and
``(ii) protects families in various unit sizes and
building types, and using various utilities, from high rent
and utility cost burdens relative to income.''.
SEC. 109. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.
(a) Capital Fund Replacement Reserves.--Section 9 of the United
States Housing Act of 1937 (42 U.S.C. 1437g) is amended--
(1) in subsection (j), by adding at the end the following new
paragraph:
``(7) Treatment of replacement reserve.--The requirements of
this subsection shall not apply to funds held in replacement
reserves established pursuant to subsection (n).''; and
(2) by adding at the end the following new subsection:
``(n) Establishment of Replacement Reserves.--
``(1) In general.--Public housing agencies shall be permitted
to establish a replacement reserve to fund any of the capital
activities listed in subsection (d)(1).
``(2) Source and amount of funds for replacement reserve.--At
any time, a public housing agency may deposit funds from such
agency's Capital Fund into a replacement reserve, subject to the
following:
``(A) At the discretion of the Secretary, public housing
agencies may transfer and hold in a replacement reserve funds
originating from additional sources.
``(B) No minimum transfer of funds to a replacement reserve
shall be required.
``(C) At any time, a public housing agency may not hold in
a replacement reserve more than the amount the public housing
authority has determined necessary to satisfy the anticipated
capital needs of properties in its portfolio assisted under
this section, as outlined in its Capital Fund 5-Year Action
Plan, or a comparable plan, as determined by the Secretary.
``(D) The Secretary may establish, by regulation, a maximum
replacement reserve level or levels that are below amounts
determined under subparagraph (C), which may be based upon the
size of the portfolio assisted under this section or other
factors.
``(3) Transfer of operating funds.--In first establishing a
replacement reserve, the Secretary may allow public housing
agencies to transfer more than 20 percent of its operating funds
into its replacement reserve.
``(4) Expenditure.--Funds in a replacement reserve may be used
for purposes authorized by subsection (d)(1) and contained in its
Capital Fund 5-Year Action Plan.
``(5) Management and report.--The Secretary shall establish
appropriate accounting and reporting requirements to ensure that
public housing agencies are spending funds on eligible projects and
that funds in the replacement reserve are connected to capital
needs.''.
(b) Flexibility of Operating Fund Amounts.--Paragraph (1) of
section 9(g) of the United States Housing Act of 1937 (42 U.S.C.
1437g(g)(1)) is amended--
(1) by striking ``(1)'' and all that follows through ``--Of''
and inserting the following:
``(1) Flexibility in use of funds.--
``(A) Flexibility for capital fund amounts.--Of''; and
(2) by adding at the end the following new subparagraph:
``(B) Flexibility for operating fund amounts.--Of any
amounts appropriated for fiscal year 2016 or any fiscal year
thereafter that are allocated for fiscal year 2016 or any
fiscal year thereafter from the Operating Fund for any public
housing agency, the agency may use not more than 20 percent for
activities that are eligible under subsection (d) for
assistance with amounts from the Capital Fund, but only if the
public housing plan under section 5A for the agency provides
for such use.''.
SEC. 110. FAMILY UNIFICATION PROGRAM FOR CHILDREN AGING OUT OF
FOSTER CARE.
Section 8(x) of the United States Housing Act of 1937 (42 U.S.C.
1437f(x)) is amended--
(1) in paragraph (2)(B)--
(A) by striking ``18 months'' and inserting ``36 months'';
(B) by striking ``21 years of age'' and inserting ``24
years of age''; and
(C) by inserting after ``have left foster care'' the
following: ``, or will leave foster care within 90 days, in
accordance with a transition plan described in section
475(5)(H) of the Social Security Act, and is homeless or is at
risk of becoming homeless'';
(2) by redesignating paragraph (4) as paragraph (5); and
(3) by inserting after paragraph (3) the following new
paragraph:
``(4) Coordination between public housing agencies and public
child welfare agencies.--The Secretary shall, not later than the
expiration of the 180-day period beginning on the date of the
enactment of the Housing Opportunity Through Modernization Act of
2016 and after consultation with other appropriate Federal
agencies, issue guidance to improve coordination between public
housing agencies and public child welfare agencies in carrying out
the program under this subsection, which shall provide guidance
on--
``(A) identifying eligible recipients for assistance under
this subsection;
``(B) coordinating with other local youth and family
providers in the community and participating in the Continuum
of Care program established under subtitle C of title IV of the
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11381 et
seq.);
``(C) implementing housing strategies to assist eligible
families and youth;
``(D) aligning system goals to improve outcomes for
families and youth and reducing lapses in housing for families
and youth; and
``(E) identifying resources that are available to eligible
families and youth to provide supportive services available
through parts B and E of title IV of the Social Security Act
(42 U.S.C. 621 et seq.; 670 et seq.) or that the head of
household of a family or youth may be entitled to receive under
section 477 of the Social Security Act (42 U.S.C. 677).''.
SEC. 111. PUBLIC HOUSING HEATING GUIDELINES.
Section 9 of the United States Housing Act of 1937 (42 U.S.C.
1437g), as amended by the preceding provisions of this Act, is further
amended by adding at the end the following new subsection:
``(o) Public Housing Heating Guidelines.--The Secretary shall
publish model guidelines for minimum heating requirements for public
housing dwelling units operated by public housing agencies receiving
assistance under this section.''.
SEC. 112. USE OF VOUCHERS FOR MANUFACTURED HOUSING.
(a) In General.--Section 8(o)(12) of the United States Housing Act
of 1937 (42 U.S.C. 1437f(o)(12)) is amended--
(1) in subparagraph (A), by striking the period at the end of
the first sentence and all that follows through ``of'' in the
second sentence and inserting ``and rents''; and
(2) in subparagraph (B)--
(A) in clause (i), by striking ``the rent'' and all that
follows and inserting the following: ``rent shall mean the sum
of the monthly payments made by a family assisted under this
paragraph to amortize the cost of purchasing the manufactured
home, including any required insurance and property taxes, the
monthly amount allowed for tenant-paid utilities, and the
monthly rent charged for the real property on which the
manufactured home is located, including monthly management and
maintenance charges.'';
(B) by striking clause (ii); and
(C) in clause (iii)--
(i) by inserting after the period at the end the
following: ``If the amount of the monthly assistance
payment for a family exceeds the monthly rent charged for
the real property on which the manufactured home is
located, including monthly management and maintenance
charges, a public housing agency may pay the remainder to
the family, lender or utility company, or may choose to
make a single payment to the family for the entire monthly
assistance amount.''; and
(ii) by redesignating such clause as clause (ii).
(b) Effective Date.--The Secretary of Housing and Urban Development
shall issue notice to implement the amendments made by subsection (a)
and such amendments shall take effect upon such issuance.
SEC. 113. PREFERENCE FOR UNITED STATES CITIZENS OR NATIONALS.
Section 214(a)(7) of the Housing and Community Development Act of
1980 (42 U.S.C. 1436a(a)(7)) is amended by striking ``such alien'' and
all that follows through the period at the end and inserting ``any
citizen or national of the United States shall be entitled to a
preference or priority in receiving financial assistance before any
such alien who is otherwise eligible for assistance.''.
SEC. 114. EXCEPTION TO PUBLIC HOUSING AGENCY RESIDENT BOARD MEMBER
REQUIREMENT.
Subsection (b) of section 2 of the United States Housing Act of
1937 (42 U.S.C. 1437(b)) is amended--
(1) in paragraph (1), by striking ``paragraph (2)'' and
inserting ``paragraphs (2) and (3)'';
(2) by redesignating paragraph (3) as paragraph (4); and
(3) by inserting after paragraph (2) the following new
paragraph:
``(3) Exception for certain jurisdictions.--
``(A) Exception.--A covered agency (as such term is defined
in subparagraph (C) of this paragraph) shall not be required to
include on the board of directors or a similar governing board
of such agency a member described in paragraph (1).
``(B) Advisory board requirement.--Each covered agency that
administers Federal housing assistance under section 8 (42
U.S.C. 1437f) that chooses not to include a member described in
paragraph (1) on the board of directors or a similar governing
board of the agency shall establish an advisory board of not
less than 6 residents of public housing or recipients of
assistance under section 8 (42 U.S.C. 1437f) to provide advice
and comment to the agency or other administering entity on
issues related to public housing and section 8. Such advisory
board shall meet not less than quarterly.
``(C) Covered agency or entity.--For purposes of this
paragraph, the term `covered agency' means a public housing
agency or such other entity that administers Federal housing
assistance for--
``(I) the Housing Authority of the county of Los
Angeles, California; or
``(ii) any of the States of Alaska, Iowa, and
Mississippi.''.
TITLE II--RURAL HOUSING
SEC. 201. DELEGATION OF GUARANTEED RURAL HOUSING LOAN APPROVAL.
Subsection (h) of section 502 of the Housing Act of 1949 (42 U.S.C.
1472(h)) is amended by adding at the end the following new paragraph:
``(18) Delegation of approval.--The Secretary may delegate, in
part or in full, the Secretary's authority to approve and execute
binding Rural Housing Service loan guarantees pursuant to this
subsection to certain preferred lenders, in accordance with
standards established by the Secretary.''.
SEC. 202. GUARANTEED UNDERWRITING USER FEE.
Section 502 of the Housing Act of 1949 (42 U.S.C. 1472) is amended
by adding at the end the following new subsection:
``(i) Guaranteed Underwriting User Fee.--
``(1) Authority; maximum amount.--The Secretary may assess and
collect a fee for a lender to access the automated underwriting
systems of the Department in connection with such lender's
participation in the single family loan program under this section
and only in an amount necessary to cover the costs of information
technology enhancements, improvements, maintenance, and development
for automated underwriting systems used in connection with the
single family loan program under this section, except that such fee
shall not exceed $50 per loan.
``(2) Crediting; availability.--Any amounts collected from such
fees shall be credited to the Rural Development Expense Account as
offsetting collections and shall remain available until expended,
in the amounts provided in appropriation Acts, solely for expenses
described in paragraph (1).''.
TITLE III--FHA MORTGAGE INSURANCE FOR CONDOMINIUMS
SEC. 301. MODIFICATION OF FHA REQUIREMENTS FOR MORTGAGE INSURANCE
FOR CONDOMINIUMS.
Section 203 of the National Housing Act (12 U.S.C. 1709) is amended
by adding at the end the following new subsection:
``(y) Requirements for Mortgages for Condominiums.--
``(1) Project recertification requirements.--Notwithstanding
any other law, regulation, or guideline of the Secretary, including
chapter 2.4 of the Condominium Project Approval and Processing
Guide of the FHA, the Secretary shall streamline the project
certification requirements that are applicable to the insurance
under this section for mortgages for condominium projects so that
recertifications are substantially less burdensome than
certifications. The Secretary shall consider lengthening the time
between certifications for approved properties, and allowing
updating of information rather than resubmission.
``(2) Commercial space requirements.--Notwithstanding any other
law, regulation, or guideline of the Secretary, including chapter
2.1.3 of the Condominium Project Approval and Processing Guide of
the FHA, in providing for exceptions to the requirement for the
insurance of a mortgage on a condominium property under this
section regarding the percentage of the floor space of a
condominium property that may be used for nonresidential or
commercial purposes, the Secretary shall provide that--
``(A) any request for such an exception and the
determination of the disposition of such request may be made,
at the option of the requester, under the direct endorsement
lender review and approval process or under the HUD review and
approval process through the applicable field office of the
Department; and
``(B) in determining whether to allow such an exception for
a condominium property, factors relating to the economy for the
locality in which such project is located or specific to
project, including the total number of family units in the
project, shall be considered.
Not later than the expiration of the 90-day period beginning on the
date of the enactment of this paragraph, the Secretary shall issue
regulations to implement this paragraph, which shall include any
standards, training requirements, and remedies and penalties that
the Secretary considers appropriate.
``(3) Transfer fees.--Notwithstanding any other law,
regulation, or guideline of the Secretary, including chapter 1.8.8
of the Condominium Project Approval and Processing Guide of the FHA
and section 203.41 of the Secretary's regulations (24 CFR 203.41),
existing standards of the Federal Housing Finance Agency relating
to encumbrances under private transfer fee covenants shall apply to
the insurance of mortgages by the Secretary under this section to
the same extent and in the same manner that such standards apply to
the purchasing, investing in, and otherwise dealing in mortgages by
the Federal National Mortgage Association and the Federal Home Loan
Mortgage Corporation. If the provisions of part 1228 of the
Director of the Federal Housing Finance Agency's regulations (12
CFR part 1228) are amended or otherwise changed after the date of
the enactment of this paragraph, the Secretary of Housing and Urban
Development shall adopt any such amendments or changes for purposes
of this paragraph, unless the Secretary causes to be published in
the Federal Register a notice explaining why the Secretary will
disregard such amendments or changes within 90 days after the
effective date of such amendments or changes.
``(4) Owner-occupancy requirement.--
``(A) Establishment of percentage requirement.--Not later
than the expiration of the 90-day period beginning on the date
of the enactment of this paragraph, the Secretary shall, by
rule, notice, or mortgagee letter, issue guidance regarding the
percentage of units that must be occupied by the owners as a
principal residence or a secondary residence (as such terms are
defined by the Secretary), or must have been sold to owners who
intend to meet such occupancy requirements, including
justifications for the percentage requirements, in order for a
condominium project to be acceptable to the Secretary for
insurance under this section of a mortgage within such
condominium property.
``(B) Failure to act.--If the Secretary fails to issue the
guidance required under subparagraph (A) before the expiration
of the 90-day period specified in such clause, the following
provisions shall apply:
``(i) 35 percent requirement.--In order for a
condominium project to be acceptable to the Secretary for
insurance under this section, at least 35 percent of all
family units (including units not covered by FHA-insured
mortgages) must be occupied by the owners as a principal
residence or a secondary residence (as such terms are
defined by the Secretary), or must have been sold to owners
who intend to meet such occupancy requirement.
``(ii) Other considerations.--The Secretary may
increase the percentage applicable pursuant to clause (i)
to a condominium project on a project-by-project or
regional basis, and in determining such percentage for a
project shall consider factors relating to the economy for
the locality in which such project is located or specific
to project, including the total number of family units in
the project.''.
TITLE IV--HOUSING REFORMS FOR THE HOMELESS AND FOR VETERANS
SEC. 401. DEFINITION OF GEOGRAPHIC AREA FOR CONTINUUM OF CARE
PROGRAM.
(a) Definition.--Subtitle C of the McKinney-Vento Homeless
Assistance Act is amended--
(1) by redesignating sections 432 and 433 (42 U.S.C. 11387,
11388) as sections 433 and 434, respectively; and
(2) by inserting after section 431 (42 U.S.C. 11386e) the
following new section:
``SEC. 432. GEOGRAPHIC AREAS.
``(a) Requirement to Define.--For purposes of this subtitle, the
term `geographic area' shall have such meaning as the Secretary shall
by notice provide.
``(b) Issuance of Notice.--Not later than the expiration of the 90-
day period beginning on the date of the enactment of the Housing
Opportunity Through Modernization Act of 2016, the Secretary shall
issue a notice setting forth the definition required by subsection
(a).''.
(b) Clerical Amendment.--The table of contents in section 101(b) of
the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301 note) is
amended by striking the items relating to sections 432 and 433 and
inserting the following new items:
``Sec. 432. Geographic areas.
``Sec. 433. Regulations.
``Sec. 434. Reports to Congress.''.
SEC. 402. INCLUSION OF PUBLIC HOUSING AGENCIES AND LOCAL
REDEVELOPMENT AUTHORITIES IN EMERGENCY SOLUTIONS GRANTS.
Section 414(c) of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11373(c)) is amended--
(1) in the subsection heading, by inserting ``, Public Housing
Agencies, and Local Redevelopment Authorities'' after
``Organizations''; and
(2) in the first sentence, by inserting before the period at
the end the following: ``, to public housing agencies (as defined
under section 3(b)(6) of the United States Housing Act of 1937), or
to local redevelopment authorities (as defined under State law)''.
SEC. 403. SPECIAL ASSISTANT FOR VETERANS AFFAIRS IN THE DEPARTMENT
OF HOUSING AND URBAN DEVELOPMENT.
(a) Transfer of Position to Office of the Secretary.--Section 4 of
the Department of Housing and Urban Development Act (42 U.S.C. 3533) is
amended by adding at the end the following new subsection:
``(h) Special Assistant for Veterans Affairs.--
``(1) Position.--There shall be in the Office of the Secretary
a Special Assistant for Veterans Affairs, who shall report directly
to the Secretary.
``(2) Appointment.--The Special Assistant for Veterans Affairs
shall be appointed based solely on merit and shall be covered under
the provisions of title 5, United States Code, governing
appointments in the competitive service.
``(3) Responsibilities.--The Special Assistant for Veterans
Affairs shall be responsible for--
``(A) ensuring veterans have fair access to housing and
homeless assistance under each program of the Department
providing either such assistance;
``(B) coordinating all programs and activities of the
Department relating to veterans;
``(C) serving as a liaison for the Department with the
Department of Veterans Affairs, including establishing and
maintaining relationships with the Secretary of Veterans
Affairs;
``(D) serving as a liaison for the Department, and
establishing and maintaining relationships with the United
States Interagency Council on Homelessness and officials of
State, local, regional, and nongovernmental organizations
concerned with veterans;
``(E) providing information and advice regarding--
``(i) sponsoring housing projects for veterans assisted
under programs administered by the Department; or
``(ii) assisting veterans in obtaining housing or
homeless assistance under programs administered by the
Department;
``(F) coordinating with the Secretary of Housing and Urban
Development and the Secretary of Veterans Affairs in carrying
out section 404 of the Housing Opportunity Through
Modernization Act of 2016;
``(G) collaborating with the Department of Veterans Affairs
on making joint recommendations to the Congress, the Secretary
of Housing and Urban Development, and the Secretary of Veterans
Affairs on how to better coordinate and improve services to
veterans under both Department of Housing and Urban Development
and Department of Veteran Affairs veterans housing programs,
including ways to improve the Independent Living Program of the
Department of Veteran Affairs; and
``(H) carrying out such other duties as may be assigned to
the Special Assistant by the Secretary or by law.''.
(b) Transfer of Position in Office of Deputy Assistant Secretary
for Special Needs.--On the date that the initial Special Assistant for
Veterans Affairs is appointed pursuant to section 4(h)(2) of the
Department of Housing and Urban Development Act, as added by subsection
(a) of this section, the position of Special Assistant for Veterans
Programs in the Office of the Deputy Assistant Secretary for Special
Needs of the Department of Housing and Urban Development shall be
terminated.
SEC. 404. ANNUAL SUPPLEMENTAL REPORT ON VETERANS HOMELESSNESS.
(a) In General.--The Secretary of Housing and Urban Development and
the Secretary of Veterans Affairs, in coordination with the United
States Interagency Council on Homelessness, shall submit annually to
the Committees of the Congress specified in subsection (b), together
with the annual reports required by such Secretaries under section
203(c)(1) of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11313(c)(1)), a supplemental report that includes the following
information with respect to the preceding year:
(1) The same information, for such preceding year, that was
included with respect to 2010 in the report by the Secretary of
Housing and Urban Development and the Secretary of Veterans Affairs
entitled ``Veterans Homelessness: A Supplemental Report to the 2010
Annual Homeless Assessment Report to Congress''.
(2) Information regarding the activities of the Department of
Housing and Urban Development relating to veterans during such
preceding year, as follows:
(A) The number of veterans provided assistance under the
housing choice voucher program for Veterans Affairs supported
housing under section 8(o)(19) of the United States Housing Act
of 1937 (42 U.S.C. 1437f(o)(19)), the socioeconomic
characteristics of such homeless veterans, and the number,
types, and locations of entities contracted under such section
to administer the vouchers.
(B) A summary description of the special considerations
made for veterans under public housing agency plans submitted
pursuant to section 5A of the United States Housing Act of 1937
(42 U.S.C. 1437c-1) and under comprehensive housing
affordability strategies submitted pursuant to section 105 of
the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12705).
(C) A description of the activities of the Special
Assistant for Veterans Affairs of the Department of Housing and
Urban Development.
(D) A description of the efforts of the Department of
Housing and Urban Development and the other members of the
United States Interagency Council on Homelessness to coordinate
the delivery of housing and services to veterans.
(E) The cost to the Department of Housing and Urban
Development of administering the programs and activities
relating to veterans.
(F) Any other information that the Secretary of Housing and
Urban Development and the Secretary of Veterans Affairs
consider relevant in assessing the programs and activities of
the Department of Housing and Urban Development relating to
veterans.
(b) Committees.--The Committees of the Congress specified in this
subsection are as follows:
(1) The Committee on Banking, Housing, and Urban Affairs of the
Senate.
(2) The Committee on Veterans' Affairs of the Senate.
(3) The Committee on Appropriations of the Senate.
(4) The Committee on Financial Services of the House of
Representatives.
(5) The Committee on Veterans' Affairs of the House of
Representatives.
(6) The Committee on Appropriations of the House of
Representatives.
SEC. 405. REOPENING OF PUBLIC COMMENT PERIOD FOR CONTINUUM OF CARE
PROGRAM REGULATIONS.
Not later than the expiration of the 30-day period beginning on the
date of the enactment of this Act, the Secretary of Housing and Urban
Development shall re-open the period for public comment regarding the
Secretary's interim rule entitled ``Homeless Emergency Assistance and
Rapid Transition to Housing: Continuum of Care Program'', published in
the Federal Register on July 31, 2012 (77 Fed. Reg. 45422; Docket No.
FR-5476-I-01). Upon re-opening, such comment period shall remain open
for a period of not fewer than 60 days.
TITLE V--MISCELLANEOUS
SEC. 501. INCLUSION OF DISASTER HOUSING ASSISTANCE PROGRAM IN
CERTAIN FRAUD AND ABUSE PREVENTION MEASURES.
The Disaster Housing Assistance Program administered by the
Department of Housing and Urban Development shall be considered a
``program of the Department of Housing and Urban Development'' under
section 904 of the Stewart B. McKinney Homeless Assistance Amendments
Act of 1988 (42 U.S.C. 3544) for the purpose of income verifications.
SEC. 502. ENERGY EFFICIENCY REQUIREMENTS UNDER SELF-HELP
HOMEOWNERSHIP OPPORTUNITY PROGRAM.
Section 11 of the Housing Opportunity Program Extension Act of 1996
(42 U.S.C. 12805 note) is amended by inserting after subsection (f) the
following new subsection:
``(g) Energy Efficiency Requirements.--The Secretary may not
require any dwelling developed using amounts from a grant made under
this section to meet any energy efficiency standards other than the
standards applicable at such time pursuant to section 109 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12709) to
housing specified in subsection (a) of such section.''.
SEC. 503. DATA EXCHANGE STANDARDIZATION FOR IMPROVED
INTEROPERABILITY.
(a) Data Exchange Standardization.--Title I of the United States
Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at
the end the following new section:
``SEC. 37. DATA EXCHANGE STANDARDS FOR IMPROVED INTEROPERABILITY.
``(a) Designation.--The Secretary shall, in consultation with an
interagency work group established by the Office of Management and
Budget, and considering State government perspectives, designate data
exchange standards to govern, under this Act--
``(1) necessary categories of information that State agencies
operating related programs are required under applicable law to
electronically exchange with another State agency; and
``(2) Federal reporting and data exchange required under
applicable law.
``(b) Requirements.--The data exchange standards required by
subsection (a) shall, to the maximum extent practicable--
``(1) incorporate a widely accepted, nonproprietary,
searchable, computer-readable format, such as the eXtensible Markup
Language;
``(2) contain interoperable standards developed and maintained
by intergovernmental partnerships, such as the National Information
Exchange Model;
``(3) incorporate interoperable standards developed and
maintained by Federal entities with authority over contracting and
financial assistance;
``(4) be consistent with and implement applicable accounting
principles;
``(5) be implemented in a manner that is cost- effective and
improves program efficiency and effectiveness; and
``(6) be capable of being continually upgraded as necessary.
``(c) Rules of Construction.--Nothing in this section requires a
change to existing data exchange standards for Federal reporting found
to be effective and efficient.''.
(b) Applicability.--
(1) In general.--Not later than 2 years after the date of the
enactment of this Act, the Secretary of Housing and Urban
Development shall issue a proposed rule to carry out the amendments
made by subsection (a).
(2) Requirements.--The rule shall--
(A) identify federally required data exchanges;
(B) include specification and timing of exchanges to be
standardized;
(C) address the factors used in determining whether and
when to standardize data exchanges;
(D) specify State implementation options; and
(E) describe future milestones.
TITLE VI--REPORTS
SEC. 601. REPORT ON INTERAGENCY FAMILY ECONOMIC EMPOWERMENT
STRATEGIES.
The Secretary of Housing and Urban Development, in consultation
with the Secretary of Labor, shall submit a report to the Congress
annually that describes--
(1) any interagency strategies of such Departments that are
designed to improve family economic empowerment by linking housing
assistance with essential supportive services, such as employment
counseling and training, financial education and growth, childcare,
transportation, meals, youth recreational activities, and other
supportive services; and
(2) any actions taken in the preceding year to carry out such
strategies and the extent of progress achieved by such actions.
TITLE VII--HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS
SEC. 701. FORMULA AND TERMS FOR ALLOCATIONS TO PREVENT HOMELESSNESS
FOR INDIVIDUALS LIVING WITH HIV OR AIDS.
(a) In General.--Subsection (c) of section 854 of the AIDS Housing
Opportunity Act (42 U.S.C. 12903(c)) is amended by--
(1) redesignating paragraph (3) as paragraph (5); and
(2) striking paragraphs (1) and (2) and inserting the
following:
``(1) Allocation of resources.--
``(A) Allocation formula.--The Secretary shall allocate 90
percent of the amount approved in appropriations Acts under
section 863 among States and metropolitan statistical areas as
follows:
``(I) 75 percent of such amounts among--
``(I) cities that are the most populous unit of
general local government in a metropolitan statistical
area with a population greater than 500,000, as
determined on the basis of the most recent census, and
with more than 2,000 individuals living with HIV or
AIDS, using the data specified in subparagraph (B); and
``(II) States with more than 2,000 individuals
living with HIV or AIDS outside of metropolitan
statistical areas.
``(ii) 25 percent of such amounts among States and
metropolitan statistical areas based on the method
described in subparagraph (C).
``(B) Source of data.--For purposes of allocating amounts
under this paragraph for any fiscal year, the number of
individuals living with HIV or AIDS shall be the number of such
individuals as confirmed by the Director of the Centers for
Disease Control and Prevention, as of December 31 of the most
recent calendar year for which such data is available.
``(C) Allocation under subparagraph (A)(ii).--For purposes
of allocating amounts under subparagraph (A)(ii), the Secretary
shall develop a method that accounts for--
``(I) differences in housing costs among States and
metropolitan statistical areas based on the fair market
rental established pursuant to section 8(c) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(c)) or another
methodology established by the Secretary through
regulation; and
``(ii) differences in poverty rates among States and
metropolitan statistical areas based on area poverty
indexes or another methodology established by the Secretary
through regulation.
``(2) Maintaining grants.--
``(A) Continued eligibility of fiscal year 2016 grantees.--
A grantee that received an allocation in fiscal year 2016 shall
continue to be eligible for allocations under paragraph (1) in
subsequent fiscal years, subject to--
``(I) the amounts available from appropriations Acts
under section 863;
``(ii) approval by the Secretary of the most recent
comprehensive housing affordability strategy for the
grantee approved under section 105; and
``(iii) the requirements of subparagraph (C).
``(B) Adjustments.--Allocations to grantees described in
subparagraph (A) shall be adjusted annually based on the
administrative provisions included in fiscal year 2016
appropriations Acts.
``(C) Redetermination of continued eligibility.--The
Secretary shall redetermine the continued eligibility of a
grantee that received an allocation in fiscal year 2016 at
least once during the 10-year period following fiscal year
2016.
``(D) Adjustment to grants.--For each of fiscal years 2017,
2018, 2019, 2020, and 2021, the Secretary shall ensure that a
grantee that received an allocation in the prior fiscal year
does not receive an allocation that is 5 percent less than or
10 percent greater than the amount allocated to such grantee in
the preceding fiscal year.
``(3) Alternative grantees.--
``(A) Requirements.--The Secretary may award funds reserved
for a grantee eligible under paragraph (1) to an alternative
grantee if--
``(I) the grantee submits to the Secretary a written
agreement between the grantee and the alternative grantee
that describes how the alternative grantee will take
actions consistent with the applicable comprehensive
housing affordability strategy approved under section 105
of this Act;
``(ii) the Secretary approves the written agreement
described in clause (I) and agrees to award funds to the
alternative grantee; and
``(iii) the written agreement does not exceed a term of
10 years.
``(B) Renewal.--An agreement approved pursuant to
subparagraph (A) may be renewed by the parties with the
approval of the Secretary.
``(C) Definition.--In this paragraph, the term `alternative
grantee' means a public housing agency (as defined in section
3(b) of the United States Housing Act of 1937 (42 U.S.C.
1437a(b))), a unified funding agency (as defined in section 401
of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11360)), a State, a unit of general local government, or an
instrumentality of State or local government.
``(4) Reallocations.--If a State or metropolitan statistical
area declines an allocation under paragraph (1)(A), or the
Secretary determines, in accordance with criteria specified in
regulation, that a State or metropolitan statistical area that is
eligible for an allocation under paragraph (1)(A) is unable to
properly administer such allocation, the Secretary shall reallocate
any funds reserved for such State or metropolitan statistical area
as follows:
``(A) For funds reserved for a State--
``(I) to eligible metropolitan statistical areas within
the State on a pro rata basis; or
``(ii) if there is no eligible metropolitan statistical
areas within a State, to metropolitan cities and urban
counties within the State that are eligible for grant under
section 106 of the Housing and Community Development Act of
1974 (42 U.S.C. 5306), on a pro rata basis.
``(B) For funds reserved for a metropolitan statistical
area, to the State in which the metropolitan statistical area
is located.
``(C) If the Secretary is unable to make a reallocation
under subparagraph (A) or (B), the Secretary shall make such
funds available on a pro rata basis under the formula in
paragraph (1)(A).''.
(b) Amendment to Definitions.--Section 853 of the AIDS Housing
Opportunity Act (42 U.S.C. 12902) is amended--
(1) in paragraph (1), by inserting ``or `AIDS''' before
``means''; and
(2) by inserting at the end the following new paragraphs:
``(15) The term `HIV' means infection with the human
immunodeficiency virus.
``(16) The term `individuals living with HIV or AIDS' means,
with respect to the counting of cases in a geographic area during a
period of time, the sum of--
``(A) the number of living non-AIDS cases of HIV in the
area; and
``(B) the number of living cases of AIDS in the area.''.
Speaker of the House of Representatives.
Vice President of the United States and
President of the Senate.