[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3700 Introduced in House (IH)]
<DOC>
114th CONGRESS
1st Session
H. R. 3700
To provide housing opportunities in the United States through
modernization of various housing programs, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
October 7, 2015
Mr. Luetkemeyer introduced the following bill; which was referred to
the Committee on Financial Services
_______________________________________________________________________
A BILL
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 2015''.
(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. Prohibition on utility reimbursements; collection of utility
data.
Sec. 109. Public housing Capital and Operating Funds.
Sec. 110. Expansion of family unification program.
TITLE II--RURAL HOUSING
Sec. 201. Delegation of guaranteed rural housing loan approval.
Sec. 202. Rural multifamily housing revitalization program.
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. 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.
TITLE V--MISCELLANEOUS
Sec. 501. Inclusion of Disaster Housing Assistance Program in certain
fraud and abuse prevention measures.
Sec. 502. Amendments to Low-Income Housing Preservation and Resident
Homeownership Act of 1990.
Sec. 503. Budget-neutral demonstration program for energy and water
conservation improvements at multifamily
residential units.
Sec. 504. Energy efficiency requirements under Self-Help Homeownership
Opportunity program.
Sec. 505. Data exchange standardization for improved interoperability.
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).'';
(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 subparagraph (B)(ii);
``(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) Fixed-income families.--
``(i) Definitions.--For purposes of this
subparagraph, the following definitions shall
apply:
``(I) Eligible family.--The term
`eligible family' means a family who
has an income, as of the most recent
review conducted, of which 90 percent
or more consists of fixed income.
``(II) Fixed income.--The term
`fixed income' means income from--
``(aa) the supplemental
security income program under
title XVI of the Social
Security Act, including
supplementary payments pursuant
to an agreement for Federal
administration under section
1616(a) of the Social Security
Act and payments pursuant to an
agreement entered into under
section 212(b) of Public Law
93-66;
``(bb) any payment under
title II of the Social Security
Act;
``(cc) Federal, State,
local, and private pension
plans; and
``(dd) other periodic
payments received from
annuities, insurance policies,
retirement funds, disability or
death benefits, and other
similar types of periodic
receipts that are of
substantially the same amounts
from year to year.
``(ii) Self-certification and 3-year review
for fixed-income families.--A public housing
agency or owner shall not be required to
conduct a review of an eligible family's income
pursuant to subparagraph (A)(ii) for any year
in which such eligible family certifies, in
accordance with such requirements as the
Secretary shall establish, that the sources of
such income have not changed since the previous
year, except that the public housing agency or
owner shall conduct a review of each such
eligible family's income not less frequently
than once every 3 years.
``(iii) Inflationary adjustment for fixed
income families.--
``(I) In general.--In any year in
which a public housing agency or owner
does not conduct a review of income for
an eligible family pursuant to the
authority under clause (ii) to waive
such a review, the income determination
of such eligible family for the
previous year shall, subject to
subclause (II) of this clause, be
adjusted by applying an inflationary
factor as the Secretary shall establish
by regulation or notice.
``(II) Exemption from adjustment.--
A public housing agency or owner may
exempt from an adjustment described in
subclause (I) any income source for
which income does not increase from
year to year.
``(C) In general.--Reviews of family income for
purposes of this section shall be subject to the
provisions of section 904 of the Stewart B. McKinney
Homeless Assistance Amendments Act of 1988 (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 (6)(B), 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 procedures to enable public
housing agencies and owners to have access to such
income 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) 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, except that the amount specified in
this subparagraph (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.
``(B) Dependents.--In the case of any family, $525
for each member who--
``(i) is less than 18 years of age or
attending school or vocational training on a
full-time basis; or
``(ii) is a person who is 18 years of age
or older, resides in the household, and is
certified as disabled and unable to work by the
public housing agency of jurisdiction,
except that the amount specified in this subparagraph
(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.
``(C) Child care.--The amount, if any, that exceeds
5 percent of annual family income that is used to pay
for unreimbursed child care expenses, which shall
include child care for preschool-age children, for
before- and after-care for children in school, and for
other child care necessary to enable a member of the
family to be employed or 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 may provide hardship exemptions for
impacted families by regulation, if the Secretary
determines calculated rents endanger families unable to
pay such amount because of financial hardship. 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 (6) and (7) of section
3(a) and to''; and
(ii) by striking ``and shall be conducted
upon the initial provision of housing
assistance for the family and thereafter not
less than annually''; 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.
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 (C), in the case of any family residing in
a dwelling unit of public housing whose income for the
most recent two consecutive years has exceeded 120
percent of the median income for the area, as
determined pursuant to an income review conducted
pursuant to section 3(a)(6), 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 sum 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; and
``(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 120 percent of the median income for
the area, upon the conclusion of such year the public
housing agency shall provide written notice to such
family of the requirements under subparagraph (A).
``(C) 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)).''.
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.''.
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 ``structures'' each place such term appears
and inserting ``projects'';
(3) 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.'';
(4) 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 2015.
``(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.'';
(5) 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.'';
(6) in subparagraph (G), by striking ``15 years'' and
inserting ``20 years'';
(7) 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 2015 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.'';
(8) 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.'';
(9) in subparagraph (M)(ii), by inserting before the period
at the end the following: ``relating to funding other than
housing assistance payments''; and
(10) 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. PROHIBITION ON UTILITY REIMBURSEMENTS; COLLECTION OF UTILITY
DATA.
(a) Housing Choice Vouchers.--Section 8(o) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)) is amended--
(1) in paragraph (2)(D), by adding at the end the following
new clause:
``(iii) Prohibition on payments.--
Notwithstanding any other provision of this
Act, no amount may be reimbursed or paid to, or
credited for, any family assisted under this
subsection by reason of any excess in the
utility allowance for such family.''; and
(2) 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.''.
(b) Public Housing and Other Section 8 Programs.--Subsection (a) of
section 3 of the United States Housing Act of 1937 (42 U.S.C.
1437a(a)), as amended by the preceding provisions of this Act, is
further amended by adding at the end the following new paragraph:
``(8) Prohibition on utility reimbursements.--
Notwithstanding any other provision of this Act, no amount may
be reimbursed or paid to, or credited for, any family residing
in a public housing dwelling unit or assisted under section 8
(other than under subsection (o)) by reason of any excess in
the utility allowance for such family.''.
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. EXPANSION OF FAMILY UNIFICATION PROGRAM.
Section 8(x) of the United States Housing Act of 1937 (42 U.S.C.
1437f(x)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A)(ii), by striking ``care
and'' and inserting ``care,'';
(B) in subparagraph (B)--
(i) by striking ``18 months'' and inserting
``36 months''; and
(ii) by striking ``older.'' and inserting
``older, and''; and
(C) by inserting at the end the following:
``(C) for a period not to exceed 36 months,
otherwise eligible youths who have attained 16 or 17
years of age and who have left foster care, if the
service provider signs the lease for the dwelling unit
for which the voucher is used and provides on-site
supportive services (as defined in section 401 of the
McKinney-Vento Homeless Assistance Act (42 U.S.C.
11360)) that are appropriate for the supervision of
such youth within the housing community in which such
dwelling unit is located.''; and
(2) in paragraph (4), by adding at the end the following
new subparagraph:
``(C) Service provider.--The term `service
provider' shall have the meaning given such term by the
Secretary.''.
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. RURAL MULTIFAMILY HOUSING REVITALIZATION PROGRAM.
Section 515 of the Housing Act of 1949 (42 U.S.C. 1485) is amended
by adding at the end the following new subsection:
``(bb) Multifamily Housing Revitalization Program.--
``(1) In general.--The Secretary may establish a
Multifamily Housing Revitalization Program for the preservation
and revitalization of multifamily housing projects funded with
loans made available pursuant to this section and sections 514
and 516 to ensure that such projects have sufficient resources
to provide safe and affordable housing for low-income residents
and farm laborers.
``(2) Options.--In carrying out paragraph (1), the
Secretary may--
``(A) with respect such loans--
``(i) reduce or eliminate interest;
``(ii) defer loan payments; and
``(iii) subordinate, reduce, or reamortize
loan debt; and
``(B) provide other financial assistance,
including--
``(i) advances; and
``(ii) payments and incentives (including
the ability of owners to obtain reasonable
returns on investment).
``(3) Requirements.--In exchange for assistance provided
pursuant to this subsection, the Secretary shall enter into
with the property owner a restrictive use agreement to ensure
that the property remains subject to low-income use
restrictions for an additional period of time consistent with
the terms of the restructuring.
``(4) Use of funds for rural housing vouchers.--
``(A) Authority.--If the Secretary determines that
additional funds for vouchers under the rural housing
voucher program under section 542 (42 U.S.C. 1490r) are
needed, funds for the revitalization program under this
subsection may be used for such vouchers for any low-
income household (including those not receiving rental
assistance) residing in a property financed with a loan
under this section that has been prepaid after
September 30, 2005.
``(B) Amount.--Notwithstanding section 542, the
amount of a voucher provided pursuant to this paragraph
shall be the difference between comparable market rent
for the unit and the tenant-paid rent for such unit.
``(C) Availability.--Funds made available for
vouchers pursuant to this paragraph shall be subject to
the availability of annual appropriations.
``(D) Administration.--The Secretary shall, to the
maximum extent practicable, administer vouchers
provided pursuant to this paragraph with current
regulations and administrative guidance applicable to
housing vouchers under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f) administered by
the Secretary of Housing and Urban Development.''.
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.
``(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 C.F.R. 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.
``(4) Owner-occupancy requirement.--
``(A) Reduction to 35 percent.--Except as provided
in subparagraph (B) of this paragraph and
notwithstanding any other law, regulation, or guideline
of the Secretary, 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.
``(B) Other considerations.--The Secretary may
increase the percentage applicable pursuant to
subparagraph (A) to a condominium project on a project-
by-project 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. CONTINUUM OF CARE PROGRAM.
(a) Authority Private Nonprofit Organizations To Administer
Permanent Housing Rental Assistance.--Subsection (g) of section 423 of
the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11383(g)) is
amended by inserting ``private nonprofit organization,'' after ``unit
of general local government,''.
(b) Reallocation of Funds.--Paragraph (1) of section 414(d) of the
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11373(d)(1)) is
amended by striking ``twice'' and inserting ``once''.
(c) Definition of Geographic Areas.--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 2015, the Secretary shall
issue a notice setting forth the definition required by subsection
(a).''.
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 2015; and
``(G) 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.
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. AMENDMENTS TO LOW-INCOME HOUSING PRESERVATION AND RESIDENT
HOMEOWNERSHIP ACT OF 1990.
(a) Distributions and Residual Receipts.--Section 222 of the Low-
Income Housing Preservation and Resident Homeownership Act of 1990 (12
U.S.C. 4112) is amended by adding at the end the following new
subsection:
``(e) Distribution and Residual Receipts.--
``(1) Authority.--After the date of the enactment of the
Housing Opportunity Through Modernization Act of 2015, the
owner of a property subject to a plan of action or use
agreement pursuant to this section shall be entitled to
distribute--
``(A) annually, all surplus cash generated by the
property, but only if the owner is in material
compliance with such use agreement including compliance
with prevailing physical condition standards
established by the Secretary; and
``(B) notwithstanding any conflicting provision in
such use agreement, any funds accumulated in a residual
receipts account, but only if the owner is in material
compliance with such use agreement and has completed,
or set aside sufficient funds for completion of, any
capital repairs identified by the most recent third
party capital needs assessment.
``(2) Operation of property.--An owner that distributes any
amounts pursuant to paragraph (1) shall--
``(A) continue to operate the property in
accordance with the affordability provisions of the use
agreement for the property for the remaining useful
life of the property;
``(B) as required by the plan of action for the
property, continue to renew or extend any project-based
rental assistance contract for a term of not less than
20 years; and
``(C) if the owner has an existing multi-year
project-based rental assistance contract for less than
20 years, have the option to extend the contract to a
20-year term.''.
(b) Future Financing.--Section 214 of the Low-Income Housing
Preservation and Resident Homeownership Act of 1990 (12 U.S.C. 4104) is
amended by adding at the end the following new subsection:
``(c) Future Financing.--Neither this section, nor any plan of
action or use agreement implementing this section, shall restrict an
owner from obtaining a new loan or refinancing an existing loan secured
by the project, or from distributing the proceeds of such a loan;
except that, in conjunction with such refinancing--
``(1) the owner shall provide for adequate rehabilitation
pursuant to a capital needs assessment to ensure long-term
sustainability of the property satisfactory to the lender or
bond issuance agency;
``(2) any resulting budget-based rent increase shall
include debt service on the new financing, commercially
reasonable debt service coverage, and replacement reserves as
required by the lender; and
``(3) for tenants of dwelling units not covered by a
project- or tenant-based rental subsidy, any rent increases
resulting from the refinancing transaction may not exceed 10
percent per year, except that--
``(A) any tenant occupying a dwelling unit as of
time of the refinancing may not be required to pay for
rent and utilities, for the duration of such tenancy,
an amount that exceeds the greater of--
``(i) 30 percent of the tenant's income; or
``(ii) the amount paid by the tenant for
rent and utilities immediately before such
refinancing; and
``(B) this paragraph shall not apply to any tenant
who does not provide the owner with proof of income.
Paragraph (3) may not be construed to limit any rent increases
resulting from increased operating costs for a project.''.
(c) Implementation.--The Secretary of Housing and Urban Development
shall issue any guidance that the Secretary considers necessary to
carry out the provisions added by the amendments made by subsections
(a) and (b) not later than the expiration of the 120-day period
beginning on the date of the enactment of this Act.
SEC. 503. BUDGET-NEUTRAL DEMONSTRATION PROGRAM FOR ENERGY AND WATER
CONSERVATION IMPROVEMENTS AT MULTIFAMILY RESIDENTIAL
UNITS.
(a) Establishment.--The Secretary of Housing and Urban Development
(in this section referred to as the ``Secretary'') shall establish a
demonstration program under which the Secretary may execute budget-
neutral, performance-based agreements in fiscal years 2016 through 2019
that result in a reduction in energy or water costs with such entities
as the Secretary determines to be appropriate under which the entities
shall carry out projects for energy or water conservation improvements
at not more than 20,000 residential units in multifamily buildings
participating in--
(1) the project-based rental assistance program under
section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f), other than assistance provided under section 8(o) of
that Act;
(2) the supportive housing for the elderly program under
section 202 of the Housing Act of 1959 (12 U.S.C. 1701q); or
(3) the supportive housing for persons with disabilities
program under section 811(d)(2) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 8013(d)(2)).
(b) Requirements.--
(1) Payments contingent on savings.--
(A) In general.--The Secretary shall provide to an
entity a payment under an agreement under this section
only during applicable years for which an energy or
water cost savings is achieved with respect to the
applicable multifamily portfolio of properties, as
determined by the Secretary, in accordance with
subparagraph (B).
(B) Payment methodology.--
(i) In general.--Each agreement under this
section shall include a pay-for-success
provision that--
(I) shall serve as a payment
threshold for the term of the
agreement; and
(II) requires that payments shall
be contingent on realized cost savings
associated with reduced utility
consumption in the participating
properties.
(ii) Limitations.--A payment made by the
Secretary under an agreement under this
section--
(I) shall be contingent on
documented utility savings; and
(II) shall not exceed the utility
savings achieved by the date of the
payment, and not previously paid, as a
result of the improvements made under
the agreement.
(C) Third-party verification.--Savings payments
made by the Secretary under this section shall be based
on a measurement and verification protocol that
includes at least--
(i) establishment of a weather-normalized
and occupancy-normalized utility consumption
baseline established pre-retrofit;
(ii) annual third-party confirmation of
actual utility consumption and cost for
utilities;
(iii) annual third-party validation of the
tenant utility allowances in effect during the
applicable year and vacancy rates for each unit
type; and
(iv) annual third-party determination of
savings to the Secretary.
An agreement under this section with an entity shall
provide that the entity shall cover costs associated
with third-party verification under this subparagraph.
(2) Terms of performance-based agreements.--A performance-
based agreement under this section shall include--
(A) the period that the agreement will be in effect
and during which payments may be made, which may not be
longer than 12 years;
(B) the performance measures that will serve as
payment thresholds during the term of the agreement;
(C) an audit protocol for the properties covered by
the agreement;
(D) a requirement that payments shall be contingent
on realized cost savings associated with reduced
utility consumption in the participating properties;
and
(E) such other requirements and terms as determined
to be appropriate by the Secretary.
(3) Entity eligibility.--The Secretary shall--
(A) establish a competitive process for entering
into agreements under this section; and
(B) enter into such agreements only with entities
that, either jointly or individually, demonstrate
significant experience relating to--
(i) financing or operating properties
receiving assistance under a program identified
in subsection (a);
(ii) oversight of energy or water
conservation programs, including oversight of
contractors; and
(iii) raising capital for energy or water
conservation improvements from charitable
organizations or private investors.
(4) Geographical diversity.--Each agreement entered into
under this section shall provide for the inclusion of
properties with the greatest feasible regional and State
variance.
(5) Properties.--A property may only be included in the
demonstration under this section only if the property is
subject to affordability restrictions for at least 15 years
after the date of the completion of any conservation
improvements made to the property under the demonstration
program. Such restrictions may be made through an extended
affordability agreement for the property under a new housing
assistance payments contract with the Secretary of Housing and
Urban Development or through an enforceable covenant with the
owner of the property.
(c) Plan and Reports.--
(1) Plan.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall submit to the
Committees on Appropriations and Financial Services of the
House of Representatives and the Committees on Appropriations
and Banking, Housing, and Urban Affairs of the Senate a
detailed plan for the implementation of this section.
(2) Reports.--Not later than 1 year after the date of
enactment of this Act, and annually thereafter, the Secretary
shall--
(A) conduct an evaluation of the program under this
section; and
(B) submit to Congress a report describing each
evaluation conducted under subparagraph (A).
(d) Funding.--For each fiscal year during which an agreement under
this section is in effect, the Secretary may use to carry out this
section any funds appropriated to the Secretary for the renewal of
contracts under a program described in subsection (a).
SEC. 504. 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. 505. 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.), as amended by the
preceding provisions of this Act, is further amended by adding at the
end the following new section:
``SEC. 38. 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.
<all>