[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3700 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 300
114th CONGRESS
  2d Session
                                H. R. 3700

                          [Report No. 114-397]

     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

                            January 28, 2016

   Additional sponsors: Mr. Cleaver, Mr. Sherman, Mr. Pittenger, Mr. 
 Pearce, Mr. Rothfus, Mr. Capuano, Mr. Barr, Mr. Posey, Mr. Sessions, 
                      Mr. Ribble, and Mr. McHenry

                            January 28, 2016

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on October 
                                7, 2015]


_______________________________________________________________________

                                 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. Collection of utility data.
Sec. 109. Public housing Capital and Operating Funds.
Sec. 110. Family unification program for children aging out of foster 
                            care.

                        TITLE II--RURAL HOUSING

Sec. 201. Delegation of guaranteed rural housing loan approval.

           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.

                         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 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 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.
                    ``(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.
                    ``(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 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.

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.''.

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 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.'';
            (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 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.'';
            (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 2015 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).''.

                        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.''.

           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 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. If the provisions of part 1228 of the Director of 
        the Federal Housing Finance Agency's regulations (12 C.F.R. 
        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 2015, 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 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. 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.
                                                 Union Calendar No. 300

114th CONGRESS

  2d Session

                               H. R. 3700

                          [Report No. 114-397]

_______________________________________________________________________

                                 A BILL

     To provide housing opportunities in the United States through 
   modernization of various housing programs, and for other purposes.

_______________________________________________________________________

                            January 28, 2016

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed