Short title

This Act may be cited as the

Tenants’ Right to Organize Act

Sense of the Congress

It is the sense of the Congress that all members of a household receiving tenant-based rental assistance have the right to decent, safe, stable and sanitary housing.

Housing choice voucher tenant organizations

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:

(23)

Right to organize

(A)

In general

Tenants receiving tenant-based rental assistance have the right to establish, operate, and participate in a resident organization for the purpose of addressing issues related to their living environment, which includes the terms and conditions of their tenancy as well as activities related to housing and community development and may not be retaliated against for asserting these rights.(B)

Required engagement

(i)

Public Housing Agencies

Each public housing agency shall—(I)recognize legitimate tenant organizations;(II)solicit comments from all legitimate tenant organizations not less than once each year; and(III)not later than 60 days after receiving a comment from a legitimate tenant organization, meaningfully respond in writing to such comment.(ii)

Owners of units

Each owner—(I)shall recognize legitimate resident organizations; and(II)may not retaliate with respect to any tenant because of their association with a legitimate resident organization. (C)

Protections

(i)

In general

Each public housing agency and each owner may not interfere with the right of tenants to establish and operate a legitimate tenant organization.(ii)

Protected activities

Each public housing agency and each owner shall allow tenants and tenant organizers to conduct the following activities related to the establishment or operation of a tenant organization: (I)Distributing leaflets in lobby areas. (II)Placing leaflets at or under tenants' doors.(III)Distributing leaflets in common areas.(IV)Initiating contact with tenants.(V)Conducting door-to-door surveys of tenants to ascertain interest in establishing a legitimate tenant organization and to offer information about tenant organizations.(VI)Posting information on bulletin boards.(VII)Assisting tenants to participate in tenant organization activities.(VIII)Convening regularly scheduled tenant organization meetings in a space on site and accessible to tenants, in a manner that is fully independent of management representatives. In order to preserve the independence of tenant organizations, management representatives may not attend such meetings unless invited by the tenant organization to specific meetings to discuss a specific issue or issues.(IX)Other reasonable activities related to the establishment or operation of a tenant organization.(iii)

Permission

A public housing agency or owner may not require tenants or tenant organizers to obtain prior permission before engaging in the activities permitted under this paragraph.(iv)

Presumption

If a public housing agency or owner takes an adverse action against a tenant that is a member of a tenant organization there shall be a rebuttable presumption that such adverse action is an act of retaliation relating to the participation of the tenant in the tenant organization.(D)

Enforcement protocol

(i)

In general

The Secretary shall, not later than 1 year after the date of the enactment of this paragraph, establish a protocol for the enforcement of this paragraph and such protocol shall—(I)include an independent investigation of tenant and advocate allegations of abuse and retaliation;(II)provide a mechanism for administrative complaints to be made and cataloged;(III)keep tenants regularly informed about the progression of any complaint;(IV)prohibit the withholding of tenant-based rental assistance from any tenant that makes a complaint, until such complaint is closed; and(V)provide confidentiality where necessary, including in cases where alleged abuse is extreme and targeted.(ii)

Delegation

In developing the enforcement protocol under clause (i), the Secretary may use subcontractors to preform enforcement activities. (iii)

Report

The Secretary shall each quarter submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs, a report with respect to the enforcement of this paragraph that—(I)provides all data at both the property-level and jurisdiction-level; and(II)includes information with respect to—(aa)the volume of outstanding complaints;(bb)the average response time for initial complaint; and(cc)the average time it takes to close a complaint.(iv)

Authorization of appropriations

There are authorized to be appropriated, to the Secretary, such sums as are necessary to carry out this paragraph. (E)

Notice of right to organize

(i)

In general

Each public housing agency shall notify each tenant receiving tenant-based rental assistance of the right to organize described in subparagraph (A) annually during the recertification process. (ii)

Tenancy addendum

The Secretary shall update the most recent Tenancy Addendum for the Section 8 Tenant-Based Assistance Housing Choice Voucher Program to describe the right to organize provided for in this subsection.(F)

Definitions

In this paragraph:(i)

Tenant organizer

The term tenant organizer means a tenant or non-tenant who assists tenants in establishing and operating a tenant organization, and who is not an employee or representative of current or prospective owners, managers, or their agents.(ii)

Legitimate tenant organization

The term legitimate tenant organization means an organization of 3 more tenants receiving tenant-based rental assistance that has been established for the purpose described in subparagraph (A).(iii)

Owner

The term owner means a person who owns a dwelling unit occupied by a tenant that receives rental assistance.

LIHTC tenant organizations

(a)

In general

Section 42(g) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph:

(10)

LIHTC tenant organizations

(A)

Rights of tenants

Tenants of rent-restricted units in any qualified low-income housing project shall have the same right as tenants described in section 8(o)(23)(A) of the United States Housing Act of 1937.(B)

Responsibilities of owners

(i)Each owner of qualified low-income housing project must meet the requirements in subparagraphs (B)(ii) and (C) of section 8(o)(23) of the United States Housing Act of 1937.(ii)If an owner fails to meet the requirements referred to in clause (i) with respect to any qualified low-income housing project, the credits allowed under this section with respect to such project shall be disallowed or recaptured in an amount that is proportionate to the violation, as determined by the Secretary, but in no case less than 5 percent of the credits claimed during the taxable year during which the violation occurred.(iii)In the case of any failure referred to in clause (ii) that occurs after the expiration of the project’s compliance period (as determined under subsection (i)(1)), the Secretary shall levy fines in accordance with a schedule determined by the Secretary that shall establish fines of not less than $500 per day for each day after the end of the correction period established by the Secretary. The Secretary shall establish such schedule not later than 120 days after the date of the enactment of this Act. The Secretary may delegate its duty to levy fines to the State housing credit agencies.(C)

Responsibilities of State Housing Agencies

(i)Each State housing credit agency must meet the requirements which are the same as the requirements of subparagraphs (B)(i) and (C) of section 8(o)(23) of the United States Housing Act of 1937.(ii)If a State housing credit agency fails to meet the requirements referred to in clause (i), there shall be a reduction in the State housing credit agency’s State housing credit ceiling (as calculated under subsection (h)(3)(C)) during the calendar year following a violation in an amount determined by the Secretary.(D)

Establishment of private right to action

Individuals who meet the income limitation applicable to the building under this subsection (whether prospective, present, or former occupants of the building) may file an action at law or in equity, in Federal or State court, including for injunctive relief, to enforce the various provisions of this section.(E)

Enforcement protocol

The Secretary, after consultation with the Secretary of Housing and Urban Development, shall—(i)establish a protocol for the enforcement of this paragraph which is the same as the protocol established under section 8(o)(23)(D)(i) of the United States Housing Act of 1937, except that, for purposes of this subparagraph, the reference in such section to tenant-based rental assistance shall be treated as a reference to the right of the tenant to occupy a rent-restricted unit and to any other right or privilege required to be provided to such tenant as a condition of the project being treated as a qualified low-income housing project, and(ii)submit each quarter to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report containing the information described in section 8(o)(23)(D)(ii) of the United States Housing Act of 1937 with respect to the enforcement of this paragraph with respect to qualified low-income housing projects.(F)

Notice of right to organize

Each State housing credit agency shall annually notify each owner and tenant of a rent-restricted unit of a qualified low-income housing project of the right to organize referred to in subparagraph (A).

(b)

Effective date

The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act.

Funding for tenant and other participation and capacity building

Paragraph (3) of section 514(f) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended—(1)in subparagraph (A)—(A)in the first sentence—(i)by striking not more than and inserting not less than;(ii)by striking of low-income housing for which project-based rental assistance is provided at below market rent levels and may not be renewed (including transfer of developments to tenant groups, nonprofit organizations, and public entities), for tenant services and inserting the following: and improvement of low-income housing for which project-based rental assistance, public housing subsidies, low-income housing tax credits, Federal or State subsidized loans, enhanced vouchers under section 8(t), or project-based vouchers under section 8(o) are provided or proposed; and(iii)in the second parenthetical clause, by inserting before the closing parenthesis the following: , and predevelopment assistance to enable such transfers; and(B)by inserting after the period at the end the following: For outreach and training of tenants and technical assistance, the Secretary shall implement a grant program utilizing performance-based outcome measures for eligible costs incurred. Recipients providing capacity building or technical assistance services to tenant groups shall be qualified nonprofit statewide, countywide, area-wide, or city-wide organizations with demonstrated experience including at least a two-year recent track record of organizing and providing assistance to tenants, and independence from the owner, a prospective purchaser, or their managing agents. The Secretary may provide assistance and training to grantees in administrative and fiscal management to ensure compliance with applicable Federal requirements. The Secretary shall expedite the provision of funding for the fiscal year in which the date of the enactment of this Act occurs and by entering into an interagency agreement for not less than $1,000,000 with the Corporation for National and Community Service to conduct a tenant outreach and training program to eligible housing under this subsection. The Secretary shall also make available flexible grants to qualified nonprofit organizations that do not own eligible multifamily properties, for tenant outreach in underserved areas, and to experienced national or regional nonprofit organizations to provide specialized training or support to grantees assisted under this section. Notwithstanding any other provision of law, funds authorized under this paragraph for any fiscal year shall be available for obligation in subsequent fiscal years. The Secretary shall require each recipient of amounts made available pursuant to this subparagraph to submit to the Secretary reports, on a quarterly basis, detailing the use of such funds and including such information as the Secretary shall require..

Clarification of tenant participation in multi-family projects

Section 202(a) of the Housing and Community Development Amendments of 1978 (12 U.S.C. 1715z–1b(a)) is amended by striking under section 1437f of title 42 and inserting under section 1437f of title 42, including a project assisted under section 8(o)(13) of the Housing Act of 1937.

Rulemaking

The Secretary of Housing and Urban Development shall, not later than 1 year after the date of the enactment of this section, issue a rule revising section 964.150 of title 24, Code of Federal Regulations, to permit housing agencies to fund $25 per unit per year for units represented by duly elected resident councils for resident services.

Survey

(a)

In general

The Secretary of Housing and Urban Development shall, not later than 1 year after the date of the enactment of this section, develop a resident survey protocol based on the National Standards for the Physical Inspection of Real Estate, that is designed to collect insights on resident experiences with the inspection process.(b)

Use of information

Information collected through the survey protocol developed pursuant to subsection (a) shall be used to—(1)identify inspection-related challenges for residents; (2)improve the satisfaction of residents with respect to their housing conditions;(3)ensure resident voices are heard; and (4)provide quality control.