[Congressional Record Volume 142, Number 64 (Thursday, May 9, 1996)]
[House]
[Pages H4753-H4755]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




   AUTHORIZING THE CLERK TO MAKE CORRECTIONS IN ENGROSSMENT OF HOUSE 
        AMENDMENT TO S. 1260, UNITED STATES HOUSING ACT OF 1996

  Mr. LAZIO of New York. Mr. Speaker, I ask unanimous consent that in 
the engrossment of the House amendment to S. 1260, the Clerk be 
authorized to correct section numbers, cross-references, punctuation 
and indentation, and to make any other technical and conforming change 
necessary to reflect the actions of the House.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New York?
  There was no objection.

[[Page H4754]]



SUMMARY OF MANAGER'S AMENDMENT TO H.R. 2406, UNITED STATES HOUSING ACT 
                                OF 1996

  Mr. LAZIO of New York. Mr. Speaker, I ask unanimous consent to insert 
in the Record a summary of the manager's amendment.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from New York?
  There was no objection.

                       Managers Amendment Summary


                              Brooke Rents

       This provision protects the very poor currently in public 
     housing. It would put a cap on rent of up to 30% of income 
     for families with income levels at or below 30% of area 
     median income (currently, about 76% of the public housing 
     inventory is occupied by such families). It would also impose 
     a rent cap of up to 30% of family income for the elderly and 
     disabled currently occupying public housing, regardless of 
     their income levels. Adding the elderly brings the number of 
     residents that would pay no more than 30% of their income as 
     rent to 83% of current public housing residents. Adding the 
     disabled would bring the number of those paying 30% of their 
     income or below as rent up to 87% of public housing 
     residents.
       For prospective residents, those families with income 
     levels at or below 30% of area median income would continue 
     to pay up to but no more than 30% of their income as rent. It 
     is important to note that the Brooke Amendment currently 
     imposes a 30% floor on rents--a family will pay 30% of their 
     income as rent. If their income goes up, their rent will go 
     up. Chairman Lazio eliminates this disincentive--very poor 
     families will pay no more than 30% of their income as rent--
     if their income goes up, the percentage of income that goes 
     to rent could decrease.
       For any families that may be subject to rent increases as a 
     result of increased flexibility given to housing authorities, 
     any rent increases over a certain amount will be phased-in 
     over a period of up to three years, and other resident 
     protections are provided.


                             Minimum Rents

       Most all agree that everyone who resides in public housing 
     should contribute something in return for their housing. H.R. 
     2406 provides for mandatory minimum rents of no less than 
     $25, but no more than $50, within the discretion of the local 
     housing authorities. The local authorities are given 
     discretion to grant ``hardship exceptions'' to protect those 
     that may truly not be able to pay the minimum rent. No 
     residents will be made homeless as a result of the passage of 
     H.R. 2406.


                               Targeting

       This provision maintains a good amount of public housing 
     geared toward serving the very poor. H.R. 2406 Reported 
     required that 25% of a local housing authority's inventory 
     would be for those at 30% or below of area median income. 
     Chairman Lazio Manager's Amendment has increased the 
     targeting level of public housing--at least 30% of public 
     housing units must go to those at 30% or below of area median 
     income, a level that would still enable housing authorities 
     over time to create more income-mixed communities. For 
     choice-based rental assistance, H.R. 2406 Reported contained 
     no targeting provisions. The Manager's Amendment provides for 
     a level of targeting whereby 50% of rental-based assistance 
     will go to those at 60% of area median income, ensuring that 
     the greater portion of such assistance shall go to lower-
     income families.


              Moving-To-Work for the Twenty-First Century

       Finally, the Manager's Amendment has provided for the 
     creation of a forward-looking program that would enable 
     housing authorities to set rents, design and test various 
     approaches for providing and administering housing 
     assistance, give incentives to families to obtain employment 
     and become self-sufficient, and increase housing choices and 
     homeownership opportunities for lower-income families. One 
     hundred high-performing local housing authorities will be 
     selected each year for three years, and given the 
     administrative flexibility to craft programs that would 
     create an atmosphere where residents can succeed and 
     ``graduate'' from public housing.


            review of housing management plans by secretary

       This provision requires the Secretary to consider 
     Management Plans that ``adequately identify'' the needs of 
     low-income families and capital improvement needs. 
     Additionally, the Secretary is authorized to reject 
     management plans that are ``plainly inappropriate'' and 
     inconsistent with this Act.


                   public housing resident employment

       This provision conforms the existing Housing and Urban 
     Development Act of 1968 to H.R. 2406, and encourages 
     employment of public housing residents in public housing 
     development or modernization programs.


                       creates two funding grants

       This provision modifies the current bill text by replacing 
     one grant with two grants for capital needs and operation 
     expenses. The amendment will allow modest fungibility of no 
     more than 10% from the capital fund towards use in the 
     operating fund. The capital fund is authorized at $2.5 
     billion for fiscal years 1977 through 2000; the operating 
     fund is authorized at $2.8 billion for fiscal years 1977 
     through 2000. (Both funds at the FY 1996 enacted funded 
     levels.)


                accreditation and performance evaluation

       This provision modifies the Accreditation Board provisions 
     to avoid duplicative functions undertaken by HUD and provides 
     authority to the National Center for Housing Management 
     (created by Executive Order in 1972) to create the Board 
     during the first year. The Center will assist in determining 
     performance indicators for evaluating local housing and 
     management authorities. Additionally, this provision provides 
     for the development of comprehensive and performance audits 
     of the housing authorities.


       revises statement of purpose to emphasize self-sufficiency

       This provision revises the statement of purpose to 
     emphasize the intent to create and facilitate housing 
     authorities that ultimately partner with residents to achieve 
     self-sufficiency and transitioning out of public and assisted 
     housing.


                  creates homeownership opportunities

       This provision would clarify homeownership opportunities 
     provided under the legislation and the ability of the housing 
     authority and other low-income housing providers to undertake 
     the process of preparation and sale of units to residents 
     eligible for homeownership.


               creates tenant self-sufficiency contracts

       This provision requires the housing authority to enter into 
     binding agreements with recipients of public and assisted 
     housing to undertake activities and programs that will 
     culminate in self-sufficiency, transitioning and eventual 
     graduation from public and assisted housing by a date certain 
     contingent on the special and unique factors of the resident. 
     The housing authority is authorized to enter into 
     partnerships with state and local agencies, non-profits 
     groups, academic institutions, and other groups with 
     experience in facilitating self-sufficiency and graduation 
     from public assistance. The agreements will be attached and 
     incorporated into the lease and provide exemptions for 
     elderly, disabled, students, and the certified impaired; 
     additionally, changed circumstances can be taken into account 
     in modifying the agreement. The Secretary is authorized to 
     partner with resident council organizations to create a model 
     self-sufficiency tenant agreement for voluntary use by the 
     housing authority.


                   election of resident board members

       This provision requires resident membership on the Board of 
     Directors of the local housing and management authority, with 
     certain exceptions set forth in the statute. Language has 
     been added requiring that such representative is elected by 
     the residents of the authority, with procedures and 
     guidelines for such elections to be set forth by the 
     Secretary.


           national commission on housing assistance programs

       An independent National Commission on Housing Programs 
     Cost, is established for purposes of analyzing the full cost 
     to the Federal Government, public housing agencies, State and 
     local governments, and other parties, per assisted household, 
     of the Federal assisted housing programs so that accurate per 
     unit cost comparisons may be made between Federal assisted 
     housing programs. The Commission will have nine members, 
     three of which are appointed by the Secretary of HUD, three 
     by the Senate, and three by the House. The activities of the 
     Commission are authorized from amounts from HUD's Office of 
     Policy Development and Research.


                        hud occupancy provision

       This provision clarifies HUD occupancy policy by requiring 
     HUD to follow state occupancy standards that prevent 
     overcrowding and preclude federal government occupancy 
     standards. In the absence of state occupancy standards, a two 
     person per-bed policy is assumed reasonable.


         required conversion of building assistance to vouchers

       This provision clarifies and provides guidance on the 
     factors necessary to require conversion of public housing 
     assistance to vouchers, including whether the building(s) (i) 
     is not viable, (ii) consists of vacancy rates of 10% or more 
     without any plans for modernization, (iii) are not cost-
     effective for modernization, and (iv) consist of at least 300 
     units either in one building or on a contiguous site. 
     Therefore, financial assistance for severely distressed 
     buildings with no eventual useful life will be terminated and 
     converted to housing voucher assistance.


               voluntary vouchering-out of public housing

       Local housing and management authorities, at their option, 
     are given the power to convert public housing assistance into 
     tenant-based assistance where the authority can demonstrate 
     that the conversion will not be more expensive than 
     continuing to operate the public housing development and will 
     principally benefit the residents of the development, the 
     local housing and management authority, and the community.


                      resident opportunity program

       This provision allows the Secretary to provide technical 
     assistance to resident councils for economic uplift (job-
     training, economic development, security and other self-
     sufficiency) and provides authority to require the

[[Page H4755]]

     housing authority to become a co-grantee for administrative 
     purposes. This provision will provide accountability through 
     the housing authority and preclude fraudulent and abusive 
     practices recently highlighted by hearings of the Committee 
     on Government Operations.


                  portability and administrative fees

       Restores portability to the voucher program and solves some 
     of the administrative problems associated with portability by 
     directing the Secretary of HUD to take steps to ensure that 
     the local housing authority that provides the services for a 
     family receives all or part of the administrative fee. To 
     prevent ``waiting list shopping'', the legislative enables a 
     local housing authority to require that a family that 
     receives assistance live in that jurisdiction for twelve 
     months after the initial receipt of assistance.


                Shopping Incentive for Assisted Families

       This provision allows for shopping incentives for assisted 
     families under Choice-Based housing that rewards the market-
     rate selection or rental units that fall below the payment 
     standard for that community. In cases where savings occur, 
     the government will reward the tenant, while reducing the 
     budget deficit by providing a savings account in the tenant's 
     name for 50% of the savings incurred by selecting a quality 
     but below rental market unit. The remaining 50% will be 
     returned to the federal government for deficit reduction. The 
     tenant may withdraw the money annually at the end of each 
     year's lease agreement.


Prohibitions on Occupancy for Public and Assisted Housing for Criminal 
  or illegal Drug/Alcohol Abuse and Screening, Grievance and Eviction 
                                Reforms

       This legislation incorporates S. 1494--The Housing 
     Opportunity Program Extension Act of 1996, enacted as Pub. L. 
     104-120 and extends tenant screening reforms to owners of 
     assisted housing, i.e. non-public housing, including rural 
     multifamily housing developments receiving assistance under 
     the Housing Act of 1949. The owners of assisted housing and 
     housing authorities may deny assistance to potential 
     residents who have been convicted of criminal activity during 
     the preceding three years prior to application for 
     assistance. S. 1494/Pub. L. 104-120 provided flexibility to 
     housing authorities to (i) designate certain developments 
     elderly or disabled only; (ii) evict residents who threaten 
     the safety of elderly and disabled residents in such 
     designated housing; and (iii) expedite grievance and eviction 
     procedures for drug-related and other criminal activity ``on 
     or off'' the premises.
       In addition to conforming language to S. 1494/Pub. L. 104-
     120, this provision provides access of criminal records, 
     under strict confidentiality protections and penalties for 
     misuse, for assisted housing screening. [Pub. L. 104-120 
     covered only public housing, while this provision extends 
     those screening provisions to most federally-assisted 
     housing.]


                 CDBG Entitlement Community Designation

       This provision grandfathers communities designated CDBG 
     entitlement communities, based on a population of a least 
     50,000 residents, for at lest one year after 1989. [Some 
     communities were eligible in 1990 and upon the findings of 
     the 1990 census implemented in 1992-93, lost their 
     eligibility status, notwithstanding their eligibility status 
     in 1990.]


                  CDBG Disaster Relief for Los Angeles

       This provision extends, through 1998, the authority of the 
     Los Angeles entitlement community to use no more than 25% of 
     CDBG funds for public services during the reconstruction of 
     some low and very-low income neighborhoods after the 1992 
     civil disturbance. [Congress had previously extended the 
     public service cap from 15% to 24% for Los Angeles during the 
     1992 Housing Bill in response the Los Angeles crisis.]


  Homeless and Surplus Property Community Participation and Self-Help 
                                Housing

       This provision will amended Sec. 203 of the Federal 
     Property Administrative Services Act by providing communities 
     an opportunity to participate in the disposition of 
     significant surplus property. Upon local review and 
     collaboration, the GSA could transfer significant surplus 
     property to homeless or non-profit low-income housing 
     providers that undertake self-help housing. This provision 
     will encourage homeownership and housing through significant 
     participation (sweet-equity) by the potential residents. 
     Title Vl of the McKinney Act is not repealed and surplus 
     property not considered ``significant'' or approved by the 
     local government will be processed through the current 
     McKinney surplus property requirements.


              Rural Communities and Military Installations

       This provision designates Altus, Oklahoma as a rural 
     community, through the year 2000, for purposes of 
     eligibility of the Rural Housing Service programs, such as 
     single and multifamily development. [The 20,000 population 
     threshold was slightly exceeded because of a decennial 
     census count that incorporated the population of a nearby 
     military installation.]


                   portsmouth va revitalization plan

       Requires HUD to implement a revitalization plan for the 
     City of Portsmouth, Virginia.


        income eligibility standards for HOME and CDBG programs

       Clarifies eligibility for HOME and CDBG programs so that 
     all families earning up to 80% of area median income are 
     eligible.


                  project in new brunswick, new jersey

       Allows Pennrose Properties, a low-income housing developer, 
     to use low-income housing tax credits allocated in 1991 for 
     use in rehabilitating a 98-unit project for the elderly. The 
     reservation of these tax credits would otherwise lapse.


                          definition of adult

       Modifies the restrictions on divulging the criminal records 
     of those convicted of crimes who are not adults to make also 
     available the criminal records of minors who are tried and 
     convicted as adults.


 prohibition of federal indemnification of intellectual property right 
                              infringement

       Prohibit local housing authorities from using federal funds 
     to indemnify contractors from judgments of infringement of 
     intellectual property rights.


         conversion of a limited number of project-based units

       Permits property owners to convert a portion of project-
     based units, upon vacancy, to market rate provided units are 
     above the fair market rent for an area and the amount of 
     contract subsidy saved is transferred to a local housing 
     authority for use as choice-based certificates.


                           wage requirements

       Narrows one of the exceptions to certain prevailing wage 
     requirements that must be followed by a local housing 
     authority.


             choice-based screening and eviction procedures

       In connection with drug and other criminal activity, 
     provides greater screening and eviction authority for most 
     federally assisted housing, including section 8 project 
     based.


                        hope vi planning grants

       Provides a preference for previously awarded HOPE VI 
     planning grants that were not funded by HUD.


                          gold clause contract

       Clarifies interpretation of gold clause contract provision 
     to terminate unintended consequences of 1977 law, including 
     unfair treatment to leaseholders. The amendment ensures that 
     the old gold clauses apply only when such a clause is the 
     explicit intention of both parties to the contract.


                  rockland county, ny, ceiling limits

       Removes Rockland County from the metropolitan statistical 
     area of New York for the establishment of any ceilings or 
     limits based on income under the Act.

                          ____________________