[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.
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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
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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.
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