[Congressional Record Volume 143, Number 35 (Tuesday, March 18, 1997)]
[Senate]
[Pages S2438-S2439]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. MACK (for himself, Mr. D'Amato, Mr. Bond, Mr. Faircloth 
        and Mr. Grams):

  S. 462. A bill to reform and consolidate the public and assisted 
housing programs of the United States, and to redirect primary 
responsibility for these programs from the Federal Government to States 
and localities, and for other purposes; to the Committee on Banking, 
Housing, and Urban Affairs.


        THE PUBLIC HOUSING REFORM AND RESPONSIBILITY ACT OF 1997

  Mr. MACK. Mr. President, I am today introducing, along with Senators 
D'Amato, Bond, Faircloth, and Grams, the Public Housing Reform and 
Responsibility Act of 1997. This bill is similar to public and assisted 
housing reform legislation, S. 1260, that was introduced in the 104th 
Congress and passed unanimously by the Senate.
  The Public Housing Reform and Responsibility Act of 1997 addresses a 
public housing system fraught with counterproductive rules and 
regulations that make it impossible for even the best run public 
housing authorities [PHA's] to operate effectively and efficiently. It 
will help to make public housing a platform from which residents can 
achieve the goal of economic independence and self-sufficiency. In 
addition, it promotes increased residential choice and mobility by 
increasing opportunities for residents to use tenant-based assistance.
  Most public housing today serves only the poorest of the poor--on 
average those with incomes at 17 percent of area median. The gap 
between tenant rent contributions and the cost of operating public 
housing is growing wider than the ability of Federal housing subsidy 
funds to close it. PHA's are denied the flexibility necessary to 
maintain the existing supply of public housing in decent and safe 
condition, and in some cases are even constrained from demolishing 
vacant or nonviable public housing developments.
  Just as these rules have made it difficult for housing authorities to 
provide and maintain decent and safe housing or to meet basic operating 
costs, these rules have been even worse for tenants. They have 
destroyed the ability of families to move up and out of public housing 
and become economically self-sufficient. Public housing rent rules, in 
particular, create strong economic disincentives for residents to work 
or seek higher paying jobs.
  The following reforms contained in the Public Housing Reform and 
Responsibility Act represent significant improvements in current public 
and assisted housing policies.
  First, the bill consolidates a multitude of programs into two 
flexible block grants to expand the eligible uses of funds and allow 
more creative and efficient use of resources. The bill also repeals a 
number of current programs that are obsolete, unused, or unfunded.
  Second, it institutes permanent rent reforms such as ceiling rents, 
earned income adjustments, and minimum rents that provide PHA's with 
the tools to develop rental policies that encourage and reward work and 
further the goal of creating mixed-income communities. The bill also 
removes the floor on rents that may be charged under the Brooke 
amendment, while assuring that poor families will not pay more than 30 
percent of their income for rent.
  Third, the bill requires tough, swift action against PHA's with 
severe management deficiencies and provides HUD or court-appointed 
receivers with the necessary tools and powers to deal with troubled 
agencies and protect public housing residents.
  Fourth, it requires intervention with respect to severely distressed 
public housing developments that trap residents in deplorable living 
conditions and are costly to operate or maintain. It provides residents 
with alternative housing using vouchers or other available housing.
  Fifth, the bill permanently repeals the one-for-one replacement 
requirement and streamlines the demolition and disposition process to 
permit PHA's to demolish or sell vacant or obsolete public housing.
  Sixth, it gives PHA's broad flexibility to develop or participate 
with other providers of affordable housing in the development of mixed-
income, mixed finance developments.
  Seventh, it repeals Federal preferences that have had the unintended 
consequence of concentrating the poorest of the poor in public housing 
developments and allows PHA's to operate according to locally 
established preferences consistent with local housing

[[Page S2439]]

needs. The bill still maintains the requirement that most housing 
assistance be targeted to very low-income households.
  Eighth, the Public Housing Reform and Responsibility Act calls on 
PHA's to increase coordination with State and local welfare agencies to 
ensure that welfare recipients living in public housing will have the 
full opportunity to move from welfare to work.
  Ninth, the bill provides residents with an active voice in developing 
the local PHA plans that will govern the operations and management of 
housing and for direct participation on housing authority boards of 
directors. It also authorizes funds for resident organizations to 
develop resident management and empowerment activities.
  Finally, it merges the Section 8 voucher and certificate programs 
into a single, choice-based program designed to operate more 
effectively in the private marketplace. It repeals requirements that 
are administratively burdensome to landlords, such as take-one, take-
all, endless lease and 90-day termination notice requirements. These 
reforms will make participation in the section 8 tenant-based program 
more attractive to private landlords and increase housing choices for 
lower income families.
  The reforms contained in this legislation will significantly improve 
the nation's public housing and tenant-based rental assistance program 
and the lives of those who reside in Federally assisted housing. The 
funding flexibility, substantial deregulation of the day-to-day 
operations and policies of public authorities, encouragement of mixed-
finance developments, policies to deal with distressed and troubled 
public housing, and rent reforms will change the face of public housing 
for PHA's, residents, and local communities.
  Reform of the public housing system has been and should remain a 
bipartisan effort. I look forward to working with all of my colleagues 
toward early passage of this legislation.
  Mr. President, I ask unanimous consent that additional material be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

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