[Congressional Record Volume 143, Number 53 (Tuesday, April 29, 1997)]
[House]
[Pages H1989-H2007]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                               AMENDMENTS

  Under clause 6 of rule XXIII, proposed amendments were submitted as 
follows:

                                 H.R. 2

                        Offered By: Ms. DeGette

       Amendment No. 1: Page 71, line 19, before the semicolon 
     insert ``and including child care services for public housing 
     residents''.

                                 H.R. 2

                         Offered By: Mr. DeLay

       Amendment No. 2: Page 99, after line 11, insert the 
     following new subsection:
       (e) Time Limitation on Occupancy by Families Receiving 
     Welfare Assistance.--
       (1) 2-year limitation.--Each public housing agency shall 
     limit the duration of occupancy in a public housing dwelling 
     unit of any family that includes an individual who, as an 
     adult, receives assistance under any welfare program (or 
     programs) for 24 consecutive months occurring after the 
     effective date of this Act, to such 24 consecutive months.
       (2) Treatment of temporary stoppage of assistance.--For 
     purposes of paragraph (1), nonconsecutive months in which an 
     individual receives assistance under a welfare program shall 
     be treated as being consecutive if such months are separated 
     by a period of 6 months or less during which the individual 
     does not receive such assistance.
       (3) Inapplicability to pha's without waiting lists.--The 
     provisions of paragraph (1) shall not apply to any public 
     housing agency that, upon the conclusion of the 24-month 
     period referred to in such paragraph for any family, does not 
     have any eligible families on a waiting list for occupancy in 
     such public housing who are without units because of a lack 
     of available units.
       (4) Exceptions for working, elderly, and disabled 
     families.--The provisions of paragraph (1) shall not apply 
     to--
       (A) any family that contains an adult member who, during 
     the 24-month period referred to in such paragraph, obtains 
     employment; except that, if at any time during the 12-month 
     period beginning upon the commencement of such employment, 
     the family does not contain an adult member who has 
     employment, the provisions of paragraph (1) shall apply and 
     the nonconsecutive months during which the family did not 
     contain an employed member shall be treated for purposes of 
     such paragraph as being consecutive;
       (B) any elderly family; or
       (C) any disabled family.
       (5) Preferences for families moving to find employment.--A 
     public housing agency may, in establishing preferences under 
     section 321(d), provide a preference for any family that--
       (A) occupied a public housing dwelling unit owned or 
     operated by a different public housing agency, but was 
     limited in the duration of such occupancy by reason of 
     paragraph (1) of this subsection; and
       (B) is determined by the agency to have moved to the 
     jurisdiction of the agency to obtain employment.
       (6) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       (A) Welfare program.--The term ``welfare program'' means a 
     program for aid or assistance under a State program funded 
     under part A of title IV of the Social Security Act (as in 
     effect before or after the effective date of the amendments 
     made by section 103(a) of the Personal Responsibility and 
     Work Opportunity Reconciliation Act of 1996).
       (B) Employment.--The term ``employment'' means employment 
     in a position that--
       (i) is not a job training or work program required under a 
     welfare program; and
       (ii) involves an average of 20 or more hours of work per 
     week.

                                 H.R. 2

                         Offered By: Mr. Frank

       Amendment No. 3: Page 35, after line 23, insert the 
     following new subsection:
       (h) Effectiveness Only If Funded.--
       (1) Applicability of requirements only in years funded.--
     Subject only to paragraph (2) and notwithstanding any other 
     provision of this section, this section shall be effective 
     for any fiscal year only if amounts are or have been provided 
     in appropriation Acts for such fiscal year specifically for 
     covering all costs of public housing agencies of entering 
     into, monitoring, and enforcing agreements under this section 
     and other costs arising from such agreements. There are 
     authorized to be appropriated for each fiscal year such sums 
     as may be necessary for providing assistance to public 
     housing agencies to cover such costs.
       (2) Effect of failure to fund.--If, for any fiscal year, 
     the amounts required under paragraph (1) are not provided, 
     this section shall be applied for such fiscal year as 
     follows:
       (A) Substitution of option for requirements.--The following 
     substitutions shall apply:
       (i) Substitute ``may'' for ``shall'' in each of the 
     following places:
       (I) The first place such term appears in subsection (a)(1).
       (II) In subsection (b)(1).
       (III) The first place such term appears in subsection 
     (d)(1).

[[Page H1990]]

       (IV) In subsection (e).
       (ii) In subsection (a)(2), substitute ``Any'' for ``The''.
       (iii) In subsection (a)(3), substitute ``any requirement'' 
     for ``the requirement''.
       (iv) In subsection (b)(2), substitute ``any target date'' 
     for ``the target date''.
       (v) In the second sentence of subsection (d)(1), substitute 
     ``any such agreement'' for ``the agreement''.
       (vi) In subsection (d)(2)--
       (I) in the matter preceding subparagraph (A), substitute 
     ``Any'' for ``An'';
       (II) in subparagraph (B), substitute ``any requirements'' 
     for ``the requirements''; and
       (III) in subparagraph (C), substitute ``Any'' for ``The''.
       (vii) In subsection (e)--
       (I) in paragraph (1), substitute ``any requirement'' for 
     ``the requirement''; and
       (II) in paragraph (2), substitute ``any conditions'' for 
     ``the conditions''.
       (B) Treatment of contracts.--If a public housing agency so 
     chooses (in the sole discretion of the agency), any 
     requirement under subsection (a) or (b) that is contained in 
     any community work and family self-sufficiency contract under 
     subsection (d) previously entered into by the agency or in 
     any provision previously incorporated pursuant to subsection 
     (e) into any lease for public housing of the agency or 
     housing assisted under title III by the agency shall be 
     treated, for such fiscal year, as not having any force or 
     effect.

                                 H.R. 2

                         Offered By: Mr. Frank

       Amendment No. 4: Page 89, after line 13, insert the 
     following:
       (e) Operating Fund Amounts.--For each of fiscal years 1998, 
     1999, 2000, 2001, and 2002, the Congress shall provide for 
     the allocations from the operating fund for grants such 
     amounts as are necessary to enable public housing agencies to 
     fully serve family, elderly, and disabled households with the 
     range of income levels reflected in their local housing 
     management plans and permissible under this Act, based on 
     public policy and not on the need to generate revenue. Such 
     amount shall not, for any fiscal year, be less than--
       (1) for any fiscal year described in subsection (b)(2), the 
     full amount for all public housing agencies determined in 
     accordance with the performance funding system under section 
     9 of the United States Housing Act of 1937, as in effect upon 
     the date of the enactment of this Act, as revised pursuant to 
     subparagraphs (C) and (D) of subsection (d)(1); or
       (2) for any fiscal year described in subsection (b)(1), the 
     full amount for all public housing agencies determined under 
     subsection 204(b)(1).

     The minimum amount required, under paragraph (1) or (2) shall 
     not be reduced for any fiscal year by estimates of the 
     Department of Housing and Urban Development of cost 
     reductions or of increases in income that have not been 
     realized in advance of the fiscal year.

                                 H.R. 2

                         Offered By: Mr. Frank

       Amendment No. 5: Page 102, strike line 1 and all that 
     follows through line 7 on page 104, and insert the following:

     SEC. 225. FAMILY RENTAL PAYMENT.

       (a) Rental Contribution by Resident.--A family residing in 
     a public housing dwelling shall pay as monthly rent for the 
     unit an amount, determined by the public housing agency, that 
     does not exceed the greatest of the following amounts 
     (rounded to the nearest dollar):
       (A) 30 percent of the monthly adjusted income of the 
     family.
       (B) 10 percent of the monthly income of the family.
       (C) If the family is receiving payments for welfare 
     assistance from a public agency and a part of such payments, 
     adjusted in accordance with the actual housing costs of the 
     family, is specifically designated by such agency to meet the 
     housing costs of the family, the portion of such payments 
     that is so designated.
       (b) Minimum Rental Amount.--Each public housing agency 
     shall require
       Page 105, strike line 21 and all that follows through line 
     19 on page 106.
       Page 107, strike ``, except that'' on line 2 and all that 
     follows through line 5, and insert a period.

                                 H.R. 2

                       Offered By: Mr. Gutierrez

       Amendment No. 6: Page 170, line 24, after ``agency'' insert 
     ``or other state and local government entities''

                                 H.R. 2

                       Offered By: Mr. Gutierrez

       Amendment No. 7: Page 287, after line 15, insert the 
     following:
       (6) Tenant rents.--
       (A) In general.--An owner of qualified housing may provide, 
     with respect to such housing, that, notwithstanding section 
     3(a)(1) of the United States Housing Act of 1937, the rent 
     paid by tenants of assisted dwelling units in such housing 
     shall be the lower of the amount provided under such section 
     3(a)(1) or 60 percent of the fair market rental established 
     pursuant to section 8(c)(1) of such Act for the area and size 
     of dwelling unit occupied by the tenant. Upon the request of 
     an owner, the Secretary may provide for rent limitations 
     under this paragraph for qualified housing that are higher or 
     lower than 60 percent of the fair market rental on the basis 
     of the Secretary's finding that such variations are necessary 
     to carry out the provisions of this paragraph and are 
     consistent with the purposes of this paragraph.
       (B) Qualified housing.--For purposes of this subparagraph, 
     the term ``qualified housing'' means housing for which--
       (i) section 8 project-based assistance is provided; and
       (ii) not more than 15 percent of the tenants have rents, at 
     the time the owner first limits rents pursuant to 
     subparagraph (A), in an amount exceeding the maximum amount 
     provided pursuant to the limitation under subparagraph (A).
       (C) Limitation based on tenants incomes.--If, at any time, 
     in a housing project for which section 8 project-based 
     assistance is provided, more than 40 percent of the tenants 
     would be paying a rent limited by 60 percent of the fair 
     market rental, any rent limitation applicable under this 
     paragraph to such project shall not thereafter apply to any 
     tenant not subject at such time to the rent limitation, until 
     the percentage of tenants in the project eligible for such 
     limited rent decreases to below 40 percent.
       (D) Inapplicability to elderly-only projects.--The 
     provisions of this paragraph shall not apply with respect to 
     any housing project that is designated for occupancy only by 
     elderly families.
       Page 287, line 16, strike ``(6)'' and insert ``(7)''.

                                 H.R. 2

                  Offered By: Mr. Jackson of Illinois

       Amendment No. 8: Page 25, line 25, strike the second comma 
     and all that follows through the comma in line 3 on page 26.
       Page 27, after line 10, insert the following:
       (4) Rights of occupancy.--This subsection may not be 
     construed (nor may any provision of subsection (d) or (e)) to 
     create a right on the part of any public housing agency to 
     evict or terminate assistance for a family solely on the 
     basis of any failure of the family to comply with the 
     community work requirement under paragraph (1).
       Page 33, line 14, before the comma insert ``(except to the 
     extent that this section specifically limits any authority to 
     evict or terminate assistance)''.

                                 H.R. 2

                  Offered By: Mr. Jackson of Illinois

       Amendment No. 9: Page 27, line 7, strike ``or''.
       Page 27, line 10, strike the period and insert ``; or''.
       Page 27, after line 10, insert the following:
       (E) a single parent, grandparent, or spouse of an otherwise 
     exempt individual, who is the primary caretaker of 1 or 
     more--
       (i) children who are 6 years of age or under;
       (ii) elderly persons; or
       (iii) persons with disabilities.
       Page 29, line 3, strike ``or''.
       Page 29, line 6, strike the period and insert ``; or''.
       Page 29, after line 6, insert the following:
       (5) a single parent, grandparent, or spouse of an otherwise 
     exempt individual, who is the primary caretaker of 1 or 
     more--
       (A) children who are 6 years of age or under;
       (B) elderly persons; or
       (C) persons with disabilities.

                                 H.R. 2

                Offered By: Mr. Kennedy of Massachusetts


               (Amendment in the Nature of a Substitute)

       Amendment No. 10: Strike out all after the enacting clause 
     and insert in lieu thereof the following:

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Public 
     Housing Management Reform Act of 1997''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows--
Sec. 1. Short title and table of contents.
Sec. 2. Findings and purposes.

                TITLE I--PUBLIC HOUSING AND RENT REFORMS

Sec. 101. Establishment of capital and operating funds.
Sec. 102. Determination of rental amounts for residents.
Sec. 103. Minimum rents for public housing and section 8.
Sec. 104. Public housing ceiling rents.
Sec. 105. Disallowance of earned income from public housing and section 
              8 rent and family contribution determinations.
Sec. 106. Public housing homeownership.
Sec. 107. Public housing agency plan.
Sec. 108. PHMAP indicators for small PHA's.
Sec. 109. PHMAP self-sufficiency indicator.
Sec. 110. Expansion of powers for dealing with PHA's.
Sec. 111. Public housing site-based waiting lists.
Sec. 112. Community service requirements for public housing and section 
              8 programs.
Sec. 113. Comprehensive improvement assistance program streamlining.
Sec. 114. Flexibility for PHA funding.
Sec. 115. Replacement housing resources.
Sec. 116. Repeal of one-for-one replacement housing requirement.
Sec. 117. Demolition, site revitalization, replacement housing, and 
              tenant-based assistance grants for developments.
Sec. 118. Performance evaluation board.
Sec. 119. Economic development and supportive services for public 
              housing residents.

[[Page H1991]]

Sec. 120. Penalty for slow expenditure of modernization funds.
Sec. 121. Designation of PHA's as troubled.
Sec. 122. Volunteer services under the 1937 Act.
Sec. 123. Authorization of appropriations for operation safe home 
              program.

                    TITLE II--SECTION 8 STREAMLINING

Sec. 201. Permanent repeal of Federal preferences.
Sec. 202. Income targeting for public housing and section 8 programs.
Sec. 203. Merger of tenant-based assistance programs.
Sec. 204. Section 8 administrative fees.
Sec. 205. Section 8 homeownership.
Sec. 206. Welfare to work certificates.
Sec. 207. Effect of failure to comply with public assistance 
              requirements.
Sec. 208. Streamlining section 8 tenant-based assistance.
Sec. 209. Nondiscrimination against certificate and voucher holders.
Sec. 210. Recapture and reuse of ACC project reserves under tenant-
              based assistance program.
Sec. 211. Expanding the coverage of the Public and Assisted Housing 
              Drug Elimination Act of 1990.
Sec. 212. Study regarding rental assistance.

     TITLE III--``ONE-STRIKE AND YOU'RE OUT'' OCCUPANCY PROVISIONS

Sec. 301. Screening of applicants.
Sec. 302. Termination of tenancy and assistance.
Sec. 303. Lease requirements.
Sec. 304. Availability of criminal records for public housing tenant 
              screening and eviction.
Sec. 305. Definitions.
Sec. 306. Conforming amendments.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--The Congress finds that--
       (1) we have a shared national interest in creating safe, 
     decent and affordable housing because, for all Americans, 
     housing is an essential building block toward holding a job, 
     getting an education, participating in the community, and 
     helping fulfill our national goals;
       (2) the American people recognized this shared national 
     interest in 1937, when we created a public housing program 
     dedicated to meeting these needs while creating more hope and 
     opportunity for the American people;
       (3) for 60 years America's public housing system has 
     provided safe, decent, and affordable housing for millions of 
     low-income families, who have used public housing as a 
     stepping stone toward greater stability, independence, and 
     homeownership;
       (4) today, more than 3,300 local public housing agencies--
     95 percent of all housing agencies throughout America--are 
     providing a good place for families to live and fulfilling 
     their historic mission;
       (5) yet, for all our progress as a nation, today, only one 
     out of four Americans who needs housing assistance receives 
     it;
       (6) at the same time, approximately 15 percent of the 
     people who live in public housing nationwide live in housing 
     with management designated as ``troubled'';
       (7) for numerous developments at these troubled public 
     housing agencies and elsewhere, families face a overwhelming 
     mix of crime, drug trafficking, unemployment, and despair, 
     where there is little hope for a better future or a better 
     life;
       (8) the past 60 years have resulted in a system where 
     outdated rules and excessive government regulation are 
     limiting our ability to propose innovative solutions and 
     solve problems, not only at the relatively few local public 
     housing agencies designated as troubled, but at the 3,300 
     that are working well;
       (9) obstacles faced by those agencies that are working 
     well--multiple reports and cumbersome regulations--make a 
     compelling case for deregulation and for concentration by the 
     Department of Housing and Urban Development on fulfillment of 
     the program's basic mission;
       (10) all told, the Department has drifted from its original 
     mission, creating bureaucratic processes that encumber the 
     people and organizations it is supposed to serve;
       (11) under a framework enacted by Congress, the Department 
     has begun major reforms to address these problems, with 
     dramatic results;
       (12) public housing agencies have begun to demolish and 
     replace the worst public housing, reduce crime, promote 
     resident self-sufficiency, upgrade management, and end the 
     isolation of public housing developments from the working 
     world;
       (13) the Department has also recognized that for public 
     housing to work better, the Department needs to work better, 
     and has begun a major overhaul of its organization, 
     streamlining operations, improving management, building 
     stronger partnerships with state and local agencies and 
     improving its ability to take enforcement actions where 
     necessary to assure that its programs serve their intended 
     purposes; and
       (14) for these dramatic reforms to succeed, permanent 
     legislation is now needed to continue the transformation of 
     public housing agencies, strip away outdated rules, provide 
     necessary enforcement tools, and empower the Department and 
     local agencies to meet the needs of America's families.
       (b) Purpose.--It is the purpose of this Act--
       (1) to completely overhaul the framework and rules that 
     were put in place to govern public housing 60 years ago;
       (2) to revolutionize the way public housing serves its 
     clients, fits in the community, builds opportunity, and 
     prepares families for a better life;
       (3) to reaffirm America's historic commitment to safe, 
     decent, and affordable housing and to remove the obstacles to 
     meeting that goal;
       (4) to continue the complete and total overhaul of 
     management of the Department;
       (5) to dramatically deregulate and reorganize the Federal 
     Government's management and oversight of America's public 
     housing;
       (6) to ensure that local public housing agencies spend more 
     time delivering vital services to residents and less time 
     complying with unessential regulations or filing unessential 
     reports;
       (7) to achieve greater accountability of taxpayer funds by 
     empowering the Federal Government to take firmer, quicker, 
     and more effective actions to improve the management of 
     troubled local housing authorities and to crack down on poor 
     performance;
       (8) to preserve public housing as a rental resource for 
     low-income Americans, while breaking down the extreme social 
     isolation of public housing from mainstream America;
       (9) to provide for revitalization of severely distressed 
     public housing, or its replacement with replacement housing 
     or tenant-based assistance;
       (10) to integrate public housing reform with welfare reform 
     so that welfare recipients--many of whom are public housing 
     residents--can better chart a path to independence and self-
     sufficiency;
       (11) to anchor in a permanent statute needed changes that 
     will result in the continued transformation of the public 
     housing and tenant-based assistance programs--including 
     deregulating well-performing housing agencies, ensuring 
     accountability to the public, providing sanctions for poor 
     performers, and providing additional management tools;
       (12) to streamline and simplify the tenant-based Section 8 
     program and to make this program workable for providing 
     homeownership; and
       (13) through these comprehensive measures, to reform the 
     United States Housing Act of 1937 and the programs 
     thereunder.
                TITLE I--PUBLIC HOUSING AND RENT REFORMS

     SEC. 101. ESTABLISHMENT OF CAPITAL AND OPERATING FUNDS.

       (a) Capital Fund.--Section 14(a) of the United States 
     Housing Act of 1937 is amended--
       (1) by redesignating paragraphs (1) through (5) as 
     subparagraphs (A) through (E), respectively;
       (2) by inserting the paragraph designation ``(2)'' before 
     ``It is the purpose''; and
       (3) by inserting the following new paragraph (1) 
     immediately after the subsection designation ``(a)'':
       ``(1) The Secretary shall establish a Capital Fund under 
     this section for the purpose of making assistance available 
     to public housing agencies in accordance with this 
     section.''.
       (b) Operating Fund.--Section 9(a) of the United States 
     Housing Act of 1937 is amended by striking ``Sec. 9. 
     (a)(1)(A) In addition to'' and inserting the following:
       ``Sec. 9. (a) The Secretary shall establish an Operating 
     Fund under this section for the purpose of making assistance 
     available to public housing agencies in accordance with this 
     section.
       ``(1)(A) In addition to''.

     SEC. 102. DETERMINATION OF RENTAL AMOUNTS FOR RESIDENTS OF 
                   PUBLIC HOUSING.

       (a) In General.--Section 3 of the United States Housing Act 
     of 1937 is amended--
       (1) in subsection (a)(1), by revising subparagraph (A) to 
     read as follows:
       ``(A)(i) if the family is assisted under section 8 of this 
     Act, 30 percent of the family's monthly adjusted income; or
       ``(ii) if the family resides in public housing, an amount 
     established by the public housing agency not to exceed 30 
     percent of the family's monthly adjusted income;''; and
       (2) in subsection (b)(5)--
       (A) after the semicolon following subparagraph (F), by 
     inserting ``and'';
       (B) in subparagraph (G), by striking ``; and'' and 
     inserting a period; and
       (C) by striking subparagraph (H).
       (b) Revised Operating Subsidy Formula.--The Secretary, in 
     consultation with interested parties, shall establish a 
     revised formula for allocating operating assistance under 
     section 9 of the United States Housing Act of 1937, which 
     formula may include such factors as:
       (1) standards for the costs of operation and reasonable 
     projections of income, taking into account the character and 
     location of the public housing project and characteristics of 
     the families served, or the costs of providing comparable 
     services as determined with criteria or a formula 
     representing the operations of a prototype well-managed 
     public housing project;
       (2) the number of public housing dwelling units owned and 
     operated by the public housing agency, the percentage of 
     those units that are occupied by very low-income families, 
     and, if applicable, the reduction in the number of public 
     housing units as a result of any conversion to a system of 
     tenant-based assistance;
       (3) the degree of household poverty served by a public 
     housing agency;
       (4) the extent to which the public housing agency provides 
     programs and activities designed to promote the economic 
     self-sufficiency and management skills of public housing 
     tenants;

[[Page H1992]]

       (5) the number of dwelling units owned and operated by the 
     public housing agency that are chronically vacant and the 
     amount of assistance appropriate for those units;
       (6) the costs of the public housing agency associated with 
     anti-crime and anti-drug activities, including the costs of 
     providing adequate security for public housing tenants;
       (7) the ability of the public housing agency to effectively 
     administer the Operating Fund distribution of the public 
     housing agency;
       (8) incentives to public housing agencies for good 
     management;
       (9) standards for the costs of operation of assisted 
     housing compared to unassisted housing; and
       (10) an incentive to encourage public housing agencies to 
     increase nonrental income and to increase rental income 
     attributable to their units by encouraging occupancy by 
     families whose incomes have increase while in occupancy and 
     newly admitted families; such incentive shall provide that 
     the agency shall derive the full benefit of any increase in 
     nonrental or rental income, and such increase shall not 
     result in a decrease in amounts provided to the agency under 
     this title; in addition, an agency shall be permitted to 
     retain, from each fiscal year, the full benefit of such an 
     increase in nonrental or rental income, except to the extent 
     that such benefit exceeds (A) 100 percent of the total amount 
     of the operating amounts for which the agency is eligible 
     under this section, and (B) the maximum balance permitted for 
     the agency's operating reserve under this section and any 
     regulations issued under this section.
       (c) Transition Provision.--Prior to the establishment and 
     implementation of an operating subsidy formula under 
     subsection (b), if a public housing agency establishes a 
     rental amount that is less than 30 percent of the family's 
     monthly adjusted income pursuant to section 3(a)(1)(A)(ii) of 
     the United States Housing Act of 1937, as amended by 
     subsection (a)(1), the Secretary shall not take into account 
     any reduction of or increase in the public housing agency's 
     per unit dwelling rental income resulting from the use of 
     such rental amount when calculating the contributions under 
     section 9 of the United States Housing Act of 1937 for the 
     public housing agency for the operation of the public 
     housing.

     SEC. 103. MINIMUM RENTS FOR PUBLIC HOUSING AND SECTION 8 
                   PROGRAMS.

       The second sentence of section 3(a)(1) of the United States 
     Housing Act of 1937 is amended--
       (1) at the end of subparagraph (B), by striking ``or'';
       (2) in subsection (C), by striking the period and inserting 
     ``; or''; and
       (3) by inserting the following at the end:
       ``(D) $25.
     Where establishing the rent or family contribution based on 
     subparagraph (D) would otherwise result in undue hardship (as 
     defined by the Secretary or the public housing agency) for 
     one or more categories of affected families described in the 
     next sentence, the Secretary or the public housing agency may 
     exempt one or more such categories from the requirements of 
     this paragraph and may require a lower minimum monthly rental 
     contribution for one or more such categories. The categories 
     of families described in this sentence shall include families 
     subject to situations in which (i) the family has lost 
     eligibility for or is awaiting an eligibility determination 
     for a Federal, State, or local assistance program; (ii) the 
     family would be evicted as a result of the imposition of the 
     minimum rent requirement under subsection (c); (iii) the 
     income of the family has decreased because of changed 
     circumstance, including loss of employment; and (iv) a death 
     in the family has occurred; and other families subject to 
     such situations as may be determined by the Secretary or the 
     agency. Where the rent or contribution of a family would 
     otherwise be based on subparagraph (D) and a member of the 
     family is an immigrant lawfully admitted for permanent 
     residence (as those terms are defined in sections 101(a)(15) 
     and 101(a)(20) of the Immigration and Nationality Act (8 
     U.S.C. 1101(a)(15) and 8 U.S.C. 1101(a)(20)) who would have 
     been entitled to public benefits but for title IV of the 
     Personal Responsibility and Work Opportunity Reconciliation 
     Act of 1996, notwithstanding any other provision of this 
     section, a public housing agency shall exempt the family from 
     the requirements of this paragraph.''.

     SEC. 104. PUBLIC HOUSING CEILING RENTS.

       (a) Section 3(a)(2)(A) of the United States Housing Act of 
     1937, as amended by section 402(b)(1) of The Balanced Budget 
     Downpayment Act, I, is amended to read as follows:
       ``(A) adopt ceiling rents that reflect the reasonable 
     market value of the housing, but that are not less than--
       ``(i) for housing other than housing predominantly for 
     elderly or disabled families (or both), 75 percent of the 
     monthly cost to operate the housing of the agency;
       ``(ii) for housing predominantly for elderly or disabled 
     families (or both), 100 percent of the monthly cost to 
     operate the housing of the agency; and
       ``(iii) the monthly cost to make a deposit to a replacement 
     reserve (in the sole discretion of the public housing 
     agency); and''.
       (b) Notwithstanding section 402(f) of The Balanced Budget 
     Downpayment Act, I, the amendments made by section 402(b) of 
     that Act shall remain in effect after fiscal year 1997.

     SEC. 105. DISALLOWANCE OF EARNED INCOME FROM PUBLIC HOUSING 
                   AND SECTION 8 RENT AND FAMILY CONTRIBUTION 
                   DETERMINATIONS.

       (a) In General.--Section 3 of the United States Housing Act 
     of 1937 is amended--
       (1) by striking the undesignated paragraph at the end of 
     subsection (c)(3) (as added by section 515(b) of Public Law 
     101-625); and
       (2) by adding at the end the following new subsection:
       ``(d) Disallowance of Earned Income From Public Housing and 
     Section 8 Rent and Family Contribution Determinations.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, the rent payable under subsection (a) by, the family 
     contribution determined in accordance with subsection (a) 
     for, a family--
       ``(A) that--
       ``(i) occupies a unit in a public housing project; or
       ``(ii) receives assistance under section 8; and
       ``(B) whose income increases as a result of employment of a 
     member of the family who was previously unemployed for one or 
     more years (including a family whose income increases as a 
     result of the participation of a family member in any family 
     self-sufficiency or other job training program);may not be 
     increased as a result of the increased income due to such 
     employment during the 18-month period beginning on the date 
     on which the employment is commenced.
       ``(2) Phase-in of rate increases.--After the expiration of 
     the 18-month period referred to in paragraph (1), rent 
     increases due to the continued employment of the family 
     member described in paragraph (1)(b) shall be phased in over 
     a subsequent 3-year period.
       ``(3) Overall limitation.--Rent payable under subsection 
     (a) shall not exceed the amount determined under subsection 
     (a).''.
       (b) Applicability of Amendment.--
       (1) Public housing.--Notwithstanding the amendment made by 
     subsection (a), any tenant of public housing participating in 
     the program under the authority contained in the undesignated 
     paragraph at the end of the section 3(c)(3) of the United 
     States Housing Act of 1937, as that paragraph existed on the 
     day before the date of enactment this Act, shall be governed 
     by that authority after that date.
       (2) Section 8.--The amendments made by subsection (a) shall 
     apply to tenant-based assistance provided by a public housing 
     agency under section 8 of the United States Housing Act of 
     1937 on and after October 1, 1998, but shall apply only to 
     the extent approved in appropriation Acts.

     SEC. 106. PUBLIC HOUSING HOMEOWNERSHIP.

       Section 5(h) of the United States Housing Act of 1937 is 
     amended--
       (1) in the first sentence, by striking ``lower income 
     tenants,'' and inserting the following: ``low-income tenants, 
     or to any organization serving as a conduit for sales to such 
     tenants,''; and
       (2) by adding the following two sentences at the end: ``In 
     the case of purchase by an entity that is an organization 
     serving as a conduit for sales to such tenants, the entity 
     shall sell the units to low-income families within five years 
     from the date of its acquisition of the units. The entity 
     shall use any net proceeds from the resale and from managing 
     the units, as determined in accordance with guidelines of the 
     Secretary, for housing purposes, such as funding resident 
     organizations and reserves for capital replacements.''.

     SEC. 107. PUBLIC HOUSING AGENCY PLAN.

       The United States Housing Act of 1937 is amended by 
     inserting after section 5 the following new section:

     ``SEC. 5A. PUBLIC HOUSING AGENCY PLAN.

       ``(a) Contents of Plan.--(1) Each public housing agency 
     shall submit to the Secretary a public housing agency plan 
     that shall consist of the following parts, as applicable--
       ``(A) A statement of the housing needs of low-income and 
     very low-income families residing in the community served by 
     the public housing agency, and of other low-income families 
     on the waiting list of the agency (including the housing 
     needs of elderly families and disabled families), and the 
     means by which the agency intends, to the maximum extent 
     practicable, to address such needs.
       ``(B) The procedures for outreach efforts (including 
     efforts that are planned and that have been executed) to 
     homeless families and to entities providing assistance to 
     homeless families, in the jurisdiction of the public housing 
     agency.
       ``(C) For assistance under section 14, a 5-year 
     comprehensive plan, as described in section 14(e)(1).
       ``(D) For assistance under section 14, the annual 
     statement, as required under section 14(e)(3).
       ``(E) An annual description of the public housing agency's 
     plans for the following activities--
       ``(i) demolition and disposition under section 18;
       ``(ii) homeownership under section 5(h); and
       ``(iii) designated housing under section 7.
       ``(F) An annual submission by the public housing agency 
     consisting of the following information--
       ``(i) tenant selection admission and assignment policies, 
     including any admission preferences;
       ``(ii) rent policies, including income and rent calculation 
     methodology, minimum rents, ceiling rents, and income 
     exclusions, disregards, or deductions;

[[Page H1993]]

       ``(iii) any cooperation agreements between the public 
     housing agency and State welfare and employment agencies to 
     target services to public housing residents (public housing 
     agencies shall use best efforts to enter into such 
     agreements); and
       ``(iv) anti-crime and security plans, including--
       ``(I) a strategic plan for addressing crime on or affecting 
     the sites owned by the agency, which shall provide, on a 
     development-by-development basis, for measures to ensure the 
     safety of public housing residents, shall be established, 
     with respect to each development, in consultation with the 
     police officer or officers in command for the precinct in 
     which the development is located, shall describe the need for 
     measures to ensure the safety of public housing residents and 
     for crime prevention measures, describe any such activities 
     conducted, or to be conducted, by the agency, and provide for 
     coordination between the public housing agency and the 
     appropriate police precincts for carrying out such measures 
     and activities;
       ``(II) a statement of activities in furtherance of the 
     strategic plan to be carried out with assistance under the 
     Public and Assisted Housing Drug Elimination Act of 1990;
       ``(III) performance criteria regrading the effective use of 
     such assistance; and
       ``(IV) any plans for the provision of anti-crime assistance 
     to be provided by the local government in addition to the 
     assistance otherwise required to be provided by the agreement 
     for local cooperation under section 5(e)(2) or other 
     applicable law.
     Where a public housing agency has no changes to report in any 
     of the information required under this subparagraph since the 
     previous annual submission, the public agency shall only 
     state in its annual submission that it has made no changes. 
     If the Secretary determines, at any time, that the security 
     needs of a development are not being adequately addressed by 
     the strategic crime plan for the agency under clause (iv)(I), 
     or that the local police precinct is not complying with the 
     plan, the Secretary may mediate between the public housing 
     agency and the local precinct to resolve any issues of 
     conflict. If after such mediation has occurred and the 
     Secretary determines that the security needs of the 
     development are not adequately addressed, the Secretary may 
     require the public housing agency to submit an amended plan.
       ``(G) Other appropriate information that the Secretary 
     requires for each public housing agency that is--
       ``(i) at risk of being designated as troubled under section 
     6(j); or
       ``(ii) designated as troubled under section 6(j).
       ``(H) Other information required by the Secretary in 
     connection with the provision of assistance under section 9.
       ``(I) An annual certification by the public housing agency 
     that it has met the citizen participation requirements under 
     subsection (b).
       ``(J) An annual certification by the public housing agency 
     that it will carry out the public housing agency plan in 
     conformity with title VI of the Civil Rights Act of 1964, the 
     Fair Housing Act, section 504 of the Rehabilitation Act of 
     1973, and title II of the Americans with Disabilities Act of 
     1990, and will affirmatively further fair housing.
       ``(K) An annual certification by the public housing agency 
     that the public housing agency plan is consistent with the 
     approved Consolidated Plan for the locality.
       ``(2) The Secretary may provide for more frequent 
     submissions where the public housing agency proposes to amend 
     any parts of the public housing agency plan.
       ``(b) Citizen Participation Requirements.--In developing 
     the public housing agency plan under subsection (a), each 
     public housing agency shall consult with appropriate local 
     government officials and with tenants of the housing 
     projects, which shall include at least one public hearing 
     that shall be held prior to the adoption of the plan, and 
     afford tenants and interested parties an opportunity to 
     summarize their priorities and concerns, to ensure their due 
     consideration in the planning process of the public housing 
     agency.
       ``(c) Performance Reports.--The Secretary shall require the 
     public housing agency to submit any information that the 
     Secretary determines is appropriate or necessary to assess 
     the management performance of public housing agencies and 
     resident management corporations under section 6(j) and to 
     monitor assistance provided under this Act. To the maximum 
     extent feasible, the Secretary shall require such information 
     in one report, as part of the annual submission of the agency 
     under subsection (a).
       ``(d) Standards for Determination of Noncompliance.--After 
     submission by a public housing agency of a public housing 
     agency plan under subsection (a), the Secretary shall 
     determine whether the plan complies with the requirements 
     under this section. The Secretary may determine that a plan 
     does not comply with the requirements under this section only 
     if--
       ``(1) the plan is incomplete in significant matters 
     required under this section;
       ``(2) there is evidence available to the Secretary that 
     challenges, in a substantial manner, any information provided 
     in the plan;
       ``(3) the Secretary determines that the plan does not 
     comply with Federal law or violates the purposes of this Act 
     because it fails to provide housing that will be viable on a 
     long-term basis at a reasonable cost;
       ``(4) the plan plainly fails to adequately identify the 
     needs of low-income families for housing assistance in the 
     jurisdiction of the agency;
       ``(5) the plan plainly fails to adequately identify the 
     capital improvement needs for public housing developments in 
     the jurisdiction of the agency;
       ``(6) the activities identified in the plan are plainly 
     inappropriate to address the needs identified in the plan; or
       ``(7) the plan is inconsistent with the requirements of 
     this Act.
       ``(e) Waiver Authority.--The Secretary may waive, or 
     specify alternative requirements for, any requirements under 
     this section that the Secretary determines are burdensome or 
     unnecessary for public housing agencies that only administer 
     tenant-based assistance and do not own or operate public 
     housing.''.

     SEC. 108. PHMAP INDICATORS FOR SMALL PHA'S.

       Section 6(j)(1) of the United States Housing Act of 1937 is 
     amended by--
       (1) redesignating subparagraphs (A) through (I) as clauses 
     (i) through (ix);
       (2) redesignating clauses (1), (2), and (3) in clause (ix), 
     as redesignated by paragraph (1), as subclauses (I), (II), 
     and (III) respectively;
       (3) in the fourth sentence, inserting immediately before 
     clause (i), as redesignated, the following new subparagraph:
       ``(A) For public housing agencies that own or operate 250 
     or more public housing dwelling units--''; and
       (4) adding the following new subparagraph at the end:
       ``(B) For public housing agencies that own and operate 
     fewer than 250 public housing dwelling units--
       ``(i) The number and percentage of vacancies within an 
     agency's inventory, including the progress that an agency has 
     made within the previous 3 years to reduce such vacancies.
       ``(ii) The percentage of rents uncollected.
       ``(iii) The ability of the agency to produce and use 
     accurate and timely records of monthly income and expenses 
     and to maintain at least a 3-month reserve.
       ``(iv) The annual inspection of occupied units and the 
     agency's ability to respond to maintenance work orders.
       ``(v) Any one additional factor that the Secretary may 
     determine to be appropriate.''.

     SEC. 109. PHMAP SELF-SUFFICIENCY INDICATOR.

       Section 6(j)(1)(A) of the United States Housing Act of 
     1937, as amended by section 108 of this Act, is amended at 
     the end by adding the following new clause:
       ``(x) The extent to which the agency coordinates and 
     promotes participation by families in programs that assist 
     them to achieve self-sufficiency.''.

     SEC. 110. EXPANSION OF POWERS FOR DEALING WITH PHA'S IN 
                   SUBSTANTIAL DEFAULT.

       (a) In General.--Section 6(j)(3) of the United States 
     Housing Act of 1937 is amended--
       (1) in subparagraph (A)--
       (A) by amending clause (i) to read as follows:
       ``(i) solicit competitive proposals from other public 
     housing agencies and private housing management agents which, 
     in the discretion of the Secretary, may be selected by 
     existing public housing residents through administrative 
     procedures established by the Secretary; if appropriate, 
     these proposals shall provide for such agents to manage all, 
     or part, of the housing administered by the public housing 
     agency or all or part of the other programs of the agency;'';
       (B) by redesignating clause (iv) as clause (v) and amending 
     it to read as follows:
       ``(v) require the agency to make other arrangements 
     acceptable to the Secretary and in the best interests of the 
     public housing residents and families assisted under section 
     8 for managing all, or part, of the public housing 
     administered by the agency or of the programs of the 
     agency.''; and
       (C) by inserting a new clause (iv) after clause (iii) to 
     read as follows:
       ``(iv) take possession of all or part of the public housing 
     agency, including all or part of any project or program of 
     the agency, including any project or program under any other 
     provision of this title; and''; and
       (2) by striking subparagraphs (B) through (D) and inserting 
     in lieu thereof the following:
       ``(B)(i) If a public housing agency is identified as 
     troubled under this subsection, the Secretary shall notify 
     the agency of the troubled status of the agency.
       ``(ii) Upon the expiration of the 1-year period beginning 
     on the later of the date on which the agency receives notice 
     from the Secretary of the troubled status of the agency under 
     clause (i) and the date of enactment of the Public Housing 
     Management Reform Act of 1997, the Secretary shall--
       ``(I) in the case of a troubled public housing agency with 
     1,250 or more units, petition for the appointment of a 
     receiver pursuant to subparagraph (A)(ii); or
       ``(II) in the case of a troubled public housing agency with 
     fewer than 1,250 units, either--
       ``(aa) petition for the appointment of a receiver pursuant 
     to subparagraph (A)(ii); or
       ``(bb) appoint, on a competitive or noncompetitive basis, 
     an individual or entity as an administrative receiver to 
     assume the responsibilities of the Secretary for the 
     administration of all or part of the public housing agency 
     (including all or part of any project

[[Page H1994]]

     or program of the agency), provided the Secretary has taken 
     possession of all or part of the public housing agency 
     (including all or part of any project or program of the 
     agency) pursuant to subparagraph (A)(iv).
       ``(C) If a receiver is appointed pursuant to subparagraph 
     (A)(ii), in addition to the powers accorded by the court 
     appointing the receiver, the receiver--
       ``(i) may abrogate any contract to which the United States 
     or an agency of the United States is not a party that, in the 
     receiver's written determination (which shall include the 
     basis for such determination), substantially impedes 
     correction of the substantial default, but only after the 
     receiver determines that reasonable efforts to renegotiate 
     such contract have failed;
       ``(ii) may demolish and dispose of all or part of the 
     assets of the public housing agency (including all or part of 
     any project of the agency) in accordance with section 18, 
     including disposition by transfer of properties to resident-
     supported nonprofit entities;
       ``(iii) if determined to be appropriate by the Secretary, 
     may seek the establishment, as permitted by applicable State 
     and local law, of one or more new public housing agencies;
       ``(iv) if determined to be appropriate by the Secretary, 
     may seek consolidation of all or part of the agency 
     (including all or part of any project or program of the 
     agency), as permitted by applicable State and local laws, 
     into other well-managed public housing agencies with the 
     consent of such well-managed agencies; and
       ``(v) shall not be required to comply with any State or 
     local law relating to civil service requirements, employee 
     rights (except civil rights), procurement, or financial or 
     administrative controls that, in the receiver's written 
     determination (which shall include the basis for such 
     determination), substantially impedes correction of the 
     substantial default.
       ``(D)(i) If the Secretary takes possession of all or part 
     of the public housing agency, including all or part of any 
     project or program of the agency, pursuant to subparagraph 
     (A)(iv), the Secretary--
       ``(I) may abrogate any contract to which the United States 
     or an agency of the United States is not a party that, in the 
     written determination of the Secretary (which shall include 
     the basis for such determination), substantially impedes 
     correction of the substantial default, but only after the 
     Secretary determines that reasonable efforts to renegotiate 
     such contract have failed;
       ``(II) may demolish and dispose of all or part of the 
     assets of the public housing agency (including all or part of 
     any project of the agency) in accordance with section 18, 
     including disposition by transfer of properties to resident-
     supported nonprofit entities;
       ``(III) may seek the establishment, as permitted by 
     applicable State and local law, of one or more new public 
     housing agencies;
       ``(IV) may seek consolidation of all or part of the agency 
     (including all or part of any project or program of the 
     agency), as permitted by applicable State and local laws, 
     into other well-managed public housing agencies with the 
     consent of such well-managed agencies;
       ``(V) shall not be required to comply with any State or 
     local law relating to civil service requirements, employee 
     rights (except civil rights), procurement, or financial or 
     administrative controls that, in the Secretary's written 
     determination (which shall include the basis for such 
     determination), substantially impedes correction of the 
     substantial default; and
       ``(VI) shall, without any action by a district court of the 
     United States, have such additional authority as a district 
     court of the United States would have the authority to confer 
     upon a receiver to achieve the purposes of the receivership.
       ``(ii) If the Secretary, pursuant to subparagraph 
     (B)(ii)(II)(bb), appoints an administrative receiver to 
     assume the responsibilities of the Secretary for the 
     administration of all or part of the public housing agency 
     (including all or part of any project or program of the 
     agency), the Secretary may delegate to the administrative 
     receiver any or all of the powers given the Secretary by this 
     subparagraph, as the Secretary determines to be appropriate.
       ``(iii) Regardless of any delegation under this 
     subparagraph, an administrative receiver may not seek the 
     establishment of one or more new public housing agencies 
     pursuant to clause (i)(III) or the consolidation of all or 
     part of an agency into other well-managed agencies pursuant 
     to clause (i)(IV), unless the Secretary first approves an 
     application by the administrative receiver to authorize such 
     action.
       ``(E) The Secretary may make available to receivers and 
     other entities selected or appointed pursuant to this 
     paragraph such assistance as the Secretary determines in the 
     discretion of the Secretary is necessary and available to 
     remedy the substantial deterioration of living conditions in 
     individual public housing developments or other related 
     emergencies that endanger the health, safety, and welfare of 
     public housing residents or families assisted under section 
     8. A decision made by the Secretary under this paragraph is 
     not subject to review in any court of the United States, or 
     in any court of any State, territory, or possession of the 
     United States.
       ``(F) In any proceeding under subparagraph (A)(ii), upon a 
     determination that a substantial default has occurred, and 
     without regard to the availability of alternative remedies, 
     the court shall appoint a receiver to conduct the affairs of 
     all or part of the public housing agency in a manner 
     consistent with this Act and in accordance with such further 
     terms and conditions as the court may provide. The receiver 
     appointed may be another public housing agency, a private 
     management corporation, or any other person or appropriate 
     entity. The court shall have power to grant appropriate 
     temporary or preliminary relief pending final disposition of 
     the petition by the Secretary.
       ``(G) The appointment of a receiver pursuant to this 
     paragraph may be terminated, upon the petition of any party, 
     when the court determines that all defaults have been cured 
     or the public housing agency is capable again of discharging 
     its duties.
       ``(H) If the Secretary (or an administrative receiver 
     appointed by the Secretary) takes possession of a public 
     housing agency (including all or part of any project or 
     program of the agency), or if a receiver is appointed by a 
     court, the Secretary or receiver shall be deemed to be acting 
     not in the official capacity of that person or entity, but 
     rather in the capacity of the public housing agency, and any 
     liability incurred, regardless of whether the incident giving 
     rise to that liability occurred while the Secretary or 
     receiver was in possession of all or part of the public 
     housing agency (including all or part of any project or 
     program of the agency), shall be the liability of the public 
     housing agency.''.
       (b) Effectiveness.--The provisions of, and duties and 
     authorities conferred or confirmed by, subsection (a) shall 
     apply with respect to actions taken before, on, or after the 
     effective date of this Act and shall apply to any receivers 
     appointed for a public housing agency before the date of 
     enactment of this Act.
       (c) Technical Correction Regarding Applicability to Section 
     8.--Section 8(h) of the United States Housing Act of 1937 is 
     amended by inserting after ``6'' the following: ``(except as 
     provided in section 6(j)(3))''.

     SEC. 111. PUBLIC HOUSING SITE-BASED WAITING LISTS.

       Section 6 of the United States Housing Act of 1937, as 
     amended by section 306(a)(2) of this Act, is amended by 
     inserting the following new subsection at the end:
       ``(q) A public housing agency may establish, in accordance 
     with guidelines established by the Secretary, procedures for 
     maintaining waiting lists for admissions to public housing 
     developments of the agency, which may include a system 
     whereby applicants may apply directly at or otherwise 
     designate the development or developments in which they seek 
     to reside. All such procedures must comply with all 
     provisions of title VI of the Civil Rights Act of 1964, the 
     Fair Housing Act, and other applicable civil rights laws.''.

      SEC. 112. COMMUNITY SERVICE REQUIREMENTS FOR PUBLIC HOUSING 
                   AND SECTION 8 PROGRAMS.

       Section 12 of the United States Housing Act of 1937 is 
     amended by adding at the end the following new subsection:
       ``(c) Community Service Requirements For Public Housing and 
     Section 8 Programs.--
       ``(1) In general.--A public housing agency shall encourage 
     each adult member of each family residing in public housing 
     or assisted under section 8 to participate, for not less than 
     8 hours per month, in community service activities (not to 
     include any political activity) within the community in which 
     that adult resides.
       ``(2) Exemptions.--The requirement in paragraph (1) shall 
     not apply to any adult who is--
       ``(A) at least 62 years of age;
       ``(B) a person with disabilities who is unable, as 
     determined in accordance with guidelines established by the 
     Secretary, to comply with this subsection;
       ``(C) working at least 20 hours per week, a student, 
     receiving vocational training, or otherwise meeting work, 
     training, or educational requirements of a public assistance 
     program other than the program specified in subparagraph (E);
       ``(D) a single parent, grandparent, or the spouse of an 
     otherwise exempt individual, who is the primary caretaker of 
     one or more--
       ``(i) children who are 6 years of age or younger;
       ``(ii) persons who are at least 62 years of age; or
       ``(iii) persons with disabilities; or
       ``(E) in a family receiving assistance under the Temporary 
     Assistance for Needy Families program under part A of title 
     IV of the Social Security Act.''.

     SEC. 113. COMPREHENSIVE IMPROVEMENT ASSISTANCE PROGRAM 
                   STREAMLINING.

       (a) Section 14(d) of the United States Housing Act of 1937 
     is amended to read as follows:
       ``(d) No assistance may be made available under subsection 
     (b) to a public housing agency that owns or operates fewer 
     than 250 public housing units unless the agency has submitted 
     a comprehensive plan in accordance with subsection (e)(1) and 
     the Secretary has approved it in accordance with subsection 
     (e)(2). The assistance shall be allocated to individual 
     agencies on the basis of a formula established by the 
     Secretary.''.
       (b) Section 14 (f)(1) is repealed.
       (c) Section 14 (g) is amended by striking ``(d)(3)'' and 
     inserting ``(d)''.
       (d) Section 14(h) is repealed.
       (e) Section 14(i) is repealed.
       (f) Section 14(k)(1) is amended by striking ``$75,000,000'' 
     and inserting ``$100,000,000''.

[[Page H1995]]

     SEC. 114. FLEXIBILITY FOR PHA FUNDING.

       (a) Expansion of Uses of Funding.--Section 14(q)(1) of the 
     United States Housing Act of 1937 is amended--
       (1) in the first sentence, by inserting after ``section 
     5,'' the following ``by section 24,'';
       (2) in the first sentence, by inserting after ``public 
     housing agency,'', the following: ``except for the provision 
     of tenant-based assistance,''; and
       (3) by inserting at the end the following: 
     ``Notwithstanding the foregoing, (i) a public housing agency 
     that owns or operates fewer than 250 units may use 
     modernization assistance provided under section 14, 
     development assistance provided under section 5(a), and 
     operating subsidy provided under section 9, for any eligible 
     activity authorized by this Act or by applicable 
     appropriations Acts for a public housing agency, except for 
     assistance under section 8, and (ii) any agency determined to 
     be a troubled agency under section 6(j) may use amounts not 
     appropriated under section 9 for any operating subsidy 
     purpose authorized in section 9 only with the approval of the 
     Secretary and provided that the housing is maintained and 
     operated in a safe and sanitary condition.''.
       (b) Mixed-Finance Development.--Section 14(q)(2) of such 
     Act is amended to read as follows:
       ``(2) Mixed finance public housing.--
       ``(A) Authority.--The Secretary may, upon such terms and 
     conditions as the Secretary may prescribe, authorize a public 
     housing agency to provide for the use of capital and 
     operating assistance provided under section 5, 14, or 9, 
     assistance for demolition, site revitalization, or 
     replacement housing provided under section 24, or assistance 
     under applicable appropriation Acts for a public housing 
     agency, to produce mixed-finance housing developments, or 
     replace or revitalize existing public housing dwelling units 
     with mixed-finance housing developments, but only if the 
     agency submits to the Secretary a plan for such housing that 
     is approved pursuant to subparagraph (C) by the Secretary.
       ``(B) Mixed-finance housing developments.--
       ``(i) For purposes of this paragraph, the term `mixed-
     finance housing' means low-income housing or mixed-income 
     housing for which the financing for development or 
     revitalization is provided, in part, from entities other than 
     the public housing agency.
       ``(ii) A mixed-finance housing development shall be 
     produced or revitalized, and owned--
       ``(I) by a public housing agency or by an entity affiliated 
     with a public housing agency;
       ``(II) by a partnership, a limited liability company, or 
     other entity in which the public housing agency (or an entity 
     affiliated with a public housing agency) is a general 
     partner, is a managing member, or otherwise participates in 
     the activities of the entity;
       ``(III) by any entity that grants to the public housing 
     agency the option to purchase the public housing project 
     during the 20-year period beginning on the date of initial 
     occupancy of the public housing project in accordance with 
     section 42(l)(7) of the Internal Revenue Code of 1986; or
       ``(IV) in accordance with such other terms and conditions 
     as the Secretary may prescribe by regulation.
     This clause may not be construed to require development or 
     revitalization, and ownership, by the same entity.
       ``(C) Mixed-finance housing plan.--The Secretary may 
     approve a plan for development or revitalization of mixed-
     finance housing under this paragraph only if the Secretary 
     determines that--
       ``(i) the public housing agency has the ability, or has 
     provided for an entity under subparagraph (B)(ii) that has 
     the ability, to use the amounts provided for use under the 
     plan for such housing, effectively, either directly or 
     through contract management;
       ``(ii) the plan provides permanent financing commitments 
     from a sufficient number of sources other than the public 
     housing agency, which may include banks and other 
     conventional lenders, States, units of general local 
     government, State housing finance agencies, secondary market 
     entities, and other financial institutions;
       ``(iii) the plan provides for use of amounts provided under 
     subparagraph (A) by the public housing agency for financing 
     the mixed-income housing in the form of grants, loans, 
     advances, or other debt or equity investments, including 
     collateral or credit enhancement of bonds issued by the 
     agency or any State or local governmental agency for 
     development or revitalization of the development; and
       ``(iv) the plan complies with any other criteria that the 
     Secretary may establish.
       ``(D) Rent levels for housing financed with low-income 
     housing tax credit.--With respect to any dwelling unit in a 
     mixed-finance housing development that is a low-income 
     dwelling unit for which amounts from the Operating or Capital 
     Fund are used and that is assisted pursuant to the low-income 
     housing tax credit under section 42 of the Internal Revenue 
     Code of 1986, the rents charged to the residents of the unit 
     shall be determined in accordance with this title, but shall 
     not in any case exceed the amounts allowable under such 
     section 42.
       ``(E) Carry-over of assistance for replaced housing.--In 
     the case of a mixed-finance housing development that is 
     replacement housing for public housing demolished or disposed 
     of, or is the result of the revitalization of existing public 
     housing, the share of capital and operating assistance 
     received by the public housing agency that owned or operated 
     the housing demolished, disposed of, or revitalized shall not 
     be reduced because of such demolition, disposition, or 
     revitalization after the commencement of such demolition, 
     disposition, or revitalization, unless--
       ``(i) upon the expiration of the 18-month period beginning 
     upon the approval of the plan under subparagraph (C) for the 
     mixed-finance housing development, the agency does not have 
     binding commitments for development or revitalization, or a 
     construction contract, for such development;
       ``(ii) upon the expiration of the 4-year period beginning 
     upon the approval of the plan, the mixed-finance housing 
     development is not substantially ready for occupancy and is 
     placed under the annual contributions contract for the 
     agency; or
       ``(iii) the number of dwelling units in the mixed-finance 
     housing development that are made available for occupancy 
     only by low-income families is substantially less than the 
     number of such dwelling units in the public housing 
     demolished, disposed of, or revitalized.
     The Secretary may extend the period under clause (i) or (ii) 
     for a public housing agency if the Secretary determines that 
     circumstances beyond the control of the agency caused the 
     agency to fail to meet the deadline under such clause.''.
       (c) Conforming Amendments.--Section 14(q) of such Act is 
     amended--
       (1) in paragraph (3), by striking ``mixed income'' and 
     inserting ``mixed-finance''; and
       (2) in paragraph (4), by striking ``mixed-income project'' 
     and inserting ``mixed-finance development''.
       (d) Applicability.--Section 14(q) of the United States 
     Housing Act of 1937, as amended by this section, shall be 
     effective with respect to any assistance provided to the 
     public housing agency under sections 5 and 14 of the United 
     States Housing Act of 1937 and applicable appropriations Acts 
     for a public housing agency.

     SEC. 115. REPLACEMENT HOUSING RESOURCES.

       (a) Operating Fund.--Section 9(a)(3)(B) of the United 
     States Housing Act of 1937 is amended--
       (1) at the end of clause (iv), by striking ``and'';
       (2) at the end of clause (v), by striking the period and 
     inserting ``; and''; and
       (3) by inserting at the end the following:
       ``(vi) where an existing unit under a contract is 
     demolished or disposed of, the Secretary shall adjust the 
     amount the public housing agency receives under this section; 
     notwithstanding this requirement, the Secretary shall provide 
     assistance under this section in accordance with the 
     provisions of section 14(q)(2) (relating to mixed-finance 
     public housing).''.
       (b) Comprehensive Grant Program.--Section 14(k)(2)(D)(ii) 
     of such Act is amended to read as follows:
       ``(ii) Where an existing unit under a contract is 
     demolished or disposed of, the Secretary shall adjust the 
     amount the agency receives under the formula. Notwithstanding 
     the preceding sentence, for the five-year period after 
     demolition or disposition, the Secretary may provide for no 
     adjustment, or a partial adjustment, of the amount the agency 
     receives under the formula and shall require the agency to 
     use any additional amount received as a result of this 
     sentence for replacement housing or physical improvements 
     necessary to preserve viable public housing.''.

     SEC. 116. REPEAL OF ONE-FOR-ONE REPLACEMENT HOUSING 
                   REQUIREMENT.

       Section 1002(d) of Public Law 104-19 is amended by striking 
     ``and on or before September 30, 1997''.

     SEC. 117. DEMOLITION, SITE REVITALIZATION, REPLACEMENT 
                   HOUSING, AND TENANT-BASED ASSISTANCE GRANTS FOR 
                   DEVELOPMENTS.

       Section 24 of the United States Housing Act of 1937 is 
     amended--
       (1) by amending the heading to read as follows: 
     ``DEMOLITION, SITE REVITALIZATION, REPLACEMENT HOUSING, AND 
     TENANT-BASED ASSISTANCE GRANTS FOR DEVELOPMENTS'';
       (2) by amending subsections (a) through (c) to read as 
     follows:
       ``(a) Purpose.--The purpose of this section is to provide 
     assistance to public housing agencies for the purposes of--
       ``(1) reducing the density and improving the living 
     environment for public housing residents of severely 
     distressed public housing through the demolition of obsolete 
     public housing developments (or portions thereof);
       ``(2) revitalizing sites (including remaining public 
     housing dwelling units) on which such public housing 
     developments are located and contributing to the improvement 
     of the surrounding neighborhood;
       ``(3) providing housing that will avoid or decrease the 
     concentration of very low-income families; and
       ``(4) providing tenant-based assistance in accordance with 
     the provisions of section 8 for the purpose of providing 
     replacement housing and assisting residents to be displaced 
     by the demolition.
       ``(b) Grant Authority.--The Secretary may make grants 
     available to public housing agencies as provided in this 
     section.
       ``(c) Contribution Requirement.--The Secretary may not make 
     any grant under this section to any applicant unless the 
     applicant supplements the amount of assistance provided under 
     this section (other than amounts

[[Page H1996]]

     provided for demolition or tenant-based assistance) with an 
     amount of funds from sources other than this Act equal to not 
     less than 5 percent of the amount provided under this 
     section, including amounts from other Federal sources, any 
     State or local government sources, any private contributions, 
     and the value of any in-kind services or administrative costs 
     provided.'';
       (3) by amending subsection (d)(1) to read as follows:
       ``(1) In general.--The Secretary may make grants under this 
     subsection to applicants for the purpose of carrying out 
     demolition, revitalization, and replacement programs for 
     severely distressed public housing under this section. The 
     Secretary may make a grant for the revitalization or 
     replacement of public housing only if the agency demonstrates 
     that the neighborhood is or will be a viable residential 
     community, as defined by the Secretary, after completion of 
     the work assisted under this section and any other 
     neighborhood improvements planned by the State or local 
     government or otherwise to be provided. The Secretary may 
     approve grants providing assistance for one eligible activity 
     or a combination of eligible activities under this section, 
     including assistance only for demolition and assistance only 
     for tenant-based assistance in accordance with the provisions 
     of section 8.'';
       (4) in subsection (d)(2)(B)--
       (A) by striking ``the redesign'' and inserting ``the 
     abatement of environmental hazards, demolition, redesign''; 
     and
       (B) by striking ``is located'' and inserting ``is or was 
     located'';
       (5) in subsection (d)(2), by redesignating subparagraphs 
     (C) through (I) as subparagraphs (D) through (J), 
     respectively, and inserting the following new subparagraph 
     after subparagraph (B):
       ``(C) replacement housing, which shall consist of public 
     housing, homeownership units as permitted under the HOPE VI 
     program (as previously authorized in appropriations Acts), 
     tenant-based assistance in accordance with the provisions of 
     section 8, or a combination;'';
       (6)(A) in subsection (G), as redesignated by paragraph (5), 
     by inserting before the semicolon the following: ``and any 
     necessary supportive services, except that not more than 15 
     percent of any grant under this subsection may be used for 
     such purposes.'';
       (B) by inserting ``and'' at the end of subsection (H), as 
     redesignated by paragraph (4); and
       (C) by striking the semicolon at the end of subsection (I), 
     as redesignated by paragraph (4), and all that follows up to 
     the period;
       (7) in paragraph (3), by striking the second sentence;
       (8) by amending subsection (d)(4) to read as follows:
       ``(4) Selection criteria.--
       ``(A) Applications for demolition.--The Secretary shall 
     establish selection criteria for applications that request 
     assistance only for demolition, which shall include--
       ``(i) the need for demolition, taking into account the 
     effect of the distressed development on the public housing 
     agency and the community;
       ``(ii) the extent to which the public housing agency is not 
     able to undertake such activities without a grant under this 
     section;
       ``(iii) the extent of involvement of residents and State 
     and local governments in determining the need for demolition; 
     and
       ``(iv) such other factors as the Secretary determines 
     appropriate.
       ``(B) Applications for demolition, revitalization, and 
     replacement.--The Secretary shall establish selection 
     criteria for applications that request assistance for a 
     combination of eligible activities, which shall include--
       ``(i) the relationship of the grant to the comprehensive 
     plan for the locality;
       ``(ii) the extent to which the grant will result in a 
     viable development which will foster the economic and social 
     integration of public housing residents and the extent to 
     which the development will enhance the community;
       ``(iii) the capability and record of the applicant public 
     housing agency, its development team, or any alternative 
     management agency for the agency, for managing large-scale 
     redevelopment or modernization projects, meeting construction 
     timetables, and obligating amounts in a timely manner;
       ``(iv) the extent to which the public housing agency is not 
     able to undertake such activities without a grant under this 
     section;
       ``(v) the extent of involvement of residents, State and 
     local governments, private service providers, financing 
     entities, and developers, in the development of a 
     revitalization program for the development;
       ``(vi) the amount of funds and other resources to be 
     leveraged by the grant; and
       ``(vii) such other factors as the Secretary determines 
     appropriate.''
       ``(C) Applications for tenant-based assistance.--
     Notwithstanding any other provision of this subsection, the 
     Secretary may allocate tenant-based assistance under this 
     section on a non-competitive basis in connection with the 
     demolition or disposition of public housing.'';
       (9) by amending subsection (e) to read as follows:
       ``(e) Long Term Viability.--The Secretary may waive or 
     revise rules established under this Act governing the 
     development, management, and operation of public housing 
     units, to permit a public housing agency to undertake 
     measures that enhance the long-term viability of a severely 
     distressed public housing project revitalized under this 
     section; except that the Secretary may not waive or revise 
     the rent limitation under section 3(a)(1)(A) or the targeting 
     requirements under section 16(a).'';
       (10) in subsection (f)--
       (A) by striking ``OTHER'' and all that follows through 
     ``(1)'';
       (B) by striking paragraph (2); and
       (C) by redesignating subparagraphs (A) and (B) as 
     paragraphs (1) and (2);
       (11) by striking subsections (g) and (i) and redesignating 
     subsection (h) as subsection (j);
       (12) by inserting the following new subsections after 
     subsection (f):
       ``(g) Administration by Other Entities.--The Secretary may 
     require a grantee under this section to make arrangements 
     satisfactory to the Secretary for use of an entity other than 
     the public housing agency to carry out activities assisted 
     under the revitalization plan, if the Secretary determines 
     that such action will help to effectuate the purposes of this 
     section.
       ``(h) Timely expenditures.--
       ``(1) Withdrawal of funding.--If a grantee under this 
     section or under the HOPE VI program does not sign the 
     primary construction contract for the work included in the 
     grant agreement within 18 months from the date of the grant 
     agreement, the Secretary shall withdraw any grant amounts 
     under the grant agreement which have not been obligated by 
     the grantee. The Secretary shall redistribute any withdrawn 
     amounts to one or more applicants eligible for assistance 
     under this section. The Secretary may grant an extension of 
     up to one additional year from the date of enactment of this 
     Act if the 18-month period has expired as of the date of 
     enactment, for delays caused by factors beyond the control of 
     the grantee.
       ``(2) Completion.--A grant agreement under this section 
     shall provide for interim checkpoints and for completion of 
     physical activities within four years of execution, and the 
     Secretary shall enforce these requirements through default 
     remedies up to and including withdrawal of funding. The 
     Secretary may, however, provide for a longer timeframe, but 
     only when necessary due to factors beyond the control of the 
     grantee.
       ``(3) Inapplicability.--This subsection shall not apply to 
     grants for tenant-based assistance under section 8.
       ``(i) Inapplicability of Section 18.--Section 18 shall not 
     apply to the demolition of developments removed from the 
     inventory of the public housing agency under this section.'';
       (13) by amending subsection (j)(1), as redesignated by 
     paragraph (11)--
       (A) in subparagraph (C), by inserting after ``nonprofit 
     organization,'' the following: ``private program manager, a 
     partner in a mixed-finance development,'';
       (B) at the end of subparagraph (B), after the semicolon, by 
     inserting ``and''; and
       (C) at the end of subparagraph (C), by striking ``; and'' 
     and all that follows up to the period;
       (14) by amending subsection (j)(5), as redesignated by 
     paragraph (11)--
       (A) in subparagraph (A)--
       (i) by striking ``(i)'';
       (ii) by striking clauses (ii) through (iv); and
       (iii) by inserting after ``physical plant of the project'' 
     the following: ``, where such distress cannot be remedied 
     through assistance under section 14 because of inadequacy of 
     available funding'';
       (B) by amending subparagraph (A), as amended by 
     subparagraph (A) of this paragraph (14), by striking 
     ``appropriately'' and inserting ``inappropriately''; and
       (C) by amending subparagraph (B) to read as follows:
       ``(B) that was a project as described in subparagraph (A) 
     that has been demolished, but for which the Secretary has not 
     provided replacement housing assistance (other than tenant-
     based assistance).'';
       (15) by inserting at the end of subsection (j), as 
     redesignated by paragraph (11), the following new paragraph:
       ``(6) Supportive services.--The term `supportive services' 
     includes all activities that will promote upward mobility, 
     self-sufficiency, and improved quality of life for the 
     residents of the public housing development involved, 
     including literacy training, job training, day care, and 
     economic development activities.''; and
       (16) by inserting the following new subsection at the end:
       ``(k) Technical Assistance and Program Oversight.--Of the 
     amount appropriated for any fiscal year for grants under this 
     section, the Secretary may use up to 2.5 percent for 
     technical assistance, program oversight, and fellowships for 
     on-site public housing agency assistance and supplemental 
     education. Technical assistance may be provided directly or 
     indirectly by grants, contracts, or cooperative agreements, 
     and may include training, and the cost of necessary travel 
     for participants in such training, by or to officials of the 
     Department of Housing and Urban Development, of public 
     housing agencies, and of residents. The Secretary may use 
     amounts under this paragraph for program oversight to 
     contract with private program and construction management 
     entities to assure that development activities are carried 
     out in a timely and cost-effective manner.''.

     SEC. 118. PERFORMANCE EVALUATION BOARD.

       (a) Establishment.--There is hereby established a 
     performance evaluation board to

[[Page H1997]]

     assist the Secretary of Housing and Urban Development in 
     improving and monitoring the system for evaluation of public 
     housing authority performance, including by studying and 
     making recommendations to the Secretary on the most 
     effective, efficient and productive method or methods of 
     evaluating the performance of public housing agencies, 
     consistent with the overall goal of improving management of 
     the public housing program.
       (b) Membership.--
       (1) In general.--The board shall be composed of at least 
     seven members with relevant experience who shall be appointed 
     by the Secretary as soon as practicable, but not later than 
     90 days after enactment of this Act.
       (2) Appointments.--In appointing members of the board, the 
     Secretary shall assure that each of the background areas set 
     forth in paragraph (3) are represented.
       (3) Backgrounds.--Background areas to be represented are--
       (A) major public housing organizations;
       (B) public housing resident organizations;
       (C) real estate management, finance, or development 
     entities; and
       (D) units of general local government.
       (c) Board Procedures.--
       (1) Chairperson.--The Secretary shall appoint a chairperson 
     from among members of the board.
       (2) Quorum.--A majority of the members of the board shall 
     constitute a quorum for the transaction of business.
       (3) Voting.--Each member of the board shall be entitled to 
     one vote, which shall be equal to the vote of each other 
     member of the board.
       (4) Prohibition of additional pay.--Members of the board 
     shall serve without compensation, but shall be reimbursed for 
     travel, subsistence, and other necessary expenses incurred in 
     the performance of their duties as members of the board.
       (d) Powers.--
       (1) Hearings.--The board may, for the purpose of carrying 
     out this section, hold such hearings and sit and act at such 
     times and places as the board determines appropriate.
       (2) Assistance from federal agencies.--.
       (A) Information.--The board may request from any agency of 
     the United States, and such agency is authorized to provide, 
     such data and information as the board may require for 
     carrying out its functions.
       (B) Staff support.--Upon request of the chairperson of the 
     board, to assist the board in carrying out its duties under 
     this section, the Secretary may--
       (i) provide an executive secretariat;
       (ii) assign by detail or otherwise any of the personnel of 
     the Department of Housing and Urban Development; and
       (iii) obtain by personal services contracts or otherwise 
     any technical or other assistance needed to carry out this 
     section.
       (e) Advisory Committee.--The board shall be considered an 
     advisory committee within the meaning of the Federal Advisory 
     Committee Act (5 U.S.C. App.).
       (f) Functions.--The board shall, as needed--
       (1) examine and assess the need for further modifications 
     to or replacement of the Public Housing Management Assessment 
     program, established by the Secretary under section 6(j) of 
     the United States Housing Act of 1937;
       (2) examine and assess models used in other industries or 
     public programs to assess the performance of recipients of 
     assistance, including accreditation systems, and the 
     applicability of those models to public housing;
       (3) develop (either itself, or through another body) 
     standards for professional competency for the public housing 
     industry, including methods of assessing the qualifications 
     of employees of public housing authorities, such as systems 
     for certifying the qualifications of employees;
       (4) develop a system for increasing the use of on-site 
     physical inspections of public housing developments; and
       (5) develop a system for increasing the use of independent 
     audits, as part of the overall system for evaluating the 
     performance of public housing agencies.
       (g) Reports.--
       (1) Not later than the expiration of the three-month period 
     beginning upon the appointment of the seventh member of the 
     board, and one year from such appointment, the board shall 
     issue interim reports to the Secretary on its activities. The 
     board shall make its final report and recommendations one 
     year after its second interim report is issued. The final 
     report shall include findings and recommendations of the 
     board based upon the functions carried out under this 
     section.
       (2) After the board issues its final report, it may be 
     convened by its chair, upon the request of the Secretary, to 
     review implementation of the performance evaluation system 
     and for other purposes.
       (h) Term.--The duration of the board shall be seven years.
       (i) Funding.--The Secretary is authorized to use any 
     amounts appropriated under the head Preserving Existing 
     Housing Investment, or predecessor or successor appropriation 
     accounts, without regard to any earmarks of funding, to carry 
     out this section.

     SEC. 119. ECONOMIC DEVELOPMENT AND SUPPORTIVE SERVICES FOR 
                   PUBLIC HOUSING RESIDENTS.

       The United States Housing Act of 1937 is amended by adding 
     the following new section after section 27:

     ``SEC. 28. ECONOMIC DEVELOPMENT AND SUPPORTIVE SERVICES FOR 
                   PUBLIC HOUSING RESIDENTS.

       ``(a) In General.--To the extent provided in advance in 
     appropriations Acts, the Secretary shall make grants for the 
     purposes of providing a program of supportive services and 
     resident self-sufficiency activities to enable residents of 
     public housing to become economically self-sufficient and to 
     assist elderly persons and persons with disabilities to 
     maintain independent living, to the following eligible 
     applicants:
       ``(1) public housing agencies;
       ``(2) resident councils;
       ``(3) resident management corporations or other eligible 
     resident entities defined by the Secretary;
       ``(4) other applicants, as determined by the Secretary; and
       ``(5) any partnership of eligible applicants.
       ``(b) Eligible Activities.--Grantees under this section may 
     use grants for the provision of supportive service, economic 
     development, and self-sufficiency activities conducted 
     primarily for public housing residents in a manner that is 
     easily accessible to those residents. Such activities shall 
     include--
       ``(1) the provision of service coordinators and case 
     managers;
       ``(2) the provision of services related to work readiness, 
     including education, job training and counseling, job search 
     skills, business development training and planning, tutoring, 
     mentoring, adult literacy, computer access, personal and 
     family counseling, health screening, work readiness health 
     services, transportation, and child care;
       ``(3) economic and job development, including employer 
     linkages and job placement, and the start-up of resident 
     microenterprises, community credit unions, and revolving loan 
     funds, including the licensing, bonding and insurance needed 
     to operate such enterprises;
       ``(4) resident management activities, including related 
     training and technical assistance; and
       ``(5) other activities designed to improve the self-
     sufficiency of residents, as may be determined in the sole 
     discretion of the Secretary.
       ``(c) Funding Distribution.--
       ``(1) In general.--After reserving such amounts as the 
     Secretary determines to be necessary for technical assistance 
     and clearinghouse services under subsection (d), the 
     Secretary shall distribute any remaining amounts made 
     available under this section on a competitive basis. The 
     Secretary may set a cap on the maximum grant amount permitted 
     under this section, and may limit applications for grants 
     under this section to selected applicants or categories of 
     applicants.
       ``(2) Selection criteria.--The Secretary shall establish 
     selection criteria for applications that request assistance 
     for one or more eligible activities under this section, which 
     shall include--
       ``(A) the demonstrated capacity of the applicant to carry 
     out a program of supportive services or resident empowerment 
     activities;
       ``(B) the amount of funds and other resources to be 
     leveraged by the grant;
       ``(C) the extent to which the grant will result in a 
     quality program of supportive services or resident 
     empowerment activities;
       ``(D) the extent to which any job training and placement 
     services to be provided are coordinated with the provision of 
     such services under the Job Training Partnership Act and the 
     Wagner-Peyser Act; and
       ``(E) such other factors as the Secretary determines 
     appropriate.
       ``(3) Matching requirement.--The Secretary may not make any 
     grant under this section to any applicant unless the 
     applicant supplements every dollar provided under this 
     subsection with an amount of funds from sources other than 
     this section equal to at least twice the amount provided 
     under this subsection, including amounts from other Federal 
     sources, any State or local government sources, any private 
     contributions, and the value of any in-kind services or 
     administrative costs provided. Of the supplemental funds 
     furnished by the applicant, not more than 50 percent may be 
     in the form of in-kind services or administrative costs 
     provided.
       ``(d) Funding for Technical Assistance.--The Secretary may 
     set aside a portion of the amounts appropriated under this 
     section, to be provided directly or indirectly by grants, 
     contracts, or cooperative agreements, for technical 
     assistance, which may include training and cost of necessary 
     travel for participants in such training, by or to officials 
     and employees of the Department and of public housing 
     agencies, and to residents and to other eligible grantees, 
     and for clearinghouse services in furtherance of the goals 
     and activities of this section.
       ``(e) Contract Administrators.--The Secretary may require 
     resident councils, resident management corporations, or other 
     eligible entities defined by the Secretary to utilize public 
     housing agencies or other qualified organizations as contract 
     administrators with respect to grants provided under this 
     section.''.

     SEC. 120. PENALTY FOR SLOW EXPENDITURE OF MODERNIZATION 
                   FUNDS.

       Section 14(k)(5) of the United States Housing Act of 1937 
     is amended to read as follows:
       ``(5)(A) A public housing agency shall obligate any 
     assistance received under this section within 18 months of 
     the date funds become available to the agency for obligation. 
     The Secretary may extend this time period by no more than one 
     year if an agency's failure to obligate such assistance in a 
     timely manner is attributable to events beyond the

[[Page H1998]]

     control of the agency. The Secretary may also provide an 
     exception for de minimis amounts to be obligated with the 
     next year's funding; an agency that owns or administers fewer 
     than 250 public housing units, to the extent necessary to 
     permit the agency to accumulate sufficient funding to 
     undertake activities; and any agency, to the extent necessary 
     to permit the agency to accumulate sufficient funding to 
     provide replacement housing.
       ``(B) A public housing agency shall not be awarded 
     assistance under this section for any month in a year in 
     which it has funds unobligated, in violation of subparagraph 
     (A). During such a year, the Secretary shall withhold all 
     assistance which would otherwise be provided to the agency. 
     If the agency cures its default during the year, it shall be 
     provided with the share attributable to the months remaining 
     in the year. Any funds not so provided to the agency shall be 
     provided to high-performing agencies as determined under 
     section 6(j).
       ``(C) If the Secretary has consented, before the date of 
     enactment of the Public Housing Management Reform Act of 
     1997, to an obligation period for any agency longer than 
     provided under this paragraph, an agency which obligates its 
     funds within such extended period shall not be considered to 
     be in violation of subparagraph (A). Notwithstanding any 
     prior consent of the Secretary, however, all funds 
     appropriated in fiscal year 1995 and prior years shall be 
     fully obligated by the end of fiscal year 1998, and all funds 
     appropriated in fiscal years 1996 and 1997 shall be fully 
     obligated by the end of fiscal year 1999.
       ``(D) A public housing agency shall spend any assistance 
     received under this section within four years (plus the 
     period of any extension approved by the Secretary under 
     subparagraph (A)) of the date funds become available to the 
     agency for obligation. The Secretary shall enforce this 
     requirement through default remedies up to and including 
     withdrawal of the funding. Any obligation entered into by an 
     agency shall be subject to the right of the Secretary to 
     recapture the amounts for violation by the agency of the 
     requirements of this subparagraph.''.

     SEC. 121. DESIGNATION OF PHA'S AS TROUBLED.

       (a) Section 6(j)(1)(A) of the United States Housing Act of 
     1937, as amended by sections 108 and 109, is further 
     amended--
       (1) in subparagraph (A), by inserting the following after 
     clause (x):
       ``(xi) Whether the agency is providing acceptable basic 
     housing conditions, as determined by the Secretary.''; and
       (2) in subparagraph (B)--
       (A) by redesignating clause (v) as clause (vi); and
       (B) by inserting the following after clause (iv):
       ``(v) Whether the agency is providing acceptable basic 
     housing conditions, as determined by the Secretary.''.
       (b) Section 6(j)(2)(A)(i) of such Act is amended by 
     inserting the following after the first sentence: ``Such 
     procedures shall provide that an agency that does not provide 
     acceptable basic housing conditions shall be designated a 
     troubled public housing agency.''.
       (c) Section 6(j)(2)(A)(i) of such Act is amended in the 
     first sentence--
       (1) by inserting before ``the performance indicators'' the 
     subclause designation ``(I)''; and
       (2) by inserting before the period the following: ``; or 
     (II) such other evaluation system as is determined by the 
     Secretary to assess the condition of the public housing 
     agency or resident management corporation, which system may 
     be in addition to or in lieu of the performance indicators 
     established under paragraph (1)''.

     SEC. 122. VOLUNTEER SERVICES UNDER THE 1937 ACT.

       (a) In General.--Section 12(b) of the United States Housing 
     Act of 1937 is amended by striking ``that--'' and all that 
     follows up to the period and inserting ``who performs 
     volunteer services in accordance with the requirements of the 
     Community Improvement Volunteer Act of 1994''.
       (b) CIVA Amendment.--Section 7305 of the Community 
     Improvement Volunteer Act of 1994 is amended--
       (1) in paragraph (5), by striking ``and'' after the 
     semicolon;
       (2) in paragraph (6), by striking the period and inserting 
     ``; and''; and
       (3) by inserting the following paragraph after paragraph 
     (6):
       ``(7) the United States Housing Act of 1937.''.

     SEC. 123. AUTHORIZATION OF APPROPRIATIONS FOR OPERATION SAFE 
                   HOME PROGRAM.

       There are authorized to be appropriated to carry out the 
     Operation Safe Home program $20,000,000 for fiscal year 1998 
     and such sums as may be necessary for fiscal years 1999, 
     2000, 2001, and 2002.
    TITLE II--SECTION 8 STREAMLINING AND OTHER PROGRAM IMPROVEMENTS

     SEC. 201. PERMANENT REPEAL OF FEDERAL PREFERENCES.

       (a) Notwithstanding section 402(f) of The Balanced Budget 
     Downpayment Act, I, the amendments made by section 402(d) of 
     that Act shall remain in effect after fiscal year 1997, 
     except that the amendments made by sections 402(d)(3) and 
     402(d)(6)(A)(iii), (iv), and (vi) of such Act shall remain in 
     effect as amended by sections 203 and 116 of this Act, and 
     section 402(d)(6)(v) shall be repealed by the amendments made 
     to section 16 of the United States Housing Act of 1937 by 
     section 202 of this Act.
       (b) Section 6(c)(4)(A) of the United States Housing Act of 
     1937, as amended by section 402(d)(1) of The Balanced Budget 
     Downpayment Act, I, is amended by striking ``is'' and all 
     that follows through ``Act'' and inserting the following: 
     ``shall be based upon local housing needs and priorities, as 
     determined by the public housing agency using generally 
     accepted data sources, including any information obtained 
     pursuant to an opportunity for public comment under this 
     subparagraph, under section 5A(b), and under the requirements 
     of the approved Consolidated Plan for the locality''.
       (c) Section 8(d)(1)(A) of the United States Housing Act of 
     1937, as amended by section 402(d)(2) of The Balanced Budget 
     Downpayment Act, I, is amended by striking ``is'' and all 
     that follows through ``Act'' and inserting the following: 
     ``shall be based upon local housing needs and priorities, as 
     determined by the public housing agency using generally 
     accepted data sources, including any information obtained 
     pursuant to an opportunity for public comment under this 
     subparagraph, under section 5A(b), and under the requirements 
     of the approved Consolidated Plan for the locality''.

     SEC. 202. INCOME TARGETING FOR PUBLIC HOUSING AND SECTION 8 
                   PROGRAMS.

       (a) Section 16 of the United States Housing Act of 1937 is 
     amended by revising the heading and subsections (a) through 
     (c) to read as follows:

     ``SEC. 16. ELIGIBILITY FOR PUBLIC AND ASSISTED HOUSING.

       ``(a) Public Housing.--
       ``(1) Program requirement.--Of the public housing units of 
     a public housing agency made available for occupancy by 
     eligible families in any fiscal year of the agency--
       ``(A) at least 40 percent shall be occupied by families 
     whose incomes do not exceed 30 percent of the median income 
     for the area; and
       ``(B) at least 90 percent shall be occupied by families 
     whose incomes do not exceed 60 percent of the median income 
     for the area; except that, for any fiscal year, the Secretary 
     may reduce to 80 percent the percentage under this 
     subparagraph for a public housing agency if the agency 
     demonstrates to the satisfaction of the Secretary that such 
     reduction would be used for, and would result in, the 
     enhancement of the long-term viability of the housing 
     developments of the agency.
       ``(2) Development requirement.--At least 40 percent of the 
     units in each public housing development shall be occupied by 
     families with incomes which are less than 30 percent of the 
     median income for the area, except that no family may be 
     required to move to achieve compliance with this requirement.
       ``(b) Section 8 Assistance.--
       ``(1) Tenant-based, moderate rehabilitation, and project-
     based certificate assistance.--In any fiscal year of a public 
     housing agency, at least 75 percent of all families who 
     initially receive tenant-based assistance from the agency, 
     assistance under the moderate rehabilitation program of the 
     agency, or assistance under the project-based certificate 
     program of the agency shall be families whose incomes do not 
     exceed 30 percent of the median income for the area.
       ``(2) Project-based assistance.--Of the dwelling units in a 
     project receiving section 8 assistance, other than assistance 
     described in paragraph (1), that are made available for 
     occupancy by eligible families in any year (as determined by 
     the Secretary)--
       ``(A) at least 40 percent shall be occupied by families 
     whose incomes do not exceed 30 percent of the median income 
     for the area; and
       ``(B) at least 90 percent shall be occupied by families 
     whose incomes do not exceed 60 percent of the median income 
     for the area.
       ``(c) Definition of Area Median Income.--The term `area 
     median income', as used in subsections (a) and (b), refers to 
     the median income of an area, as determined by the Secretary, 
     with adjustments for smaller and larger families, except that 
     the Secretary may establish income ceilings higher or lower 
     than the percentages specified in subsections (a) and (b) if 
     the Secretary determines that such variations are necessary 
     because of unusually high or low family incomes.''.
       (b) Section 16 of the United States Housing Act of 1937, as 
     amended by this section, is further amended by inserting the 
     following new heading after subsection designation (d): 
     ``Applicability.--''.

     SEC. 203. MERGER OF TENANT-BASED ASSISTANCE PROGRAMS.

       (a) Section 8(o) of the United States Housing Act of 1937 
     is amended to read as follows:
       ``(o) Rental Certificates.--(1) A public housing agency may 
     only enter into contracts for tenant-based rental assistance 
     under this Act pursuant to this subsection. The Secretary may 
     provide rental assistance using a payment standard in 
     accordance with this subsection. The payment standard shall 
     be used to determine the monthly assistance which may be paid 
     for any family.
       ``(2)(A) The payment standard may not exceed the FMR/
     exception rent limit. The payment standard may not be less 
     than 80 percent of the FMR/exception rent limit.
       ``(B) The term `FMR/exception rent limit' means the section 
     8 existing housing fair market rent published by HUD in 
     accordance with subsection (c)(1) or any exception rent 
     approved by HUD for a designated part of the fair market rent 
     area. HUD may approve an

[[Page H1999]]

     exception rent of up to 120 percent of the published fair 
     market rent.
       ``(3)(A) For assistance under this subsection provided by a 
     public housing agency on and after October 1, 1998, to the 
     extent approved in appropriations Acts, the monthly 
     assistance payment for any family that moves to another unit 
     in another complex or moves to a single family dwelling shall 
     be the amount determined by subtracting the family 
     contribution as determined in accordance with section 3(a) 
     from the applicable payment standard, except that such 
     monthly assistance payment shall not exceed the amount by 
     which the rent for the dwelling unit (including the amount 
     allowed for utilities in the case of a unit with separate 
     utility metering) exceeds 10 percent of the family's monthly 
     income.
       ``(B) For any family not covered by subparagraph (A), the 
     monthly assistance payment for the family shall be determined 
     by subtracting the family contribution as determined in 
     accordance with section 3(a) from the lower of the applicable 
     payment standard and the rent for the dwelling unit 
     (including the amount allowed for utilities in the case of a 
     unit with separate utility metering).
       ``(4) Assistance payments may be made only for:
       ``(A) a family determined to be a very low-income family at 
     the time the family initially receives assistance, or
       ``(B) another low-income family in circumstances determined 
     by the Secretary.
       ``(5) If a family vacates a dwelling unit before the 
     expiration of a lease term, no assistance payment may be made 
     with respect to the unit after the month during which the 
     unit was vacated.
       ``(6) The Secretary shall require that:
       ``(A) the public housing agency shall inspect the unit 
     before any assistance payment may be made to determine that 
     the unit meets housing quality standards for decent, safe, 
     and sanitary housing established by the Secretary for the 
     purpose of this section, and
       ``(B) the public housing agency shall make annual or more 
     frequent inspections during the contract term. No assistance 
     payment may be made for a dwelling unit which fails to meet 
     such quality standards.
       ``(7) The rent for units assisted under this subsection 
     shall be reasonable in comparison with rents charged for 
     comparable units in the private unassisted market. A public 
     housing agency shall review all rents for units under 
     consideration by families assisted under this subsection (and 
     all rent increases for units under lease by families assisted 
     under this subsection) to determine whether the rent (or rent 
     increase) requested by an owner is reasonable. If a public 
     housing agency determines that the rent (or rent increase) 
     for a unit is not reasonable, the agency may not approve a 
     lease for such unit.
       ``(8) Except as provided in paragraph (2) of this 
     subsection, section 8(c) of this Act does not apply to 
     assistance under this subsection.''.
       (b) In Section 3(a)(1) of the United States Housing Act of 
     1937, the second sentence is revised as follows:
       (1) by striking ``or paying rent under section 
     8(c)(3)(B)''; and
       (2) by striking ``the highest of the following amounts, 
     rounded to the nearest dollar:'' and inserting ``and the 
     family contribution for a family assisted under section 8(o) 
     or 8(y) shall be the highest of the following amounts, 
     rounded to the next dollar:''.
       (c) Section 8(b) of the United States Housing Act is 
     amended--
       (1) by striking ``Rental Certificates and Other Existing 
     Housing Programs.--'' and inserting ``(1)''; and
       (2) by striking the second sentence.
       (d) Section 8 of the United States Housing Act of 1937 is 
     amended--
       (1) by striking subsection (c)(3)(B);
       (2) in subsection (d)(2), by striking subparagraphs (A), 
     (B), (C), (D) and (E); and by redesignating subparagraphs 
     (F), (G) and (H) as subparagraphs (A), (B) and (C) 
     respectively;
       (3) in subsection (f)(6), as redesignated by section 
     306(b)(2) of this Act, by striking ``under subsection (b) or 
     (o)''; and
       (4) by striking subsection (j).

     SEC. 204. SECTION 8 ADMINISTRATIVE FEES.

       (a) Section 202(a)(1)(A) of the Departments of Veterans 
     Affairs and Housing and Urban Development, Independent 
     Agencies Appropriations Act, 1997 is amended by--
       (1) striking ``7.5 percent'' and inserting ``7.65 
     percent'';
       (2) striking ``a program of'' and inserting ``one or more 
     such programs totaling''; and
       (3) inserting before the final period, ``of such total 
     units''.
       (b) The amendments made by this section shall be effective 
     as of October 1, 1997.

     SEC. 205. SECTION 8 HOMEOWNERSHIP.

       (a) Amendments to section 8(y).--Section 8(y) of the United 
     States Housing Act of 1937 is amended--
       (1) in paragraph (1), by striking ``A family receiving'' 
     through ``if the family'' and inserting the following: ``A 
     public housing agency providing tenant-based assistance on 
     behalf of an eligible family under this section may provide 
     assistance for an eligible family that purchases a dwelling 
     unit (including a unit under a lease-purchase agreement) that 
     will be owned by one or more members of the family, and will 
     be occupied by the family, if the family'';
       (2) in paragraph (1)(A), by inserting before the semicolon 
     the following: ``, or owns or is acquiring shares in a 
     cooperative'';
       (3) in paragraph (1), by amending paragraph (B) to read as 
     follows:
       ``(B)(i) in the case of disabled families and elderly 
     families, demonstrates that the family has income from 
     employment or other sources, as determined in accordance with 
     requirements of the Secretary, in such amount as may be 
     established by the Secretary; and
       ``(ii) in the case of other families, demonstrates that the 
     family has income from employment, as determined in 
     accordance with requirements of the Secretary, in such amount 
     as may be established by the Secretary;'';
       (4) in paragraph (1)(C), by striking ``except as'' and 
     inserting ``except in the case of disabled families and 
     elderly families and as otherwise'';
       (5) in paragraph (1), by inserting at the end the 
     following: ``The Secretary or the public housing agency may 
     target assistance under this subsection for program purposes, 
     such as to families assisted in connection with the FHA 
     multifamily demonstration under section 212 of the 
     Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     1997.'';
       (6) by amending paragraph (2) to read as follows:
       ``(2) Determination of amount of assistance.--The monthly 
     assistance payment for any family shall be the amount 
     determined by subtracting the family contribution as 
     determined under section 3(a) of this Act from the lower of:
       ``(A) the applicable payment standard, or
       ``(B) the monthly homeownership expenses, as determined in 
     accordance with requirements established by the Secretary, of 
     the family.'';
       (7) by redesignating paragraphs (6), (7), and (8), as 
     paragraphs (9), (10), and (11), respectively;
       (8) by striking paragraphs (3), (4), and (5) and inserting 
     the following after paragraph (2):
       ``(3) Inspections and contract conditions.--Each contract 
     for the purchase of a unit to be assisted under this section 
     shall provide for pre-purchase inspection of the unit by an 
     independent professional and shall require that any cost of 
     necessary repairs shall be paid by the seller. The 
     requirement under section 8(o)(5)(B) for annual inspections 
     of the unit shall not apply to units assisted under this 
     section.
       ``(4) Downpayment requirement.--Each public housing agency 
     providing assistance under this subsection shall require that 
     each assisted family make a significant contribution, from 
     its own resources, determined in accordance with guidelines 
     established by the Secretary, to cover all or a portion of 
     the downpayment required in connection with the purchase, 
     which may include credit for work by one or more family 
     members to improve the dwelling (``sweat equity'').
       ``(5) Reserve for replacements.--The Secretary shall 
     require each family to pay an amount equal to one percent of 
     the monthly amount payable by the family for principal and 
     interest on its acquisition loan into a reserve for repairs 
     and replacements for five years after the date of purchase. 
     Any amounts remaining in the reserve after five years shall 
     be paid to the family.
       ``(6) Application of net proceeds upon sale.--The Secretary 
     shall require that the net proceeds upon sale by a family of 
     a unit owned by the family while it received assistance under 
     this subsection shall be divided between the public housing 
     agency and the family. The Secretary shall establish 
     guidelines for determining the amount to be received by the 
     family and the amount to be received by the agency, which 
     shall take into account the relative amount of assistance 
     provided on behalf of the family in comparison with the 
     amount paid by the family from its own resources. The 
     Secretary shall require the agency to use any amounts 
     received under this paragraph to provide assistance under 
     subsection (o) or this subsection.
       ``(7) Limitation on size of program.--A public housing 
     agency may permit no more than 10 percent of the families 
     receiving tenant-based assistance provided by the agency to 
     use the assistance for homeownership under this subsection. 
     The Secretary may permit no more than 5 percent of all 
     families receiving tenant-based assistance to use the 
     assistance for homeownership under this subsection.
       ``(8) Other program requirements.--The Secretary may 
     establish such other requirements and limitations the 
     Secretary determines to be appropriate in connection with the 
     provision of assistance under this section, which may include 
     limiting the term of assistance for a family. The Secretary 
     may modify the requirements of this subsection where 
     necessary to make appropriate adaptations for lease-purchase 
     agreements. The Secretary shall establish performance 
     measures and procedures to monitor the provision of 
     assistance under this subsection in relation to the purpose 
     of providing homeownership opportunities for eligible 
     families.'';
       (9) in paragraph (10)(A)), as redesignated by paragraph (7) 
     of this section, is amended--
       (A) by striking ``dwelling, (ii)'' and inserting 
     ``dwelling, and (ii)''; and
       (B) by striking ``, (iii)'' and all that follows up to the 
     period; and
       (10) by inserting after paragraph (11), as redesignated by 
     paragraph (7) of this section, the following:
       ``(12) Sunset.--The authority to provide assistance to 
     additional families under this subsection shall terminate on 
     September 30,

[[Page H2000]]

     2002. The Secretary shall then prepare a report evaluating 
     the effectiveness of homeownership assistance under this 
     subsection.''.
       (b) Family Self-Sufficiency Escrow.--Section 23(d)(3) of 
     the United States Housing Act of 1937 is repealed.

     SEC. 206. WELFARE TO WORK CERTIFICATES.

       (a) To the extent of amounts approved in appropriations 
     Acts, the Secretary may provide funding for welfare to work 
     certificates in accordance with this section. 
     ``Certificates'' means tenant-based rental assistance in 
     accordance with section 8(o) of the United States Housing Act 
     of 1937.
       (b) Funding under this section shall be used for a 
     demonstration linking use of such certificate assistance with 
     welfare reform initiatives to help families make the 
     transition from welfare to work, and for technical assistance 
     in connection with such demonstration.
       (c) Funding may only be awarded upon joint application by a 
     public housing agency and a State or local welfare agency. 
     Allocation of demonstration funding is not subject to section 
     213 of the Housing and Community Development Act of 1974.
       (d) Assistance provided under this section shall not be 
     taken into account in determining the size of the family 
     self-sufficiency program of a public housing agency under 
     section 23 of the United States Housing Act of 1937.
       (e) For purposes of the demonstration, the Secretary may 
     waive, or specify alternative requirements for, requirements 
     established by or under this Act concerning the certificate 
     program, including requirements concerning the amount of 
     assistance, the family contribution, and the rent payable by 
     the family.

     SEC. 207. EFFECT OF FAILURE TO COMPLY WITH PUBLIC ASSISTANCE 
                   REQUIREMENTS.

       Section 3(a) of the United States Housing Act of 1937, as 
     amended by section 103, is amended by inserting the following 
     after paragraph (3):
       ``(4)(A) If the welfare or public assistance benefits of a 
     covered family, as defined in subparagraph (G)(i), are 
     reduced under a Federal, State, or local law regarding such 
     an assistance program because any member of the family 
     willfully failed to comply with program conditions requiring 
     participation in a self-sufficiency program or requiring work 
     activities as defined in subparagraphs (G)(ii) and (iii), the 
     family may not, for the duration of the reduction, have the 
     amount of rent or family contribution determined under this 
     subsection reduced as the result of any decrease in the 
     income of the family (to the extent that the decrease in 
     income is the result of the benefits reduction).
       ``(B) If the welfare or public assistance benefits of a 
     covered family are reduced under a Federal, State, or local 
     law regarding the welfare or public assistance program 
     because any member of the family willfully failed to comply 
     with the self-sufficiency or work activities requirements, 
     the portion of the amount of any increase in the earned 
     income of the family occurring after such reduction up to the 
     amount of the reduction for noncompliance shall not result in 
     an increase in the amount of rent or family contribution 
     determined under this subsection during the period the family 
     would otherwise be eligible for welfare or public assistance 
     benefits under the program.
       ``(C) Any covered family residing in public housing that is 
     affected by the operation of this paragraph shall have the 
     right to review the determination under this paragraph 
     through the administrative grievance procedures established 
     pursuant to section 6(k) for the public housing agency.
       ``(D) Subparagraph (A) shall not apply to any covered 
     family before the public housing agency providing assistance 
     under this Act on behalf of the family receives written 
     notification from the relevant welfare or public assistance 
     agency specifying that the benefits of the family have been 
     reduced because of noncompliance with self-sufficiency 
     program requirements and the level of such reduction.
       ``(E) Subparagraph (A) shall not apply in any case in which 
     the benefits of a family are reduced because the welfare or 
     public assistance program to which the Federal, State, or 
     local law relates limits the period during which benefits may 
     be provided under the program.
       ``(F) This paragraph may not be construed to authorize any 
     public housing agency to limit the duration of tenancy in a 
     public housing dwelling unit or of tenant-based assistance.
       ``(G) For purposes of this section--
       ``(i) The term `covered family' means a family that--
       ``(I) receives benefits for welfare or public assistance 
     from a State or other public agency under a program for which 
     the Federal, State, or local law relating to the program 
     requires, as a condition of eligibility for assistance under 
     the program, participation of a member of the family in a 
     self-sufficiency program or work activities; and
       ``(II) resides in a public housing dwelling unit or 
     receives assistance under section 8.
       ``(ii) The term `self-sufficiency program' means any 
     program designed to encourage, assist, train, or facilitate 
     the economic independence of participants and their families 
     or to provide work for participants, including programs for 
     job training, employment counseling, work placement, basic 
     skills training, education, workfare, money or household 
     management, apprenticeship, or other activities.
       ``(iii) The term `work activities' means--
       ``(I) unsubsidized employment;
       ``(II) subsidized private sector employment;
       ``(III) subsidized public sector employment;
       ``(IV) work experience (including work associated with the 
     refurbishing of publicly assisted housing) if sufficient 
     private sector employment is not available;
       ``(V) on-the job training;
       ``(VI) job search and job readiness assistance;
       ``(VII) community service programs;
       ``(VIII) vocational education training (not to exceed 12 
     months with respect to any individual;
       ``(IX) job skills training directly related to employment;
       ``(X) education directly related to employment, in the case 
     of a recipient who has not received a high school diploma or 
     certificate of high school equivalency;
       ``(XI) satisfactory attendance at secondary school or in a 
     course of study leading to a certificate of general 
     equivalence, in the case of a recipient who has not completed 
     secondary school or received such a certificate; and
       ``(XII) the provision of child care services to an 
     individual who is participating in a community service 
     program.''.

     SEC. 208. STREAMLINING SECTION 8 TENANT-BASED ASSISTANCE.

       (a) Repeal of Take-One, Take-All Requirement.--Section 8(t) 
     of the United States Housing Act of 1937 is hereby repealed.
       (b) Exemption From Notice Requirements for the Certificate 
     and Voucher Programs.--Section 8(c) of such Act is amended--
       (1) in paragraph (8), by inserting after ``section'' the 
     following: ``(other than a contract for tenant-based 
     assistance)''; and
       (2) in the first sentence of paragraph (9), by striking 
     ``(but not less than 90 days in the case of housing 
     certificates or vouchers under subsection (b) or (o))'' and 
     inserting ``, other than a contract for tenant-based 
     assistance under this section''.
       (c) Endless Lease.--Section 8(d)(1)(B) of such Act is 
     amended--
       (1) in clause (ii), by inserting ``during the term of the 
     lease,'' after ``(ii)''; and
       (2) in clause (iii), by striking ``provide that'' and 
     inserting ``during the term of the lease,''.
       (d) Repeal.--Section 203 of the Departments of Veterans 
     Affairs and Housing and Urban Development, and Independent 
     Agencies Appropriations Act, 1996 is hereby repealed.

     SEC. 209. NONDISCRIMINATION AGAINST CERTIFICATE AND VOUCHER 
                   HOLDERS.

       In the case of any multifamily rental housing that is 
     receiving, or (except for insurance referred to in paragraph 
     (4)) has received within two years before the effective date 
     of this section, the benefit of Federal assistance from an 
     agency of the United States, the owner shall not refuse to 
     lease a reasonable number of units to families under the 
     tenant-based assistance program under section 8 of the United 
     States Housing Act of 1937 because of the status of the 
     prospective tenants as families under that program. The 
     Secretary shall establish reasonable time periods for 
     applying the requirement of this section, taking into account 
     the total amount of the assistance and the relative share of 
     the assistance compared to the total cost of financing, 
     developing, rehabilitating, or otherwise assisting a project. 
     Federal assistance for purposes of this subsection shall 
     mean--
       (1) project-based assistance under the United States 
     Housing Act of 1937;
       (2) assistance under title I of the Housing and Community 
     Development Act of 1974;
       (3) assistance under title II of the Cranston-Gonzalez 
     National Affordable Housing Act;
       (4) mortgage insurance under the National Housing Act;
       (5) low-income housing tax credits under section 42 of the 
     Internal Revenue Code of 1986;
       (6) assistance under title IV of the Stewart B. McKinney 
     Homeless Assistance Act; and
       (7) assistance under any other programs designated by the 
     Secretary of Housing and Urban Development.

     SEC. 210. RECAPTURE AND REUSE OF ACC PROJECT RESERVES UNDER 
                   TENANT-BASED ASSISTANCE PROGRAM.

       Section 8(d) of the United States Housing Act of 1937 is 
     amended by inserting at the end the following new paragraph:
       ``(5) To the extent that the Secretary determines that the 
     amount in the ACC reserve account under a contract with a 
     public housing agency for tenant-based assistance under this 
     section is in excess of the amount needed by the agency, the 
     Secretary shall recapture such excess amount. The Secretary 
     may hold recaptured amounts in reserve until needed to amend 
     or renew such contracts with any agency.''.

     SEC. 211. EXPANDING THE COVERAGE OF THE PUBLIC AND ASSISTED 
                   HOUSING DRUG ELIMINATION ACT OF 1990.

       (a) Short Title, Purposes, and Authority To Make Grants.--
     Chapter 2 of subtitle C of title V of the Anti-Drug Abuse Act 
     of 1988 (42 U.S.C. 11901 et seq.) is amended by striking the 
     chapter heading and all that follows through section 5123 and 
     inserting the following:

[[Page H2001]]

           ``CHAPTER 2--COMMUNITY PARTNERSHIPS AGAINST CRIME

     ``SEC. 5121. SHORT TITLE.

       ``This chapter may be cited as the `Community Partnerships 
     Against Crime Act of 1997'.

     ``SEC. 5122. PURPOSES.

       ``The purposes of this chapter are to--
       ``(1) improve the quality of life for the vast majority of 
     law-abiding public housing residents by reducing the levels 
     of fear, violence, and crime in their communities;
       ``(2) broaden the scope of the Public and Assisted Housing 
     Drug Elimination Act of 1990 to apply to all types of crime, 
     and not simply crime that is drug-related; and
       ``(3) reduce crime and disorder in and around public 
     housing through the expansion of community-oriented policing 
     activities and problem solving.

     ``SEC. 5123. AUTHORITY TO MAKE GRANTS.

       ``The Secretary of Housing and Urban Development may make 
     grants in accordance with the provisions of this chapter for 
     use in eliminating crime in and around public housing and 
     other federally assisted low-income housing projects to (1) 
     public housing agencies, and (2) private, for-profit and 
     nonprofit owners of federally assisted low-income housing.''.
       (b) Eligible Activities.--
       (1) In general.--Section 5124(a) of the Anti-Drug Abuse Act 
     of 1988 (42 U.S.C. 11903(a)) is amended--
       (A) in the matter preceding paragraph (1), by inserting 
     ``and around'' after ``used in'';
       (B) in paragraph (3), by inserting before the semicolon the 
     following: ``, including fencing, lighting, locking, and 
     surveillance systems'';
       (C) in paragraph (4), by striking subparagraph (A) and 
     inserting the following new subparagraph:
       ``(A) to investigate crime; and'';
       (D) in paragraph (6)--
       (i) by striking ``in and around public or other federally 
     assisted low-income housing projects''; and
       (ii) by striking ``and'' after the semicolon; and
       (E) by striking paragraph (7) and inserting the following 
     new paragraphs:
       ``(7) providing funding to nonprofit public housing 
     resident management corporations and resident councils to 
     develop security and crime prevention programs involving site 
     residents;
       ``(8) the employment or utilization of one or more 
     individuals, including law enforcement officers, made 
     available by contract or other cooperative arrangement with 
     State or local law enforcement agencies, to engage in 
     community- and problem-oriented policing involving 
     interaction with members of the community in proactive crime 
     control and prevention activities;
       ``(9) programs and activities for or involving youth, 
     including training, education, recreation and sports, career 
     planning, and entrepreneurship and employment activities and 
     after school and cultural programs; and
       ``(10) service programs for residents that address the 
     contributing factors of crime, including programs for job 
     training, education, drug and alcohol treatment, and other 
     appropriate social services.''.
       (2) Other pha-owned housing.--Section 5124(b) of the Anti-
     Drug Abuse Act of 1988 (42 U.S.C. 11903(b)) is amended--
       (A) in the matter preceding paragraph (1)--
       (i) by striking ``drug-related crime in'' and inserting 
     ``crime in and around''; and
       (ii) by striking ``paragraphs (1) through (7)'' and 
     inserting ``paragraphs (1) through (10)''; and
       (B) in paragraph (2), by striking ``drug-related'' and 
     inserting ``criminal''.
       (c) Grant Procedures.--Section 5125 of the Anti-Drug Abuse 
     Act of 1988 (42 U.S.C. 11904) is amended to read as follows:

     ``SEC. 5125. GRANT PROCEDURES.

       ``(a) PHA's With 250 or More Units.--
       ``(1) Grants.--In each fiscal year, the Secretary shall 
     make a grant under this chapter from any amounts available 
     under section 5131(b)(1) for the fiscal year to each of the 
     following public housing agencies:
       ``(A) New applicants.--Each public housing agency that owns 
     or operates 250 or more public housing dwelling units and 
     has--
       ``(i) submitted an application to the Secretary for a grant 
     for such fiscal year, which includes a 5-year crime 
     deterrence and reduction plan under paragraph (2); and
       ``(ii) had such application and plan approved by the 
     Secretary.
       ``(B) Renewals.--Each public housing agency that owns or 
     operates 250 or more public housing dwelling units and for 
     which--
       ``(i) a grant was made under this chapter for the preceding 
     Federal fiscal year;
       ``(ii) the term of the 5-year crime deterrence and 
     reduction plan applicable to such grant includes the fiscal 
     year for which the grant under this subsection is to be made; 
     and
       ``(iii) the Secretary has determined, pursuant to a 
     performance review under paragraph (4), that during the 
     preceding fiscal year the agency has substantially fulfilled 
     the requirements under subparagraphs (A) and (B) of paragraph 
     (4).
     Notwithstanding subparagraphs (A) and (B), the Secretary may 
     make a grant under this chapter to a public housing agency 
     that owns or operates 250 or more public housing dwelling 
     units only if the agency includes in the application for the 
     grant information that demonstrates, to the satisfaction of 
     the Secretary, that the agency has a need for the grant 
     amounts based on generally recognized crime statistics 
     showing that (I) the crime rate for the public housing 
     developments of the agency (or the immediate neighborhoods in 
     which such developments are located) is higher than the crime 
     rate for the jurisdiction in which the agency operates, (II) 
     the crime rate for the developments (or such neighborhoods) 
     is increasing over a period of sufficient duration to 
     indicate a general trend, or (III) the operation of the 
     program under this chapter substantially contributes to the 
     reduction of crime.
       ``(2) 5-year crime deterrence and reduction plan.--Each 
     application for a grant under this subsection shall contain a 
     5-year crime deterrence and reduction plan. The plan shall be 
     developed with the participation of residents and appropriate 
     law enforcement officials. The plan shall describe, for the 
     public housing agency submitting the plan--
       ``(A) the nature of the crime problem in public housing 
     owned or operated by the public housing agency;
       ``(B) the building or buildings of the public housing 
     agency affected by the crime problem;
       ``(C) the impact of the crime problem on residents of such 
     building or buildings; and
       ``(D) the actions to be taken during the term of the plan 
     to reduce and deter such crime, which shall include actions 
     involving residents, law enforcement, and service providers.
     The term of a plan shall be the period consisting of 5 
     consecutive fiscal years, which begins with the first fiscal 
     year for which funding under this chapter is provided to 
     carry out the plan.
       ``(3) Amount.--In any fiscal year, the amount of the grant 
     for a public housing agency receiving a grant pursuant to 
     paragraph (1) shall be the amount that bears the same ratio 
     to the total amount made available under section 5131(b)(1) 
     as the total number of public dwelling units owned or 
     operated by such agency bears to the total number of dwelling 
     units owned or operated by all public housing agencies that 
     own or operate 250 or more public housing dwelling units that 
     are approved for such fiscal year.
       ``(4) Performance review.--For each fiscal year, the 
     Secretary shall conduct a performance review of the 
     activities carried out by each public housing agency 
     receiving a grant pursuant to this subsection to determine 
     whether the agency--
       ``(A) has carried out such activities in a timely manner 
     and in accordance with its 5-year crime deterrence and 
     reduction plan; and
       ``(B) has a continuing capacity to carry out such plan in a 
     timely manner.
       ``(5) Submission of applications.--The Secretary shall 
     establish such deadlines and requirements for submission of 
     applications under this subsection.
       ``(6) Review and determination.--The Secretary shall review 
     each application submitted under this subsection upon 
     submission and shall approve the application unless the 
     application and the 5-year crime deterrence and reduction 
     plan are inconsistent with the purposes of this chapter or 
     any requirements established by the Secretary or the 
     information in the application or plan is not substantially 
     complete. Upon approving or determining not to approve an 
     application and plan submitted under this subsection, the 
     Secretary shall notify the public housing agency submitting 
     the application and plan of such approval or disapproval.
       ``(7) Disapproval of applications.--If the Secretary 
     notifies an agency that the application and plan of the 
     agency is not approved, not later than the expiration of the 
     15-day period beginning upon such notice of disapproval, the 
     Secretary shall also notify the agency, in writing, of the 
     reasons for the disapproval, the actions that the agency 
     could take to comply with the criteria for approval, and the 
     deadlines for such actions.
       ``(8) Failure to approve or disapprove.--If the Secretary 
     fails to notify an agency of approval or disapproval of an 
     application and plan submitted under this subsection before 
     the expiration of the 60-day period beginning upon the 
     submission of the plan or fails to provide notice under 
     paragraph (7) within the 15-day period under such paragraph 
     to an agency whose application has been disapproved, the 
     application and plan shall be considered to have been 
     approved for purposes of this section.
       ``(b) PHA's With Fewer Than 250 Units and Owners of 
     Federally Assisted Low-Income Housing.--
       ``(1) Applications and plans.--To be eligible to receive a 
     grant under this chapter, a public housing agency that owns 
     or operates fewer than 250 public housing dwelling units or 
     an owner of federally assisted low-income housing shall 
     submit an application to the Secretary at such time, in such 
     manner, and accompanied by such additional information as the 
     Secretary may require. The application shall include a plan 
     for addressing the problem of crime in and around the housing 
     for which the application is submitted, describing in detail 
     activities to be conducted during the fiscal year for which 
     the grant is requested.
       ``(2) Grants for pha's with fewer than 250 units.--In each 
     fiscal year the Secretary may, to the extent amounts are 
     available under section 5131(b)(2), make grants under this 
     chapter to public housing agencies that own or operate fewer 
     than 250 public housing dwelling units and have submitted 
     applications under paragraph (1) that the Secretary

[[Page H2002]]

     has approved pursuant to the criteria under paragraph (4).
       ``(3) Grants for federally assisted low-income housing.--In 
     each fiscal year the Secretary may, to the extent amounts are 
     available under section 5131(b)(3), make grants under this 
     chapter to owners of federally assisted low-income housing 
     that have submitted applications under paragraph (1) that the 
     Secretary has approved pursuant to the criteria under 
     paragraphs (4) and (5).
       ``(4) Criteria for approval of applications.--The Secretary 
     shall determine whether to approve each application under 
     this subsection on the basis of--
       ``(A) the extent of the crime problem in and around the 
     housing for which the application is made;
       ``(B) the quality of the plan to address the crime problem 
     in the housing for which the application is made;
       ``(C) the capability of the applicant to carry out the 
     plan; and
       ``(D) the extent to which the tenants of the housing, the 
     local government, local community-based nonprofit 
     organizations, local tenant organizations representing 
     residents of neighboring projects that are owned or assisted 
     by the Secretary, and the local community support and 
     participate in the design and implementation of the 
     activities proposed to be funded under the application.
     In each fiscal year, the Secretary may give preference to 
     applications under this subsection for housing made by 
     applicants who received a grant for such housing for the 
     preceding fiscal year under this subsection or under the 
     provisions of this chapter as in effect immediately before 
     the date of the enactment of the Housing Opportunity and 
     Responsibility Act of 1997.
       ``(5) Additional criteria for federally assisted low-income 
     housing.--In addition to the selection criteria under 
     paragraph (4), the Secretary may establish other criteria for 
     evaluating applications submitted by owners of federally 
     assisted low-income housing, except that such additional 
     criteria shall be designed only to reflect--
       ``(A) relevant differences between the financial resources 
     and other characteristics of public housing agencies and 
     owners of federally assisted low-income housing; or
       ``(B) relevant differences between the problem of crime in 
     public housing administered by such authorities and the 
     problem of crime in federally assisted low-income housing.''.
       (d) Definitions.--Section 5126 of the Anti-Drug Abuse Act 
     of 1988 (42 U.S.C. 11905) is amended--
       (1) by striking paragraphs (1) and (2);
       (2) in paragraph (4)(A), by striking ``section'' before 
     ``221(d)(4)'';
       (3) by redesignating paragraphs (3) and (4) (as so amended) 
     as paragraphs (1) and (2), respectively; and
       (4) by adding at the end the following new paragraph:
       ``(3) Public housing agency.--The term `public housing 
     agency' has the meaning given the term in section 3 of the 
     United States Housing Act of 1937.''.
       (e) Implementation.--Section 5127 of the Anti-Drug Abuse 
     Act of 1988 (42 U.S.C. 11906) is amended by striking 
     ``Cranston-Gonzalez National Affordable Housing Act'' and 
     inserting ``Public Housing Management Reform Act of 1997''.
       (f) Reports.--Section 5128 of the Anti-Drug Abuse Act of 
     1988 (42 U.S.C. 11907) is amended--
       (1) by striking ``drug-related crime in'' and inserting 
     ``crime in and around''; and
       (2) by striking ``described in section 5125(a)'' and 
     inserting ``for the grantee submitted under subsection (a) or 
     (b) of section 5125, as applicable''.
       (g) Funding and Program Sunset.--Chapter 2 of subtitle C of 
     title V of the Anti-Drug Abuse Act of 1988 is amended by 
     striking section 5130 (42 U.S.C. 11909) and inserting the 
     following new section:

     ``SEC. 5130. FUNDING.

       ``(a) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this chapter 
     $290,000,000 for each of fiscal years 1998, 1999, 2000, 2001, 
     and 2002.
       ``(b) Allocation.--Of any amounts available, or that the 
     Secretary is authorized to use, to carry out this chapter in 
     any fiscal year--
       ``(1) 85 percent shall be available only for assistance 
     pursuant to section 5125(a) to public housing agencies that 
     own or operate 250 or more public housing dwelling units;
       ``(2) 10 percent shall be available only for assistance 
     pursuant to section 5125(b)(2) to public housing agencies 
     that own or operate fewer than 250 public housing dwelling 
     units; and
       ``(3) 5 percent shall be available only for assistance to 
     federally assisted low-income housing pursuant to section 
     5125(b)(3).
       ``(c) Retention of Proceeds of Asset Forfeitures by 
     Inspector General.--Notwithstanding section 3302 of title 31, 
     United States Code, or any other provision of law affecting 
     the crediting of collections, the proceeds of forfeiture 
     proceedings and funds transferred to the Office of Inspector 
     General of the Department of Housing and Urban Development, 
     as a participating agency, from the Department of Justice 
     Assets Forfeiture Fund or the Department of the Treasury 
     Forfeiture Fund, as an equitable share from the forfeiture of 
     property in investigations in which the Office of Inspector 
     General participates, shall be deposited to the credit of the 
     Office of Inspector General for Operation Safe Home 
     activities authorized under the Inspector General Act of 
     1978, as amended, to remain available until expended.''.
       (h) Conforming Amendments.--The table of contents in 
     section 5001 of the Anti-Drug Abuse Act of 1988 (Public Law 
     100-690; 102 Stat. 4295) is amended--
       (1) by striking the item relating to the heading for 
     chapter 2 of subtitle C of title V and inserting the 
     following:

          ``Chapter 2--Community Partnerships Against Crime'';

       (2) by striking the item relating to section 5122 and 
     inserting the following new item:

``Sec. 5122. Purposes.'';
       (3) by striking the item relating to section 5125 and 
     inserting the following new item:

``Sec. 5125. Grant procedures.'';
     and
       (4) by striking the item relating to section 5130 and 
     inserting the following new item:

``Sec. 5130. Funding.''.
       (i) Treatment of NOFA.--The cap limiting assistance under 
     the Notice of Funding Availability issued by the Department 
     of Housing and Urban Development in the Federal Register of 
     April 8, 1996, shall not apply to a public housing agency 
     within an area designated as a high intensity drug 
     trafficking area under section 1005(c) of the Anti-Drug Abuse 
     Act of 1988 (21 U.S.C. 1504(c)).
       (j) Effective Date.--This section and the amendments made 
     by this section shall take effect on the date of the 
     enactment of this Act.

     SEC. 212. STUDY REGARDING RENTAL ASSISTANCE.

       The Secretary shall conduct a nationwide study of the 
     tenant-based rental assistance program under section 8 of the 
     United States Housing Act of 1937 (as in effect pursuant to 
     section 601(c) and 602(b)). The study shall, for various 
     localities--
       (1) determine who are the providers of the housing in which 
     families assisted under such program reside;
       (2) describe and analyze the physical and demographic 
     characteristics of the housing in which such assistance is 
     used, including, for housing in which at least one such 
     assisted family resides, the total number of units in the 
     housing and the number of units in the housing for which such 
     assistance is provided;
       (3) determine the total number of units for which such 
     assistance is provided;
       (4) describe the durations that families remain on waiting 
     lists before being provided such housing assistance; and
       (5) assess the extent and quality of participation of 
     housing owners in such assistance program in relation to the 
     local housing market, including comparing--
       (A) the quality of the housing assisted to the housing 
     generally available in the same market; and
       (B) the extent to which housing is available to be occupied 
     using such assistance to the extent to which housing is 
     generally available in the same market.
     The Secretary shall submit a report describing the results of 
     the study to the Congress not later than the expiration of 
     the 2-year period beginning on the date of the enactment of 
     this Act.
     TITLE III--``ONE-STRIKE AND YOU'RE OUT'' OCCUPANCY PROVISIONS

     SEC. 301. SCREENING OF APPLICANTS.

       (a) Ineligibility Because of Past Evictions.--Any household 
     or member of a household evicted from federally assisted 
     housing (as defined in section 305) by reason of drug-related 
     criminal activity (as defined in section 305) or for other 
     serious violations of the terms or conditions of the lease 
     shall not be eligible for federally assisted housing--
       (1) in the case of eviction by reason of drug-related 
     criminal activity, for a period of not less than three years 
     from the date of the eviction unless the evicted member of 
     the household successfully completes a rehabilitation 
     program; and
       (2) for other evictions, for a reasonable period of time as 
     determined by the public housing agency or owner of the 
     federally assisted housing, as applicable.
     The requirements of paragraphs (1) and (2) may be waived if 
     the circumstances leading to eviction no longer exist.
       (b) Ineligibility of Illegal Drug Users and Alcohol 
     Abusers.--Notwithstanding any other provision of law, a 
     public housing agency or an owner of federally assisted 
     housing, or both, as determined by the Secretary, shall 
     establish standards that prohibit admission to the program or 
     admission to federally assisted housing for any household 
     with a member--
       (1) who the public housing agency or the owner determines 
     is engaging in the illegal use of a controlled substance; or
       (2) with respect to whom the public housing agency or the 
     owner determines that it has reasonable cause to believe that 
     such household member's illegal use (or pattern of illegal 
     use) of a controlled substance, or abuse (or pattern of 
     abuse) of alcohol would interfere with the health, safety, or 
     right to peaceful enjoyment of the premises by other 
     residents.
       (c) Consideration of Rehabilitation.--In determining 
     whether, pursuant to subsection (b)(2), to deny admission to 
     the program or to federally assisted housing to any household 
     based on a pattern of illegal use of a controlled substance 
     or a pattern of abuse of alcohol by a household member, a 
     public housing agency or an owner may consider whether such 
     household member--
       (1) has successfully completed an accredited drug or 
     alcohol rehabilitation program (as applicable) and is no 
     longer engaging in

[[Page H2003]]

     the illegal use of a controlled substance or abuse of alcohol 
     (as applicable);
       (2) has otherwise been rehabilitated successfully and is no 
     longer engaging in the illegal use of a controlled substance 
     or abuse of alcohol (as applicable); or
       (3) is participating in an accredited drug or alcohol 
     rehabilitation program (as applicable) and is no longer 
     engaging in the illegal use of a controlled substance or 
     abuse of alcohol (as applicable).
       (d) Authority To Deny Admission to the Program or to 
     Federally Assisted Housing for Certain Criminal Offenders.--
     In addition to the provisions of subsections (a) and (b) and 
     in addition to any other authority to screen applicants, in 
     selecting among applicants for admission to the program or to 
     federally assisted housing, if the public housing agency or 
     owner of such housing, as applicable, determines that an 
     applicant or any member of the applicant's household is or 
     was, during a reasonable time preceding the date when the 
     applicant household would otherwise be selected for 
     admission, engaged in any drug-related or violent criminal 
     activity or other criminal activity which would adversely 
     affect the health, safety, or right to peaceful enjoyment of 
     the premises by other residents, the owner or public housing 
     agency may--
       (1) deny such applicant admission to the program or to 
     federally assisted housing; and
       (2) after expiration of the reasonable period beginning 
     upon such activity, require the applicant, as a condition of 
     admission to the program or to federally assisted housing, to 
     submit to the owner or public housing agency evidence 
     sufficient (as the Secretary shall by regulation provide) to 
     ensure that the individual or individuals in the applicant's 
     household who engaged in such criminal activity for which 
     denial was made under this subsection have not engaged in any 
     such criminal activity during such reasonable time.
       (e) Authority To Require Access to Criminal Records.----A 
     public housing agency may require, as a condition of 
     providing admission to the public housing program, that each 
     adult member of the household provide a signed, written 
     authorization for the public housing agency to obtain records 
     described in section 304 regarding such member of the 
     household from the National Crime Information Center, police 
     departments, and other law enforcement agencies.

     SEC. 302. TERMINATION OF TENANCY AND ASSISTANCE.

       (a) Termination of Tenancy and Assistance for Illegal Drug 
     Users and Alcohol Abusers.--Notwithstanding any other 
     provision of law, a public housing agency or an owner of 
     federally assisted housing, as applicable, shall establish 
     standards or lease provisions for continued assistance or 
     occupancy in federally assisted housing that allow a public 
     housing agency or the owner, as applicable, to terminate the 
     tenancy or assistance for any household with a member--
       (1) who the public housing agency or owner determines is 
     engaging in the illegal use of a controlled substance; or
       (2) whose illegal use of a controlled substance, or whose 
     abuse of alcohol, is determined by the public housing agency 
     or owner to interfere with the health, safety, or right to 
     peaceful enjoyment of the premises by other residents.
       (b) Termination of Assistance for Serious Lease 
     Violation.--Notwithstanding any other provision of law, the 
     public housing agency must terminate tenant-based assistance 
     for all household members if the household is evicted from 
     assisted housing for serious violation of the lease.

     SEC. 303. LEASE REQUIREMENTS.

       In addition to any other applicable lease requirements, 
     each lease for a dwelling unit in federally assisted housing 
     shall provide that--
       (1) the owner may not terminate the tenancy except for 
     serious or repeated violation of the terms and conditions of 
     the lease, violation of applicable Federal, State, or local 
     law, or other good cause; and
       (2) grounds for termination of tenancy shall include any 
     activity, engaged in by the tenant, any member of the 
     tenant's household, any guest, or any other person under the 
     control of any member of the household, that--
       (A) threatens the health or safety of, or right to peaceful 
     enjoyment of the premises by, other tenants or employees of 
     the public housing agency, owner or other manager of the 
     housing,
       (B) threatens the health or safety of, or right to peaceful 
     enjoyment of their residences by, persons residing in the 
     immediate vicinity of the premises, or
       (C) is drug-related or violent criminal activity on or off 
     the premises.

     SEC. 304. AVAILABILITY OF CRIMINAL RECORDS FOR PUBLIC HOUSING 
                   TENANT SCREENING AND EVICTION.

       (a) In General.--
       (1) Provision of information.--Notwithstanding any other 
     provision of law other than paragraphs (2) and (3), upon the 
     request of a public housing agency, the National Crime 
     Information Center, a police department, and any other law 
     enforcement agency shall provide to the public housing agency 
     information regarding the criminal conviction records of an 
     adult applicant for, or tenants of, the public housing for 
     purposes of applicant screening, lease enforcement, and 
     eviction, but only if the public housing agency requests such 
     information and presents to such Center, department, or 
     agency a written authorization, signed by such applicant, for 
     the release of such information to such public housing 
     agency.
       (2) Exception.--A law enforcement agency described in 
     paragraph (1) shall provide information under this paragraph 
     relating to any criminal conviction of a juvenile only to the 
     extent that the release of such information is authorized 
     under the law of the applicable State, tribe, or locality.
       (b) Confidentiality.--A public housing agency receiving 
     information under this section may use such information only 
     for the purposes provided in this section and such 
     information may not be disclosed to any person who is not an 
     officer, employee, or authorized representative of the public 
     housing agency and who has a job-related need to have access 
     to the information in connection with admission of 
     applicants, eviction of tenants, or termination of 
     assistance. However, for judicial eviction proceedings, 
     disclosures may be made to the extent necessary. The 
     Secretary shall, by regulation, establish procedures 
     necessary to ensure that information provided under this 
     section to any public housing agency is used, and 
     confidentiality of such information is maintained, as 
     required under this section.
       (c) Opportunity To Dispute.--Before an adverse action is 
     taken with regard to assistance for public housing on the 
     basis of a criminal record, the public housing agency shall 
     provide the tenant or applicant with a copy of the criminal 
     record and an opportunity to dispute the accuracy and 
     relevance of that record.
       (d) Fee.--A public housing agency may be charged a 
     reasonable fee for information provided under subsection (a).
       (e) Records Management.--Each public housing agency that 
     receives criminal record information under this section shall 
     establish and implement a system of records management that 
     ensures that any criminal record received by the agency is--
       (1) maintained confidentially;
       (2) not misused or improperly disseminated; and
       (3) destroyed in a timely fashion, once the purpose for 
     which the record was requested has been accomplished.
       (f) Penalty.--Any person who knowingly and willfully 
     requests or obtains any information concerning an applicant 
     for, or resident of, public housing pursuant to the authority 
     under this section under false pretenses, or any person who 
     knowingly or willfully discloses any such information in any 
     manner to any individual not entitled under any law to 
     receive it, shall be guilty of a misdemeanor and fined not 
     more than $5,000. The term ``person'' as used in this 
     subsection shall include an officer, employee, or authorized 
     representative of any public housing agency.
       (g) Civil Action.--Any applicant for, or resident of, 
     public housing affected by (1) a negligent or knowing 
     disclosure of information referred to in this section about 
     such person by an officer or employee of any public housing 
     agency, which disclosure is not authorized by this section, 
     or (2) any other negligent or knowing action that is 
     inconsistent with this section, may bring a civil action for 
     damages and such other relief as may be appropriate against 
     any public housing agency responsible for such unauthorized 
     action. The district court of the United States in the 
     district in which the affected applicant or resident resides, 
     in which such unauthorized action occurred, or in which the 
     officer or employee alleged to be responsible for any such 
     unauthorized action resides, shall have jurisdiction in such 
     matters. Appropriate relief that may be ordered by such 
     district courts shall include reasonable attorney's fees and 
     other litigation costs.
       (h) Definition of Adult.--For purposes of this section, the 
     term ``adult'' means a person who is 18 years of age or 
     older, or who has been convicted of a crime as an adult under 
     any Federal, State, or tribal law.

     SEC. 305. DEFINITIONS.

       For purposes of this title, the following definitions shall 
     apply:
       (1) Federally assisted housing.--The term ``federally 
     assisted housing'' means a unit in--
       (A) public housing under the United States Housing Act of 
     1937;
       (B) housing assisted under section 8 of the United States 
     Housing Act of 1937 including both tenant-based assistance 
     and project-based assistance;
       (C) housing that is assisted under section 202 of the 
     Housing Act of 1959 (as amended by section 801 of the 
     Cranston-Gonzalez National Affordable Housing Act);
       (D) housing that is assisted under section 202 of the 
     Housing Act of 1959, as such section existed before enactment 
     of the Cranston-Gonzalez National Affordable Housing Act;
       (E) housing that is assisted under section 811 of the 
     Cranston-Gonzalez National Affordable Housing Act;
       (F) housing financed by a loan or mortgage insured under 
     section 221(d)(3) of the National Housing Act that bears 
     interest at a rate determined under the proviso of section 
     221(d)(5) of such Act;
       (G) housing with a mortgage insured, assisted, or held by 
     the Secretary or a State or State agency under section 236 of 
     the National Housing Act; and
       (H) for purposes only of subsections 301(c), 301(d), 303, 
     and 304, housing assisted under section 515 of the Housing 
     Act of 1949.

[[Page H2004]]

       (2) Drug-related criminal activity.--The term ``drug-
     related criminal activity'' means the illegal manufacture, 
     sale, distribution, use, or possession with intent to 
     manufacture, sell, distribute, or use, of a controlled 
     substance (as defined in section 102 of the Controlled 
     Substances Act (21 U.S.C. 802)).
       (3) Owner.--The term ``owner'' means, with respect to 
     federally assisted housing, the entity or private person, 
     including a cooperative or public housing agency, that has 
     the legal right to lease or sublease dwelling units in such 
     housing.

     SEC. 306. CONFORMING AMENDMENTS.

       (a) Consolidation of Public Housing One Strike 
     Provisions.--Section 6 of the United States Housing Act of 
     1937 is amended--
       (1) by striking subsections (l)(4) and (l)(5) and the last 
     sentence of subsection (l), and redesignating paragraphs (6) 
     and (7) as paragraphs (4) and (5);
       (2) by striking subsection (q); and
       (3) by striking subsection (r).
       (b) Consolidation of Section 8 One Strike Provisions.--
     Section 8 of the United States Housing Act of 1937 (42 U.S.C. 
     1437f) is amended--
       (1) by striking subsections (d)(1)(B)(ii) and 
     (d)(1)(B)(iii), and redesignating clauses (iv) and (v) as 
     clauses (ii) and (iii); and
       (2) by striking subsection (f)(5) and redesignating 
     paragraphs (6) and (7) as paragraphs (5) and (6), 
     respectively.
       (c) Consolidation of One Strike Eligibility Provisions.--
     Section 16 of the United States Housing Act of 1937 is 
     amended by striking subsection (e).
                     TITLE IV--TREATMENT OF AMOUNTS

     SEC. 401. REQUIREMENT OF APPROPRIATIONS.

       Notwithstanding any other provision of this Act, any 
     provision of this Act or of any amendment made by this Act 
     that otherwise provides amounts or makes amounts available 
     shall be effective only to the extent or in such amounts as 
     are or have been provided in advance in appropriation Acts.

                                 H.R. 2

                Offered By: Mr. Kennedy of Massachusetts

       Amendment No. 11: Page 96, strike line 1 and all that 
     follows through page 97, line 22, and insert the following:
       (c) Income Mix.--
       (1) PHA-wide requirement.--Of the public housing dwelling 
     units of a public housing agency made available for occupancy 
     by eligible families in any fiscal year of the agency--
       (A) not less than 40 percent shall be occupied by families 
     whose incomes do not exceed 30 percent of the area median 
     income; and
       (B) not less than 90 percent shall be occupied by families 
     whose incomes do not exceed 60 percent of the area median 
     income.
       (2) Prohibition of concentration of low-income families.--A 
     public housing agency may not, in complying with the 
     requirements under paragraph (1), concentrate very low-income 
     families (or other families with relatively low incomes) in 
     public housing dwelling units in certain public housing 
     developments or certain buildings within developments. The 
     Secretary may review the income and occupancy characteristics 
     of the public housing developments, and the buildings of such 
     developments, of public housing agencies to ensure compliance 
     with the provisions of this paragraph.
       (3) Area median income.--For purposes of this subsection, 
     the term ``area median income'' means the median income of an 
     area, as determined by the Secretary with adjustments for 
     smaller and larger families, except that the Secretary may 
     establish income ceilings higher or lower than the 
     percentages specified in this subsection if the Secretary 
     finds determines that such variations are necessary because 
     of unusually high or low family incomes.

                                 H.R. 2

                Offered By: Mr. Kennedy of Massachusetts

       Amendment No. 12: Page 174, line 20, insert ``VERY'' before 
     ``LOW-INCOME''.
       Page 175, line 11, insert ``very'' before ``low-income''.
       Page 187, line 5, insert ``Very'' before ``Low-Income''.
       Page 187, line 10, insert ``very'' before ``low-income''.
       Page 187, strike lines 13 through 22 and insert the 
     following:
       (b) Income Targeting.--
       (1) PHA-wide requirement.--Of all the families who 
     initially receive housing assistance under this title from a 
     public housing agency in any fiscal year of the agency, not 
     less than 75 percent shall be families whose incomes do not 
     exceed 30 percent of the area median income.
       (2) Area median income.--For purposes of this subsection, 
     the term ``area median income'' means the median income of an 
     area, as determined by the Secretary with adjustments for 
     smaller and larger families, except that the Secretary may 
     establish income ceilings higher or lower than the 
     percentages specified in subsection (a) if the Secretary 
     finds determines that such variations are necessary because 
     of unusually high or low family incomes.
       Page 205, line 7, insert ``very'' before ``low-income''.
       Page 205, line 24, insert ``very'' before ``low-''.
       Page 211, line 6, insert ``very'' before ``low-income''.
       Page 214, line 1, insert ``very'' before ``low-income''.

                                 H.R. 2

                Offered By: Mr. Kennedy of Massachusetts

       Amendment No. 13: Page 220, strike line 12 and all that 
     follows through line 12 on page 237 (and redesignate 
     subsequent provisions and any references to such provisions, 
     and conform the table of contents, accordingly).

                                 H.R. 2

                         Offered By: Mr. Klink

       Amendment No. 14: Page 335, after line 6, insert the 
     following new section:

     SEC. 709. CONSULTATION WITH LOCAL GOVERNMENTS.

       The Department of Housing and Urban Development Act (42 
     U.S.C. 3531 et seq.) is amended by inserting after section 12 
     the following new section:


  ``consultation with local governments regarding low-income housing 
              assistance for multifamily housing projects

       ``Sec. 13. (a) In General.--After the completion of any 
     selection process regarding low-income housing assistance, 
     but before making any new commitment or obligation for low-
     income housing assistance for a multifamily housing project 
     selected for such assistance, the Secretary shall--
       ``(1) notify the chief executive officer (or other 
     appropriate official) of the unit of general local government 
     in which the housing to be assisted is located (or to be 
     located) of such commitment or obligation; and
       ``(2) pursuant to the request of such unit of general local 
     government, provide such information as may reasonably be 
     requested by such unit of general local government regarding 
     the assisted housing project (except to the extent otherwise 
     prohibited by law) and consult with representatives of such 
     local government regarding the assisted housing project.

     This section may not be construed to authorize the release of 
     any covered selection information during any selection 
     process which is otherwise prohibited under section 12.
       ``(b) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Covered selection information.--The term `covered 
     selection information' has the meaning given such term in 
     section 12(e).
       ``(2) Low-income housing assistance.--The term `low-income 
     housing assistance' means any grant, loan, subsidy, 
     guarantee, insurance, or other financial assistance for new 
     or existing housing provided under a program administered by 
     the Secretary, under which occupancy or ownership of some or 
     all of the dwelling units in the housing assisted is limited, 
     restricted, or determined (pursuant to the laws or 
     regulations relating to such assistance) based on the income 
     of the individual or family occupying or purchasing the unit.
       ``(3) Multifamily housing project.--The term `multifamily 
     housing project' means a property that consists of 5 or more 
     dwelling units.
       ``(4) New.--The term `new', when used in reference to the 
     commitment or obligation of low-income housing assistance for 
     a multifamily housing project, means that, at the time such 
     commitment or obligation is made--
       ``(A) such project is not receiving such low-income housing 
     assistance and is not subject to a contract or agreement 
     under the program for such low-income housing assistance; and
       ``(B) such commitment or obligation is not made pursuant to 
     the renewal of a previous contract, obligation, or commitment 
     for such assistance for such project.
       ``(5) Selection process.--The term `selection process' has 
     the meaning given such term in section 12(e).
       ``(6) Unit of general local government.--The term `unit of 
     general local government' means any city, town, township, 
     county, parish, village, or other general purpose political 
     subdivision of a State.''.

                                 H.R. 2

                         Offered By: Mr. Lazio

       Amendment No. 15 Page 78, line 22, after ``used'' insert 
     ``, to the extent or in such amounts as are or have been 
     provided in advance in appropriations Acts,''.
       Page 79, after line 19, insert the following new 
     subsection:
       (e) Eligible Activities for Increased Income.--Any public 
     housing agency that derives increased nonrental or rental 
     income, as referred to in subsection (c)(2)(B) or (d)(1)(D) 
     of section 204 or pursuant to provision of mixed-income 
     developments under section 221(c)(2), may use such amounts 
     for any eligible activity under paragraph(1) or (2) of 
     subsection (a) of this section or for providing choice-based 
     housing assistance under title III.
       Page 116, line 6, after ``used'' insert ``, to the extent 
     or in such amounts as are or have been provided in advance in 
     appropriations Acts,''.
       Page 137, line 14, strike ``for financial assistance under 
     this title'' and insert ``under section 282(1) for use under 
     the capital fund''.
       Page 164, after line 16, insert the following:
       (n) Treatment of Previous Selections.--A public housing 
     agency that has been selected to receive amounts under the 
     notice of funding availability for fiscal year 1996 amounts 
     for the HOPE VI program (provided under the heading ``public 
     housing demolition, site revitalization, and replacement 
     housing grants'' in title II of the Departments of Veterans 
     Affairs and Housing and Urban Development, and Independent 
     Agencies Appropriations Act, 1996 (42 U.S.C. 14371

[[Page H2005]]

     note) (enacted as section 101(e) of Omnibus Consolidated 
     Rescission and Appropriations Act of 1996 (Public Law 104-
     134; 100 Stat. 1321-269)) may apply to the Secretary of 
     Housing and Urban Development for a waiver of the total 
     development cost rehabilitation requirement otherwise 
     applicable under such program, and the Secretary may waive 
     such requirement, but only (1) to the extent that a 
     designated site for use of such amounts does not have 
     dwelling units that are considered to be obsolete under 
     Department of Housing and Urban Development regulations in 
     effect upon the date of the enactment of this Act, and (2) if 
     the Secretary determines that the public housing agency will 
     continue to comply with the purposes of the program 
     notwithstanding such waiver.
       Page 170, line 24, strike ``bond issued by the agency'' and 
     insert ``bonds issued by the agency or any State or local 
     governmental agency''.
       Page 171, strike lines 5 though 10 and insert the 
     following:
       With respect to any dwelling unit in a mixed-finance 
     housing development that is a low-income dwelling unit for 
     which amounts from a block grant under this title are used 
     and that is assisted pursuant to the low-income housing tax 
     credit under section 42 of the Internal Revenue Code of 1986, 
     the rents charged to the residents of the unit shall be 
     determined in accordance with this title, but shall not in 
     any case exceed the amounts allowable under such section 42.
       Page 173, line 24, strike ``and'' and all that follows 
     through line 2 on page 174, and insert a period.
       Page 184, strikes line 7 and 8 and insert the following:

     assistance under this title, such sums as may be necessary 
     for each of fiscal years 1998, 2000, 2001, and 2002 to 
     provide amounts for incremental assistance under this title, 
     for renewal of expiring contracts under section 302 of this 
     Act and renewal under this title of expiring contracts for 
     tenant-based rental assistance under section 8 of the 
     United States Housing Act of 1937 (as in effect before the 
     effective date of the repeal under section 601(b) of this 
     Act), and for replacement needs for public housing under 
     title II.
       Page 184, line 22, after ``227'' insert the following: ``or 
     the establishment of occupancy restrictions in accordance 
     with section 658 of the Housing and Community Development Act 
     of 1992''.
       Page 224, strike lines 21 through 25 and insert the 
     following:
       (c) Rent Policy.--A participating jurisdiction shall ensure 
     that the rental contributions charged to families assisted 
     with amounts received pursuant to this title--
       (1) do not exceed the amount that would be chargeable under 
     title II to such families were such families residing in 
     public housing assisted under such title; or
       (2) are established, pursuant to approval by the Secretary 
     of a proposed rent structure included in the application 
     under section 406, at levels that are reasonable and designed 
     to eliminate any disincentives for members of the family to 
     obtain employment and attain economic self-sufficiency.
       Page 228, line 18, strike ``section'' and insert ``title''.
       Page 228, after line 25, insert the following:
       (k) Community Work Requirement.--
       (1) Applicability of requirements for pha's.--Except as 
     provided in paragraph (2), participating jurisdictions, 
     families assisted with amounts received pursuant to this 
     title, and dwelling units assisted with amounts received 
     pursuant to this title, shall be subject to the provisions of 
     section 105 to the same extent that such provisions apply 
     with respect to public housing agencies, families residing in 
     public housing dwelling units and families assisted under 
     title III, and public housing dwelling units and dwelling 
     units assisted under title III.
       (2) Local community service alternative.--Paragraph (1) 
     shall not apply to a participating jurisdiction that, 
     pursuant to approval by the Secretary of a proposal included 
     in the application under section 406, is carrying out a local 
     program that is designed to foster community service by 
     families assisted with amounts received pursuant to this 
     title.
       (l) Income Targeting.--In providing housing assistance 
     using amounts received pursuant to this title in any fiscal 
     year, a participating jurisdiction shall ensure that the 
     number of families having incomes that do not exceed 30 
     percent of the area median income that are initially assisted 
     under this title during such fiscal year is not less than 
     substantially the same number of families having such incomes 
     that would be initially assisted in such jurisdiction during 
     such fiscal year under titles II and III pursuant to sections 
     222(c) and 321(b)).
       Page 233, line 7, after the period insert the following: 
     ``Upon approving or disapproving an application under this 
     paragraph, the Secretary shall make such determination 
     publicly available in writing together with a written 
     statement of the reasons for such determination.''.
       Page 320, line 13, strike the period and insert ``; or''.
       Page 320, after line 13, insert the following:
       (C) with respect only to activity engaged in by the tenant 
     or any member of the tenant's household, is criminal activity 
     on or off the premises.
       Page 335, after line 6, insert the following new section:

     SEC. 709. PROTECTION OF SENIOR HOMEOWNERS UNDER REVERSE 
                   MORTGAGE PROGRAM.

       (a) Disclosure Requirements; Prohibition of Funding of 
     Unnecessary or Excessive Costs.--Section 255(d) of the 
     National Housing Act (12 U.S.C. 1715z-20(d)) is amended--
       (1) in paragraph (2)--
       (A) in subparagraph (B), by striking ``and'' at the end;
       (B) by redesignating subparagraph (C) as subparagraph (D); 
     and
       (C) by inserting after subparagraph (B) the following:
       ``(C) has received full disclosure of all costs to the 
     mortgagor for obtaining the mortgage, including any costs of 
     estate planning, financial advice, or other related services; 
     and'';
       (2) in paragraph (9)(F), by striking ``and'';
       (3) in paragraph (10), by striking the period at the end 
     and inserting ``; and''; and
       (4) by adding at the end the following:
       ``(11) have been made with such restrictions as the 
     Secretary determines to be appropriate to ensure that the 
     mortgagor does not fund any unnecessary or excessive costs 
     for obtaining the mortgage, including any costs of estate 
     planning, financial advice, or other related services; such 
     restrictions shall include a requirement that the mortgagee 
     ask the mortgagor about any fees that the mortgagor has 
     incurred in connection with obtaining the mortgage and a 
     requirement that the mortgagee be responsible for ensuring 
     that the disclosures required by subsection (d)(2)(C) are 
     made.''.
       (b) Implementation.--
       (1) Notice.--The Secretary of Housing and Urban Development 
     shall, by interim notice, implement the amendments made by 
     subsection (a) in an expeditious manner, as determined by the 
     Secretary. Such notice shall not be effective after the date 
     of the effectiveness of the final regulations issued under 
     paragraph (2) of this subsection.
       (2) Regulations.--The Secretary shall, not later than the 
     expiration of the 90-day period beginning on the date of the 
     enactment of this Act, issue final regulations to implement 
     the amendments made by subsection (a). Such regulations shall 
     be issued only after notice and opportunity for public 
     comment pursuant to the provisions of section 553 of title 5, 
     United States Code (notwithstanding subsections (a)(2) and 
     (b)(B) of such section.)

                                 H.R. 2

                        Offered By: Mr. McCollum

       Amendment No. 16: Page 327, strike lines 23 through 25, and 
     insert the following new title after section VII.

                   SECTION VIII. OCCUPANCY STANDARDS

       (a) National Standard Prohibited.--The Secretary shall not 
     directly or indirectly establish a national occupancy 
     standard.
       (b) State Standard.--If a State establishes an occupancy 
     standard, such standard shall be presumed reasonable for the 
     purpose of determining familial status discrimination in 
     residential rental dwellings.
       (c) Absence of State Standard.--If a State fails to 
     establish an occupancy standard, an occupancy standard that 
     is established by a housing provider and that is not in 
     contravention of the guidance enunciated in the Memorandum 
     from the General Counsel of the Department of Housing and 
     Urban Development to all regional counsel, of March 20, 1991, 
     shall be presumed reasonable for the purpose of determining 
     familial status discrimination, except that for purposes of 
     this section, the paragraph on page 4 of such memorandum 
     under the heading ``State and local law'' shall not apply.
       (d) Definitions.--
       (1) Occupancy standard.--
       (A) In general.--Except as provided in subparagraph (B), 
     the term ``occupancy standard'' means a law, regulation, or 
     housing provider policy that establishes a limit on the 
     number of residents a housing provider can manage in a 
     dwelling for any 1 or more of the following purposes:
       (i) Providing a decent home and services for each resident.
       (ii) Enhancing the livability of a dwelling for all 
     residents, including the dwelling for each particular 
     resident.
       (iii) Avoiding undue physical deterioration of the dwelling 
     and property.
       (B) Exception.--The term ``occupancy standard'' does not 
     include a Federal, State, or local restriction regarding the 
     maximum number of persons permitted to occupy a dwelling for 
     the sole purpose of protecting the health and safety of the 
     residents of a dwelling, including building and housing code 
     provisions.
       (2) Infant.--The term ``infant'' means a child who--
       (A) is less than 6 months old; and
       (B) sleeps in the same bedroom as the child's parent, 
     guardian, legal custodian, or person applying for that status 
     with respect to that child.
       (e) Inapplicability.--
       (1) Purposeful discrimination.--This section does not apply 
     to any purposeful discrimination on the basis of race, color, 
     religion, sex, familial status, handicap, or national origin.
       (2) Discrimination on the basis of handicap.--Nothing in 
     this section shall be construed to affect the decision of the 
     United States Supreme Court set forth in City of Edmonds, WA 
     v. Oxford House, Inc. (115 S. Ct. 1776 (1995)).

                                 H.R. 2

                        Offered By: Mr. McCollum

       Amendment No. 17: Page 327, strike lines 23 through 25, and 
     insert the following:

[[Page H2006]]

       (a) National Standard Prohibited.--The Secretary shall not 
     directly or indirectly establish a national occupancy 
     standard.
       (b) State Standard.--If a State establishes an occupancy 
     standard, such standard shall be presumed reasonable for the 
     purpose of determining familial status discrimination in 
     residential rental dwelling.
       (c) Absence of State Standard.--If a State fails to 
     establish an occupancy standard, an occupancy standard of 2 
     persons per bedroom plus infants that is established by a 
     housing provider shall be presumed reasonable for the purpose 
     of determining familial status discrimination in residential 
     rental dwellings.
       (d) Definitions.--
       (1) Occupancy standard.--
       (A) In general.--Except as provided in subparagraph (B), 
     the term ``occupancy standard'' means a law, regulation, or 
     housing provider policy that establishes a limit on the 
     number of residents a housing provider can manage in a 
     dwelling for any 1 or more of the following purposes:
       (i) Providing a decent home and services for each resident.
       (ii) Enhancing the livability of a dwelling for all 
     residents, including the dwelling for each particular 
     resident.
       (iii) Avoiding undue physical deterioration of the dwelling 
     and property.
       (B) Exception.--The term ``occupancy standard'' does not 
     include a Federal, State, or local restriction regarding the 
     maximum number of persons permitted to occupy a dwelling for 
     the sole purpose of protecting the health and safety of the 
     residents of a dwelling, including building and housing code 
     provisions.
       (2) Infant.--The term ``infant'' means a child who--
       (A) is less than 6 months old; and
       (B) sleeps in the same bedroom as the child's parent, 
     guardian, legal custodian, or person applying for that status 
     with respect to that child.
       (e) Inapplicability.--
       (1) Purposeful discrimination.--This section does not apply 
     to any purposeful discrimination on the basis of race, color, 
     religion, sex, familial status, handicap, or national origin.
       (2) Discrimination on the basis of handicap.--Nothing in 
     this section shall be construed to affect the decision of the 
     United States Supreme Court set forth in City of Edmonds, WA 
     v. Oxford House, Inc. (115 S. Ct 1776 (1995)).

                                 H.R. 2

                         Offered By: Mr. Nadler

       Amendment No. 18: Page 184, strike lines 5 through 8 and 
     insert the following:
       (a) In General.--There is authorized to be appropriated for 
     providing public housing agencies with housing assistance 
     under this title for each of fiscal years 1998, 1999, 2000, 
     2001, and 2002--
       (1) such sums as may be necessary to renew any contracts 
     for choice-based assistance under this title or tenant-based 
     assistance under section 8 of the United States Housing Act 
     of 1937 (as in effect before the repeal under section 601(b) 
     of this Act) that expire during such fiscal year, only for 
     use for such purpose; and
       (2) $305,000,000, only for use for incremental assistance 
     under this title.

                                 H.R. 2

                        Offered By: Mr. Schumer

       Amendment No. 19: Page 184, strike lines 5 through 8 and 
     insert the following:
       (a) In General.--There is authorized to be appropriated for 
     providing public housing agencies with housing assistance 
     under this title for each of fiscal years 1998, 1999, 2000, 
     2001, and 2002--
       (1) such sums as may be necessary to renew any contracts 
     for choice-based assistance under this title or tenant-based 
     assistance under section 8 of the United States Housing Act 
     of 1937 (as in effect before the repeal under section 601(b) 
     of this Act) that expire during such fiscal year, only for 
     use for such purpose; and
       (2) $305,000,000, only for use for incremental assistance 
     under this title.

                                 H.R. 2

                       Offered By: Mr. Traficant

       Amendment No. 20: Page 332, after line 2, insert the 
     following:

     SEC. 706. REGIONAL COOPERATION UNDER CDBG ECONOMIC 
                   DEVELOPMENT INITIATIVE.

       Section 108(q)(4) (42 U.S.C. 5308(q)(4)) of the Housing and 
     Community Development Act of 1974 is amended--
       (1) by striking ``and'' after the semicolon in subparagraph 
     (C);
       (2) by redesignating subparagraph (D) as subparagraph (E); 
     and
       (3) by inserting after subparagraph (C) the following:
       ``(D) when applicable as determined by the Secretary, the 
     extent of regional cooperation demonstrated by the proposed 
     plan; and''.

                                 H.R. 2

                       Offered By: Mr. Traficant

       Amendment No. 21: Page 335, after line 6, insert the 
     following new section:

     SEC. 709. HOUSING COUNSELING.

       (a) Extension of Emergency Homeownership Counseling.--
     Section 106(c)(9) of the Housing and Urban Development Act of 
     1968 (12 U.S.C. 1701x(c)(9)) is amended by striking 
     ``September 30, 1994'' and inserting ``September 30, 1999''.
       (b) Extension of Prepurchase and Foreclosure Prevention 
     Counseling Demonstration.--Section 106(d)(13) of the Housing 
     and Urban Development Act of 1968 (12 U.S.C. 1701x(d)(12)) is 
     amended by striking ``fiscal year 1994'' and inserting 
     ``fiscal year 1999''.
       (c) Notification of Delinquency on Veterans Home Loans.--
       Subparagraph (C) of section 106(c)(5) of the Housing and 
     Urban Development Act of 1968 is amended to read as follows:
       ``(C) Notification--Notification under subparagraph (A) 
     shall not be required with respect to any loan for which the 
     eligible homeowner pays the amount overdue before the 
     expiration of the 45-day period under subparagraph 
     (B)(ii).''.

                                 H.R. 2

                         Offered By: Mr. Vento

       Amendment No. 22: Page 40, line 19, strike ``and''.
       Page 40, line 19, insert the following new subparagraph:
       (G) the procedures for coordination with entities providing 
     assistance to homeless families in the jurisdiction of the 
     agency; and
       Page 40, line 20, strike ``(G)'' and insert ``(H)''.

                                 H.R. 2

                         Offered By: Mr. Vento

       Amendment No. 23: Page 104, line 24, insert after 
     ``program'' the following:

     ``, including a family that includes a member who is an alien 
     lawfully admitted for permanent residence under the 
     Immigration and Nationality Act who would be entitled to 
     public benefits but for title IV of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996''.

                                 H.R. 2

                         Offered By: Mr. Vento

       Amendment No. 24: Page 193, line 21, insert after 
     ``program'' the following:

     ``, including a family that includes a member who is an alien 
     lawfully admitted for permanent residence under the 
     Immigration and Nationality Act who would be entitled to 
     public benefits but for title IV of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996''.

                                 H.R. 2

                         Offered By: Mr. Vento

       Amendment No. 25: Page 244, strike line 1 and all that 
     follows through line 8 on page 254, and insert the following:
        Subtitle C--Public Housing Management Assessment Program

                                 H.R. 2

                         Offered By: Ms. Waters

       Amendment No. 26: Page 57, strike lines 14 through 22 and 
     insert the following:
       (b) Exclusion From Administrative Procedure of Grievances 
     Concerning Evictions From Public Housing Involving Health, 
     Safety, or Peaceful Enjoyment.--A public housing agency may 
     exclude from its procedure established under subsection (a) 
     any grievance, in any jurisdiction which requires that prior 
     to eviction, a tenant be given a hearing in court, which the 
     Secretary determines provides the basic elements of due 
     process (which the Secretary shall establish by rule under 
     section 553 of title 5, United States Code), concerning an 
     eviction from or termination of tenancy in public housing 
     that involves any activity that threatens the health, safety, 
     or right to peaceful enjoyment of the premises of other 
     tenants or employees of the public housing agency or any 
     drug-related criminal activity on or off such premises.

                                 H.R. 2

                 Offered By: Mr. Watt of North Carolina

       Amendment No. 27: Page 25, line 21, strike ``COMMUNITY WORK 
     AND''.
       Page 25, strike line 23 and all that follows through page 
     27, line 10.
       Page 32, line 2, strike ``subsection (a) and''.
       Page 33, line 3, strike ``Community Work and''.
       Page 33, line 6, strike ``community work and''.
       Page 33, strike line 23 and all that follows through page 
     34, line 2.
       Page 34, strike lines 23 and 24.

                                H.R. 867

                         Offered By: Mr. Burton

       Amendment No. 1: In section 475(5)(E) of the Social 
     Security Act, as proposed to be added by section 3(a) of the 
     bill--
       (1) add ``or'' at the end of clause (i);
       (2) strike ``; or'' at the end of clause (ii) and insert a 
     period followed by close quotation marks and a period; and
       (3) strike clause (iii).

                                H.R. 867

                  Offered by: Ms. Jackson-Lee of Texas

       Amendment No. 2: Add at any appropriate place the 
     following:
       ``In making adoptive or foster parent placements, the state 
     or appropriate entity shall make efforts to ensure that such 
     prospective adoptive or foster parent is sensitive to the 
     child's ethnic background.''

                                H.R. 867

                  Offered by: Ms. Jackson-Lee of Texas

       Amendment No. 3: Add at any appropriate place the 
     following:

     SEC.    PRIORITY IN PROVIDING SUBSTANCE ABUSE TREATMENT

       Section 1927 of the Public Health Service Act (42 U.S.C. 
     300x-27) is amended--
       (1) in the heading, by inserting ``AND CARETAKER PARENTS'' 
     AFTER ``WOMEN'', and
       (2) in subsection (a)--

[[Page H2007]]

       (A) in paragraph (1)--
       (i) by inserting ``and all caretaker parents who are 
     referred for treatment by the State or local child welfare 
     agency'' after ``referred for''; and
       (ii) by striking ``is given'' and inserting ``are given''; 
     and
       (B) in paragraph (2)--
       (i) by striking ``such women'' and inserting ``such 
     pregnant women and caretaker parents''; and
       (ii) by striking ``the women'' and inserting ``the pregnant 
     women and caretaker parents''.

                                H.R. 867

                  Offered By: Ms. Jackson-Lee of Texas

       Amendment No. 4: Add at any appropriate place the 
     following:

     SEC.    CRIMINAL RECORDS CHECKS FOR PROSPECTIVE FOSTER AND 
                   ADOPTIVE PARENTS AND GROUP CARE STAFF

       Section 471(a) of the Social Security Act (42 U.S.C. 
     671(a)) is amended--
       (1) in paragraph (18), by striking ``and'' at the end;
       (2) in paragraph (19), by striking the period and inserting 
     ``; and''; and
       (3) by adding at the end the following:
       ``(20) provides procedures for criminal records checks and 
     checks of a State's child abuse registry for any prospective 
     foster parent or adoptive parent, and any employee of a 
     child-care institution before the foster care or adoptive 
     parent, or the child-care institution may be finally approved 
     for placement of a child on whose behalf foster care 
     maintenance payments or adoption assistance payments are to 
     be made under the State plan under this part, including 
     procedures requiring that--
       ``(A) in any case in which a criminal record check reveals 
     a criminal conviction for child abuse or neglect, or spousal 
     abuse, a criminal conviction for crimes against children, or 
     a criminal conviction for a crime involving violence, 
     including rape, sexual or other assault, or homicide, 
     approval shall be granted; and
       ``(B) in any case in which a criminal record check reveals 
     a criminal conviction for a felony or misdemeanor not 
     involving violence, or a check of any State child abuse 
     registry indicates that a substantiated report of abuse or 
     neglect, final approval may be granted only after 
     consideration of the nature of the offense or incident, the 
     length of time that has elapsed since the commission of the 
     offense or the occurrence of the incident, the individual's 
     life experiences during the period since the commission of 
     the offense or the occurrence of the incident, and any risk 
     to the child.''.

                                H.R. 867

                        Offered By: Mrs. Morella

       Amendment No. 5: At the end of the bill, add the following:

     SEC.    KINSHIP CARE DEMONSTRATION PROJECTS.

       (a) In General.--Part E of title IV of the Social Security 
     Act (42 U.S.C. 670-679) is amended by inserting after section 
     477 the following:

     ``SEC. 478. KINSHIP CARE DEMONSTRATION PROJECTS.

       ``(a) Purpose.--The purpose of this section is to allow and 
     encourage States to develop effective alternatives to foster 
     care for children who might be eligible for foster care but 
     who have adult relatives who can provide safe and appropriate 
     care for the child.
       ``(b) Demonstration Authority.--The Secretary may authorize 
     any State to conduct a demonstration project designed to 
     determine whether it is feasible to establish kinship care as 
     an alternative to foster care for a child who--
       ``(1) has been removed from home as a result of a judicial 
     determination that continuation in the home would be contrary 
     to the welfare of the child;
       ``(2) would otherwise be placed in foster care; and
       ``(3) has adult relatives willing to provide safe and 
     appropriate care for the child.
       ``(c) Kinship Care Defined.--As used in this section, the 
     term `kinship care' means safe and appropriate care 
     (including long-term care) of a child by 1 or more adult 
     relatives of the child who have legal custody of the child, 
     or physical custody of the child pending transfer to the 
     adult relative of legal custody of the child.
       ``(d) Project Requirements.--In my demonstration project 
     authorized to be conducted under this section, the State--
       ``(1) should examine the provision of alternative financial 
     and service supports to families providing kinship care; and
       ``(2) shall establish such procedures as may be necessary 
     to assure the safety of children who are placed in kinship 
     care.
       ``(e) Waiver Authority.--The Secretary may waive compliance 
     with any requirement of this part which (if applied) would 
     prevent a State from carrying out a demonstration project 
     under this section or prevent the State from effectively 
     achieving the purpose of such a project, except that the 
     Secretary may not waive--
       ``(1) any provision of section 422(b)(10), section 479, or 
     this section; or
       ``(2) any provision of this part, to the extent that the 
     waiver would impair the entitlement of any qualified child or 
     family to benefits under a State plan approved under this 
     part.
       ``(f) Payments to States; Cost Neutrality.--In lieu of any 
     payment under section 473 for expenses incurred by a State 
     during a quarter with respect to a demonstration project 
     authorized to be conducted under this section, the Secretary 
     shall pay to the State an amount equal to the total amount 
     that would be paid to the State for the quarter under this 
     part, in the absence of the project, with respect to the 
     children and families participating in the project.
       ``(g) Use of Funds.--A State may use funds paid under this 
     section for any purpose related to the provision of services 
     and financial support for families participating in a 
     demonstration project under this section.
       ``(h) Duration of Project.--A demonstration project under 
     this section may be conducted for not more than 5 years.
       ``(i) Application.--Any State seeking to conduct a 
     demonstration project under this section shall submit to the 
     Secretary an application, in such form as the Secretary may 
     require, which includes--
       ``(1) a description of the proposed project, the geographic 
     area in which the proposed project would be conducted, the 
     children or families who would be served by the proposed 
     project, the procedures to be used to assure the safety of 
     such children, and the services which would be provided by 
     the proposed project (which shall provide, where appropriate, 
     for random assignment of children and families to groups 
     served under the project and to control groups);
       ``(2) a statement of the period during which the proposed 
     project would be conducted, and how, at the termination of 
     the project, the safety and stability of the children and 
     families who participated in the project will be protected;
       ``(3) a discussion of the benefits that are expected from 
     the proposed project (compared to a continuation of 
     activities under the State plan approved under this part);
       ``(4) an estimate of the savings to the State of the 
     proposed project;
       ``(5) a statement of program requirements for which waivers 
     would be needed to permit the proposed project to be 
     conducted;
       ``(6) a description of the proposed evaluation design; and
       ``(7) such additional information as the Secretary may 
     require.
       ``(j) State Evaluations and Reports.--Each State authorized 
     to conduct a demonstration project under this section shall--
       ``(1) obtain an evaluation by an independent contractor of 
     the effectiveness of the project, using an evaluation design 
     approved by the Secretary which provides for--
       ``(A) comparison of outcomes for children and families (and 
     groups of children and families) under the project, and such 
     outcomes under the State plan approved under this part, for 
     purposes of assessing the effectiveness of the project in 
     achieving program goals; and
       ``(B) any other information that the Secretary may require;
       ``(2) obtain an evaluation by an independent contractor of 
     the effectiveness of the State in assuring the safety of the 
     children participating in the project; and
       ``(3) provide interim and final evaluation reports to the 
     Secretary, at such times and in such manner as the Secretary 
     may require.
       ``(k) Report to the Congress.--Not later than 4 years after 
     the date of the enactment of this section, the Secretary 
     shall submit to the Congress a report that contains the 
     recommendations of the Secretary for changes in law with 
     respect to kinship care and placements.''.
       (b) Conforming Amendments.--Title IV of the Social Security 
     Act (42 U.S.C. 601 et seq.) is amended--
       (1) in section 422(b)--
       (A) by striking the period at the end of the paragraph (9) 
     (as added by section 544(3) of the Improving America's 
     Schools Act of 1994 (Public Law 103-382; 108 Stat. 4057)) and 
     inserting a semicolon;
       (B) by redesignating paragraph (10) as paragraph (11); and
       (C) by redesignating paragraph (9), as added by section 
     202(a)(3) of the Social Security Act Amendments of 1994 
     (Public Law 103-432, 108 Stat. 4453), as paragraph (10);
       (2) in sections 424(b), 425(a), and 472(d), by striking 
     ``422(b)(9)'' each place it appears and inserting 
     ``422(b)(10)''; and
       (3) in section 471(a)--
       (A) by striking ``and'' at the end of paragraph (17);
       (B) by striking the period at the end of paragraph (18) (as 
     added by section 1808(a) of the Small Business Job Protection 
     Act of 1996 (Public Law 104-188; 110 Stat. 1903)) and 
     inserting ``; and''; and
       (C) by redesignating paragraph (18) (as added by section 
     505(3) of the Personal Responsibility and Work Opportunity 
     Reconciliation Act of 1996 (Public Law 104-193; 110 Stat. 
     2278)) as paragraph (19).

                                H.R. 867

                         Offered By: Mr. Tiahrt

       Amendment No. 6: Strike the matter proposed to be added by 
     section 3(a)(3) of the bill and insert the following:
       ``(E) in the case of a child who has been in foster care 
     under the responsibility of the State during 12 of the most 
     recent 18 months, and a child in such foster care who has not 
     attained 13 years of age (or such greater age as the State 
     may establish) and with respect whom reasonable efforts of 
     the type described in section 471(a)(15)(A)(i) are 
     discontinued or not made, the State shall seek to terminate 
     all parental rights with respect to the child, unless--
       ``(i) at the option of the State, the child is being cared 
     for by a relative; or
       ``(ii) a State court or State agency has documented a 
     compelling reason for determining that filing such a petition 
     would not be in the best interests of the child.''.