[Congressional Record Volume 143, Number 131 (Friday, September 26, 1997)]
[Senate]
[Pages S10028-S10050]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




          PUBLIC HOUSING REFORM AND RESPONSIBILITY ACT OF 1977

  Mr. McCONNELL. Mr. President, I ask unanimous consent the Senate now 
proceed to the consideration of Calendar No. 63, S. 462.
  The PRESIDING OFFICER. The clerk will report.
  The bill clerk read as follows:

       A bill (S. 462) to reform and consolidate the public and 
     assisted housing programs of the United States, and to 
     redirect primary responsibility for these programs from the 
     Federal Government to States and localities, and for other 
     purposes.

  The Senate proceeded to consider the bill, which had been reported 
from the Committee on Banking, Housing, and Urban Affairs, with an 
amendment to strike all after the enacting clause and inserting in lieu 
thereof the following:

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Public 
     Housing Reform and Responsibility Act of 1997''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definitions.
Sec. 4. Effective date.
Sec. 5. Proposed regulations; technical recommendations.
Sec. 6. Elimination of obsolete documents.
Sec. 7. Annual reports.

                        TITLE I--PUBLIC HOUSING

Sec. 101. Declaration of policy.
Sec. 102. Membership on board of directors.
Sec. 103. Rental payments.
Sec. 104. Definitions.
Sec. 105. Contributions for lower income housing projects.
Sec. 106. Public housing agency plan.
Sec. 107. Contract provisions and requirements.
Sec. 108. Expansion of powers for dealing with PHA's in substantial 
              default.
Sec. 109. Public housing site-based waiting lists.
Sec. 110. Public housing capital and operating funds.
Sec. 111. Community service and self-sufficiency.
Sec. 112. Repeal of energy conservation; consortia and joint ventures.
Sec. 113. Repeal of modernization fund.
Sec. 114. Eligibility for public and assisted housing.
Sec. 115. Demolition and disposition of public housing.
Sec. 116. Repeal of family investment centers; voucher system for 
              public housing.
Sec. 117. Repeal of family self-sufficiency; homeownership 
              opportunities.
Sec. 118. Revitalizing severely distressed public housing.
Sec. 119. Mixed-finance and mixed-ownership projects.
Sec. 120. Conversion of distressed public housing to tenant-based 
              assistance.
Sec. 121. Public housing mortgages and security interests.
Sec. 122. Linking services to public housing residents.
Sec. 123. Prohibition on use of amounts.
Sec. 124. Pet ownership.

                 TITLE II--SECTION 8 RENTAL ASSISTANCE

Sec. 201. Merger of the certificate and voucher programs.
Sec. 202. Repeal of Federal preferences.
Sec. 203. Portability.
Sec. 204. Leasing to voucher holders.
Sec. 205. Homeownership option.
Sec. 206. Law enforcement and security personnel in public housing.
Sec. 207. Technical and conforming amendments.
Sec. 208. Implementation.
Sec. 209. Definition.
Sec. 210. Effective date.
Sec. 211. Recapture and reuse of annual contribution contract project 
              reserves under the tenant-based assistance program.

     TITLE III--SAFETY AND SECURITY IN PUBLIC AND ASSISTED HOUSING

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 resident 
              screening and eviction.
Sec. 305. Definitions.
Sec. 306. Conforming amendments.

                   TITLE IV--MISCELLANEOUS PROVISIONS

Sec. 401. Public housing flexibility in the CHAS.
Sec. 402. Determination of income limits.
Sec. 403. Demolition of public housing.
Sec. 404. Technical correction of public housing agency opt-out 
              authority.
Sec. 405. Review of drug elimination program contracts.
Sec. 406. Sense of Congress.
Sec. 407. Other repeals.

     SEC. 2. FINDINGS AND PURPOSES.

       (a) Findings.--Congress finds that--
       (1) there exists throughout the Nation a need for decent, 
     safe, and affordable housing;
       (2) the inventory of public housing units owned and 
     operated by public housing agencies, an asset in which the 
     Federal Government has invested approximately 
     $90,000,000,000, has traditionally provided rental housing 
     that is affordable to low-income persons;
       (3) despite serving this critical function, the public 
     housing system is plagued by a series of problems, including 
     the concentration of very poor people in very poor 
     neighborhoods and disincentives for economic self-
     sufficiency;
       (4) the Federal method of overseeing every aspect of public 
     housing by detailed and complex statutes and regulations 
     aggravates the problem and places excessive administrative 
     burdens on public housing agencies;
       (5) the interests of low-income persons, and the public 
     interest, will best be served by a reformed public housing 
     program that--
       (A) consolidates many public housing programs into programs 
     for the operation and capital needs of public housing;
       (B) streamlines program requirements;
       (C) vests in public housing agencies that perform well the 
     maximum feasible authority, discretion, and control with 
     appropriate accountability to both public housing residents 
     and localities; and
       (D) rewards employment and economic self-sufficiency of 
     public housing residents; and
       (6) voucher and certificate programs under section 8 of the 
     United States Housing Act of 1937 are successful for 
     approximately 80 percent of applicants, and a consolidation 
     of the voucher and certificate programs into a single, 
     market-driven program will assist in making section 8 tenant-
     based assistance more successful in assisting low-income 
     families in obtaining affordable housing and will increase 
     housing choice for low-income families.
       (b) Purposes.--The purposes of this Act are--
       (1) to consolidate the various programs and activities 
     under the public housing programs administered by the 
     Secretary in a manner designed to reduce Federal 
     overregulation;
       (2) to redirect the responsibility for a consolidated 
     program to States, localities, public housing agencies, and 
     public housing residents;
       (3) to require Federal action to overcome problems of 
     public housing agencies with severe management deficiencies; 
     and
       (4) to consolidate and streamline tenant-based assistance 
     programs.

     SEC. 3. DEFINITIONS.

       In this Act:
       (1) Public housing agency.--The term ``public housing 
     agency'' has the same meaning as in section 3 of the United 
     States Housing Act of 1937.
       (2) Secretary.--The term ``Secretary'' means the Secretary 
     of Housing and Urban Development.

     SEC. 4. EFFECTIVE DATE.

       Except as otherwise specifically provided in this Act or 
     the amendments made by this Act, this Act and the amendments 
     made by this Act shall take effect on the date of enactment 
     of this Act.

     SEC. 5. PROPOSED REGULATIONS; TECHNICAL RECOMMENDATIONS.

       (a) Proposed Regulations.--Not later than 9 months after 
     the date of enactment of this Act, the Secretary shall submit 
     to Congress proposed regulations that the Secretary 
     determines are necessary to carry out the United States 
     Housing Act of 1937, as amended by this Act.
       (b) Technical Recommendations.--Not later than 9 months 
     after the date of enactment of this Act, the Secretary shall 
     submit to the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Banking and 
     Financial Services of the House of Representatives, 
     recommended technical and conforming legislative changes 
     necessary to carry out this Act and the amendments made by 
     this Act.

     SEC. 6. ELIMINATION OF OBSOLETE DOCUMENTS.

       Effective 1 year after the date of enactment of this Act, 
     no rule, regulation, or order (including all handbooks, 
     notices, and related requirements) pertaining to public 
     housing or section 8 tenant-based programs issued or 
     promulgated under the United States Housing Act of 1937 
     before the date of enactment of this Act may be enforced by 
     the Secretary.

     SEC. 7. ANNUAL REPORTS.

       Not later than 1 year after the date of enactment of this 
     Act, and annually thereafter, the Secretary shall submit a 
     report to Congress on--
       (1) the impact of the amendments made by this Act on--
       (A) the demographics of public housing residents and 
     families receiving tenant-based assistance under the United 
     States Housing Act of 1937; and
       (B) the economic viability of public housing agencies; and
       (2) the effectiveness of the rent policies established by 
     this Act and the amendments made by this Act on the 
     employment status and earned income of public housing 
     residents.

[[Page S10029]]

                        TITLE I--PUBLIC HOUSING

     SEC. 101. DECLARATION OF POLICY.

       Section 2 of the United States Housing Act of 1937 (42 
     U.S.C. 1437) is amended to read as follows:

     ``SEC. 2. DECLARATION OF POLICY.

       ``It is the policy of the United States to promote the 
     general welfare of the Nation by employing the funds and 
     credit of the Nation, as provided in this title--
       ``(1) to assist States and political subdivisions of States 
     to remedy the unsafe housing conditions and the acute 
     shortage of decent and safe dwellings for low-income 
     families;
       ``(2) to assist States and political subdivisions of States 
     to address the shortage of housing affordable to low-income 
     families; and
       ``(3) consistent with the objectives of this title, to vest 
     in public housing agencies that perform well, the maximum 
     amount of responsibility and flexibility in program 
     administration, with appropriate accountability to both 
     public housing residents and localities.''.

     SEC. 102. MEMBERSHIP ON BOARD OF DIRECTORS.

       Title I of the United States Housing Act of 1937 (42 U.S.C. 
     1437 et seq.) is amended--
       (1) by redesignating the second section designated as 
     section 27 (as added by section 903(b) of Public Law 104-193 
     (110 Stat. 2348)) as section 28; and
       (2) by adding at the end the following:

     ``SEC. 29. MEMBERSHIP ON BOARD OF DIRECTORS.

       ``(a) Required Membership.--Except as provided in 
     subsection (b), the membership of the board of directors of 
     each public housing agency shall contain not less than 1 
     member--
       ``(1) who is a resident who directly receives assistance 
     from the public housing agency; and
       ``(2) who may, if provided for in the public housing agency 
     plan (as developed with appropriate notice and opportunity 
     for comment by the resident advisory board) be elected by the 
     residents directly receiving assistance from the public 
     housing agency.
       ``(b) Exception.--Subsection (a) shall not apply to any 
     public housing agency--
       ``(1) that is located in a State that requires the members 
     of the board of directors of a public housing agency to be 
     salaried and to serve on a full-time basis; or
       ``(2) with less than 300 units, if--
       ``(A) the public housing agency has provided reasonable 
     notice to the resident advisory board of the opportunity of 
     not less than 1 resident described in subsection (a) to serve 
     on the board of directors of the public housing agency 
     pursuant to that subsection; and
       ``(B) within a reasonable time after receipt by the 
     resident advisory board of notice under subparagraph (A), the 
     public housing agency has not been notified of the intention 
     of any resident to participate on the board of directors.
       ``(c) Nondiscrimination.--No person shall be prohibited 
     from serving on the board of directors or similar governing 
     body of a public housing agency because of the residence of 
     that person in a public housing project.''.

     SEC. 103. RENTAL PAYMENTS.

       (a) In General.--Section 3(a)(1)(A) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437a(a)(1)(A)) is amended by 
     inserting before the semicolon the following: `` or, if the 
     family resides in public housing, an amount established by 
     the public housing agency, which shall not exceed 30 percent 
     of the monthly adjusted income of the family''.
       (b) Authority of Public Housing Agencies.--Section 3(a)(2) 
     of the United States Housing Act of 1937 (42 U.S.C. 
     1437a(a)(2)) is amended to read as follows:
       ``(2) Authority of public housing agencies.--
       ``(A) In general.--Notwithstanding paragraph (1), a public 
     housing agency may adopt ceiling rents that reflect the 
     reasonable market value of the housing, but that are not less 
     than--
       ``(i) 75 percent of the monthly cost to operate the housing 
     of the public housing agency; and
       ``(ii) the monthly cost to make a deposit to a replacement 
     reserve (in the sole discretion of the public housing 
     agency).
       ``(B) Minimum rent.--Notwithstanding paragraph (1), a 
     public housing agency may provide that each family residing 
     in a public housing project or receiving tenant-based or 
     project-based assistance under section 8 shall pay a minimum 
     monthly rent in an amount not to exceed $25 per month.
       ``(C) Police officers.--
       ``(i) In general.--Notwithstanding any other provision of 
     law, a public housing agency may, in accordance with the 
     public housing agency plan, allow a police officer who is not 
     otherwise eligible for residence in public housing to reside 
     in a public housing unit. The number and location of units 
     occupied by police officers under this clause, and the terms 
     and conditions of their tenancies, shall be determined by the 
     public housing agency.
       ``(ii) Definition.--In this subparagraph, the term `police 
     officer' means any person determined by a public housing 
     agency to be, during the period of residence of that person 
     in public housing, employed on a full-time basis as a duly 
     licensed professional police officer by a Federal, State, or 
     local government or by any agency thereof (including a public 
     housing agency having an accredited police force).
       ``(D) Exception to income limitations for certain public 
     housing agencies.--
       ``(i) Definition of over-income family.--In this 
     subparagraph, the term `over-income family' means an 
     individual or family that is not a low-income family or a 
     very low-income family.
       ``(ii) Authorization.--Notwithstanding any other provision 
     of law, a public housing agency that manages less than 250 
     units may, on a month-to-month basis, lease a unit in a 
     public housing project to an over-income family in accordance 
     with this subparagraph, if there are no eligible families 
     applying for residence in that public housing project for 
     that month.
       ``(iii) Terms and conditions.--The number and location of 
     units occupied by over-income families under this 
     subparagraph, and the terms and conditions of those 
     tenancies, shall be determined by the public housing agency, 
     except that--

       ``(I) rent for a unit shall be in an amount that is equal 
     to not less than the costs to operate the unit;
       ``(II) if an eligible family applies for residence after an 
     over-income family moves in to the last available unit, the 
     over-income family shall vacate the unit not later than the 
     date on which the month term expires; and
       ``(III) if a unit is vacant and there is no one on the 
     waiting list, the public housing agency may allow an over-
     income family to gain immediate occupancy in the unit, while 
     simultaneously providing reasonable public notice of the 
     availability of the unit.

       ``(E) Encouragement of self-sufficiency.--Each public 
     housing agency shall develop a rental policy that encourages 
     and rewards employment and economic self-sufficiency.''.
       (c) Regulations.--
       (1) In general.--The Secretary shall, by regulation, after 
     notice and an opportunity for public comment, establish such 
     requirements as may be necessary to carry out section 
     3(a)(2)(A) of the United States Housing Act of 1937, as 
     amended by this section.
       (2) Transition rule.--Prior to the issuance of final 
     regulations under paragraph (1), a public housing agency may 
     implement ceiling rents, which shall be--
       (A) determined in accordance with section 3(a)(2)(A) of the 
     United States Housing Act of 1937 (amended by subsection (b) 
     of this section);
       (B) equal to the 95th percentile of the rent paid for a 
     unit of comparable size by residents in the same public 
     housing project or a group of comparable projects totaling 50 
     units or more; or
       (C) equal to not more than the fair market rent for the 
     area in which the unit is located.

     SEC. 104. DEFINITIONS.

       (a) Definitions.--
       (1) Single persons.--Section 3(b)(3) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437a(b)(3)) is amended--
       (A) in subparagraph (A), by striking the third sentence; 
     and
       (B) in subparagraph (B), in the second sentence, by 
     striking ``regulations of the Secretary'' and inserting 
     ``public housing agency plan''.
       (2) Adjusted income.--Section 3(b)(5) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437a(b)(5)) is amended to 
     read as follows:
       ``(5) Adjusted income.--The term `adjusted income' means 
     the income that remains after excluding--
       ``(A) $480 for each member of the family residing in the 
     household (other than the head of the household or the spouse 
     of the head of the household)--
       ``(i) who is under 18 years of age; or
       ``(ii) who is--

       ``(I) 18 years of age or older; and
       ``(II) a person with disabilities or a full-time student;

       ``(B) $400 for an elderly or disabled family;
       ``(C) the amount by which the aggregate of--
       ``(i) medical expenses for an elderly or disabled family; 
     and
       ``(ii) reasonable attendant care and auxiliary apparatus 
     expenses for each family member who is a person with 
     disabilities, to the extent necessary to enable any member of 
     the family (including a member who is a person with 
     disabilities) to be employed;

     exceeds 3 percent of the annual income of the family;
       ``(D) child care expenses, to the extent necessary to 
     enable another member of the family to be employed or to 
     further his or her education; and
       ``(E) any other adjustments to earned income that the 
     public housing agency determines to be appropriate, as 
     provided in the public housing agency plan.''.
       (b) Disallowance of Earned Income From Public Housing Rent 
     Determinations.--
       (1) In general.--Section 3 of the United States Housing Act 
     of 1937 (42 U.S.C. 1437a) is amended--
       (A) by striking the undesignated paragraph at the end of 
     subsection (c)(3) (as added by section 515(b) of the 
     Cranston-Gonzalez National Affordable Housing Act); and
       (B) by adding at the end the following:
       ``(d) Disallowance of Earned Income From Public Housing 
     Rent Determinations.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, the rent payable under subsection (a) by 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 1 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).''.

[[Page S10030]]

       (2) Applicability of amendment.--
       (A) Public housing.--Notwithstanding the amendment made by 
     paragraph (1), any resident of public housing participating 
     in the program under the authority contained in the 
     undesignated paragraph at the end of section 3(c)(3) of the 
     United States Housing Act of 1937, as that section existed on 
     the day before the date of enactment of this Act, shall be 
     governed by that authority after that date.
       (B) Section 8.--The amendment made by paragraph (1) shall 
     apply to tenant-based assistance provided under section 8 of 
     the United States Housing Act of 1937, with funds 
     appropriated on or after October 1, 1997.
       (c) Definitions of Terms Used in Reference to Public 
     Housing.--
       (1) In general.--Section 3(c) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437a(c)) is amended--
       (A) in paragraph (1), by inserting ``and of the fees and 
     related costs normally involved in obtaining non-Federal 
     financing and tax credits with or without private and 
     nonprofit partners'' after ``carrying charges''; and
       (B) in paragraph (2), in the first sentence, by striking 
     ``security personnel),'' and all that follows through the 
     period and inserting the following: ``security personnel), 
     service coordinators, drug elimination activities, or 
     financing in connection with a public housing project, 
     including projects developed with non-Federal financing and 
     tax credits, with or without private and nonprofit 
     partners.''.
       (2) Technical correction.--Section 622(c) of the Housing 
     and Community Development Act of 1992 (Public Law 102-550; 
     106 Stat. 3817) is amended by striking `` `project.' '' and 
     inserting ``paragraph (3)''.
       (3) New definitions.--Section 3(c) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437a(c)) is amended by adding 
     at the end the following:
       ``(6) Public housing agency plan.--The term `public housing 
     agency plan' means the plan of the public housing agency 
     prepared in accordance with section 5A.
       ``(7) Disabled housing.--The term `disabled housing' means 
     any public housing project, building, or portion of a project 
     or building, that is designated by a public housing agency 
     for occupancy exclusively by disabled persons or families.
       ``(8) Elderly housing.--The term `elderly housing' means 
     any public housing project, building, or portion of a project 
     or building, that is designated by a public housing agency 
     exclusively for occupancy exclusively by elderly persons or 
     families, including elderly disabled persons or families.
       ``(9) Mixed-finance project.--The term `mixed-finance 
     project' means a public housing project that meets the 
     requirements of section 30.
       ``(10) Capital fund.--The term `Capital Fund' means the 
     fund established under section 9(c).
       ``(11) Operating fund.--The term `Operating Fund' means the 
     fund established under section 9(d).''.

     SEC. 105. CONTRIBUTIONS FOR LOWER INCOME HOUSING PROJECTS.

       (a) In General.--Section 5 of the United States Housing Act 
     of 1937 (42 U.S.C. 1437c) is amended by striking subsections 
     (h) through (l).
       (b) Conforming Amendments.--The United States Housing Act 
     of 1937 (42 U.S.C. 1437 et seq.) is amended--
       (1) in section 21(d), by striking ``section 5(h) or'';
       (2) in section 25(l)(1), by striking ``and for sale under 
     section 5(h)''; and
       (3) in section 307, by striking ``section 5(h) and''.

     SEC. 106. PUBLIC HOUSING AGENCY PLAN.

       (a) In General.--Title I of the United States Housing Act 
     of 1937 (42 U.S.C. 1437 et seq.) is amended by inserting 
     after section 5 the following:

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

       ``(a) 5-Year Plan.--
       ``(1) In general.--Subject to paragraph (2), not less than 
     once every 5 fiscal years, each public housing agency shall 
     submit to the Secretary a plan that includes, with respect to 
     the 5 fiscal years immediately following the date on which 
     the plan is submitted--
       ``(A) a statement of the mission of the public housing 
     agency for serving the needs of low-income and very low-
     income families in the jurisdiction of the public housing 
     agency during those fiscal years; and
       ``(B) a statement of the goals and objectives of the public 
     housing agency that will enable the public housing agency to 
     serve the needs identified pursuant to subparagraph (A) 
     during those fiscal years.
       ``(2) Initial plan.--The initial 5-year plan submitted by a 
     public housing agency under this subsection shall be 
     submitted for the 5-year period beginning with the first 
     fiscal year following the date of enactment of the Public 
     Housing Reform and Responsibility Act of 1997 for which the 
     public housing agency receives assistance under this Act.
       ``(b) Annual Plan.--
       ``(1) In general.--Each public housing agency shall submit 
     to the Secretary a public housing agency plan under this 
     subsection for each fiscal year for which the public housing 
     agency receives assistance under sections 8(o) and 9.
       ``(2) Updates.--For each fiscal year after the initial 
     submission of a plan under this section by a public housing 
     agency, the public housing agency may comply with 
     requirements for submission of a plan under this 
     subsection by submitting an update of the plan for the 
     fiscal year.
       ``(c) Procedures.--
       ``(1) In general.--The Secretary shall establish 
     requirements and procedures for submission and review of 
     plans, including requirements for timing and form of 
     submission, and for the contents of those plans.
       ``(2) Contents.--The procedures established under paragraph 
     (1) shall provide that a public housing agency shall--
       ``(A) consult with the resident advisory board established 
     under subsection (e) in developing the plan; and
       ``(B) ensure that the plan under this section is consistent 
     with the applicable comprehensive housing affordability 
     strategy (or any consolidated plan incorporating that 
     strategy) for the jurisdiction in which the public housing 
     agency is located, in accordance with title I of the 
     Cranston-Gonzalez National Affordable Housing Act and 
     contains a certification by the appropriate State or local 
     official that the plan meets the requirements of this 
     paragraph and a description of the manner in which the 
     applicable contents of the public housing agency plan are 
     consistent with the comprehensive housing affordability 
     strategy.
       ``(d) Contents.--An annual public housing agency plan under 
     this section for a public housing agency shall contain the 
     following information relating to the upcoming fiscal year 
     for which the assistance under this Act is to be made 
     available:
       ``(1) Needs.--A statement of the housing needs of low-
     income and very low-income families residing in the 
     jurisdiction served by the public housing agency, and of 
     other low-income and very low-income families on the waiting 
     list of the agency (including housing needs of elderly 
     families and disabled families), and the means by which the 
     public housing agency intends, to the maximum extent 
     practicable, to address those needs.
       ``(2) Financial resources.--A statement of financial 
     resources available to the agency and the planned uses of 
     those resources.
       ``(3) Eligibility, selection, and admissions policies.--A 
     statement of the policies governing eligibility, selection, 
     admissions (including any preferences), assignment, and 
     occupancy of families with respect to public housing dwelling 
     units and housing assistance under section 8(o).
       ``(4) Rent determination.--A statement of the policies of 
     the public housing agency governing rents charged for public 
     housing dwelling units and rental contributions of assisted 
     families under section 8(o).
       ``(5) Operation and management.--A statement of the rules, 
     standards, and policies of the public housing agency 
     governing maintenance and management of housing owned and 
     operated by the public housing agency, and management of the 
     public housing agency and programs of the public housing 
     agency.
       ``(6) Grievance procedure.--A statement of the grievance 
     procedures of the public housing agency.
       ``(7) Capital improvements.--With respect to public housing 
     developments owned or operated by the public housing agency, 
     a plan describing the capital improvements necessary to 
     ensure long-term physical and social viability of the 
     developments.
       ``(8) Demolition and disposition.--With respect to public 
     housing developments owned or operated by the public housing 
     agency--
       ``(A) a description of any housing to be demolished or 
     disposed of; and
       ``(B) a timetable for that demolition or disposition.
       ``(9) Designation of housing for elderly and disabled 
     families.--With respect to public housing developments owned 
     or operated by the public housing agency, a description of 
     any developments (or portions thereof) that the public 
     housing agency has designated or will designate for occupancy 
     by elderly and disabled families in accordance with section 
     7.
       ``(10) Conversion of public housing.--With respect to 
     public housing owned or operated by a public housing agency--
       ``(A) a description of any building or buildings that the 
     public housing agency is required to convert to tenant-based 
     assistance under section 31 or that the public housing agency 
     voluntarily converts under section 22;
       ``(B) an analysis of those buildings required under that 
     section for conversion; and
       ``(C) a statement of the amount of grant amounts to be used 
     for rental assistance or other housing assistance.
       ``(11) Homeownership activities.--A description of any 
     homeownership programs of the public housing agency and the 
     requirements for participation in and the assistance 
     available under those programs.
       ``(12) Economic self-sufficiency and coordination with 
     welfare and other appropriate agencies.--A description of--
       ``(A) any programs relating to services and amenities 
     provided or offered to assisted families;
       ``(B) any policies or programs of the public housing agency 
     for the enhancement of the economic and social self-
     sufficiency of assisted families; and
       ``(C) how the public housing agency will comply with the 
     requirements of subsections (c) and (d) of section 12.
       ``(13) Safety and crime prevention.--A description of 
     policies established by the public housing agency that 
     increase or maintain the safety of public housing residents.
       ``(14) Certification.--An annual certification by the 
     public housing agency that the public housing agency 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 the goal of fair housing.
       ``(15) Annual audit.--The results of the most recent fiscal 
     year audit of the public housing agency.
       ``(e) Resident Advisory Board.--
       ``(1) In general.--Except as provided in paragraph (3), 
     each public housing agency shall establish 1 or more resident 
     advisory boards in accordance with this subsection, the 
     membership

[[Page S10031]]

     of which shall adequately reflect and represent the residents 
     of the dwelling units owned, operated, or assisted by the 
     public housing agency.
       ``(2) Purpose.--Each resident advisory board established 
     under this subsection shall assist and make recommendations 
     regarding the development of the public housing agency plan. 
     The public housing agency shall consider the recommendations 
     of the resident advisory boards in preparing the final public 
     housing agency plan, and shall include a copy of those 
     recommendations in the public housing agency plan submitted 
     to the Secretary under this section.
       ``(3) Waiver.--The Secretary may waive the requirements of 
     this subsection with respect to the establishment of resident 
     advisory boards, if the public housing agency demonstrates to 
     the satisfaction of the Secretary that there exists a 
     resident council or other resident organization of the public 
     housing agency that--
       ``(A) adequately represents the interests of the residents 
     of the public housing agency; and
       ``(B) has the ability to perform the functions described in 
     paragraph (2).
       ``(f) Publication of Notice.--
       ``(1) In general.--Not later than 45 days before the date 
     of a hearing conducted under paragraph (2) by the governing 
     body of a public housing agency, the public housing agency 
     shall publish a notice informing the public that--
       ``(A) the proposed public housing agency plan is available 
     for inspection at the principal office of the public housing 
     agency during normal business hours; and
       ``(B) a public hearing will be conducted to discuss the 
     public housing agency plan and to invite public comment 
     regarding that plan.
       ``(2) Public hearing.--Each public housing agency shall, at 
     a location that is convenient to residents, conduct a public 
     hearing, as provided in the notice published under paragraph 
     (1).
       ``(3) Adoption of plan.--After conducting the public 
     hearing under paragraph (2), and after considering all public 
     comments received and, in consultation with the resident 
     advisory board, making any appropriate changes in the public 
     housing agency plan, the public housing agency shall--
       ``(A) adopt the public housing agency plan; and
       ``(B) submit the plan to the Secretary in accordance with 
     this section.
       ``(g) Amendments and Modifications to Plans.--
       ``(1) In general.--Except as provided in paragraph (2), 
     nothing in this section shall preclude a public housing 
     agency, after submitting a plan to the Secretary in 
     accordance with this section, from amending or modifying any 
     policy, rule, regulation, or plan of the public housing 
     agency, except that no such significant amendment or 
     modification may be adopted or implemented--
       ``(A) other than at a duly called meeting of commissioners 
     (or other comparable governing body) of the public housing 
     agency that is open to the public; and
       ``(B) until notification of the amendment or modification 
     is provided to the Secretary and approved in accordance with 
     subsection (h)(2).
       ``(2) Consistency.--Each significant amendment or 
     modification to a public housing agency plan submitted to the 
     Secretary under this section shall--
       ``(A) meet the consistency requirement of subsection 
     (c)(2);
       ``(B) be subject to the notice and public hearing 
     requirements of subsection (f); and
       ``(C) be subject to approval by the Secretary in accordance 
     with subsection (h)(2).
       ``(h) Timing of Plans.--
       ``(1) In general.--
       ``(A) Initial submission.--Each public housing agency shall 
     submit the initial plan required by this section, and any 
     amendment or modification to the initial plan, to the 
     Secretary at such time and in such form as the Secretary 
     shall require.
       ``(B) Annual submission.--Not later than 60 days prior to 
     the start of the fiscal year of the public housing agency, 
     after initial submission of the plan required by this section 
     in accordance with subparagraph (A), each public housing 
     agency shall annually submit to the Secretary a plan update, 
     including any amendments or modifications to the public 
     housing agency plan.
       ``(2) Review and approval.--
       ``(A) Review.--After submission of the public housing 
     agency plan or any amendment or modification to the plan to 
     the Secretary, to the extent that the Secretary considers 
     such action to be necessary to make determinations under this 
     subparagraph, the Secretary shall review the public housing 
     agency plan (including any amendments or modifications 
     thereto) to determine whether the contents of the plan--
       ``(i) set forth the information required by this section to 
     be contained in a public housing agency plan;
       ``(ii) are consistent with information and data available 
     to the Secretary; and
       ``(iii) are prohibited by or inconsistent with any 
     provision of this title or other applicable law.
       ``(B) Approval.--
       ``(i) In general.--Except as provided in paragraph (3)(B), 
     not later than 60 days after the date on which a public 
     housing agency plan is submitted in accordance with this 
     section (or, with respect to the initial provision of notice 
     under this subparagraph, not later than 75 days after the 
     date on which the initial public housing agency plan is 
     submitted in accordance with this section), the Secretary 
     shall provide written notice to the public housing agency if 
     the plan has been disapproved, stating with specificity the 
     reasons for the disapproval.
       ``(ii) Failure to provide notice of disapproval.--If the 
     Secretary does not provide notice of disapproval under clause 
     (i) before the expiration of the period described in clause 
     (i), the public housing agency plan shall be deemed to be 
     approved by the Secretary.
       ``(3) Secretarial discretion.--
       ``(A) In general.--The Secretary may require such 
     additional information as the Secretary determines to be 
     appropriate 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).
       ``(B) Troubled agencies.--The Secretary shall provide 
     explicit written approval or disapproval, in a timely manner, 
     for a public housing agency plan submitted by any public 
     housing agency designated by the Secretary as a troubled 
     public housing agency under section 6(j).
       ``(C) Advisory board consultation enforcement.--Following a 
     written request by the resident advisory board that documents 
     a failure on the part of the public housing agency to provide 
     adequate notice and opportunity for comment under subsection 
     (f), and upon a Secretarial finding of good cause within the 
     time period provided for in paragraph (2)(B) of this 
     subsection, the Secretary may require the public housing 
     agency to adequately remedy that failure prior to a final 
     approval of the public housing agency plan under this 
     section.
       ``(4) Streamlined plan.--In carrying out this section, the 
     Secretary may establish a streamlined public housing agency 
     plan for--
       ``(A) public housing agencies that are determined by the 
     Secretary to be high performing public housing agencies;
       ``(B) public housing agencies with less than 250 public 
     housing units that have not been designated as troubled under 
     section 6(j); and
       ``(C) public housing agencies that only administer tenant-
     based assistance and that do not own or operate public 
     housing.''.
       (b) Implementation.--
       (1) Interim rule.--Not later than 120 days after the date 
     of enactment of this Act, the Secretary shall issue an 
     interim rule to require the submission of an interim public 
     housing agency plan by each public housing agency, as 
     required by section 5A of the United States Housing Act of 
     1937 (as added by subsection (a) of this section).
       (2) Final regulations.--Not later than 1 year after the 
     date of enactment of this Act, in accordance with the 
     negotiated rulemaking procedures set forth in subchapter III 
     of chapter 5 of title 5, United States Code, the Secretary 
     shall promulgate final regulations implementing section 5A of 
     the United States Housing Act of 1937 (as added by subsection 
     (a) of this section).
       (c) Audit and Review; Report.--
       (1) Audit and review.--Not later than 1 year after the 
     effective date of final regulations promulgated under 
     subsection (b)(2), in order to determine the degree of 
     compliance with public housing agency plans approved under 
     section 5A of the United States Housing Act of 1937 (as added 
     by subsection (a) of this section) by public housing 
     agencies, the Comptroller General of the United States shall 
     conduct--
       (A) a review of a representative sample of the public 
     housing agency plans approved under such section 5A before 
     that date; and
       (B) an audit and review of the public housing agencies 
     submitting those plans.
       (2) Report.--Not later than 2 years after the date on which 
     public housing agency plans are initially required to be 
     submitted under section 5A of the United States Housing Act 
     of 1937 (as added by subsection (a) of this section) the 
     Comptroller General of the United States shall submit to 
     Congress a report, which shall include--
       (A) a description of the results of each audit and review 
     under paragraph (1); and
       (B) any recommendations for increasing compliance by public 
     housing agencies with their public housing agency plans 
     approved under section 5A of the United States Housing Act of 
     1937 (as added by subsection (a) of this section).

     SEC. 107. CONTRACT PROVISIONS AND REQUIREMENTS.

       (a) Conditions.--Section 6(a) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437d(a)) is amended--
       (1) in the first sentence, by inserting ``, in a manner 
     consistent with the public housing agency plan'' before the 
     period; and
       (2) by striking the second sentence.
       (b) Repeal of Federal Preferences; Revision of Maximum 
     Income Limits; Certification of Compliance With Requirements; 
     Notification of Eligibility.--Section 6(c) of the United 
     States Housing Act of 1937 (42 U.S.C. 1437d(c)) is amended to 
     read as follows:
       ``(c) [Reserved.]''.
       (c) Excess Funds.--Section 6(e) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437d(e)) is amended to read 
     as follows:
       ``(e) [Reserved.]''.
       (d) Performance Indicators for Public Housing Agencies.--
     Section 6(j) of the United States Housing Act of 1937 (42 
     U.S.C. 1437d(j)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (B)--
       (i) by striking ``obligated'' and inserting ``provided''; 
     and
       (ii) by striking ``unexpended'' and inserting ``unobligated 
     by the public housing agency'';
       (B) in subparagraph (D), by striking ``energy'' and 
     inserting ``utility'';
       (C) by redesignating subparagraph (H) as subparagraph (J); 
     and
       (D) by inserting after subparagraph (G) the following:
       ``(H) The extent to which the public housing agency--
       ``(i) coordinates, promotes, or provides effective programs 
     and activities to promote the economic self-sufficiency of 
     public housing residents; and
       ``(ii) provides public housing residents with opportunities 
     for involvement in the administration of the public housing.

[[Page S10032]]

       ``(I) The extent to which the public housing agency 
     implements--
       ``(i) effective screening and eviction policies; and
       ``(ii) other anticrime strategies;

     including the extent to which the public housing agency 
     coordinates with local government officials and residents in 
     the development and implementation of these strategies.
       ``(J) The extent to which the public housing agency is 
     providing acceptable basic housing conditions.
       ``(K) The extent to which the public housing agency 
     successfully meets the goals and carries out the activities 
     and programs of the public housing agency plan under section 
     5(A).''; and
       (2) in paragraph (2)(A)(i), by inserting after the first 
     sentence the following: ``The Secretary may use a simplified 
     set of indicators for public housing agencies with less than 
     250 public housing units.''.
       (e) Drug-Related and Criminal Activity.--Section 6(k) of 
     the United States Housing Act of 1937 (42 U.S.C. 1437d(k)) is 
     amended, in the matter following paragraph (6)--
       (1) by striking ``drug-related'' and inserting ``violent or 
     drug-related''; and
       (2) by inserting ``or any activity resulting in a felony 
     conviction,'' after ``on or off such premises,''.
       (f) Leases.--Section 6(l) of the United States Housing Act 
     of 1937 (42 U.S.C. 1437d(l)) is amended--
       (1) in paragraph (3), by striking ``not be less than'' and 
     all that follows through the end of paragraph (3) and 
     inserting: ``be the period of time required under State or 
     local law, except that the public housing agency may provide 
     such notice within a reasonable time which does not exceed 
     the lesser of--
       ``(A) the period provided under applicable State or local 
     law; or
       ``(B) 30 days--
       ``(i) if the health or safety of other tenants, public 
     housing agency employees, or persons residing in the 
     immediate vicinity of the premises is threatened; or
       ``(ii) in the event of any drug-related or violent criminal 
     activity or any felony conviction;'';
       (2) in paragraph (6), by striking ``and'' at the end;
       (3) by redesignating paragraph (7) as paragraph (8); and
       (4) by inserting after paragraph (6) following:
       ``(7) provide that any occupancy in violation of section 
     7(e)(1) or the furnishing of any false or misleading 
     information pursuant to section 7(e)(2) shall be cause for 
     termination of tenancy; and''.
       (g) Public Housing Assistance to Foster Care Children.--
     Section 6(o) of the United States Housing Act of 1937 (42 
     U.S.C. 1437d(o)) is amended by striking ``Subject'' and all 
     that follows through ``, in'' and inserting ``In''.
       (h) Preference for Areas With Inadequate Supply of Very 
     Low-Income Housing.--Section 6(p) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437d(p)) is amended to read 
     as follows:
       ``(p) [Reserved.]''.
       (i) Transition Rule Relating to Preferences.--During the 
     period beginning on the date of enactment of this Act and 
     ending on the date on which the initial public housing agency 
     plan of a public housing agency is approved under section 5A 
     of the United States Housing Act of 1937 (as added by this 
     Act) the public housing agency may establish local 
     preferences for making available public housing under the 
     United States Housing Act of 1937 and for providing tenant-
     based assistance under section 8 of that Act.

     SEC. 108. 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 (42 U.S.C. 1437d) is amended--
       (1) in subparagraph (A)--
       (A) by striking clause (i) and inserting the following:
       ``(i) solicit competitive proposals from other public 
     housing agencies and private housing management agents that, 
     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 striking clause (iv) and inserting the following:
       ``(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 after clause (iii) the following:
       ``(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 
     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)(I) 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 Reform and Responsibility Act of 1997, the 
     Secretary shall--
       ``(aa) 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
       ``(bb) in the case of a troubled public housing agency with 
     fewer than 1,250 units, either petition for the appointment 
     of a receiver pursuant to subparagraph (A)(ii), or take 
     possession of the public housing agency (including all or 
     part of any project or program of the agency) pursuant to 
     subparagraph (A)(iv) and 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 or 
     program of the agency).
       ``(II) During the period between the date on which a 
     petition is filed under item (aa) and the date on which a 
     receiver assumes responsibility for the management of the 
     public housing agency under that item, the Secretary may take 
     possession of the public housing agency (including all or 
     part of any project or program of the agency) pursuant to 
     subparagraph (A)(iv) and may 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 or 
     program of the agency).
       ``(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 1 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 1 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), 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 1 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

[[Page S10033]]

     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) Applicability.--The provisions of, and duties and 
     authorities conferred or confirmed by, the amendments made by 
     subsection (a) shall apply with respect to any action taken 
     before, on, or after the effective date of this Act and shall 
     apply to any receiver 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 ``(except as provided in section 
     6(j)(3))'' after ``6''.

     SEC. 109. PUBLIC HOUSING SITE-BASED WAITING LISTS.

       Section 6 of the United States Housing Act of 1937 is 
     amended by adding at the end the following:
       ``(s) Site-Based Waiting Lists.--
       ``(1) In general.--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 under which applicants may apply directly at or 
     otherwise designate the development or developments in which 
     they seek to reside.
       ``(2) Civil rights.--Any procedures established under 
     paragraph (1) shall comply with title VI of the Civil Rights 
     Act of 1964, the Fair Housing Act, and other applicable civil 
     rights laws.
       ``(3) Notice required.--Any system described in paragraph 
     (1) shall provide for the full disclosure by the public 
     housing agency to each applicant of any option available to 
     the applicant in the selection of the development in which to 
     reside.''.

     SEC. 110. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.

       (a) In General.--Section 9 of the United States Housing Act 
     of 1937 (42 U.S.C. 1437g) is amended to read as follows:

     ``SEC. 9. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.

       ``(a) In General.--Except for assistance provided under 
     section 8 of this Act or as otherwise provided in the Public 
     Housing Reform and Responsibility Act of 1997, all programs 
     under which assistance is provided for public housing under 
     this Act on the day before October 1, 1998, shall be merged, 
     as appropriate, into either--
       ``(1) the Capital Fund established under subsection (c); or
       ``(2) the Operating Fund established under subsection (d).
       ``(b) Use of Existing Funds.--With the exception of funds 
     made available pursuant to section 8 or section 20(f) and 
     funds made available for the urban revitalization 
     demonstration program authorized under the Department of 
     Veterans Affairs and Housing and Urban Development, and 
     Independent Agencies Appropriations Acts--
       ``(1) funds made available to the Secretary for public 
     housing purposes that have not been obligated by the 
     Secretary to a public housing agency as of October 1, 1998, 
     shall be made available, for the period originally provided 
     in law, for use in either the Capital Fund or the Operating 
     Fund, as appropriate; and
       ``(2) funds made available to the Secretary for public 
     housing purposes that have been obligated by the Secretary to 
     a public housing agency but that, as of October 1, 1998, have 
     not been obligated by the public housing agency, may be made 
     available by that public housing agency, for the period 
     originally provided in law, for use in either the Capital 
     Fund or the Operating Fund, as appropriate.
       ``(c) Capital Fund.--
       ``(1) In general.--The Secretary shall establish a Capital 
     Fund for the purpose of making assistance available to public 
     housing agencies to carry out capital and management 
     activities, including--
       ``(A) the development and modernization of public housing 
     projects, including the redesign, reconstruction, and 
     reconfiguration of public housing sites and buildings and the 
     development of mixed-finance projects;
       ``(B) vacancy reduction;
       ``(C) addressing deferred maintenance needs and the 
     replacement of dwelling equipment;
       ``(D) planned code compliance;
       ``(E) management improvements;
       ``(F) demolition and replacement;
       ``(G) resident relocation;
       ``(H) capital expenditures to facilitate programs to 
     improve the empowerment and economic self-sufficiency of 
     public housing residents and to improve resident 
     participation;
       ``(I) capital expenditures to improve the security and 
     safety of residents; and
       ``(J) homeownership activities.
       ``(2) Establishment of capital fund formula.--The Secretary 
     shall develop a formula for providing assistance under the 
     Capital Fund, which may take into account--
       ``(A) the number of public housing dwelling units owned or 
     operated by the public housing agency and the percentage of 
     those units that are occupied by very low-income families;
       ``(B) if applicable, the reduction in the number of public 
     housing units owned or operated by the public housing agency 
     as a result of any conversion to a system of tenant-based 
     assistance;
       ``(C) the costs to the public housing agency of meeting the 
     rehabilitation and modernization needs, and meeting the 
     reconstruction, development, replacement housing, and 
     demolition needs of public housing dwelling units owned and 
     operated by the public housing agency;
       ``(D) the degree of household poverty served by the public 
     housing agency;
       ``(E) the costs to the public housing agency of providing a 
     safe and secure environment in public housing units owned and 
     operated by the public housing agency; and
       ``(F) the ability of the public housing agency to 
     effectively administer the Capital Fund distribution of the 
     public housing agency.
       ``(3) Condition on use of the capital fund for development 
     and modernization.--
       ``(A) Development.--Any public housing developed using 
     amounts provided under this subsection shall be operated for 
     a 40-year period under the terms and conditions applicable to 
     public housing during that period, beginning on the date on 
     which the development (or stage of development) becomes 
     available for occupancy.
       ``(B) Modernization.--Any public housing, or portion 
     thereof, that is modernized using amounts provided under this 
     subsection shall be maintained and operated for a 20-year 
     period under the terms and conditions applicable to public 
     housing during that period, beginning on the latest date on 
     which modernization is completed.
       ``(C) Applicability of latest expiration date.--Public 
     housing subject to this paragraph or to any other provision 
     of law mandating the operation of the housing as public 
     housing or under the terms and conditions applicable to 
     public housing for a specified length of time shall be 
     maintained and operated as required until the latest 
     expiration date.
       ``(d) Operating Fund.--
       ``(1) In general.--The Secretary shall establish an 
     Operating Fund for the purpose of making assistance available 
     to public housing agencies for the operation and management 
     of public housing, including--
       ``(A) procedures and systems to maintain and ensure the 
     efficient management and operation of public housing units;
       ``(B) activities to ensure a program of routine 
     preventative maintenance;
       ``(C) anticrime and antidrug activities, including the 
     costs of providing adequate security for public housing 
     residents;
       ``(D) activities related to the provision of services, 
     including service coordinators for elderly persons or persons 
     with disabilities;
       ``(E) activities to provide for management and 
     participation in the management and policymaking of public 
     housing by public housing residents;
       ``(F) the costs associated with the operation and 
     management of mixed-finance projects, to the extent 
     appropriate (including the funding of an operating reserve to 
     ensure affordability for low-income and very low-income 
     families in lieu of the availability of operating funds for 
     public housing units in a mixed-finance project);
       ``(G) the reasonable costs of insurance;
       ``(H) the reasonable energy costs associated with public 
     housing units, with an emphasis on energy conservation; and
       ``(I) the costs of administering a public housing work 
     program under section 12, including the costs of any related 
     insurance needs.
       ``(2) Establishment of operating fund formula.--The 
     Secretary shall establish a formula for providing assistance 
     under the Operating Fund, which may take into account--
       ``(A) 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;
       ``(B) 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;
       ``(C) the degree of household poverty served by a public 
     housing agency;
       ``(D) 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 residents;
       ``(E) the number of dwelling units owned and operated by 
     the public housing agency that are

[[Page S10034]]

     chronically vacant and the amount of assistance appropriate 
     for those units;
       ``(F) the costs of the public housing agency associated 
     with anticrime and antidrug activities, including the costs 
     of providing adequate security for public housing residents; 
     and
       ``(G) the ability of the public housing agency to 
     effectively administer the Operating Fund distribution of the 
     public housing agency.
       ``(e) Limitations on Use of Funds.--
       ``(1) In general.--Each public housing agency may use not 
     more than 20 percent of the Capital Fund distribution of the 
     public housing agency for activities that are eligible for 
     assistance under the Operating Fund under subsection (d), if 
     the public housing agency plan provides for such use.
       ``(2) New construction.--
       ``(A) In general.--A public housing agency may not use any 
     of the Capital Fund or Operating Fund distributions of the 
     public housing agency for the purpose of constructing any 
     public housing unit, if such construction would result in a 
     net increase in the number of public housing units owned or 
     operated by the public housing agency on the date of 
     enactment of the Public Housing Reform and Responsibility Act 
     of 1997, including any public housing units demolished as 
     part of any revitalization effort.
       ``(B) Exception.--
       ``(i) In general.--Notwithstanding subparagraph (A), a 
     public housing agency may use the Capital Fund or Operating 
     Fund distributions of the public housing agency for the 
     construction and operation of housing units that are 
     available and affordable to low-income families in excess of 
     the limitations on new construction set forth in subparagraph 
     (A), except that the formulas established under subsections 
     (c)(2) and (d)(2) shall not provide additional funding for 
     the specific purpose of allowing construction and operation 
     of housing in excess of those limitations.
       ``(ii) Exception.--Notwithstanding clause (i), subject to 
     reasonable limitations set by the Secretary, the formulae 
     established under subsections (c)(2) and (d)(2) may provide 
     additional funding for the operation and modernization costs 
     (but not the initial development costs) of housing in excess 
     of amounts otherwise permitted under this paragraph if--

       ``(I) those units are part of a mixed-finance project or 
     otherwise leverage significant additional private or public 
     investment; and

       ``(II) the estimated cost of the useful life of the project 
     is less than the estimated cost of providing tenant-based 
     assistance under section 8(o) for the same period of time.

       ``(f) Direct Provision of Operating and Capital 
     Assistance.--
       ``(1) In general.--The Secretary shall directly provide 
     operating and capital assistance under this section to a 
     resident management corporation managing a public housing 
     development pursuant to a contract under this section, but 
     only if--
       ``(A) the resident management corporation petitions the 
     Secretary for the release of the funds;
       ``(B) the contract provides for the resident management 
     corporation to assume the primary management responsibilities 
     of the public housing agency; and
       ``(C) the Secretary determines that the corporation has the 
     capability to effectively discharge such responsibilities.
       ``(2) Use of assistance.--Any operating and capital 
     assistance provided to a resident management corporation 
     pursuant to this subsection shall be used for purposes of 
     operating the public housing developments of the agency and 
     performing such other eligible activities with respect to 
     public housing as may be provided under the contract.
       ``(3) Responsibility of public housing agency.--If the 
     Secretary provides direct funding to a resident management 
     corporation under this subsection, the public housing agency 
     shall not be responsible for the actions of the resident 
     management corporation.
       ``(g) Technical Assistance.--To the extent approved in 
     advance in appropriations Acts, the Secretary may make grants 
     or enter into contracts in accordance with this subsection 
     for purposes of providing, either directly or indirectly--
       ``(1) technical assistance to public housing agencies, 
     resident councils, resident organizations, and resident 
     management corporations, including assistance relating to 
     monitoring and inspections;
       ``(2) training for public housing agency employees and 
     residents;
       ``(3) data collection and analysis; and
       ``(4) training, technical assistance, and education to 
     assist public housing agencies that are--
       ``(A) at risk of being designated as troubled under section 
     6(j) from being so designated; and
       ``(B) designated as troubled under section 6(j) in 
     achieving the removal of that designation.
       ``(h) Emergency Reserve.--
       ``(1) In general.--
       ``(A) Set-aside.--In each fiscal year, the Secretary shall 
     set aside not more than 2 percent of the amount made 
     available for use under the capital fund to carry out this 
     section for that fiscal year for use in accordance with this 
     subsection.
       ``(B) Use of funds.--Amounts set aside under this paragraph 
     shall be available to the Secretary for use in connection 
     with--
       ``(i) emergencies and other disasters;
       ``(ii) housing needs resulting from any settlement of 
     litigation; and
       ``(iii) the Operation Safe Home program, except that 
     amounts set aside under this clause may not exceed 
     $10,000,000 in any fiscal year.
       ``(2) Limitation.--With respect to any fiscal year, the 
     Secretary may carry over not more than a total of $25,000,000 
     in unobligated amounts set aside under this subsection for 
     use in connection with the activities described in paragraph 
     (1)(B) during the succeeding fiscal year.
       ``(3) Reports.--The Secretary and the Office of Inspector 
     General shall report to the Committee on Banking, Housing, 
     and Urban Affairs of the Senate and the Committee on Banking 
     and Financial Services of the House of Representatives 
     regarding the feasibility of transferring the authority to 
     administer the program functions implemented to reduce 
     violent crime in public housing under Operation Safe Home to 
     the Office of Public and Indian Housing or to the Department 
     of Justice.
       ``(4) Publication.--The Secretary shall publish the use of 
     any amounts allocated under this subsection relating to 
     emergencies (other disasters and housing needs resulting from 
     any settlement of litigation) in the Federal Register.
       ``(i) Penalty for Slow Expenditure of Capital Funds.--
       ``(1) In general.--
       ``(A) Time period.--Except as provided in paragraph (2), 
     and subject to subparagraph (B) of this paragraph, a public 
     housing agency shall obligate any assistance received under 
     this section not later than 18 months after the date on which 
     the funds become available to the agency for obligation.
       ``(B) Extension of time period.--The Secretary may--
       ``(i) extend the time period described in subparagraph (A) 
     for a period of not more than 1 year with respect to a public 
     housing agency, if the Secretary determines that the failure 
     of the public housing agency to obligate assistance in a 
     timely manner is attributable to events beyond the control of 
     the public housing agency; and
       ``(ii) provide an exception to the requirements of 
     subparagraph (A) with respect to any de minimis amounts to be 
     obligated by a public housing agency with the funding for the 
     subsequent fiscal year of the public housing agency, to the 
     extent that the Secretary determines such action to be 
     necessary to permit the public housing agency to accumulate 
     sufficient funding--

       ``(I) to undertake certain activities; and

       ``(II) to provide replacement housing.

       ``(C) Effect of failure to comply.--
       ``(i) In general.--A public housing agency shall not be 
     awarded assistance under this section for any month during 
     any fiscal year in which the public housing agency has funds 
     unobligated in violation of subparagraph (A).
       ``(ii) Effect of failure to comply.--During any fiscal year 
     described in clause (i), the Secretary shall withhold all 
     assistance that would otherwise be provided to the public 
     housing agency. If the public housing agency cures its 
     default during the year, it shall be provided with the share 
     attributable to the months remaining in the year.
       ``(iii) Redistribution.--The total amount of any funds not 
     provided public housing agencies by operation of this 
     subparagraph shall be distributed to high-performing 
     agencies, as determined under section 6(j).
       ``(2) Exception.--
       ``(A) In general.--Subject to subparagraph (B), if the 
     Secretary has consented, before the date of enactment of the 
     Public Housing Reform and Responsibility Act of 1997, to an 
     obligation period for any agency longer than provided under 
     paragraph (1)(A), a public housing agency that obligates its 
     funds before the expiration of that period shall not be 
     considered to be in violation of paragraph (1)(A).
       ``(B) Fiscal year 1995.--Notwithstanding subparagraph (A)--
       ``(i) any funds appropriated to a public housing agency for 
     fiscal year 1995, or for any preceding fiscal year, shall be 
     fully obligated by the public housing agency not later than 
     September 30, 1998; and
       ``(ii) any funds appropriated to a public housing agency 
     for fiscal year 1996 or 1997 shall be fully obligated by the 
     public housing agency not later than September 30, 1999.
       ``(3) Expenditure of amounts.--
       ``(A) In general.--A public housing agency shall spend any 
     assistance received under this section not later than 4 years 
     (plus the period of any extension approved by the Secretary 
     under paragraph (1)(B)) after the date on which funds become 
     available to the agency for obligation.
       ``(B) Enforcement.--The Secretary shall enforce the 
     requirement of subparagraph (A) through default remedies up 
     to and including withdrawal of the funding.
       ``(4) Right of recapture.--Any obligation entered into by a 
     public housing agency shall be subject to the right of the 
     Secretary to recapture the obligated amounts for violation by 
     the public housing agency of the requirements of this 
     subsection.''.
       (b) Implementation; Effective Date; Transition Period.--
       (1) Implementation.--Not later than 1 year after the date 
     of enactment of this Act, in accordance with the negotiated 
     rulemaking procedures set forth in subchapter III of chapter 
     5 of title 5, United States Code, the Secretary shall 
     establish the formulas described in subsections (c)(3) and 
     (d)(2) of section 9 of the United States Housing Act of 1937, 
     as amended by this section.
       (2) Effective date.--The formulas established under 
     paragraph (1) shall be effective only with respect to amounts 
     made available under section 9 of the United States Housing 
     Act of 1937, as amended by this section, in fiscal year 1999 
     or in any succeeding fiscal year.
       (3) Transition period.--
       (A) In general.--Subject to subparagraph (B), prior to the 
     effective date described in paragraph (2), the Secretary 
     shall provide that each public housing agency shall receive 
     funding under sections 9 and 14 of the United States Housing 
     Act of 1937, as those sections existed on the day before the 
     date of enactment of this Act.
       (B) Qualification.--If a public housing agency establishes 
     a rental amount that is less than 30 percent of the monthly 
     adjusted income of the family under section 3(a)(1)(A) of the 
     United States Housing Act of 1937 (as amended

[[Page S10035]]

     by section 103(a) of this Act), the Secretary shall not take 
     into account any reduction of or increase in the per unit 
     dwelling rental income of the public housing agency resulting 
     from the use of that rental amount in calculating the 
     contributions for the public housing agency for the operation 
     of the public housing under section 9 of the United States 
     Housing Act of 1937 (as in existence on the day before the 
     date of enactment of this Act).

     SEC. 111. COMMUNITY SERVICE AND SELF-SUFFICIENCY.

       Section 12 of the United States Housing Act of 1937 (42 
     U.S.C. 1437j) is amended by adding at the end the following:
       ``(c) Community Service and Self-Sufficiency Requirement.--
       ``(1) Minimum requirement.--Notwithstanding any other 
     provision of law, each adult member of each family assisted 
     under this title shall--
       ``(A) contribute not less than 8 hours per month of 
     community service (not to include any political activity) 
     within the community in which that adult resides; or
       ``(B) participate in a self-sufficiency program (as that 
     term is defined in subsection (d)(1)) for not less than 8 
     hours per month.
       ``(2) Inclusion in plan.--Each public housing agency shall 
     include in the public housing agency plan a detailed 
     description of the manner in which the public housing agency 
     intends to implement and administer paragraph (1).
       ``(3) Exemptions.--The Secretary may provide an exemption 
     from paragraph (1) for any adult who--
       ``(A) has attained age 62;
       ``(B) is a blind or disabled individual, as defined under 
     section 1614 of the Social Security Act (42 U.S.C. 1382c) and 
     who is unable to comply with this section, or a primary 
     caretaker of that individual;
       ``(C) is engaged in a work activity (as that term is 
     defined in subsection (d)(1)(C)); or
       ``(D) meets the requirements for being exempted from having 
     to engage in a work activity under the State program funded 
     under part A of title IV of the Social Security Act (42 
     U.S.C. 601 et seq.) or under any other welfare program of the 
     State in which the public housing agency is located.
       ``(d) Self-Sufficiency.--
       ``(1) Definitions.--In this section--
       ``(A) 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; and
       ``(ii) resides in a public housing dwelling unit or is 
     provided tenant-based assistance;
       ``(B) 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 and apprenticeship; and
       ``(C) the term `work activities' has the meaning given that 
     term in section 407(d) of the Social Security Act (42 U.S.C. 
     607(d)) (as in effect on and after July 1, 1997).
       ``(2) Compliance.--
       ``(A) Sanctions.--Notwithstanding any other provision of 
     law, if the welfare or public assistance benefits of a 
     covered family are reduced under a Federal, State, or local 
     law regarding such an assistance program because of any 
     failure of any member of the family to comply with the 
     conditions under the assistance program requiring 
     participation in a self-sufficiency program or a work 
     activities requirement, or because of an act of fraud by any 
     member of the family under the law or program, the amount 
     required to be paid by the family as a monthly contribution 
     toward rent may not be decreased, during the period of the 
     reduction, as a result of any decrease in the income of the 
     family (to the extent that the decrease in income is a result 
     of the benefits reduction).
       ``(B) Review.--Any covered family that is affected by the 
     operation of this paragraph shall have the right to review 
     the determination under this paragraph through the 
     administrative grievance procedure for the public housing 
     agency.
       ``(C) Notice.--Subparagraph (A) shall not apply to any 
     covered family before the public housing agency providing 
     assistance under this Act on behalf of the family obtains 
     written notification from the relevant welfare or public 
     assistance agency specifying that the family's benefits have 
     been reduced because of noncompliance with self-sufficiency 
     program or an applicable work activities requirement and the 
     level of such reduction.
       ``(D) No application of reductions based on time limit for 
     assistance.--For purposes of this paragraph, a reduction in 
     benefits as a result of the expiration of a lifetime time 
     limit for a family receiving welfare or public assistance 
     benefits shall not be considered to be a failure to comply 
     with the conditions under the assistance program requiring 
     participation in a self-sufficiency program or a work 
     activities requirement.
       ``(3) Occupancy rights.--This subsection 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.
       ``(4) Cooperation agreements for self-sufficiency 
     activities.--
       ``(A) Requirement.--To the maximum extent practicable, a 
     public housing agency providing public housing dwelling units 
     or tenant-based assistance for covered families shall enter 
     into such cooperation agreements, with State, local, and 
     other agencies providing assistance to covered families under 
     welfare or public assistance programs, as may be 
     necessary, to provide for such agencies to transfer 
     information to facilitate administration of subsection (c) 
     or paragraph (2) of this subsection, and other information 
     regarding rents, income, and assistance that may assist a 
     public housing agency or welfare or public assistance 
     agency in carrying out its functions.
       ``(B) Contents.--A public housing agency shall seek to 
     include in a cooperation agreement under this paragraph 
     requirements and provisions designed to target assistance 
     under welfare and public assistance programs to families 
     residing in public and other assisted housing developments, 
     which may include providing for self-sufficiency services 
     within such housing, providing for services designed to meet 
     the unique employment-related needs of residents of such 
     housing, providing for placement of workfare positions on-
     site in such housing, and such other elements as may be 
     appropriate.
       ``(C) Confidentiality.--This paragraph may not be construed 
     to authorize any release of information that is prohibited 
     by, or in contravention of, any other provision of Federal, 
     State, or local law.''.

     SEC. 112. REPEAL OF ENERGY CONSERVATION; CONSORTIA AND JOINT 
                   VENTURES.

       Section 13 of the United States Housing Act of 1937 (42 
     U.S.C. 1437k) is amended to read as follows:

     ``SEC. 13. CONSORTIA, JOINT VENTURES, AFFILIATES, AND 
                   SUBSIDIARIES OF PUBLIC HOUSING AGENCIES.

       ``(a) Consortia.--
       ``(1) In general.--Any 2 or more public housing agencies 
     may participate in a consortium for the purpose of 
     administering any or all of the housing programs of those 
     public housing agencies in accordance with this section.
       ``(2) Effect.--With respect to any consortium described in 
     paragraph (1)--
       ``(A) any assistance made available under this title to 
     each of the public housing agencies participating in the 
     consortium shall be paid to the consortium; and
       ``(B) all planning and reporting requirements imposed upon 
     each public housing agency participating in the consortium 
     with respect to the programs operated by the consortium shall 
     be consolidated.
       ``(3) Restrictions.--
       ``(A) Agreement.--Each consortium described in paragraph 
     (1) shall be formed and operated in accordance with a 
     consortium agreement, and shall be subject to the 
     requirements of a joint public housing agency plan, which 
     shall be submitted by the consortium in accordance with 
     section 5A.
       ``(B) Minimum requirements.--The Secretary shall specify 
     minimum requirements relating to the formation and operation 
     of consortia and the minimum contents of consortium 
     agreements under this paragraph.
       ``(b) Joint Ventures.--
       ``(1) In general.--Notwithstanding any other provision of 
     law, a public housing agency, in accordance with the public 
     housing agency plan, may--
       ``(A) form and operate wholly owned or controlled 
     subsidiaries (which may be nonprofit corporations) and other 
     affiliates, any of which may be directed, managed, or 
     controlled by the same persons who constitute the board of 
     commissioners or other similar governing body of the public 
     housing agency, or who serve as employees or staff of the 
     public housing agency; or
       ``(B) enter into joint ventures, partnerships, or other 
     business arrangements with, or contract with, any person, 
     organization, entity, or governmental unit, with respect to 
     the administration of the programs of the public housing 
     agency, including any program that is subject to this title.
       ``(2) Use of and treatment income.--Any income generated 
     under paragraph (1)--
       ``(A) shall be used for low-income housing or to benefit 
     the residents of the public housing agency; and
       ``(B) shall not result in any decrease in any amount 
     provided to the public housing agency under this title.
       ``(3) Audits.--The Comptroller General of the United 
     States, the Secretary, and the Inspector General of the 
     Department of Housing and Urban Development may conduct an 
     audit of any activity undertaken under paragraph (1) at any 
     time.''.

     SEC. 113. REPEAL OF MODERNIZATION FUND.

       (a) In General.--Section 14 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437l) is repealed.
       (b) Conforming Amendments.--The United States Housing Act 
     of 1937 (42 U.S.C. 1437 et seq.) is amended--
       (1) in section 5(c)(5), by striking ``for use under section 
     14 or'';
       (2) in section 5(c)(7)--
       (A) in subparagraph (A)--
       (i) by striking clause (iii); and
       (ii) by redesignating clauses (iv) through (x) as clauses 
     (iii) through (ix), respectively; and
       (B) in subparagraph (B)--
       (i) by striking clause (iii); and
       (ii) by redesignating clauses (iv) through (x) as clauses 
     (iii) through (ix), respectively;
       (3) in section 6(j)(1)--
       (A) by striking subparagraph (B); and
       (B) by redesignating subparagraphs (C) through (H) as 
     subparagraphs (B) through (G), respectively;
       (4) in section 6(j)(2)(A)--
       (A) in clause (i), by striking ``The Secretary shall also 
     designate,'' and all that follows through the period at the 
     end; and
       (B) in clause (iii), by striking ``(including designation 
     as a troubled agency for purposes of the program under 
     section 14)'';
       (5) in section 6(j)(2)(B)--
       (A) in clause (i), by striking ``and determining that an 
     assessment under this subparagraph

[[Page S10036]]

     will not duplicate any review conducted under section 
     14(p)''; and
       (B) in clause (ii)--
       (i) by striking ``(I) the agency's comprehensive plan 
     prepared pursuant to section 14 adequately and appropriately 
     addresses the rehabilitation needs of the agency's inventory, 
     (II)'' and inserting ``(I)''; and
       (ii) by striking ``(III)'' and inserting ``(II)'';
       (6) in section 6(j)(3)--
       (A) in clause (ii), by adding ``and'' at the end;
       (B) by striking clause (iii); and
       (C) by redesignating clause (iv) as clause (iii);
       (7) in section 6(j)(4)--
       (A) in subparagraph (D), by adding ``and'' at the end;
       (B) in subparagraph (E), by striking ``; and'' at the end 
     and inserting a period; and
       (C) by striking subparagraph (F);
       (8) in section 20--
       (A) by striking subsection (c) and inserting the following:
       ``(c) [Reserved.]''; and
       (B) by striking subsection (f) and inserting the following:
       ``(f) [Reserved.]'';
       (9) in section 21(a)(2)--
       (A) by striking subparagraph (A); and
       (B) by redesignating subparagraphs (B) and (C) as 
     subparagraphs (A) and (B), respectively;
       (10) in section 21(a)(3)(A)(v), by striking ``the building 
     or buildings meet the minimum safety and livability standards 
     applicable under section 14, and'';
       (11) in section 25(b)(1), by striking ``From amounts 
     reserved'' and all that follows through ``the Secretary may'' 
     and inserting the following: ``To the extent approved in 
     appropriations Acts, the Secretary may'';
       (12) in section 25(e)(2)--
       (A) by striking ``The Secretary'' and inserting ``To the 
     extent approved in appropriations Acts, the Secretary''; and
       (B) by striking ``available annually from amounts under 
     section 14'';
       (13) in section 25(e), by striking paragraph (3);
       (14) in section 25(f)(2)(G)(i), by striking ``including--'' 
     and all that follows through ``an explanation'' and inserting 
     ``including an explanation'';
       (15) in section 25(i)(1), by striking the second sentence; 
     and
       (16) in section 202(b)(2)--
       (A) by striking ``(b) Financial Assistance.--'' and all 
     that follows through ``The Secretary may,'' and inserting the 
     following:
       ``(b) Financial Assistance.--The Secretary may''; and
       (B) by striking paragraph (2).

     SEC. 114. ELIGIBILITY FOR PUBLIC AND ASSISTED HOUSING.

       Section 16 of the United States Housing Act of 1937 (42 
     U.S.C. 1437n) is amended to read as follows:

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

       ``(a) Income Eligibility for Public Housing.--
       ``(1) In general.--Of the dwelling units of a public 
     housing agency, including public housing units in a 
     designated mixed-finance project, made available for 
     occupancy in any fiscal year of the public housing agency--
       ``(A) not less than 40 percent shall be occupied by 
     families whose incomes do not exceed 30 percent of the area 
     median income for those families;
       ``(B) not less than 75 percent shall be occupied by 
     families whose incomes do not exceed 60 percent of the area 
     median income for those families; and
       ``(C) any remaining dwelling units may be made available 
     for families whose incomes do not exceed 80 percent of the 
     area median income for those families.
       ``(2) Establishment of different standards.--
     Notwithstanding paragraph (1), if approved by the Secretary, 
     a public housing agency, in accordance with the public 
     housing agency plan, may for good cause establish and 
     implement an occupancy standard other than the standard 
     described in paragraph (1).
       ``(3) 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.
       ``(4) Mixed-income housing standard.--Each public housing 
     agency plan submitted by a public housing agency shall 
     include a plan for achieving a diverse income mix among 
     residents in each public housing project of the public 
     housing agency and among the scattered site public housing of 
     the public housing agency.
       ``(b) Income Eligibility for Certain Assisted Housing.--
       ``(1) Tenant-based assistance.--Of the dwelling units 
     receiving tenant-based assistance under section 8 made 
     available for occupancy in any fiscal year of the public 
     housing agency--
       ``(A) not less than 50 percent shall be occupied by 
     families whose incomes do not exceed 30 percent of the area 
     median income for those families; and
       ``(B) any remaining dwelling units may be made available 
     for families whose incomes do not exceed 80 percent of the 
     area median income for those families.
       ``(2) Establishment of different standards.--
     Notwithstanding paragraph (1), if approved by the Secretary, 
     a public housing agency, in accordance with the public 
     housing agency plan, may for good cause establish and 
     implement an occupancy standard other than the standard 
     described in paragraph (1).
       ``(3) Project-based assistance.--Of the total number of 
     dwelling units in a project receiving assistance under 
     section 8, 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) 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 75 percent shall be occupied by 
     families whose incomes do not exceed 60 percent of the area 
     median income.
       ``(c) Definition of Area Median Income.--In this section, 
     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 subsections (a) and (b) if the 
     Secretary determines that such variations are necessary 
     because of unusually high or low family incomes.''.

     SEC. 115. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.

       (a) In General.--Section 18 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437p) is amended to read as follows:

     ``SEC. 18. DEMOLITION AND DISPOSITION OF PUBLIC HOUSING.

       ``(a) Applications for Demolition and Disposition.--Except 
     as provided in subsection (b), not later than 60 days after 
     receiving an application by a public housing agency for 
     authorization, with or without financial assistance under 
     this title, to demolish or dispose of a public housing 
     project or a portion of a public housing project (including 
     any transfer to a resident-supported nonprofit entity), the 
     Secretary shall approve the application, if the public 
     housing agency certifies--
       ``(1) in the case of--
       ``(A) an application proposing demolition of a public 
     housing project or a portion of a public housing project, 
     that--
       ``(i) the project or portion of the public housing project 
     is obsolete as to physical condition, location, or other 
     factors, making it unsuitable for housing purposes; and
       ``(ii) no reasonable program of modifications is cost-
     effective to return the public housing project or portion of 
     the project to useful life; and
       ``(B) an application proposing the demolition of only a 
     portion of a public housing project, that the demolition will 
     help to assure the viability of the remaining portion of the 
     project;
       ``(2) in the case of an application proposing disposition 
     of a public housing project or other real property subject to 
     this title by sale or other transfer, that--
       ``(A) the retention of the property is not in the best 
     interests of the residents or the public housing agency 
     because--
       ``(i) conditions in the area surrounding the public housing 
     project adversely affect the health or safety of the 
     residents or the feasible operation of the project by the 
     public housing agency; or
       ``(ii) disposition allows the acquisition, development, or 
     rehabilitation of other properties that will be more 
     efficiently or effectively operated as low-income housing;
       ``(B) the public housing agency has otherwise determined 
     the disposition to be appropriate for reasons that are--
       ``(i) in the best interests of the residents and the public 
     housing agency;
       ``(ii) consistent with the goals of the public housing 
     agency and the public housing agency plan; and
       ``(iii) otherwise consistent with this title; or
       ``(C) for property other than dwelling units, the property 
     is excess to the needs of a public housing project or the 
     disposition is incidental to, or does not interfere with, 
     continued operation of a public housing project;
       ``(3) that the public housing agency has specifically 
     authorized the demolition or disposition in the public 
     housing agency plan, and has certified that the actions 
     contemplated in the public housing agency plan comply with 
     this section;
       ``(4) that the public housing agency--
       ``(A) will provide for the payment of the actual and 
     reasonable relocation expenses of each resident to be 
     displaced;
       ``(B) will ensure that each displaced resident is offered 
     comparable housing--
       ``(i) that meets housing quality standards; and
       ``(ii) which may include--

       ``(I) tenant-based assistance;
       ``(II) project-based assistance; or
       ``(III) occupancy in a unit operated or assisted by the 
     public housing agency at a rental rate paid by the resident 
     that is comparable to the rental rate applicable to the unit 
     from which the resident is vacated;

       ``(C) will provide any necessary counseling for residents 
     who are displaced; and
       ``(D) will not commence demolition or complete disposition 
     until all residents residing in the unit are relocated;
       ``(5) that the net proceeds of any disposition will be 
     used--
       ``(A) unless waived by the Secretary, for the retirement of 
     outstanding obligations issued to finance the original public 
     housing project or modernization of the project; and
       ``(B) to the extent that any proceeds remain after the 
     application of proceeds in accordance with subparagraph (A), 
     for the provision of low-income housing or to benefit the 
     residents of the public housing agency; and
       ``(6) that the public housing agency has complied with 
     subsection (c).
       ``(b) Disapproval of Applications.--The Secretary shall 
     disapprove an application submitted under subsection (a) if 
     the Secretary determines that--
       ``(1) any certification made by the public housing agency 
     under that subsection is clearly inconsistent with 
     information and data available to the Secretary or 
     information or data requested by the Secretary; or

[[Page S10037]]

       ``(2) the application was not developed in consultation 
     with--
       ``(A) residents who will be affected by the proposed 
     demolition or disposition; and
       ``(B) each resident advisory board and resident council, if 
     any, that will be affected by the proposed demolition or 
     disposition.
       ``(c) Resident Opportunity To Purchase in Case of Proposed 
     Disposition.--
       ``(1) In general.--In the case of a proposed disposition of 
     a public housing project or portion of a project, the public 
     housing agency shall, in appropriate circumstances, as 
     determined by the Secretary, initially offer the property to 
     any eligible resident organization, eligible resident 
     management corporation, or nonprofit organization acting on 
     behalf of the residents, if that entity has expressed an 
     interest, in writing, to the public housing agency in a 
     timely manner, in purchasing the property for continued use 
     as low-income housing.
       ``(2) Timing.--
       ``(A) Thirty-day notice.--A resident organization, resident 
     management corporation, or other resident-supported nonprofit 
     entity referred to in paragraph (1) may express interest in 
     purchasing property that is the subject of a disposition, as 
     described in paragraph (1), during the 30-day period 
     beginning on the date of notification of a proposed sale of 
     the property.
       ``(B) Sixty-day notice.--If an entity expresses written 
     interest in purchasing a property, as provided in 
     subparagraph (A), no disposition of the property shall occur 
     during the 60-day period beginning on the date of receipt of 
     that written notice, during which time that entity shall be 
     given the opportunity to obtain a firm commitment for 
     financing the purchase of the property.
       ``(d) Replacement Units.--Notwithstanding any other 
     provision of law, replacement housing units for public 
     housing units demolished in accordance with this section may 
     be built on the original public housing location or in the 
     same neighborhood as the original public housing location if 
     the number of those replacement units is fewer than the 
     number of units demolished.''.
       (b) Homeownership Replacement Plan.--
       (1) In general.--Section 304(g) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437aaa-3(g)), as amended by 
     section 1002(b) of the Emergency Supplemental Appropriations 
     for Additional Disaster Assistance, for Anti-terrorism 
     Initiatives, for Assistance in the Recovery from the Tragedy 
     that Occurred At Oklahoma City, and Rescissions Act, 1995 
     (Public Law 104-19; 109 Stat. 236), is amended to read as 
     follows:
       ``(g) [Reserved.]''.
       (2) Effective date.--The amendment made by paragraph (1) 
     shall be effective with respect to any plan for the 
     demolition, disposition, or conversion to homeownership of 
     public housing that is approved by the Secretary after 
     September 30, 1995.
       (c) Uniform Relocation and Real Property Acquisition Act.--
     The Uniform Relocation and Real Property Acquisition Act 
     shall not apply to activities under section 18 of the United 
     States Housing Act of 1937, as amended by this section.

     SEC. 116. REPEAL OF FAMILY INVESTMENT CENTERS; VOUCHER SYSTEM 
                   FOR PUBLIC HOUSING.

       (a) In General.--Section 22 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437t) is amended to read as follows:

     ``SEC. 22. VOUCHER SYSTEM FOR PUBLIC HOUSING.

       ``(a) In General.--
       ``(1) Authorization.--A public housing agency may convert 
     any public housing project (or portion thereof) owned and 
     operated by the public housing agency to a system of tenant-
     based assistance in accordance with this section.
       ``(2) Requirements.--In converting to a tenant-based system 
     of assistance under this section, the public housing agency 
     shall develop a conversion assessment and plan under 
     subsection (b) in consultation with the appropriate public 
     officials, with significant participation by the residents of 
     the project (or portion thereof), which assessment and plan 
     shall--
       ``(A) be consistent with and part of the public housing 
     agency plan; and
       ``(B) describe the conversion and future use or disposition 
     of the public housing project, including an impact analysis 
     on the affected community.
       ``(b) Conversion Assessment and Plan.--
       ``(1) In general.--Not later than 2 years after the date of 
     enactment of the Public Housing Reform and Responsibility Act 
     of 1997, each public housing agency shall assess the status 
     of each public housing project owned and operated by that 
     public housing agency, and shall submit to the Secretary an 
     assessment that includes--
       ``(A) a cost analysis that demonstrates whether or not the 
     cost (both on a net present value basis and in terms of new 
     budget authority requirements) of providing tenant-based 
     assistance under section 8 for the same families in 
     substantially similar dwellings over the same period of time 
     is less expensive than continuing public housing assistance 
     in the public housing project proposed for conversion for the 
     remaining useful life of the project;
       ``(B) an analysis of the market value of the public housing 
     project proposed for conversion both before and after 
     rehabilitation, and before and after conversion;
       ``(C) an analysis of the rental market conditions with 
     respect to the likely success of tenant-based assistance 
     under section 8 in that market for the specific residents of 
     the public housing project proposed for conversion, including 
     an assessment of the availability of decent and safe 
     dwellings renting at or below the payment standard 
     established for tenant-based assistance under section 8 by 
     the public housing agency;
       ``(D) the impact of the conversion to a system of tenant-
     based assistance under this section on the neighborhood in 
     which the public housing project is located; and
       ``(E) a plan that identifies actions, if any, that the 
     public housing agency would take with regard to converting 
     any public housing project or projects (or portions thereof) 
     of the public housing agency to a system of tenant-based 
     assistance.
       ``(2) Streamlined assessment.--At the discretion of the 
     Secretary or at the request of a public housing agency, the 
     Secretary may waive any or all of the requirements of 
     paragraph (1) or otherwise require a streamlined assessment 
     with respect to any public housing project or class of public 
     housing projects.
       ``(3) Implementation of conversion plan.--
       ``(A) In general.--A public housing agency may implement a 
     conversion plan only if the conversion assessment under this 
     section demonstrates that the conversion--
       ``(i) will not be more expensive than continuing to operate 
     the public housing project (or portion thereof) as public 
     housing; and
       ``(ii) will principally benefit the residents of the public 
     housing project (or portion thereof) to be converted, the 
     public housing agency, and the community.
       ``(B) Disapproval.--The Secretary shall disapprove a 
     conversion plan only if the plan is plainly inconsistent with 
     the conversion assessment under subsection (b) or if there is 
     reliable information and data available to the Secretary that 
     contradicts that conversion assessment.
       ``(c) Other Requirements.--To the extent approved by the 
     Secretary, the funds used by the public housing agency to 
     provide tenant-based assistance under section 8 shall be 
     added to the annual contribution contract administered by the 
     public housing agency.''.
       (b) Savings Provision.--The amendment made by subsection 
     (a) does not affect any contract or other agreement entered 
     into under section 22 of the United States Housing Act of 
     1937, as that section existed on the day before the date of 
     enactment of this Act.

     SEC. 117. REPEAL OF FAMILY SELF-SUFFICIENCY; HOMEOWNERSHIP 
                   OPPORTUNITIES.

       (a) In General.--Section 23 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437u) is amended to read as follows:

     ``SEC. 23. PUBLIC HOUSING HOMEOWNERSHIP OPPORTUNITIES.

       ``(a) In General.--Notwithstanding any other provision of 
     law, a public housing agency may, in accordance with this 
     section--
       ``(1) sell any public housing unit in any public housing 
     project of the public housing agency to--
       ``(A) the low-income residents of the public housing 
     agency; or
       ``(B) any organization serving as a conduit for sales to 
     those persons; and
       ``(2) provide assistance to public housing residents to 
     facilitate the ability of those residents to purchase a 
     principal residence.
       ``(b) Right of First Refusal.--In making any sale under 
     this section, the public housing agency shall initially offer 
     the public housing unit at issue to the resident or residents 
     occupying that unit, if any, or to an organization serving as 
     a conduit for sales to any such resident.
       ``(c) Sale Prices, Terms, and Conditions.--Any sale under 
     this section may involve such prices, terms, and conditions 
     as the public housing agency may determine in accordance with 
     procedures set forth in the public housing agency plan.
       ``(d) Purchase Requirements.--
       ``(1) In general.--Each resident that purchases a dwelling 
     unit under subsection (a) shall, as of the date on which the 
     purchase is made--
       ``(A) intend to occupy the property as a principal 
     residence; and
       ``(B) submit a written certification to the public housing 
     agency that such resident will occupy the property as a 
     principal residence for a period of not less than 12 months 
     beginning on that date.
       ``(2) Recapture.--Except for good cause, as determined by a 
     public housing agency in the public housing agency plan, if, 
     during the 1-year period beginning on the date on which any 
     resident acquires a public housing unit under this section, 
     that public housing unit is resold, the public housing agency 
     shall recapture 75 percent of the amount of any proceeds from 
     that resale that exceed the sum of--
       ``(A) the original sale price for the acquisition of the 
     property by the qualifying resident;
       ``(B) the costs of any improvements made to the property 
     after the date on which the acquisition occurs; and
       ``(C) any closing costs incurred in connection with the 
     acquisition.
       ``(e) Protection of Nonpurchasing Residents.--If a public 
     housing resident does not exercise the right of first refusal 
     under subsection (b) with respect to the public housing unit 
     in which the resident resides, the public housing agency 
     shall--
       ``(1) ensure that either another public housing unit or 
     rental assistance under section 8 is made available to the 
     resident; and
       ``(2) provide for the payment of the actual and reasonable 
     relocation expenses of the resident.
       ``(f) Net Proceeds.--The net proceeds of any sales under 
     this section remaining after payment of all costs of the sale 
     and any unassumed, unpaid indebtedness owed in connection 
     with the dwelling units sold under this section unless waived 
     by the Secretary, shall be used for purposes relating to low-
     income housing and in accordance with the public housing 
     agency plan.
       ``(g) Homeownership Assistance.--From amounts distributed 
     to a public housing agency under section 9, or from other 
     income earned by the public housing agency, the public 
     housing agency may provide assistance to public housing 
     residents to facilitate the ability of those residents to 
     purchase a principal residence, including a residence other 
     than a residence located in a public housing project.''.

[[Page S10038]]

       (b) Conforming Amendments.--The United States Housing Act 
     of 1937 (42 U.S.C. 1437 et seq.) is amended--
       (1) in section 8(y)(7)(A)--
       (A) by striking ``, (ii)'' and inserting ``, and (ii)''; 
     and
       (B) by striking ``, and (iii)'' and all that follows before 
     the period at the end; and
       (2) in section 25(l)(2)--
       (A) in the first sentence, by striking ``, consistent with 
     the objectives of the program under section 23,''; and
       (B) by striking the second sentence.
       (c) Savings Provision.--The amendments made by this section 
     do not affect any contract or other agreement entered into 
     under section 23 of the United States Housing Act of 1937, as 
     that section existed on the day before the date of enactment 
     of this Act.

     SEC. 118. REVITALIZING SEVERELY DISTRESSED PUBLIC HOUSING.

       Section 24 of the United States Housing Act of 1937 (42 
     U.S.C. 1437v) is amended to read as follows:

     ``SEC. 24. REVITALIZING SEVERELY DISTRESSED PUBLIC HOUSING.

       ``(a) In General.--To the extent provided in advance in 
     appropriations Acts, the Secretary may make grants to public 
     housing agencies for the purposes of--
       ``(1) enabling the demolition of obsolete public housing 
     projects or portions thereof;
       ``(2) revitalizing sites (including remaining public 
     housing units) on which such public housing projects are 
     located;
       ``(3) the provision of replacement housing, which will 
     avoid or lessen concentrations of very low-income families; 
     and
       ``(4) the provision of tenant-based assistance under 
     section 8 for use as replacement housing.
       ``(b) Competition.--The Secretary shall make grants under 
     this section on the basis of a competition, which shall be 
     based on such factors as--
       ``(1) the need for additional resources for addressing a 
     severely distressed public housing project;
       ``(2) the need for affordable housing in the community;
       ``(3) the supply of other housing available and affordable 
     to a family receiving tenant-based assistance under section 
     8; and
       ``(4) the local impact of the proposed revitalization 
     program.
       ``(c) Terms and Conditions.--The Secretary may impose such 
     terms and conditions on recipients of grants under this 
     section as the Secretary determines to be appropriate to 
     carry out the purposes of this section, except that such 
     terms and conditions shall be similar to the terms and 
     conditions of either--
       ``(1) the urban revitalization demonstration program 
     authorized under the Departments of Veterans Affairs and 
     Housing and Urban Development and Independent Agencies 
     Appropriations Acts; or
       ``(2) section 24 of the United States Housing Act of 1937, 
     as such section existed before the date of enactment of the 
     Public Housing Reform and Responsibility Act of 1997.
       ``(d) Alternative Management.--The Secretary may require 
     any recipient of a grant under this section to make 
     arrangements with an entity other than the public housing 
     agency to carry out the purposes for which the grant was 
     awarded, if the Secretary determines that such action is 
     necessary for the timely and effective achievement of the 
     purposes for which the grant was awarded.
       ``(e) Sunset.--No grant may be made under this section on 
     or after October 1, 1999.''.

     SEC. 119. MIXED-FINANCE AND MIXED-OWNERSHIP PROJECTS.

       (a) In General.--Title I of the United States Housing Act 
     of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at the 
     end the following:

     ``SEC. 30. MIXED-FINANCE AND MIXED-OWNERSHIP PROJECTS.

       ``(a) In General.--A public housing agency may own, 
     operate, assist, or otherwise participate in 1 or more mixed-
     finance projects in accordance with this section.
       ``(b) Requirements.--
       ``(1) Mixed-finance project.--In this section, the term 
     `mixed-finance project' means a project that meets the 
     requirements of paragraph (2) and that is occupied both by 1 
     or more very low-income families and by 1 or more families 
     that are not very low-income families.
       ``(2) Structure of projects.--Each mixed-finance project 
     shall be developed--
       ``(A) in a manner that ensures that units are made 
     available in the project, by master contract, individual 
     lease, or equity interest for occupancy by eligible families 
     identified by the public housing agency for a period of not 
     less than 20 years;
       ``(B) in a manner that ensures that the number of public 
     housing units bears approximately the same proportion to the 
     total number of units in the mixed-finance project as the 
     value of the total financial commitment provided by the 
     public housing agency bears to the value of the total 
     financial commitment in the project, or shall not be less 
     than the number of units that could have been developed under 
     the conventional public housing program with the assistance; 
     and
       ``(C) in accordance with such other requirements as the 
     Secretary may prescribe by regulation.
       ``(3) Types of projects.--The term `mixed-finance project' 
     includes a project that is developed--
       ``(A) by a public housing agency or by an entity affiliated 
     with a public housing agency;
       ``(B) 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, managing member, or otherwise participates in the 
     activities of that entity;
       ``(C) 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
       ``(D) in accordance with such other terms and conditions as 
     the Secretary may prescribe by regulation.
       ``(c) Taxation.--
       ``(1) In general.--A public housing agency may elect to 
     have all public housing units in a mixed-finance project 
     subject to local real estate taxes, except that such units 
     shall be eligible at the discretion of the public housing 
     agency for the taxing requirements under section 6(d).
       ``(2) Low-income housing tax credit.--With respect to any 
     unit in a mixed-finance project 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 may be set at levels not to exceed the amounts 
     allowable under that section.
       ``(d) Restriction.--No assistance provided under section 9 
     shall be used by a public housing agency in direct support of 
     any unit rented to a family that is not a low-income family.
       ``(e) Effect of Certain Contract Terms.--If an entity that 
     owns or operates a mixed-finance project under this section 
     enters into a contract with a public housing agency, the 
     terms of which obligate the entity to operate and maintain a 
     specified number of units in the project as public housing 
     units in accordance with the requirements of this Act for the 
     period required by law, such contractual terms may provide 
     that, if, as a result of a reduction in appropriations under 
     section 9, or any other change in applicable law, the public 
     housing agency is unable to fulfill its contractual 
     obligations with respect to those public housing units, that 
     entity may deviate, under procedures and requirements 
     developed through regulations by the Secretary, from 
     otherwise applicable restrictions under this Act regarding 
     rents, income eligibility, and other areas of public housing 
     management with respect to a portion or all of those public 
     housing units, to the extent necessary to preserve the 
     viability of those units while maintaining the low-income 
     character of the units to the maximum extent practicable.''.
       (b) Regulations.--The Secretary shall issue such 
     regulations as may be necessary to promote the development of 
     mixed-finance projects, as that term is defined in section 30 
     of the United States Housing Act of 1937 (as added by this 
     Act).

     SEC. 120. CONVERSION OF DISTRESSED PUBLIC HOUSING TO TENANT-
                   BASED ASSISTANCE.

       (a) In General.--Title I of the United States Housing Act 
     of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at the 
     end the following:

     ``SEC. 31. CONVERSION OF DISTRESSED PUBLIC HOUSING TO TENANT-
                   BASED ASSISTANCE.

       ``(a) Identification of Units.--Each public housing agency 
     shall identify all public housing projects of the public 
     housing agency--
       ``(1) that are on the same or contiguous sites;
       ``(2) that the public housing agency determines to be 
     distressed, which determination shall be made in accordance 
     with guidelines established by the Secretary, which 
     guidelines shall be based on the criteria established in the 
     Final Report of the National Commission on Severely 
     Distressed Public Housing (August 1992);
       ``(3) identified as distressed housing under paragraph (2) 
     for which the public housing agency cannot assure the long-
     term viability as public housing through reasonable 
     modernization expenses, density reduction, achievement of a 
     broader range of family income, or other measures; and
       ``(4) for which the estimated cost, during the remaining 
     useful life of the project, of continued operation and 
     modernization as public housing exceeds the estimated cost, 
     during the remaining useful life of the project, of providing 
     tenant-based assistance under section 8 for all families in 
     occupancy, based on appropriate indicators of cost (such as 
     the percentage of total development costs required for 
     modernization).
       ``(b) Consultation.--Each public housing agency shall 
     consult with the appropriate public housing residents and the 
     appropriate unit of general local government in identifying 
     any public housing projects under subsection (a).
       ``(c) Removal of Units From the Inventories of Public 
     Housing Agencies.--
       ``(1) In general.--
       ``(A) Development of plan.--Each public housing agency 
     shall develop and, to the extent provided in advance in 
     appropriations Acts, carry out a 5-year plan in conjunction 
     with the Secretary for the removal of public housing units 
     identified under subsection (a) from the inventory of the 
     public housing agency and the annual contributions contract.
       ``(B) Approval of plan.--The plan required under 
     subparagraph (A) shall--
       ``(i) be included as part of the public housing agency 
     plan;
       ``(ii) be certified by the relevant local official to be in 
     accordance with the comprehensive housing affordability 
     strategy under title I of the Housing and Community 
     Development Act of 1992; and
       ``(iii) include a description of any disposition and 
     demolition plan for the public housing units.
       ``(2) Extensions.--The Secretary may extend the 5-year 
     deadline described in paragraph (1) by not more than an 
     additional 5 years if the Secretary makes a determination 
     that the deadline is impracticable.
       ``(d) Conversion to Tenant-Based Assistance.--
       ``(1) In general.--To the extent approved in advance in 
     appropriations Acts, the Secretary shall make authority 
     available to a public housing agency to provide assistance 
     under this Act to families residing in any public housing

[[Page S10039]]

     project that is removed from the inventory of the public 
     housing agency and the annual contributions contract pursuant 
     to this section.
       ``(2) Plan requirements.--Each plan under subsection (c) 
     shall require the agency--
       ``(A) to notify each family residing in the public housing 
     project, consistent with any guidelines issued by the 
     Secretary governing such notifications, that--
       ``(i) the public housing project will be removed from the 
     inventory of the public housing agency;
       ``(ii) the demolition will not commence until each resident 
     residing in the public housing project is relocated; and
       ``(iii) each family displaced by such action will be 
     offered comparable housing--

       ``(I) that meets housing quality standards; and
       ``(II) which may include--

       ``(aa) tenant-based assistance;
       ``(bb) project-based assistance; or
       ``(cc) occupancy in a unit operated or assisted by the 
     public housing agency at a rental rate paid by the family 
     that is comparable to the rental rate applicable to the unit 
     from which the family is vacated;
       ``(B) to provide any necessary counseling for families 
     displaced by such action; and
       ``(C) to provide any actual and reasonable relocation 
     expenses for families displaced by such action.
       ``(e) Removal by Secretary.--The Secretary shall take 
     appropriate actions to ensure removal of any public housing 
     project identified under subsection (a) from the inventory of 
     a public housing agency, if the public housing agency fails 
     to adequately develop a plan under subsection (c) with 
     respect to that project, or fails to adequately implement 
     such plan in accordance with the terms of the plan.
       ``(f) Administration.--
       ``(1) In general.--The Secretary may require a public 
     housing agency to provide to the Secretary or to public 
     housing residents such information as the Secretary considers 
     to be necessary for the administration of this section.
       ``(2) Applicability of section 18.--Section 18 does not 
     apply to the demolition of public housing projects removed 
     from the inventory of the public housing agency under this 
     section.''.
       (b) Conforming Amendment.--Section 202 of the Departments 
     of Veterans Affairs and Housing and Urban Development, and 
     Independent Agencies Appropriations Act, 1996 (42 U.S.C. 
     1437l note) is repealed.

     SEC. 121. PUBLIC HOUSING MORTGAGES AND SECURITY INTERESTS.

       Title I of the United States Housing Act of 1937 (42 U.S.C. 
     1437 et seq.) is amended by adding at the end the following:

     ``SEC. 32. PUBLIC HOUSING MORTGAGES AND SECURITY INTERESTS.

       ``(a) General Authorization.--The Secretary may, upon such 
     terms and conditions as the Secretary may prescribe, 
     authorize a public housing agency to mortgage or otherwise 
     grant a security interest in any public housing project or 
     other property of the public housing agency.
       ``(b) Terms and Conditions.--
       ``(1) Criteria for approval.--In making any authorization 
     under subsection (a), the Secretary may consider--
       ``(A) the ability of the public housing agency to use the 
     proceeds of the mortgage or security interest for low-income 
     housing uses;
       ``(B) the ability of the public housing agency to make 
     payments on the mortgage or security interest; and
       ``(C) such other criteria as the Secretary may specify.
       ``(2) Terms and conditions of mortgages and security 
     interests obtained.--Each mortgage or security interest 
     granted under this section shall be--
       ``(A) for a term that--
       ``(i) is consistent with the terms of private loans in the 
     market area in which the public housing project or property 
     at issue is located; and
       ``(ii) does not exceed 30 years; and
       ``(B) subject to conditions that are consistent with the 
     conditions to which private loans in the market area in which 
     the subject project or other property is located are subject.
       ``(3) No federal liability.--No action taken under this 
     section shall result in any liability to the Federal 
     Government.''.

     SEC. 122. LINKING SERVICES TO PUBLIC HOUSING RESIDENTS.

       Title I of the United States Housing Act of 1937 (42 U.S.C. 
     1437 et seq.) is amended by adding at the end the following:

     ``SEC. 33. SERVICES FOR PUBLIC HOUSING RESIDENTS.

       ``(a) In General.--To the extent provided in advance in 
     appropriations Acts, the Secretary may make grants to public 
     housing agencies on behalf of public housing residents, or 
     directly to resident management corporations, resident 
     councils, or resident organizations (including nonprofit 
     entities supported by residents), for the purposes of 
     providing a program of supportive services and resident 
     empowerment activities to assist public housing residents in 
     becoming economically self-sufficient.
       ``(b) Eligible Activities.--Grantees under this section may 
     use such amounts only for activities on or near the property 
     of the public housing agency or public housing project that 
     are designed to promote the self-sufficiency of public 
     housing residents, including activities relating to--
       ``(1) physical improvements to a public housing project in 
     order to provide space for supportive services for residents;
       ``(2) the provision of service coordinators;
       ``(3) 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;
       ``(4) 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;
       ``(5) resident management activities and resident 
     participation activities; and
       ``(6) other activities designed to improve the economic 
     self-sufficiency of residents.
       ``(c) Funding Distribution.--
       ``(1) In general.--Except for amounts provided under 
     subsection (d), the Secretary may distribute amounts made 
     available under this section on the basis of a competition or 
     a formula, as appropriate.
       ``(2) Factors for distribution.--Factors for distribution 
     under paragraph (1) shall include--
       ``(A) the demonstrated capacity of the applicant to carry 
     out a program of supportive services or resident empowerment 
     activities;
       ``(B) the ability of the applicant to leverage additional 
     resources for the provision of services; and
       ``(C) the extent to which the grant will result in a high 
     quality program of supportive services or resident 
     empowerment activities.
       ``(d) Funding for Resident Councils.--Of amounts 
     appropriated for activities under this section, not less than 
     $25,000,000 shall be provided directly to resident councils, 
     resident organizations, and resident management 
     corporations.''.

     SEC. 123. PROHIBITION ON USE OF AMOUNTS.

       Title I of the United States Housing Act of 1937 (42 U.S.C. 
     1437 et seq.) is amended by adding at the end the following:

     ``SEC. 34. PROHIBITION ON USE OF AMOUNTS.

       ``None of the amounts made available to the Department of 
     Housing and Urban Development to carry out this Act, that are 
     obligated to State or local governments, public housing 
     agencies, housing finance agencies, or other public or quasi-
     public housing agencies, may be used to indemnify contractors 
     or subcontractors of the government or agency against costs 
     associated with judgments of infringement of intellectual 
     property rights.''.

     SEC. 124. PET OWNERSHIP.

       Title I of the United States Housing Act of 1937 (42 U.S.C. 
     1437 et seq.) is amended by adding at the end the following:

     ``SEC. 35. PET OWNERSHIP IN FEDERALLY ASSISTED RENTAL 
                   HOUSING.

       ``(a) Ownership Conditions.--
       ``(1) In general.--A resident of a dwelling unit in 
     federally assisted rental housing may own 1 or more common 
     household pets or have 1 or more common household pets 
     present in the dwelling unit of such resident, subject to the 
     reasonable requirements of the owner of the federally 
     assisted rental housing, if the resident maintains each pet 
     responsibly and in accordance with applicable State and local 
     public health, animal control, and animal anti-cruelty laws 
     and regulations.
       ``(2) Requirements.--The reasonable requirements described 
     in paragraph (1) may include requiring payment of a nominal 
     fee, a pet deposit, or both, by residents owning or having 
     pets present, to cover the reasonable operating costs to the 
     project relating to the presence of pets and to establish an 
     escrow account for additional costs not otherwise covered, 
     respectively.
       ``(b) Prohibition Against Discrimination.--No owner of 
     federally assisted rental housing may restrict or 
     discriminate against any person in connection with admission 
     to, or continued occupancy of, such housing by reason of the 
     ownership of common household pets by, or the presence of 
     such pets in the dwelling unit of, such person.
       ``(c) Definitions.--In this section:
       ``(1) Federally assisted rental housing.--The term 
     `federally assisted rental housing' means any public housing 
     project or any rental housing receiving project-based 
     assistance under--
       ``(A) the new construction and substantial rehabilitation 
     program under section 8(b)(2) of this Act (as in effect 
     before October 1, 1983);
       ``(B) the property disposition program under section 8(b);
       ``(C) the moderate rehabilitation program under section 
     8(e)(2) of this Act (as it existed prior to October 1, 1991);
       ``(D) section 23 of this Act (as in effect before January 
     1, 1975);
       ``(E) the rent supplement program under section 101 of the 
     Housing and Urban Development Act of 1965;
       ``(F) section 8 of this Act, following conversion from 
     assistance under section 101 of the Housing and Urban 
     Development Act of 1965; or
       ``(G) loan management assistance under section 8 of this 
     Act.
       ``(2) Owner.--The term `owner' means, with respect to 
     federally assisted rental 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 (including a manager of such housing having 
     such right).
       ``(d) Regulations.--This section shall take effect upon the 
     date of the effectiveness of regulations issued by the 
     Secretary to carry out this section. Such regulations shall 
     be issued after notice and opportunity for public comment in 
     accordance with the procedure under section 553 of title 5, 
     United States Code, applicable to substantive rules 
     (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of 
     such section).''.
                 TITLE II--SECTION 8 RENTAL ASSISTANCE

     SEC. 201. MERGER OF THE CERTIFICATE AND VOUCHER PROGRAMS.

       (a) In General.--Section 8(o) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437f(o)) is amended to read as 
     follows:

[[Page S10040]]

       ``(o) Voucher Program.--
       ``(1) Payment standard.--
       ``(A) In general.--The Secretary may provide assistance to 
     public housing agencies for tenant-based assistance using a 
     payment standard established in accordance with subparagraph 
     (B). The payment standard shall be used to determine the 
     monthly assistance that may be paid for any family, as 
     provided in paragraph (2).
       ``(B) Establishment of payment standard.--Except as 
     provided under subparagraph (D), the payment standard shall 
     not exceed 110 percent of the fair market rental established 
     under subsection (c) and shall be not less than 90 percent of 
     that fair market rental.
       ``(C) Set-aside.--The Secretary may set aside not more than 
     5 percent of the budget authority available under this 
     subsection as an adjustment pool. The Secretary shall use 
     amounts in the adjustment pool to make adjusted payments to 
     public housing agencies under subparagraph (A), to ensure 
     continued affordability, if the Secretary determines that 
     additional assistance for such purpose is necessary, based on 
     documentation submitted by a public housing agency.
       ``(D) Approval.--The Secretary may require a public housing 
     agency to submit the payment standard of the public housing 
     agency to the Secretary for approval, if the payment standard 
     is less than 90 percent of the fair market rent or exceeds 
     110 percent of the fair market rent.
       ``(E) Review.--The Secretary--
       ``(i) shall monitor rent burdens and review any payment 
     standard that results in a significant percentage of the 
     families occupying units of any size paying more than 30 
     percent of adjusted income for rent; and
       ``(ii) may require a public housing agency to modify the 
     payment standard of the public housing agency based on the 
     results of that review.
       ``(2) Amount of monthly assistance payment.--
       ``(A) Families receiving tenant-based assistance; rent does 
     not exceed payment standard.--For a family receiving tenant-
     based assistance under this title, if the rent for that 
     family (including the amount allowed for tenant-paid 
     utilities) does not exceed the payment standard established 
     under paragraph (1), the monthly assistance payment to that 
     family shall be equal to the amount by which the rent exceeds 
     the greatest of the following amounts, rounded to the nearest 
     dollar:
       ``(i) Thirty percent of the monthly adjusted income of the 
     family.
       ``(ii) Ten percent of the monthly income of the family.
       ``(iii) If the family is receiving payments for welfare 
     assistance from a public agency and a part of those payments, 
     adjusted in accordance with the actual housing costs of the 
     family, is specifically designated by that agency to meet the 
     housing costs of the family, the portion of those payments 
     that is so designated.
       ``(B) Families receiving tenant-based assistance; rent 
     exceeds payment standard.--For a family receiving tenant-
     based assistance under this title, if the rent for that 
     family (including the amount allowed for tenant-paid 
     utilities) exceeds the payment standard established under 
     paragraph (1), the monthly assistance payment to that family 
     shall be equal to the amount by which the applicable payment 
     standard exceeds the greatest of the following amounts, 
     rounded to the nearest dollar:
       ``(i) Thirty percent of the monthly adjusted income of the 
     family.
       ``(ii) Ten percent of the monthly income of the family.
       ``(iii) If the family is receiving payments for welfare 
     assistance from a public agency and a part of those payments, 
     adjusted in accordance with the actual housing costs of the 
     family, is specifically designated by that agency to meet the 
     housing costs of the family, the portion of those payments 
     that is so designated.
       ``(C) Families receiving project-based assistance.--For a 
     family receiving project-based assistance under this title, 
     the rent that the family is required to pay shall be 
     determined in accordance with section 3(a)(1), and the amount 
     of the housing assistance payment shall be determined in 
     accordance with subsection (c)(3) of this section.
       ``(3) Forty percent limit.--At the time a family initially 
     receives tenant-based assistance under this title with 
     respect to any dwelling unit, the total amount that a family 
     may be required to pay for rent may not exceed 40 percent of 
     the monthly adjusted income of the family.
       ``(4) Eligible families.--At the time a family initially 
     receives assistance under this subsection, a family shall 
     qualify as--
       ``(A) a very low-income family;
       ``(B) a family previously assisted under this title;
       ``(C) a low-income family that meets eligibility criteria 
     specified by the public housing agency;
       ``(D) a family that qualifies to receive a voucher in 
     connection with a homeownership program approved under title 
     IV of the Cranston-Gonzalez National Affordable Housing Act; 
     or
       ``(E) a family that qualifies to receive a voucher under 
     section 223 or 226 of the Low-Income Housing Preservation and 
     Resident Homeownership Act of 1990.
       ``(5) Annual review of family income.--Each public housing 
     agency shall, not less frequently than annually, conduct a 
     review of the family income of each family receiving 
     assistance under this subsection.
       ``(6) Selection of families.--
       ``(A) In general.--Each public housing agency may establish 
     local preferences consistent with the public housing agency 
     plan submitted by the public housing agency under section 5A.
       ``(B) Selection of tenants.--The selection of tenants shall 
     be made by the owner of the dwelling unit, subject to the 
     annual contributions contract between the Secretary and the 
     public housing agency.
       ``(7) Lease.--Each housing assistance payment contract 
     entered into by the public housing agency and the owner of a 
     dwelling unit--
       ``(A) shall provide that the screening and selection of 
     families for those units shall be the function of the owner;
       ``(B) shall provide that the lease between the tenant and 
     the owner shall be for a term of not less than 1 year, except 
     that the public housing agency may approve a shorter term for 
     an initial lease between the tenant and the dwelling unit 
     owner if the public housing agency determines that such 
     shorter term would improve housing opportunities for the 
     tenant and if such shorter term is considered to be an 
     acceptable local market practice;
       ``(C) shall provide that the dwelling unit owner shall 
     offer leases to tenants assisted under this subsection that--
       ``(i) are in a standard form used in the locality by the 
     dwelling unit owner; and
       ``(ii) contain terms and conditions that--

       ``(I) are consistent with State and local law; and
       ``(II) apply generally to tenants in the property who are 
     not assisted under this section;

       ``(D) shall provide that the dwelling unit owner may not 
     terminate the tenancy of any person assisted under this 
     subsection during the term of a lease that meets the 
     requirements of this section unless the owner determines, on 
     the same basis and in the same manner as would apply to a 
     tenant in the property who does not receive assistance under 
     this subsection, that--
       ``(i) the tenant has committed a serious or repeated 
     violation of the terms and conditions of the lease;
       ``(ii) the tenant has violated applicable Federal, State, 
     or local law; or
       ``(iii) other good cause for termination of the tenancy 
     exists;
       ``(E) shall provide that any termination of tenancy under 
     this subsection shall be preceded by the provision of written 
     notice by the owner to the tenant specifying the grounds for 
     that action, and any relief shall be consistent with 
     applicable State and local law; and
       ``(F) may include any addenda appropriate to set forth the 
     provisions of this title.
       ``(8) Inspection of units by public housing agencies.--
       ``(A) In general.--Except as provided in subparagraph (B), 
     for each dwelling unit for which a housing assistance payment 
     contract is established under this subsection, the public 
     housing agency shall--
       ``(i) inspect the unit before any assistance payment is 
     made to determine whether the dwelling unit meets housing 
     quality standards for decent safe housing established--

       ``(I) by the Secretary for purposes of this subsection; or
       ``(II) by local housing codes or by codes adopted by public 
     housing agencies that--

       ``(aa) meet or exceed housing quality standards; and
       ``(bb) do not severely restrict housing choice; and
       ``(ii) make not less than annual inspections during the 
     contract term.
       ``(B) Leasing of units owned by public housing agency.--If 
     an eligible family assisted under this subsection leases a 
     dwelling unit (other than public housing) that is owned by a 
     public housing agency administering assistance under this 
     subsection, the Secretary shall require the unit of general 
     local government, or another entity approved by the 
     Secretary, to make inspections and rent determinations as 
     required by this paragraph.
       ``(9) Vacated units.--If an assisted family vacates a 
     dwelling unit for which rental assistance is provided under a 
     housing assistance contract before the expiration of the term 
     of the lease for the unit, rental assistance pursuant to such 
     contract may not be provided for the unit after the month 
     during which the unit was vacated.
       ``(10) Rent.--
       ``(A) Reasonable market rent.--The rent for dwelling units 
     for which a housing assistance payment contract is 
     established under this subsection shall be reasonable in 
     comparison with rents charged for comparable dwelling units 
     in the private, unassisted, local market, or for comparable 
     dwelling units that are in the assisted, local market.
       ``(B) Negotiated rent.--A public housing agency shall, at 
     the request of a family receiving tenant-based assistance 
     under this subsection, assist that family in negotiating a 
     reasonable rent with a dwelling unit owner. A public housing 
     agency shall review the rent for a unit under consideration 
     by the family (and all rent increases for units under lease 
     by the family) to determine whether the rent (or rent 
     increase) requested by the owner is reasonable. If a public 
     housing agency determines that the rent (or rent increase) 
     for a dwelling unit is not reasonable, the public housing 
     agency shall not make housing assistance payments to the 
     owner under this subsection with respect to that unit.
       ``(C) Units exempt from local rent control.--If a dwelling 
     unit for which a housing assistance payment contract is 
     established under this subsection is exempt from local rent 
     control provisions during the term of that contract, the rent 
     for that unit shall be reasonable in comparison with other 
     units in the market area that are exempt from local rent 
     control provisions.
       ``(D) Timely payments.--Each public housing agency shall 
     make timely payment of any amounts due to a dwelling unit 
     owner under this subsection. The housing assistance payment 
     contract between the owner and the public housing agency may 
     provide for penalties for the late payment of amounts due 
     under the contract, which shall be imposed on the public 
     housing agency in accordance with generally accepted 
     practices in the local housing market.

[[Page S10041]]

       ``(E) Penalties.--Unless otherwise authorized by the 
     Secretary, each public housing agency shall pay any penalties 
     from administrative fees collected by the public housing 
     agency, except that no penalty shall be imposed if the late 
     payment is due to factors that the Secretary determines are 
     beyond the control of the public housing agency.
       ``(11) Manufactured housing.--
       ``(A) In general.--A public housing agency may make 
     assistance payments in accordance with this subsection on 
     behalf of a family that utilizes a manufactured home as a 
     principal place of residence. Such payments may be made for 
     the rental of the real property on which the manufactured 
     home owned by any such family is located.
       ``(B) Rent calculation.--
       ``(i) Charges included.--For assistance pursuant to this 
     paragraph, the rent for the space on which a manufactured 
     home is located and with respect to which assistance payments 
     are to be made shall include maintenance and management 
     charges and tenant-paid utilities.
       ``(ii) Payment standard.--The public housing agency shall 
     establish a payment standard for the purpose of determining 
     the monthly assistance that may be paid for any family under 
     this paragraph. The payment standard may not exceed an amount 
     approved or established by the Secretary.
       ``(iii) Monthly assistance payment.--The monthly assistance 
     payment under this paragraph shall be determined in 
     accordance with paragraph (2).
       ``(12) Contract for assistance payments.--
       ``(A) In general.--If the Secretary enters into an annual 
     contributions contract under this subsection with a public 
     housing agency pursuant to which the public housing agency 
     will enter into a housing assistance payment contract with 
     respect to an existing structure under this subsection--
       ``(i) the housing assistance payment contract may not be 
     attached to the structure unless the owner agrees to 
     rehabilitate or newly construct the structure other than with 
     assistance under this Act, and otherwise complies with this 
     section; and
       ``(ii) the public housing agency may approve a housing 
     assistance payment contract for such existing structure for 
     not more than 15 percent of the funding available for tenant-
     based assistance administered by the public housing agency 
     under this section.
       ``(B) Extension of contract term.--In the case of a housing 
     assistance payment contract that applies to a structure under 
     this paragraph, a public housing agency may enter into a 
     contract with the owner, contingent upon the future 
     availability of appropriated funds for the purpose of 
     renewing expiring contracts for assistance payments, as 
     provided in appropriations Acts, to extend the term of the 
     underlying housing assistance payment contract for such 
     period as the Secretary determines to be appropriate to 
     achieve long-term affordability of the housing. The contract 
     shall obligate the owner to have such extensions of the 
     underlying housing assistance payment contract accepted by 
     the owner and the successors in interest of the owner.
       ``(C) Rent calculation.--For project-based assistance under 
     this paragraph, housing assistance payment contracts shall 
     establish rents and provide for rent adjustments in 
     accordance with subsection (c).
       ``(D) Adjusted rents.--With respect to rents adjusted under 
     this paragraph--
       ``(i) the adjusted rent for any unit shall be reasonable in 
     comparison with rents charged for comparable dwelling units 
     in the private, unassisted, local market, or for comparable 
     dwelling units that are in the assisted local market; and
       ``(ii) the provisions of subsection (c)(2)(C) do not apply.
       ``(13) Inapplicability to tenant-based assistance.--
     Subsection (c) does not apply to tenant-based assistance 
     under this subsection.
       ``(14) Homeownership option.--
       ``(A) In general.--A public housing agency providing 
     assistance under this subsection may, at the option of the 
     agency, provide assistance for homeownership under subsection 
     (y).
       ``(B) Alternative administration.--A public housing agency 
     may contract with a nonprofit organization to administer a 
     homeownership program under subsection (y).
       ``(15) Rental vouchers for witness relocation.--Of amounts 
     made available for assistance under this subsection in each 
     fiscal year, the Secretary, in consultation with the 
     Inspector General, shall make available such sums as may be 
     necessary for the relocation of witnesses in connection with 
     efforts to combat crime in public and assisted housing 
     pursuant to requests from law enforcement or prosecution 
     agencies.''.
       (b) Conforming Amendment.--Section 8(f)(6) of the United 
     States Housing Act (42 U.S.C. 1437f(f)(6)) is amended by 
     striking ``(d)(2)'' and inserting ``(o)(12)''.

     SEC. 202. REPEAL OF FEDERAL PREFERENCES.

       (a) Section 8 Existing and Moderate Rehabilitation.--
     Section 8(d)(1)(A) of the United States Housing Act of 1937 
     (42 U.S.C. 1437f(d)(1)(A)) is amended to read as follows:
       ``(A) the selection of tenants shall be the function of the 
     owner, subject to the annual contributions contract between 
     the Secretary and the agency, except that with respect to the 
     certificate and moderate rehabilitation programs only, for 
     the purpose of selecting families to be assisted, the public 
     housing agency may establish local preferences, consistent 
     with the public housing agency plan submitted by the public 
     housing agency under section 5A;''.
       (b) Section 8 New Construction and Substantial 
     Rehabilitation.--
       (1) Repeal.--Section 545(c) of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 1437f note) is 
     amended to read as follows:
       ``(c) [Reserved.]''.
       (2) Prohibition.--The provisions of section 8(e)(2) of the 
     United States Housing Act of 1937, as in existence on the day 
     before October 1, 1983, that require tenant selection 
     preferences shall not apply with respect to--
       (A) housing constructed or substantially rehabilitated 
     pursuant to assistance provided under section 8(b)(2) of the 
     United States Housing Act of 1937, as in existence on the day 
     before October 1, 1983; or
       (B) projects financed under section 202 of the Housing Act 
     of 1959, as in existence on the day before the date of 
     enactment of the Cranston-Gonzalez National Affordable 
     Housing Act.
       (c) Rent Supplements.--Section 101(k) of the Housing and 
     Urban Development Act of 1965 (12 U.S.C. 1701s(k)) is amended 
     to read as follows:
       ``(k) [Reserved.]''.
       (d) Conforming Amendments.--
       (1) United states housing act of 1937.--The United States 
     Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended--
       (A) in section 6(o), by striking ``preference rules 
     specified in'' and inserting ``written selection criteria 
     established pursuant to'';
       (B) in section 8(d)(2)(A), by striking the last sentence; 
     and
       (C) in section 8(d)(2)(H), by striking ``Notwithstanding 
     subsection (d)(1)(A)(i), an'' and inserting ``An''.
       (2) Cranston-gonzalez national affordable housing act.--The 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12704 et seq.) is amended--
       (A) in section 455(a)(2)(D)(iii), by striking ``would 
     qualify for a preference under'' and inserting ``meet the 
     written selection criteria established pursuant to''; and
       (B) in section 522(f)(6)(B), by striking ``any preferences 
     for such assistance under section 8(d)(1)(A)(i)'' and 
     inserting ``the written selection criteria established 
     pursuant to section 8(d)(1)(A)''.
       (3) Low-income housing preservation and resident 
     homeownership act of 1990.--The second sentence of section 
     226(b)(6)(B) of the Low-Income Housing Preservation and 
     Resident Homeownership Act of 1990 (12 U.S.C. 4116(b)(6)(B)) 
     is amended by striking ``requirement for giving preferences 
     to certain categories of eligible families under'' and 
     inserting ``written selection criteria established pursuant 
     to''.
       (4) Housing and community development act of 1992.--Section 
     655 of the Housing and Community Development Act of 1992 (42 
     U.S.C. 13615) is amended by striking ``preferences for 
     occupancy'' and all that follows before the period at the end 
     and inserting ``selection criteria established by the owner 
     to elderly families according to such written selection 
     criteria, and to near-elderly families according to such 
     written selection criteria, respectively''.
       (5) References in other law.--Any reference in any Federal 
     law other than any provision of any law amended by paragraphs 
     (1) through (5) of this subsection or section 201 to the 
     preferences for assistance under section 8(d)(1)(A)(i) or 
     8(o)(3)(B) of the United States Housing Act of 1937, as those 
     sections existed on the day before the effective date of this 
     title, shall be considered to refer to the written selection 
     criteria established pursuant to section 8(d)(1)(A) or 
     8(o)(6)(A), respectively, of the United States Housing Act of 
     1937, as amended by this subsection and section 201 of this 
     Act.

     SEC. 203. PORTABILITY.

       Section 8(r) of the United States Housing Act of 1937 (42 
     U.S.C. 1437f(r)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``assisted under subsection (b) or (o)'' 
     and inserting ``receiving tenant-based assistance under 
     subsection (o)''; and
       (B) by striking ``the same State'' and all that follows 
     before the semicolon and inserting ``any area in which a 
     program is being administered under this section'';
       (2) in paragraph (2), by striking the last sentence;
       (3) in paragraph (3)--
       (A) by striking ``(b) or''; and
       (B) by adding at the end the following: ``The Secretary 
     shall establish procedures for the compensation of public 
     housing agencies that issue vouchers to families that move 
     into or out of the jurisdiction of the public housing agency 
     under portability procedures. The Secretary may reserve 
     amounts available for assistance under subsection (o) to 
     compensate those public housing agencies.''; and
       (4) by adding at the end the following:
       ``(5) Lease violations.--A family may not receive a voucher 
     from a public housing agency and move to another jurisdiction 
     under the tenant-based assistance program if the family has 
     moved out of the assisted dwelling unit of the family in 
     violation of a lease.''.

     SEC. 204. LEASING TO VOUCHER HOLDERS.

       Section 8(t) of the United States Housing Act of 1937 (42 
     U.S.C. 1437f(t)) is amended to read as follows:
       ``(t) [Reserved.]''.

     SEC. 205. HOMEOWNERSHIP OPTION.

       Section 8(y) of the United States Housing Act of 1937 (42 
     U.S.C. 1437f(y)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``A family receiving'' and all that follows 
     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 1 or more members of the family, and will be 
     occupied by the family, if the family'';
       (B) in subparagraph (A), by inserting before the semicolon 
     ``, or owns or is acquiring shares in a cooperative''; and
       (C) in subparagraph (B), by striking ``(i) participates'' 
     and all that follows through ``(ii) demonstrates'' and 
     inserting ``demonstrates'';

[[Page S10042]]

       (2) by striking paragraph (2) and inserting the following:
       ``(2) Determination of amount of assistance.--
       ``(A) Monthly expenses do not exceed payment standard.--If 
     the monthly homeownership expenses, as determined in 
     accordance with requirements established by the Secretary, do 
     not exceed the payment standard, the monthly assistance 
     payment shall be the amount by which the homeownership 
     expenses exceed the highest of the following amounts, rounded 
     to the nearest dollar:
       ``(i) Thirty percent of the monthly adjusted income of the 
     family.
       ``(ii) Ten percent of the monthly income of the family.
       ``(iii) If the family is receiving payments for welfare 
     assistance from a public agency, and a portion of those 
     payments, adjusted in accordance with the actual housing 
     costs of the family, is specifically designated by that 
     agency to meet the housing costs of the family, the portion 
     of those payments that is so designated.
       ``(B) Monthly expenses exceed payment standard.--If the 
     monthly homeownership expenses, as determined in accordance 
     with requirements established by the Secretary, exceed the 
     payment standard, the monthly assistance payment shall be the 
     amount by which the applicable payment standard exceeds the 
     highest of the following amounts, rounded to the nearest 
     dollar:
       ``(i) Thirty percent of the monthly adjusted income of the 
     family.
       ``(ii) Ten percent of the monthly income of the family.
       ``(iii) If the family is receiving payments for welfare 
     assistance from a public agency and a part of those payments, 
     adjusted in accordance with the actual housing costs of the 
     family, is specifically designated by that agency to meet the 
     housing costs of the family, the portion of those payments 
     that is so designated.'';
       (4) by striking paragraphs (3) through (5); and
       (5) by redesignating paragraphs (6) through (8) as 
     paragraphs (3) through (5), respectively.

     SEC. 206. LAW ENFORCEMENT AND SECURITY PERSONNEL IN PUBLIC 
                   HOUSING.

       Section 8 of the United States Housing Act of 1937 (42 
     U.S.C. 1437f) is amended by adding at the end the following:
       ``(cc) Law Enforcement and Security Personnel.--
     Notwithstanding any other provision of this Act, an owner may 
     admit, and assistance may be provided to, police officers and 
     other security personnel (who are not otherwise eligible for 
     assistance under the Act), in the case of assistance attached 
     to a structure. In addition, the Secretary may permit such 
     special rent requirements to be accompanied by other terms 
     and conditions of occupancy that the Secretary may consider 
     appropriate and may require the owner to submit an 
     application for special rent requirements which shall include 
     such information as the Secretary, in the discretion of the 
     Secretary, determines to be necessary.''.

     SEC. 207. TECHNICAL AND CONFORMING AMENDMENTS.

       (a) Lower Income Housing Assistance.--Section 8 of the 
     United States Housing Act of 1937 (42 U.S.C. 1437f) is 
     amended--
       (1) in subsection (a), by striking the second and third 
     sentences;
       (2) in subsection (b)--
       (A) in the subsection heading, by striking ``Rental 
     Certificates and''; and
       (B) in the first undesignated paragraph--
       (i) by striking ``The Secretary'' and inserting the 
     following:
       ``(1) In general.--The Secretary''; and
       (ii) by striking the second sentence;
       (3) in subsection (c)--
       (A) in paragraph (3)--
       (i) by striking ``(A)''; and
       (ii) by striking subparagraph (B);
       (B) in the first sentence of paragraph (4), by striking 
     ``or by a family that qualifies to receive'' and all that 
     follows through ``1990'';
       (C) by striking paragraph (5) and redesignating paragraph 
     (6) as paragraph (5);
       (D) by striking paragraph (7) and redesignating paragraphs 
     (8) through (10) as paragraphs (6) through (8), respectively;
       (E) effective on October 1, 1997, in paragraph (7), as 
     redesignated, by striking ``housing certificates or vouchers 
     under subsection (b) or'' and inserting ``a voucher under 
     subsection''; and
       (F) in paragraph (8), as redesignated, by striking ``(9)'' 
     and inserting ``(7)'';
       (4) in subsection (d)--
       (A) in paragraph (1)(B)(iii), by striking ``drug-related 
     criminal activity or or near such premises'' and inserting 
     ``violent or drug-related criminal activity on or off such 
     premises, or any activity resulting in a felony conviction'';
       (B) in paragraph (2)--
       (i) in subparagraph (A), by striking the third sentence and 
     all that follows through the end of the subparagraph; and
       (ii) by striking subparagraphs (B) through (E) and 
     redesignating subparagraphs (F) through (H) as subparagraphs 
     (B) through (D), respectively;
       (5) in subsection (f)--
       (A) in paragraph (6), by striking ``(d)(2)'' and inserting 
     ``(o)(11)''; and
       (B) in paragraph (7)--
       (i) by striking ``(b) or''; and
       (ii) by inserting before the period the following: ``and 
     that provides for the eligible family to select suitable 
     housing and to move to other suitable housing'';
       (6) by striking subsection (j) and inserting the following:
       ``(j) [Reserved.]'';
       (7) by striking subsection (n) and inserting the following:
       ``(n) [Reserved.]'';
       (8) in subsection (q)--
       (A) in the first sentence of paragraph (1), by striking 
     ``certificate and housing voucher programs under subsections 
     (b) and (o)'' and inserting ``voucher program under this 
     section'';
       (B) in paragraph (2)(A)(i), by striking ``certificate and 
     housing voucher programs under subsections (b) and (o)'' and 
     inserting ``voucher program under this section''; and
       (C) in paragraph (2)(B), by striking ``certificate and 
     housing voucher programs under subsections (b) and (o)'' and 
     inserting ``voucher program under this section'';
       (9) in subsection (u)--
       (A) in paragraph (2), by striking ``, certificates''; and
       (B) by striking ``certificates or'' each place that term 
     appears; and
       (10) in subsection (x)(2), by striking ``housing 
     certificate assistance'' and inserting ``tenant-based 
     assistance''.
       (b) Public Housing Homeownership and Management 
     Opportunities.--Section 21(b)(3) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437s(b)(3)) is amended--
       (1) in the first sentence, by striking ``(at the option of 
     the family) a certificate under section 8(b)(1) or a housing 
     voucher under section 8(o)'' and inserting ``tenant-based 
     assistance under section 8''; and
       (2) by striking the second sentence.
       (c) Documentation of Excessive Rent Burdens.--Section 
     550(b) of the Cranston-Gonzalez National Affordable Housing 
     Act (42 U.S.C. 1437f note) is amended--
       (1) in paragraph (1), by striking ``assisted under the 
     certificate and voucher programs established'' and inserting 
     ``receiving tenant-based assistance'';
       (2) in the first sentence of paragraph (2)--
       (A) by striking ``, for each of the certificate program and 
     the voucher program'' and inserting ``for the tenant-based 
     assistance under section 8''; and
       (B) by striking ``participating in the program'' and 
     inserting ``receiving tenant-based assistance''; and
       (3) in paragraph (3), by striking ``assistance under the 
     certificate or voucher program'' and inserting ``tenant-based 
     assistance under section 8 of the United States Housing Act 
     of 1937''.
       (d) Grants for Community Residences and Services.--Section 
     861(b)(1)(D) of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12910(b)(1)(D)) is amended by striking 
     ``certificates or vouchers'' and inserting ``assistance''.
       (e) Section 8 Certificates and Vouchers.--Section 931 of 
     the Cranston-Gonzalez National Affordable Housing Act (42 
     U.S.C. 1437c note) is amended by striking ``assistance under 
     the certificate and voucher programs under sections 8(b) and 
     (o) of such Act'' and inserting ``tenant-based assistance 
     under section 8 of the United States Housing Act of 1937''.
       (f) Assistance for Displaced Residents.--Section 223(a) of 
     the Housing and Community Development Act of 1987 (12 U.S.C. 
     4113(a)) is amended by striking ``assistance under the 
     certificate and voucher programs under sections 8(b) and 
     8(o)'' and inserting ``tenant-based assistance under section 
     8''.
       (g) Rural Housing Preservation Grants.--Section 533(a) of 
     the Housing Act of 1949 (42 U.S.C. 1490m(a)) is amended in 
     the second sentence by striking ``assistance payments as 
     provided by section 8(o)'' and inserting ``tenant-based 
     assistance as provided under section 8''.
       (h) Repeal of Moving to Opportunities for Fair Housing 
     Demonstration.--Section 152 of the Housing and Community 
     Development Act of 1992 (42 U.S.C. 1437f note) is repealed.
       (i) Preferences for Elderly Families and Persons.--Section 
     655 of the Housing and Community Development Act of 1992 (42 
     U.S.C. 13615) is amended by striking ``the first sentence of 
     section 8(o)(3)(B)'' and inserting ``section 8(o)(6)(A)''.
       (j) Assistance for Troubled Multifamily Housing Projects.--
     Section 201(m)(2)(A) of the Housing and Community Development 
     Amendments of 1978 (12 U.S.C. 1715z-1a(m)(2)(A)) is amended 
     by striking ``section 8(b)(1)'' and inserting ``section 8''.
       (k) Management and Disposition of Multifamily Housing 
     Projects.--Section 203(g)(2) of the Housing and Community 
     Development Amendments of 1978 (12 U.S.C. 1701z-11(g)(2)) is 
     amended by striking ``8(o)(3)(B)'' and inserting 
     ``8(o)(6)(A)''.

     SEC. 208. IMPLEMENTATION.

       In accordance with the negotiated rulemaking procedures set 
     forth in subchapter III of chapter 5 of title 5, United 
     States Code, the Secretary shall issue such regulations as 
     may be necessary to implement the amendments made by this 
     title after notice and opportunity for public comment.

     SEC. 209. DEFINITION.

       In this title, the term ``public housing agency'' has the 
     same meaning as section 3 of the United States Housing Act of 
     1937, except that such term shall also include any other 
     nonprofit entity serving more than 1 local government 
     jurisdiction that was administering the section 8 tenant-
     based assistance program pursuant to a contract with the 
     Secretary or a public housing agency prior to the date of 
     enactment of this Act.

     SEC. 210. EFFECTIVE DATE.

       (a) In General.--The amendments made by this title shall 
     become effective not later than 1 year after the date of 
     enactment of this Act.
       (b) Conversion Assistance.--
       (1) In general.--The Secretary may provide for the 
     conversion of assistance under the certificate and voucher 
     programs under subsections (b) and (o) of section 8 of the 
     United States Housing Act of 1937, as those sections existed 
     on the day before the effective date of the amendments made 
     by this title, to the voucher program established by the 
     amendments made by this title.
       (2) Continued applicability.--The Secretary may apply the 
     provisions of the United States

[[Page S10043]]

     Housing Act of 1937, or any other provision of law amended by 
     this title, as those provisions existed on the day before the 
     effective date of the amendments made by this title, to 
     assistance obligated by the Secretary before that effective 
     date for the certificate or voucher program under section 8 
     of the United States Housing Act of 1937, if the Secretary 
     determines that such action is necessary for simplification 
     of program administration, avoidance of hardship, or other 
     good cause.

     SEC. 211. RECAPTURE AND REUSE OF ANNUAL CONTRIBUTION CONTRACT 
                   PROJECT RESERVES UNDER THE TENANT-BASED 
                   ASSISTANCE PROGRAM.

       Section 8(d) of the United States Housing Act of 1937 is 
     amended by adding at the end the following:
       ``(5) Recapture and reuse of annual contribution contract 
     project reserves.--
       ``(A) Recapture.--To the extent that the Secretary 
     determines that the amount in the annual contribution 
     contract 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 public housing 
     agency, the Secretary shall recapture such excess amount.
       ``(B) Reuse.--The Secretary may hold any amounts under this 
     paragraph in reserve until needed to amend or renew an annual 
     contributions contract with any public housing agency.''.
     TITLE III--SAFETY AND SECURITY IN PUBLIC AND ASSISTED HOUSING

     SEC. 301. SCREENING OF APPLICANTS.

       (a) Ineligibility Because of Past Evictions.--
       (1) In general.--Any household or member of a household 
     evicted from federally assisted housing (as that term is 
     defined in section 305(a)) by reason of drug-related criminal 
     activity (as that term is defined in section 305(c)) or for 
     other serious violations of the terms or conditions of the 
     lease shall not be eligible for federally assisted housing--
       (A) in the case of eviction by reason of drug-related 
     criminal activity, for a period of not less than 3 years from 
     the date of the eviction unless the evicted member of the 
     household successfully completes a rehabilitation program; 
     and
       (B) 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.
       (2) Waiver.--The requirements of subparagraphs (A) and (B) 
     of paragraph (1) 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 a supervised 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);
       (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 a supervised 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) Illegal Use of Controlled Substances or Abuse of 
     Alcohol.--
       (1) Releases.--
       (A) In general.--A public housing agency may require each 
     person who applies for admission to public housing or for 
     assistance under section 8(o) of the United States Housing 
     Act of 1937 to sign one or more appropriate releases 
     authorizing the public housing agency to obtain written 
     information related solely to the applicant's current illegal 
     use (or pattern of illegal use) of a controlled substance, or 
     abuse (or pattern of abuse) of alcohol, in order to assist a 
     public housing agency in determining an applicant's 
     eligibility for such admission or assistance, including 
     determining whether--
       (i) the applicant is or is not illegally using a controlled 
     substance; or
       (ii) there is reasonable cause to believe that the 
     applicant's illegal use (or pattern of illegal use) of a 
     controlled substance, or abuse (or pattern of abuse) of 
     alcohol, may interfere with the health, safety, or right to 
     peaceful enjoyment of the premises by other residents of the 
     project.
       (B) Limitation.--For purposes of this paragraph, a public 
     housing agency may only require an applicant to sign a 
     release (or releases) if the public housing agency requires 
     all of its applicants to sign such release or releases.
       (2) Provision of information.--
       (A) In general.--Notwithstanding any other provision of law 
     other than this subsection, upon the written request of a 
     public housing agency that meets the requirements of 
     subparagraph (B), a physician, drug or alcohol treatment 
     center, medical center, medical clinic, detoxification 
     center, hospital, drug or alcohol treatment program, the 
     National Crime Information Center, police department, or any 
     other law enforcement agency, shall provide to the public 
     housing agency information described in paragraph (1) with 
     respect to an applicant.
       (B) Requirements.--For purposes of subparagraph (A) a 
     request by a public housing agency meets the requirements of 
     this subparagraph if it includes a written authorization, 
     signed by such applicant, for the release of information 
     described in paragraph (1) to the public housing agency.
       (3) Fee.--A public housing agency may be charged a 
     reasonable fee for information provided under this 
     subsection.
       (4) Records management.--Each public housing agency that 
     receives information under this subsection shall establish 
     and implement a system of records management that ensures 
     that any information received by the public housing agency 
     under this subsection is--
       (A) maintained confidentially;
       (B) not misused or improperly disseminated; and
       (C) destroyed in a timely fashion, once the purpose for 
     which the information was requested has been accomplished.
       (5) Limitation.--For purposes of this subsection, a public 
     housing agency shall be prohibited from--
       (A) requesting any information that does not relate solely 
     to an applicant's current illegal use (or pattern of illegal 
     use) of a controlled substance, or abuse (or pattern of 
     abuse) of alcohol; or
       (B) receiving the actual records from which information has 
     been obtained related to the applicant's current illegal use 
     (or pattern of illegal use) of a controlled substance, or 
     abuse (or pattern of abuse) of alcohol.
       (6) Effective date.--This subsection shall take effect upon 
     enactment and without the necessity of guidance from, or 
     regulations issued by, the Secretary.
       (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 or assisted 
     housing program under the jurisdiction of the public housing 
     agency, 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 or Repeated 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 or repeated 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, during the term of the lease--
       (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 resident, any member of the 
     resident'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 residents 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, or any activity resulting in a felony 
     conviction.

     SEC. 304. AVAILABILITY OF CRIMINAL RECORDS FOR PUBLIC HOUSING 
                   RESIDENT 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 residents of, the public housing

[[Page S10044]]

     program or assisted housing program under the jurisdiction of 
     the public housing agency 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) 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 resident or applicant with a copy of the criminal 
     record and an opportunity to dispute the accuracy and 
     relevance of that record.
       (c) Fee.--A public housing agency may be charged a 
     reasonable fee for information provided under subsection (a).
       (d) 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.
       (e) Definition of Adult.--In 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.

       In this title:
       (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 in existence immediately before the 
     date of enactment of the Cranston-Gonzalez National 
     Affordable Housing Act); and
       (E) housing that is assisted under section 811 of the 
     Cranston-Gonzalez National Affordable Housing Act.
       (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.

       Section 6 of the United States Housing Act of 1937 (42 
     U.S.C. 1437d) is amended--
       (1) in subsection (l) (as amended by section 107(f) of this 
     Act)--
       (A) by striking paragraphs (4) and (5);
       (B) by striking the last sentence; and
       (C) by redesignating paragraphs (6) through (8) as 
     paragraphs (4) through (6), respectively;
       (2) by striking subsections (q) and (r); and
       (3) by redesignating subsection (s) (as added by section 
     109 of this Act) as subsection (q).
                   TITLE IV--MISCELLANEOUS PROVISIONS

     SEC. 401. PUBLIC HOUSING FLEXIBILITY IN THE CHAS.

       Section 105(b) of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12705(b)) is amended--
       (1) by redesignating the second paragraph designated as 
     paragraph (17) (as added by section 681(2) of the Housing and 
     Community Development Act of 1992) as paragraph (20);
       (2) by redesignating paragraph (17) (as added by section 
     220(b)(3) of the Housing and Community Development Act of 
     1992) as paragraph (19);
       (3) by redesignating the second paragraph designated as 
     paragraph (16) (as added by section 220(c)(1) of the Housing 
     and Community Development Act of 1992) as paragraph (18);
       (4) in paragraph (16)--
       (A) by striking the period at the end and inserting a 
     semicolon; and
       (B) by striking ``(16)'' and inserting ``(17)'';
       (5) by redesignating paragraphs (11) through (15) as 
     paragraphs (12) through (16), respectively; and
       (6) by inserting after paragraph (10) the following:
       ``(11) describe the manner in which the plan of the 
     jurisdiction will help address the needs of public housing 
     and is consistent with the local public housing agency plan 
     under section 5A of the United States Housing Act of 1937;''.

     SEC. 402. DETERMINATION OF INCOME LIMITS.

       (a) In General.--Section 3(b)(2) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437a(b)(2)) is amended--
       (1) in the fourth sentence--
       (A) by striking ``County,'' and inserting ``and Rockland 
     Counties''; and
       (B) by inserting ``each'' before ``such county''; and
       (2) in the fifth sentence, by striking ``County'' each 
     place that term appears and inserting ``and Rockland 
     Counties''.
       (b) Regulations.--Not later than 90 days after the date of 
     enactment of this Act, the Secretary shall issue regulations 
     implementing the amendments made by subsection (a).

     SEC. 403. DEMOLITION OF PUBLIC HOUSING.

       Notwithstanding any other provision of law, beginning on 
     the date of enactment of this Act, the public housing 
     projects described in section 415 of the Department of 
     Housing and Urban Development--Independent Agencies 
     Appropriations Act, 1988 (as in existence on April 25, 1996) 
     shall be eligible for demolition under--
       (1) section 9 of the United States Housing Act of 1937, as 
     amended by this Act; and
       (2) section 14 of the United States Housing Act of 1937, as 
     that section existed on the day before the date of enactment 
     of this Act.

     SEC. 404. TECHNICAL CORRECTION OF PUBLIC HOUSING AGENCY OPT-
                   OUT AUTHORITY.

       Section 214(h)(2)(A) of the Housing and Community 
     Development Act of 1980 (42 U.S.C. 1436(h)(2)(A)) is amended 
     by striking ``this section'' and inserting ``paragraph (1) of 
     this subsection''.

     SEC. 405. REVIEW OF DRUG ELIMINATION PROGRAM CONTRACTS.

       (a) Requirement.--The Secretary shall investigate all 
     security contracts awarded by grantees under the Public and 
     Assisted Housing Drug Elimination Act of 1990 (42 U.S.C. 
     11901 et seq.) that are public housing agencies that own or 
     operate more than 4,500 public housing dwelling units--
       (1) to determine whether the contractors under such 
     contracts have complied with all laws and regulations 
     regarding prohibition of discrimination in hiring practices;
       (2) to determine whether such contracts were awarded in 
     accordance with the applicable laws and regulations regarding 
     the award of such contracts;
       (3) to determine how many such contracts were awarded under 
     emergency contracting procedures;
       (4) to evaluate the effectiveness of the contracts; and
       (5) to provide a full accounting of all expenses under the 
     contracts.
       (b) Report.--Not later than 180 days after the date of the 
     enactment of this Act, the Secretary shall complete the 
     investigation required under subsection (a) and submit a 
     report to Congress regarding the findings under the 
     investigation. With respect to each such contract, the report 
     shall--
       (1) state whether the contract was made and is operating, 
     or was not made or is not operating, in full compliance with 
     applicable laws and regulations; and
       (2) for each contract that the Secretary determines is in 
     such compliance issue a personal certification of such 
     compliance by the Secretary.
       (c) Actions.--For each contract that is described in the 
     report under subsection (b) as not made or not operating in 
     full compliance with applicable laws and regulations, the 
     Secretary shall promptly take any actions available under law 
     or regulation that are necessary--
       (1) to bring such contract into compliance; or
       (2) to terminate the contract.
       (d) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act.

     SEC. 406. SENSE OF CONGRESS.

       It is the sense of Congress that, each public housing 
     agency involved in the selection of residents under the 
     United States Housing Act of 1937 (including section 8 of 
     that Act) should, consistent with the public housing agency 
     plan of the public housing agency, consider preferences for 
     individuals who are victims of domestic violence.

     SEC. 407. OTHER REPEALS.

       The following provisions of law are repealed:
       (1) Report regarding fair housing objectives.--Section 153 
     of the Housing and Community Development Act of 1992 (42 
     U.S.C. 1437f note).
       (2) Special projects for elderly or handicapped families.--
     Section 209 of the Housing and Community Development Act of 
     1974 (42 U.S.C. 1438).
       (3) Miscellaneous provisions.--Subsections (b)(1), (c), and 
     (d) of section 326 of the Housing and Community Development 
     Amendments of 1981 (Public Law 97-35, 95 Stat. 406; 42 U.S.C. 
     1437f note).
       (4) Public housing childhood development.--Section 222 of 
     the Housing and Urban-Rural Recovery Act of 1983 (12 U.S.C. 
     1701z-6 note).
       (5) Indian housing childhood development.--Section 518 of 
     the Cranston-Gonzalez National Affordable Housing Act (12 
     U.S.C. 1701z-6 note).
       (6) Public housing one-stop perinatal services 
     demonstration.--Section 521 of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 1437t note).
       (7) Public housing mincs demonstration.--Section 522 of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     1437f note).
       (8) Public housing energy efficiency demonstration.--
     Section 523 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 1437g note).
       (9) Public and assisted housing youth sports programs.--
     Section 520 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 11903a).

  Mr. MACK. Mr. President, I am pleased to bring to the floor S. 462, 
the Public Housing Reform and Responsibility Act of 1997. This bill is 
similar to public and assisted housing reform legislation, S. 1260, 
that was introduced

[[Page S10045]]

in the 104th Congress and passed unanimously by this body.
  The Public Housing Reform and Responsibility Act of 1997 addresses a 
public housing system fraught with counterproductive rules and 
regulations that make it impossible for even the best run public 
housing authorities [PHA's] to operate effectively and efficiently. It 
will help to make public housing a platform from which residents can 
achieve the goal of economic independence and self-sufficiency. In 
addition, it promotes increased residential choice and mobility by 
increasing opportunities for residents to use tenant-based assistance.
  The following reforms contained in the Public Housing Reform and 
Responsibility Act represent significant improvements in current public 
and assisted housing policies.
  First, the bill consolidates a multitude of programs into two 
flexible block grants to expand the eligible uses of funds and allow 
more creative and efficient use of resources. The bill also repeals a 
number of current programs that are obsolete, unused, or unfunded.
  Second, it institutes permanent rent reforms such as ceiling rents, 
earned income adjustments, and minimum rents that provide PHA's with 
the tools to develop rental policies that encourage and reward work and 
further the goal of creating mixed-income communities. The bill also 
removes the floor on rents that may be charged under the Brooke 
amendment, while assuring that poor families will not pay more than 30 
percent of their income for rent.
  Third, S. 462 requires tough, swift action against PHA's with severe 
management deficiencies and provides HUD or court-appointed receivers 
with the necessary tools and powers to deal with troubled agencies and 
protect public housing residents.
  Fourth, it requires intervention with respect to severely distressed 
public housing developments that trap residents in deplorable living 
conditions and are costly to operate or maintain. It provides residents 
with alternative housing using vouchers or other available housing.
  Fifth, the bill permanently repeals the one-for-one replacement 
requirement and streamlines the demolition and disposition process to 
permit PHA's to demolish or sell vacant or obsolete public housing.
  Sixth, it gives PHA's broad flexibility to develop or participate 
with other providers of affordable housing in the development of mixed-
income, mixed finance developments.
  Seventh, it repeals Federal preferences that have had the unintended 
consequence of concentrating the poorest of the poor in public housing 
developments and allows PHA's to operate according to locally 
established preferences consistent with local housing needs. The bill 
still maintains the requirement that most housing assistance be 
targeted to very low-income households.
  Eighth, the Public Housing Reform and Responsibility Act calls on 
PHA's to increase coordination with State and local welfare agencies to 
ensure that welfare recipients living in public housing will have the 
full opportunity to move from welfare to work.
  Ninth, the bill provides residents with an active voice in developing 
the local PHA plans that will govern the operations and management of 
housing and for direct participation on housing authority boards of 
directors. It also authorizes funds for resident organizations to 
develop resident management and empowerment activities.
  Finally, S. 462 merges the section 8 voucher and certificate programs 
into a single, choice-based program designed to operate more 
effectively in the private marketplace. It repeals requirements that 
are administratively burdensome to landlords, such as ``take-one, take-
all,'' endless lease and 90-day termination notice requirements. These 
reforms will make participation in the section 8 tenant-based program 
more attractive to private landlords and increase housing choices for 
lower income families.
  The reforms contained in this legislation will significantly improve 
the Nation's public housing and tenant-based rental assistance program 
and the lives of those who reside in federally assisted housing. The 
funding flexibility, substantial deregulation of the day-to-day 
operations and policies of public authorities, encouragement of mixed-
finance developments, policies to deal with distressed and troubled 
public housing, and rent reforms will change the face of public housing 
for PHA's, residents, and local communities.
  Reform of the public housing system has been and remains a bipartisan 
effort in the Senate. I want to thank the chairman of the Banking 
Committee, Senator D'Amato for his strong and steadfast support of 
public housing reform. Further, I appreciate the commitment of the 
ranking member of the Committee, Senator Sarbanes, and the ranking 
member of the Housing Subcommittee, Senator Kerry, to the reform 
effort.
  S. 462 represents the input of many members of this body as well as 
the administration. Since the unanimous approval of this legislation by 
the Banking Committee on May 8, we have worked to make a number of 
needed technical changes to the bill. In addition, the managers 
amendment to the bill reflects a number of policy changes that have 
bipartisan support.
  First, the amendment revises the income targeting provisions for 
public and section 8 tenant-based housing contained in the committee-
passed bill. Most important, the amendment would increase the 
percentage of section 8 tenant based assistance that would be targeted 
to families with very low incomes.
  Second, the managers amendment modifies an amendment initially 
approved by the Banking Committee, which permits housing authorities to 
require applicants for public housing to sign a release for information 
concerning the applicant's illegal drug use. I appreciate the 
willingness of the sponsor of the amendment, Senator Grams, to work 
with Senators Leahy, Kennedy, Kerry, and Jeffords to address their 
concerns about the confidentiality of medical records and potential 
conflicts with other statutes.
  As reflected in the managers amendment, the Grams amendment will not 
supersede the Public Health Service Act, and is not intended to 
abrogate or otherwise limit any provision of the Public Health Service 
Act, or the regulations issued pursuant to the Public Health Service 
Act. Any action pursuant to this provision must be taken in conformance 
with the Public Health Service Act.
  Finally, the bill contains an amendment proposed by Senator Gramm, 
along with Senator D'Amato, to prohibit the admission of sexually 
violent predators into public and assisted housing and provide housing 
authorities access to records on past convictions. One of the important 
purposes of S. 462 is to incorporate measures which reduce crime and 
increase the safety and security of residents of public and assisted 
housing. This amendment is an important and useful contribution to 
meeting the goals of the legislation.
  I urge the passage of S. 462, so that we can begin the process of 
reconciling our differences with the House-passed version of public 
housing reform.
  Mr. KERRY. Mr. President, I rise in support of S. 462 and urge all my 
colleagues to support this public housing reform legislation.
  I want to thank Senator Mack, chairman of the Housing Subcommittee 
and his excellent staff for their great work on this legislation. 
Senator Mack has proved to be a tireless partner in trying to put 
together a consensus piece of legislation. I also want to thank Senator 
Sarbanes for his active participation in drafting the current 
compromise language.
  Finally, I want to congratulate Senator D'Amato for shepherding this 
important piece of housing legislation through the Senate for the 
second year in a row. He has taken an active interest in this and other 
housing legislation which helps to put our Nation's housing policy on a 
more sound and fiscally responsible foundation.
  This is an important piece of legislation. It contains many of the 
key ingredients needed to bring the public housing program back to 
health. It includes many important management reforms requested by 
Secretary Cuomo that will make HUD a more efficient and responsive 
organization, a direction in which we can all agree the Department must 
move.
  The bill gives local public housing authorities both new powers and 
new flexibility to define and meet local housing needs. At the same 
time, it makes the consequences for failing to

[[Page S10046]]

meet those needs more certain and more severe.
  This bill eliminates many of the provisions of current law that 
numerous critics have pointed to as causes for the decline of public 
housing, provisions such as Federal preferences and one for one 
replacement. While well-meaning, these laws have had the unintended 
consequence of contributing to an image--and in some cases the 
reality--of public housing projects as islands of desperate poverty, 
ridden by crime and joblessness.
  By repealing these laws, the Senate bill gives local housing 
officials much more independence. They will have to identify the 
housing needs in their communities and address them in a more effective 
way that avoids the pitfalls of the past. This is a significant new 
responsibility. Many housing authorities have already proven to be 
extremely creative and innovative. For those, this bill will prove to 
be a huge benefit to the residents, the PHA's, and their communities as 
a whole.
  As part of this bargain, we now require housing authorities to devote 
a greater number of the rental assistance vouchers to serve extremely 
low income families. This is an important improvement that has been 
made in the legislation since the committee approved it, and I thank 
Chairman Mack for his cooperation in achieving this goal.
  We have also expanded and improved the opportunities for residents to 
be informed about and participate in the public housing planning 
process. Residents will be able to take a more active role in the 
provision of services to other public housing residents. I strongly 
support these initiatives.
  Other PHA's will have a more difficult time with the transition to 
greater independence. HUD will have to continue to have a significant 
oversight role in these areas. But as HUD's staff and authority 
diminish, I look to the residents of public housing to exercise their 
voices and participate enthusiastically and aggressively in the PHA's 
plans and activities, along the lines established by this bill. In the 
long run, it is the residents who will be the best watchdogs. We must 
make sure they are adequately empowered to exercise this function 
effectively.
  In the long run, Mr. President, I hope this bill, when enacted into 
law, will make public housing the kind of showcase to which we can 
proudly point to in seeking the additional resources we need to really 
start addressing the affordable housing crisis affecting so many of our 
States, from my own State of Massachusetts, to New York, California, 
Utah, and elsewhere. That will be the measure of success I will use in 
the years to come.
  Mr. D'AMATO. Mr. President, I rise today in strong support of the 
Public Housing Reform and Responsibility Act of 1997 (S. 462). With the 
passage of this important legislation, the Senate today renews its 
commitment to ensuring that every American family has a decent, safe 
and affordable home. The bill builds upon and improves those aspects of 
the Nation's public and assisted housing programs which are working 
well and takes dramatic and vital steps to eliminate areas of failure 
in the system.
  This legislation recognizes that the vast majority of public housing 
is well-managed and provides over 1 million American families, elderly 
and disabled with decent, safe and affordable housing. However, housing 
and social policy concerns, as well as Federal budget constraints, 
dictate the need for reform. The reform measures contained in S. 462 
will reduce the costs of public and assisted housing to the Federal 
Government by streamlining regulations, facilitating the formation of 
local partnerships and leveraging additional State, local, and private 
resources to improve the quality of the existing stock. These changes 
will help ensure that Federal funds can be used more efficiently in 
order to serve additional families through the creation of mixed income 
communities.
  This legislation represents the culmination of over 2 years of a 
bipartisan, consensus-building effort to enhance and revitalize 
affordable housing throughout the Nation. This fruitful effort has been 
led by Senator Connie Mack, chairman of the Subcommittee on Housing and 
Community Opportunity, whom I salute for his determination and 
commitment to an informed and reasoned approach in confronting issues 
of enormous complexity. Senator Mack has sought input from the 
administration, resident groups, public housing authorities, low-income 
housing advocates, nonprofit organizations and state and local 
officials who are responsible for implementing the Federal requirements 
established by Congress.
  Mr. President, this legislation makes several critical improvements 
to the Nation's public and assisted housing system. It will protect our 
residents by maintaining the Brooke amendment, which caps rents at 30-
percent of a tenant's income, and mandating tenant participation. It 
will institute reasonable rent requirements to encourage welfare 
recipients who currently receive housing subsidies to move to work. It 
will expand homeownership opportunities for low and moderate income 
families. The bill will speed the demolition of distressed housing 
projects through the repeal of the one-for-one replacement requirement. 
Also, the section 8 tenant-based voucher and certificate programs will 
be combined into a single, streamlined voucher system. The needless 
confusion which results from the differing rules and regulations of 
these two separate programs will be eliminated in order to increase the 
participation of private landlords in a unified, simplified system
  This legislation recognizes that every American deserves to live in a 
safe and secure community. To achieve that goal, a number of important 
provisions have been added to the legislation at my request. The 
legislation will allow HUD to waive rent and income requirements to 
permit police officers a lower rent as an inducement to living in 
public and assisted housing. Loopholes in the current law which allow 
drug dealers and violent criminals to escape eviction if they commit 
their crimes off the premises of the public housing authority will be 
eliminated. In addition, public housing authorities will be judged and 
rated based on the effectiveness of their anticrime policies, and their 
coordination with local law enforcement and tenant organizations in 
developing and implementing anticrime strategies.
  I would like to highlight one important anticrime provision which has 
recently been added to the legislation. This provision would mandate 
the exclusion of child molesters and sexually violent predators from 
receiving Federal housing assistance. In addition, local public housing 
agencies would be granted access to the Federal Bureau of 
Investigation's [FBI] national database on sexually violent offenders. 
This improved records access provision is critical to ensuring that 
these offenders are properly screened out. I would like to thank my 
colleague Senator Gramm for joining with me in ensuring that the 
families and children who live in public housing are protected from 
convicted sex offenders. Senator Gramm's leadership as the sponsor of 
the Pam Lychner Sexual Offender Tracking and Identification Act of 1996 
(Public Law 104-236), which established the FBI database, and his 
diligence in bringing this issue to the attention of the committee are 
to be commended
  Mr. President, the reform provisions contained in this bill will 
greatly improve the quality of life of the families residing in public 
and assisted housing and will help to ensure the long-term viability of 
our Nation's existing stock of affordable housing. I thank my 
colleagues on the Senate Banking Committee for their hard work and 
spirit of bipartisan compromise which they have shown throughout the 
process. I respectfully urge this legislation's speedy passage.
  Mr. SARBANES. Mr. President, I rise in support of S. 462, the Public 
Housing Reform and Responsibility Act of 1997.
  This bill is the culmination of months of hard work and careful 
consideration. It represents the collective wisdom of housing authority 
directors, public housing residents and resident organizations, local 
elected officials, and experts at HUD. As a result of this open, 
inclusive, and bipartisan process, this bill represents widespread 
agreement among stakeholders.
  I want to take a moment to extend my special thanks to Senator Mack 
for his hard work over the past 3 years to get us to this point. 
Senator Mack has worked tirelessly to listen to every argument, to 
entertain every question,

[[Page S10047]]

and to consider every opinion as we moved this bill from introduction 
through the committee and now to the floor. He has proven to be 
responsive to serious concerns and has shown the willingness and 
ability to build coalitions in the interest of getting legislation 
passed. I greatly appreciate his willingness to work with me and my 
colleagues to produce this important piece of legislation.
  Likewise, I want to thank Senator Kerry, the ranking member of the 
Housing Subcommittee. Senator Kerry has long been one of the chief 
advocates for public and assisted housing in the Congress of the United 
States. This public housing bill, particularly in it efforts to target 
assistance to those most in need, reflects Senator Kerry's indelible 
stamp.
  Finally, I greatly appreciate the skill with which Senator D'Amato 
has managed this bill and other important legislation, such as the 
mark-to-market proposal. He has been an important partner in the 
success we are achieving here tonight.
  Mr. President, public housing is the program everyone loves to hate. 
It is easy to understand why; bad high-rise public housing projects are 
easy targets for the press. These projects are magnets for crime and 
drugs. They stick out like sore thumbs and ruin whole neighborhoods.
  But the fact is that most public housing is good housing. In fact, in 
most communities around the country, public housing cannot be 
distinguished from the private housing stock that surrounds it. Most 
people don't even know when public housing is in their neighborhoods.
  Many of the provisions of S. 462 will help make the public housing 
program a more effective program. It will give local housing 
authorities greater autonomy, and greater responsibility, to meet the 
housing needs in their communities. It will provide for a broader, more 
economically diverse mix in public housing, which experts universally 
agree is necessary to create healthier communities. The bill includes 
important provisions to encourage public housing residents to go to 
work by delaying any rent increases that would otherwise accompany 
income gains.
  The bill will expedite the demolition of bad public housing, which 
has been a point of emphasis for both Secretary Cuomo and former 
Secretary Cisneros. It will enable HUD to set aside bad public housing 
management more quickly and replace it with the type of professionals 
that can turn these agencies around. Many of the reforms in this bill 
will result in spending taxpayers dollars more efficiently and 
effectively, and in residents benefiting from imported conditions.
  Again, I want to thank my colleagues for their cooperation, and I 
look forward to continuing to move forward to conference in a 
bipartisan spirit. I urge my colleagues to adopt this legislation.
  Mr. ALLARD. Mr. President, I believe the public housing bill is sound 
legislation and would like to extend my appreciation to the chairman 
and the subcommittee staff for all of their hard work.
  I would especially like to thank the chairman for working with me to 
include two provisions in the public housing bill. One measure would 
make vouchers available for Public Housing residents who are victims of 
crime. This provision would give them the change to live in better 
surroundings. Also included in the bill is a Housing Cost Commission to 
determine the full cost to the Federal Government of each of the 
housing programs administered by HUD. The data from this Commission 
will be available for Congress as it works to improve the efficiency 
and quality of federally assisted housing programs.
  I appreciate being able to work together for the goal of improving 
our public housing system and ensuring that these programs provide 
necessary assistance to low income individuals while giving them an 
opportunity to help themselves.
  Mr. GRAMS. Mr. President, today, I rise in support of S. 462, the 
Public Housing Reform and Responsibility Act. This bill is 
compassionate legislation that provides much-needed regulatory relief 
and commonsense reform for public housing in America. I am proud to be 
an original cosponsor of S. 462. It makes permanent the reform measures 
that have been added onto recent appropriations bills. It provides much 
needed additional regulatory relief and paperwork reduction to well-
managed public housing agencies. It imposes tougher penalties on 
troubled housing authorities. And finally, it strengthens the ability 
of authorities to improve the safety of their tenants by enhancing 
their powers of screening and eviction.
  S. 462 makes permanent various reform measures that have been 
approved in appropriations bills during the last 3 years. It 
permanently repeals Federal preferences that have had the unintended 
consequence of concentrating the poorest of the poor in public housing 
developments and allows housing authorities to operate according to 
locally established preferences consistent with local housing needs. 
The bill still maintains the requirement that most housing assistance 
be targeted to very low-income households. S. 462 also repeals the one-
for-one replacement requirement and streamlines the demolition and 
disposition process to permit housing authorities to demolish or sell 
vacant or obsolete public housing.
  S. 462 also provides much needed additional regulatory relief and 
paperwork reduction to public housing agencies. The bill significantly 
reduces the complexity that public housing authorities have in 
receiving funding. S. 462 consolidates a multitude of programs into two 
flexible block grants to expand the eligible uses of funds and allow a 
public housing agency to more efficiently and creatively use its 
available resources.
  The bill also repeals the highly burdensome requirements of the 
Family Self Sufficiency Program, which was passed in 1990 as part of 
the National Affordable Housing Act. Congress now recognizes that, 
while well-intentioned, FSS was an unfunded mandate that placed 
enormous administrative burden on public housing agencies. I believe 
that public housing agencies should be permitted to direct all of their 
energies to provide safe and affordable housing to low-income families, 
senior citizens, and the disabled. Public housing agencies should not 
have to drain their scarce resources to do the work better suited to 
county social service agencies.
  More importantly, however, the FSS mandate has been made unnecessary 
by the enactment last year of the landmark welfare reform bill. Because 
there will be 50 locally determined welfare reform laws, these laws are 
the more appropriate vehicle for moving public housing families from 
welfare to work.
  While providing much needed regulatory relief to well-managed public 
housing agencies. S. 462 also imposes tough, new penalties for troubled 
authorities. I am very supportive of swift and strong action to correct 
the management deficiencies of troubled housing authorities. While less 
than 5 percent of the 3,400 housing authorities in this country are 
troubled, their poor condition and lack of safety tend to dominate the 
news. I believe that, working together, we must act decisively to 
improve their condition.
  S. 462 also contains three provisions that I personally authored. The 
first provision relates to the Congregate Housing Services Program, 
which was authorized by the Housing and Community Development 
Amendments Act of 1978 to provide 3- to 5-year contracts to fund 
services for eligible residents of public housing authorities. CHSP 
provides for ailing seniors, who normally would be institutionalized in 
nursing homes to remain housed in less expensive elderly-only projects 
that provide them with at least one hot meal a day, a social worker to 
monitor their health and medication, and housekeeping services.
  CHSP is good program because it provides ailing low-income seniors 
with the dignity of having their own apartment at a cost that has been 
estimated to be 66 percent lower than the costs of institutionalizing 
them in nursing homes.
  As I strongly support CHSP, I have had language added into S. 462 to 
guarantee the continuation of funding for this important program.
  I have included two other provisions into S. 462 that are designed to 
enhance tenant safety. My first provision strengthens the eviction 
powers of public housing authorities by permitting them to quickly 
terminate the leases of tenants that are found by a legal police search 
to have illegal drugs in their possession.

[[Page S10048]]

  My second tenant safety provision--now commonly known as the Grams 
Amendment--has been the subject of high amount of controversy. As you 
know, current law permits public housing authorities to reject 
applicants who have a record of violent criminal activity, who are 
abusing illegal drugs, or who are abusing alcohol in a way that could 
adversely affect the safety and peaceful enjoyment of other tenants. 
Public housing authorities have responded to this legislation by 
checking on their applicants' criminal records, prior tenancy records 
and--in a few cases--information from the records of drug abuse 
treatment facilities. Public housing authorities that have instituted 
this screening have reported back to me that they have been able to 
significantly reduce illegal drug use and crime in their projects.
  Several months ago, several of Minnesota's public housing authorities 
requested that I get an amendment into the public housing reform bill 
that would clarify their right to get information about illegal drug 
use from the records of drug abuse treatment facilities. Their request 
was prompted by a lawsuit being filed against the Minneapolis Public 
Housing Authority by people that are opposed to their screening for 
illegal drugs.
  I agreed to do the amendment, because I have previously toured public 
housing projects throughout Minnesota and have had touching 
conversations with Minnesotans who were fearful about the affects of 
illegal drugs on their own safety and the future of their children. I 
am also concerned that the money that public housing authorities have 
been spending to defend themselves against frivolous lawsuits regarding 
their screening programs could be better spent on providing housing to 
America's most needy families.
  After I added in safeguards to protect applicants' privacy and 
confidentiality rights, my amendment was unanimously accepted by the 
Democrats and the Republicans on the Senate Banking committee, and it 
was part of the public housing reform bill that the Committee 
unanimously voted to report out on May 8. At the time, no one on the 
committee considered my amendment to be controversial.
  After we completed committee action on the bill, I heard from quite a 
few organizations that were concerned that the language of the 
legislation preempted the medical record confidentiality protections of 
the Public Health Service Act. Furthermore, there was concern that the 
type of information that the amendment would permit a public housing 
authority to review would conflict with the Americans With Disabilities 
Act, the Fair Housing Act, and the Rehabilitation Act. I took these 
concerns very seriously because I am a strong supporter of laws that 
protect medical confidentiality and protect people with disabilities 
from discrimination.
  Over August recess, my staff had meetings with HUD, the DOJ, HHS, and 
Housing Subcommittee staff to address the concerns regarding the 
amendment. On September 11, I submitted to the committee a scaled-down 
version of the Amendment that does not preempt the Public Health 
Service Act and does not conflict with ADA, Fair Housing, or the Rehab 
Act. I am happy that this version of my amendment has been retained in 
the bill.
  In conclusion, I am very pleased that the Senate will be reporting 
out this long overdue piece of legislation today. I commend Senator 
Mack for sponsoring this moderate and balanced piece of legislation and 
for carefully shepherding it through the Senate.
  Mr. GRAMM. Mr. President, I wish to thank the distinguished chairman 
of the Committee on Banking, Housing, and Urban Affairs, Senator 
D'Amato, as well as Senator Mack, the chairman of the Housing 
Opportunity Subcommittee and the ranking members for including in the 
manager's amendment the text of several proposals that I drafted and 
which I believe will strengthen the legislation.
  The first of these is an amendment which will ban violent sexual 
predators from eligibility for, and thus admission to, public housing 
facilities. The second initiative allows public housing authorities 
access to State records concerning sex offender convictions. Both of 
these provisions were approved by the House in its version of the 
legislation.
  In a letter endorsing the effort to rid our public housing of these 
violent predators, the National Center for Missing and Exploited 
Children said that ``* * * each and every American, regardless of 
socio-economic class, has the right to a safe and secure 
neighborhood.''
  Mr. President, I do not believe that there is a constitutional right 
to have access to public housing. If there is a right involved here, it 
is the right of people to know that the person living next door to them 
and their children is not a convicted sex offender. Adoption of these 
amendments will insure a safer environment for the adults and children 
who reside in public housing.
  I urge adoption of the amendments.
  Mr. FAIRCLOTH. Mr. President, as many of my colleagues are aware, I 
introduced a bill earlier this session, along with Senator Kyl and 
numerous other Senators, on occupancy standards. The State Housing 
Protection Act transfers authority to set occupancy standards from the 
Department of Housing and Urban Development to the States. Occupancy 
standards was an issue in last year's conference of the public housing 
bill. I rise today to urge the members of the Senate Committee on 
Banking, Housing, and Urban Affairs to address occupancy standards 
again this year when the public housing reform bill goes to conference.
  The State Housing Protection Act does not address privately owned 
dwellings, only rental dwellings. Under the Fair Housing Act, private 
property owners are permitted to set occupancy standards that limit the 
number of persons who may rent an apartment dwelling, if the standards 
are reasonable. At present, there is no clear guidance in this area, 
and there is controversy over what is a reasonable standard.
  Following passage of the Fair Housing Act in 1988, some activists 
brought lawsuits against housing providers, charging that two persons 
per bedroom standards discriminated against families. Housing providers 
persuasively argued to HUD that consistently applied two persons per 
bedroom standards do not discriminate against families. So, in order to 
give housing providers a safe harbor from inappropriate legal 
challenges, in 1991, HUD issued guidance which indicated that two 
persons per bedroom would be presumed to be a generally reasonable 
standard by HUD, and housing providers would generally not be sued by 
HUD for discrimination if they used that standard.
  Housing providers, of course, were not precluded in the guidance from 
exceeding that standard. Private housing providers adjusted to that 
guidance and relied on it when adopting occupancy policies for their 
rental units. HUD's own handbooks for public and assisted housing also 
established that standard. HUD itself adhered more strictly to that 
guidance until the Clinton administration arrived.
  In 1995, HUD issued and then quickly retracted a new guidance that 
would have required housing providers to allow as many as 8 to 10 
people in a two bedroom apartment and 12 to 15 in a three bedroom 
apartment--if the housing providers didn't want to be sued for 
discrimination by HUD. HUD realized that the 1995 guidance was 
unworkable and put back in place the 1991 two person per bedroom 
guidance. However, there have been a number of court decisions 
overturning HUD's actions in this area. So there is still a void and no 
clarity as to how it is being interpreted by HUD or whether it will be 
changed again by HUD in line with the 1995 attempt.
  Housing providers need certainty in their establishment of such 
fundamental business judgments as occupancy standards. Nobody likes to 
be sued for discrimination, but you especially don't like when you 
don't know the rules that are being used by the Government. Republicans 
and Democrats on the Senate Banking Committee have acknowledged the 
need for clarity and have promised to work with me in conference on 
this issue.
  Mr. KYL. Mr. President, I rise to encourage the members of the Senate 
Committee on Banking, Housing, and Urban Development to address the 
issue of occupancy standards when the public housing reform bill goes 
to conference committee. Earlier this year, Senator Faircloth and I 
introduced the State Housing Protection Act which transfers from HUD to 
the States, the authority to set occupancy standards. Yet, the 
committee did not

[[Page S10049]]

address the matter when it considered its public housing reform bill.
   Mr. President, Senator Faircloth and I have worked on this issue for 
2 years. In the 104th Congress, Senator Faircloth and I blocked HUD 
from imposing national occupancy standards until it completed an 
official rule. Soon thereafter, we introduced a bill with 
Representative McCollum which prohibited HUD from setting a national 
occupancy standard. The House included that bill in its 1996 public 
housing reform bill, but it died in conference committee late last 
year.
  In May of this year, the House passed its public housing reform bill 
which included a section that prohibits the Secretary of HUD from 
establishing a national occupancy standard. Senator Faircloth and I 
have tried to change the current policy on occupancy standards because 
we believe that HUD generally has pursued an occupancy standard policy 
that encourages overcrowding, thereby depreciating housing stock that 
is scarce to begin with. We believe that HUD is poorly serving lower-
income families and defeating its own purpose. Again, I encourage the 
members of the conference committee to seriously consider restricting 
HUD's ability to set a national occupancy standard.
  Mr. LUGAR. Mr. President, I would like to thank the floor managers 
for agreeing to include the city of Indianapolis flexible grant 
demonstration amendment in the manager's amendment to S. 462.
  The Lugar amendment would authorize the city of Indianapolis,in 
coordination with its public housing authority, to receive and combine 
program allocations from Federal housing assistance funds so that it 
has the flexibility to determine the best use of these funds. This 
amendment has the support both of Mayor Goldsmith and of the 
Indianapolis Housing Authority.
  My flexible grant demonstration amendment would give the city of 
Indianapolis, in coordination with the Indianapolis Housing Authority, 
the ability to receive and combine covered housing assistance to which 
the Indianapolis Housing Authority would otherwise be entitled. Covered 
housing assistance is defined as operating assistance, modernization 
assistance, section 8 certificate and voucher programs assistance, 
capital and operating funds assistance, and tenant-based rental 
assistance. It does not include other housing assistance programs for 
which the city or its public housing authority would otherwise be able 
to compete.
  This demonstration program would last for 2 to 5 years and would 
serve a variety of purposes. It could be used to provide incentives for 
low-income working families to become economically self-sufficient, to 
reduce costs of housing assistance by providing funds in the most 
effective manner, to increase the stock of affordable low-income 
housing and housing choices for low-income families, to increase home 
ownership among low-income families and for other ways in which the 
city in coordination with the public housing agency could make more 
effective use of limited housing funds.
  Under no circumstances would there be any reduction in the number of 
low-income families who would otherwise be served with housing 
assistance had these amounts not been combined. In fact, by allowing 
greater flexibility and cost-effectiveness in the use of these funds, 
my amendment will increase and enhance housing assistance to lower 
income families who need it.
  I urge support for my amendment.
  Mr. KERRY. Mr. Chairman, I have a question regarding section 107(d) 
of S. 462, which adds a new performance indicator for the extent to 
which the public housing agency is providing acceptable basic housing 
conditions. I do not see what could be much more fundamental to a 
housing authority's performance than offering its tenants decent 
housing conditions in which to live.
  Mr. MACK. I agree.
  Mr. KERRY. The committee report, on page 15, indicates that both the 
Secretary of Housing and Urban Development [HUD] and HUD's inspector 
general pointed out that under the current performance evaluation 
[PHMAP] system, a PHA can escape ``troubled'' designation even though a 
substantial portion of its units would not meet basic housing 
conditions. This seems totally unacceptable. Will the proposed 
amendment in section 107(d) of S. 462 allow HUD to give this 
performance indicator enough weight to solve this problem? Will that 
approach assure that we do not have authorities that are deemed 
acceptable performers even though they offer widespread substandard 
housing conditions?
  Mr. MACK. The amendment in S. 462 would allow HUD, subject to the 
rulemaking process, to give this performance indicator enough weight in 
the PHMAP system so that it can appropriately affect the determination 
whether a PHA is designated ``troubled.''
  Mr. SARBANES. As you know, one of the most important principles of 
this public housing bill is resident empowerment. To this end, the 
legislation mandates that resident advisory boards assist in the 
development of public housing agency [PHA] plans. It also requires that 
PHA's: first, conduct public hearings to collect input on their 
proposed plans; second, make a copy of their proposed plan available 
for public inspection at least 45 days prior to the public hearing; and 
third, provide notice of the date of the public hearing at least 45 
days in advance of the hearing.
  Given this emphasis on resident participation, I would anticipate 
that PHA's would make every effort to ensure that each resident is 
aware of his or her opportunities to provide input. I would expect 
PHA's to prominently display, at each of their assisted housing 
developments, information about the hearings, as well as information 
about where residents can view copies of the proposed agency plans. I 
would also expect that PHA's, to the maximum extent practicable, will 
contact resident groups directly to inform them of this information. Is 
this how you anticipate the process will work?
  Mr. MACK. That is the type of scenario I envision. The legislation 
was carefully crafted so that residents will have a significant voice 
in the policies and programs that will affect them. I agree that the 
only way their interests can truly be served is to provide them with as 
much advance notice and information about the public hearings as 
possible--and to incorporate their recommendations where appropriate.
  Mrs. BOXER. Mr. President, I would first like to thank the chairman 
of the Housing Opportunity and Community Development Subcommittee for 
joining me in this colloquy regarding a very serious problem for many 
low-income citizens living in mobile home parks. These good people, 
most of whom are senior citizens, are not able to use section 8 
assistance because their park owners refuse to accept it.
  In the vast majority of cases, mobile home tenants own their mobile 
home and rent the space on which the home sits. Unfortunately, many 
residents become unable to pay the rising space rates and require low-
income housing assistance under section 8. This is especially common 
among elderly residents whose income drops following death of a spouse 
or illness.
  Under the current system, because section 8 assistance payments are 
made to landlords, section 8 participation requires that the landlord 
sign a rental assistance contract with the appropriate housing 
authority. For various reasons, many mobile home park owners are 
refusing to sign these contracts. Consequently, their residents are 
being denied the section 8 assistance they need to meet their housing 
costs.
  Without section 8 assistance, these very low-income, primarily 
elderly, residents, have few options. Some will be forced to move their 
homes to parks which accept section 8 assistance. However, this is an 
expensive and laborious process. It costs a minimum of $10,000 to 
relocate a mobile home, money that most low-income tenants do not have.
  Some residents will not even have the option of moving their mobile 
homes to parks which accept section 8 payments. In areas with a 
shortage of spaces, tenants will have to either abandon their homes or 
continue to pay unaffordable space rents. Because currently high-space 
rents reduce the demand for mobile homes, those who must abandon their 
homes will likely not recoup their investment, often losing their 
entire lifesavings.
  This is a critical problem for many in my State of California. Mobile 
homes are one of the few sources of affordable housing in many areas of 
the State, especially for senior citizens. There are

[[Page S10050]]

approximately 700,000 mobile home residents in California 50-60 percent 
of whom are seniors. Without section 8 assistance, many of these 
residents will lose their homes and lifetime investments.
  Mr. MACK. I am aware that this problem exists, Senator, and I am very 
sympathetic.
  Mrs. BOXER. I appreciate the chairman's response. I would like to 
offer a solution. The House-passed Public Housing bill, H.R. 2, 
contains a provision that allows section 8 payments to go directly to 
mobile home tenants of parks which refuse to enter into section 8 
contracts. This provision, section 330, gives the money directly to the 
tenants thereby obviating the need for a contract between the park 
owner and the local housing authority. Because the House provision only 
applies to tenants who already live in parks that do not accept section 
8, it does not force park owners to take in new tenants with section 8 
assistance.
  I hope, Mr. Chairman, that when we get to conference on the Public 
Housing bills, we can seriously consider section 330 of the House-
passed bill as a possible solution to the very urgent problem facing so 
many mobile home tenants.
  Mr. MACK. I thank the Senator from California for her concern. I 
share her desire to prevent displacement of these good tenants and I 
have every intention of working with her during conference to assure 
that this problem is appropriately addressed.
  Mrs. BOXER. I appreciate the Chairman's willingness to help solve 
this serious problem and I look forward to working with him on it in 
conference.
  Mr. WELLSTONE. The relocation provisions contained in section 115 
state that residents shall be relocated to areas that are generally not 
less desirable than the location of the displaced person's dwelling. Is 
it your understanding that a comparably desirable area would be one 
that is not subject to unreasonable adverse environment conditions, and 
one which offers similar access to public utilities, facilities, 
services, and the displaced person's place of employment?
  Mr. MACK. I agree that these should be the primary factors that a 
public housing authority takes into consideration when providing 
relocation assistance. It is our intention that the interests of 
residents be protected to the maximum possible extent during the 
demolition and relocation process.


                           Amendment No. 1257

                   (Purpose: To provide a substitute)

  Mr. McCONNELL. Senator Mack has at the desk an amendment to the 
committee substitute. I ask its immediate consideration.
  The PRESIDING OFFICER. The clerk will report.
  The bill clerk read as follows:

       The Senator from Kentucky [Mr. McConnell], for Mr. Mack, 
     proposes an amendment numbered 1257.

  (The text of the amendment is printed in today's Record under 
``Amendments Submitted.'')
  The PRESIDING OFFICER. Without objection, the amendment was agreed 
to.
  (The amendment (No. 1257) was agreed to.)
  Mr. McCONNELL. I ask unanimous consent the committee amendment, as 
amended, be considered read and agreed to, the bill be considered read 
a third time and passed, the motion to reconsider be laid upon the 
table, and any statements relating to the bill be printed at this point 
in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee amendment, as amended was agreed to.
  The bill (S. 462), as amended, was read the third time, and passed.

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