[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
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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
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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.
____________________