[Congressional Record Volume 143, Number 131 (Friday, September 26, 1997)]
[Senate]
[Pages S10069-S10092]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        THE PUBLIC HOUSING REFORM AND RESPONSIBILITY ACT OF 1997

                                 ______
                                 

                        MACK AMENDMENT NO. 1257

  Mr. McCONNELL (for Mr. Mack) proposed an amendment to the bill (S. 
462). A bill to reform and consolidate the public and assisted housing 
programs of the United States, and to redirect primary responsibility 
for these programs from the Federal Government to States and 
localities, and for other purposes; as follows:

       Strike all after the enacting clause and insert 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.

[[Page S10070]]

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 public housing agencies 
              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.
Sec. 125. City of Indianapolis flexible grant demonstration.

                 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. National Commission on Housing Assistance Program Costs.
Sec. 405. Technical correction of public housing agency opt-out 
              authority.
Sec. 406. Review of drug elimination program contracts.
Sec. 407. Treatment of public housing agency repayment agreement.
Sec. 408. Ceiling rents for certain section 8 properties.
Sec. 409. Sense of Congress.
Sec. 410. Other repeals.
Sec. 411. Guarantee of loans for acquisition of property.
Sec. 412. Prohibition on use of assistance for employment relocation 
              activities.
Sec. 413. Use of HOME funds for public housing modernization.
Sec. 414. Report on single family and multifamily homes.

     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.

       (a) In General.--Except with respect to any provision or 
     amendment identified by the Secretary under subsection (b) 
     and 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.
       (b) Exception.--
       (1) Determination.--Not later than 2 months after the date 
     of enactment of this Act, the Secretary shall identify any 
     provision of this Act, or any amendment made by this Act, the 
     implementation of which, in the determination of the 
     Secretary--
       (A) requires a substantial exercise of discretion, such 
     that there exists a significant risk of litigation;
       (B) requires a need for uniform interpretation; or
       (C) is otherwise problematic, such that immediate 
     implementation is inappropriate.
       (2) Notice.--
       (A) In general.--Notwithstanding any other provision of 
     law, not later than 6 months after the date on which the 
     Secretary makes any identification under paragraph (1), the 
     Secretary shall implement each provision or amendment so 
     identified by notice published in the Federal Register, which 
     notice shall--
       (i) include such requirements as may be necessary to 
     implement the provision or amendment; and
       (ii) invite public comments on those requirements.
       (B) Effective date of notice.--The notice published under 
     paragraph (2) may, in the discretion of the Secretary, take 
     effect upon publication.
       (3) Final regulations.--Not later than 12 months after the 
     date of enactment of this Act, the Secretary shall issue such 
     final regulations as may be necessary, taking into account 
     any comments received under paragraph (2)(A)(ii), to 
     implement each provision or amendment identified under 
     paragraph (1).

     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,

[[Page S10071]]

     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.
                        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 and subject to clause (ii), 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) Increased security.--A public housing agency may 
     take the actions authorized in clause (i) only for the 
     purpose of increasing security for the residents of a public 
     housing project.
       ``(iii) 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.--
       (A) In general.--Subject to subparagraph (B), prior to the 
     issuance of final regulations under paragraph (1), a public 
     housing agency may implement ceiling rents, which shall be--
       (i) determined in accordance with section 3(a)(2)(A) of the 
     United States Housing Act of 1937 (amended by subsection (b) 
     of this section);
       (ii) 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
       (iii) equal to the fair market rent for the area in which 
     the unit is located.
       (B) Minimum amount.--The amount of any ceiling rent 
     implemented by a public housing agency under this paragraph 
     may not be less than 75 percent of the monthly cost to 
     operate the housing.

     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;

[[Page S10072]]

       ``(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).
       ``(e) Individual Savings Accounts.--
       ``(1) In general.--In lieu of a disallowance of earned 
     income under subsection (d), upon the request of a family 
     that qualifies under subsection (d), a public housing agency 
     may establish an individual savings account in accordance 
     with this subsection for that family.
       ``(2) Deposits to account.--The public housing agency shall 
     deposit in any savings account established under this 
     subsection an amount equal to the total amount that otherwise 
     would be applied to the family's rent payment under 
     subsection (a) as a result of employment.
       ``(3) Withdrawal from account.--Amounts deposited in a 
     savings account established under this subsection may only be 
     withdrawn by the family for the purpose of--
       ``(A) purchasing a home;
       ``(B) paying education costs of family members;
       ``(C) moving out of public or assisted housing; or
       ``(D) paying any other expense authorized by the public 
     housing agency for the purpose of promoting the economic 
     self-sufficiency of residents of public and assisted 
     housing.''.
       (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

[[Page S10073]]

     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 (which shall include 
     measures necessary for the prevention or eradication of 
     infestation by cockroaches), 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 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 and a description of the manner in which 
     those recommendations were addressed 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 and all 
     relevant information 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.--Subject to subparagraph (B), 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, including the approved comprehensive 
     housing affordability strategy under title I of the Cranston-
     Gonzalez National Affordable Housing Act of the jurisdiction 
     in which the public housing agency is located; and
       ``(iii) are prohibited by or inconsistent with any 
     provision of this title or other applicable law.
       ``(B) Exception.--
       ``(i) In general.--Except as provided in clause (ii), the 
     Secretary may, by regulation, provide that 1 or more elements 
     of a public housing agency plan shall be reviewed only if the 
     element is challenged.
       ``(ii) Inapplicability to certain provisions.--
     Notwithstanding clause (i), the Secretary shall review the 
     information submitted under paragraphs (7) and (14) of 
     subsection (d).
       ``(C) 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.

[[Page S10074]]

         ``(D) Public availability.--The public housing agency 
     shall make the approved plan available to the general public.
       ``(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.
       ``(5) Compliance with plan.--
       ``(A) In general.--In providing assistance under this 
     title, a public housing agency shall comply with the rules, 
     standards, and policies established in the public housing 
     agency plan of the public housing agency approved under this 
     section.
       ``(B) Investigation and enforcement.--In carrying out this 
     title, the Secretary shall--
       ``(i) provide an appropriate response to any complaint 
     concerning noncompliance by a public housing agency with the 
     applicable public housing agency plan; and
       ``(ii) if the Secretary determines, based on a finding of 
     the Secretary or other information available to the 
     Secretary, that a public housing agency is not complying with 
     the applicable public housing agency plan, take such actions 
     as the Secretary determines to be appropriate to ensure such 
     compliance.''.
       (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) Accounting System for Rental Collections and Costs.--
       ``(1) Establishment.--Each public housing agency that 
     receives grant amounts under this title shall establish and 
     maintain a system of accounting for rental collections and 
     costs (including administrative, utility, maintenance, 
     repair, and other operating costs) for each project.
       ``(2) Access to records.--Each public housing agency shall 
     make available to the general public the information required 
     pursuant to paragraph (1) regarding collections and costs.
       ``(3) Exemption.--The Secretary may permit authorities 
     owning or operating fewer than 500 dwelling units to comply 
     with the requirements of this subsection by accounting on an 
     agency-wide basis.''.
       (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 (L); 
     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.
       ``(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).'';
       (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.''; and
       (3) by adding at the end the following:
       ``(5)(A) To the extent that the Secretary determines such 
     action to be necessary in order to ensure the accuracy of any 
     certification made under this section, the Secretary shall 
     require an independent auditor to review documentation or 
     other information maintained by a public housing agency or 
     resident management corporation pursuant to this section to 
     substantiate each certification submitted by the agency or 
     corporation relating to the performance of that agency or 
     corporation.
       ``(B) The Secretary may withhold, from assistance otherwise 
     payable to the agency or corporation under section 9, amounts 
     sufficient to pay for the reasonable costs of any review 
     under this paragraph.''.
       (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))

[[Page S10075]]

     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 PUBLIC HOUSING 
                   AGENCIES 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 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

[[Page S10076]]

     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;
       ``(F) the ability of the public housing agency to 
     effectively administer the Capital Fund distribution of the 
     public housing agency; and
       ``(G) any other factors that the Secretary determines to be 
     appropriate.
       ``(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 
     (including amounts sufficient to pay for the reasonable costs 
     of review by an independent auditor of the documentation or 
     other information maintained pursuant to section 6(j)(5) by a 
     public housing agency or resident management corporation to 
     substantiate the performance of that agency or corporation);
       ``(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 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;
       ``(G) the ability of the public housing agency to 
     effectively administer the Operating Fund distribution of the 
     public housing agency; and
       ``(H) any other factors that the Secretary determines to be 
     appropriate.
       ``(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

[[Page S10077]]

     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.
       ``(5) Eligible uses.--In carrying out this subsection, the 
     Secretary may use amounts set aside under this subsection 
     for--
       ``(A) any eligible use under the Operating Fund or the 
     Capital Fund established by this section; or
       ``(B) the provision of tenant-based assistance in 
     accordance with section 8.
       ``(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 24 months after, as applicable--
       ``(i) the date on which the funds become available to the 
     agency for obligation in the case of modernization; or
       ``(ii) the date on which the agency accumulates adequate 
     funds to undertake comprehensive modernization, substantial 
     rehabilitation, or new construction of units.
       ``(B) Extension of time period.--The Secretary--
       ``(i) may, extend the time period described in subparagraph 
     (A) , for such period of time as the Secretary determines to 
     be necessary, if the Secretary determines that the failure of 
     the public housing agency to obligate assistance in a timely 
     manner is attributable to--

       ``(I) litigation;
       ``(II) obtaining approvals of a Federal, State, or local 
     government;
       ``(III) complying with environmental assessment and 
     abatement requirements;
       ``(IV) relocating residents;
       ``(V) an event beyond the control of the public housing 
     agency; or

       ``(VI) any other reason established by the Secretary by 
     notice published in the Federal Register;

       ``(ii) shall disregard the requirements of subparagraph (A) 
     with respect to any unobligated amounts made available to a 
     public housing agency, to the extent that the total of those 
     amounts does not exceed 10 percent of the original amount 
     made available to the public housing agency; and
       ``(iii) may, with the prior approval of the Secretary, 
     extend the period of time described in subparagraph (A), for 
     an additional period not to exceed 12 months, based on--

       ``(I) the size of the public housing agency;
       ``(II) the complexity of capital program of the public 
     housing agency;
       ``(III) any limitation on the ability of the public housing 
     agency to obligate the Capital Fund distributions of the 
     public housing agency in a timely manner as a result of State 
     or local law; or
       ``(IV) such other factors as the Secretary determines to be 
     relevant.

       ``(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) or (B).
       ``(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.

[[Page S10078]]

       ``(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 by section 
     103(a) of this Act), or a rental amount that is based on an 
     adjustment to income under section 3(b)(5)(E) (as amended by 
     section 104(a)(2) 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 resident of a public housing 
     project 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 216(i)(1) or 1614 of the Social Security Act (42 
     U.S.C. 416(i)(1); 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.
       ``(4) Geographic location; prohibition against replacement 
     of employees.--
       ``(A) Geographic location.--The requirement described in 
     paragraph (1) may include community service or participation 
     in a self-sufficiency program performed at a location not 
     owned by the public housing agency.
       ``(B) Prohibition against replacement of employees.--In 
     carrying out this subsection, a public housing agency may 
     not--
       ``(i) substitute community service or participation in a 
     self-sufficiency program, as described in paragraph (1), for 
     work performed by a public housing employee; or
       ``(ii) supplant a job at any location at which community 
     work requirements under section 111 are fulfilled.
       ``(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

[[Page S10079]]

     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--
       ``(i) with respect to the administration of the programs of 
     the public housing agency, including any program that is 
     subject to this title; or
       ``(ii) for the purpose of providing or arranging for the 
     provision of supportive or social services.
       ``(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 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 70 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 admission 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 65 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 90 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 admission 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;
       ``(B) not less than 70 percent shall be occupied by 
     families whose incomes do not exceed 60 percent of the area 
     median income; 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.
       ``(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

[[Page S10080]]

     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 notify residents in a project subject to 
     demolition or disposition 90 days prior to the displacement 
     date except in cases of imminent threat to health or safety;
       ``(B) will provide for the payment of the actual and 
     reasonable relocation expenses of each resident to be 
     displaced;
       ``(C) will ensure that each displaced resident is offered 
     comparable housing--
       ``(i) that meets housing quality standards;
       ``(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;
         ``(iii) that is 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; and
         ``(iv) that is located in an area that is generally not 
     less desirable than the location of the displaced person's 
     housing;

       ``(D) will provide any necessary counseling for residents 
     who are displaced; and
       ``(E) 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
       ``(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

[[Page S10081]]

     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--
       ``(i) the plan is plainly inconsistent with the conversion 
     assessment under subsection (b);
       ``(ii) there is reliable information and data available to 
     the Secretary that contradicts that conversion assessment; or
       ``(iii) the plan otherwise fails to meet the requirements 
     of this subsection.
       ``(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.''.
       (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.--
       (1) In general.--Except as provided in paragraph (2), 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.
       (2) Exception.--Section 23(d)(3) of the United States 
     Housing Act of 1937, as in existence on the day before the 
     date of enactment of this Act, shall not apply to any 
     contract or other agreement after 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, 2000.''.

     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

[[Page S10082]]

     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 a right of first refusal to acquire the public housing 
     project within the applicable period of time after initial 
     occupancy of the public housing project in accordance with 
     section 42(i)(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 take into account 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.
       ``(3) Determination of secretary.--
       ``(A) Failure to identify projects.--If the Secretary 
     determines, based on a plan submitted under this subsection, 
     that a public housing agency has failed to identify 1 or more 
     public housing projects that the Secretary determines should 
     have been identified under subsection (a), the Secretary may 
     designate the public housing projects to be removed from the 
     inventory of the public housing agency pursuant to this 
     section.
       ``(B) Erroneous identification of projects.--If the 
     Secretary determines, based on a plan submitted under this 
     subsection, that a public housing agency has identified 1 or 
     more public housing projects that should not have been 
     identified pursuant to subsection (a), the Secretary shall--
       ``(i) require the public housing agency to revise the plan 
     of the public housing agency under this subsection; and
       ``(ii) prohibit the removal of any such public housing 
     project from the inventory of the public housing agency under 
     this section.
       ``(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 
     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

[[Page S10083]]

     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 or a congregate 
     housing services program for elderly disabled individuals, 
     nonelderly disabled individuals, or temporarily disabled 
     individuals;
       ``(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) Matching Requirement.--The Secretary may not make any 
     grant under this section to any applicant unless the 
     applicant supplements each dollar made available under this 
     section with funds from sources other than this section, in 
     an amount equal to not less than 25 percent of the grant 
     amount, including--
       ``(1) funds from other Federal sources;
       ``(2) funds from any State or local government sources;
       ``(3) funds from private contributions; and
       ``(4) the value of any in-kind services or administrative 
     costs provided to the applicant.
       ``(e) Funding for Resident Councils.--Of amounts 
     appropriated for activities under this section, not less than 
     25 percent 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--
       ``(A) 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) limitations on the number of animals in a unit, based 
     on unit size; and
       ``(C) prohibitions on--
       ``(i) certains breeds or types of animals that are 
     determined to be dangerous; and
       ``(ii) individual animals, based on certain factors, 
     including the size and weight of the animal.
       ``(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).''.

     SEC. 125. CITY OF INDIANAPOLIS FLEXIBLE GRANT DEMONSTRATION.

       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. 36. CITY OF INDIANAPOLIS FLEXIBLE GRANT DEMONSTRATION.

       ``(a) Definitions.--In this section:
       ``(1) Covered housing assistance.--The term `covered 
     housing assistance' means--
       ``(A)(i) operating assistance under section 9 of the United 
     States Housing Act of 1937 (as in existence on the day before 
     the effective date of the Public Housing Reform and 
     Responsibility Act of 1997), modernization assistance under 
     section 14 of the United States Housing Act of 1937 (as in 
     existence on the day before the effective date of the Public 
     Housing Reform and Responsibility Act of 1997); and
       ``(ii) assistance for the certificate and voucher programs 
     under section 8 of the United States Housing Act of 1937 (as 
     in existence on the day before the effective date of the 
     Public Housing Reform and Responsibility Act of 1997);
       ``(B) assistance for public housing under the Capital and 
     Operating Funds established under section 9; and
       ``(C) tenant-based rental assistance under section 8.
       ``(2) City.--The term `City' means the city of 
     Indianapolis, Indiana.
       ``(b) Purpose.--The Secretary shall carry out a 
     demonstration program in accordance with this section under 
     which the City, in

[[Page S10084]]

     coordination with the public housing agency of the City--
       ``(1) may receive and combine program allocations of 
     covered housing assistance; and
       ``(2) shall have the flexibility to design creative 
     approaches for providing and administering Federal housing 
     assistance that--
       ``(A) provide incentives to low-income families with 
     children whose head of the household is employed, seeking 
     employment, or preparing for employment by participating in a 
     job training or educational program, or any program that 
     otherwise assists individuals in obtaining employment and 
     attaining economic self-sufficiency;
       ``(B) reduce costs of Federal housing assistance and 
     achieve greater cost-effectiveness in Federal housing 
     assistance expenditures;
       ``(C) increase the stock of affordable housing and housing 
     choices for low-income families;
       ``(D) increase homeownership among low-income families; and
       ``(E) achieve such other purposes with respect to low-
     income families, as determined by the City in coordination 
     with the public housing agency.
       ``(c) Program Allocation.--In each fiscal year, the amount 
     made available to the City under this section shall be equal 
     to the sum of the amounts that would otherwise be made 
     available to the public housing agency of the City under the 
     provisions of this Act described in subparagraphs (A) through 
     (C) of subsection (a)(1).
       ``(d) Applicability of Program Requirements.--
       ``(1) In general.--In each fiscal year of the demonstration 
     program under this section, amounts made available to the 
     City under this section shall be subject to the same terms 
     and conditions as those amounts would be subject if made 
     available under the provisions of this Act pursuant to which 
     covered housing assistance is otherwise made available to the 
     public housing agency of the City under this Act, except 
     that--
       ``(A) the Secretary may waive any such term or condition to 
     the extent that the Secretary determines such action to be 
     appropriate to carry out the demonstration program under this 
     section; and
       ``(B) the City may combine the amounts made available and 
     use the amounts for any activity eligible under each such 
     program under section 8 or 9.
       ``(2) Number of families assisted.--In carrying out the 
     demonstration program under this section, the City shall 
     assist substantially the same total number of eligible low-
     income families as would have otherwise been served by the 
     public housing agency of the City.
       ``(3) Protection of recipients.--Nothing is this section 
     shall be construed to authorize the termination of assistance 
     to any recipient of assistance under this Act before the date 
     of enactment of this section, as a result of the 
     implementation of the demonstration program under this 
     section.
       ``(e) Plan Requirement.--In carrying out this section, the 
     Secretary may establish a streamlined public housing agency 
     plan and planning process for the City in accordance with 
     section 5A.
       ``(f) Effect on Ability To Compete for Other Categorical 
     Programs.--Nothing in this section shall be construed to 
     affect the ability of the City (or the public housing agency 
     of the City) to compete or otherwise apply for or receive 
     assistance under any other housing assistance program 
     administered by the Secretary.
       ``(g) Performance Standards.--The Secretary and the City 
     shall collectively establish standards for evaluating the 
     performance of the City in meeting the goals set forth in 
     subsection (b) including--
       ``(1) moving dependent low-income families to economic 
     self-sufficiency;
       ``(2) reducing the per-family cost of providing housing 
     assistance;
       ``(3) expanding the stock of affordable housing and housing 
     choices of low-income families;
       ``(4) increasing the number of homeownership opportunities 
     for low-income families; and
       ``(5) any other performance goals established by the 
     Secretary and the City.
       ``(h) Records and Reports.--
       ``(1) Records.--The City shall maintain such records as the 
     Secretary may require in order to--
       ``(A) document the amounts received by the City under this 
     Act, and the disposition of those amounts under the 
     demonstration program under this section;
       ``(B) ensure compliance by the City with this section; and
       ``(C) evaluate the performance of the City under the 
     demonstration program under this section.
       ``(2) Reports.--
       ``(A) In general.--The City shall annually submit to the 
     Secretary a report in a form and at a time specified by the 
     Secretary.
       ``(B) Contents.--Each report under this paragraph shall 
     include--
       ``(i) documentation of the use of funds made available to 
     the City under this section;
       ``(ii) such data as the Secretary may request to assist the 
     Secretary in evaluating the demonstration program under this 
     section; and
       ``(iii) a description and analysis of the effect of 
     assisted activities in addressing the objectives of the 
     demonstration program under this section.
       ``(3) Access to documents by the secretary and comptroller 
     general.--The Secretary and the Comptroller General of the 
     United States, or any duly authorized representative of the 
     Secretary or the Comptroller General, shall have access for 
     the purpose of audit and examination to any books, documents, 
     papers, and records maintained by the City that relate to the 
     demonstration program under this section.
       ``(i) Performance Review and Evaluation.--
       ``(1) Performance review.--Based on the performance 
     standards established under subsection (g), the Secretary 
     shall monitor the performance of the City in providing 
     assistance under this section.
       ``(2) Status report.--Not later than 60 days after the last 
     day of the second year of the demonstration program under 
     this section, the Secretary shall submit to Congress an 
     interim report on the status of the demonstration program and 
     the progress of the City in achieving the purposes of the 
     demonstration program under subsection (b).
       ``(3) Termination and Evaluation.--
       ``(A) Termination.--The demonstration program under this 
     section shall terminate not less than 2 and not more than 5 
     years after the date on which the program is commenced under 
     this section.
       ``(B) Evaluation.--Not later than 6 months after the 
     termination of the demonstration program under this section, 
     the Secretary shall submit to Congress a final report, which 
     shall include--
       ``(i) an evaluation the effectiveness of the activities 
     carried out under the demonstration program under this 
     section; and
       ``(ii) any findings and recommendations of the Secretary 
     for any appropriate legislative action.''.
                 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:
       ``(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

[[Page S10085]]

     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, 
     including a preference for families residing in public 
     housing who are victims of a crime of violence (as that term 
     is defined in section 16 of title 18, United States Code) 
     that has been reported to an appropriate law enforcement 
     agency.
       ``(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.
       ``(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

[[Page S10086]]

     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 relocation of witnesses and 
     victims of crime.--
       ``(A) In general.--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) Victims of crime.--
       ``(i) In general.--Of amounts made available for assistance 
     under this section in each fiscal year, the Secretary shall 
     make available such sums as may be necessary for the 
     relocation of families residing in public housing who are 
     victims of a crime of violence (as that term is defined in 
     section 16 of title 18, United States Code) that has been 
     reported to an appropriate law enforcement agency.
       ``(ii) Notice.--A public housing agency that receives 
     amounts under this subparagraph shall establish procedures 
     for providing notice of the availability of that assistance 
     to families that may be eligible for that assistance.''.
       (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.

       (a) In general.--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)--
       (i) by striking ``(i) participates'' and all that follows 
     through ``(ii) demonstrates'' and inserting ``demonstrates''; 
     and
       (ii) by inserting ``, except that the Secretary may provide 
     for the consideration of public assistance in the case of an 
     elderly family or a disabled family'' after ``other than 
     public assistance'';
       (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

[[Page S10087]]

     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.'';
       (3) by striking paragraphs (3) and (4) and inserting the 
     following:
       ``(3) Inspections and contract conditions.--
       ``(A) In general.--Each contract for the purchase of a unit 
     to be assisted under this section shall--
       ``(i) provide for pre-purchase inspection of the unit by an 
     independent professional; and
       ``(ii) require that any cost of necessary repairs be paid 
     by the seller.
       ``(B) Annual inspections not required.--The requirement 
     under subsection (o)(8)(A)(ii) for annual inspections shall 
     not apply to units assisted under this section.
       ``(4) Other authority of the secretary.--The Secretary 
     may--
       ``(A) limit the term of assistance for a family assisted 
     under this subsection; and
       ``(B) modify the requirements of this subsection as the 
     Secretary determines to be necessary to make appropriate 
     adaptations for lease-purchase agreements.'';
       (4) by striking paragraph (5); and
       (5) by redesignating paragraphs (6) through (8) as 
     paragraphs (5) through (7), respectively.
       (b) Demonstration.--
       (1) In general.--With the consent of the affected public 
     housing agencies, the Secretary may carry out (or contract 
     with 1 or more entities to carry out) a demonstration program 
     under section 8(y) of the United States Housing Act of 1937 
     (42 U.S.C. 1437f(y)) to expand homeownership opportunities 
     for low-income families.
       (2) Report.--The Secretary shall report annually to 
     Congress on activities conducted under this subsection.

     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.--
       ``(1) In general.--Notwithstanding any other provision of 
     this Act, in the case of assistance attached to a structure, 
     for the purpose of increasing security for the residents of a 
     public housing project, 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).
       ``(2) Rent requirements.--With respect to any assistance 
     provided by an owner under this subsection, the Secretary 
     may--
       ``(A) permit the owner to establish such rent requirements 
     and other terms and conditions of occupancy that the 
     Secretary considers to be appropriate; and
       ``(B) require the owner to submit an application for those 
     rent requirements, which application 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 on 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''.

[[Page S10088]]

       (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 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(1)) by reason of drug-related criminal 
     activity (as that term is defined in section 305(3)) 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.--
       (1) In general.--Notwithstanding any other provision of 
     law, a public housing agency shall establish standards that 
     prohibit admission to the program or admission to federally 
     assisted housing for any household with a member--
       (A) who the public housing agency determines is engaging in 
     the illegal use of a controlled substance; or
       (B) with respect to whom the public housing agency 
     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.
       (2) Owners of federally assisted housing.--The Secretary 
     may require any owner of federally assisted housing to 
     establish admission standards under this subsection.
       (3) Consideration of rehabilitation.--In determining 
     whether, pursuant to paragraph (1)(B), 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 may consider whether such household 
     member--
       (A) 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);
       (B) 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
       (C) 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).
       (c) Procedure for Receipt of Information From a Drug Abuse 
     Treatment Facility About the Current Illegal Use of a 
     Controlled Substance.--
       (1) Definitions.--In this subsection:
       (A) Drug abuse treatment facility.--The term ``drug abuse 
     treatment facility'' means--
       (i) an entity other than a general medical care facility; 
     or
       (ii) an identified unit within a general medical care 
     facility which holds itself out as providing, and provides, 
     diagnosis, treatment, or referral for treatment with respect 
     to the illegal use of a controlled substance.
       (B) Controlled substance.--The term ``controlled 
     substance'' has the meaning given the term in section 102 of 
     the Controlled Substances Act (21 U.S.C. 802).
       (C) Currently engaging in the illegal use of a controlled 
     substance.--The term ``currently engaging in the illegal use 
     of a controlled substance'' means the illegal use of a 
     controlled substance that occurred recently enough to justify 
     a reasonable belief that an applicant's illegal use of a 
     controlled substance is current or that continuing illegal 
     use of a controlled substance by the applicant is a real and 
     ongoing problem.
       (2) Authority.--Notwithstanding any other provision of law 
     other than the Public Health Service Act (42 U.S.C. 201 et 
     seq.), a public housing agency may require each person who 
     applies for admission to public housing to sign 1 or more 
     forms of written consent authorizing the public housing 
     agency to receive information from a drug abuse treatment 
     facility that is solely related to whether the applicant is 
     currently engaging in the illegal use of a controlled 
     substance.
       (3) Restrictions to protect the confidentiality of an 
     applicant's records.--
       (A) Limitation on the kind and amount of information 
     requested on form of written consent.--In a form of written 
     consent, a public housing agency may request only whether the 
     drug abuse treatment facility has reasonable cause to believe 
     that the applicant is currently engaging in the illegal use 
     of a controlled substance.
       (B) Records management.--Each public housing agency that 
     receives information under this subsection from a drug abuse 
     treatment facility shall establish and implement a system of 
     records management that ensures that any information received 
     by the public housing agency under this subsection--
       (i) is maintained confidentially in accordance with section 
     543 of the Public Health Service Act (12 U.S.C. 290dd-2);
       (ii) is not misused or improperly disseminated; and
       (iii) is destroyed, as applicable--

       (I) not later than 5 business days after the date on which 
     the public housing agency gives final approval for an 
     application for admission; or
       (II) if the public housing agency denies the application 
     for admission, in a timely manner after the date on which the 
     statute of limitations for the commencement of a civil action 
     from the applicant based upon that denial of admission has 
     expired.

       (C) Expiration of written consent.--In addition to the 
     requirements of subparagraph (B), an applicant's signed 
     written consent shall expire automatically after the public 
     housing agency has made a final decision to either approve or 
     deny the applicant's application for admittance to public 
     housing.
       (4) Restrictions to prohibit the discriminatory treatment 
     of applicants.--
       (A) Forms signed.--A public housing agency may only require 
     an applicant for admission to public housing to sign 1 or 
     more forms of written consent under this subsection if the 
     public housing agency requires all such applicants to sign 
     the same form or forms of written consent.
       (B) Circumstances of inquiry.--A public housing agency may 
     only make an inquiry to a drug abuse treatment facility under 
     this subsection if--
       (i) the public housing agency makes the same inquiry with 
     respect to all applicants; or
       (ii) the public housing agency only makes the same inquiry 
     with respect to each and every applicant with respect to 
     whom--

       (I) the public housing agency receives information from the 
     criminal record of the applicant that indicates evidence of a 
     prior arrest or conviction; or
       (II) the public housing agency receives information from 
     the records of prior tenancy of the applicant that 
     demonstrates that the applicant--

       (aa) engaged in the destruction of property;
       (bb) engaged in violent activity against another person; or

[[Page S10089]]

       (cc) interfered with the right of peaceful enjoyment of the 
     premises of another tenant.
       (5) Fee permitted.--A drug abuse treatment facility may 
     charge a public housing agency a reasonable fee for 
     information provided under this subsection.
       (6) Disclosure permitted by drug abuse treatment 
     facilities.--A drug abuse treatment facility shall not be 
     liable for damages based on any information required to be 
     disclosed pursuant to this subsection if such disclosure is 
     consistent with section 543 of the Public Health Service Act 
     (42 U.S.C. 290dd-2).
       (7) Public housing agencies not required to make inquiries 
     to drug abuse treatment facilities.--A public housing agency 
     shall not be liable for damages based on its decision not to 
     require each person who applies for admission to public 
     housing to sign 1 or more forms of written consent 
     authorizing the public housing agency to receive information 
     from a drug abuse treatment facility under this subsection.
       (8) Effective date.--This subsection shall take effect upon 
     enactment and without the necessity of guidance from, or any 
     regulation issued by, the Secretary.
       (d) Study and Report.--Not later than 1 year after the date 
     of enactment of this Act, the Comptroller General of the 
     United States shall conduct a study, and submit to the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate a report that includes information relating to--
       (1) the proportion of United States public housing agencies 
     that screen applicants for drug and alcohol addiction;
       (2) the extent, if any, to which the screening described in 
     paragraph (1), alone or in combination with other 
     initiatives, has reduced crime in public housing; and
       (3) the relative value of different types of information 
     used by public housing agencies in the screening process 
     described in paragraph (1), including criminal records, 
     credit histories, tenancy records, and information from drug 
     abuse treatment facilities on current illegal drug use of 
     applicants (as that term is defined in subsection (c)(1)).
       (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.
       (f) Ineligibility of Sexually Violent Predators for 
     Admission to Public Housing.--
       (1) In general.--Notwithstanding any other provision of 
     law, a public housing agency shall prohibit admission to 
     public or assisted housing of any family that includes any 
     individual who is a sexually violent predator.
       (2) Definition.--In this subsection, the term ``sexually 
     violent predator'' means an individual who--
       (A) is a sexually violent predator (as that term is defined 
     in section 170101(a)(3) of the Violent Crime Control and Law 
     Enforcement Act of 1994 (42 U.S.C. 14071(a)(3))); and
       (B) is subject to a registration requirement under section 
     170101(a)(1)(B) or 170102(c) of the Violent Crime Control and 
     Law Enforcement Act of 1994 (42 U.S.C. 14071(a)(1)(B), 
     14072(c)), as provided under section 170101(b)(6)(B) or 
     170102(d)(2), respectively, of that Act.

     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 paragraph (2), 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 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) Information Regarding Crimes Committed By Sexually 
     Violent Predators and Crimes Against Children.--
       (1) Definition of appropriate law enforcement agency.--In 
     this subsection, the term ``appropriate law enforcement 
     agency'' means--
       (A) the Federal Bureau of Investigation;
       (B) a State law enforcement agency designated as a 
     registration agency under a State registration program under 
     subtitle A of title XVII of the Violent Crime Control and Law 
     Enforcement Act of 1994 (42 U.S.C. 14071 et seq.); or
       (C) any local law enforcement agency authorized by a State 
     law enforcement agency described in subparagraph (B).
       (2) Provision of information.--Notwithstanding any other 
     provision of law other than subsection (a)(2), the 
     appropriate law enforcement agency shall provide to a public 
     housing agency any information collected under the national 
     database established pursuant to section 170102 of the 
     Violent Crime Control and Law Enforcement Act of 1994 (42 
     U.S.C. 14072), or under a State registration program under 
     subtitle A of title XVII of the Violent Crime Control and Law 
     Enforcement Act of 1994 (42 U.S.C. 14071 et seq.), as 
     applicable, regarding an adult who is an applicant for, or a 
     resident of, federally assisted housing, for purposes of 
     applicant screening, lease enforcement, or eviction, if the 
     public housing agency--
       (A) requests the information; and
       (B) presents to the appropriate law enforcement agency a 
     written authorization, signed by the adult at issue, for the 
     release of that information to the public housing agency or 
     other owner of the federally assisted housing.
       (c) Opportunity To Dispute.--Before an adverse action is 
     taken with regard to assistance for public housing on the 
     basis of a criminal record, the public housing agency shall 
     provide the resident or applicant with a copy of the criminal 
     record and an opportunity to dispute the accuracy and 
     relevance of that record.
       (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) Fee.--A public housing agency may be charged a 
     reasonable fee for information provided under this section.
       (f) 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

[[Page S10090]]

     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. NATIONAL COMMISSION ON HOUSING ASSISTANCE PROGRAM 
                   COSTS.

       (a) Definitions.--In this section--
       (1) the term ``Commission'' means the National Commission 
     on Housing Assistance Program Costs established in subsection 
     (b);
       (2) the term ``Federal assisted housing programs'' means--
       (A) the public housing program under the United States 
     Housing Act of 1937;
       (B) the certificate program for rental assistance under 
     section 8(b)(1) of the United States Housing Act of 1937;
       (C) the voucher program for rental assistance under section 
     8(o) of the United States Housing Act of 1937;
       (D) the programs for project-based assistance under section 
     8 of the United States Housing Act of 1937;
       (E) the rental assistance payments program under section 
     521(a)(2)(A) of the Housing Act of 1949;
       (F) the program for housing for the elderly under section 
     202 of the Housing Act of 1959;
       (G) the program for housing for persons with disabilities 
     under section 811 of the Cranston-Gonzalez National 
     Affordable Housing Act;
       (H) the program for financing housing by a loan or mortgage 
     insured under section 221(d)(3) of the National Housing Act 
     that bears interest at a rate determined under the proviso of 
     section 221(d)(5) of such Act;
       (I) the program under section 236 of the National Housing 
     Act;
       (J) the program for constructed or substantial 
     rehabilitation under section 8(b)(2) of the United States 
     Housing Act of 1937, as in effect before October 1, 1983; and
       (K) any other program for housing assistance administered 
     by the Secretary of Housing and Urban Development or the 
     Secretary of Agriculture, under which occupancy in the 
     housing assisted or housing assistance provided is based on 
     income, as the Commission may determine; and
       (3) the term ``Secretary'' means the Secretary of Housing 
     and Urban Development.
       (b) Establishment; Purpose.--
       (1) Establishment.--There is established a commission to be 
     known as the ``National Commission on Housing Assistance 
     Program Costs''.
       (2) Purpose.--The purpose of the Commission shall be to 
     provide an objective and independent accounting and analysis 
     of the full cost to the Federal Government, public housing 
     agencies, State and local governments, and other entities, 
     per assisted household, of the Federal assisted housing 
     programs, taking into account the qualitative differences 
     among Federal assisted housing programs in accordance with 
     applicable standards of the Department of Housing and Urban 
     Development.
       (c) Membership.--
       (1) Appointment.--The Commission shall be composed of 12 
     members, of whom--
       (A) 1 member shall be the Inspector General of the 
     Department of Housing and Urban Development;
       (B) 2 members shall be appointed by the Secretary;
       (C) 2 members shall be appointed by the Chairman and 
     Ranking Minority Member of the Subcommittee on Housing 
     Opportunity and Community Development of the Committee on 
     Banking, Housing, and Urban Affairs of the Senate and the 
     Chairman and Ranking Minority Member of the Subcommittee on 
     VA, HUD, and Independent Agencies of the Committee on 
     Appropriations of the Senate;
       (D) 2 members shall be appointed by the Chairman and 
     Ranking Minority Member of the Subcommittee on Housing and 
     Community Opportunity of the Committee on Banking and 
     Financial Services of the House of Representatives and the 
     Chairman and Ranking Minority Member of the Subcommittee on 
     VA, HUD, and Independent Agencies of the Committee on 
     Appropriations of the House of Representatives;
       (E) 1 member shall be appointed by the Majority Leader of 
     the Senate;
       (F) 1 member shall be appointed by the Majority Leader of 
     the House of Representatives;
       (G) 1 member shall be appointed by the Minority Leader of 
     the Senate;
       (H) 1 member shall be appointed by the Minority Leader of 
     the House of Representatives; and
       (I) 1 member shall be an ex-officio member appointed by the 
     Comptroller General of the United States, from among officers 
     and employees of the General Accounting Office.
       (2) Initial appointments.--The initial members of the 
     Commission shall be appointed not later than 90 days after 
     the date of enactment of this Act.
       (3) Qualifications.--The members of the Commission 
     appointed under paragraph (1)--
       (A) shall all be experts in the field of accounting, 
     economics, cost analysis, finance, or management; and
       (B) shall include--
       (i) 1 individual who is a distinguished academic engaged in 
     teaching or research;
       (ii) 1 individual who is a business leader, financial 
     officer, or management expert; and
       (iii) 1 individual who is--

       (I) a financial expert employed in the private sector; and
       (II) knowledgeable about housing and real estate issues.

       (4) Additional qualifications.--In selecting members of the 
     Commission for appointment, the individual making the 
     appointment shall ensure that each member selected is able to 
     analyze the Federal assisted housing programs on an objective 
     basis, and that no individual is appointed to the Commission 
     if that individual has a personal financial interest, 
     professional association, or business interest in any Federal 
     assisted housing program, such that it would pose a conflict 
     of interest if that individual were appointed to the 
     Commission.
       (d) Organization.--
       (1) Chairperson.--The Commission shall elect a chairperson 
     from among members of the Commission.
       (2) Quorum.--A majority of the members of the Commission 
     shall constitute a quorum for the transaction of business, 
     but a lesser number may hold hearings.
       (3) Voting.--
       (A) In general.--Except as provided in subparagraph (B), 
     each member of the Commission shall be entitled to 1 vote, 
     which shall be equal to the vote of every other member of the 
     Commission.
       (B) Exception.--The member of the Commission appointed 
     pursuant to subsection (c)(1)(I) shall be a nonvoting member 
     of the Commission.
       (4) Vacancies.--Any vacancy on the Commission shall not 
     affect its powers, but shall be filled in the manner in which 
     the original appointment was made.
       (5) Prohibition on additional pay.--Members of the 
     Commission shall serve without compensation.
       (6) Travel expenses.--Each member shall receive travel 
     expenses, including per diem

[[Page S10091]]

     in lieu of subsistence, in accordance with sections 5702 and 
     5703 of title 5, United States Code.
       (e) Functions.--
       (1) In general.--The Commission shall--
       (A) analyze the full cost to the Federal Government, public 
     housing agencies, State and local governments, and other 
     parties, per assisted household, of the Federal assisted 
     housing programs, and shall conduct the analysis on a 
     nationwide and regional basis and in a manner such that 
     accurate per unit cost comparisons may be made between 
     Federal assisted housing programs, including grants, direct 
     subsidies, tax concessions, Federal mortgage insurance 
     liability, periodic renovation and rehabilitation, and 
     modernization costs, demolition costs, and other ancillary 
     costs such as security; and
       (B) measure and evaluate qualitative differences among 
     Federal assisted housing programs in accordance with 
     applicable standards of the Department of Housing and Urban 
     Development.
       (2) Final report.--Not later than 24 months after the 
     initial members of the Commission are appointed pursuant to 
     subsection (c)(2), the Commission shall submit to the 
     Secretary and to the Congress a final report which shall 
     contain the results of the analysis and estimates required 
     under paragraph (1).
       (3) Limitation.--The Commission may not make any 
     recommendations regarding Federal housing policy.
       (f) Powers.--
       (1) Hearings.--The Commission may, for the purpose of 
     carrying out this section, hold such hearings and sit and act 
     at such times and places as the Commission may find 
     advisable.
       (2) Rules and regulations.--The Commission may adopt such 
     rules and regulations as may be necessary to establish its 
     procedures and to govern the manner of its operations, 
     organization, and personnel.
       (3) Assistance from federal agencies.--
       (A) Information.--The Commission may request from any 
     department or agency of the United States, and such 
     department or agency shall provide to the Commission in a 
     timely fashion, such data and information as the Commission 
     may require to carry out this section.
       (B) Administrative support.--The General Services 
     Administration shall provide to the Commission, on a 
     reimbursable basis, such administrative support services as 
     the Commission may request.
       (C) Personnel details and technical assistance.--Upon the 
     request of the chairperson of the Commission, the Secretary 
     shall, to the extent possible and subject to the discretion 
     of the Secretary--
       (i) detail any of the personnel of the Department of 
     Housing and Urban Development, on a nonreimbursable basis, to 
     assist the Commission in carrying out its duties under this 
     section; and
       (ii) provide the Commission with technical assistance in 
     carrying out its duties under this section.
       (4) Information from local housing and management 
     authorities.--The Commission shall have access, for the 
     purpose of carrying out its functions under this section, to 
     any books, documents, papers, and records of a local housing 
     and management authority that are pertinent to this section 
     and assistance received pursuant to this section.
       (5) Mails.--The Commission may use the United States mails 
     in the same manner and under the same conditions as other 
     Federal agencies.
       (6) Contracting.--The Commission may, to the extent and in 
     such amounts as are provided in appropriations Acts, enter 
     into contracts necessary to carry out its duties under this 
     section.
       (7) Staff.--
       (A) Executive director.--The Commission shall appoint an 
     executive director of the Commission who shall be compensated 
     at a rate fixed by the Commission, not to exceed the rate 
     established for level V of the Executive Schedule under title 
     5, United States Code.
       (B) Personnel.--In addition to the executive director, the 
     Commission may appoint and fix the compensation of such 
     personnel as it deems advisable, in accordance with the 
     provisions of title 5, United States Code, governing 
     appointments to the competitive service, and the provisions 
     of chapter 51 and subchapter III of chapter 53 of such title, 
     relating to classification and General Schedule pay rates.
       (C) Limitation.--Subparagraphs (A) and (B) shall be 
     effective only to the extent and in such amounts as are 
     provided in appropriations Acts.
       (D) Selection criteria.--In appointing an executive 
     director and staff, the Commission shall ensure that the 
     individuals appointed can conduct any functions they may have 
     regarding the Federal assisted housing programs on an 
     objective basis and that no such individual has a personal 
     financial or business interest in any such program.
       (8) Advisory committee.--The Commission shall be considered 
     an advisory committee within the meaning of the Federal 
     Advisory Committee Act (5 U.S.C. App.).
       (g) Funding.--Of any amounts made available to the 
     Department of Housing and Urban Development for each of 
     fiscal years 1998 and 1999, there shall be available 
     $4,500,000 to carry out this section.
       (h) Sunset.--The Commission shall terminate upon the 
     expiration of the 24-month period beginning on the date on 
     which the initial members of the Commission are appointed 
     pursuant to subsection (c)(2).

     SEC. 405. 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. 406. 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. 407. TREATMENT OF PUBLIC HOUSING AGENCY REPAYMENT 
                   AGREEMENT.

       (a) Limitation on Secretary.--During the 2-year period 
     beginning on the date of the enactment of this Act, if the 
     Housing Authority of the City of Las Vegas, Nevada, is 
     otherwise in compliance with the Repayment Lien Agreement and 
     Repayment Plan approved by the Secretary on February 12, 
     1997, the Secretary of Housing and Urban Development shall 
     not take any action that has the effect of reducing the 
     inventory of senior citizen housing owned by such housing 
     authority that does not receive assistance from the 
     Department of Housing and Urban Development.
       (b) Alternative Repayment Options.--During the period 
     referred to in subsection (a), the Secretary shall assist the 
     housing authority referred to in such subsection to identify 
     alternative repayment options to the plan referred to in such 
     subsection and to execute an amended repayment plan that will 
     not adversely affect the housing referred to in such 
     subsection.
       (c) Rule of Construction.--This section may not be 
     construed to alter--
       (1) any lien held by the Secretary pursuant to the 
     agreement referred to in subsection (a); or
       (2) the obligation of the housing authority referred to in 
     subsection (a) to close all remaining items contained in the 
     Inspector General audits numbered 89 SF 1004 (issued January 
     20, 1989), 93 SF 1801 (issued October 30, 1993), and 96 SF 
     1002 (issued February 23, 1996).

     SEC. 408. CEILING RENTS FOR CERTAIN SECTION 8 PROPERTIES.

       Notwithstanding any other provision of law, upon the 
     request of the owner of the project, the Secretary may 
     establish ceiling rents for the Marshall Field Garden 
     Apartments Homes in Chicago, Illinois, if the ceiling rents 
     are, in the determination of the Secretary, equivalent to 
     rents for comparable properties.

     SEC. 409. 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. 410. 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) Local housing assistance plans.--Subsection (c) of 
     section 213 of the Housing and Community Development Act of 
     1974 (42 U.S.C. 1439(c)).

[[Page S10092]]

       (4) 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).
       (5) Public housing childhood development.--Section 222 of 
     the Housing and Urban-Rural Recovery Act of 1983 (12 U.S.C. 
     1701z-6 note).
       (6) Indian housing childhood development.--Section 518 of 
     the Cranston-Gonzalez National Affordable Housing Act (12 
     U.S.C. 1701z-6 note).
       (7) Public housing one-stop perinatal services 
     demonstration.--Section 521 of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 1437t note).
       (8) Public housing mincs demonstration.--Section 522 of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     1437f note).
       (9) Public housing energy efficiency demonstration.--
     Section 523 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 1437g note).
       (10) Public and assisted housing youth sports programs.--
     Section 520 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 11903a).

     SEC. 411. GUARANTEE OF LOANS FOR ACQUISITION OF PROPERTY.

       Notwithstanding section 108(b) of the Housing and Community 
     Development Act of 1974 (42 U.S.C. 5308(b)), with respect to 
     any eligible public entity (or any public agency designated 
     by an eligible public entity) receiving assistance under that 
     section (in this section referred to as the ``issuer''), a 
     guarantee or commitment to guarantee may be made with respect 
     to any note or other obligation under such section 108 if the 
     issuer's total outstanding notes or obligations guaranteed 
     under that section (excluding any amount defeased under the 
     contract entered into under section 108(d)(1)(A) of the 
     Housing and Community Development Act of 1974 (42 U.S.C. 
     5308(d)(1)(A))) would thereby exceed an amount equal to 5 
     times the amount of the grant approval for the issuer 
     pursuant to section 106 or 107 of the Housing and Community 
     Development Act of 1974, if the issuer's total outstanding 
     notes or obligations guaranteed under that section (excluding 
     any amount defeased under the contract entered into under 
     section 108(d)(1)(A) of the Housing and Community Development 
     Act of 1974 (42 U.S.C. 5308(d)(1)(A))) would not thereby 
     exceed an amount equal to 6 times the amount of the grant 
     approval for the issuer pursuant to section 106 or 107 of the 
     Housing and Community Development Act of 1974, if the 
     additional grant amount is used only for the purpose of 
     acquiring or transferring the ownership of the production 
     facility located at the following address in order to 
     maintain production: One Prince Avenue, Lowell, Massachusetts 
     01852.

     SEC. 412. PROHIBITION ON USE OF ASSISTANCE FOR EMPLOYMENT 
                   RELOCATION ACTIVITIES.

       Section 105 of the Housing and Community Development Act of 
     1974 (42 U.S.C. 5305) is amended by adding at the end the 
     following:
       ``(h) Prohibition on Use of Assistance for Employment 
     Relocation Activities.--Notwithstanding any other provision 
     of law, no amount from a grant under section 106 made in 
     fiscal year 1997 or any succeeding fiscal year may be used to 
     directly assist in the relocation of any industrial or 
     commercial plant, facility, or operation, from 1 area to 
     another area, if the relocation is likely to result in an 
     increase in the unemployment rate in the labor market area 
     from which the relocation occurs.''.

     SEC. 413. USE OF HOME FUNDS FOR PUBLIC HOUSING MODERNIZATION.

       Notwithstanding section 212(d)(5) of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 12742(d)(5)), 
     amounts made available to the City of Bismarck, North Dakota 
     or the State of North Dakota, under subtitle A of title II of 
     the Cranston-Gonzalez National Affordable Housing Act (42 
     U.S.C. 12741 et seq.) for fiscal year 1998, 1999, 2000, 2001, 
     or 2002, may be used to carry out activities authorized under 
     section 14 of the United States Housing Act of 1937 (42 
     U.S.C. 1437l) for the purpose of modernizing the Crescent 
     Manor public housing project located at 107 East Bowen 
     Avenue, in Bismarck, North Dakota, if--
       (1) the Burleigh County Housing Authority (or any successor 
     public housing agency that owns or operates the Crescent 
     Manor public housing project) has obligated all other Federal 
     assistance made available to that public housing agency for 
     that fiscal year; or
       (2) the Secretary of Housing and Urban Development 
     authorizes the use of those amounts for the purpose of 
     modernizing that public housing project, which authorization 
     may be made with respect to 1 or more of those fiscal years.

     SEC. 414. REPORT ON SINGLE FAMILY AND MULTIFAMILY HOMES.

       Not later than March 1, 1998, the Inspector General of the 
     Department of Housing and Urban Development shall submit to 
     Congress a report, which shall include information relating 
     to--
       (1) with respect to 1- to 4-family dwellings owned by the 
     Department of Housing and Urban Development as of November 1, 
     1997--
       (A) the total number of units in those dwellings;
       (B) the number and percentage of units in those dwellings 
     that are unoccupied, and their average period of vacancy, as 
     of that date; and
       (C) the number and percentage of units in those dwellings 
     that have been unoccupied for more than 1 year, as of that 
     date;
       (2) with respect to multifamily housing projects (as that 
     term is defined in section 203 of the Housing and Community 
     Development Amendments of 1978) owned by the Department of 
     Housing and Urban Development as of November 1, 1997--
       (A) the total number of units in those projects;
       (B) the number and percentage of units in those projects 
     that are unoccupied, and their average period of vacancy, as 
     of that date;
       (C) the number and percentage of units in those projects 
     that have been unoccupied for more than 1 year, as of that 
     date; and
       (D) the number and percentage of units in those projects 
     that are determined by the Inspector General to be 
     substandard, based on any--
       (i) lack of hot or cold piped water;
       (ii) lack of working toilets;
       (iii) regular and prolonged breakdowns in heating;
       (iv) dangerous electrical problems;
       (v) unsafe hallways or stairways;
       (vi) leaking roofs, windows, or pipes;
       (vii) open holes in walls and ceilings; and
       (viii) indications of rodent infestation;
       (3) the causes of the vacancies described in subparagraphs 
     (B) and (C) of paragraph (1), and subparagraphs (B) and (C) 
     of paragraph (2), and the programs of the Department of 
     Housing and Urban Development that are, as of November 1, 
     1997, targeted to rectifying those causes; and

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