[Congressional Record Volume 144, Number 94 (Wednesday, July 15, 1998)]
[House]
[Pages H5594-H5635]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                               AMENDMENTS

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

                               H.R. 4104

                         Offered By: Mr. Saxton

       Amendment No. 18: Page 109, after line 24, add the 
     following:
       Sec. 648. (a) Exception to Immunity From Attachment or 
     Execution.--Section 1610 of title 28, United States Code, is 
     amended by adding at the end the following new subsection:
       ``(f)(1)(A) Notwithstanding any other provision of law, 
     including but not limited to section 208(f) of the State 
     Department Basic Authorities Act (22 U.S.C. 4308(f)), and 
     except as provided in subparagraph (B), any property with 
     respect to which financial transactions are prohibited or 
     regulated pursuant to section 5(b) of the Trading with the 
     Enemy Act (50 U.S.C. App. 5(b)), section 620(a) of the 
     Foreign Assistance Act of 1961 (22 U.S.C. 2370(a)), sections 
     202 and 203 of the International Emergency Economic Powers 
     Act (50 U.S.C. 1701-1702), or any other proclamation, order, 
     regulation, or license issued pursuant thereto, shall be 
     subject to execution or attachment in aid of execution of any 
     judgment relating to a claim for which a foreign state 
     (including any agency or instrumentality of such State) is 
     not immune under section 1605(a)(7).
       ``(B) Subparagraph (A) shall not apply if, at the time the 
     property is expropriated or seized by the foreign state, the 
     property has been held in title by a natural person or, if 
     held in trust, has been held for the benefit of a natural 
     person or persons.
       ``(2)(A) At the request of any party in whose favor a 
     judgment has been issued with respect to a claim for which 
     the foreign state is not immune under section 1605(a)(7), the 
     Secretary of the Treasury and the Secretary of State shall 
     fully, promptly, and effectively assist any judgment creditor 
     or any court that has issued any such judgment in 
     identifying, locating, and executing against the property of 
     that foreign state or any agency or instrumentality of such 
     State.
       ``(B) In providing such assistance, the Secretaries--
       ``(i) may provide such information to the court under seal; 
     and
       ``(ii) shall provide the information in a manner sufficient 
     to allow the court to direct the United States Marshall's 
     office to promptly and effectively execute against that 
     property.''.
       (b) Conforming Amendment.--Section 1606 of title 28, United 
     States Code, is amended by inserting after ``punitive 
     damages'' the following: ``, except in any action under 
     section 1605(a)(7) or 1610(f)''.
       (c) Effective Date.--The amendments made by subsections (a) 
     and (b) shall apply to any claim for which a foreign state is 
     not immune under section 1605(a)(7) of title 28, United 
     States Code, arising before, on, or after the date of 
     enactment of this Act.

                               H.R. 4104

                       Offered By: Mr. Snowbarger

       Amendment No. 19: Page 39, line 13, insert after 
     ``$33,700,000'' the following: ``(increased by $2,800,000)''.
       Page 41, line 22, insert after ``$5,626,928,000'' the 
     following: ``(reduced by $2,800,000)''.
       Page 46, line 21, insert after ``$2,583,261,000'' the 
     following: ``(reduced by $2,800,000)''.

                               H.R. 4193

                        Offered By: Mr. DeFazio

       Amendment No. 2: Page 107, beginning at line 19, strike 
     section 328 (and redesignate the subsequent sections 
     accordingly).

[[Page H5595]]

                               H.R. 4193

                         Offered by: Mr. Riggs

       Amendment No. 3: At the end of the bill before the short 
     title insert:
       Sec.   . If the State of California has not made available 
     $130,000,000 by October 1, 1998, for the acquisition of lands 
     in the Headwaters National Forest and other lands in Humboldt 
     County, California, as required by section 501(b)(1) of title 
     V of Public Law 105-83, the $250,000,000 made available by 
     such title V from the Land and Water Conservation Fund for 
     purposes of such land acquisition shall cease to be available 
     for the purposes of such title V and shall be available only 
     for maintenance and improvement of national park system units 
     and $50,000,000 of such $250,000,000 amount may only be used 
     for maintenance and improvement of national park system units 
     that contain civil war sites.

                               H.R. 4193

                         Offered by: Mr. Riggs

       Amendment No. 4: At the end of the bill before the short 
     title insert:
       Sec. XX. None of the funds appropriated or otherwise made 
     available by this Act shall be used to pay the salaries and 
     expenses of personnel to carry out the acquisition of lands 
     under section 501 of Public law 105-83 unless, prior to 
     October 1, 1998, the State of California has provided the 
     contribution required under such section 501.

                               H.R. 4193

                         Offered by: Mr. Riggs

       Amendment No. 5: At the end of the bill before the short 
     title insert:
       Sec. XX. None of the funds appropriated or otherwise made 
     available by this Act shall be used to pay the salaries and 
     expenses of personnel to carry out the acquisition of lands 
     under section 501 of Public law 105-83.

                               H.R. 4193

                        Offered by: Mr. Sanders

       Amendment No. 6. In the item relating to ``DEPARTMENT OF 
     THE INTERIOR--Bureau of Land Management--payments in lieu of 
     taxes'', after the first dollar amount, insert the following: 
     ``(increased by $20,000,000)''.
       In the item relating to ``DEPARTMENT OF ENERGY--fossil 
     energy research and development'', after the dollar amount, 
     insert the following: ``(reduced by $50,000,000)''.

                               H.R. 4194

                         Offered by: Mr. Leach

       Amendment No. 12: Page 2, after line 6, insert the 
     following:
                       DIVISION A--APPROPRIATIONS
       Page 91, line 4, strike ``This Act'' and insert ``Titles I, 
     II, III, and IV of this Act''.
       At the end of the bill (after the short title), insert the 
     following:

           DIVISION B--HOUSING OPPORTUNITY AND RESPONSIBILITY

     SEC. 1001. SHORT TITLE AND TABLE OF CONTENTS.

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

           DIVISION B--HOUSING OPPORTUNITY AND RESPONSIBILITY

Sec. 1001. Short title and table of contents.
Sec. 1002. Permanent applicability.
Sec. 1003. Declaration of policy to renew American neighborhoods.

                      TITLE XI--GENERAL PROVISIONS

Sec. 1101. Statement of purpose.
Sec. 1102. Definitions.
Sec. 1103. Organization of public housing agencies.
Sec. 1104. Determination of adjusted income and median income.
Sec. 1105. Community work and family self-sufficiency requirements.
Sec. 1106. Local housing management plans.
Sec. 1107. Review of plans.
Sec. 1108. Reporting requirements.
Sec. 1109. Pet ownership.
Sec. 1110. Administrative grievance procedure.
Sec. 1111. Headquarters reserve fund.
Sec. 1112. Labor standards.
Sec. 1113. Nondiscrimination.
Sec. 1114. Prohibition on use of funds.
Sec. 1115. Inapplicability to Indian housing.
Sec. 1116. Regulations.

                       TITLE XII--PUBLIC HOUSING

                        Subtitle A--Block Grants

Sec. 1201. Block grant contracts.
Sec. 1202. Grant authority, amount, and eligibility.
Sec. 1203. Eligible and required activities.
Sec. 1204. Determination of grant allocation.
Sec. 1205. Sanctions for improper use of amounts.

           Subtitle B--Admissions and Occupancy Requirements

Sec. 1221. Low-income housing requirement.
Sec. 1222. Family eligibility.
Sec. 1223. Preferences for occupancy.
Sec. 1224. Admission procedures.
Sec. 1225. Family choice of rental payment.
Sec. 1226. Lease requirements.
Sec. 1227. Designated housing for elderly and disabled families.

                         Subtitle C--Management

Sec. 1231. Management procedures.
Sec. 1232. Housing quality requirements.
Sec. 1233. Employment of residents.
Sec. 1234. Resident councils and resident management corporations.
Sec. 1235. Management by resident management corporation.
Sec. 1236. Transfer of management of certain housing to independent 
              manager at request of residents.
Sec. 1237. Resident opportunity program.

                       Subtitle D--Homeownership

Sec. 1251. Resident homeownership programs.

Subtitle E--Disposition, Demolition, and Revitalization of Developments

Sec. 1261. Requirements for demolition and disposition of developments.
Sec. 1262. Demolition, site revitalization, replacement housing, and 
              choice-based assistance grants for developments.
Sec. 1263. Voluntary voucher system for public housing.

                Subtitle F--Mixed-Finance Public Housing

Sec. 1271. Authority.
Sec. 1272. Mixed-finance housing developments.
Sec. 1273. Mixed-finance housing plan.
Sec. 1274. Rent levels for housing financed with low-income housing tax 
              credit.
Sec. 1275. Carry-over of assistance for replaced housing.

                     Subtitle G--General Provisions

Sec. 1281. Payment of non-Federal share.
Sec. 1282. Authorization of appropriations for block grants.
Sec. 1283. Funding for operation safe home.
Sec. 1284. Funding for relocation of victims of domestic violence.

 TITLE XIII--CHOICE-BASED RENTAL HOUSING AND HOMEOWNERSHIP ASSISTANCE 
                        FOR LOW-INCOME FAMILIES

                         Subtitle A--Allocation

Sec. 1301. Authority to provide housing assistance amounts.
Sec. 1302. Contracts with PHA's.
Sec. 1303. Eligibility of PHA's for assistance amounts.
Sec. 1304. Allocation of amounts.
Sec. 1305. Administrative fees.
Sec. 1306. Authorizations of appropriations.
Sec. 1307. Conversion of section 8 assistance.
Sec. 1308. Recapture and reuse of annual contract project reserves 
              under choice-based housing assistance and section 8 
              tenant-based assistance programs.

   Subtitle B--Choice-Based Housing Assistance for Eligible Families

Sec. 1321. Eligible families and preferences for assistance.
Sec. 1322. Resident contribution.
Sec. 1323. Rental indicators.
Sec. 1324. Lease terms.
Sec. 1325. Termination of tenancy.
Sec. 1326. Eligible owners.
Sec. 1327. Selection of dwelling units.
Sec. 1328. Eligible dwelling units.
Sec. 1329. Homeownership option.
Sec. 1330. Assistance for rental of manufactured homes.

    Subtitle C--Payment of Housing Assistance on Behalf of Assisted 
                                Families

Sec. 1351. Housing assistance payments contracts.
Sec. 1352. Amount of monthly assistance payment.
Sec. 1353. Payment standards.
Sec. 1354. Reasonable rents.
Sec. 1355. Prohibition of assistance for vacant rental units.

            Subtitle D--General and Miscellaneous Provisions

Sec. 1371. Definitions.
Sec. 1372. Rental assistance fraud recoveries.
Sec. 1373. Study regarding geographic concentration of assisted 
              families.
Sec. 1374. Study regarding rental assistance.

               TITLE XIV--HOME RULE FLEXIBLE GRANT OPTION

Sec. 1401. Purpose.
Sec. 1402. Flexible grant program.
Sec. 1403. Covered housing assistance.
Sec. 1404. Program requirements.
Sec. 1405. Applicability of certain provisions.
Sec. 1406. Application.
Sec. 1407. Training.
Sec. 1408. Accountability.
Sec. 1409. Definitions.

   TITLE XV--ACCOUNTABILITY AND OVERSIGHT OF PUBLIC HOUSING AGENCIES

Subtitle A--Study of Alternative Methods for Evaluating Public Housing 
                                Agencies

Sec. 1501. In general.
Sec. 1502. Purposes.
Sec. 1503. Evaluation of various performance evaluation systems.
Sec. 1504. Consultation.
Sec. 1505. Contract to conduct study.
Sec. 1506. Report.
Sec. 1507. Funding.
Sec. 1508. Effective date.

         Subtitle B--Housing Evaluation and Accreditation Board

Sec. 1521. Establishment.
Sec. 1522. Membership.
Sec. 1523. Functions.
Sec. 1524. Powers.
Sec. 1525. Fees.
Sec. 1526. GAO audit.

    Subtitle C--Interim Applicability of Public Housing Management 
                           Assessment Program

Sec. 1531. Interim applicability.
Sec. 1532. Management assessment indicators.
Sec. 1533. Designation of PHA's.
Sec. 1534. On-site inspection of troubled PHA's.
Sec. 1535. Administration.

[[Page H5596]]

   Subtitle D--Accountability and Oversight Standards and Procedures

Sec. 1541. Audits.
Sec. 1542. Performance agreements for authorities at risk of becoming 
              troubled.
Sec. 1543. Performance agreements and CDBG sanctions for troubled 
              PHA's.
Sec. 1544. Option to demand conveyance of title to or possession of 
              public housing.
Sec. 1545. Removal of ineffective PHA's.
Sec. 1546. Mandatory takeover of chronically troubled PHA's.
Sec. 1547. Treatment of troubled PHA's.
Sec. 1548. Maintenance of records.
Sec. 1549. Annual reports regarding troubled PHA's.
Sec. 1550. Applicability to resident management corporations.
Sec. 1551. Advisory council for Housing Authority of New Orleans.

               TITLE XVI--REPEALS AND RELATED AMENDMENTS

      Subtitle A--Repeals, Effective Date, and Savings Provisions

Sec. 1601. Effective date and repeal of United States Housing Act of 
              1937.
Sec. 1602. Other repeals.

  Subtitle B--Other Provisions Relating to Public Housing and Rental 
                          Assistance Programs

Sec. 1621. Allocation of elderly housing amounts.
Sec. 1622. Pet ownership.
Sec. 1623. Review of drug elimination program contracts.
Sec. 1624. Amendments to Public and Assisted Housing Drug Elimination 
              Act of 1990.

  Subtitle C--Limitations Relating to Occupancy in Federally Assisted 
                                Housing

Sec. 1641. Screening of applicants.
Sec. 1642. Termination of tenancy and assistance for illegal drug users 
              and alcohol abusers.
Sec. 1643. Lease requirements.
Sec. 1644. Availability of criminal records for tenant screening and 
              eviction.
Sec. 1645. Definitions.

      TITLE XVII--AFFORDABLE HOUSING AND MISCELLANEOUS PROVISIONS

Sec. 1701. Rural housing assistance.
Sec. 1702. Treatment of occupancy standards.
Sec. 1703. Implementation of plan.
Sec. 1704. Income eligibility for HOME and CDBG programs.
Sec. 1705. Prohibition of use of CDBG grants for employment relocation 
              activities.
Sec. 1706. Regional cooperation under CDBG economic development 
              initiative.
Sec. 1707. Use of American products.
Sec. 1708. Consultation with affected areas in settlement of 
              litigation.
Sec. 1709. Treatment of PHA repayment agreement.
Sec. 1710. Use of assisted housing by aliens.
Sec. 1711. Protection of senior homeowners under reverse mortgage 
              program.
Sec. 1712. Conversion of section 8 tenant-based assistance to project-
              based assistance in the Borough of Tamaqua.
Sec. 1713. Housing counseling.
Sec. 1714. Transfer of surplus real property for providing housing for 
              low- and moderate-income families.
Sec. 1715. Effective date.

     SEC. 1002. PERMANENT APPLICABILITY.

       Upon effectiveness pursuant to section 1601(a), the 
     provisions of this division and the amendments made by this 
     division shall apply thereafter, except to the extent 
     otherwise specifically provided in this division or the 
     amendments made by this division.

     SEC. 1003. DECLARATION OF POLICY TO RENEW AMERICAN 
                   NEIGHBORHOODS.

       The Congress hereby declares that--
       (1) the Federal Government has a responsibility to promote 
     the general welfare of the Nation--
       (A) by using Federal resources to aid families and 
     individuals seeking affordable homes that are safe, clean, 
     and healthy and, in particular, assisting responsible, 
     deserving citizens who cannot provide fully for themselves 
     because of temporary circumstances or factors beyond their 
     control;
       (B) by working to ensure a thriving national economy and a 
     strong private housing market; and
       (C) by developing effective partnerships among the Federal 
     Government, State and local governments, and private entities 
     that allow government to accept responsibility for fostering 
     the development of a healthy marketplace and allow families 
     to prosper without government involvement in their day-to-day 
     activities;
       (2) the Federal Government cannot through its direct action 
     alone provide for the housing of every American citizen, or 
     even a majority of its citizens, but it is the responsibility 
     of the Government to promote and protect the independent and 
     collective actions of private citizens to develop housing and 
     strengthen their own neighborhoods;
       (3) the Federal Government should act where there is a 
     serious need that private citizens or groups cannot or are 
     not addressing responsibly;
       (4) housing is a fundamental and necessary component of 
     bringing true opportunity to people and communities in need, 
     but providing physical structures to house low-income 
     families will not by itself pull generations up from poverty;
       (5) it is a goal of our Nation that all citizens have 
     decent and affordable housing; and
       (6) our Nation should promote the goal of providing decent 
     and affordable housing for all citizens through the efforts 
     and encouragement of Federal, State, and local governments, 
     and by the independent and collective actions of private 
     citizens, organizations, and the private sector.

                      TITLE XI--GENERAL PROVISIONS

     SEC. 1101. STATEMENT OF PURPOSE.

       The purpose of this division is to promote safe, clean, and 
     healthy housing that is affordable to low-income families, 
     and thereby contribute to the supply of affordable housing, 
     by--
       (1) deregulating and decontrolling public housing agencies, 
     thereby enabling them to perform as property and asset 
     managers;
       (2) providing for more flexible use of Federal assistance 
     to public housing agencies, allowing the authorities to 
     leverage and combine assistance amounts with amounts obtained 
     from other sources;
       (3) facilitating mixed income communities;
       (4) increasing accountability and rewarding effective 
     management of public housing agencies;
       (5) creating incentives and economic opportunities for 
     residents of dwelling units assisted by public housing 
     agencies to work, become self-sufficient, and transition out 
     of public housing and federally assisted dwelling units;
       (6) recreating the existing rental assistance voucher 
     program so that the use of vouchers and relationships between 
     landlords and tenants under the program operate in a manner 
     that more closely resembles the private housing market; and
       (7) remedying troubled public housing agencies and 
     replacing or revitalizing severely distressed public housing 
     developments.

     SEC. 1102. DEFINITIONS.

       For purposes of this division, the following definitions 
     shall apply:
       (1) Acquisition cost.--When used in reference to public 
     housing, the term ``acquisition cost'' means the amount 
     prudently expended by a public housing agency in acquiring 
     property for a public housing development.
       (2) Development.--The terms ``public housing development'' 
     and ``development'' (when used in reference to public 
     housing) mean--
       (A) public housing; and
       (B) the improvement of any such housing.
       (3) Disabled family.--The term ``disabled family'' means a 
     family whose head (or his or her spouse), or whose sole 
     member, is a person with disabilities. Such term includes 2 
     or more persons with disabilities living together, and 1 or 
     more such persons living with 1 or more persons determined 
     under the regulations of the Secretary to be essential to 
     their care or well-being.
       (4) 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 such term is defined in section 102 of the 
     Controlled Substances Act).
       (5) Effective date.--The term ``effective date'', when used 
     in reference to this division, means the effective date 
     determined under section 1601(a).
       (6) Elderly families and near elderly families.--The terms 
     ``elderly family'' and ``near-elderly family'' mean a family 
     whose head (or his or her spouse), or whose sole member, is 
     an elderly person or a near-elderly person, respectively. 
     Such terms include 2 or more elderly persons or near-elderly 
     persons living together, and 1 or more such persons living 
     with 1 or more persons determined under the regulations of 
     the Secretary to be essential to their care or well-being.
       (7) Elderly person.--The term ``elderly person'' means a 
     person who is at least 62 years of age.
       (8) Eligible public housing agency.--The term ``eligible 
     public housing agency'' means, with respect to a fiscal year, 
     a public housing agency that is eligible under section 
     1202(d) for a grant under this title.
       (9) Family.--The term ``family'' includes a family with or 
     without children, an elderly family, a near-elderly family, a 
     disabled family, and a single person.
       (10) Group home and independent living facility.--The terms 
     ``group home'' and ``independent living facility'' have the 
     meanings given such terms in section 811(k) of the Cranston-
     Gonzalez National Affordable Housing Act.
       (11) Income.--The term ``income'' means, with respect to a 
     family, income from all sources of each member of the 
     household, as determined in accordance with criteria 
     prescribed by the applicable public housing agency and the 
     Secretary, except that the following amounts shall be 
     excluded:
       (A) Any amounts not actually received by the family.
       (B) Any amounts that would be eligible for exclusion under 
     section 1613(a)(7) of the Social Security Act.
       (12) Local housing management plan.--The term ``local 
     housing management plan'' means, with respect to any fiscal 
     year, the plan under section 1106 of a public housing agency 
     for such fiscal year.
       (13) Low-income family.--The term ``low-income family'' 
     means a family whose income does not exceed 80 percent of the 
     median income for the area, as determined by

[[Page H5597]]

     the Secretary with adjustments for smaller and larger 
     families, except that the Secretary may, for purposes of this 
     paragraph, establish income ceilings higher or lower than 80 
     percent of the median for the area on the basis of the public 
     housing agency's findings that such variations are necessary 
     because of unusually high or low family incomes.
       (14) Low-income housing.--The term ``low-income housing'' 
     means dwellings that comply with the requirements--
       (A) under title XII for assistance under such title for the 
     dwellings; or
       (B) under title XIII for rental assistance payments under 
     such title for the dwellings.
       (15) Near-elderly person.--The term ``near-elderly person'' 
     means a person who is at least 55 years of age.
       (16) Operation.--When used in reference to public housing, 
     the term ``operation'' means any or all undertakings 
     appropriate for management, operation, services, maintenance, 
     security (including the cost of security personnel), or 
     financing in connection with a public housing development, 
     including the financing of resident programs and services.
       (17) Person with disabilities.--The term ``person with 
     disabilities'' means a person who--
       (A) has a disability as defined in section 223 of the 
     Social Security Act,
       (B) is determined, pursuant to regulations issued by the 
     Secretary, to have a physical, mental, or emotional 
     impairment which (i) is expected to be of long-continued and 
     indefinite duration, (ii) substantially impedes his or her 
     ability to live independently, and (iii) is of such a nature 
     that such ability could be improved by more suitable housing 
     conditions, or
       (C) has a developmental disability as defined in section 
     102 of the Developmental Disabilities Assistance and Bill of 
     Rights Act.
     Such term shall not exclude persons who have the disease of 
     acquired immunodeficiency syndrome or any conditions arising 
     from the etiologic agent for acquired immunodeficiency 
     syndrome. Notwithstanding any other provision of law, no 
     individual shall be considered a person with disabilities, 
     for purposes of eligibility for public housing under title 
     XII of this Act, solely on the basis of any drug or alcohol 
     dependence. The Secretary shall consult with other 
     appropriate Federal agencies to implement the preceding 
     sentence.
       (18) Production.--When used in reference to public housing, 
     the term ``production'' means any or all undertakings 
     necessary for planning, land acquisition, financing, 
     demolition, construction, or equipment, in connection with 
     the construction, acquisition, or rehabilitation of a 
     property for use as a public housing development, including 
     activity in connection with a public housing development that 
     is confined to the reconstruction, remodeling, or repair of 
     existing buildings.
       (19) Production cost.--When used in reference to public 
     housing, the term ``production cost'' means the costs 
     incurred by a public housing agency for production of public 
     housing and the necessary financing for production (including 
     the payment of carrying charges and acquisition costs).
       (20) Public housing.--The term ``public housing'' means 
     housing, and all necessary appurtenances thereto, that--
       (A) is low-income housing, low-income dwelling units in 
     mixed-finance housing (as provided in subtitle F of title 
     XII), or low-income dwelling units in mixed income housing 
     (as provided in section 1221(c)(2)); and
       (B)(i) is subject to an annual block grant contract under 
     title XII; or
       (ii) was subject to an annual block grant contract under 
     title XII (or an annual contributions contract under the 
     United States Housing Act of 1937) which is not in effect, 
     but for which occupancy is limited in accordance with the 
     requirements under section 1222(a).
       (21) Public housing agency.--The term ``public housing 
     agency'' is defined in section 1103.
       (22) Resident council.--The term ``resident council'' means 
     an organization or association that meets the requirements of 
     section 1234(a).
       (23) Resident management corporation.--The term ``resident 
     management corporation'' means a corporation that meets the 
     requirements of section 1234(b)(2).
       (24) Resident program.--The term ``resident programs and 
     services'' means programs and services for families residing 
     in public housing developments. Such term may include (A) the 
     development and maintenance of resident organizations which 
     participate in the management of public housing developments, 
     (B) the training of residents to manage and operate the 
     public housing development and the utilization of their 
     services in management and operation of the development, (C) 
     counseling on household management, housekeeping, budgeting, 
     money management, homeownership issues, child care, and 
     similar matters, (D) advice regarding resources for job 
     training and placement, education, welfare, health, and other 
     community services, (E) services that are directly related to 
     meeting resident needs and providing a wholesome living 
     environment; and (F) referral to appropriate agencies in the 
     community when necessary for the provision of such services. 
     To the maximum extent available and appropriate, existing 
     public and private agencies in the community shall be used 
     for the provision of such services.
       (25) Secretary.--The term ``Secretary'' means the Secretary 
     of Housing and Urban Development.
       (26) State.--The term ``State'' means the States of the 
     United States, the District of Columbia, the Commonwealth of 
     Puerto Rico, the Commonwealth of the Northern Mariana 
     Islands, Guam, the Virgin Islands, American Samoa, and any 
     other territory or possession of the United States and Indian 
     tribes.
       (27) Very low-income family.--The term ``very low-income 
     family'' means a low-income family whose income does not 
     exceed 50 percent of the median family income for the area, 
     as determined by the Secretary with adjustments for smaller 
     and larger families, except that the Secretary may, for 
     purposes of this paragraph, establish income ceilings higher 
     or lower than 50 percent of the median for the area on the 
     basis of the public housing agency's findings that such 
     variations are necessary because of unusually high or low 
     family incomes.

     SEC. 1103. ORGANIZATION OF PUBLIC HOUSING AGENCIES.

       (a) Requirements.--For purposes of this division, the terms 
     ``public housing agency'' and ``agency'' mean any entity 
     that--
       (1) is--
       (A) a public housing agency that was authorized under the 
     United States Housing Act of 1937 to engage in or assist in 
     the development or operation of low-income housing;
       (B) authorized under this division to engage in or assist 
     in the development or operation of low-income housing by any 
     State, county, municipality, or other governmental body or 
     public entity;
       (C) an entity authorized by State law to administer choice-
     based housing assistance under title XIII; or
       (D) an entity selected by the Secretary, pursuant to 
     subtitle D of title XV, to manage housing; and
       (2) complies with the requirements under subsection (b).
     The term does not include any entity that is an Indian 
     housing authority for purposes of the United States Housing 
     Act of 1937 (as in effect before the effectiveness of the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996) or a tribally designated housing entity, as such 
     term is defined in section 4 of the Native American Housing 
     Assistance and Self-Determination Act of 1996.
       (b) Governance.--
       (1) Board of directors.--Each public housing agency shall 
     have a board of directors or other form of governance as 
     prescribed in State or local law. No person may be barred 
     from serving on such board or body because of such person's 
     residency in a public housing development or status as an 
     assisted family under title XIII.
       (2) Resident membership.--
       (A) In general.--Except as provided in subparagraph (B), in 
     localities in which a public housing agency is governed by a 
     board of directors or other similar body, the board or body 
     shall include not less than 1 member who is an elected public 
     housing resident member (as such term is defined in paragraph 
     (5)).
       (B) Exceptions.--The requirement in subparagraph (A) with 
     respect to elected public housing resident members shall not 
     apply to--
       (i) any State or local governing body that serves as a 
     public housing agency for purposes of this division and whose 
     responsibilities include substantial activities other than 
     acting as the public housing agency, except that such 
     requirement shall apply to any advisory committee or 
     organization that is established by such governing body and 
     whose responsibilities relate only to the governing body's 
     functions as a public housing agency for purposes of this 
     division;
       (ii) any public housing agency that owns or operates less 
     than 250 public housing dwelling units (including any agency 
     that does not own or operate public housing); or
       (iii) any public housing agency in a State that requires 
     the members of the board of directors or other similar body 
     of a public housing agency to be salaried and to serve on a 
     full-time basis.
       (3) Full participation.--No public housing agency may limit 
     or restrict the capacity or offices in which a member of such 
     board or body may serve on such board or body solely because 
     of the member's status as a resident member.
       (4) Conflicts of interest.--The Secretary shall establish 
     guidelines to prevent conflicts of interest on the part of 
     members of the board or directors or governing body of a 
     public housing agency.
       (5) Definitions.--For purposes of this subsection, the 
     following definitions shall apply:
       (A) Elected public housing resident member.--The term 
     ``elected public housing resident member'' means, with 
     respect to the public housing agency involved, an individual 
     who is a resident member of the board of directors (or other 
     similar governing body of the agency) by reason of election 
     to such position pursuant to an election--
       (i) in which eligibility for candidacy in such election is 
     limited to individuals who--

       (I) maintain their principal residence in a dwelling unit 
     of public housing administered or assisted by the agency; and
       (II) have not been convicted of a felony;

       (ii) in which only residents of dwelling units of public 
     housing administered by the agency may vote; and

[[Page H5598]]

       (iii) that is conducted in accordance with standards and 
     procedures for such election, which shall be established by 
     the Secretary.
       (B) Resident member.--The term ``resident member'' means a 
     member of the board of directors or other similar governing 
     body of a public housing agency who is a resident of a public 
     housing dwelling unit owned, administered, or assisted by the 
     agency or is a member of an assisted family (as such term is 
     defined in section 1371) assisted by the agency.
       (c) Establishment of Policies.--Any rules, regulations, 
     policies, standards, and procedures necessary to implement 
     policies required under section 1106 to be included in the 
     local housing management plan for a public housing agency 
     shall be approved by the board of directors or similar 
     governing body of the agency and shall be publicly available 
     for review upon request.

     SEC. 1104. DETERMINATION OF ADJUSTED INCOME AND MEDIAN 
                   INCOME.

       (a) Adjusted Income.--For purposes of this division, the 
     term ``adjusted income'' means, with respect to a family, the 
     difference between the income of the members of the family 
     residing in a dwelling unit or the persons on a lease and the 
     amount of any income exclusions for the family under 
     subsections (b) and (c), as determined by the public housing 
     agency.
       (b) Mandatory Exclusions From Income.--In determining 
     adjusted income, a public housing agency shall exclude from 
     the annual income of a family the following amounts:
       (1) Elderly and disabled families.--$400 for any elderly or 
     disabled family.
       (2) Medical expenses.--The amount by which 3 percent of the 
     annual family income is exceeded by the sum of--
       (A) unreimbursed medical expenses of any elderly family;
       (B) unreimbursed medical expenses of any nonelderly family, 
     except that this subparagraph shall apply only to the extent 
     approved in appropriation Acts; and
       (C) unreimbursed reasonable attendant care and auxiliary 
     apparatus expenses for each handicapped member of the family, 
     to the extent necessary to enable any member of such family 
     (including such handicapped member) to be employed.
       (3) Child care expenses.--Any reasonable child care 
     expenses necessary to enable a member of the family to be 
     employed or to further his or her education.
       (4) Minors, students, and persons with disabilities.--$480 
     for each member of the family residing in the household 
     (other than the head of the household or his or her spouse) 
     who is less than 18 years of age or is attending school or 
     vocational training on a full-time basis, or who is 18 years 
     of age or older and is a person with disabilities.
       (5) Child support payments.--Any payment made by a member 
     of the family for the support and maintenance of any child 
     who does not reside in the household, except that the amount 
     excluded under this paragraph may not exceed $480 for each 
     child for whom such payment is made.
       (6) Earned income of minors.--The amount of any earned 
     income of a member of the family who is not--
       (A) 18 years of age or older; and
       (B) the head of the household (or the spouse of the head of 
     the household).
       (c) Permissive Exclusions From Income.--In determining 
     adjusted income, a public housing agency may, in the 
     discretion of the agency, establish exclusions from the 
     annual income of a family. Such exclusions may include the 
     following amounts:
       (1) Excessive travel expenses.--Excessive travel expenses 
     in an amount not to exceed $25 per family per week, for 
     employment- or education-related travel.
       (2) Earned income.--An amount of any earned income of the 
     family, established at the discretion of the public housing 
     agency, which may be based on--
       (A) all earned income of the family,
       (B) the amount earned by particular members of the family;
       (C) the amount earned by families having certain 
     characteristics; or
       (D) the amount earned by families or members during certain 
     periods or from certain sources.
       (3) Others.--Such other amounts for other purposes, as the 
     public housing agency may establish.
       (d) Median Income.--In determining median incomes (of 
     persons, families, or households) for an area or establishing 
     any ceilings or limits based on income under this division, 
     the Secretary shall determine or establish area median 
     incomes and income ceilings and limits for Westchester and 
     Rockland Counties, in the State of New York, as if each such 
     county were an area not contained within the metropolitan 
     statistical area in which it is located. In determining such 
     area median incomes or establishing such income ceilings or 
     limits for the portion of such metropolitan statistical area 
     that does not include Westchester or Rockland Counties, the 
     Secretary shall determine or establish area median incomes 
     and income ceilings and limits as if such portion included 
     Westchester and Rockland Counties.
       (e) Availability of Income Matching Information.--
       (1) Disclosure to pha.--A public housing agency shall 
     require any family described in paragraph (2) who receives 
     information regarding income, earnings, wages, or 
     unemployment compensation from the Department of Housing and 
     Urban Development pursuant to income verification procedures 
     of the Department to disclose such information, upon receipt 
     of the information, to the public housing agency that owns or 
     operates the public housing dwelling unit in which such 
     family resides or that provides the housing assistance on 
     behalf of such family, as applicable.
       (2) Applicability to families receiving public housing or 
     choice-based housing assistance.--A family described in this 
     paragraph is a family that resides in a dwelling unit--
       (A) that is a public housing dwelling unit; or
       (B) for which housing assistance is provided under title 
     XIII (or under the program for tenant-based assistance under 
     section 8 of the United States Housing Act of 1937 (as in 
     effect before the effective date of the repeal under section 
     1601(b) of this Act)).
       (3) Protection of applicants and participants.--Section 904 
     of the Stewart B. McKinney Homeless Assistance Amendments Act 
     of 1988 (42 U.S.C. 3544) is amended--
       (A) in subsection (b)--
       (i) in paragraph (2), by striking ``and'' at the end;
       (iii) in paragraph (3), by striking the period at the end 
     and inserting ``; and''; and
       (ii) by adding at the end the following new paragraph:
       ``(4) only in the case of an applicant or participant that 
     is a member of a family described in section 1104(e)(2) of 
     the Housing Opportunity and Responsibility Act of 1997, sign 
     an agreement under which the applicant or participant agrees 
     to provide to the appropriate public housing agency the 
     information required under such section 1104(e)(1) of the 
     Housing Opportunity and Responsibility Act of 1997 for the 
     sole purpose of the public housing agency verifying income 
     information pertinent to the applicant's or participant's 
     eligibility or level of benefits, and comply with such 
     agreement.''; and
       (B) in subsection (c)--
       (i) in paragraph (2)(A), in the matter preceding clause 
     (I)--

       (I) by inserting before ``or'' the first place it appears 
     the following: ``, pursuant to section 1104(e)(1) of the 
     Housing Opportunity and Responsibility Act of 1997 from the 
     applicant or participant,''; and
       (II) by inserting ``or 104(e)(1)'' after ``such section 
     303(i)''; and

       (ii) in paragraph (3)--

       (I) in subparagraph (A), by inserting ``, section 
     1104(e)(1) of the Housing Opportunity and Responsibility Act 
     of 1997,'' after ``Social Security Act''; and
       (II) in subparagraph (A), by inserting ``or agreement, as 
     applicable,'' after ``consent'';
       (III) in subparagraph (B), by inserting ``section 
     1104(e)(1) of the Housing Opportunity and Responsibility Act 
     of 1997,'' after ``Social Security Act,''; and

       (IV) in subparagraph (B), by inserting `` such section 
     1104(e)(1),'' after ``such section 303(i),'' each place it 
     appears.

     SEC. 1105. COMMUNITY WORK AND FAMILY SELF-SUFFICIENCY 
                   REQUIREMENTS.

       (a) Community Work Requirement.--
       (1) In general.--Except as provided in paragraph (3), each 
     public housing agency shall require, as a condition of 
     occupancy of a public housing dwelling unit by a family and 
     of providing housing assistance under title XIII on behalf of 
     a family, that each adult member of the family shall 
     contribute not less than 8 hours of work per month (not 
     including political activities) within the community in which 
     the family resides, which may include work performed on 
     locations not owned by the public housing agency.
       (2) Employment status and liability.--The requirement under 
     paragraph (1) may not be construed to establish any 
     employment relationship between the public housing agency and 
     the member of the family subject to the work requirement 
     under such paragraph or to create any responsibility, duty, 
     or liability on the part of the public housing agency for 
     actions arising out of the work done by the member of the 
     family to comply with the requirement, except to the extent 
     that the member of the family is fulfilling the requirement 
     by working directly for such public housing agency.
       (3) Exemptions.--A public housing agency shall provide for 
     the exemption, from the applicability of the requirement 
     under paragraph (1), of each individual who is--
       (A) an elderly person;
       (B) a person with disabilities;
       (C) working, attending school or vocational training, or 
     otherwise complying with work requirements applicable under 
     other public assistance programs (as determined by the 
     agencies or organizations responsible for administering such 
     programs); or
       (D) otherwise physically impaired to the extent that they 
     are unable to comply with the requirement, as certified by a 
     doctor.
       (b) Requirement Regarding Target Date for Transition Out of 
     Assisted Housing.--
       (1) In general.--Each public housing agency shall require, 
     as a condition of occupancy of a public housing dwelling unit 
     by a family and of providing housing assistance under title 
     XIII on behalf of a family, that the family and the agency 
     enter into an agreement (included, pursuant to subsection 
     (d)(2)(C), as a term of an agreement under subsection (d)) 
     establishing a target date by which the family intends to 
     graduate from, terminate tenancy in, or no longer receive 
     public housing or housing assistance under title XIII.
       (2) Rights of occupancy.--This subsection may not be 
     construed (nor may any provision of subsection (d) or (e)) to 
     create a right

[[Page H5599]]

     on the part of any public housing agency to evict or 
     terminate assistance for a family solely on the basis of any 
     failure of the family to comply with the target date 
     established pursuant to paragraph (1).
       (3) Factors.--In establishing a target date pursuant to 
     paragraph (1) for a family that receives benefits for welfare 
     or public assistance from a State or other public agency 
     under a program that limits the duration during which such 
     benefits may be received, the public housing agency and the 
     family may take into consideration such time limit. This 
     section may not be construed to require any public housing 
     agency to adopt any such time limit on the duration of 
     welfare or public assistance benefits as the target date 
     pursuant to paragraph (1) for a resident.
       (4) Exemptions.--A public housing agency shall provide for 
     the exemption, from the applicability of the requirements 
     under paragraph (1), of each individual who is--
       (A) an elderly person;
       (B) a person with disabilities;
       (C) working, attending school or vocational training, or 
     otherwise complying with work requirements applicable under 
     other public assistance programs (as determined by the 
     agencies or organizations responsible for administering such 
     programs); or
       (D) otherwise physically impaired to the extent that they 
     are unable to comply with the requirement, as certified by a 
     doctor.
       (c) Treatment of Income Changes Resulting From Welfare 
     Program Requirements.--
       (1) Covered family.--For purposes of this subsection, the 
     term ``covered family'' means a family that (A) 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 an economic self-
     sufficiency program, and (B) resides in a public housing 
     dwelling unit or is provided housing assistance under title 
     XIII.
       (2) Decreases in income for failure to comply.--
     Notwithstanding the provisions of sections 1225 and 1322 
     (relating to family rental contributions), 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 an economic self-
     sufficiency 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).
       (3) Effect of fraud.--Notwithstanding the provisions of 
     sections 1225 and 1322 (relating to family rental 
     contributions), if the welfare or public assistance benefits 
     of a covered family are reduced because of an act of fraud by 
     a member of the family under the law or program, the amount 
     required to be paid by the covered 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).
       (4) Notice.--Paragraphs (2) and (3) shall not apply to any 
     covered family before the public housing agency providing 
     assistance under this division 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 
     economic self-sufficiency program requirements or fraud and 
     the level of such reduction.
       (5) Occupancy rights.--This subsection may not be construed 
     to authorize any public housing agency to establish any time 
     limit on tenancy in a public housing dwelling unit or on 
     receipt of housing assistance under title XIII.
       (6) Review.--Any covered family residing in public housing 
     that is affected by the operation of this subsection shall 
     have the right to review the determination under this 
     subsection through the administrative grievance procedure 
     established pursuant to section 1110 for the public housing 
     agency.
       (7) Cooperation agreements for economic self-sufficiency 
     activities.--
       (A) Requirement.--A public housing agency providing public 
     housing dwelling units or housing assistance under title XIII 
     for covered families shall make its best efforts to 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 (a) and paragraphs 
     (2), (3), and (4) 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 housing developments and receiving choice-
     based assistance under title XIII, 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 and 
     recipients of such assistance, 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.
       (d) Community Work and Family Self-Sufficiency 
     Agreements.--
       (1) In general.--A public housing agency shall enter into a 
     community work and family self-sufficiency agreement under 
     this subsection with each adult member and head of household 
     of each family who is to reside in a dwelling unit in public 
     housing of the agency and each family on behalf of whom the 
     agency will provide housing assistance under title XIII. 
     Under the agreement the family shall agree that, as a 
     condition of occupancy of the public housing dwelling unit or 
     of receiving such housing assistance, the family will comply 
     with the terms of the agreement.
       (2) Terms.--An agreement under this subsection shall 
     include the following:
       (A) Terms designed to encourage and facilitate the economic 
     self-sufficiency of the assisted family entering into the 
     agreement and the graduation of the family from assisted 
     housing to unassisted housing.
       (B) Notice of the requirements under subsection (a) 
     (relating to community work) and the conditions imposed by, 
     and exemptions from, such requirement.
       (C) The target date agreed upon by the family pursuant to 
     subsection (b) for graduation from, termination of tenancy 
     in, or termination of receipt of public housing or housing 
     assistance under title XIII.
       (D) Terms providing for any resources, services, and 
     assistance relating to self-sufficiency that will be made 
     available to the family, including any assistance to be made 
     available pursuant to subsection (c)(7)(B) under a 
     cooperation agreement entered into under subsection (c)(7).
       (E) Notice of the provisions of paragraphs (2) through (7) 
     of subsection (c) (relating to effect of changes in income on 
     rent and assisted families rights under such circumstances).
       (e) Lease Provisions.--A public housing agency shall 
     incorporate into leases under section 1226, and into any 
     agreements for the provision of choice-based assistance under 
     title XIII on behalf of a family--
       (1) a provision requiring compliance with the requirement 
     under subsection (a); and
       (2) provisions incorporating the conditions under 
     subsection (c).
       (f) Treatment of Income.--Notwithstanding any other 
     provision of this section, in determining the income or 
     tenancy of a family who resides in public housing or receives 
     housing assistance under title XIII, a public housing agency 
     shall consider any decrease in the income of a family that 
     results from the reduction of any welfare or public 
     assistance benefits received by the family under any Federal, 
     State, or local law regarding a program for such assistance 
     if the family (or a member thereof, as applicable) has 
     complied with the conditions for receiving such assistance 
     and is unable to obtain employment notwithstanding such 
     compliance.
       (g) Definition.--For purposes of this section, the term 
     ``economic 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, financial or household 
     management, apprenticeship, or other activities as the 
     Secretary may provide.

     SEC. 1106. LOCAL HOUSING MANAGEMENT PLANS.

       (a) 5-Year Plan.--The Secretary shall provide for each 
     public housing agency to submit to the Secretary, once every 
     5 years, a plan under this subsection for the agency covering 
     a period consisting of 5 fiscal years. Each such plan shall 
     contain, with respect to the 5-year period covered by the 
     plan, the following information:
       (1) Statement of mission.--A statement of the mission of 
     the agency for serving the needs of low-income families in 
     the jurisdiction of the agency during such period.
       (2) Goals and objectives.--A statement of the goals and 
     objectives of the agency that will enable the agency to serve 
     the needs identified pursuant to paragraph (1) during such 
     period.
       (3) Capital improvement overview.--If the agency will 
     provide capital improvements for public housing developments 
     during such period, an overview of such improvements, the 
     rationale for such improvements, and an analysis of how such 
     improvements will enable the agency to meet its goals, 
     objectives, and mission.
     The first 5-year plan under this subsection for a public 
     housing agency shall be submitted for the 5-year period 
     beginning with the first fiscal year for which the agency 
     receives assistance under this division.
       (b) Annual Plan.--The Secretary shall provide for each 
     public housing agency to submit to the Secretary a local 
     housing management plan under this section for each fiscal 
     year that contains the information required under subsection 
     (d). For each fiscal year after the initial submission of a 
     plan

[[Page H5600]]

     under this section by a public housing agency, the 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.--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 such plans. Such procedures shall provide that a 
     public housing agency--
       (1) shall, in conjunction with the relevant State or unit 
     of general local government, establish procedures to ensure 
     that the plan under this section is consistent with the 
     applicable comprehensive housing affordability strategy (or 
     any consolidated plan incorporating such 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
       (2) may, at the option of the agency, submit a plan under 
     this section together with, or as part of, the comprehensive 
     housing affordability strategy (or any consolidated plan 
     incorporating such strategy) for the relevant jurisdiction, 
     and for concomitant review of such plans submitted together.
       (d) Contents.--An annual local housing management 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 division is to be 
     made available:
       (1) Needs.--A statement of the housing needs of low-income 
     and very low-income families residing in the community served 
     by the agency, and of other low-income families on the 
     waiting list of the agency (including the housing needs of 
     elderly families and disabled families), and the means by 
     which the agency intends, to the maximum extent practicable, 
     to address such needs.
       (2) Financial resources.--A statement of financial 
     resources available for the agency the planned uses of such 
     resources that includes--
       (A) a description of the financial resources available to 
     the agency;
       (B) the uses to which such resources will be committed, 
     including all proposed eligible and required activities under 
     section 1203 and housing assistance to be provided under 
     title XIII;
       (C) an estimate of the costs of operation and the market 
     rental value of each public housing development; and
       (D) a specific description, based on population and 
     demographic data, of the unmet affordable housing needs of 
     families in the community served by the agency having incomes 
     not exceeding 30 percent of the area median income and a 
     statement of how the agency will expend grant amounts 
     received under this division to meet the housing needs of 
     such families.
       (3) Population served.--A statement of the policies of the 
     agency governing eligibility, admissions, and occupancy of 
     families with respect to public housing dwelling units and 
     housing assistance under title XIII, including--
       (A) the requirements for eligibility for such units and 
     assistance and the method and procedures by which eligibility 
     and income will be determined and verified;
       (B) the requirements for selection and admissions of 
     eligible families for such units and assistance, including 
     any preferences and procedures established by the agency and 
     any outreach efforts;
       (C) the procedures for assignment of families admitted to 
     dwelling units owned, leased, managed, operated, or assisted 
     by the agency;
       (D) any standards and requirements for occupancy of public 
     housing dwelling units and units assisted under title XIII, 
     including resident screening policies, standard lease 
     provisions, conditions for continued occupancy, termination 
     of tenancy, eviction, and conditions for termination of 
     housing assistance;
       (E) the procedures for maintaining waiting lists for 
     admissions to public housing developments of the agency, 
     which may include a system of site-based waiting lists under 
     section 1224(c);
       (F) the criteria for providing and denying housing 
     assistance under title XIII to families moving into the 
     jurisdiction of the agency;
       (G) the procedures for coordination with entities providing 
     assistance to homeless families in the jurisdiction of the 
     agency; and
       (H) the fair housing policy of the agency.
       (4) Rent determination.--A statement of the policies of the 
     agency governing rents charged for public housing dwelling 
     units and rental contributions of assisted families under 
     title XIII and the system used by the agency to ensure that 
     such rents comply with the requirements of this division.
       (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 agency, and management of the public housing 
     agency and programs of the agency, including--
       (A) a description of the manner in which the agency is 
     organized (including any consortia or joint ventures) and 
     staffed to perform the duties and functions of the public 
     housing agency and to administer the operating fund 
     distributions of the agency;
       (B) policies relating to the rental of dwelling units, 
     including policies designed to reduce vacancies;
       (C) housing quality standards in effect pursuant to 
     sections 1232 and 1328 and any certifications required under 
     such sections;
       (D) emergency and disaster plans for public housing;
       (E) priorities and improvements for management of public 
     housing, including initiatives to control costs; and
       (F) policies of the agency requiring the loss or 
     termination of housing assistance and tenancy under sections 
     1641 and 1642 (relating to occupancy standards for federally 
     assisted housing).
       (6) Grievance procedure.--A statement of the grievance 
     procedures of the agency under section 1110.
       (7) Capital improvements.--With respect to public housing 
     developments owned or operated by the 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 agency--
       (A) a description of any such housing to be demolished or 
     disposed of under subtitle E of title XII; and
       (B) a timetable for such demolition or disposition.
       (9) Designation of housing for elderly and disabled 
     families.--With respect to public housing developments owned 
     or operated by the agency, a description of any developments 
     (or portions thereof) that the agency has designated or will 
     designate for occupancy by elderly and disabled families in 
     accordance with section 1227 and any information required 
     under section 1227(d) for such designated developments.
       (10) Conversion of public housing.--With respect to public 
     housing owned or operated by the agency, a description of any 
     building or buildings that the agency is required, under 
     section 1203(b), to convert to housing assistance under title 
     XIII or that the agency voluntarily converts, an analysis of 
     such buildings required under such section for conversion, 
     and a statement of the amount of grant amounts under title 
     XII to be used for rental assistance or other housing 
     assistance.
       (11) Homeownership activities.--A description of--
       (A) any homeownership programs of the agency under subtitle 
     D of title XII or section 1329 for the agency;
       (B) the requirements and assistance available under the 
     programs described pursuant to subparagraph (A); and
       (C) the annual goals of the agency for additional 
     availability of homeownership units.
       (12) Economic self-sufficiency and coordination with 
     welfare and other appropriate agencies.--A description of--
       (A) policies relating to services and amenities provided or 
     offered to assisted families, including the provision of 
     service coordinators and services designed for certain 
     populations (such as the elderly and disabled);
       (B) how the agency will coordinate with State, local, and 
     other agencies providing assistance to families participating 
     in welfare or public assistance programs;
       (C) how the agency will implement and administer section 
     1105; and
       (D) any policies, programs, plans, and activities of the 
     agency for the enhancement of the economic and social self-
     sufficiency of residents assisted by the programs of the 
     agency, including rent structures to encourage self-
     sufficiency.
       (13) Safety and crime prevention.--A plan established by 
     the public housing agency, which shall be subject to the 
     following requirements:
       (A) Safety measures.--The plan shall provide, on a 
     development-by-development basis, for measures to ensure the 
     safety of public housing residents.
       (B) Establishment.--The plan shall be established, with 
     respect to each development, in consultation with the police 
     officer or officers in command for the precinct in which the 
     development is located.
       (C) Content.--The plan shall describe the need for measures 
     to ensure the safety of public housing residents and for 
     crime prevention measures, describe any such activities 
     conducted, or to be conducted, by the agency, and provide for 
     coordination between the public housing agency and the 
     appropriate police precincts for carrying out such measures 
     and activities.
       (D) Secretarial action.--If the Secretary determines, at 
     any time, that the security needs of a development are not 
     being adequately addressed by the plan, or that the local 
     police precinct is not complying with the plan, the Secretary 
     may mediate between the public housing agency and the local 
     precinct to resolve any issues of conflict. If after such 
     mediation has occurred and the Secretary determines that the 
     security needs of the development are not adequately 
     addressed, the Secretary may require the public housing 
     agency to submit an amended plan.
       (14) Annual audit.--The results of the most recent fiscal 
     year audit of the agency required under section 1541(b).
       (15) Troubled agencies.--Such other additional information 
     as the Secretary may determine to be appropriate for each 
     public housing agency that is designated--
       (A) under section 1533(c) as at risk of becoming troubled; 
     or
       (B) under section 1533(a) as troubled.
       (16) Asset management.--A statement of how the agency will 
     carry out its asset management functions with respect to the 
     public

[[Page H5601]]

     housing inventory of the agency, including how the agency 
     will plan for the long-term operating, capital investment, 
     rehabilitation, modernization, disposition, and other needs 
     for such inventory.
       (e) Citizen Participation.--
       (1) Publication of notice.--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 agency shall--
       (A) publish a notice informing the public that the proposed 
     local housing management plan or amendment is available for 
     inspection at the principal office of the public housing 
     agency during normal business hours and make the plan or 
     amendment so available for inspection during such period; and
       (B) publish a notice informing the public that a public 
     hearing will be conducted to discuss the local housing 
     management plan and to invite public comment regarding that 
     plan.
       (2) Public hearing.--Before submitting a plan under this 
     section or a significant amendment under section 1107(f) to a 
     plan, a 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), 
     regarding the public housing plan or the amendment of the 
     agency.
       (3) Consideration of comments.--A public housing agency 
     shall consider any comments or views made available pursuant 
     to paragraphs (1) and (2) in preparing a final plan or 
     amendment for submission to the Secretary. A summary of such 
     comments or views shall be attached to the plan, amendment, 
     or report submitted.
       (4) Adoption of plan.--After conducting the public hearing 
     under paragraph (2) and considering public comments in 
     accordance with paragraph (3), the public housing agency 
     shall make any appropriate changes to the local housing 
     management plan or amendment and shall--
       (A) adopt the local housing management plan;
       (B) submit the plan to any local elected official or 
     officials responsible for appointing the members of the board 
     of directors (or other similar governing body) of the public 
     housing agency for review and approval under subsection (f);
       (C) submit the plan to the Secretary in accordance with 
     this section; and
       (D) make the submitted plan or amendment publicly 
     available.
       (f) Local Review.--The public housing agency shall submit a 
     plan under this subsection to any local elected official or 
     officials responsible for appointing the members of the board 
     of directors (or other similar governing body) of the public 
     housing agency for review and approval for a 45-day period 
     beginning on the date that the plan is submitted to such 
     local official or officials (which period may run 
     concurrently with any period under subsection (e) for public 
     comment). If the local official or officials responsible 
     under this subsection do not act within 45 days of submission 
     of the plan, the plan shall be considered approved. If the 
     local official or officials responsible under this subsection 
     reject the public housing agency's plan, they shall return 
     the plan with their recommended changes to the agency within 
     5 days of their disapproval. The agency shall resubmit an 
     updated plan to the local official or officials within 30 
     days of receiving the objections, If the local official or 
     officials again reject the plan, the resubmitted plan, 
     together with the local official's objections, shall be 
     submitted to the Secretary for approval.
       (g) Plans for Small PHA's and PHA's Administering Only 
     Rental Assistance.--The Secretary shall establish 
     requirements for submission of plans under this section and 
     the information to be included in such plans applicable to 
     public housing agencies that own or operate less than 250 
     public housing dwelling units and shall establish 
     requirements for such submission and information applicable 
     to agencies that only administer housing assistance under 
     title XIII (and do not own or operate public housing). Such 
     requirements shall waive any requirements under this section 
     that the Secretary determines are burdensome or unnecessary 
     for such agencies.

     SEC. 1107. REVIEW OF PLANS.

       (a) Review and Notice.--
       (1) Review.--The Secretary shall conduct a limited review 
     of each local housing management plan submitted to the 
     Secretary to ensure that the plan is complete and complies 
     with the requirements of section 1106. The Secretary shall 
     have the discretion to review a plan to the extent that the 
     Secretary considers review is necessary.
       (2) Notice.--The Secretary shall notify each public housing 
     agency submitting a plan whether the plan complies with such 
     requirements not later than 75 days after receiving the plan. 
     If the Secretary does not notify the public housing agency, 
     as required under this subsection and subsection (b), the 
     Secretary shall be considered, for purposes of this division, 
     to have made a determination that the plan complies with the 
     requirements under section 1106 and the agency shall be 
     considered to have been notified of compliance upon the 
     expiration of such 75-day period. The preceding sentence 
     shall not preclude judicial review regarding such compliance 
     pursuant to chapter 7 of title 5, United States Code, or an 
     action regarding such compliance under section 1979 of the 
     Revised Statutes of the United States (42 U.S.C. 1983).
       (b) Notice of Reasons for Determination of Noncompliance.--
     If the Secretary determines that a plan, as submitted, does 
     not comply with the requirements under section 1106, the 
     Secretary shall specify in the notice under subsection (a) 
     the reasons for the noncompliance and any modifications 
     necessary for the plan to meet the requirements under section 
     1106.
       (c) Standards for Determination of Noncompliance.--The 
     Secretary may determine that a plan does not comply with the 
     requirements under section 1106 only if--
       (1) the plan is incomplete in significant matters required 
     under such section;
       (2) there is evidence available to the Secretary that 
     challenges, in a substantial manner, any information provided 
     in the plan;
       (3) the Secretary determines that the plan does not comply 
     with Federal law or violates the purposes of this division 
     because it fails to provide housing that will be viable on a 
     long-term basis at a reasonable cost;
       (4) the plan plainly fails to adequately identify the needs 
     of low-income families for housing assistance in the 
     jurisdiction of the agency;
       (5) the plan plainly fails to adequately identify the 
     capital improvement needs for public housing developments in 
     the jurisdiction of the agency;
       (6) the activities identified in the plan are plainly 
     inappropriate to address the needs identified in the plan; or
       (7) the plan is inconsistent with the requirements of this 
     division.
     The Secretary shall determine that a plan does not comply 
     with the requirements under section 1106 if the plan does not 
     include the information required under section 1106(d)(2)(D).
       (d) Treatment of Existing Plans.--Notwithstanding any other 
     provision of this title, a public housing agency shall be 
     considered to have submitted a plan under this section if the 
     agency has submitted to the Secretary a comprehensive plan 
     under section 14(e) of the United States Housing Act of 1937 
     (as in effect immediately before the effective date of the 
     repeal under section 1601(b) of this Act) or under the 
     comprehensive improvement assistance program under such 
     section 14, and the Secretary has approved such plan, before 
     January 1, 1997. The Secretary shall provide specific 
     procedures and requirements for such authorities to amend 
     such plans by submitting only such additional information as 
     is necessary to comply with the requirements of section 1106.
       (e) Actions To Change Plan.--A public housing agency that 
     has submitted a plan under section 1106 may change actions or 
     policies described in the plan before submission and review 
     of the plan of the agency for the next fiscal year only if--
       (1) in the case of costly or nonroutine changes, the agency 
     submits to the Secretary an amendment to the plan under 
     subsection (f) which is reviewed in accordance with such 
     subsection; or
       (2) in the case of inexpensive or routine changes, the 
     agency describes such changes in such local housing 
     management plan for the next fiscal year.
       (f) Amendments to Plan.--
       (1) In general.--During the annual or 5-year period covered 
     by the plan for a public housing agency, the agency may 
     submit to the Secretary any amendments to the plan.
       (2) Review.--The Secretary shall conduct a limited review 
     of each proposed amendment submitted under this subsection to 
     determine whether the plan, as amended by the amendment, 
     complies with the requirements of section 1106 and notify 
     each public housing agency submitting the amendment whether 
     the plan, as amended, complies with such requirements not 
     later than 30 days after receiving the amendment. If the 
     Secretary determines that a plan, as amended, does not comply 
     with the requirements under section 1106, such notice shall 
     indicate the reasons for the noncompliance and any 
     modifications necessary for the plan to meet the requirements 
     under section 1106. If the Secretary does not notify the 
     public housing agency as required under this paragraph, the 
     plan, as amended, shall be considered, for purposes of this 
     section, to comply with the requirements under section 1106.
       (3) Standards for determination of noncompliance.--The 
     Secretary may determine that a plan, as amended by a proposed 
     amendment, does not comply with the requirements under 
     section 1106 only if--
       (A) the plan, as amended, would be subject to a 
     determination of noncompliance in accordance with the 
     provisions of subsection (c);
       (B) the Secretary determines that--
       (i) the proposed amendment is plainly inconsistent with the 
     activities specified in the plan; or
       (ii) there is evidence that challenges, in a substantial 
     manner, any information contained in the amendment; or
       (C) the Secretary determines that the plan, as amended, 
     violates the purposes of this division because it fails to 
     provide housing that will be viable on a long-term basis at a 
     reasonable cost.
       (4) Amendments to extend time of performance.--
     Notwithstanding any other provision of this subsection, the 
     Secretary may not determine that any amendment to the plan of 
     a public housing agency that extends the time for performance 
     of activities assisted with amounts provided under this title

[[Page H5602]]

     fails to comply with the requirements under section 1106 if 
     the Secretary has not provided the amount of assistance set 
     forth in the plan or has not provided the assistance in a 
     timely manner.

     SEC. 1108. REPORTING REQUIREMENTS.

       (a) Performance and Evaluation Report.--Each public housing 
     agency shall annually submit to the Secretary, on a date 
     determined by the Secretary, a performance and evaluation 
     report concerning the use of funds made available under this 
     division. The report of the public housing agency shall 
     include an assessment by the agency of the relationship of 
     such use of funds made available under this division, as well 
     as the use of other funds, to the needs identified in the 
     local housing management plan and to the purposes of this 
     division. The public housing agency shall certify that the 
     report was available for review and comment by affected 
     tenants prior to its submission to the Secretary.
       (b) Review of PHA's.--The Secretary shall, at least on an 
     annual basis, make such reviews as may be necessary or 
     appropriate to determine whether each public housing agency 
     receiving assistance under this section--
       (1) has carried out its activities under this division in a 
     timely manner and in accordance with its local housing 
     management plan; and
       (2) has a continuing capacity to carry out its local 
     housing management plan in a timely manner.
       (c) Records.--Each public housing agency shall collect, 
     maintain, and submit to the Secretary such data and other 
     program records as the Secretary may require, in such form 
     and in accordance with such schedule as the Secretary may 
     establish.

     SEC. 1109. PET OWNERSHIP.

       Pet ownership in housing assisted under this division that 
     is federally assisted rental housing (as such term is defined 
     in section 227 of the Housing and Urban-Rural Recovery Act of 
     1983) shall be governed by the provisions of section 227 of 
     such Act.

     SEC. 1110. ADMINISTRATIVE GRIEVANCE PROCEDURE.

       (a) Requirements.--Each public housing agency receiving 
     assistance under this division shall establish and implement 
     an administrative grievance procedure under which residents 
     of public housing will--
       (1) be advised of the specific grounds of any proposed 
     adverse public housing agency action;
       (2) have an opportunity for a hearing before an impartial 
     party (including appropriate employees of the public housing 
     agency) upon timely request within a reasonable period of 
     time;
       (3) have an opportunity to examine any documents or records 
     or regulations related to the proposed action;
       (4) be entitled to be represented by another person of 
     their choice at any hearing;
       (5) be entitled to ask questions of witnesses and have 
     others make statements on their behalf; and
       (6) be entitled to receive a written decision by the public 
     housing agency on the proposed action.
       (b) Exclusion From Administrative Procedure of Grievances 
     Concerning Evictions From Public Housing Involving Health, 
     Safety, or Peaceful Enjoyment.--A public housing agency may 
     exclude from its procedure established under subsection (a) 
     any grievance, in any jurisdiction which requires that prior 
     to eviction, a tenant be given a hearing in court, which the 
     Secretary determines provides the basic elements of due 
     process (which the Secretary shall establish by rule under 
     section 553 of title 5, United States Code), concerning an 
     eviction from or termination of tenancy in public housing 
     that involves any activity that threatens the health, safety, 
     or right to peaceful enjoyment of the premises of other 
     tenants or employees of the public housing agency or any 
     drug-related criminal activity on or off such premises. In 
     the case of any eviction from or termination of tenancy in 
     public housing not described in the preceding sentence, each 
     of the following provisions shall apply:
       (1) Such eviction or termination shall be subject to an 
     administrative grievance procedure if the tenant so evicted 
     or terminated requests a hearing under such procedure not 
     later than five days after service of notice of such eviction 
     or termination.
       (2) The public housing agency shall take final action 
     regarding a grievance under paragraph (1) not later than 
     thirty days after such notice is served.
       (3) If the public housing agency fails to provide a hearing 
     under the grievance procedure pursuant to a request under 
     paragraph (1) and take final action regarding the grievance 
     before the expiration of the 30-day period under paragraph 
     (2), the notice of eviction or termination shall be 
     considered void and shall not be given any force or effect.
       (4) If a public housing authority takes final action on a 
     grievance for any eviction or termination, the tenant and any 
     member of the tenant's household shall not have any right in 
     connection with any subsequent eviction or termination notice 
     to request or be afforded any administrative grievance 
     hearing during the 1-year period beginning upon the date of 
     the final action.
       (c) Inapplicability to Choice-Based Rental Housing 
     Assistance.--This section may not be construed to require any 
     public housing agency to establish or implement an 
     administrative grievance procedure with respect to assisted 
     families under title XIII.

     SEC. 1111. HEADQUARTERS RESERVE FUND.

       (a) Annual Reservation of Amounts.--Notwithstanding any 
     other provision of law, the Secretary may retain not more 
     than 2 percent of the amounts appropriated to carry out title 
     XII for any fiscal year for use in accordance with this 
     section.
       (b) Use of Amounts.--Any amounts that are retained under 
     subsection (a) or appropriated for use under this section 
     shall be available for subsequent allocation to specific 
     areas and communities, and may only be used for the 
     Department of Housing and Urban Development and--
       (1) for unforeseen housing needs resulting from natural and 
     other disasters;
       (2) for housing needs resulting from emergencies, as 
     determined by the Secretary, other than such disasters;
       (3) for housing needs related to a settlement of 
     litigation, including settlement of fair housing litigation; 
     and
       (4) for needs related to the Secretary's actions under this 
     division regarding troubled and at-risk public housing 
     agencies.
     Housing needs under this subsection may be met through the 
     provision of assistance in accordance with title XII or title 
     XIII, or both.

     SEC. 1112. LABOR STANDARDS.

       (a) In General.--Any contract for grants, sale, or lease 
     pursuant to this division relating to public housing shall 
     contain the following provisions:
       (1) Operation.--A provision requiring that not less than 
     the wages prevailing in the locality, as determined or 
     adopted (subsequent to a determination under applicable State 
     or local law) by the Secretary, shall be paid to all 
     contractors and persons employed in the operation of the low-
     income housing development involved.
       (2) Production.--A provision that not less than the wages 
     prevailing in the locality, as predetermined by the Secretary 
     of Labor pursuant to the Davis-Bacon Act (40 U.S.C. 276a--
     276a-5), shall be paid to all laborers and mechanics employed 
     in the production of the development involved.
     The Secretary shall require certification as to compliance 
     with the provisions of this section before making any payment 
     under such contract.
       (b) Exceptions.--Subsection (a) and the provisions relating 
     to wages (pursuant to subsection (a)) in any contract for 
     grants, sale, or lease pursuant to this division relating to 
     public housing, shall not apply to any individual who--
       (1) performs services for which the individual volunteered;
       (2)(A) does not receive compensation for such services; or
       (B) is paid expenses, reasonable benefits, or a nominal fee 
     for such services; and
       (3) is not otherwise employed at any time in the 
     construction work.

     SEC. 1113. NONDISCRIMINATION.

       (a) In General.--No person in the United States shall on 
     the grounds of race, color, national origin, religion, or sex 
     be excluded from participation in, be denied the benefits of, 
     or be subjected to discrimination under any program or 
     activity funded in whole or in part with amounts made 
     available under this division. Any prohibition against 
     discrimination on the basis of age under the Age 
     Discrimination Act of 1975 or with respect to an otherwise 
     qualified handicapped individual as provided in section 504 
     of the Rehabilitation Act of 1973 shall also apply to any 
     such program or activity.
       (b) Civil Rights Compliance.--Each public housing agency 
     that receives grant amounts under this division shall use 
     such amounts and carry out its local housing management plan 
     approved under section 1107 in conformity with title VI of 
     the Civil Rights Act of 1964, the Fair Housing Act, section 
     504 of the Rehabilitation Act of 1973, the Age Discrimination 
     Act of 1975, and the Americans With Disabilities Act of 1990, 
     and shall affirmatively further fair housing.

     SEC. 1114. PROHIBITION ON USE OF FUNDS.

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

     SEC. 1115. INAPPLICABILITY TO INDIAN HOUSING.

       Except as specifically provided by law, the provisions of 
     this title, and titles XII, XIII, XIV, and XV shall not apply 
     to public housing developed or operated pursuant to a 
     contract between the Secretary and an Indian housing 
     authority under the United States Housing Act of 1937 or to 
     housing assisted under the Native American Housing Assistance 
     and Self-Determination Act of 1996.

     SEC. 1116. REGULATIONS.

       (a) In General.--The Secretary may issue any regulations 
     necessary to carry out this division. This subsection shall 
     take effect on the date of the enactment of this Act.
       (b) Rule of Construction.--Any failure by the Secretary to 
     issue any regulations authorized under subsection (a) shall 
     not affect the effectiveness of any provision of this 
     division or any amendment made by this division.

[[Page H5603]]

                       TITLE XII--PUBLIC HOUSING

                        Subtitle A--Block Grants

     SEC. 1201. BLOCK GRANT CONTRACTS.

       (a) In General.--The Secretary shall enter into contracts 
     with public housing agencies under which--
       (1) the Secretary agrees to make a block grant under this 
     title, in the amount provided under section 1202(c), for 
     assistance for low-income housing to the public housing 
     agency for each fiscal year covered by the contract; and
       (2) the agency agrees--
       (A) to provide safe, clean, and healthy housing that is 
     affordable to low-income families and services for families 
     in such housing;
       (B) to operate, or provide for the operation, of such 
     housing in a financially sound manner;
       (C) to use the block grant amounts in accordance with this 
     title and the local housing management plan for the agency 
     that complies with the requirements of section 1106;
       (D) to involve residents of housing assisted with block 
     grant amounts in functions and decisions relating to 
     management and the quality of life in such housing;
       (E) that the management of the public housing of the agency 
     shall be subject to actions authorized under subtitle D of 
     title XV;
       (F) that the Secretary may take actions under section 1205 
     with respect to improper use of grant amounts provided under 
     the contract; and
       (G) to otherwise comply with the requirements under this 
     title.
       (b) Small Public Housing Agency Capital Grant Option.--For 
     any fiscal year, upon the request of the Governor of the 
     State, the Secretary shall make available directly to the 
     State, from the amounts otherwise included in the block 
     grants for all public housing agencies in such State which 
     own or operate less than 100 dwelling units, \1/2\ of that 
     portion of such amounts that is derived from the capital 
     improvement allocations for such agencies pursuant to section 
     1203(c)(1) or 1203(d)(2), as applicable. The Governor of the 
     State will have the responsibility to distribute all of such 
     funds, in amounts determined by the Governor, only to meet 
     the exceptional capital improvement requirements for the 
     various public housing agencies in the State which operate 
     less than 100 dwelling units: Provided, however, that for 
     States where Federal funds provided to the State are subject 
     to appropriation action by the State legislature, the capital 
     funds made available to the Governor under this subsection 
     shall be subject to such appropriation by the State 
     legislature.
       (c) Modification.--Contracts and agreements between the 
     Secretary and a public housing agency may not be amended in a 
     manner which would--
       (1) impair the rights of--
       (A) leaseholders for units assisted pursuant to a contract 
     or agreement; or
       (B) the holders of any outstanding obligations of the 
     public housing agency involved for which annual contributions 
     have been pledged; or
       (2) provide for payment of block grant amounts under this 
     title in an amount exceeding the allocation for the agency 
     determined under section 1204.
     Any rule of law contrary to this subsection shall be deemed 
     inapplicable.

     SEC. 1202. GRANT AUTHORITY, AMOUNT, AND ELIGIBILITY.

       (a) Authority.--The Secretary shall make block grants under 
     this title to eligible public housing agencies in accordance 
     with block grant contracts under section 1201.
       (b) Performance Funds.--
       (1) In general.--The Secretary shall establish 2 funds for 
     the provision of grants to eligible public housing agencies 
     under this title, as follows:
       (A) Capital fund.--A capital fund to provide capital and 
     management improvements to public housing developments.
       (B) Operating fund.--An operating fund for public housing 
     operations.
       (2) Flexibility of funding.--
       (A) In general.--A public housing agency may use up to 20 
     percent of the amounts from a grant under this title that are 
     allocated and provided from the capital fund for activities 
     that are eligible under section 1203(a)(2) to be funded with 
     amounts from the operating fund.
       (B) Full flexibility for small pha's.--In the case of a 
     public housing agency that owns or operates less than 250 
     public housing dwelling units and is (in the determination of 
     the Secretary) operating and maintaining its public housing 
     in a safe, clean, and healthy condition, the agency may use 
     amounts from a grant under this title for any eligible 
     activities under section 1203(a), regardless of the fund from 
     which the amounts were allocated and provided.
       (c) Amount of Grants.--The amount of the grant under this 
     title for a public housing agency for a fiscal year shall be 
     the amount of the allocation for the agency determined under 
     section 1204, except as otherwise provided in this title and 
     title XV.
       (d) Eligibility.--A public housing agency shall be an 
     eligible public housing agency with respect to a fiscal year 
     for purposes of this title only if--
       (1) the Secretary has entered into a block grant contract 
     with the agency;
       (2) the agency has submitted a local housing management 
     plan to the Secretary for such fiscal year;
       (3) the plan has been determined to comply with the 
     requirements under section 1106 and the Secretary has not 
     notified the agency that the plan fails to comply with such 
     requirements;
       (4) the agency is exempt from local taxes, as provided 
     under subsection (e), or receives a contribution, as provided 
     under such subsection;
       (5) no member of the board of directors or other governing 
     body of the agency, or the executive director, has been 
     convicted of a felony;
       (6) the agency has entered into an agreement providing for 
     local cooperation in accordance with subsection (f); and
       (7) the agency has not been disqualified for a grant 
     pursuant to section 1205(a) or title XV.
       (e) Payments in Lieu of State and Local Taxation of Public 
     Housing Developments.--
       (1) Exemption from taxation.--A public housing agency may 
     receive a block grant under this title only if--
       (A)(i) the developments of the agency (exclusive of any 
     portions not assisted with amounts provided under this title) 
     are exempt from all real and personal property taxes levied 
     or imposed by the State, city, county, or other political 
     subdivision; and
       (ii) the public housing agency makes payments in lieu of 
     taxes to such taxing authority equal to 10 percent of the 
     sum, for units charged in the developments of the agency, of 
     the difference between the gross rent and the utility cost, 
     or such lesser amount as is--
       (I) prescribed by State law;
       (II) agreed to by the local governing body in its agreement 
     under subsection (f) for local cooperation with the public 
     housing agency or under a waiver by the local governing body; 
     or
       (III) due to failure of a local public body or bodies other 
     than the public housing agency to perform any obligation 
     under such agreement; or
       (B) the agency complies with the requirements under 
     subparagraph (A) with respect to public housing developments 
     (including public housing units in mixed-income 
     developments), but the agency agrees that the units other 
     than public housing units in any mixed-income developments 
     (as such term is defined in section 1221(c)(2)) shall be 
     subject to any otherwise applicable real property taxes 
     imposed by the State, city, county or other political 
     subdivision.
       (2) Effect of failure to exempt from taxation.--
     Notwithstanding paragraph (1), a public housing agency that 
     does not comply with the requirements under such paragraph 
     may receive a block grant under this title, but only if the 
     State, city, county, or other political subdivision in which 
     the development is situated contributes, in the form of cash 
     or tax remission, the amount by which the taxes paid with 
     respect to the development exceed 10 percent of the gross 
     rent and utility cost charged in the development.
       (f) Local Cooperation.--In recognition that there should be 
     local determination of the need for low-income housing to 
     meet needs not being adequately met by private enterprise, 
     the Secretary may not make any grant under this title to a 
     public housing agency unless the governing body of the 
     locality involved has entered into an agreement with the 
     agency providing for the local cooperation required by the 
     Secretary pursuant to this title. The Secretary shall require 
     that each such agreement for local cooperation shall provide 
     that, notwithstanding any order, judgment, or decree of any 
     court (including any settlement order), before making any 
     amounts provided under a grant under this title available for 
     use for the production of any housing or other property not 
     previously used as public housing, the public housing agency 
     shall--
       (1) notify the chief executive officer (or other 
     appropriate official) of the unit of general local government 
     in which the public housing for which such amounts are to be 
     so used is located (or to be located) of such use; and
       (2) pursuant to the request of such unit of general local 
     government, provide such information as may reasonably be 
     requested by such unit of general local government regarding 
     the public housing to be so assisted (except to the extent 
     otherwise prohibited by law) and consult with representatives 
     of such local government regarding the public housing.
       (g) Exception.--Notwithstanding subsection (a), the 
     Secretary may make a grant under this title for a public 
     housing agency that is not an eligible public housing agency 
     but only for the period necessary to secure, in accordance 
     with this title, an alternative public housing agency for the 
     public housing of the ineligible agency.
       (h) Recapture of Capital Assistance Amounts.--The Secretary 
     may recapture, from any grant amounts made available to a 
     public housing agency from the capital fund, any portion of 
     such amounts that are not used or obligated by the public 
     housing agency for use for eligible activities under section 
     1203(a)(1) (or dedicated for use pursuant to section 
     1202(b)(2)(A)) before the expiration of the 24-month period 
     beginning upon the award of such grant to the agency.

     SEC. 1203. ELIGIBLE AND REQUIRED ACTIVITIES.

       (a) Eligible Activities.--Except as provided in subsection 
     (b) and in section 1202(b)(2), grant amounts allocated and 
     provided from the capital fund and grant amounts allocated 
     and provided from the operating fund may be used for the 
     following activities:

[[Page H5604]]

       (1) Capital fund activities.--Grant amounts from the 
     capital fund may be used for--
       (A) the production and modernization of public housing 
     developments, including the redesign, reconstruction, and 
     reconfiguration of public housing sites and buildings and the 
     production of mixed-income developments;
       (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 under section 1261;
       (G) tenant relocation;
       (H) capital expenditures to facilitate programs to improve 
     the economic empowerment and self-sufficiency of public 
     housing tenants; and
       (I) capital expenditures to improve the security and safety 
     of residents.
       (2) Operating fund activities.--Grant amounts from the 
     operating fund may be used for--
       (A) procedures and systems to maintain and ensure the 
     efficient management and operation of public housing units;
       (B) activities to ensure a program of routine preventative 
     maintenance;
       (C) anti-crime and anti-drug activities, including the 
     costs of providing adequate security for public housing 
     tenants;
       (D) activities related to the provision of services, 
     including service coordinators for elderly persons or persons 
     with disabilities and including child care services for 
     public housing residents;
       (E) activities to provide for management and participation 
     in the management of public housing by public housing 
     tenants;
       (F) the costs associated with the operation and management 
     of mixed-income developments;
       (G) the costs of insurance;
       (H) the energy costs associated with public housing units, 
     with an emphasis on energy conservation;
       (I) the costs of administering a public housing community 
     work program under section 1105, including the costs of any 
     related insurance needs; and
       (J) activities in connection with a homeownership program 
     for public housing residents under subtitle D, including 
     providing financing or assistance for purchasing housing, or 
     the provision of financial assistance to resident management 
     corporations or resident councils to obtain training, 
     technical assistance, and educational assistance to promote 
     homeownership opportunities.
       (b) Required Conversion of Assistance for Public Housing to 
     Rental Housing Assistance.--
       (1) Requirement.--A public housing agency that receives 
     grant amounts under this title shall provide assistance in 
     the form of rental housing assistance under title XIII, or 
     appropriate site revitalization or other appropriate capital 
     improvements approved by the Secretary, in lieu of assisting 
     the operation and modernization of any building or buildings 
     of public housing, if the agency provides sufficient evidence 
     to the Secretary that the building or buildings--
       (A) are on the same or contiguous sites;
       (B) consist of more than 300 dwelling units;
       (C) have a vacancy rate of at least 10 percent for dwelling 
     units not in funded, on-schedule modernization programs;
       (D) are identified as distressed housing for which the 
     public housing agency cannot assure the long-term viability 
     as public housing through reasonable revitalization, density 
     reduction, or achievement of a broader range of household 
     income; and
       (E) have an estimated cost of continued operation and 
     modernization as public housing that exceeds the cost of 
     providing choice-based rental assistance under title XIII for 
     all families in occupancy, based on appropriate indicators of 
     cost (such as the percentage of the total development cost 
     required for modernization).
     Public housing agencies shall identify properties that meet 
     the definition of subparagraphs (A) through (E) and shall 
     consult with the appropriate public housing residents and the 
     appropriate unit of general local government in identifying 
     such properties.
       (2) Use of other amounts.--In addition to grant amounts 
     under this title attributable (pursuant to the formulas under 
     section 1204) to the building or buildings identified under 
     paragraph (1), the Secretary may use amounts provided in 
     appropriation Acts for choice-based housing assistance under 
     title XIII for families residing in such building or 
     buildings or for appropriate site revitalization or other 
     appropriate capital improvements approved by the Secretary.
       (3) Enforcement.--The Secretary shall take appropriate 
     action to ensure conversion of any building or buildings 
     identified under paragraph (1) and any other appropriate 
     action under this subsection, if the public housing agency 
     fails to take appropriate action under this subsection.
       (4) Failure of pha's to comply with conversion 
     requirement.--If the Secretary determines that--
       (A) a public housing agency has failed under paragraph (1) 
     to identify a building or buildings in a timely manner,
       (B) a public housing agency has failed to identify one or 
     more buildings which the Secretary determines should have 
     been identified under paragraph (1), or
       (C) one or more of the buildings identified by the public 
     housing agency pursuant to paragraph (1) should not, in the 
     determination of the Secretary, have been identified under 
     that paragraph,
     the Secretary may identify a building or buildings for 
     conversion and take other appropriate action pursuant to this 
     subsection.
       (5) Cessation of unnecessary spending.--Notwithstanding any 
     other provision of law, if, in the determination of the 
     Secretary, a building or buildings meets or is likely to meet 
     the criteria set forth in paragraph (1), the Secretary may 
     direct the public housing agency to cease additional spending 
     in connection with such building or buildings, except to the 
     extent that additional spending is necessary to ensure safe, 
     clean, and healthy housing until the Secretary determines or 
     approves an appropriate course of action with respect to such 
     building or buildings under this subsection.
       (6) Use of budget authority.--Notwithstanding any other 
     provision of law, if a building or buildings are identified 
     pursuant to paragraph (1), the Secretary may authorize or 
     direct the transfer, to the choice-based or tenant-based 
     assistance program of such agency or to appropriate site 
     revitalization or other capital improvements approved by the 
     Secretary, of--
       (A) in the case of an agency receiving assistance under the 
     comprehensive improvement assistance program, any amounts 
     obligated by the Secretary for the modernization of such 
     building or buildings pursuant to section 14 of the United 
     States Housing Act of 1937 (as in effect immediately before 
     the effective date of the repeal under section 1601(b));
       (B) in the case of an agency receiving public housing 
     modernization assistance by formula pursuant to such section 
     14, any amounts provided to the agency which are attributable 
     pursuant to the formula for allocating such assistance to 
     such building or buildings;
       (C) in the case of an agency receiving assistance for the 
     major reconstruction of obsolete projects, any amounts 
     obligated by the Secretary for the major reconstruction of 
     such building or buildings pursuant to section 5(j)(2) of the 
     United States Housing Act of 1937, as in effect immediately 
     before the effective date of the repeal under section 
     1601(b); and
       (D) in the case of an agency receiving assistance pursuant 
     to the formulas under section 1204, any amounts provided to 
     the agency which are attributable pursuant to the formulas 
     for allocating such assistance to such building or buildings.
       (7) Relocation requirements.--Any public housing agency 
     carrying out conversion of public housing under this 
     subsection shall--
       (A) notify the families residing in the public housing 
     development subject to the conversion, in accordance with any 
     guidelines issued by the Secretary governing such 
     notifications, that--
       (i) the development will be removed from the inventory of 
     the public housing agency; and
       (ii) the families displaced by such action will receive 
     choice-based housing assistance or occupancy in a unit 
     operated or assisted by the public housing agency;
       (B) ensure that each family that is a resident of the 
     development is relocated to other safe, clean, and healthy 
     affordable housing, which is, to the maximum extent 
     practicable, housing of the family's choice, including 
     choice-based assistance under title XIII (provided that with 
     respect to choice-based assistance, the preceding requirement 
     shall be fulfilled only upon the relocation of such family 
     into such housing);
       (C) provide any necessary counseling for families displaced 
     by such action to facilitate relocation; and
       (D) provide any reasonable relocation expenses for families 
     displaced by such action.
       (8) Transition.--Any amounts made available to a public 
     housing agency to carry out section 202 of the Departments of 
     Veterans Affairs and Housing and Urban Development, and 
     Independent Agencies Appropriations Act, 1996 (enacted as 
     section 101(e) of the Omnibus Consolidated Rescissions and 
     Appropriations Act of 1996 (Public Law 104-134; 110 Stat. 
     1321-279)) may be used, to the extent or in such amounts as 
     are or have been provided in advance in appropriation Acts, 
     to carry out this section. The Secretary shall provide for 
     public housing agencies to conform and continue actions taken 
     under such section 202 in accordance with the requirements 
     under this section.
       (c) Extension of Deadlines.--The Secretary may, for a 
     public housing agency, extend any deadline established 
     pursuant to this section or a local housing management plan 
     for up to an additional 5 years if the Secretary makes a 
     determination that the deadline is impracticable.
       (d) Compliance With Plan.--The local housing management 
     plan submitted by a public housing agency (including any 
     amendments to the plan), unless determined under section 1107 
     not to comply with the requirements under section 1106, shall 
     be binding upon the Secretary and the public housing agency 
     and the agency shall use any grant amounts provided under 
     this title for eligible activities under subsection (a) in 
     accordance with the plan. This subsection may not be 
     construed to preclude changes or amendments to the plan, as 
     authorized under section 1107 or any actions authorized by 
     this division to be taken without regard to a local housing 
     management plan.

[[Page H5605]]

       (e) Eligible Activities for Increased Income.--Any public 
     housing agency that derives increased nonrental or rental 
     income, as referred to in subsection (c)(2)(B) or (d)(1)(D) 
     of section 1204 or pursuant to provision of mixed-income 
     developments under section 1221(c)(2), may use such amounts 
     for any eligible activity under paragraph (1) or (2) of 
     subsection (a) of this section or for providing choice-based 
     housing assistance under title XIII.

     SEC. 1204. DETERMINATION OF GRANT ALLOCATION.

       (a) In General.--For each fiscal year, after reserving 
     amounts under section 1111 from the aggregate amount made 
     available for the fiscal year for carrying out this title, 
     the Secretary shall allocate any remaining amounts among 
     eligible public housing agencies in accordance with this 
     section, so that the sum of all of the allocations for all 
     eligible authorities is equal to such remaining amount.
       (b) Allocation Amount.--The Secretary shall determine the 
     amount of the allocation for each eligible public housing 
     agency, which shall be--
       (1) for any fiscal year beginning after the enactment of a 
     law containing the formulas described in paragraphs (1) and 
     (2) of subsection (c), the sum of the amounts determined for 
     the agency under each such formula; or
       (2) for any fiscal year beginning before the expiration of 
     such period, the sum of--
       (A) the operating allocation determined under subsection 
     (d)(1) for the agency; and
       (B) the capital improvement allocation determined under 
     subsection (d)(2) for the agency.
       (c) Permanent Allocation Formulas for Capital and Operating 
     Funds.--
       (1) Establishment of capital fund formula.--The formula 
     under this paragraph shall provide for allocating assistance 
     under the capital fund for a fiscal year. The formula may 
     take into account such factors as--
       (A) the number of public housing dwelling units owned or 
     operated by the public housing agency, the characteristics 
     and locations of the developments, and the characteristics of 
     the families served and to be served (including the incomes 
     of the families);
       (B) the need of the public housing agency to carry out 
     rehabilitation and modernization activities, and 
     reconstruction, production, and demolition activities related 
     to public housing dwelling units owned or operated by the 
     public housing agency, including backlog and projected future 
     needs of the agency;
       (C) the cost of constructing and rehabilitating property in 
     the area; and
       (D) the need of the public housing agency to carry out 
     activities that provide a safe and secure environment in 
     public housing units owned or operated by the public housing 
     agency.
       (2) Establishment of operating fund formula.--
       (A) In general.--The formula under this paragraph shall 
     provide for allocating assistance under the operating fund 
     for a fiscal year. The formula may take into account such 
     factors as--
       (i) standards for the costs of operating and reasonable 
     projections of income, taking into account the 
     characteristics and locations of the public housing 
     developments and characteristics of the families served and 
     to be served (including the incomes of the families), or the 
     costs of providing comparable services as determined in 
     accordance with criteria or a formula representing the 
     operations of a prototype well-managed public housing 
     development;
       (ii) the number of public housing dwelling units owned or 
     operated by the public housing agency;
       (iii) the need of the public housing agency to carry out 
     anti-crime and anti-drug activities, including providing 
     adequate security for public housing residents; and
       (iv) any record by the public housing agency of exemplary 
     performance in the operation of public housing.
       (B) Incentive to increase income.--The formula shall 
     provide an incentive to encourage public housing agencies to 
     increase nonrental income and to increase rental income 
     attributable to their units by encouraging occupancy by 
     families whose incomes have increase while in occupancy and 
     newly admitted families. Any such incentive shall provide 
     that the agency shall derive the full benefit of any increase 
     in nonrental or rental income, and such increase shall not 
     result in a decrease in amounts provided to the agency under 
     this title. In addition, an agency shall be permitted to 
     retain, from each fiscal year, the full benefit of such an 
     increase in nonrental or rental income, except to the extent 
     that such benefit exceeds (i) 100 percent of the total amount 
     of the operating allocation for which the agency is eligible 
     under this section, and (ii) the maximum balance permitted 
     for the agency's operating reserve under this section and any 
     regulations issued under this section.
       (C) Treatment of utility rates.--The formula shall not take 
     into account the amount of any cost reductions for a public 
     housing agency due to the difference between projected and 
     actual utility rates attributable to actions that are taken 
     by the agency which lead to such reductions, as determined by 
     the Secretary. In the case of any public housing agency that 
     receives financing from any person or entity other than the 
     Secretary or enters into a performance contract to undertake 
     energy conservation improvements in a public housing 
     development, under which the payment does not exceed the cost 
     of the energy saved as a result of the improvements during a 
     reasonable negotiated contract period, the formula shall not 
     take into account the amount of any cost reductions for the 
     agency due to the differences between projected and actual 
     utility consumption attributable to actions that are taken by 
     the agency which lead to such reductions, as determined by 
     the Secretary. Notwithstanding the preceding 2 sentences, 
     after the expiration of the 10-year period beginning upon the 
     savings initially taking effect, the Secretary may reduce the 
     amount allocated to the agency under the formula by up to 50 
     percent of such differences.
       (3) Consideration of performance, costs, and other 
     factors.--The formulas under paragraphs (1) and (2) should 
     each reward performance and may each consider appropriate 
     factors that reflect the different characteristics and sizes 
     of public housing agencies, the relative needs, revenues, 
     costs, and capital improvements of agencies, and the relative 
     costs to agencies of operating a well-managed agency that 
     meets the performance targets for the agency established in 
     the local housing management plan for the agency.
       (4) Development under negotiated rulemaking procedure.--The 
     formulas under this subsection shall be developed according 
     to procedures for issuance of regulations under the 
     negotiated rulemaking procedure under subchapter III of 
     chapter 5 of title 5, United States Code, except that the 
     formulas shall not be contained in a regulation.
       (5) Report.--Not later than the expiration of the 12-month 
     period beginning upon the enactment of this Act, the 
     Secretary shall submit a report to the Congress containing 
     the proposed formulas established pursuant to paragraph (4) 
     that meets the requirements of this subsection.
       (d) Interim Allocation Requirements.--
       (1) Operating allocation.--
       (A) Applicability to appropriated amounts.--Of any amounts 
     available for allocation under this subsection for a fiscal 
     year, an amount shall be used only to provide amounts for 
     operating allocations under this paragraph for eligible 
     public housing agencies that bears the same ratio to such 
     total amount available for allocation that the amount 
     appropriated for fiscal year 1997 for operating subsidies 
     under section 9 of the United States Housing Act of 1937 
     bears to the sum of such operating subsidy amounts plus the 
     amounts appropriated for such fiscal year for modernization 
     under section 14 of such Act.
       (B) Determination.--The operating allocation under this 
     paragraph for a public housing agency for a fiscal year shall 
     be an amount determined by applying, to the amount to be 
     allocated under this paragraph, the formula used for 
     determining the distribution of operating subsidies for 
     fiscal year 1997 to public housing agencies (as modified 
     under subparagraphs (C) and (D)) under section 9 of the 
     United States Housing Act of 1937, as in effect immediately 
     before the effective date of the repeal under section 
     1601(b).
       (C) Treatment of chronically vacant units.--The Secretary 
     shall revise the formula referred to in subparagraph (B) so 
     that the formula does not provide any amounts, other than 
     utility costs and other necessary costs (such as costs 
     necessary for the protection of persons and property), 
     attributable to any dwelling unit of a public housing agency 
     that has been vacant continuously for 6 or more months. A 
     unit shall not be considered vacant for purposes of this 
     paragraph if the unit is unoccupied because of rehabilitation 
     or renovation that is on schedule.
       (D) Treatment of increases in income.--The Secretary shall 
     revise the formula referred to in subparagraph (B) to provide 
     an incentive to encourage public housing agencies to increase 
     nonrental income and to increase rental income attributable 
     to their units by encouraging occupancy by families whose 
     incomes have increased while in occupancy and newly admitted 
     families. Any such incentive shall provide that the agency 
     shall derive the full benefit of any increase in nonrental or 
     rental income, and such increase shall not result in a 
     decrease in amounts provided to the agency under this title. 
     In addition, an agency shall be permitted to retain, from 
     each fiscal year, the full benefit of such an increase in 
     nonrental or rental income, except that such benefit may not 
     be retained if--
       (i) the agency's operating allocation equals 100 percent of 
     the amount for which it is eligible under section 9 of the 
     United States Housing Act of 1937, as in effect immediately 
     before the effective date of the repeal under section 1601(b) 
     of this Act; and
       (ii) the agency's operating reserve balance is equal to the 
     maximum amount permitted under section 9 of the United States 
     Housing Act of 1937, as in effect immediately before the 
     effective date of the repeal under section 1601(b) of this 
     Act.
       (2) Capital improvement allocation.--
       (A) Applicability to appropriated amounts.--Of any amounts 
     available for allocation under this subsection for a fiscal 
     year, an amount shall be used only to provide amounts for 
     capital improvement allocations under this paragraph for 
     eligible public housing agencies that bears the same ratio to 
     such total amount available for allocation that the amount 
     appropriated for fiscal year 1997 for modernization under 
     section 14 of the United States Housing Act of 1937

[[Page H5606]]

     bears to the sum of such modernization amounts plus the 
     amounts appropriated for such fiscal year for operating 
     subsidies under section 9 of such Act.
       (B) Determination.--The capital improvement allocation 
     under this paragraph for an eligible public housing agency 
     for a fiscal year shall be determined by applying, to the 
     amount to be allocated under this paragraph, the formula used 
     for determining the distribution of modernization assistance 
     for fiscal year 1997 to public housing agencies under section 
     14 of the United States Housing Act of 1937, as in effect 
     immediately before the effective date of the repeal under 
     section 1601(b), except that the Secretary shall establish a 
     method for taking into consideration allocation of amounts 
     under the comprehensive improvement assistance program.
       (e) Eligibility of Units Acquired From Proceeds of Sales 
     Under Demolition or Disposition Plan.--If a public housing 
     agency uses proceeds from the sale of units under a 
     homeownership program in accordance with section 1251 to 
     acquire additional units to be sold to low-income families, 
     the additional units shall be counted as public housing for 
     purposes of determining the amount of the allocation to the 
     agency under this section until sale by the agency, but in 
     any case no longer than 5 years.

     SEC. 1205. SANCTIONS FOR IMPROPER USE OF AMOUNTS.

       (a) In General.--In addition to any other actions 
     authorized under this title, if the Secretary finds pursuant 
     to an audit under section 1541 that a public housing agency 
     receiving grant amounts under this title has failed to comply 
     substantially with any provision of this title, the Secretary 
     may--
       (1) terminate payments under this title to the agency;
       (2) withhold from the agency amounts from the total 
     allocation for the agency pursuant to section 1204;
       (3) reduce the amount of future grant payments under this 
     title to the agency by an amount equal to the amount of such 
     payments that were not expended in accordance with this 
     title;
       (4) limit the availability of grant amounts provided to the 
     agency under this title to programs, projects, or activities 
     not affected by such failure to comply;
       (5) withhold from the agency amounts allocated for the 
     agency under title XIII; or
       (6) order other corrective action with respect to the 
     agency.
       (b) Termination of Compliance Action.--If the Secretary 
     takes action under subsection (a) with respect to a public 
     housing agency, the Secretary shall--
       (1) in the case of action under subsection (a)(1), resume 
     payments of grant amounts under this title to the agency in 
     the full amount of the total allocation under section 1204 
     for the agency at the time that the Secretary first 
     determines that the agency will comply with the provisions of 
     this title;
       (2) in the case of action under paragraph (2), (5), or (6) 
     of subsection (a), make withheld amounts available as the 
     Secretary considers appropriate to ensure that the agency 
     complies with the provisions of this title; or
       (3) in the case of action under subsection (a)(4), release 
     such restrictions at the time that the Secretary first 
     determines that the agency will comply with the provisions of 
     this title.

           Subtitle B--Admissions and Occupancy Requirements

     SEC. 1221. LOW-INCOME HOUSING REQUIREMENT.

       (a) Production Assistance.--Any public housing produced 
     using amounts provided under a grant under this title or 
     under the United States Housing Act of 1937 shall be operated 
     as public housing for the 40-year period beginning upon such 
     production.
       (b) Operating Assistance.--No portion of any public housing 
     development operated with amounts from a grant under this 
     title or operating assistance provided under the United 
     States Housing Act of 1937 may be disposed of before the 
     expiration of the 10-year period beginning upon the 
     conclusion of the fiscal year for which the grant or such 
     assistance was provided, except as provided in this Act.
       (c) Capital Improvements Assistance.--Amounts may be used 
     for eligible activities under section 1203(a)(1) only for the 
     following housing developments:
       (1) Low-income developments.--Amounts may be used for a 
     low-income housing development that--
       (A) is owned by public housing agencies;
       (B) is operated as low-income rental housing and produced 
     or operated with assistance provided under a grant under this 
     title; and
       (C) is consistent with the purposes of this title.
     Any development, or portion thereof, referred to in this 
     paragraph for which activities under section 1203(a)(1) are 
     conducted using amounts from a grant under this title shall 
     be maintained and used as public housing for the 20-year 
     period beginning upon the receipt of such grant. Any public 
     housing development, or portion thereof, that received the 
     benefit of a grant pursuant to section 14 of the United 
     States Housing Act of 1937 shall be maintained and used as 
     public housing for the 20-year period beginning upon receipt 
     of such amounts.
       (2) Mixed income developments.--Amounts may be used for 
     eligible activities under section 1203(a)(1) for mixed-income 
     developments, which shall be a housing development that--
       (A) contains dwelling units that are available for 
     occupancy by families other than low-income families;
       (B) contains a number of dwelling units--
       (i) which units are made available (by master contract or 
     individual lease) for occupancy only by low- and very low-
     income families identified by the public housing agency;
       (ii) which number is not less than a reasonable number of 
     units, including related amenities, taking into account the 
     amount of the assistance provided by the agency compared to 
     the total investment (including costs of operation) in the 
     development;
       (iii) which units are subject to the statutory and 
     regulatory requirements of the public housing program, except 
     that the Secretary may grant appropriate waivers to such 
     statutory and regulatory requirements if reductions in 
     funding or other changes to the program make continued 
     application of such requirements impracticable;
       (iv) which units are specially designated as dwelling units 
     under this subparagraph, except the equivalent units in the 
     development may be substituted for designated units during 
     the period the units are subject to the requirements of the 
     public housing program; and
       (v) which units shall be eligible for assistance under this 
     title; and
       (C) is owned by the public housing agency, an affiliate 
     controlled by it, or another appropriate entity.
     Notwithstanding any other provision of this title, to 
     facilitate the establishment of socioeconomically mixed 
     communities, a public housing agency that uses grant amounts 
     under this title for a mixed income development under this 
     paragraph may, to the extent that income from such a 
     development reduces the amount of grant amounts used for 
     operating or other costs relating to public housing, use such 
     resulting savings to rent privately developed dwelling units 
     in the neighborhood of the mixed income development. Such 
     units shall be made available for occupancy only by low-
     income families eligible for residency in public housing.

     SEC. 1222. FAMILY ELIGIBILITY.

       (a) In General.--Dwelling units in public housing may be 
     rented only to families who are low-income families at the 
     time of their initial occupancy of such units.
       (b) Income Mix Within Developments.--A public housing 
     agency may establish and utilize income-mix criteria for the 
     selection of residents for dwelling units in public housing 
     developments that limit admission to a development by 
     selecting applicants having incomes appropriate so that the 
     mix of incomes of families occupying the development at any 
     time is proportional to the income mix in the eligible 
     population of the jurisdiction of the agency at such time, as 
     adjusted to take into consideration the severity of housing 
     need. Any criteria established under this subsection shall be 
     subject to the provisions of subsection (c).
       (c) Income Mix.--
       (1) PHA income mix.--Of the public housing dwelling units 
     of a public housing agency made available for occupancy by 
     eligible families, not less than 35 percent shall be occupied 
     by families whose incomes at the time of occupancy do not 
     exceed 30 percent of the area median income, as determined by 
     the Secretary with adjustments for smaller and larger 
     families, except that the Secretary, may for purposes of this 
     subsection, establish income ceilings higher or lower than 30 
     percent of the median for the area on the basis of the 
     Secretary's findings that such variations are necessary 
     because of unusually high or low family incomes. This 
     paragraph may not be construed to create any authority on the 
     part of any public housing agency to evict any family 
     residing in public housing solely because of the income of 
     the family or because of any noncompliance or overcompliance 
     with the requirement of this paragraph.
       (2) Prohibition of concentration of low-income families.--A 
     public housing agency may not, in complying with the 
     requirements under paragraph (1), concentrate very low-income 
     families (or other families with relatively low incomes) in 
     public housing dwelling units in certain public housing 
     developments or certain buildings within developments. The 
     Secretary may review the income and occupancy characteristics 
     of the public housing developments, and the buildings of such 
     developments, of public housing agencies to ensure compliance 
     with the provisions of this paragraph.
       (3) Fungibility with choice-based assistance.--If, during a 
     fiscal year, a public housing agency provides choice-based 
     housing assistance under title XIII for a number of low-
     income families, who are initially assisted by the agency in 
     such year and have incomes described in section 1321(b) 
     (relating to income targeting), which exceeds the number of 
     families that is required for the agency to comply with the 
     percentage requirement under such section 1321(b) for such 
     fiscal year, notwithstanding paragraph (1) of this 
     subsection, the number of public housing dwelling units that 
     the agency must otherwise make available in accordance with 
     such paragraph to comply with the percentage requirement 
     under such paragraph shall be reduced by such excess number 
     of families for such fiscal year.
       (d) Waiver of Eligibility Requirements for Occupancy by 
     Police Officers.--
       (1) Authority and waiver.--To the extent necessary to 
     provide occupancy in public housing dwelling units to police 
     officers and other law enforcement or security personnel

[[Page H5607]]

     (who are not otherwise eligible for residence in public 
     housing) and to increase security for other public housing 
     residents in developments where crime has been a problem, a 
     public housing agency may, with respect to such units and 
     subject to paragraph (2)--
       (A) waive--
       (i) the provisions of subsection (a) of this section and 
     section 1225(a); and
       (ii) the applicability of--

       (I) any preferences for occupancy established under section 
     1223;
       (II) the minimum rental amount established pursuant to 
     section 1225(c) and any maximum monthly rental amount 
     established pursuant to section 1225(b);
       (III) any criteria relating to income mix within 
     developments established under subsection (b);
       (IV) the income mix requirements under subsection (c); and
       (V) any other occupancy limitations or requirements; and

       (B) establish special rent requirements and other terms and 
     conditions of occupancy.
       (2) Conditions of waiver.--A public housing agency may take 
     the actions authorized in paragraph (1) only if agency 
     determines that such actions will increase security in the 
     public housing developments involved and will not result in a 
     significant reduction of units available for residence by 
     low-income families.

     SEC. 1223. PREFERENCES FOR OCCUPANCY.

       (a) Authority To Establish.--Each public housing agency may 
     establish a system for making dwelling units in public 
     housing available for occupancy that provides preference for 
     such occupancy to families having certain characteristics.
       (b) Content.--Each system of preferences established 
     pursuant to this section shall be based upon local housing 
     needs and priorities, as determined by the public housing 
     agency using generally accepted data sources, including any 
     information obtained pursuant to an opportunity for public 
     comment as provided under section 1106(e) and under the 
     requirements applicable to the comprehensive housing 
     affordability strategy for the relevant jurisdiction.
       (c) Sense of the Congress.--It is the sense of the Congress 
     that, to the greatest extent practicable, public housing 
     agencies involved in the selection of tenants under the 
     provisions of this title should adopt preferences for 
     individuals who are victims of domestic violence.

     SEC. 1224. ADMISSION PROCEDURES.

       (a) Admission Requirements.--A public housing agency shall 
     ensure that each family residing in a public housing 
     development owned or administered by the agency is admitted 
     in accordance with the procedures established under this 
     title by the agency and the income limits under section 1222.
       (b) Notification of Application Decisions.--A public 
     housing agency shall establish procedures designed to provide 
     for notification to an applicant for admission to public 
     housing of the determination with respect to such 
     application, the basis for the determination, and, if the 
     applicant is determined to be eligible for admission, the 
     projected date of occupancy (to the extent such date can 
     reasonably be determined). If an agency denies an applicant 
     admission to public housing, the agency shall notify the 
     applicant that the applicant may request an informal hearing 
     on the denial within a reasonable time of such notification.
       (c) Site-Based Waiting Lists.--A public housing agency may 
     establish procedures for maintaining waiting lists for 
     admissions to public housing developments of the agency, 
     which may include (notwithstanding any other law, regulation, 
     handbook, or notice to the contrary) a system of site-based 
     waiting lists whereby applicants may apply directly at or 
     otherwise designate the development or developments in which 
     they seek to reside. All such procedures shall comply with 
     all provisions of title VI of the Civil Rights Act of 1964, 
     the Fair Housing Act, and other applicable civil rights laws.
       (d) Confidentiality for Victims of Domestic Violence.--A 
     public housing agency shall be subject to the restrictions 
     regarding release of information relating to the identity and 
     new residence of any family in public housing that was a 
     victim of domestic violence that are applicable to shelters 
     pursuant to the Family Violence Prevention and Services Act. 
     The agency shall work with the United States Postal Service 
     to establish procedures consistent with the confidentiality 
     provisions in the Violence Against Women Act of 1994.
       (e) Transfers.--A public housing agency may apply, to each 
     public housing resident seeking to transfer from one 
     development to another development owned or operated by the 
     agency, the screening procedures applicable at such time to 
     new applicants for public housing.

     SEC. 1225. FAMILY CHOICE OF RENTAL PAYMENT.

       (a) Rental Contribution by Resident.--A family residing in 
     a public housing dwelling shall pay as monthly rent for the 
     unit the amount determined under paragraph (1) or (2) of 
     subsection (b), subject to the requirement under subsection 
     (c). Each public housing agency shall provide for each family 
     residing in a public housing dwelling unit owned or 
     administered by the agency to elect annually whether the rent 
     paid by such family shall be determined under paragraph (1) 
     or (2) of subsection (b).
       (b) Allowable Rent Structures.--
       (1) Flat rents.--Each public housing agency shall 
     establish, for each dwelling unit in public housing owned or 
     administered by the agency, a flat rental amount for the 
     dwelling unit, which shall--
       (A) be based on the rental value of the unit, as determined 
     by the public housing agency; and
       (B) be designed in accordance with subsection (e) so that 
     the rent structures do not create a disincentive for 
     continued residency in public housing by families who are 
     attempting to become economically self-sufficient through 
     employment or who have attained a level of self-sufficiency 
     through their own efforts.
     The rental amount for a dwelling unit shall be considered to 
     comply with the requirements of this paragraph if such amount 
     does not exceed the actual monthly costs to the public 
     housing agency attributable to providing and operating the 
     dwelling unit. The preceding sentence may not be construed to 
     require establishment of rental amounts equal to or based on 
     operating costs or to prevent public housing agencies from 
     developing flat rents required under this paragraph in any 
     other manner that may comply with this paragraph.
       (2) Income-based rents.--The monthly rental amount 
     determined under this paragraph for a family shall be an 
     amount, determined by the public housing agency, that does 
     not exceed the greatest of the following amounts (rounded to 
     the nearest dollar):
       (A) 30 percent of the monthly adjusted income of the 
     family.
       (B) 10 percent of the monthly income of the family.
       (C) If the family is receiving payments for welfare 
     assistance from a public agency and a part of such payments, 
     adjusted in accordance with the actual housing costs of the 
     family, is specifically designated by such agency to meet the 
     housing costs of the family, the portion of such payments 
     that is so designated.
     Nothing in this paragraph may be construed to require a 
     public housing agency to charge a monthly rent in the maximum 
     amount permitted under this paragraph.
       (c) Minimum Rental Amount.--Notwithstanding the method for 
     rent determination elected by a family pursuant to subsection 
     (a), each public housing agency shall require that the 
     monthly rent for each dwelling unit in public housing owned 
     or administered by the agency shall not be less than a 
     minimum amount (which amount shall include any amount allowed 
     for utilities), which shall be an amount determined by the 
     agency that is not less than $25 nor more than $50.
       (d) Hardship Provisions.--
       (1) Minimum rental.--
       (A) In general.--Notwithstanding subsection (c), a public 
     housing agency shall grant an exemption from application of 
     the minimum monthly rental under such subsection to any 
     family unable to pay such amount because of financial 
     hardship, which shall include situations in which (i) the 
     family has lost eligibility for or is awaiting an eligibility 
     determination for a Federal, State, or local assistance 
     program, including a family that includes a member who is an 
     alien lawfully admitted for permanent residence under the 
     Immigration and Nationality Act who would be entitled to 
     public benefits but for title IV of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996; (ii) the family would be evicted as a result of the 
     imposition of the minimum rent requirement under subsection 
     (c); (iii) the income of the family has decreased because of 
     changed circumstance, including loss of employment; and (iv) 
     a death in the family has occurred; and other situations as 
     may be determined by the agency.
       (B) Waiting period.--If a resident requests a hardship 
     exemption under this paragraph and the public housing agency 
     reasonably determines the hardship to be of a temporary 
     nature, an exemption shall not be granted during the 90-day 
     period beginning upon the making of a request for the 
     exemption. A resident may not be evicted during such 90-day 
     period for nonpayment of rent. In such a case, if the 
     resident thereafter demonstrates that the financial hardship 
     is of a long-term basis, the agency shall retroactively 
     exempt the resident from the applicability of the minimum 
     rent requirement for such 90-day period.
       (2) Switching rent determination methods.--Notwithstanding 
     subsection (a), in the case of a family that has elected to 
     pay rent in the amount determined under subsection (b)(1), a 
     public housing agency shall provide for the family to pay 
     rent in the amount determined under subsection (b)(2) during 
     the period for which such election was made if the family is 
     unable to pay the amount determined under subsection (b)(1) 
     because of financial hardship, including--
       (A) situations in which the income of the family has 
     decreased because of changed circumstances, loss of reduction 
     of employment, death in the family, and reduction in or loss 
     of income or other assistance;
       (B) an increase, because of changed circumstances, in the 
     family's expenses for--
       (i) medical costs;
       (ii) child care;
       (iii) transportation;
       (iv) education; or
       (v) similar items; and
       (C) such other situations as may be determined by the 
     agency.
       (e) Encouragement of Self-Sufficiency.--The rental policy 
     developed by each public housing agency shall encourage and 
     reward employment and economic self-sufficiency.

[[Page H5608]]

       (f) Income Reviews.--Each public housing agency shall 
     review the income of each family occupying a dwelling unit in 
     public housing owned or administered by the agency not less 
     than annually, except that, in the case of families that are 
     paying rent in the amount determined under subsection (b)(1), 
     the agency shall review the income of such family not less 
     than once every 3 years.
       (g) Disallowance of Earned Income From Rent 
     Determinations.--
       (1) In general.--Notwithstanding any other provision of 
     law, the rent payable under this section by a family 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 rent 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) shall be phased in over a 
     subsequent 3-year period.
       (3) Transition.--Notwithstanding the provisions of 
     paragraphs (1) and (2), 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 in effect before 
     the effective date of the repeal under section 1601(b) of 
     this Act) shall be governed by such authority after such 
     date.
       (h) Phase-In of Rent Contribution Increases After Effective 
     Date.--
       (1) In general.--Except as provided in paragraph (2), for 
     any family residing in a dwelling unit in public housing upon 
     the effective date of this division, if the monthly 
     contribution for rental of an assisted dwelling unit to be 
     paid by the family upon initial applicability of this title 
     is greater than the amount paid by the family under the 
     provisions of the United States Housing Act of 1937 
     immediately before such applicability, any such resulting 
     increase in rent contribution shall be--
       (A) phased in equally over a period of not less than 3 
     years, if such increase is 30 percent or more of such 
     contribution before initial applicability; and
       (B) limited to not more than 10 percent per year if such 
     increase is more than 10 percent but less than 30 percent of 
     such contribution before initial applicability.
       (2) Exception.--The minimum rental amount under subsection 
     (c) shall apply to each family described in paragraph (1) of 
     this subsection, notwithstanding such paragraph.

     SEC. 1226. LEASE REQUIREMENTS.

       In renting dwelling units in a public housing development, 
     each public housing agency shall utilize leases that--
       (1) do not contain unreasonable terms and conditions;
       (2) obligate the public housing agency to maintain the 
     development in compliance with the housing quality 
     requirements under section 1232;
       (3) require the public housing agency to give adequate 
     written notice of termination of the lease, which shall not 
     be less than--
       (A) the period provided under the applicable law of the 
     jurisdiction or 14 days, whichever is less, in the case of 
     nonpayment of rent;
       (B) a reasonable period of time, but not to exceed 14 days, 
     when the health or safety of other residents or public 
     housing agency employees is threatened; and
       (C) the period of time provided under the applicable law of 
     the jurisdiction, in any other case;
       (4) contain the provisions required under sections 1642 and 
     1643 (relating to limitations on occupancy in federally 
     assisted housing); and
       (5) specify that, with respect to any notice of eviction or 
     termination, notwithstanding any State law, a public housing 
     resident shall be informed of the opportunity, prior to any 
     hearing or trial, to examine any relevant documents, records 
     or regulations directly related to the eviction or 
     termination.

     SEC. 1227. DESIGNATED HOUSING FOR ELDERLY AND DISABLED 
                   FAMILIES.

       (a) Authority To Provide Designated Housing.--
       (1) In general.--Subject only to provisions of this section 
     and notwithstanding any other provision of law, a public 
     housing agency for which the information required under 
     subsection (d) is in effect may provide public housing 
     developments (or portions of developments) designated for 
     occupancy by (A) only elderly families, (B) only disabled 
     families, or (C) elderly and disabled families.
       (2) Priority for occupancy.--In determining priority for 
     admission to public housing developments (or portions of 
     developments) that are designated for occupancy as provided 
     in paragraph (1), the public housing agency may make units in 
     such developments (or portions) available only to the types 
     of families for whom the development is designated.
       (3) Eligibility of near-elderly families.--If a public 
     housing agency determines that there are insufficient numbers 
     of elderly families to fill all the units in a development 
     (or portion of a development) designated under paragraph (1) 
     for occupancy by only elderly families, the agency may 
     provide that near-elderly families may occupy dwelling units 
     in the development (or portion).
       (b) Standards Regarding Evictions.--Except as provided in 
     subtitle C of title XVI, any tenant who is lawfully residing 
     in a dwelling unit in a public housing development may not be 
     evicted or otherwise required to vacate such unit because of 
     the designation of the development (or portion of a 
     development) pursuant to this section or because of any 
     action taken by the Secretary or any public housing agency 
     pursuant to this section.
       (c) Relocation Assistance.--A public housing agency that 
     designates any existing development or building, or portion 
     thereof, for occupancy as provided under subsection (a)(1) 
     shall provide, to each person and family who agrees to be 
     relocated in connection with such designation--
       (1) notice of the designation and an explanation of 
     available relocation benefits, as soon as is practicable for 
     the agency and the person or family;
       (2) access to comparable housing (including appropriate 
     services and design features), which may include choice-based 
     rental housing assistance under title XIII, at a rental rate 
     paid by the tenant that is comparable to that applicable to 
     the unit from which the person or family has vacated; and
       (3) payment of actual, reasonable moving expenses.
       (d) Required Inclusions in Local Housing Management Plan.--
     A public housing agency may designate a development (or 
     portion of a development) for occupancy under subsection 
     (a)(1) only if the agency, as part of the agency's local 
     housing management plan--
       (1) establishes that the designation of the development is 
     necessary--
       (A) to achieve the housing goals for the jurisdiction under 
     the comprehensive housing affordability strategy under 
     section 105 of the Cranston-Gonzalez National Affordable 
     Housing Act; or
       (B) to meet the housing needs of the low-income population 
     of the jurisdiction; and
       (2) includes a description of--
       (A) the development (or portion of a development) to be 
     designated;
       (B) the types of tenants for which the development is to be 
     designated;
       (C) any supportive services to be provided to tenants of 
     the designated development (or portion);
       (D) how the design and related facilities (as such term is 
     defined in section 202(d)(8) of the Housing Act of 1959) of 
     the development accommodate the special environmental needs 
     of the intended occupants; and
       (E) any plans to secure additional resources or housing 
     assistance to provide assistance to families that may have 
     been housed if occupancy in the development were not 
     restricted pursuant to this section.
     For purposes of this subsection, the term ``supportive 
     services'' means services designed to meet the special needs 
     of residents. Notwithstanding section 1107, the Secretary may 
     approve a local housing management plan without approving the 
     portion of the plan covering designation of a development 
     pursuant to this section.
       (e) Effectiveness.--
       (1) Initial 5-year effectiveness.--The information required 
     under subsection (d) shall be in effect for purposes of this 
     section during the 5-year period that begins upon 
     notification under section 1107(a) of the public housing 
     agency that the information complies with the requirements 
     under section 1106 and this section.
       (2) Renewal.--Upon the expiration of the 5-year period 
     under paragraph (1) or any 2-year period under this 
     paragraph, an agency may extend the effectiveness of the 
     designation and information for an additional 2-year period 
     (that begins upon such expiration) by submitting to the 
     Secretary any information needed to update the information. 
     The Secretary may not limit the number of times a public 
     housing agency extends the effectiveness of a designation and 
     information under this paragraph.
       (3) Treatment of existing plans.--Notwithstanding any other 
     provision of this section, a public housing agency shall be 
     considered to have submitted the information required under 
     this section if the agency has submitted to the Secretary an 
     application and allocation plan under section 7 of the United 
     States Housing Act of 1937 (as in effect before the effective 
     date of the repeal under section 1601(b) of this Act) that 
     has not been approved or disapproved before such effective 
     date.
       (4) Transition provision.--Any application and allocation 
     plan approved under section 7 of the United States Housing 
     Act of 1937 (as in effect before the effective date of the 
     repeal under section 1601(b) of this Act) before such 
     effective date shall be considered to be the information 
     required to be submitted under this section and that is in 
     effect for purposes of this section for the 5-year period 
     beginning upon such approval.
       (f) Inapplicability of Uniform Relocation Assistance and 
     Real Property Acquisitions Policy Act of 1970.--No resident 
     of a public housing development shall be considered to be 
     displaced for purposes of the Uniform Relocation Assistance 
     and Real Property Acquisitions Policy Act of 1970 because of 
     the designation of any existing development or building, or 
     portion thereof, for occupancy as provided under subsection 
     (a) of this section.
       (g) Use of Amounts.--Any amounts appropriated pursuant to 
     section 10(b) of the Housing Opportunity Program Extension 
     Act of

[[Page H5609]]

     1996 (Public Law 104-120) may also be used, to the extent or 
     in such amounts as are or have been provided in advance in 
     appropriation Acts, for choice-based rental housing 
     assistance under title XIII for public housing agencies to 
     implement this section.

                         Subtitle C--Management

     SEC. 1231. MANAGEMENT PROCEDURES.

       (a) Sound Management.--A public housing agency that 
     receives grant amounts under this title shall establish and 
     comply with procedures and practices sufficient to ensure 
     that the public housing developments owned or administered by 
     the agency are operated in a sound manner.
       (b) 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 and 
     operating cost center (as determined by the Secretary).
       (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) Management by Other Entities.--Except as otherwise 
     provided under this division, a public housing agency may 
     contract with any other entity to perform any of the 
     management functions for public housing owned or operated by 
     the public housing agency.

     SEC. 1232. HOUSING QUALITY REQUIREMENTS.

       (a) In General.--Each public housing agency that receives 
     grant amounts under this division shall maintain its public 
     housing in a condition that complies--
       (1) in the case of public housing located in a jurisdiction 
     which has in effect laws, regulations, standards, or codes 
     regarding habitability of residential dwellings, with such 
     applicable laws, regulations, standards, or codes; or
       (2) in the case of public housing located in a jurisdiction 
     which does not have in effect laws, regulations, standards, 
     or codes described in paragraph (1), with the housing quality 
     standards established under subsection (b).
       (b) Federal Housing Quality Standards.--The Secretary shall 
     establish housing quality standards under this subsection 
     that ensure that public housing dwelling units are safe, 
     clean, and healthy. Such standards shall include requirements 
     relating to habitability, including maintenance, health and 
     sanitation factors, condition, and construction of dwellings, 
     and shall, to the greatest extent practicable, be consistent 
     with the standards established under section 1328(c). The 
     Secretary shall differentiate between major and minor 
     violations of such standards.
       (c) Determinations.--Each public housing agency providing 
     housing assistance shall identify, in the local housing 
     management plan of the agency, whether the agency is 
     utilizing the standard under paragraph (1) or (2) of 
     subsection (a).
       (d) Annual Inspections.--Each public housing agency that 
     owns or operates public housing shall make an annual 
     inspection of each public housing development to determine 
     whether units in the development are maintained in accordance 
     with the requirements under subsection (a). The agency shall 
     retain the results of such inspections and, upon the request 
     of the Secretary, the Inspector General for the Department of 
     Housing and Urban Development, or any auditor conducting an 
     audit under section 1541, shall make such results available.

     SEC. 1233. EMPLOYMENT OF RESIDENTS.

       Section 3 of the Housing and Urban Development Act of 1968 
     (12 U.S.C. 1701u) is amended--
       (1) in subsection (c)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``public and Indian housing agencies'' and 
     inserting ``public housing agencies and recipients of grants 
     under the Native American Housing Assistance and Self-
     Determination Act of 1996''; and
       (ii) by striking ``development assistance'' and all that 
     follows through the end and inserting ``assistance provided 
     under title XII of the Housing Opportunity and Responsibility 
     Act of 1997 and used for the housing production, operation, 
     or capital needs.''; and
       (B) in subparagraph (B)(ii), by striking ``managed by the 
     public or Indian housing agency'' and inserting ``assisted by 
     the public housing agency or the recipient of a grant under 
     the Native American Housing Assistance and Self-Determination 
     Act of 1996'';
       (2) in subsection (d)(1)--
       (A) in subparagraph (A)--
       (i) by striking ``public and Indian housing agencies'' and 
     inserting ``public housing agencies and recipients of grants 
     under the Native American Housing Assistance and Self-
     Determination Act of 1996''; and
       (ii) by striking ``development assistance'' and all that 
     follows through ``section 14 of that Act'' and inserting 
     ``assistance provided under title XII of the Housing 
     Opportunity and Responsibility Act of 1997 and used for the 
     housing production, operation, or capital needs''; and
       (B) in subparagraph (B)(ii), by striking ``operated by the 
     public or Indian housing agency'' and inserting ``assisted by 
     the public housing agency or the recipient of a grant under 
     the Native American Housing Assistance and Self-Determination 
     Act of 1996'';
       (3) in subsections (c)(1)(A) and (d)(1)(A), by striking 
     ``make their best efforts,'' each place it appears and 
     inserting ``to the maximum extent that is possible and'';
       (4) in subsection (c)(1)(A), by striking ``to give'' and 
     inserting ``give''; and
       (5) in subsection (d)(1)(A), by striking ``to award'' and 
     inserting ``award''.

     SEC. 1234. RESIDENT COUNCILS AND RESIDENT MANAGEMENT 
                   CORPORATIONS.

       (a) Resident Councils.--The residents of a public housing 
     development may establish a resident council for the 
     development for purposes of consideration of issues relating 
     to residents, representation of resident interests, and 
     coordination and consultation with a public housing agency. A 
     resident council shall be an organization or association 
     that--
       (1) is nonprofit in character;
       (2) is representative of the residents of the eligible 
     housing;
       (3) adopts written procedures providing for the election of 
     officers on a regular basis; and
       (4) has a democratically elected governing board, which is 
     elected by the residents of the eligible housing on a regular 
     basis.
       (b) Resident Management Corporations.--
       (1) Establishment.--The residents of a public housing 
     development may establish a resident management corporation 
     for the purpose of assuming the responsibility for the 
     management of the development under section 1235 or 
     purchasing a development.
       (2) Requirements.--A resident management corporation shall 
     be a corporation that--
       (A) is nonprofit in character;
       (B) is organized under the laws of the State in which the 
     development is located;
       (C) has as its sole voting members the residents of the 
     development; and
       (D) is established by the resident council for the 
     development or, if there is not a resident council, by a 
     majority of the households of the development.

     SEC. 1235. MANAGEMENT BY RESIDENT MANAGEMENT CORPORATION.

       (a) Authority.--A public housing agency may enter into a 
     contract under this section with a resident management 
     corporation to provide for the management of public housing 
     developments by the corporation.
       (b) Contract.--A contract under this section for management 
     of public housing developments by a resident management 
     corporation shall establish the respective management rights 
     and responsibilities of the corporation and the public 
     housing agency. The contract shall be consistent with the 
     requirements of this division applicable to public housing 
     development and may include specific terms governing 
     management personnel and compensation, access to public 
     housing records, submission of and adherence to budgets, rent 
     collection procedures, resident income verification, resident 
     eligibility determinations, resident eviction, the 
     acquisition of supplies and materials and such other matters 
     as may be appropriate. The contract shall be treated as a 
     contracting out of services.
       (c) Bonding and Insurance.--Before assuming any management 
     responsibility for a public housing development, the resident 
     management corporation shall provide fidelity bonding and 
     insurance, or equivalent protection. Such bonding and 
     insurance, or its equivalent, shall be adequate to protect 
     the Secretary and the public housing agency against loss, 
     theft, embezzlement, or fraudulent acts on the part of the 
     resident management corporation or its employees.
       (d) Block Grant Assistance and Income.--A contract under 
     this section shall provide for--
       (1) the public housing agency to provide a portion of the 
     block grant assistance under this title to the resident 
     management corporation for purposes of operating the public 
     housing development covered by the contract and performing 
     such other eligible activities with respect to the 
     development as may be provided under the contract;
       (2) the amount of income expected to be derived from the 
     development itself (from sources such as rents and charges);
       (3) the amount of income to be provided to the development 
     from the other sources of income of the public housing agency 
     (such as interest income, administrative fees, and rents); 
     and
       (4) any income generated by a resident management 
     corporation of a public housing development that exceeds the 
     income estimated under the contract shall be used for 
     eligible activities under section 1203(a).
       (e) Calculation of Total Income.--
       (1) Maintenance of support.--Subject to paragraph (2), the 
     amount of assistance provided by a public housing agency to a 
     public housing development managed by a resident management 
     corporation may not be reduced during the 3-year period 
     beginning on the date on which the resident management 
     corporation is first established for the development.
       (2) Reductions and increases in support.--If the total 
     income of a public housing agency is reduced or increased, 
     the income provided by the public housing agency to a public 
     housing development managed by a resident management 
     corporation shall be reduced or increased in proportion to 
     the reduction or increase in the total income of

[[Page H5610]]

     the agency, except that any reduction in block grant amounts 
     under this title to the agency that occurs as a result of 
     fraud, waste, or mismanagement by the agency shall not affect 
     the amount provided to the resident management corporation.

     SEC. 1236. TRANSFER OF MANAGEMENT OF CERTAIN HOUSING TO 
                   INDEPENDENT MANAGER AT REQUEST OF RESIDENTS.

       (a) Authority.--The Secretary may transfer the 
     responsibility and authority for management of specified 
     housing (as such term is defined in subsection (h)) from a 
     public housing agency to an eligible management entity, in 
     accordance with the requirements of this section, if--
       (1) such housing is owned or operated by a public housing 
     agency that is designated as a troubled agency under section 
     1533(a); and
       (2) the Secretary determines that--
       (A) such housing has deferred maintenance, physical 
     deterioration, or obsolescence of major systems and other 
     deficiencies in the physical plant of the project;
       (B) such housing is occupied predominantly by families with 
     children who are in a severe state of distress, characterized 
     by such factors as high rates of unemployment, teenage 
     pregnancy, single-parent households, long-term dependency on 
     public assistance and minimal educational achievement;
       (C) such housing is located in an area such that the 
     housing is subject to recurrent vandalism and criminal 
     activity (including drug-related criminal activity); and
       (D) the residents can demonstrate that the elements of 
     distress for such housing specified in subparagraphs (A) 
     through (C) can be remedied by an entity that has a 
     demonstrated capacity to manage, with reasonable expenses for 
     modernization.
     Such a transfer may be made only as provided in this section, 
     pursuant to the approval by the Secretary of a request for 
     the transfer made by a majority vote of the residents for the 
     specified housing, after consultation with the public housing 
     agency for the specified housing.
       (b) Block Grant Assistance.--Pursuant to a contract under 
     subsection (c), the Secretary shall require the public 
     housing agency for specified housing to provide to the 
     manager for the housing, from any block grant amounts under 
     this title for the agency, fair and reasonable amounts for 
     operating costs for the housing. The amount made available 
     under this subsection to a manager shall be determined by the 
     Secretary based on the share for the specified housing of the 
     total block grant amounts for the public housing agency 
     transferring the housing, taking into consideration the 
     operating and capital improvement needs of the specified 
     housing, the operating and capital improvement needs of the 
     remaining public housing units managed by the public housing 
     agency, and the local housing management plan of such agency.
       (c) Contract Between Secretary and Manager.--
       (1) Requirements.--Pursuant to the approval of a request 
     under this section for transfer of the management of 
     specified housing, the Secretary shall enter into a contract 
     with the eligible management entity.
       (2) Terms.-- A contract under this subsection shall contain 
     provisions establishing the rights and responsibilities of 
     the manager with respect to the specified housing and the 
     Secretary and shall be consistent with the requirements of 
     this division applicable to public housing developments.
       (d) Compliance With Local Housing Management Plan.--A 
     manager of specified housing under this section shall comply 
     with the approved local housing management plan applicable to 
     the housing and shall submit such information to the public 
     housing agency from which management was transferred as may 
     be necessary for such agency to prepare and update its local 
     housing management plan.
       (e) Demolition and Disposition by Manager.--A manager under 
     this section may demolish or dispose of specified housing 
     only if, and in the manner, provided for in the local housing 
     management plan for the agency transferring management of the 
     housing.
       (f) Limitation on PHA Liability.--A public housing agency 
     that is not a manager for specified housing shall not be 
     liable for any act or failure to act by a manager or resident 
     council for the specified housing.
       (g) Treatment of Manager.--To the extent not inconsistent 
     with this section and to the extent the Secretary determines 
     not inconsistent with the purposes of this division, a 
     manager of specified housing under this section shall be 
     considered to be a public housing agency for purposes of this 
     title.
       (h) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Eligible management entity.--The term ``eligible 
     management entity'' means, with respect to any public housing 
     development, any of the following entities:
       (A) Nonprofit organization.--A public or private nonprofit 
     organization, which shall--
       (i) include a resident management corporation or resident 
     management organization and, as determined by the Secretary, 
     a public or private nonprofit organization sponsored by the 
     public housing agency that owns the development; and
       (ii) not include the public housing agency that owns the 
     development.
       (B) For-profit entity.--A for-profit entity that has 
     demonstrated experience in providing low-income housing.
       (C) State or local government.--A State or local 
     government, including an agency or instrumentality thereof.
       (D) Public housing agency.--A public housing agency (other 
     than the public housing agency that owns the development).
     The term does not include a resident council.
       (2) Manager.--The term ``manager'' means any eligible 
     management entity that has entered into a contract under this 
     section with the Secretary for the management of specified 
     housing.
       (3) Nonprofit.--The term ``nonprofit'' means, with respect 
     to an organization, association, corporation, or other 
     entity, that no part of the net earnings of the entity inures 
     to the benefit of any member, founder, contributor, or 
     individual.
       (4) Private nonprofit organization.--The term ``private 
     nonprofit organization'' means any private organization 
     (including a State or locally chartered organization) that--
       (A) is incorporated under State or local law;
       (B) is nonprofit in character;
       (C) complies with standards of financial accountability 
     acceptable to the Secretary; and
       (D) has among its purposes significant activities related 
     to the provision of decent housing that is affordable to low-
     income families.
       (5) Public housing agency.--The term ``public housing 
     agency'' has the meaning given such term in section 1103(a).
       (6) Public nonprofit organization.--The term ``public 
     nonprofit organization'' means any public entity that is 
     nonprofit in character.
       (7) Specified housing.--The term ``specified housing'' 
     means a public housing development or developments, or a 
     portion of a development or developments, for which the 
     transfer of management is requested under this section. The 
     term includes one or more contiguous buildings and an area of 
     contiguous row houses, but in the case of a single building, 
     the building shall be sufficiently separable from the 
     remainder of the development of which it is part to make 
     transfer of the management of the building feasible for 
     purposes of this section.

     SEC. 1237. RESIDENT OPPORTUNITY PROGRAM.

       (a) Purpose.--The purpose of this section is to encourage 
     increased resident management of public housing developments, 
     as a means of improving existing living conditions in public 
     housing developments, by providing increased flexibility for 
     public housing developments that are managed by residents 
     by--
       (1) permitting the retention, and use for certain purposes, 
     of any revenues exceeding operating and project costs; and
       (2) providing funding, from amounts otherwise available, 
     for technical assistance to promote formation and development 
     of resident management entities.
     For purposes of this section, the term ``public housing 
     development'' includes one or more contiguous buildings or an 
     area of contiguous row houses the elected resident councils 
     of which approve the establishment of a resident management 
     corporation and otherwise meet the requirements of this 
     section.
       (b) Program Requirements.--
       (1) Resident council.--As a condition of entering into a 
     resident opportunity program, the elected resident council of 
     a public housing development shall approve the establishment 
     of a resident management corporation that complies with the 
     requirements of section 1234(b)(2). When such approval is 
     made by the elected resident council of a building or row 
     house area, the resident opportunity program shall not 
     interfere with the rights of other families residing in the 
     development or harm the efficient operation of the 
     development. The resident management corporation and the 
     resident council may be the same organization, if the 
     organization complies with the requirements applicable to 
     both the corporation and council.
       (2) Public housing management specialist.--The resident 
     council of a public housing development, in cooperation with 
     the public housing agency, shall select a qualified public 
     housing management specialist to assist in determining the 
     feasibility of, and to help establish, a resident management 
     corporation and to provide training and other duties agreed 
     to in the daily operations of the development.
       (3) Management responsibilities.--A resident management 
     corporation that qualifies under this section, and that 
     supplies insurance and bonding or equivalent protection 
     sufficient to the Secretary and the public housing agency, 
     shall enter into a contract with the agency establishing the 
     respective management rights and responsibilities of the 
     corporation and the agency. The contract shall be treated as 
     a contracting out of services and shall be subject to the 
     requirements under section 1235 for such contracts.
       (4) Annual audit.--The books and records of a resident 
     management corporation operating a public housing development 
     shall be audited annually by a certified public accountant. A 
     written report of each such audit shall be forwarded to the 
     public housing agency and the Secretary.
       (c) Comprehensive Improvement Assistance.--Public housing 
     developments managed by resident management corporations may 
     be provided with modernization assistance from grant amounts 
     under this title for purposes of renovating such 
     developments. If

[[Page H5611]]

     such renovation activities (including the planning and 
     architectural design of the rehabilitation) are administered 
     by a resident management corporation, the public housing 
     agency involved may not retain, for any administrative or 
     other reason, any portion of the assistance provided pursuant 
     to this subsection unless otherwise provided by contract.
       (d) Waiver of Federal Requirements.--
       (1) Waiver of regulatory requirements.--Upon the request of 
     any resident management corporation and public housing 
     agency, and after notice and an opportunity to comment is 
     afforded to the affected residents, the Secretary may waive 
     (for both the resident management corporation and the public 
     housing agency) any requirement established by the Secretary 
     (and not specified in any statute) that the Secretary 
     determines to unnecessarily increase the costs or restrict 
     the income of a public housing development.
       (2) Waiver to permit employment.--Upon the request of any 
     resident management corporation, the Secretary may, subject 
     to applicable collective bargaining agreements, permit 
     residents of such development to volunteer a portion of their 
     labor.
       (3) Exceptions.--The Secretary may not waive under this 
     subsection any requirement with respect to income eligibility 
     for purposes of section 1222, family rental payments under 
     section 1225, tenant or applicant protections, employee 
     organizing rights, or rights of employees under collective 
     bargaining agreements.
       (e) Operating Assistance and Development Income.--
       (1) Calculation of operating subsidy.--The grant amounts 
     received under this title by a public housing agency used for 
     operating fund activities under section 1203(a)(2) that are 
     allocated to a public housing development managed by a 
     resident management corporation shall not be less than per 
     unit monthly amount of such assistance used by the public 
     housing agency in the previous year, as determined on an 
     individual development basis.
       (2) Contract requirements.--Any contract for management of 
     a public housing development entered into by a public housing 
     agency and a resident management corporation shall specify 
     the amount of income expected to be derived from the 
     development itself (from sources such as rents and charges) 
     and the amount of income funds to be provided to the 
     development from the other sources of income of the agency 
     (such as assistance for operating activities under section 
     1203(a)(2), interest income, administrative fees, and rents).
       (f) Resident Management Technical Assistance and 
     Training.--
       (1) Financial assistance.--To the extent budget authority 
     is available under this title, the Secretary shall provide 
     financial assistance to resident management corporations or 
     resident councils that obtain, by contract or otherwise, 
     technical assistance for the development of resident 
     management entities, including the formation of such 
     entities, the development of the management capability of 
     newly formed or existing entities, the identification of the 
     social support needs of residents of public housing 
     developments, and the securing of such support. In addition, 
     the Secretary may provide financial assistance to resident 
     management corporations or resident councils for activities 
     sponsored by resident organizations for economic uplift, such 
     as job training, economic development, security, and other 
     self-sufficiency activities beyond those related to the 
     management of public housing. The Secretary may require 
     resident councils or resident management corporations to 
     utilize public housing agencies or other qualified 
     organizations as contract administrators with respect to 
     financial assistance provided under this paragraph.
       (2) Limitation on assistance.--The financial assistance 
     provided under this subsection with respect to any public 
     housing development may not exceed $100,000.
       (3) Prohibition.--A resident management corporation or 
     resident council may not, before the award to the corporation 
     or council of a grant amount under this subsection, enter 
     into any contract or other agreement with any entity to 
     provide such entity with amounts from the grant for providing 
     technical assistance or carrying out other activities 
     eligible for assistance with amounts under this subsection. 
     Any such agreement entered into in violation of this 
     paragraph shall be void and unenforceable.
       (4) Funding.--Of any amounts made available under section 
     1282(1) for use under the capital fund, the Secretary may use 
     to carry out this subsection $15,000,000 for fiscal year 
     1998.
       (5) Limitation regarding assistance under hope grant 
     program.--The Secretary may not provide financial assistance 
     under this subsection to any resident management corporation 
     or resident council with respect to which assistance for the 
     development or formation of such entity is provided under 
     title III of the United States Housing Act of 1937 (as in 
     effect before the effective date of the repeal under section 
     1601(b) of this Act).
       (6) Technical assistance and clearinghouse.--The Secretary 
     may use up to 10 percent of the amount made available 
     pursuant to paragraph (4)--
       (A) to provide technical assistance, directly or by grant 
     or contract, and
       (B) to receive, collect, process, assemble, and disseminate 
     information,
     in connection with activities under this subsection.
       (g) Assessment and Report by Secretary.--Not later than 3 
     years after the date of the enactment of this Act, the 
     Secretary shall--
       (1) conduct an evaluation and assessment of resident 
     management, and particularly of the effect of resident 
     management on living conditions in public housing; and
       (2) submit to the Congress a report setting forth the 
     findings of the Secretary as a result of the evaluation and 
     assessment and including any recommendations the Secretary 
     determines to be appropriate.
       (h) Applicability.--Any management contract between a 
     public housing agency and a resident management corporation 
     that is entered into after the date of the enactment of the 
     Stewart B. McKinney Homeless Assistance Amendments Act of 
     1988 shall be subject to this section and any regulations 
     issued to carry out this section.

                       Subtitle D--Homeownership

     SEC. 1251. RESIDENT HOMEOWNERSHIP PROGRAMS.

       (a) In General.--A public housing agency may carry out a 
     homeownership program in accordance with this section and the 
     local housing management plan of the agency to make public 
     housing dwelling units, public housing developments, and 
     other housing projects available for purchase by low-income 
     families. An agency may transfer a unit only pursuant to a 
     homeownership program approved by the Secretary. 
     Notwithstanding section 1107, the Secretary may approve a 
     local housing management plan without approving the portion 
     of the plan regarding a homeownership program pursuant to 
     this section. In the case of the portion of a plan regarding 
     the homeownership program that is submitted separately 
     pursuant to the preceding sentence, the Secretary shall 
     approve or disapprove such portion not later than 60 days 
     after the submission of such portion.
       (b) Participating Units.--A program under this section may 
     cover any existing public housing dwelling units or projects, 
     and may include other dwelling units and housing owned, 
     operated, or assisted, or otherwise acquired for use under 
     such program, by the public housing agency.
       (c) Eligible Purchasers.--
       (1) Low-income requirement.--Only low-income families 
     assisted by a public housing agency, other low-income 
     families, and entities formed to facilitate such sales by 
     purchasing units for resale to low-income families shall be 
     eligible to purchase housing under a homeownership program 
     under this section.
       (2) Other requirements.--A public housing agency may 
     establish other requirements or limitations for families to 
     purchase housing under a homeownership program under this 
     section, including requirements or limitations regarding 
     employment or participation in employment counseling or 
     training activities, criminal activity, participation in 
     homeownership counseling programs, evidence of regular 
     income, and other requirements. In the case of purchase by an 
     entity for resale to low-income families, the entity shall 
     sell the units to low-income families within 5 years from the 
     date of its acquisition of the units. The entity shall use 
     any net proceeds from the resale and from managing the units, 
     as determined in accordance with guidelines of the Secretary, 
     for housing purposes, such as funding resident organizations 
     and reserves for capital replacements.
       (d) Financing and Assistance.--A homeownership program 
     under this section may provide financing for acquisition of 
     housing by families purchasing under the program or by the 
     public housing agency for sale under this program in any 
     manner considered appropriate by the agency (including sale 
     to a resident management corporation).
       (e) Downpayment Requirement.--
       (1) In general.--Each family purchasing housing under a 
     homeownership program under this section shall be required to 
     provide from its own resources a downpayment in connection 
     with any loan for acquisition of the housing, in an amount 
     determined by the public housing agency. Except as provided 
     in paragraph (2), the agency shall permit the family to use 
     grant amounts, gifts from relatives, contributions from 
     private sources, and similar amounts as downpayment amounts 
     in such purchase,
       (2) Direct family contribution.--In purchasing housing 
     pursuant to this section, each family shall contribute an 
     amount of the downpayment, from resources of the family other 
     than grants, gifts, contributions, or other similar amounts 
     referred to in paragraph (1), that is not less than 1 percent 
     of the purchase price.
       (f) Ownership Interests.--A homeownership program under 
     this section may provide for sale to the purchasing family of 
     any ownership interest that the public housing agency 
     considers appropriate under the program, including ownership 
     in fee simple, a condominium interest, an interest in a 
     limited dividend cooperative, a shared appreciation interest 
     with a public housing agency providing financing.
       (g) Resale.--
       (1) Authority and limitation.--A homeownership program 
     under this section shall permit the resale of a dwelling unit 
     purchased under the program by an eligible family, but shall 
     provide such limitations on resale as the agency considers 
     appropriate (whether the family purchases directly from the 
     agency or from another entity) for the agency to recapture--

[[Page H5612]]

       (A) from any economic gain derived from any such resale 
     occurring during the 5-year period beginning upon purchase of 
     the dwelling unit by the eligible family, a portion of the 
     amount of any financial assistance provided under the program 
     by the agency to the eligible family; and
       (B) after the expiration of such 5-year period, only such 
     amounts as are equivalent to the assistance provided under 
     this section by the agency to the purchaser.
       (2) Considerations.--The limitations referred to in 
     paragraph (1) may provide for consideration of the aggregate 
     amount of assistance provided under the program to the 
     family, the contribution to equity provided by the purchasing 
     eligible family, the period of time elapsed between purchase 
     under the homeownership program and resale, the reason for 
     resale, any improvements to the property made by the eligible 
     family, any appreciation in the value of the property, and 
     any other factors that the agency considers appropriate.
       (h) Sale of Certain Scattered-Site Housing.--A public 
     housing agency that the Secretary has determined to be a 
     high-performing agency may use the proceeds from the 
     disposition of scattered-site public housing under a 
     homeownership program under this section to purchase 
     replacement scattered-site dwelling units, to the extent such 
     use is provided for in the local housing management plan for 
     the agency approved under section 1107. Any such replacement 
     dwelling units shall be considered public housing for 
     purposes of this division.
       (i) Inapplicability of Disposition Requirements.--The 
     provisions of section 1261 shall not apply to disposition of 
     public housing dwelling units under a homeownership program 
     under this section, except that any dwelling units sold under 
     such a program shall be treated as public housing dwelling 
     units for purposes of subsections (e) and (f) of section 
     1261.

Subtitle E--Disposition, Demolition, and Revitalization of Developments

     SEC. 1261. REQUIREMENTS FOR DEMOLITION AND DISPOSITION OF 
                   DEVELOPMENTS.

       (a) Authority and Flexibility.--A public housing agency may 
     demolish, dispose of, or demolish and dispose of nonviable or 
     nonmarketable public housing developments of the agency in 
     accordance with this section.
       (b) Local Housing Management Plan Requirement.--A public 
     housing agency may take any action to demolish or dispose of 
     a public housing development (or a portion of a development) 
     only if such demolition or disposition complies with the 
     provisions of this section and is in accordance with the 
     local housing management plan for the agency. Notwithstanding 
     section 1107, the Secretary may approve a local housing 
     management plan without approving the portion of the plan 
     covering demolition or disposition pursuant to this section.
       (c) Purpose of Demolition or Disposition.--A public housing 
     agency may demolish or dispose of a public housing 
     development (or portion of a development) only if the agency 
     provides sufficient evidence to the Secretary that--
       (1) the development (or portion thereof) is severely 
     distressed or obsolete;
       (2) the development (or portion thereof) is in a location 
     making it unsuitable for housing purposes;
       (3) the development (or portion thereof) has design or 
     construction deficiencies that make cost-effective 
     rehabilitation infeasible;
       (4) assuming that reasonable rehabilitation and management 
     intervention for the development has been completed and paid 
     for, the anticipated revenue that would be derived from 
     charging market-based rents for units in the development (or 
     portion thereof) would not cover the anticipated operating 
     costs and replacement reserves of the development (or 
     portion) at full occupancy and the development (or portion) 
     would constitute a substantial burden on the resources of the 
     public housing agency;
       (5) retention of the development (or portion thereof) is 
     not in the best interests of the residents of the public 
     housing agency because--
       (A) developmental changes in the area surrounding the 
     development adversely affect the health or safety of the 
     residents or the feasible operation of the development by the 
     public housing agency;
       (B) demolition or disposition will allow the acquisition, 
     development, or rehabilitation of other properties which will 
     be more efficiently or effectively operated as low-income 
     housing; or
       (C) other factors exist that the agency determines are 
     consistent with the best interests of the residents and the 
     agency and not inconsistent with other provisions of this 
     division;
       (6) in the case only of demolition or disposition of a 
     portion of a development, the demolition or disposition will 
     help to ensure the remaining useful life of the remainder of 
     the development; or
       (7) in the case only of property other than dwelling 
     units--
       (A) the property is excess to the needs of a development; 
     or
       (B) the demolition or disposition is incidental to, or does 
     not interfere with, continued operation of a development.
     The evidence required under this subsection shall include, as 
     a condition of demolishing or disposing of a public housing 
     development (or portion of a development) estimated to have a 
     value of $100,000 or more, a statement of the market value of 
     the development (or portion), which has been determined by a 
     party not having any interest in the housing or the public 
     housing agency and pursuant to not less than 2 professional, 
     independent appraisals of the development (or portion).
       (d) Consultation.--A public housing agency may demolish or 
     dispose of a public housing development (or portion of a 
     development) only if the agency notifies and confers 
     regarding the demolition or disposition with--
       (1) the residents of the development (or portion); and
       (2) appropriate local government officials.
       (e) Counseling.--A public housing agency may demolish or 
     dispose of a public housing development (or a portion of a 
     development) only if the agency provides any necessary 
     counseling for families displaced by such action to 
     facilitate relocation.
       (f) Use of Proceeds.--Any net proceeds from the disposition 
     of a public housing development (or portion of a development) 
     shall be used for--
       (1) housing assistance for low-income families that is 
     consistent with the low-income housing needs of the 
     community, through acquisition, development, or 
     rehabilitation of, or homeownership programs for, other low-
     income housing or the provision of choice-based assistance 
     under title XIII for such families;
       (2) supportive services relating to job training or child 
     care for residents of a development or developments; or
       (3) leveraging amounts for securing commercial enterprises, 
     on-site in public housing developments of the public housing 
     agency, appropriate to serve the needs of the residents.
       (g) Relocation.--A public housing agency that demolishes or 
     disposes of a public housing development (or portion of a 
     development thereof) shall ensure that--
       (1) each family that is a resident of the development (or 
     portion) that is demolished or disposed of is relocated to 
     other safe, clean, healthy, and affordable housing, which is, 
     to the maximum extent practicable, housing of the family's 
     choice, including choice-based assistance under title XIII 
     (provided that with respect to choice-based assistance, the 
     preceding requirement shall be fulfilled only upon the 
     relocation of the such family into such housing);
       (2) the public housing agency does not take any action to 
     dispose of any unit until any resident to be displaced is 
     relocated in accordance with paragraph (1); and
       (3) each resident family to be displaced is paid relocation 
     expenses, and the rent to be paid initially by the resident 
     following relocation does not exceed the amount permitted 
     under section 1225(a).
       (h) Right of First Refusal for Resident Organizations and 
     Resident Management Corporations.--
       (1) In general.--A public housing agency may not dispose of 
     a public housing development (or portion of a development) 
     unless the agency has, before such disposition, offered to 
     sell the property, as provided in this subsection, to each 
     resident organization and resident management corporation 
     operating at the development for continued use as low-income 
     housing, and no such organization or corporation purchases 
     the property pursuant to such offer. A resident organization 
     may act, for purposes of this subsection, through an entity 
     formed to facilitate homeownership under subtitle D.
       (2) Timing.--Disposition of a development (or portion 
     thereof) under this section may not take place--
       (A) before the expiration of the period during which any 
     such organization or corporation may notify the agency of 
     interest in purchasing the property, which shall be the 30-
     day period beginning on the date that the agency first 
     provides notice of the proposed disposition of the property 
     to such resident organizations and resident management 
     corporations;
       (B) if an organization or corporation submits notice of 
     interest in accordance with subparagraph (A), before the 
     expiration of the period during which such organization or 
     corporation may obtain a commitment for financing to purchase 
     the property, which shall be the 60-day period beginning upon 
     the submission to the agency of the notice of interest; or
       (C) if, during the period under subparagraph (B), an 
     organization or corporation obtains such financing commitment 
     and makes a bona fide offer to the agency to purchase the 
     property for a price equal to or exceeding the applicable 
     offer price under paragraph (3).
     The agency shall sell the property pursuant to any purchase 
     offer described in subparagraph (C).
       (3) Terms of offer.--An offer by a public housing agency to 
     sell a property in accordance with this subsection shall 
     involve a purchase price that reflects the market value of 
     the property, the reason for the sale, the impact of the sale 
     on the surrounding community, and any other factors that the 
     agency considers appropriate.
       (i) Information for Local Housing Management Plan.--A 
     public housing agency may demolish or dispose of a public 
     housing development (or portion thereof) only if it includes 
     in the applicable local housing management plan information 
     sufficient to describe--
       (1) the housing to be demolished or disposed of;
       (2) the purpose of the demolition or disposition under 
     subsection (c) and why the demolition or disposition complies 
     with the

[[Page H5613]]

     requirements under subsection (c), and includes evidence of 
     the market value of the development (or portion) required 
     under subsection (c);
       (3) how the consultations required under subsection (d) 
     will be made;
       (4) how the net proceeds of the disposition will be used in 
     accordance with subsection (f);
       (5) how the agency will relocate residents, if necessary, 
     as required under subsection (g); and
       (6) that the agency has offered the property for 
     acquisition by resident organizations and resident management 
     corporations in accordance with subsection (h).
       (j) Site and Neighborhood Standards Exemption.--
     Notwithstanding any other provision of law, a public housing 
     agency may provide for development of public housing dwelling 
     units on the same site or in the same neighborhood as any 
     dwelling units demolished, pursuant to a plan under this 
     section, but only if such development provides for 
     significantly fewer dwelling units.
       (k) Treatment of Replacement Units.--
       (1) Provision of other housing assistance.--In connection 
     with any demolition or disposition of public housing under 
     this section, a public housing agency may provide for other 
     housing assistance for low-income families that is consistent 
     with the low-income housing needs of the community, 
     including--
       (A) the provision of choice-based assistance under title 
     XIII; and
       (B) the development, acquisition, or lease by the agency of 
     dwelling units, which dwelling units shall--
       (i) be eligible to receive assistance with grant amounts 
     provided under this title; and
       (ii) be made available for occupancy, operated, and managed 
     in the manner required for public housing, and subject to the 
     other requirements applicable to public housing dwelling 
     units.
       (2) Treatment of individuals.--For purposes of this 
     subsection, an individual between the ages of 18 and 21, 
     inclusive, shall, at the discretion of the individual, be 
     considered a family.
       (l) Use of New Dwelling Units.--A public housing agency 
     demolishing or disposing of a public housing development (or 
     portion thereof) under this section shall seek, where 
     practical, to ensure that, if housing units are provided on 
     any property that was previously used for the public housing 
     demolished or disposed of, not less than 25 percent of such 
     dwelling units shall be dwelling units reserved for occupancy 
     during the remaining useful life of the housing by low-income 
     families.
       (m) Permissible Relocation Without Plan.--If a public 
     housing agency determines that because of an emergency 
     situation public housing dwelling units are severely 
     uninhabitable, the public housing agency may relocate 
     residents of such dwelling units before the submission of a 
     local housing management plan providing for demolition or 
     disposition of such units.
       (n) Consolidation of Occupancy Within or Among Buildings.--
     Nothing in this section may be construed to prevent a public 
     housing agency from consolidating occupancy within or among 
     buildings of a public housing development, or among 
     developments, or with other housing for the purpose of 
     improving living conditions of, or providing more efficient 
     services to, residents.
       (o) De Minimis Exception to Demolition Requirements.--
     Notwithstanding any other provision of this section, in any 
     5-year period a public housing agency may demolish not more 
     than the lesser of 5 dwelling units or 5 percent of the total 
     dwelling units owned and operated by the public housing 
     agency, without providing for such demolition in a local 
     housing management plan, but only if the space occupied by 
     the demolished unit is used for meeting the service or other 
     needs of public housing residents or the demolished unit was 
     beyond repair.

     SEC. 1262. DEMOLITION, SITE REVITALIZATION, REPLACEMENT 
                   HOUSING, AND CHOICE-BASED ASSISTANCE GRANTS FOR 
                   DEVELOPMENTS.

       (a) Purposes.--The purpose of this section is to provide 
     assistance to public housing agencies for the purposes of--
       (1) reducing the density and improving the living 
     environment for public housing residents of severely 
     distressed public housing developments through the demolition 
     of obsolete public housing developments (or portions 
     thereof);
       (2) revitalizing sites (including remaining public housing 
     dwelling units) on which such public housing developments are 
     located and contributing to the improvement of the 
     surrounding neighborhood;
       (3) providing housing that will avoid or decrease the 
     concentration of very low-income families; and
       (4) providing choice-based assistance in accordance with 
     title XIII for the purpose of providing replacement housing 
     and assisting residents to be displaced by the demolition.
       (b) Grant Authority.--The Secretary may make grants 
     available to public housing agencies as provided in this 
     section.
       (c) Contribution Requirement.--The Secretary may not make 
     any grant under this section to any applicant unless the 
     applicant certifies to the Secretary that the applicant will 
     supplement the amount of assistance provided under this 
     section with an amount of funds from sources other than this 
     section equal to not less than 5 percent of the amount 
     provided under this section, including amounts from other 
     Federal sources, any State or local government sources, any 
     private contributions, and the value of any in-kind services 
     or administrative costs provided.
       (d) Eligible Activities.--Grants under this section may be 
     used for activities to carry out revitalization programs for 
     severely distressed public housing, including--
       (1) architectural and engineering work, including the 
     redesign, reconstruction, or redevelopment of a severely 
     distressed public housing development, including the site on 
     which the development is located;
       (2) the demolition, sale, or lease of the site, in whole or 
     in part;
       (3) covering the administrative costs of the applicant, 
     which may not exceed such portion of the assistance provided 
     under this section as the Secretary may prescribe;
       (4) payment of reasonable legal fees;
       (5) providing reasonable moving expenses for residents 
     displaced as a result of the revitalization of the 
     development;
       (6) economic development activities that promote the 
     economic self-sufficiency of residents under the 
     revitalization program;
       (7) necessary management improvements;
       (8) leveraging other resources, including additional 
     housing resources, retail supportive services, jobs, and 
     other economic development uses on or near the development 
     that will benefit future residents of the site;
       (9) replacement housing and housing assistance under title 
     XIII;
       (10) transitional security activities; and
       (11) necessary supportive services, except that not more 
     than 10 percent of the amount of any grant may be used for 
     activities under this paragraph.
       (e) Application and Selection.--
       (1) Application.--An application for a grant under this 
     section shall contain such information and shall be submitted 
     at such time and in accordance with such procedures, as the 
     Secretary shall prescribe.
       (2) Selection criteria.--The Secretary shall establish 
     selection criteria for the award of grants under this 
     section, which shall include--
       (A) the relationship of the grant to the local housing 
     management plan for the public housing agency and how the 
     grant will result in a revitalized site that will enhance the 
     neighborhood in which the development is located;
       (B) the capability and record of the applicant public 
     housing agency, or any alternative management agency for the 
     agency, for managing large-scale redevelopment or 
     modernization projects, meeting construction timetables, and 
     obligating amounts in a timely manner;
       (C) the extent to which the public housing agency could 
     undertake such activities without a grant under this section;
       (D) the extent of involvement of residents, State and local 
     governments, private service providers, financing entities, 
     and developers, in the development of a revitalization 
     program for the development; and
       (E) the amount of funds and other resources to be leveraged 
     by the grant.
     The Secretary shall give preference in selection to any 
     public housing agency that has been awarded a planning grant 
     under section 24(c) of the United States Housing Act of 1937 
     (as in effect before the effective date of the repeal under 
     section 1601(b) of this Act).
       (f) Cost Limits.--Subject to the provisions of this 
     section, the Secretary--
       (1) shall establish cost limits on eligible activities 
     under this section sufficient to provide for effective 
     revitalization programs; and
       (2) may establish other cost limits on eligible activities 
     under this section.
       (g) Demolition and Replacement.--Any severely distressed 
     public housing demolished or disposed of pursuant to a 
     revitalization plan and any public housing produced in lieu 
     of such severely distressed housing, shall be subject to the 
     provisions of section 1261.
       (h) Administration by Other Entities.--The Secretary may 
     require a grantee under this section to make arrangements 
     satisfactory to the Secretary for use of an entity other than 
     the public housing agency to carry out activities assisted 
     under the revitalization plan, if the Secretary determines 
     that such action will help to effectuate the purposes of this 
     section.
       (i) Withdrawal of Funding.--If a grantee under this section 
     does not proceed expeditiously, in the determination of the 
     Secretary, the Secretary shall withdraw any grant amounts 
     under this section that have not been obligated by the public 
     housing agency. The Secretary shall redistribute any 
     withdrawn amounts to one or more public housing agencies 
     eligible for assistance under this section or to one or more 
     other entities capable of proceeding expeditiously in the 
     same locality in carrying out the revitalization plan of the 
     original grantee.
       (j) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       (1) Applicant.--The term ``applicant'' means--
       (A) any public housing agency that is not designated as 
     troubled pursuant to section 1533(a);
       (B) any public housing agency or private housing management 
     agent selected, or receiver appointed pursuant, to section 
     1545; and
       (C) any public housing agency that is designated as 
     troubled pursuant to section 1533(a) that--
       (i) is so designated principally for reasons that will not 
     affect the capacity of the agency to carry out a 
     revitalization program;
       (ii) is making substantial progress toward eliminating the 
     deficiencies of the agency; or

[[Page H5614]]

       (iii) is otherwise determined by the Secretary to be 
     capable of carrying out a revitalization program.
       (2) Private nonprofit corporation.--The term ``private 
     nonprofit organization'' means any private nonprofit 
     organization (including a State or locally chartered 
     nonprofit organization) that--
       (A) is incorporated under State or local law;
       (B) has no part of its net earnings inuring to the benefit 
     of any member, founder, contributor, or individual;
       (C) complies with standards of financial accountability 
     acceptable to the Secretary; and
       (D) has among its purposes significant activities related 
     to the provision of decent housing that is affordable to very 
     low-income families.
       (3) Severely distressed public housing.--The term 
     ``severely distressed public housing'' means a public housing 
     development (or building in a development) that--
       (A) requires major redesign, reconstruction or 
     redevelopment, or partial or total demolition, to correct 
     serious deficiencies in the original design (including 
     inappropriately high population density), deferred 
     maintenance, physical deterioration or obsolescence of major 
     systems and other deficiencies in the physical plant of the 
     development;
       (B) is a significant contributing factor to the physical 
     decline of and disinvestment by public and private entities 
     in the surrounding neighborhood;
       (C)(i) is occupied predominantly by families who are very 
     low-income families with children, are unemployed, and 
     dependent on various forms of public assistance; and
       (ii) has high rates of vandalism and criminal activity 
     (including drug-related criminal activity) in comparison to 
     other housing in the area;
       (D) cannot be revitalized through assistance under other 
     programs, such as the public housing block grant program 
     under this title, or the programs under sections 9 and 14 of 
     the United States Housing Act of 1937 (as in effect before 
     the effective date of the repeal under section 1601(b) of 
     this Act), because of cost constraints and inadequacy of 
     available amounts; and
       (E) in the case of individual buildings, is, in the 
     Secretary's determination, sufficiently separable from the 
     remainder of the development of which the building is part to 
     make use of the building feasible for purposes of this 
     section.
       (4) Supportive services.--The term ``supportive services'' 
     includes all activities that will promote upward mobility, 
     self-sufficiency, and improved quality of life for the 
     residents of the public housing development involved, 
     including literacy training, job training, day care, and 
     economic development activities.
       (k) Annual Report.--The Secretary shall submit to the 
     Congress an annual report setting forth--
       (1) the number, type, and cost of public housing units 
     revitalized pursuant to this section;
       (2) the status of developments identified as severely 
     distressed public housing;
       (3) the amount and type of financial assistance provided 
     under and in conjunction with this section; and
       (4) the recommendations of the Secretary for statutory and 
     regulatory improvements to the program established by this 
     section.
       (l) Funding.--
       (1) Authorization of appropriations.--There are authorized 
     to be appropriated for grants under this section $500,000,000 
     for each of fiscal years 1998, 1999, and 2000.
       (2) Technical assistance.--Of the amount appropriated 
     pursuant to paragraph (1) for any fiscal year, the Secretary 
     may use not more than 0.50 percent for technical assistance. 
     Such assistance may be provided directly or indirectly by 
     grants, contracts, or cooperative agreements, and shall 
     include training, and the cost of necessary travel for 
     participants in such training, by or to officials of the 
     Department of Housing and Urban Development, of public 
     housing agencies, and of residents.
       (m) Sunset.--No assistance may be provided under this 
     section after September 30, 2000.
       (n) Treatment of Previous Selections.--A public housing 
     agency that has been selected to receive amounts under the 
     notice of funding availability for fiscal year 1996 amounts 
     for the HOPE VI program (provided under the heading ''public 
     housing demolition, site revitalization, and replacement 
     housing grants'' in title II of the Departments of Veterans 
     Affairs and Housing and Urban Development, and Independent 
     Agencies Appropriations Act, 1996 (42 U.S.C. 1437l note) 
     (enacted as section 101(e) of Omnibus Consolidated 
     Rescissions and Appropriations Act of 1996 (Public Law 104-
     134; 110 Stat. 1321-269)) may apply to the Secretary of 
     Housing and Urban Development for a waiver of the total 
     development cost rehabilitation requirement otherwise 
     applicable under such program, and the Secretary may waive 
     such requirement, but only (1) to the extent that a 
     designated site for use of such amounts does not have 
     dwelling units that are considered to be obsolete under 
     Department of Housing and Urban Development regulations in 
     effect upon the date of the enactment of this Act, and (2) if 
     the Secretary determines that the public housing agency will 
     continue to comply with the purposes of the program 
     notwithstanding such waiver.

     SEC. 1263. VOLUNTARY VOUCHER SYSTEM FOR PUBLIC HOUSING.

       (a) In General.--A public housing agency may convert any 
     public housing development (or portion thereof) owned and 
     operated by the agency to a system of choice-based rental 
     housing assistance under title XIII, in accordance with this 
     section.
       (b) Assessment and Plan Requirement.--In converting under 
     this section to a choice-based rental housing assistance 
     system, the public housing agency shall develop a conversion 
     assessment and plan under this subsection, in consultation 
     with the appropriate public officials and with significant 
     participation by the residents of the development (or portion 
     thereof), which assessment and plan shall--
       (1) be consistent with and part of the local housing 
     management plan for the agency;
       (2) describe the conversion and future use or disposition 
     of the public housing development, including an impact 
     analysis on the affected community;
       (3) include 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 choice-
     based rental housing assistance under title XIII 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 development proposed 
     for conversion for the remaining useful life of the 
     development;
       (4) identify the actions, if any, that the public housing 
     agency will take with regard to converting any public housing 
     development or developments (or portions thereof) of the 
     agency to a system of choice-based rental housing assistance 
     under title XIII;
       (5) require the public housing agency to--
       (A) notify the families residing in the public housing 
     development subject to the conversion, in accordance with any 
     guidelines issued by the Secretary governing such 
     notifications, that--
       (i) the development will be removed from the inventory of 
     the public housing agency; and
       (ii) the families displaced by such action will receive 
     choice-based housing assistance;
       (B) provide any necessary counseling for families displaced 
     by such action to facilitate relocation; and
       (C) provide any reasonable relocation expenses for families 
     displaced by such action; and
       (6) ensure that each family that is a resident of the 
     development is relocated to other safe, clean, and healthy 
     affordable housing, which is, to the maximum extent 
     practicable, housing of the family's choice, including 
     choice-based assistance under title XIII (provided that with 
     respect to choice-based assistance, the preceding requirement 
     shall be fulfilled only upon the relocation of such family 
     into such housing).
       (c) Streamlined Assessment and Plan.--At the discretion of 
     the Secretary or at the request of a public housing agency, 
     the Secretary may waive any or all of the requirements of 
     subsection (b) or otherwise require a streamlined assessment 
     with respect to any public housing development or class of 
     public housing developments.
       (d) Implementation of Conversion Plan.--
       (1) In general.--A public housing agency may implement a 
     conversion plan only if the conversion assessment under this 
     section demonstrates that the conversion--
       (A) will not be more expensive than continuing to operate 
     the public housing development (or portion thereof) as public 
     housing; and
       (B) will principally benefit the residents of the public 
     housing development (or portion thereof) to be converted, the 
     public housing agency, and the community.
       (2) Disapproval.--The Secretary shall disapprove a 
     conversion plan only if the plan is plainly inconsistent with 
     the conversion assessment under subsection (b) or there is 
     reliable information and data available to the Secretary that 
     contradicts that conversion assessment.
       (e) Other Requirements.--To the extent approved by the 
     Secretary, the funds used by the public housing agency to 
     provide choice-based rental housing assistance under title 
     XIII shall be added to the housing assistance payment 
     contract administered by the public housing agency or any 
     entity administering the contract on behalf of the public 
     housing agency.
       (f) Savings Provision.--This section does not affect any 
     contract or other agreement entered into under section 22 of 
     the United States Housing Act of 1937 (as such section 
     existed before the effective date of the repeal under section 
     1601(b) of this Act).

                Subtitle F--Mixed-Finance Public Housing

     SEC. 1271. AUTHORITY.

       Notwithstanding sections 1203 and 1262, the Secretary may, 
     upon such terms and conditions as the Secretary may 
     prescribe, authorize a public housing agency to provide for 
     the use of grant amounts allocated and provided from the 
     capital fund or from a grant under section 1262, to produce 
     mixed- finance housing developments, or replace or revitalize 
     existing public housing dwelling units with mixed-finance 
     housing developments, but only if the agency submits to the 
     Secretary a plan for such housing that is approved pursuant 
     to section 1273 by the Secretary.

     SEC. 1272. MIXED-FINANCE HOUSING DEVELOPMENTS.

       (a) In General.--For purposes of this subtitle, the term 
     ``mixed-finance housing''

[[Page H5615]]

     means low-income housing or mixed-income housing (as 
     described in section 1221(c)(2)) for which the financing for 
     production or revitalization is provided, in part, from 
     entities other than the public housing agency.
       (b) Production.--A mixed-finance housing development shall 
     be produced or revitalized, and owned--
       (1) by a public housing agency or by an entity affiliated 
     with a public housing agency;
       (2) by a partnership, a limited liability company, or other 
     entity in which the public housing agency (or an entity 
     affiliated with a public housing agency) is a general 
     partner, is a managing member, or otherwise participates in 
     the activities of the entity;
       (3) by any entity that grants to the public housing agency 
     the option to purchase the public housing project during the 
     20-year period beginning on the date of initial occupancy of 
     the public housing project in accordance with section 
     42(l)(7) of the Internal Revenue Code of 1986; or
       (4) in accordance with such other terms and conditions as 
     the Secretary may prescribe by regulation.
     This subsection may not be construed to require production or 
     revitalization, and ownership, by the same entity.

     SEC. 1273. MIXED-FINANCE HOUSING PLAN.

       The Secretary may approve a plan for production or 
     revitalization of mixed-finance housing under this subtitle 
     only if the Secretary determines that--
       (1) the public housing agency has the ability, or has 
     provided for an entity under section 1272(b) that has the 
     ability, to use the amounts provided for use under the plan 
     for such housing, effectively, either directly or through 
     contract management;
       (2) the plan provides permanent financing commitments from 
     a sufficient number of sources other than the public housing 
     agency, which may include banks and other conventional 
     lenders, States, units of general local government, State 
     housing finance agencies, secondary market entities, and 
     other financial institutions;
       (3) the plan provides for use of amounts provided under 
     section 1271 by the public housing agency for financing the 
     mixed-income housing in the form of grants, loans, advances, 
     or other debt or equity investments, including collateral or 
     credit enhancement of bonds issued by the agency or any State 
     or local governmental agency for production or revitalization 
     of the development; and
       (4) the plan complies with any other criteria that the 
     Secretary may establish.

     SEC. 1274. RENT LEVELS FOR HOUSING FINANCED WITH LOW-INCOME 
                   HOUSING TAX CREDIT.

       With respect to any dwelling unit in a mixed-finance 
     housing development that is a low-income dwelling unit for 
     which amounts from a block grant under this title are used 
     and that is assisted pursuant to the low-income housing tax 
     credit under section 42 of the Internal Revenue Code of 1986, 
     the rents charged to the residents of the unit shall be 
     determined in accordance with this title, but shall not in 
     any case exceed the amounts allowable under such section 42.

     SEC. 1275. CARRY-OVER OF ASSISTANCE FOR REPLACED HOUSING.

       In the case of a mixed-finance housing development that is 
     replacement housing for public housing demolished or disposed 
     of, or is the result of the revitalization of existing public 
     housing, the share of assistance received from the capital 
     fund and the operating fund by the public housing agency that 
     owned or operated the housing demolished, disposed of, or 
     revitalized shall not be reduced because of such demolition, 
     disposition, or revitalization after the commencement of such 
     demolition, disposition, or revitalization, unless--
       (1) upon the expiration of the 18-month period beginning 
     upon the approval of the plan under section 1273 for the 
     mixed-finance housing development, the agency does not have 
     binding commitments for production or revitalization, or a 
     construction contract, for such development;
       (2) upon the expiration of the 4-year period beginning upon 
     the approval of the plan, the mixed-finance housing 
     development is not substantially ready for occupancy and is 
     placed under the block grant contract for the agency under 
     section 1201; or
       (3) the number of dwelling units in the mixed-finance 
     housing development that are made available for occupancy 
     only by low-income families is substantially less than the 
     number of such dwelling units in the public housing 
     demolished, disposed of, or revitalized.
     The Secretary may extend the period under paragraph (1) or 
     (2) for a public housing agency if the Secretary determines 
     that circumstances beyond the control of the agency caused 
     the agency to fail to meet the deadline under such paragraph.

                     Subtitle G--General Provisions

     SEC. 1281. PAYMENT OF NON-FEDERAL SHARE.

       Rental or use-value of buildings or facilities paid for, in 
     whole or in part, from production, modernization, or 
     operation costs financed under this title may be used as the 
     non-Federal share required in connection with activities 
     undertaken under Federal grant-in-aid programs which provide 
     social, educational, employment, and other services to the 
     residents in a project assisted under this title.

     SEC. 1282. AUTHORIZATION OF APPROPRIATIONS FOR BLOCK GRANTS.

       There are authorized to be appropriated for grants under 
     this title, the following amounts:
       (1) Capital fund.--For the allocations from the capital 
     fund for grants, $2,500,000,000 for each of fiscal years 
     1998, 1999, 2000, 2001, and 2002.
       (2) Operating fund.--For the allocations from the operating 
     fund for grants, $2,900,000,000 for each of fiscal years 
     1998, 1999, 2000, 2001, and 2002.

     SEC. 1283. FUNDING FOR OPERATION SAFE HOME.

       Of any amounts made available for fiscal years 1998 and 
     1999 for carrying out the Community Partnerships Against 
     Crime Act of 1997 (as so designated pursuant to section 
     1624(a) of this Act), not more than $20,000,000 shall be 
     available in each such fiscal year, for use under the 
     Operation Safe Home program administered by the Office of the 
     Inspector General of the Department of Housing and Urban 
     Development, for law enforcement efforts to combat violent 
     crime on or near the premises of public and federally 
     assisted housing.

     SEC. 1284. FUNDING FOR RELOCATION OF VICTIMS OF DOMESTIC 
                   VIOLENCE.

       Of any amounts made available for fiscal years 1998, 1999, 
     2000, 2001, and 2002 for choice-based housing assistance 
     under title XIII of this Act, not more than $700,000 shall be 
     available in each such fiscal year for relocating residents 
     of public housing (including providing assistance for costs 
     of relocation and housing assistance under title XIII of this 
     Act) who are residing in public housing, who have been 
     subject to domestic violence, and for whom provision of 
     assistance is likely to reduce or eliminate the threat of 
     subsequent violence to the members of the family. The 
     Secretary shall establish procedures for eligibility and 
     administration of assistance under this section.

 TITLE XIII--CHOICE-BASED RENTAL HOUSING AND HOMEOWNERSHIP ASSISTANCE 
                        FOR LOW-INCOME FAMILIES

                         Subtitle A--Allocation

     SEC. 1301. AUTHORITY TO PROVIDE HOUSING ASSISTANCE AMOUNTS.

       To the extent that amounts to carry out this title are made 
     available, the Secretary may enter into contracts with public 
     housing agencies for each fiscal year to provide housing 
     assistance under this title.

     SEC. 1302. CONTRACTS WITH PHA'S.

       (a) Condition of Assistance.--The Secretary may provide 
     amounts under this title to a public housing agency for a 
     fiscal year only if the Secretary has entered into a contract 
     under this section with the public housing agency, under 
     which the Secretary shall provide such agency with amounts 
     (in the amount of the allocation for the agency determined 
     pursuant to section 1304) for housing assistance under this 
     title for low-income families.
       (b) Use for Housing Assistance.--A contract under this 
     section shall require a public housing agency to use amounts 
     provided under this title to provide housing assistance in 
     any manner authorized under this title.
       (c) Annual Obligation of Authority.--A contract under this 
     title shall provide amounts for housing assistance for 1 
     fiscal year covered by the contract.
       (d) Enforcement of Housing Quality Requirements.--Each 
     contract under this section shall require the public housing 
     agency administering assistance provided under the contract--
       (1) to ensure compliance, under each housing assistance 
     payments contract entered into pursuant to the contract under 
     this section, with the provisions of the housing assistance 
     payments contract included pursuant to section 1351(c)(4); 
     and
       (2) to establish procedures for assisted families to notify 
     the agency of any noncompliance with such provisions.

     SEC. 1303. ELIGIBILITY OF PHA'S FOR ASSISTANCE AMOUNTS.

       The Secretary may provide amounts available for housing 
     assistance under this title pursuant to the formula 
     established under section 1304(a) to a public housing agency 
     only if--
       (1) the agency has submitted a local housing management 
     plan to the Secretary for such fiscal year and applied to the 
     Secretary for such assistance;
       (2) the plan has been determined to comply with the 
     requirements under section 1106 and the Secretary has not 
     notified the agency that the plan fails to comply with such 
     requirements;
       (3) no member of the board of directors or other governing 
     body of the agency, or the executive director, has been 
     convicted of a felony; and
       (4) the agency has not been disqualified for assistance 
     pursuant to title XV.

     SEC. 1304. ALLOCATION OF AMOUNTS.

       (a) Formula Allocation.--
       (1) In general.--When amounts for assistance under this 
     title are first made available for reservation, after 
     reserving amounts in accordance with subsections (b)(3) and 
     (c), the Secretary shall allocate such amounts, only among 
     public housing agencies meeting the requirements under this 
     title to receive such assistance, on the basis of a formula 
     that is established in accordance with paragraph (2) and 
     based upon appropriate criteria to reflect the needs of 
     different States, areas, and communities, using the most 
     recent data available from the Bureau of the Census of the 
     Department of Commerce and the comprehensive housing 
     affordability strategy under section 105 of the Cranston-
     Gonzalez National Affordable Housing Act (or any

[[Page H5616]]

     consolidated plan incorporating such strategy) for the 
     applicable jurisdiction. The Secretary may establish a 
     minimum allocation amount, in which case only the public 
     housing agencies that, pursuant to the formula, are provided 
     an amount equal to or greater than the minimum allocation 
     amount, shall receive an allocation.
       (2) Regulations.--The formula under this subsection shall 
     be established by regulation issued by the Secretary. 
     Notwithstanding sections 563(a) and 565(a) of title 5, United 
     States Code, any proposed regulation containing such formula 
     shall be issued pursuant to a negotiated rulemaking procedure 
     under subchapter III of chapter 5 of such title and the 
     Secretary shall establish a negotiated rulemaking committee 
     for development of any such proposed regulations.
       (b) Allocation Considerations.--
       (1) Limitation on reallocation for another state.--Any 
     amounts allocated for a State or areas or communities within 
     a State that are not likely to be used within the fiscal year 
     for which the amounts are provided shall not be reallocated 
     for use in another State, unless the Secretary determines 
     that other areas or communities within the same State (that 
     are eligible for amounts under this title) cannot use the 
     amounts within the same fiscal year.
       (2) Effect of receipt of tenant-based assistance for 
     disabled families.--The Secretary may not consider the 
     receipt by a public housing agency of assistance under 
     section 811(b)(1) of the Cranston-Gonzalez National 
     Affordable Housing Act, or the amount received, in approving 
     amounts under this title for the agency or in determining the 
     amount of such assistance to be provided to the agency.
       (3) Exemption from formula allocation.--The formula 
     allocation requirements of subsection (a) shall not apply to 
     any assistance under this title that is approved in 
     appropriation Acts for uses that the Secretary determines are 
     incapable of geographic allocation, including amendments of 
     existing housing assistance payments contracts, renewal of 
     such contracts, assistance to families that would otherwise 
     lose assistance due to the decision of the project owner to 
     prepay the project mortgage or not to renew the housing 
     assistance payments contract, assistance to prevent 
     displacement from public or assisted housing or to provide 
     replacement housing in connection with the demolition or 
     disposition of public housing, assistance for relocation from 
     public housing, assistance in connection with protection of 
     crime witnesses, assistance for conversion from leased 
     housing contracts under section 23 of the United States 
     Housing Act of 1937 (as in effect before the enactment of the 
     Housing and Community Development Act of 1974), and 
     assistance in support of the property disposition and 
     portfolio management functions of the Secretary.
       (c) Recapture of Amounts.--
       (1) Authority.--In each fiscal year, from any budget 
     authority made available for assistance under this title or 
     section 8 of the United States Housing Act of 1937 (as in 
     effect before the effective date of the repeal under section 
     1601(b) of this Act) that is obligated to a public housing 
     agency but remains unobligated by the agency upon the 
     expiration of the 8-month period beginning upon the initial 
     availability of such amounts for obligation by the agency, 
     the Secretary may deobligate an amount, as determined by the 
     Secretary, not exceeding 50 percent of such unobligated 
     amount.
       (2) Use.--The Secretary may reallocate and transfer any 
     amounts deobligated under paragraph (1) only to public 
     housing agencies in areas that the Secretary determines have 
     received less funding than other areas, based on the relative 
     needs of all areas.

     SEC. 1305. ADMINISTRATIVE FEES.

       (a) Fee for Ongoing Costs of Administration.--
       (1) In general.--The Secretary shall establish fees for the 
     costs of administering the choice-based housing assistance 
     program under this title.
       (2) Fiscal year 1998.--
       (A) Calculation.--For fiscal year 1998, the fee for each 
     month for which a dwelling unit is covered by a contract for 
     assistance under this title shall be--
       (i) in the case of a public housing agency that, on an 
     annual basis, is administering a program for not more than 
     600 dwelling units, 7.65 percent of the base amount; and
       (ii) in the case of an agency that, on an annual basis, is 
     administering a program for more than 600 dwelling units--

       (I) for the first 600 units, 7.65 percent of the base 
     amount; and
       (II) for any additional dwelling units under the program, 
     7.0 percent of the base amount.

       (B) Base amount.--For purposes of this paragraph, the base 
     amount shall be the higher of--
       (i) the fair market rental established under section 8(c) 
     of the United States Housing Act of 1937 (as in effect 
     immediately before the effective date of the repeal under 
     section 1601(b) of this Act) for fiscal year 1993 for a 2-
     bedroom existing rental dwelling unit in the market area of 
     the agency, and
       (ii) the amount that is the lesser of (I) such fair market 
     rental for fiscal year 1994 or (II) 103.5 percent of the 
     amount determined under clause (i),
     adjusted based on changes in wage data or other objectively 
     measurable data that reflect the costs of administering the 
     program, as determined by the Secretary. The Secretary may 
     require that the base amount be not less than a minimum 
     amount and not more than a maximum amount.
       (3) Subsequent fiscal years.--For subsequent fiscal years, 
     the Secretary shall publish a notice in the Federal Register, 
     for each geographic area, establishing the amount of the fee 
     that would apply for public housing agencies administering 
     the program, based on changes in wage data or other 
     objectively measurable data that reflect the costs of 
     administering the program, as determined by the Secretary.
       (4) Increase.--The Secretary may increase the fee if 
     necessary to reflect the higher costs of administering small 
     programs and programs operating over large geographic areas.
       (b) Fee for Preliminary Expenses.--The Secretary shall also 
     establish reasonable fees (as determined by the Secretary) 
     for--
       (1) the costs of preliminary expenses, in the amount of 
     $500, for a public housing agency, but only in the first year 
     that the agency administers a choice-based housing assistance 
     program under this title, and only if, immediately before the 
     effective date of this division, the agency was not 
     administering a tenant-based rental assistance program under 
     the United States Housing Act of 1937 (as in effect 
     immediately before such effective date), in connection with 
     its initial increment of assistance received;
       (2) the costs incurred in assisting families who experience 
     difficulty (as determined by the Secretary) in obtaining 
     appropriate housing under the programs; and
       (3) extraordinary costs approved by the Secretary.
       (c) Transfer of Fees in Cases of Concurrent Geographical 
     Jurisdiction.--In each fiscal year, if any public housing 
     agency provides tenant-based rental assistance under section 
     8 of the United States Housing Act of 1937 or housing 
     assistance under this title on behalf of a family who uses 
     such assistance for a dwelling unit that is located within 
     the jurisdiction of such agency but is also within the 
     jurisdiction of another public housing agency, the Secretary 
     shall take such steps as may be necessary to ensure that the 
     public housing agency that provides the services for a family 
     receives all or part of the administrative fee under this 
     section (as appropriate).

     SEC. 1306. AUTHORIZATIONS OF APPROPRIATIONS.

       (a) In General.--There is authorized to be appropriated for 
     providing public housing agencies with housing assistance 
     under this title, such sums as may be necessary for each of 
     fiscal years 1998, 1999, 2000, 2001, and 2002 to provide 
     amounts for incremental assistance under this title, for 
     renewal of expiring contracts under section 1302 of this Act 
     and renewal under this title of expiring contracts for 
     tenant-based rental assistance under section 8 of the United 
     States Housing Act of 1937 (as in effect before the effective 
     date of the repeal under section 1601(b) of this Act), and 
     for replacement needs for public housing under title XII.
       (b) Assistance for Disabled Families.--
       (1) Authorization of appropriations.--There is authorized 
     to be appropriated, for choice-based housing assistance under 
     this title to be used in accordance with paragraph (2), 
     $50,000,000 for fiscal year 1998, and such sums as may be 
     necessary for each subsequent fiscal year.
       (2) Use.--The Secretary shall provide amounts made 
     available under paragraph (1) to public housing agencies only 
     for use to provide housing assistance under this title for 
     nonelderly disabled families (including such families 
     relocating pursuant to designation of a public housing 
     development under section 1227 or the establishment of 
     occupancy restrictions in accordance with section 658 of the 
     Housing and Community Development Act of 1992 and other 
     nonelderly disabled families who have applied to the agency 
     for housing assistance under this title).
       (3) Allocation of amounts.--The Secretary shall allocate 
     and provide amounts made available under paragraph (1) to 
     public housing agencies as the Secretary determines 
     appropriate based on the relative levels of need among the 
     authorities for assistance for families described in 
     paragraph (1).
       (c) Assistance for Witness Relocation.--Of the amounts made 
     available for choice-based housing assistance under this 
     title for each fiscal year, the Secretary, in consultation 
     with the Inspector General, shall make available such sums as 
     may be necessary for such housing assistance for the 
     relocation of witnesses in connection with efforts to combat 
     crime in public and assisted housing pursuant to requests 
     from law enforcement and prosecutive agencies.

     SEC. 1307. CONVERSION OF SECTION 8 ASSISTANCE.

       (a) In General.--Any amounts made available to a public 
     housing agency under a contract for annual contributions for 
     assistance under section 8 of the United States Housing Act 
     of 1937 (as in effect before the effective date of the repeal 
     under section 1601(b) of this Act) that have not been 
     obligated for such assistance by such agency before such 
     effective date shall be used to provide assistance under this 
     title, except to the extent the Secretary determines such use 
     is inconsistent with existing commitments.
       (b) Exception.--Subsection (a) shall not apply to any 
     amounts made available under a contract for housing 
     constructed or substantially rehabilitated pursuant to 
     section 8(b)(2) of the United States Housing Act of 1937, as 
     in effect before October 1, 1983.

[[Page H5617]]

     SEC. 1308. RECAPTURE AND REUSE OF ANNUAL CONTRACT PROJECT 
                   RESERVES UNDER CHOICE-BASED HOUSING ASSISTANCE 
                   AND SECTION 8 TENANT-BASED ASSISTANCE PROGRAMS.

       To the extent that the Secretary determines that the amount 
     in the reserve account for annual contributions contracts 
     (for housing assistance under this title or tenant-based 
     assistance under section 8 of the United States Housing Act 
     of 1937) that is under contract with a public housing agency 
     for such assistance is in excess of the amounts needed by the 
     agency, the Secretary shall recapture such excess amount. The 
     Secretary may hold recaptured amounts in reserve until needed 
     to enter into, amend, or renew contracts under this title or 
     to amend or renew contracts under section 8 of such Act for 
     tenant-based assistance with any agency.

   Subtitle B--Choice-Based Housing Assistance for Eligible Families

     SEC. 1321. ELIGIBLE FAMILIES AND PREFERENCES FOR ASSISTANCE.

       (a) Low-Income Requirement.--Housing assistance under this 
     title may be provided only on behalf of a family that--
       (1) at the time that such assistance is initially provided 
     on behalf of the family, is determined by the public housing 
     agency to be a low-income family; or
       (2) qualifies to receive such assistance under any other 
     provision of Federal law.
       (b) Income Targeting.--Of the families initially assisted 
     under this title by a public housing agency in any year, not 
     less than 40 percent shall be families whose incomes do not 
     exceed 30 percent of the area median income, as determined by 
     the Secretary with adjustments for smaller and larger 
     families. The Secretary may establish income ceiling higher 
     or lower than 30 percent of the area median income on the 
     basis of the Secretary's findings that such variations are 
     necessary because of unusually high or low family incomes.
       (c) Reviews of Family Incomes.--
       (1) In general.--Reviews of family incomes for purposes of 
     this title shall be subject to the provisions of section 904 
     of the Stewart B. McKinney Homeless Assistance Amendments Act 
     of 1988 and shall be conducted upon the initial provision of 
     housing assistance for the family and thereafter not less 
     than annually.
       (2) Procedures.--Each public housing agency administering 
     housing assistance under this title shall establish 
     procedures that are appropriate and necessary to ensure that 
     income data provided to the agency and owners by families 
     applying for or receiving housing assistance from the agency 
     is complete and accurate.
       (d) Preferences for Assistance.--
       (1) Authority to establish.--Any public housing agency that 
     receives amounts under this title may establish a system for 
     making housing assistance available on behalf of eligible 
     families that provides preference for such assistance to 
     eligible families having certain characteristics.
       (2) Content.--Each system of preferences established 
     pursuant to this subsection shall be based upon local housing 
     needs and priorities, as determined by the public housing 
     agency using generally accepted data sources, including any 
     information obtained pursuant to an opportunity for public 
     comment as provided under section 1106(e) and under the 
     requirements applicable to the comprehensive housing 
     affordability strategy for the relevant jurisdiction.
       (3) Sense of the congress.--It is the sense of the Congress 
     that, to the greatest extent practicable, public housing 
     agencies involved in the selection of tenants under the 
     provisions of this title should adopt preferences for 
     individuals who are victims of domestic violence.
       (e) Portability of Housing Assistance.--
       (1) National portability.--An eligible family that is 
     selected to receive or is receiving assistance under this 
     title may rent any eligible dwelling unit in any area where a 
     program is being administered under this title. 
     Notwithstanding the preceding sentence, a public housing 
     agency may require that any family not living within the 
     jurisdiction of the public housing agency at the time the 
     family applies for assistance from the agency shall, during 
     the 12-month period beginning on the date of initial receipt 
     of housing assistance made available on behalf of the family 
     from such agency, lease and occupy an eligible dwelling unit 
     located within the jurisdiction served by the agency. The 
     agency for the jurisdiction into which the family moves shall 
     have the responsibility for administering assistance for the 
     family.
       (2) Source of funding for a family that moves.--For a 
     family that has moved into the jurisdiction of a public 
     housing agency and that, at the time of the move, has been 
     selected to receive, or is receiving, assistance provided by 
     another agency, the agency for the jurisdiction into which 
     the family has moved may, in its discretion, cover the cost 
     of assisting the family under its contract with the Secretary 
     or through reimbursement from the other agency under that 
     agency's contract.
       (3) Authority to deny assistance to certain families who 
     move.--A family may not receive housing assistance as 
     provided under this subsection if the family has moved from a 
     dwelling unit in violation of the lease for the dwelling 
     unit.
       (4) Funding allocations.--In providing assistance amounts 
     under this title for public housing agencies for any fiscal 
     year, the Secretary may give consideration to any reduction 
     or increase in the number of resident families under the 
     program of an agency in the preceding fiscal year as a result 
     of this subsection.
       (f) Confidentiality for Victims of Domestic Violence.--A 
     public housing agency shall be subject to the restrictions 
     regarding release of information relating to the identity and 
     new residence of any family receiving housing assistance who 
     was a victim of domestic violence that are applicable to 
     shelters pursuant to the Family Violence Prevention and 
     Services Act. The agency shall work with the United States 
     Postal Service to establish procedures consistent with the 
     confidentiality provisions in the Violence Against Women Act 
     of 1994.

     SEC. 1322. RESIDENT CONTRIBUTION.

       (a) Amount.--
       (1) Monthly rent contribution.--An assisted family shall 
     contribute on a monthly basis for the rental of an assisted 
     dwelling unit an amount that the public housing agency 
     determines is appropriate with respect to the family and the 
     unit, but which--
       (A) shall not be less than the minimum monthly rental 
     contribution determined under subsection (b); and
       (B) shall not exceed the greatest of--
       (i) 30 percent of the monthly adjusted income of the 
     family;
       (ii) 10 percent of the monthly income of the family; and
       (iii) if the family is receiving payments for welfare 
     assistance from a public agency and a part of such payments, 
     adjusted in accordance with the actual housing costs of the 
     family, is specifically designated by such agency to meet the 
     housing costs of the family, the portion of such payments 
     that is so designated.
       (2) Excess rental amount.--In any case in which the monthly 
     rent charged for a dwelling unit pursuant to the housing 
     assistance payments contract exceeds the applicable payment 
     standard (established under section 1353) for the dwelling 
     unit, the assisted family residing in the unit shall 
     contribute (in addition to the amount of the monthly rent 
     contribution otherwise determined under paragraph (1) for 
     such family) such entire excess rental amount.
       (b) Minimum Monthly Rental Contribution.--
       (1) In general.--The public housing agency shall determine 
     the amount of the minimum monthly rental contribution of an 
     assisted family (which rent shall include any amount allowed 
     for utilities), which--
       (A) shall be based upon factors including the adjusted 
     income of the family and any other factors that the agency 
     considers appropriate;
       (B) shall be not less than $25, nor more than $50; and
       (C) may be increased annually by the agency, except that no 
     such annual increase may exceed 10 percent of the amount of 
     the minimum monthly contribution in effect for the preceding 
     year.
       (2) Hardship provisions.--
       (A) In general.--Notwithstanding paragraph (1), a public 
     housing agency shall grant an exemption in whole or in part 
     from payment of the minimum monthly rental contribution 
     established under this paragraph to any assisted family 
     unable to pay such amount because of financial hardship, 
     which shall include situations in which (i) the family has 
     lost eligibility for or is awaiting an eligibility 
     determination for a Federal, State, or local assistance 
     program, including a family that includes a member who is an 
     alien lawfully admitted for permanent residence under the 
     Immigration and Nationality Act who would be entitled to 
     public benefits but for title IV of the Personal 
     Responsibility and Work Opportunity Reconciliation Act of 
     1996; (ii) the family would be evicted as a result of 
     imposition of the minimum rent; (iii) the income of the 
     family has decreased because of changed circumstance, 
     including loss of employment; and (iv) a death in the family 
     has occurred; and other situations as may be determined by 
     the agency.
       (B) Waiting period.--If an assisted family requests a 
     hardship exemption under this paragraph and the public 
     housing agency reasonably determines the hardship to be of a 
     temporary nature, an exemption shall not be granted during 
     the 90-day period beginning upon the making of a request for 
     the exemption. An assisted family may not be evicted during 
     such 90-day period for nonpayment of rent. In such a case, if 
     the assisted family thereafter demonstrates that the 
     financial hardship is of a long-term basis, the agency shall 
     retroactively exempt the family from the applicability of the 
     minimum rent requirement for such 90-day period.
       (c) Treatment of Changes in Rental Contribution.--
       (1) Notification of changes.--A public housing agency shall 
     promptly notify the owner of an assisted dwelling unit of any 
     change in the resident contribution by the assisted family 
     residing in the unit that takes effect immediately or at a 
     later date.
       (2) Collection of retroactive changes.--In the case of any 
     change in the rental contribution of an assisted family that 
     affects rental payments previously made, the public housing 
     agency shall collect any additional amounts required to be 
     paid by the family under such change directly from the family 
     and shall refund any excess rental contribution paid by the 
     family directly to the family.

[[Page H5618]]

       (d) Phase-In of Rent Contribution Increases.--
       (1) In general.--Except as provided in paragraph (2), for 
     any family that is receiving tenant-based rental assistance 
     under section 8 of the United States Housing Act of 1937 upon 
     the initial applicability of the provisions of this title to 
     such family, if the monthly contribution for rental of an 
     assisted dwelling unit to be paid by the family upon such 
     initial applicability is greater than the amount paid by the 
     family under the provisions of the United States Housing Act 
     of 1937 immediately before such applicability, any such 
     resulting increase in rent contribution shall be--
       (A) phased in equally over a period of not less than 3 
     years, if such increase is 30 percent or more of such 
     contribution before initial applicability; and
       (B) limited to not more than 10 percent per year if such 
     increase is more than 10 percent but less than 30 percent of 
     such contribution before initial applicability.
       (2) Exception.--The minimum rent contribution requirement 
     under subsection (b)(1) shall apply to each family described 
     in paragraph (1) of this subsection, notwithstanding such 
     paragraph.

     SEC. 1323. RENTAL INDICATORS.

       (a) In General.--The Secretary shall establish and issue 
     rental indicators under this section periodically, but not 
     less than annually, for existing rental dwelling units that 
     are eligible dwelling units. The Secretary shall establish 
     and issue the rental indicators by housing market area (as 
     the Secretary shall establish) for various sizes and types of 
     dwelling units.
       (b) Amount.--For a market area, the rental indicator 
     established under subsection (a) for a dwelling unit of a 
     particular size and type in the market area shall be a dollar 
     amount that reflects the rental amount for a standard quality 
     rental unit of such size and type in the market area that is 
     an eligible dwelling unit.
       (c) Effective Date.--The Secretary shall cause the proposed 
     rental indicators established under subsection (a) for each 
     market area to be published in the Federal Register with 
     reasonable time for public comment, and such rental 
     indicators shall become effective upon the date of 
     publication in final form in the Federal Register.
       (d) Annual Adjustment.--Each rental indicator in effect 
     under this section shall be adjusted to be effective on 
     October 1 of each year to reflect changes, based on the most 
     recent available data trended so that the indicators will be 
     current for the year to which they apply, in rents for 
     existing rental dwelling units of various sizes and types in 
     the market area suitable for occupancy by families assisted 
     under this title.

     SEC. 1324. LEASE TERMS.

       Rental assistance may be provided for an eligible dwelling 
     unit only if the assisted family and the owner of the 
     dwelling unit enter into a lease for the unit that--
       (1) provides for a single lease term of 12 months and 
     continued tenancy after such term under a periodic tenancy on 
     a month-to-month basis;
       (2) contains terms and conditions specifying that 
     termination of tenancy during the term of a lease shall be 
     subject to the provisions set forth in sections 1642 and 
     1643; and
       (3) is set forth in the standard form, which is used in the 
     local housing market area by the owner and applies generally 
     to any other tenants in the property who are not assisted 
     families, together with any addendum necessary to include the 
     many terms required under this section.
     A lease may include any addenda appropriate to set forth the 
     provisions under this title.

     SEC. 1325. TERMINATION OF TENANCY.

       Each housing assistance payments contract shall provide 
     that the owner shall conduct the termination of tenancy of 
     any tenant of an assisted dwelling unit under the contract in 
     accordance with applicable State or local laws, including 
     providing any notice of termination required under such laws.

     SEC. 1326. ELIGIBLE OWNERS.

       (a) Ownership Entity.--Rental assistance under this title 
     may be provided for any eligible dwelling unit for which the 
     owner is any public agency, private person or entity 
     (including a cooperative), nonprofit organization, agency of 
     the Federal Government, or public housing agency.
       (b) Ineligible Owners.--
       (1) In general.--Notwithstanding subsection (a), a public 
     housing agency--
       (A) may not enter into a housing assistance payments 
     contract (or renew an existing contract) covering a dwelling 
     unit that is owned by an owner who is debarred, suspended, or 
     subject to limited denial of participation under part 24 of 
     title 24, Code of Federal Regulations;
       (B) may prohibit, or authorize the termination or 
     suspension of, payment of housing assistance under a housing 
     assistance payments contract in effect at the time such 
     debarment, suspension, or limited denial of participation 
     takes effect.
     If the public housing agency takes action under subparagraph 
     (B), the agency shall take such actions as may be necessary 
     to protect assisted families who are affected by the action, 
     which may include the provision of additional assistance 
     under this title to such families.
       (2) Prohibition of sale or rental to related parties.--The 
     Secretary shall establish guidelines to prevent housing 
     assistance payments for a dwelling unit that is owned by any 
     spouse, child, or other party who allows an owner described 
     in paragraph (1) to maintain control of the unit.

     SEC. 1327. SELECTION OF DWELLING UNITS.

       (a) Family Choice.--The determination of the dwelling unit 
     in which an assisted family resides and for which housing 
     assistance is provided under this title shall be made solely 
     by the assisted family, subject to the provisions of this 
     title and any applicable law.
       (b) Deed Restrictions.--Housing assistance may not be used 
     in any manner that abrogates any local deed restriction that 
     applies to any housing consisting of 1 to 4 dwelling units. 
     Nothing in this section may be construed to affect the 
     provisions or applicability of the Fair Housing Act.

     SEC. 1328. ELIGIBLE DWELLING UNITS.

       (a) In General.--A dwelling unit shall be an eligible 
     dwelling unit for purposes of this title only if the public 
     housing agency to provide housing assistance for the dwelling 
     unit determines that the dwelling unit--
       (1) is an existing dwelling unit that is not located within 
     a nursing home or the grounds of any penal, reformatory, 
     medical, mental, or similar public or private institution; 
     and
       (2) complies--
       (A) in the case of a dwelling unit located in a 
     jurisdiction which has in effect laws, regulations, 
     standards, or codes regarding habitability of residential 
     dwellings, with such applicable laws, regulations, standards, 
     or codes; or
       (B) in the case of a dwelling unit located in a 
     jurisdiction which does not have in effect laws, regulations, 
     standards, or codes described in subparagraph (A), with the 
     housing quality standards established under subsection (c).
     Each public housing agency providing housing assistance shall 
     identify, in the local housing management plan for the 
     agency, whether the agency is utilizing the standard under 
     subparagraph (A) or (B) of paragraph (2).
       (b) Determinations.--
       (1) In general.--A public housing agency shall make the 
     determinations required under subsection (a) pursuant to an 
     inspection of the dwelling unit conducted before any 
     assistance payment is made for the unit.
       (2) Expeditious inspection.--Inspections of dwelling units 
     under this subsection shall be made before the expiration of 
     the 15-day period beginning upon a request by the resident or 
     landlord to the public housing agency. The performance of the 
     agency in meeting the 15-day inspection deadline shall be 
     taken into account in assessing the performance of the 
     agency.
       (c) Federal Housing Quality Standards.--The Secretary shall 
     establish housing quality standards under this subsection 
     that ensure that assisted dwelling units are safe, clean, and 
     healthy. Such standards shall include requirements relating 
     to habitability, including maintenance, health and sanitation 
     factors, condition, and construction of dwellings, and shall, 
     to the greatest extent practicable, be consistent with the 
     standards established under section 1232(b). The Secretary 
     shall differentiate between major and minor violations of 
     such standards.
       (d) Annual Inspections.--Each public housing agency 
     providing housing assistance shall make an annual inspection 
     of each assisted dwelling unit during the term of the housing 
     assistance payments contracts for the unit to determine 
     whether the unit is maintained in accordance with the 
     requirements under subsection (a)(2). The agency shall retain 
     the records of the inspection for a reasonable time and shall 
     make the records available upon request to the Secretary, the 
     Inspector General for the Department of Housing and Urban 
     Development, and any auditor conducting an audit under 
     section 1541.
       (e) Inspection Guidelines.--The Secretary shall establish 
     procedural guidelines and performance standards to facilitate 
     inspections of dwelling units and conform such inspections 
     with practices utilized in the private housing market. Such 
     guidelines and standards shall take into consideration 
     variations in local laws and practices of public housing 
     agencies and shall provide flexibility to authorities 
     appropriate to facilitate efficient provision of assistance 
     under this title.
       (f) Rule of Construction.--This section may not be 
     construed to prevent the provision of housing assistance in 
     connection with supportive services for elderly or disabled 
     families.

     SEC. 1329. HOMEOWNERSHIP OPTION.

       (a) In General.--A public housing agency providing housing 
     assistance under this title may provide homeownership 
     assistance to assist eligible families to purchase a dwelling 
     unit (including purchase under lease-purchase homeownership 
     plans).
       (b) Requirements.--A public housing agency providing 
     homeownership assistance under this section shall, as a 
     condition of an eligible family receiving such assistance, 
     require the family to--
       (1) demonstrate that the family has sufficient income from 
     employment or other sources (other than public assistance), 
     as determined in accordance with requirements established by 
     the agency; and
       (2) meet any other initial or continuing requirements 
     established by the public housing agency.
       (c) Downpayment Requirement.--
       (1) In general.--A public housing agency may establish 
     minimum downpayment requirements, if appropriate, in 
     connection with loans made for the purchase of dwelling

[[Page H5619]]

     units for which homeownership assistance is provided under 
     this section. If the agency establishes a minimum downpayment 
     requirement, the agency shall permit the family to use grant 
     amounts, gifts from relatives, contributions from private 
     sources, and similar amounts as downpayment amounts in such 
     purchase, subject to the requirements of paragraph (2).
       (2) Direct family contribution.--In purchasing housing 
     pursuant to this section subject to a downpayment 
     requirement, each family shall contribute an amount of the 
     downpayment, from resources of the family other than grants, 
     gifts, contributions, or other similar amounts referred to in 
     paragraph (1), that is not less than 1 percent of the 
     purchase price.
       (d) Ineligibility Under Other Programs.--A family may not 
     receive homeownership assistance pursuant to this section 
     during any period when assistance is being provided for the 
     family under other Federal homeownership assistance programs, 
     as determined by the Secretary, including assistance under 
     the HOME Investment Partnerships Act, the Homeownership and 
     Opportunity Through HOPE Act, title II of the Housing and 
     Community Development Act of 1987, and section 502 of the 
     Housing Act of 1949.

     SEC. 1330. ASSISTANCE FOR RENTAL OF MANUFACTURED HOMES.

       (a) Authority.--Nothing in this title may be construed to 
     prevent a public housing agency from providing housing 
     assistance under this title on behalf of a low-income family 
     for the rental of--
       (1) a manufactured home that is the principal residence of 
     the family and the real property on which the home is 
     located; or
       (2) the real property on which is located a manufactured 
     home, which is owned by the family and is the principal 
     residence of the family.
       (b) Assistance for Certain Families Owning Manufactured 
     Homes.--
       (1) Authority.--Notwithstanding section 1351 or any other 
     provision of this title, a public housing agency that 
     receives amounts under a contract under section 1302 may 
     enter into a housing assistance payment contract to make 
     assistance payments under this title to a family that owns a 
     manufactured home, but only as provided in paragraph (2).
       (2) Limitations.--In the case only of a low-income family 
     that owns a manufactured home, rents the real property on 
     which it is located, and to whom housing assistance under 
     this title has been made available for the rental of such 
     property, the public housing agency making such assistance 
     available shall enter into a contract to make housing 
     assistance payments under this title directly to the family 
     (rather than to the owner of such real property) if--
       (A) the owner of the real property refuses to enter into a 
     contract to receive housing assistance payments pursuant to 
     section 1351(a);
       (B) the family was residing in such manufactured home on 
     such real property at the time such housing assistance was 
     initially made available on behalf of the family;
       (C) the family provides such assurances to the agency, as 
     the Secretary may require, to ensure that amounts from the 
     housing assistance payments are used for rental of the real 
     property; and
       (D) the rental of the real property otherwise complies with 
     the requirements for assistance under this title.
     A contract pursuant to this subsection shall be subject to 
     the provisions of section 1351 and any other provisions 
     applicable to housing assistance payments contracts under 
     this title, except that the Secretary may provide such 
     exceptions as the Secretary considers appropriate to 
     facilitate the provision of assistance under this subsection.

    Subtitle C--Payment of Housing Assistance on Behalf of Assisted 
                                Families

     SEC. 1351. HOUSING ASSISTANCE PAYMENTS CONTRACTS.

       (a) In General.--Each public housing agency that receives 
     amounts under a contract under section 1302 may enter into 
     housing assistance payments contracts with owners of existing 
     dwelling units to make housing assistance payments to such 
     owners in accordance with this title.
       (b) PHA Acting As Owner.--A public housing agency may enter 
     into a housing assistance payments contract to make housing 
     assistance payments under this title to itself (or any agency 
     or instrumentality thereof) as the owner of dwelling units 
     (other than public housing), and the agency shall be subject 
     to the same requirements that are applicable to other owners, 
     except that the determinations under sections 1328(a) and 
     1354(b) shall be made by a competent party not affiliated 
     with the agency, and the agency shall be responsible for any 
     expenses of such determinations.
       (c) Provisions.--Each housing assistance payments contract 
     shall--
       (1) have a term of not more than 12 months;
       (2) require that the assisted dwelling unit may be rented 
     only pursuant to a lease that complies with the requirements 
     of section 1324;
       (3) comply with the requirements of sections 1325, 1642, 
     and 1643 (relating to termination of tenancy);
       (4) require the owner to maintain the dwelling unit in 
     accordance with the applicable standards under section 
     1328(a)(2); and
       (5) provide that the screening and selection of eligible 
     families for assisted dwelling units shall be the function of 
     the owner.

     SEC. 1352. AMOUNT OF MONTHLY ASSISTANCE PAYMENT.

       (a) Units Having Gross Rent Exceeding Payment Standard.--In 
     the case of a dwelling unit bearing a gross rent that exceeds 
     the payment standard established under section 1353 for a 
     dwelling unit of the applicable size and located in the 
     market area in which such assisted dwelling unit is located, 
     the amount of the monthly assistance payment shall be the 
     amount by which such payment standard exceeds the amount of 
     the resident contribution determined in accordance with 
     section 1322(a)(1).
       (b) Shopping Incentive for Units Having Gross Rent Not 
     Exceeding Payment Standard.--In the case of an assisted 
     family renting an eligible dwelling unit bearing a gross rent 
     that does not exceed the payment standard established under 
     section 1353 for a dwelling unit of the applicable size and 
     located in the market area in which such assisted dwelling 
     unit is located, the following requirements shall apply:
       (1) Amount of monthly assistance payment.--The amount of 
     the monthly assistance payment for housing assistance under 
     this title on behalf of the assisted family shall be the 
     amount by which the gross rent for the dwelling unit exceeds 
     the amount of the resident contribution.
       (2) Escrow of shopping incentive savings.--An amount equal 
     to 50 percent of the difference between payment standard and 
     the gross rent for the dwelling unit shall be placed in an 
     interest bearing escrow account on behalf of such family on a 
     monthly basis by the public housing agency. Amounts in the 
     escrow account shall be made available to the assisted family 
     on an annual basis.
       (3) Deficit reduction.--The public housing agency making 
     housing assistance payments on behalf of such assisted family 
     in a fiscal year shall reserve from amounts made available to 
     the agency for assistance payments for such fiscal year an 
     amount equal to the amount described in paragraph (2). At the 
     end of each fiscal year, the Secretary shall recapture any 
     such amounts reserved by public housing agencies and such 
     amounts shall be covered into the General Fund of the 
     Treasury of the United States.
     For purposes of this section, in the case of a family 
     receiving homeownership assistance under section 1329, the 
     term ``gross rent'' shall mean the homeownership costs to the 
     family as determined in accordance with guidelines of the 
     Secretary.

     SEC. 1353. PAYMENT STANDARDS.

       (a) Establishment.--Each public housing agency providing 
     housing assistance under this title shall establish payment 
     standards under this section for various areas, and sizes and 
     types of dwelling units, for use in determining the amount of 
     monthly housing assistance payment to be provided on behalf 
     of assisted families.
       (b) Use of Rental Indicators.--The payment standard for 
     each size and type of housing for each market area shall be 
     an amount that is not less than 80 percent, and not greater 
     than 120 percent, of the rental indicator established under 
     section 1323 for such size and type for such area.
       (c) Review.--If the Secretary determines, at any time, that 
     a significant percentage of the assisted families who are 
     assisted by a public housing agency and are occupying 
     dwelling units of a particular size are paying more than 30 
     percent of their adjusted incomes for rent, the Secretary 
     shall review the payment standard established by the agency 
     for such size dwellings. If, pursuant to the review, the 
     Secretary determines that such payment standard is not 
     appropriate to serve the needs of the low-income population 
     of the jurisdiction served by the agency (taking into 
     consideration rental costs in the area), as identified in the 
     approved community improvement plan of the agency, the 
     Secretary may require the public housing agency to modify the 
     payment standard.

     SEC. 1354. REASONABLE RENTS.

       (a) Establishment.--The rent charged for a dwelling unit 
     for which rental assistance is provided under this title 
     shall be established pursuant to negotiation and agreement 
     between the assisted family and the owner of the dwelling 
     unit.
       (b) Reasonableness.--
       (1) Determination.--A public housing agency providing 
     rental assistance under this title for a dwelling unit shall, 
     before commencing assistance payments for a unit (with 
     respect to initial contract rents and any rent revisions), 
     determine whether the rent charged for the unit exceeds the 
     rents charged for comparable units in the applicable private 
     unassisted market.
       (2) Unreasonable rents.--If the agency determines that the 
     rent charged for a dwelling unit exceeds such comparable 
     rents, the agency shall--
       (A) inform the assisted family renting the unit that such 
     rent exceeds the rents for comparable unassisted units in the 
     market; and
       (B) refuse to provide housing assistance payments for such 
     unit.

     SEC. 1355. PROHIBITION OF ASSISTANCE FOR VACANT RENTAL UNITS.

       If an assisted family vacates a dwelling unit for which 
     rental assistance is provided under a housing assistance 
     payments 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.

[[Page H5620]]

            Subtitle D--General and Miscellaneous Provisions

     SEC. 1371. DEFINITIONS.

       For purposes of this title:
       (1) Assisted dwelling unit.--The term ``assisted dwelling 
     unit'' means a dwelling unit in which an assisted family 
     resides and for which housing assistance payments are made 
     under this title.
       (2) Assisted family.--The term ``assisted family'' means an 
     eligible family on whose behalf housing assistance payments 
     are made under this title or who has been selected and 
     approved for housing assistance.
       (3) Choice-based.--The term ``choice-based'' means, with 
     respect to housing assistance, that the assistance is not 
     attached to a dwelling unit but can be used for any eligible 
     dwelling unit selected by the eligible family.
       (4) Eligible dwelling unit.--The term ``eligible dwelling 
     unit'' means a dwelling unit that complies with the 
     requirements under section 1328 for consideration as an 
     eligible dwelling unit.
       (5) Eligible family.--The term ``eligible family'' means a 
     family that meets the requirements under section 1321(a) for 
     assistance under this title.
       (6) Homeownership assistance.--The term ``homeownership 
     assistance'' means housing assistance provided under section 
     1329 for the ownership of a dwelling unit.
       (7) Housing assistance.--The term ``housing assistance'' 
     means choice-based assistance provided under this title on 
     behalf of low-income families for the rental or ownership of 
     an eligible dwelling unit.
       (8) Housing assistance payments contract.--The term 
     ``housing assistance payments contract'' means a contract 
     under section 1351 between a public housing agency (or the 
     Secretary) and an owner to make housing assistance payments 
     under this title to the owner on behalf of an assisted 
     family.
       (9) Public housing agency.--The terms ``public housing 
     agency'' and ``agency'' have the meaning given such terms in 
     section 1103, except that the terms include--
       (A) a consortia of public housing agencies that the 
     Secretary determines has the capacity and capability to 
     administer a program for housing assistance under this title 
     in an efficient manner;
       (B) any other entity that, upon the effective date of this 
     division, was administering any program for tenant-based 
     rental assistance under section 8 of the United States 
     Housing Act of 1937 (as in effect before the effective date 
     of the repeal under section 1601(b) of this Act), pursuant to 
     a contract with the Secretary or a public housing agency; and
       (C) with respect to any area in which no public housing 
     agency has been organized or where the Secretary determines 
     that a public housing agency is unwilling or unable to 
     implement this title, or is not performing effectively--
       (i) the Secretary or another entity that by contract agrees 
     to receive assistance amounts under this title and enter into 
     housing assistance payments contracts with owners and perform 
     the other functions of public housing agency under this 
     title; or
       (ii) notwithstanding any provision of State or local law, a 
     public housing agency for another area that contracts with 
     the Secretary to administer a program for housing assistance 
     under this title, without regard to any otherwise applicable 
     limitations on its area of operation.
       (10) Owner.--The term ``owner'' means the person or entity 
     having the legal right to lease or sublease dwelling units. 
     Such term includes any principals, general partners, primary 
     shareholders, and other similar participants in any entity 
     owning a multifamily housing project, as well as the entity 
     itself.
       (11) Rent.--The terms ``rent'' and ``rental'' include, with 
     respect to members of a cooperative, the charges under the 
     occupancy agreements between such members and the 
     cooperative.
       (12) Rental assistance.--The term ``rental assistance'' 
     means housing assistance provided under this title for the 
     rental of a dwelling unit.

     SEC. 1372. RENTAL ASSISTANCE FRAUD RECOVERIES.

       (a) Authority To Retain Recovered Amounts.--The Secretary 
     shall permit public housing agencies administering housing 
     assistance under this title to retain, out of amounts 
     obtained by the authorities from tenants that are due as a 
     result of fraud and abuse, an amount (determined in 
     accordance with regulations issued by the Secretary) equal to 
     the greater of--
       (1) 50 percent of the amount actually collected; or
       (2) the actual, reasonable, and necessary expenses related 
     to the collection, including costs of investigation, legal 
     fees, and collection agency fees.
       (b) Use.--Amounts retained by an agency shall be made 
     available for use in support of the affected program or 
     project, in accordance with regulations issued by the 
     Secretary. If the Secretary is the principal party initiating 
     or sustaining an action to recover amounts from families or 
     owners, the provisions of this section shall not apply.
       (c) Recovery.--Amounts may be recovered under this 
     section--
       (1) by an agency through a lawsuit (including settlement of 
     the lawsuit) brought by the agency or through court-ordered 
     restitution pursuant to a criminal proceeding resulting from 
     an agency's investigation where the agency seeks prosecution 
     of a family or where an agency seeks prosecution of an owner;
       (2) through administrative repayment agreements with a 
     family or owner entered into as a result of an administrative 
     grievance procedure conducted by an impartial decisionmaker 
     in accordance with section 1110; or
       (3) through an agreement between the parties.

     SEC. 1373. STUDY REGARDING GEOGRAPHIC CONCENTRATION OF 
                   ASSISTED FAMILIES.

       (a) In General.--The Secretary shall conduct a study of the 
     geographic areas in the State of Illinois served by the 
     Housing Authority of Cook County and the Chicago Housing 
     Authority and submit to the Congress a report and a specific 
     proposal, which addresses and resolves the issues of--
       (1) the adverse impact on local communities due to 
     geographic concentration of assisted households under the 
     tenant-based housing programs under section 8 of the United 
     States Housing Act of 1937 (as in effect upon the enactment 
     of this Act) and under this title; and
       (2) facilitating the deconcentration of such assisted 
     households by providing broader housing choices to such 
     households.
     The study shall be completed, and the report shall be 
     submitted, not later than 90 days after the date of the 
     enactment of this Act.
       (b) Concentration.--For purposes of this section, the term 
     ``concentration'' means, with respect to any area within a 
     census tract, that--
       (1) 15 percent or more of the households residing within 
     such area have incomes which do not exceed the poverty level; 
     or
       (2) 15 percent or more of the total affordable housing 
     stock located within such area is assisted housing.
       (c) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act.

     SEC. 1374. STUDY REGARDING RENTAL ASSISTANCE.

       The Secretary shall conduct a nationwide study of the 
     choice-based housing assistance program under this title and 
     the tenant-based rental assistance program under section 8 of 
     the United States Housing Act of 1937 (as in effect pursuant 
     to sections 1601(c) and 1602(b)). The study shall, for 
     various localities--
       (1) determine who are the providers of the housing in which 
     families assisted under such programs reside;
       (2) describe and analyze the physical and demographic 
     characteristics of the housing in which such assistance is 
     used, including, for housing in which at least one such 
     assisted family resides, the total number of units in the 
     housing and the number of units in the housing for which such 
     assistance is provided;
       (3) determine the total number of units for which such 
     assistance is provided;
       (4) describe the durations that families remain on waiting 
     lists before being provided such housing assistance; and
       (5) assess the extent and quality of participation of 
     housing owners in such assistance programs in relation to the 
     local housing market, including comparing--
       (A) the quality of the housing assisted to the housing 
     generally available in the same market; and
       (B) the extent to which housing is available to be occupied 
     using such assistance to the extent to which housing is 
     generally available in the same market.
     The Secretary shall submit a report describing the results of 
     the study to the Congress not later than the expiration of 
     the 2-year period beginning on the date of the enactment of 
     this Act.

               TITLE XIV--HOME RULE FLEXIBLE GRANT OPTION

     SEC. 1401. PURPOSE.

       The purpose of this title is to give local governments and 
     municipalities the flexibility to design creative approaches 
     for providing and administering Federal housing assistance 
     based on the particular needs of the communities that--
       (1) give incentives to low-income families with children 
     where the head of household is working, seeking work, or 
     preparing for work by participating in job training, 
     educational programs, or programs that assist people to 
     obtain employment and become economically self-sufficient;
       (2) reduce cost and achieve greater cost-effectiveness in 
     Federal housing assistance expenditures;
       (3) increase housing choices for low-income families; and
       (4) reduce excessive geographic concentration of assisted 
     families.

     SEC. 1402. FLEXIBLE GRANT PROGRAM.

       (a) Authority and Use.--The Secretary shall carry out a 
     program under which a jurisdiction may, upon the application 
     of the jurisdiction and the review and approval of the 
     Secretary, receive, combine, and enter into performance-based 
     contracts for the use of amounts of covered housing 
     assistance in a period consisting of not less than 1 nor more 
     than 5 fiscal years in the manner determined appropriate by 
     the participating jurisdiction--
       (1) to provide housing assistance and services for low-
     income families in a manner that facilitates the transition 
     of such families to work;
       (2) to reduce homelessness;
       (3) to increase homeownership among low-income families; 
     and

[[Page H5621]]

       (4) for other housing purposes for low-income families 
     determined by the participating jurisdiction.
       (b) Inapplicability of Categorical Program Requirements.--
       (1) In general.--Except as provided in paragraph (2) and 
     section 1405, the provisions of this division regarding use 
     of amounts made available under each of the programs included 
     as covered housing assistance and the program requirements 
     applicable to each such program shall not apply to amounts 
     received by a jurisdiction pursuant to this title.
       (2) Applicability of certain laws.--This title may not be 
     construed to exempt assistance under this division from, or 
     make inapplicable any provision of this division or of any 
     other law that requires that assistance under this division 
     be provided in compliance with--
       (A) title VI of the Civil Rights Act of 1964 (42 U.S.C. 
     2000d et seq.);
       (B) the Fair Housing Act (42 U.S.C. 3601 et seq.);
       (C) section 504 of the Rehabilitation Act of 1973 (29 
     U.S.C. 701 et seq.);
       (D) title IX of the Education Amendments of 1972 (86 Stat. 
     373 et seq.);
       (E) the Age Discrimination Act of 1975 (42 U.S.C. 6101 et 
     seq.);
       (F) the Americans with Disabilities Act of 1990; or
       (G) the National Environmental Policy Act of 1969 and other 
     provisions of law that further protection of the environment 
     (as specified in regulations that shall be issued by the 
     Secretary).
       (c) Effect on Program Allocations for Covered Housing 
     Assistance.--The amount of assistance received pursuant to 
     this title by a participating jurisdiction shall not be 
     decreased, because of participation in the program under this 
     title, from the sum of the amounts that otherwise would be 
     made available for or within the participating jurisdiction 
     under the programs included as covered housing assistance.

     SEC. 1403. COVERED HOUSING ASSISTANCE.

       For purposes of this title, the term ``covered housing 
     assistance'' means--
       (1) operating assistance provided under section 9 of the 
     United States Housing Act of 1937 (as in effect before the 
     effective date of the repeal under section 1601(b) of this 
     Act);
       (2) modernization assistance provided under section 14 of 
     such Act;
       (3) assistance provided under section 8 of such Act for the 
     certificate and voucher programs;
       (4) assistance for public housing provided under title XII 
     of this Act; and
       (5) choice-based rental assistance provided under title 
     XIII of this Act.
     Such term does not include any amounts obligated for 
     assistance under existing contracts for project-based 
     assistance under section 8 of the United States Housing Act 
     of 1937 or section 1601(f) of this Act.

     SEC. 1404. PROGRAM REQUIREMENTS.

       (a) Eligible Families.--Each family on behalf of whom 
     assistance is provided for rental or homeownership of a 
     dwelling unit using amounts made available pursuant to this 
     title shall be a low-income family. Each dwelling unit 
     assisted using amounts made available pursuant to this title 
     shall be available for occupancy only by families that are 
     low-income families at the time of their initial occupancy of 
     the unit.
       (b) Compliance With Assistance Plan.--A participating 
     jurisdiction shall provide assistance using amounts received 
     pursuant to this title in the manner set forth in the plan of 
     the jurisdiction approved by the Secretary under section 
     1406(a)(2).
       (c) Rent Policy.--A participating jurisdiction shall ensure 
     that the rental contributions charged to families assisted 
     with amounts received pursuant to this title--
       (1) do not exceed the amount that would be chargeable under 
     title XII to such families were such families residing in 
     public housing assisted under such title; or
       (2) are established, pursuant to approval by the Secretary 
     of a proposed rent structure included in the application 
     under section 1406, at levels that are reasonable and 
     designed to eliminate any disincentives for members of the 
     family to obtain employment and attain economic self-
     sufficiency.
       (d) Housing Quality Standards.--
       (1) Compliance.--A participating jurisdiction shall ensure 
     that housing assisted with amounts received pursuant to this 
     title is maintained in a condition that complies--
       (A) in the case of housing located in a jurisdiction which 
     has in effect laws, regulations, standards, or codes 
     regarding habitability of residential dwellings, with such 
     applicable laws, regulations, standards, or codes; or
       (B) in the case of housing located in a jurisdiction which 
     does not have in effect laws, regulations, standards, or 
     codes described in paragraph (1), with the housing quality 
     standards established under paragraph (2).
       (2) Federal housing quality standards.--The Secretary shall 
     establish housing quality standards under this paragraph that 
     ensure that dwelling units assisted under this title are 
     safe, clean, and healthy. Such standards shall include 
     requirements relating to habitability, including maintenance, 
     health and sanitation factors, condition, and construction of 
     dwellings, and shall, to the greatest extent practicable, be 
     consistent with the standards established under sections 
     1232(b) and 1328(c). The Secretary shall differentiate 
     between major and minor violations of such standards.
       (e) Number of Families Assisted.--A participating 
     jurisdiction shall ensure that, in providing assistance with 
     amounts received pursuant to this title in each fiscal year, 
     not less than substantially the same total number of eligible 
     low-income families are assisted as would have been assisted 
     had the amounts of covered housing assistance not been 
     combined for use under this title.
       (f) Consistency With Welfare Program.--A participating 
     jurisdiction shall ensure that assistance provided with 
     amounts received pursuant to this title is provided in a 
     manner that is consistent with the welfare, public 
     assistance, or other economic self-sufficiency programs 
     operating in the jurisdiction by facilitating the transition 
     of assisted families to work, which may include requiring 
     compliance with the requirements under such welfare, public 
     assistance, or self-sufficiency programs as a condition of 
     receiving housing assistance with amounts provided under this 
     title.
       (g) Treatment of Currently Assisted Families.--
       (1) Continuation of assistance.--A participating 
     jurisdiction shall ensure that each family that was receiving 
     housing assistance or residing in an assisted dwelling unit 
     pursuant to any of the programs included as covered housing 
     assistance immediately before the jurisdiction initially 
     provides assistance pursuant to this title shall be offered 
     assistance or an assisted dwelling unit under the program of 
     the jurisdiction under this title.
       (2) Phase-in of rent contribution increases.--For any 
     family that was receiving housing assistance pursuant to any 
     of the programs included as covered housing assistance 
     immediately before the jurisdiction initially provides 
     assistance pursuant to this title, if the monthly 
     contribution for rental of a dwelling unit assisted under 
     this title to be paid by the family upon initial 
     applicability of this title is greater than the amount paid 
     by the family immediately before such applicability, any such 
     resulting increase in rent contribution shall be--
       (A) phased in equally over a period of not less than 3 
     years, if such increase is 30 percent or more of such 
     contribution before initial applicability; and
       (B) limited to not more than 10 percent per year if such 
     increase is more than 10 percent but less than 30 percent of 
     such contribution before initial applicability.
       (h) Amount of Assistance.--In providing housing assistance 
     using amounts received pursuant to this title, the amount of 
     assistance provided by a participating jurisdiction on behalf 
     of each assisted low-income family shall be sufficient so 
     that if the family used such assistance to rent a dwelling 
     unit having a rent equal to the 40th percentile of rents for 
     standard quality rental units of the same size and type in 
     the same market area, the contribution toward rental paid by 
     the family would be affordable (as such term is defined by 
     the jurisdiction) to the family.
       (i) Portability.--A participating jurisdiction shall ensure 
     that financial assistance for housing provided with amounts 
     received pursuant to this title may be used by a family 
     moving from an assisted dwelling unit located within the 
     jurisdiction to obtain a dwelling unit located outside of the 
     jurisdiction.
       (j) Preferences.--In providing housing assistance using 
     amounts received pursuant to this title, a participating 
     jurisdiction may establish a system for making housing 
     assistance available that provides preference for assistance 
     to families having certain characteristics. A system of 
     preferences established pursuant to this subsection shall be 
     based on local housing needs and priorities, as determined by 
     the jurisdiction using generally accepted data sources.
       (k) Community Work Requirement.--
       (1) Applicability of requirements for pha's.--Except as 
     provided in paragraph (2), participating jurisdictions, 
     families assisted with amounts received pursuant to this 
     title, and dwelling units assisted with amounts received 
     pursuant to this title, shall be subject to the provisions of 
     section 1105 to the same extent that such provisions apply 
     with respect to public housing agencies, families residing in 
     public housing dwelling units and families assisted under 
     title XIII, and public housing dwelling units and dwelling 
     units assisted under title XIII.
       (2) Local community service alternative.--Paragraph (1) 
     shall not apply to a participating jurisdiction that, 
     pursuant to approval by the Secretary of a proposal included 
     in the application under section 1406, is carrying out a 
     local program that is designed to foster community service by 
     families assisted with amounts received pursuant to this 
     title.
       (l) Income Targeting.--In providing housing assistance 
     using amounts received pursuant to this title in any fiscal 
     year, a participating jurisdiction shall ensure that the 
     number of families having incomes that do not exceed 30 
     percent of the area median income that are initially assisted 
     under this title during such fiscal year is not less than 
     substantially the same number of families having such incomes 
     that would be initially assisted in such jurisdiction during 
     such fiscal year under titles XII and XIII pursuant to 
     sections 1222(c) and 1321(b)).

     SEC. 1405. APPLICABILITY OF CERTAIN PROVISIONS.

       (a) Public Housing Demolition and Disposition 
     Requirements.--section 1261 shall continue to apply to public 
     housing notwithstanding any use of the housing under this 
     title.

[[Page H5622]]

       (b) Labor Standards.--section 1112 shall apply to housing 
     assisted with amounts provided pursuant to this title, other 
     than housing assisted solely due to occupancy by families 
     receiving tenant-based assistance.

     SEC. 1406. APPLICATION.

       (a) In General.--The Secretary shall provide for 
     jurisdictions to submit applications to receive and use 
     covered housing assistance amounts as authorized in this 
     title for periods of not less than 1 and not more than 5 
     fiscal years. An application--
       (1) shall be submitted only after the jurisdiction provides 
     for citizen participation through a public hearing and, if 
     appropriate, other means;
       (2) shall include a plan developed by the jurisdiction for 
     the provision of housing assistance with amounts received 
     pursuant to this title that takes into consideration comments 
     from the public hearing and any other public comments on the 
     proposed program, and comments from current and prospective 
     residents who would be affected, and that includes criteria 
     for meeting each of the requirements under section 1404 and 
     this title;
       (3) shall describe how the plan for use of amounts will 
     assist in meeting the goals set forth in section 1401;
       (4) shall propose standards for measuring performance in 
     using assistance provided pursuant to this title based on the 
     performance standards under subsection (b)(2);
       (5) shall propose the length of the period for which the 
     jurisdiction is applying for assistance under this title;
       (6) may include a request assistance for training and 
     technical assistance to assist with design of the program and 
     to participate in a detailed evaluation;
       (7) shall--
       (A) in the case of the application of any jurisdiction 
     within whose boundaries are areas subject to any other unit 
     of general local government, include the signed consent of 
     the appropriate executive official of such unit to the 
     application; and
       (B) in the case of the application of a consortia of units 
     of general local government (as provided under section 
     1409(1)(B)), include the signed consent of the appropriate 
     executive officials of each unit included in the consortia;
       (8) shall include information sufficient, in the 
     determination of the Secretary--
       (A) to demonstrate that the jurisdiction has or will have 
     management and administrative capacity sufficient to carry 
     out the plan under paragraph (2);
       (B) to demonstrate that carrying out the plan will not 
     result in excessive duplication of administrative efforts and 
     costs, particularly with respect to activities performed by 
     public housing agencies operating within the boundaries of 
     the jurisdiction;
       (C) to describe the function and activities to be carried 
     out by such public housing agencies affected by the plan; and
       (D) to demonstrate that the amounts received by the 
     jurisdiction will be maintained separate from other funds 
     available to the jurisdiction and will be used only to carry 
     out the plan; and
       (9) shall include information describing how the 
     jurisdiction will make decisions regarding asset management 
     of housing for low-income families under programs for covered 
     housing assistance or assisted with grant amounts under this 
     title.
     A plan required under paragraph (2) to be included in the 
     application may be contained in a memorandum of agreement or 
     other document executed by a jurisdiction and public housing 
     agency, if such document is submitted together with the 
     application.
       (b) Review, Approval, and Performance Standards.--
       (1) Review.--The Secretary shall review applications for 
     assistance pursuant to this title and shall approve or 
     disapprove such applications within 60 days after their 
     submission. The Secretary shall provide affected public 
     housing agencies an opportunity to review an application 
     submitted under this subsection and to provide written 
     comments on the application, which shall be a period of not 
     less than 30 days ending before the Secretary approves or 
     disapproves the application. If the Secretary determines that 
     the application complies with the requirements of this title, 
     the Secretary shall offer to enter into an agreement with 
     jurisdiction providing for assistance pursuant to this title 
     and incorporating a requirement that the jurisdiction achieve 
     a particular level of performance in each of the areas for 
     which performance standards are established under paragraph 
     (2). If the Secretary determines that an application does not 
     comply with the requirements of this title, the Secretary 
     shall notify the jurisdiction submitting the application of 
     the reasons for such disapproval and actions that may be 
     taken to make the application approvable. Upon approving or 
     disapproving an application under this paragraph, the 
     Secretary shall make such determination publicly available in 
     writing together with a written statement of the reasons for 
     such determination.
       (2) Performance standards.--The Secretary shall establish 
     standards for measuring performance of jurisdictions in the 
     following areas:
       (A) Success in moving dependent low-income families to 
     economic self-sufficiency.
       (B) Success in reducing the numbers of long-term homeless 
     families.
       (C) Decrease in the per-family cost of providing 
     assistance.
       (D) Reduction of excessive geographic concentration of 
     assisted families.
       (E) Any other performance goals that the Secretary may 
     prescribe.
       (3) Approval.--If the Secretary and a jurisdiction that the 
     Secretary determines has submitted an application meeting the 
     requirements of this title enter into an agreement referred 
     to in paragraph (1), the Secretary shall approve the 
     application and provide covered housing assistance for the 
     jurisdiction in the manner authorized under this title. The 
     Secretary may not approve any application for assistance 
     pursuant to this title unless the Secretary and jurisdiction 
     enter into an agreement referred to in paragraph (1). The 
     Secretary shall establish requirements for the approval of 
     applications under this section submitted by public housing 
     agencies designated under section 1533(a) as troubled, which 
     may include additional or different criteria determined by 
     the Secretary to be more appropriate for such agencies.
       (c) Status of PHA's.--Nothing in this section or title may 
     be construed to require any change in the legal status of any 
     public housing agency or in any legal relationship between a 
     jurisdiction and a public housing agency as a condition of 
     participation in the program under this title.

     SEC. 1407. TRAINING.

       The Secretary, in consultation with representatives of 
     public and assisted housing interests, shall provide training 
     and technical assistance relating to providing assistance 
     under this title and conduct detailed evaluations of up to 30 
     jurisdictions for the purpose of identifying replicable 
     program models that are successful at carrying out the 
     purposes of this title.

     SEC. 1408. ACCOUNTABILITY.

       (a) Performance Goals.--The Secretary shall monitor the 
     performance of participating jurisdictions in providing 
     assistance pursuant to this title based on the performance 
     standards contained in the agreements entered into pursuant 
     to section 1406(b)(1).
       (b) Keeping Records.--Each participating jurisdiction shall 
     keep such records as the Secretary may prescribe as 
     reasonably necessary to disclose the amounts and the 
     disposition of amounts provided pursuant to this title, to 
     ensure compliance with the requirements of this title and to 
     measure performance against the performance goals under 
     subsection (a).
       (c) Reports.--Each participating jurisdiction agency shall 
     submit to the Secretary a report, or series of reports, in a 
     form and at a time specified by the Secretary. The reports 
     shall--
       (1) document the use of funds made available under this 
     title;
       (2) provide such information as the Secretary may request 
     to assist the Secretary in assessing the program under this 
     title; and
       (3) describe and analyze the effect of assisted activities 
     in addressing the purposes of this title.
       (d) Access to Documents by Secretary.--The Secretary shall 
     have access for the purpose of audit and examination to any 
     books, documents, papers, and records that are pertinent to 
     assistance in connection with, and the requirements of, this 
     title.
       (e) Access to Documents by Comptroller General.--The 
     Comptroller General of the United States, or any of the duly 
     authorized representatives of the Comptroller General, shall 
     have access for the purpose of audit and examination to any 
     books, documents, papers, and records that are pertinent to 
     assistance in connection with, and the requirements of, this 
     title.

     SEC. 1409. DEFINITIONS.

       For purposes of this title, the following definitions shall 
     apply:
       (1) Jurisdiction.--The term ``jurisdiction'' means--
       (A) a unit of general local government (as such term is 
     defined in section 104 of the Cranston-Gonzalez National 
     Affordable Housing Act) that has boundaries, for purposes of 
     carrying out this title, that--
       (i) wholly contain the area within which a public housing 
     agency is authorized to operate; and
       (ii) do not contain any areas contained within the 
     boundaries of any other participating jurisdiction; and
       (B) a consortia of such units of general local government, 
     organized for purposes of this title.
       (2) Participating jurisdiction.--The term ``participating 
     jurisdiction'' means, with respect to a period for which such 
     approval is made, a jurisdiction that has been approved under 
     section 1406(b)(3) to receive assistance pursuant to this 
     title for such fiscal year.

   TITLE XV--ACCOUNTABILITY AND OVERSIGHT OF PUBLIC HOUSING AGENCIES

Subtitle A--Study of Alternative Methods for Evaluating Public Housing 
                                Agencies

     SEC. 1501. IN GENERAL.

       The Secretary of Housing and Urban Development shall 
     provide under section 1505 for a study to be conducted to 
     determine the effectiveness of various alternative methods of 
     evaluating the performance of public housing agencies and 
     other providers of federally assisted housing.

     SEC. 1502. PURPOSES.

       The purposes of the study under this subtitle shall be--
       (1) to identify and examine various methods of evaluating 
     and improving the performance of public housing agencies in 
     administering public housing and tenant-based rental 
     assistance programs and of other providers of federally 
     assisted housing, which

[[Page H5623]]

     are alternatives to oversight by the Department of Housing 
     and Urban Development; and
       (2) to identify specific monitoring and oversight 
     activities currently conducted by the Department of Housing 
     and Urban Development that are insufficient or ineffective in 
     accurately and efficiently assessing the performance of 
     public housing agencies and other providers of federally 
     assisted housing, and to evaluate whether such activities 
     should be eliminated, modified, or transferred to other 
     entities (including government and private entities) to 
     increase accuracy and effectiveness and improve monitoring.

     SEC. 1503. EVALUATION OF VARIOUS PERFORMANCE EVALUATION 
                   SYSTEMS.

       To carry out the purpose under section 1502(1), the study 
     under this subtitle shall identify, and analyze and assess 
     the costs and benefits of, the following methods of 
     regulating and evaluating the performance of public housing 
     agencies and other providers of federally assisted housing:
       (1) Current system.--The system pursuant to the United 
     States Housing Act of 1937 (as in effect upon the enactment 
     of this Act), including the methods and requirements under 
     such system for reporting, auditing, reviewing, sanctioning, 
     and monitoring of such agencies and housing providers and the 
     public housing management assessment program pursuant to 
     subtitle C of this title (and section 6(j) of the United 
     States Housing Act of 1937 (as in effect upon the enactment 
     of this Act)).
       (2) Accreditation models.--Various models that are based 
     upon accreditation of such agencies and housing providers, 
     subject to the following requirements:
       (A) The study shall identify and analyze various models 
     used in other industries and professions for accreditation 
     and determine the extent of their applicability to the 
     programs for public housing and federally assisted housing.
       (B) If any accreditation models are determined to be 
     applicable to the public and federally assisted housing 
     programs, the study shall identify appropriate goals, 
     objectives, and procedures for an accreditation program for 
     such agencies housing providers.
       (C) The study shall evaluate the effectiveness of 
     establishing an independent accreditation and evaluation 
     entity to assist, supplement, or replace the role of the 
     Department of Housing and Urban Development in assessing and 
     monitoring the performance of such agencies and housing 
     providers.
       (D) The study shall identify the necessary and appropriate 
     roles and responsibilities of various entities that would be 
     involved in an accreditation program, including the 
     Department of Housing and Urban Development, the Inspector 
     General of the Department, an accreditation entity, 
     independent auditors and examiners, local entities, and 
     public housing agencies.
       (E) The study shall determine the costs involved in 
     developing and maintaining such an independent accreditation 
     program.
       (F) The study shall analyze the need for technical 
     assistance to assist public housing agencies in improving 
     performance and identify the most effective methods to 
     provide such assistance.
       (3) Performance based models.--Various performance-based 
     models, including systems that establish performance goals or 
     targets, assess the compliance with such goals or targets, 
     and provide for incentives or sanctions based on performance 
     relative to such goals or targets.
       (4) Local review and monitoring models.--Various models 
     providing for local, resident, and community review and 
     monitoring of such agencies and housing providers, including 
     systems for review and monitoring by local and State 
     governmental bodies and agencies.
       (5) Private models.--Various models using private 
     contractors for review and monitoring of such agencies and 
     housing providers.
       (6) Other models.--Various models of any other systems that 
     may be more effective and efficient in regulating and 
     evaluating such agencies and housing providers.

     SEC. 1504. CONSULTATION.

       The entity that, pursuant to section 1505, carries out the 
     study under this subtitle shall, in carrying out the study, 
     consult with individuals and organization experienced in 
     managing public housing, private real estate managers, 
     representatives from State and local governments, residents 
     of public housing, families and individuals receiving choice- 
     or tenant-based assistance, the Secretary of Housing and 
     Urban Development, the Inspector General of the Department of 
     Housing and Urban Development, and the Comptroller General of 
     the United States.

     SEC. 1505. CONTRACT TO CONDUCT STUDY.

       (a) In General.--Subject to subsection (b), the Secretary 
     shall enter into a contract with a public or nonprofit 
     private entity to conduct the study under this subtitle, 
     using amounts made available pursuant to section 1507.
       (b) National Academy of Public Administration.--The 
     Secretary shall request the National Academy of Public 
     Administration to enter into the contract under subsection 
     (a) to conduct the study under this subtitle. If such Academy 
     declines to conduct the study, the Secretary shall carry out 
     such subsection through other public or nonprofit private 
     entities.

     SEC. 1506. REPORT.

       (a) Interim Report.--The Secretary shall ensure that not 
     later than the expiration of the 6-month period beginning on 
     the date of the enactment of this Act, the entity conducting 
     the study under this subtitle submits to the Congress an 
     interim report describing the actions taken to carry out the 
     study, the actions to be taken to complete the study, and any 
     findings and recommendations available at the time.
       (b) Final Report.--The Secretary shall ensure that--
       (1) not later than the expiration of the 12-month period 
     beginning on the date of the enactment of this Act, the study 
     required under this subtitle is completed and a report 
     describing the findings and recommendations as a result of 
     the study is submitted to the Congress; and
       (2) before submitting the report under this subsection to 
     the Congress, the report is submitted to the Secretary and 
     national organizations for public housing agencies at such 
     time to provide the Secretary and such agencies an 
     opportunity to review the report and provide written comments 
     on the report, which shall be included together with the 
     report upon submission to the Congress under paragraph (1).

     SEC. 1507. FUNDING.

       Of any amounts made available under title V of the Housing 
     and Urban Development Act of 1970 for policy development and 
     research for fiscal year 1998, $500,000 shall be available to 
     carry out this subtitle.

     SEC. 1508. EFFECTIVE DATE.

       This subtitle shall take effect on the date of the 
     enactment of this Act.

         Subtitle B--Housing Evaluation and Accreditation Board

     SEC. 1521. ESTABLISHMENT.

       (a) In General.--There is established an independent agency 
     in the executive branch of the Government to be known as the 
     Housing Foundation and Accreditation Board (in this title 
     referred to as the ``Board'').
       (b) Requirement for Congressional Review of Study.--
     Notwithstanding any other provision of this division, 
     sections 1523, 1524, and 1525 shall not take effect and the 
     Board shall not have any authority to take any action under 
     such sections (or otherwise) unless there is enacted a law 
     specifically providing for the repeal of this subsection. 
     This subsection may not be construed to prevent the 
     appointment of the Board under section 1522.
       (c) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act.

     SEC. 1522. MEMBERSHIP.

       (a) In General.--The Board shall be composed of 12 members 
     appointed by the President not later than 180 days after the 
     date of the final report regarding the study required under 
     subtitle A is submitted to the Congress pursuant to section 
     1506(b), as follows:
       (1) 4 members shall be appointed from among 10 individuals 
     recommended by the Secretary of Housing and Urban 
     Development.
       (2) 4 members shall be appointed from among 10 individuals 
     recommended by the Chairman and Ranking Minority Member of 
     the Committee on Banking, Housing, and Urban Affairs of the 
     Senate.
       (3) 4 members appointed from among 10 individuals 
     recommended by the Chairman and Ranking Minority Member of 
     the Committee on Banking and Financial Services of the House 
     of Representatives.
       (b) Qualifications.--
       (1) Required representation.--The Board shall at all times 
     have the following members:
       (A) 2 members who are residents of public housing or 
     dwelling units assisted under title XIII of this Act or the 
     provisions of section 8 of the United States Housing Act of 
     1937 (as in effect before the effective date of the repeal 
     under section 1601(b) of this Act).
       (B) At least 2, but not more than 4 members who are 
     executive directors of public housing agencies.
       (C) 1 member who is a member of the Institute of Real 
     Estate Managers.
       (D) 1 member who is the owner of a multifamily housing 
     project assisted under a program administered by the 
     Secretary of Housing and Urban Development.
       (2) Required experience.--The Board shall at all times have 
     as members individuals with the following experience:
       (A) At least 1 individual who has extensive experience in 
     the residential real estate finance business.
       (B) At least 1 individual who has extensive experience in 
     operating a nonprofit organization that provides affordable 
     housing.
       (C) At least 1 individual who has extensive experience in 
     construction of multifamily housing.
       (D) At least 1 individual who has extensive experience in 
     the management of a community development corporation.
       (E) At least 1 individual who has extensive experience in 
     auditing participants in government programs.
     A single member of the board with the appropriate experience 
     may satisfy the requirements of more than 1 subparagraph of 
     this paragraph. A single member of the board with the 
     appropriate qualifications and experience may satisfy the 
     requirements of a subparagraph of paragraph (1) and a 
     subparagraph of this paragraph.
       (c) Political Affiliation.--Not more than 6 members of the 
     Board may be of the same political party.
       (d) Terms.--
       (1) In general.--Each member of the Board shall be 
     appointed for a term of 4 years, except as provided in 
     paragraphs (2) and (3).

[[Page H5624]]

       (2) Terms of initial appointees.--As designated by the 
     President at the time of appointment, of the members first 
     appointed--
       (A) 3 shall be appointed for terms of 1 year;
       (B) 3 shall be appointed for terms of 2 years;
       (C) 3 shall be appointed for terms of 3 years; and
       (D) 3 shall be appointed for terms of 4 years.
       (3) Vacancies.--Any member appointed to fill a vacancy 
     occurring before the expiration of the term for which the 
     member's predecessor was appointed shall be appointed only 
     for the remainder of that term. A member may serve after the 
     expiration of that member's term until a successor has taken 
     office. A vacancy in the Board shall be filled in the manner 
     in which the original appointment was made.
       (e) Chairperson.--The Board shall elect a chairperson from 
     among members of the Board.
       (f) Quorum.--A majority of the members of the Board shall 
     constitute a quorum for the transaction of business.
       (g) Voting.--Each member of the Board shall be entitled to 
     1 vote, which shall be equal to the vote of every other 
     member of the Board.
       (h) Prohibition on Additional Pay.--Members of the Board 
     shall serve without compensation, but shall be reimbursed for 
     travel, subsistence, and other necessary expenses incurred in 
     the performance of their duties as members of the Board.

     SEC. 1523. FUNCTIONS.

       The purpose of this subtitle is to establish the Board as a 
     nonpolitical entity to carry out, not later than the 
     expiration of the 12-month period beginning upon the 
     appointment under section 1522 of all of the initial members 
     of the Board (or such other date as may be provided by law), 
     the following functions:
       (1) Establishment of performance benchmarks.--The Board 
     shall establish standards and guidelines for use by the Board 
     in measuring the performance and efficiency of public housing 
     agencies and other owners and providers of federally assisted 
     housing in carrying out operational and financial functions. 
     The standards and guidelines shall be designed to replace the 
     public housing management assessment program under section 
     6(j) of the United States Housing Act of 1937 (as in effect 
     before the enactment of this Act) and improve the evaluation 
     of the performance of housing providers relative to such 
     program. In establishing such standards and guidelines, the 
     Board shall consult with the Secretary, the Inspector General 
     of the Department of Housing and Urban Development, and such 
     other persons and entities as the Board considers 
     appropriate.
       (2) Establishment of accreditation procedure and 
     accreditation.--The Board shall--
       (A) establish a procedure for the Board to accredit public 
     housing agencies to receive block grants under title XII for 
     the operation, maintenance, and production of public housing 
     and amounts for housing assistance under title XIII, based on 
     the performance of agencies, as measured by the performance 
     benchmarks established under paragraph (1) and any audits and 
     reviews of agencies; and
       (B) commence the review and accreditation of public housing 
     agencies under the procedures established under subparagraph 
     (A).
     In carrying out the functions under this section, the Board 
     shall take into consideration the findings and 
     recommendations contained in the report issued under section 
     1506(b).

     SEC. 1524. POWERS.

       (a) Hearings.--The Board may, for the purpose of carrying 
     out this subtitle, hold such hearings and sit and act at such 
     times and places as the Board determines appropriate.
       (b) Rules and Regulations.--The Board 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.
       (c) Assistance From Federal Agencies.--
       (1) Information.--The Board may secure directly from any 
     department or agency of the Federal Government such 
     information as the Board may require for carrying out its 
     functions, including public housing agency plans submitted to 
     the Secretary by public housing agencies under title XI. Upon 
     request of the Board, any such department or agency shall 
     furnish such information.
       (2) General services administration.--The Administrator of 
     General Services shall provide to the Board, on a 
     reimbursable basis, such administrative support services as 
     the Board may request.
       (3) Department of housing and urban development.--Upon the 
     request of the chairperson of the Board, the Secretary of 
     Housing and Urban Development shall, to the extent possible 
     and subject to the discretion of the Secretary, detail any of 
     the personnel of the Department of Housing and Urban 
     Development, on a nonreimbursable basis, to assist the Board 
     in carrying out its functions under this subtitle.
       (4) HUD inspector general.--The Inspector General of the 
     Department of Housing and Urban Development shall serve the 
     Board as a principal adviser with respect to all aspects of 
     audits of public housing agencies. The Inspector General may 
     advise the Board with respect to other activities and 
     functions of the Board.
       (d) Mails.--The Board may use the United States mails in 
     the same manner and under the same conditions as other 
     Federal agencies.
       (e) Contracting.--The Board may, to such extent and in such 
     amounts as are provided in appropriation Acts, enter into 
     contracts with private firms, institutions, and individuals 
     for the purpose of conducting evaluations of public housing 
     agencies, audits of public housing agencies, and research and 
     surveys necessary to enable the Board to discharge its 
     functions under this subtitle.
       (f) Staff.--
       (1) Executive director.--The Board shall appoint an 
     executive director of the Board, who shall be compensated at 
     a rate fixed by the Board, but which shall not exceed the 
     rate established for level V of the Executive Schedule under 
     title 5, United States Code.
       (2) Other personnel.--In addition to the executive 
     director, the Board may appoint and fix the compensation of 
     such personnel as the Board considers necessary, 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.
       (g) Access to Documents.--The Board shall have access for 
     the purposes of carrying out its functions under this 
     subtitle to any books, documents, papers, and records of a 
     public housing agency to which the Secretary has access under 
     this division.

     SEC. 1525. FEES.

       (a) Accreditation Fees.--The Board may establish and charge 
     reasonable fees for the accreditation of public housing 
     agencies as the Board considers necessary to cover the costs 
     of the operations of the Board relating to its functions 
     under section 1523.
       (b) Fund.--Any fees collected under this section shall be 
     deposited in an operations fund for the Board, which is 
     hereby established in the Treasury of the United States. 
     Amounts in such fund shall be available, to the extent 
     provided in appropriation Acts, for the expenses of the Board 
     in carrying out its functions under this subtitle.

     SEC. 1526. GAO AUDIT.

       The activities and transactions of the Board shall be 
     subject to audit by the Comptroller General of the United 
     States under such rules and regulations as may be prescribed 
     by the Comptroller General. The representatives of the 
     General Accounting Office shall have access for the purpose 
     of audit and examination to any books, documents, papers, and 
     records of the Board that are necessary to facilitate an 
     audit.

    Subtitle C--Interim Applicability of Public Housing Management 
                           Assessment Program

     SEC. 1531. INTERIM APPLICABILITY.

       This subtitle shall be effective only during the period 
     that begins on the effective date of this division and ends 
     upon the date of the effectiveness of the standards and 
     procedures required under section 1523.

     SEC. 1532. MANAGEMENT ASSESSMENT INDICATORS.

       (a) Establishment.--The Secretary shall develop and publish 
     in the Federal Register indicators to assess the management 
     performance of public housing agencies and other entities 
     managing public housing (including resident management 
     corporations, independent managers pursuant to section 1236, 
     and management entities pursuant to subtitle D). The 
     indicators shall be established by rule under section 553 of 
     title 5, United States Code. Such indicators shall enable the 
     Secretary to evaluate the performance of public housing 
     agencies and such other managers of public housing in all 
     major areas of management operations.
       (b) Content.--The management assessment indicators shall 
     include the following indicators:
       (1) The number and percentage of vacancies within an 
     agency's or manager's inventory, including the progress that 
     an agency or manager has made within the previous 3 years to 
     reduce such vacancies.
       (2) The amount and percentage of funds obligated to the 
     public housing agency or manager from the capital fund or 
     under section 14 of the United States Housing Act of 1937 (as 
     in effect before the effective date of the repeal under 
     section 1601(b) of this Act), which remain unexpended after 3 
     years.
       (3) The percentage of rents uncollected.
       (4) The energy consumption (with appropriate adjustments to 
     reflect different regions and unit sizes).
       (5) The average period of time that an agency or manager 
     requires to repair and turn-around vacant dwelling units.
       (6) The proportion of maintenance work orders outstanding, 
     including any progress that an agency or manager has made 
     during the preceding 3 years to reduce the period of time 
     required to complete maintenance work orders.
       (7) The percentage of dwelling units that an agency or 
     manager fails to inspect to ascertain maintenance or 
     modernization needs within such period of time as the 
     Secretary deems appropriate (with appropriate adjustments, if 
     any, for large and small agencies or managers).
       (8) The extent to which the rent policies of any public 
     housing agency establishing rental amounts in accordance with 
     section 1225(b) comply with the requirement under section 
     1225(c).
       (9) Whether the agency is providing acceptable basic 
     housing conditions, as determined by the Secretary.
       (10) Whether the agency has conducted and regularly updated 
     an assessment to identify any pest control problems in the 
     public housing owned or operated by the agency and the

[[Page H5625]]

     extent to which the agency is effective in carrying out a 
     strategy to eradicate or control such problems, which 
     assessment and strategy shall be included in the local 
     housing management plan for the agency under section 1106.
       (11) Any other factors as the Secretary deems appropriate.
       (c) Considerations in Evaluation.--The Secretary shall--
       (1) administer the system of evaluating public housing 
     agencies and managers flexibly to ensure that agencies and 
     managers are not penalized as result of circumstances beyond 
     their control;
       (2) reflect in the weights assigned to the various 
     management assessment indicators the differences in the 
     difficulty of managing individual developments that result 
     from their physical condition and their neighborhood 
     environment; and
       (3) determine a public housing agency's or manager's status 
     as ``troubled with respect to modernization'' under section 
     1533(b) based upon factors solely related to its ability to 
     carry out modernization activities.

     SEC. 1533. DESIGNATION OF PHA'S.

       (a) Troubled PHA's.--The Secretary shall, under the 
     rulemaking procedures under section 553 of title 5, United 
     States Code, establish procedures for designating troubled 
     public housing agencies and managers, which procedures shall 
     include identification of serious and substantial failure to 
     perform as measured by (1) the performance indicators 
     specified under section 1532 and such other factors as the 
     Secretary may deem to be appropriate; or (2) such other 
     evaluation system as is determined by the Secretary to assess 
     the condition of the public housing agency or other entity 
     managing public housing, which system may be in addition to 
     or in lieu of the performance indicators established under 
     section 1532. Such procedures shall provide that an agency 
     that does not provide acceptable basic housing conditions 
     shall be designated a troubled public housing agency.
       (b) Agencies Troubled With Respect to Capital Activities.--
     The Secretary shall designate, by rule under section 553 of 
     title 5, United States Code, agencies and managers that are 
     troubled with respect to capital activities.
       (c) Agencies at Risk of Becoming Troubled.--The Secretary 
     shall designate, by rule under section 553 of title 5, United 
     States Code, agencies and managers that are at risk of 
     becoming troubled.
       (d) Exemplary Agencies.--The Secretary may also, in 
     consultation with national organizations representing public 
     housing agencies and managers and public officials (as the 
     Secretary determines appropriate), identify and commend 
     public housing agencies and managers that meet the 
     performance standards established under section 1532 in an 
     exemplary manner.
       (e) Appeal of Designation.--The Secretary shall establish 
     procedures for public housing agencies and managers to appeal 
     designation as a troubled agency or manager (including 
     designation as a troubled agency or manager for purposes of 
     capital activities), to petition for removal of such 
     designation, and to appeal any refusal to remove such 
     designation.

     SEC. 1534. ON-SITE INSPECTION OF TROUBLED PHA'S.

       (a) In General.--Upon designating a public housing agency 
     or manager as troubled pursuant to section 1533 and 
     determining that an assessment under this section will not 
     duplicate any other review previously conducted or required 
     to be conducted of the agency or manager, the Secretary shall 
     provide for an on-site, independent assessment of the 
     management of the agency or manager.
       (b) Content.--To the extent the Secretary deems appropriate 
     (taking into consideration an agency's or manager's 
     performance under the indicators specified under section 
     1532, the assessment team shall also consider issues relating 
     to the agency's or manager's resident population and physical 
     inventory, including the extent to which--
       (1) the public housing agency plan for the agency or 
     manager adequately and appropriately addresses the 
     rehabilitation needs of the public housing inventory;
       (2) residents of the agency or manager are involved in and 
     informed of significant management decisions; and
       (3) any developments in the agency's or manager's inventory 
     are severely distressed (as such term is defined under 
     section 1262.
       (c) Independent Assessment Team.--An independent assessment 
     under this section shall be carried out by a team of 
     knowledgeable individuals selected by the Secretary (referred 
     to in this title as the ``assessment team'') with expertise 
     in public housing and real estate management. In conducting 
     an assessment, the assessment team shall consult with the 
     residents and with public and private entities in the 
     jurisdiction in which the public housing is located. The 
     assessment team shall provide to the Secretary and the public 
     housing agency or manager a written report, which shall 
     contain, at a minimum, recommendations for such management 
     improvements as are necessary to eliminate or substantially 
     remedy existing deficiencies.

     SEC. 1535. ADMINISTRATION.

       (a) PHA's.--The Secretary shall carry out this subtitle 
     with respect to public housing agencies substantially in the 
     same manner as the public housing management assessment 
     system under section 6(j) of the United States Housing Act of 
     1937 (as in effect immediately before the effective date of 
     the repeal under section 1601(b) of this Act) was required to 
     be carried out with respect to public housing agencies. The 
     Secretary may comply with the requirements under this 
     subtitle by using any regulations issued to carry out such 
     system and issuing any additional regulations necessary to 
     make such system comply with the requirements under this 
     subtitle.
       (b) Other Managers.--The Secretary shall establish specific 
     standards and procedures for carrying out this subtitle with 
     respect to managers of public housing that are not public 
     housing agencies. Such standards and procedures shall take in 
     consideration special circumstances relating to entities 
     hired, directed, or appointed to manage public housing.

   Subtitle D--Accountability and Oversight Standards and Procedures

     SEC. 1541. AUDITS.

       (a) By Secretary and Comptroller General.--Each block grant 
     contract under section 1201 and each contract for housing 
     assistance amounts under section 1302 shall provide that the 
     Secretary, the Inspector General of the Department of Housing 
     and Urban Development, and the Comptroller General of the 
     United States, or any of their duly authorized 
     representatives, shall, for the purpose of audit and 
     examination, have access to any books, documents, papers, and 
     records of the public housing agency (or other entity) 
     entering into such contract that are pertinent to this 
     division and to its operations with respect to financial 
     assistance under this division.
       (b) By PHA.--
       (1) Requirement.--Each public housing agency that owns or 
     operates 250 or more public housing dwelling units and 
     receives assistance under this division shall have an audit 
     made in accordance with chapter 75 of title 31, United States 
     Code. The Secretary, the Inspector General of the Department 
     of Housing and Urban Development, and the Comptroller General 
     of the United States shall have access to all books, 
     documents, papers, or other records that are pertinent to the 
     activities carried out under this division in order to make 
     audit examinations, excerpts, and transcripts.
       (2) Withholding of amounts.--The Secretary may, in the sole 
     discretion of the Secretary, arrange for, and pay the costs 
     of, an audit required under paragraph (1). In such 
     circumstances, the Secretary may withhold, from assistance 
     otherwise payable to the agency under this division, amounts 
     sufficient to pay for the reasonable costs of conducting an 
     acceptable audit, including, when appropriate, the reasonable 
     costs of accounting services necessary to place the agency's 
     books and records in auditable condition.

     SEC. 1542. PERFORMANCE AGREEMENTS FOR AUTHORITIES AT RISK OF 
                   BECOMING TROUBLED.

       (a) In General.--Upon designation of a public housing 
     agency as at risk of becoming troubled under section 1533(c), 
     the Secretary shall seek to enter into an agreement with the 
     agency providing for improvement of the elements of the 
     agency that have been identified. An agreement under this 
     section shall contain such terms and conditions as the 
     Secretary determines are appropriate for addressing the 
     elements identified, which may include an on-site, 
     independent assessment of the management of the agency.
       (b) Powers of Secretary.--If the Secretary determines that 
     such action is necessary to prevent the public housing agency 
     from becoming a troubled agency, the Secretary may--
       (1) solicit competitive proposals from other public housing 
     agencies and private housing management agents (which may be 
     selected by existing tenants through administrative 
     procedures established by the Secretary), for any case in 
     which such agents may be needed for managing all, or part, of 
     the housing or functions administered by the agency; or
       (2) solicit competitive proposals from other public housing 
     agencies and private entities with experience in construction 
     management, for any case in which such authorities or firms 
     may be needed to oversee implementation of assistance made 
     available for capital improvement for public housing of the 
     agency.

     SEC. 1543. PERFORMANCE AGREEMENTS AND CDBG SANCTIONS FOR 
                   TROUBLED PHA'S.

       (a) In General.--Upon designation of a public housing 
     agency as a troubled agency under section 1533(a) and after 
     reviewing the report submitted pursuant to section 1534(c) 
     and consulting with the assessment team for the agency under 
     section 1534, the Secretary shall seek to enter into an 
     agreement with the agency providing for improving the 
     management performance of the agency.
       (b) Contents.--An agreement under this section between the 
     Secretary and a public housing agency shall set forth--
       (1) targets for improving performance, as measured by the 
     guidelines and standards established under section 1532 and 
     other requirements within a specified period of time, which 
     shall include targets to be met upon the expiration of the 
     12-month period beginning upon entering into the agreement;
       (2) strategies for meeting such targets;
       (3) sanctions for failure to implement such strategies; and
       (4) to the extent the Secretary deems appropriate, a plan 
     for enhancing resident involvement in the management of the 
     public housing agency.

[[Page H5626]]

       (c) Local Assistance in Implementation.--The Secretary and 
     the public housing agency shall, to the maximum extent 
     practicable, seek the assistance of local public and private 
     entities in carrying out an agreement under this section.
       (d) Default Under Performance Agreement.--Upon the 
     expiration of the 12-month period beginning upon entering 
     into an agreement under this section with a public housing 
     agency, the Secretary shall review the performance of the 
     agency in relation to the performance targets and strategies 
     under the agreement. If the Secretary determines that the 
     agency has failed to comply with the performance targets 
     established for such period, the Secretary shall take the 
     action authorized under subsection (b)(2) or (b)(5) of 
     section 1545.
       (e) CDBG Sanction Against Local Government Contributing to 
     Troubled Status of PHA.--If the Secretary determines that the 
     actions or inaction of any unit of general local government 
     within which any portion of the jurisdiction of a public 
     housing agency is located has substantially contributed to 
     the conditions resulting in the agency being designated under 
     section 1533(a) as a troubled agency, the Secretary may 
     redirect or withhold, from such unit of general local 
     government any amounts allocated for such unit under section 
     106 of the Housing and Community Development Act of 1974.

     SEC. 1544. OPTION TO DEMAND CONVEYANCE OF TITLE TO OR 
                   POSSESSION OF PUBLIC HOUSING.

       (a) Authority for Conveyance.--A contract under section 
     1201 for block grants under title XII (including contracts 
     which amend or supersede contracts previously made (including 
     contracts for contributions)) may provide that upon the 
     occurrence of a substantial default with respect to the 
     covenants or conditions to which the public housing agency is 
     subject (as such substantial default shall be defined in such 
     contract), the public housing agency shall be obligated, at 
     the option of the Secretary, to--
       (1) convey title in any case where, in the determination of 
     the Secretary (which determination shall be final and 
     conclusive), such conveyance of title is necessary to achieve 
     the purposes of this division; or
       (2) deliver to the Secretary possession of the development, 
     as then constituted, to which such contract relates.
       (b) Obligation to Reconvey.--Any block grant contract under 
     title XII containing the provisions authorized in subsection 
     (a) shall also provide that the Secretary shall be obligated 
     to reconvey or redeliver possession of the development, as 
     constituted at the time of reconveyance or redelivery, to 
     such public housing agency or to its successor (if such 
     public housing agency or a successor exists) upon such terms 
     as shall be prescribed in such contract, and as soon as 
     practicable after--
       (1) the Secretary is satisfied that all defaults with 
     respect to the development have been cured, and that the 
     development will, in order to fulfill the purposes of this 
     division, thereafter be operated in accordance with the terms 
     of such contract; or
       (2) the termination of the obligation to make annual block 
     grants to the agency, unless there are any obligations or 
     covenants of the agency to the Secretary which are then in 
     default.
     Any prior conveyances and reconveyances or deliveries and 
     redeliveries of possession shall not exhaust the right to 
     require a conveyance or delivery of possession of the 
     development to the Secretary pursuant to subsection (a) upon 
     the subsequent occurrence of a substantial default.
       (c) Continued Grants for Repayment of Bonds and Notes Under 
     1937 Act.--If--
       (1) a contract for block grants under title XII for an 
     agency includes provisions that expressly state that the 
     provisions are included pursuant to this subsection, and
       (2) the portion of the block grant payable for debt service 
     requirements pursuant to the contract has been pledged by the 
     public housing agency as security for the payment of the 
     principal and interest on any of its obligations, then--
       (A) the Secretary shall (notwithstanding any other 
     provisions of this division), continue to make the block 
     grant payments for the agency so long as any of such 
     obligations remain outstanding; and
       (B) the Secretary may covenant in such a contract that in 
     any event such block grant amounts shall in each year be at 
     least equal to an amount which, together with such income or 
     other funds as are actually available from the development 
     for the purpose at the time such block grant payments are 
     made, will suffice for the payment of all installments of 
     principal and interest on the obligations for which the 
     amounts provided for in the contract shall have been pledged 
     as security that fall due within the next succeeding 12 
     months.
     In no case shall such block grant amounts be in excess of the 
     maximum sum specified in the contract involved, nor for 
     longer than the remainder of the maximum period fixed by the 
     contract.

     SEC. 1545. REMOVAL OF INEFFECTIVE PHA'S.

       (a) Conditions of Removal.--The actions specified in 
     subsection (b) may be taken only upon--
       (1) the occurrence of events or conditions that constitute 
     a substantial default by a public housing agency with respect 
     to (A) the covenants or conditions to which the public 
     housing agency is subject, or (B) an agreement entered into 
     under section 1543; or
       (2) submission to the Secretary of a petition by the 
     residents of the public housing owned or operated by a public 
     housing agency that is designated as troubled pursuant to 
     section 1533(a).
       (b) Removal Actions.--Notwithstanding any other provision 
     of law or of any block grant contract under title XII or any 
     grant agreement under title XIII, in accordance with 
     subsection (a), the Secretary may--
       (1) solicit competitive proposals from other public housing 
     agencies and private housing management agents (which, in the 
     discretion of the Secretary, may be selected by existing 
     public housing residents through administrative procedures 
     established by the Secretary) and, if appropriate, 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 functions of the agency;
       (2) take possession of the public housing agency, including 
     any developments or functions of the agency under any section 
     of this division;
       (3) solicit competitive proposals from other public housing 
     agencies and private entities with experience in construction 
     management and, if appropriate, provide for such authorities 
     or firms to oversee implementation of assistance made 
     available for capital improvements for public housing;
       (4) require the agency to make other arrangements 
     acceptable to the Secretary and in the best interests of the 
     public housing residents and assisted families under title 
     XIII for managing all, or part of, the public housing 
     administered by the agency or the functions of the agency; or
       (5) petition for the appointment of a receiver for the 
     public housing agency to any district court of the United 
     States or to any court of the State in which any portion of 
     the jurisdiction of the public housing agency is located, 
     that is authorized to appoint a receiver for the purposes and 
     having the powers prescribed in this section.
       (c) Emergency Assistance.--The Secretary may make available 
     to receivers and other entities selected or appointed 
     pursuant to this section such assistance as is fair and 
     reasonable 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 assisted families 
     under title XIII.
       (d) Powers of Secretary.--If the Secretary takes possession 
     of an agency, or any developments or functions of an agency, 
     pursuant to subsection (b)(2), the Secretary--
       (1) may abrogate contracts that substantially impede 
     correction of the substantial default or improvement of the 
     classification, but only after efforts to renegotiate such 
     contracts have failed and the Secretary has made a written 
     determination regarding such abrogation, which shall be 
     available to the public upon request, identify such 
     contracts, and explain the determination that such contracts 
     may be abrogated;
       (2) may demolish and dispose of assets of the agency in 
     accordance with section 1261;
       (3) where determined appropriate by the Secretary, may 
     require the establishment of one or more new public housing 
     agencies;
       (4) may consolidate the agency into other well-managed 
     public housing agencies with the consent of such well-managed 
     authorities;
       (5) shall not be subject to any State or local laws 
     relating to civil service requirements, employee rights, 
     procurement, or financial or administrative controls that, in 
     the determination of the Secretary, substantially impede 
     correction of the substantial default or improvement of the 
     classification, but only if the Secretary has made a written 
     determination regarding such inapplicability, which shall be 
     available to the public upon request, identify such 
     inapplicable laws, and explain the determination that such 
     laws impede such correction; and
       (6) shall have such additional authority as a district 
     court of the United States has the authority to confer under 
     like circumstances upon a receiver to achieve the purposes of 
     the receivership.
     The Secretary may appoint, on a competitive or noncompetitive 
     basis, an individual or entity as an administrative receiver 
     to assume the Secretary's responsibility under this paragraph 
     for the administration of a public housing agency. The 
     Secretary may delegate to the administrative receiver any or 
     all of the powers of the Secretary under this subsection. 
     Regardless of any delegation under this subsection, an 
     administrative receiver may not require the establishment of 
     one or more new public housing agencies pursuant to paragraph 
     (3) unless the Secretary first approves such establishment. 
     For purposes of this subsection, the term ``public housing 
     agency'' includes any developments or functions of a public 
     housing agency under any section of this title.
       (e) Receivership.--
       (1) Required appointment.--In any proceeding under 
     subsection (b)(5), 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 the public housing agency in a 
     manner consistent with this division 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, the Secretary, or any other 
     appropriate entity. The court shall have power to grant 
     appropriate temporary or preliminary relief pending final 
     disposition of the petition by the Secretary.

[[Page H5627]]

       (2) Powers of receiver.--If a receiver is appointed for a 
     public housing agency pursuant to subsection (b)(5), in 
     addition to the powers accorded by the court appointing the 
     receiver, the receiver--
       (A) may abrogate contracts that substantially impede 
     correction of the substantial default or improvement of the 
     classification, but only after bona fide efforts to 
     renegotiate such contracts have failed and the receiver has 
     made a written determination regarding such abrogation, which 
     shall be available to the public upon request, identify such 
     contracts, and explain the determination that such contracts 
     may be abrogated;
       (B) may demolish and dispose of assets of the agency in 
     accordance with section 1261;
       (C) where determined appropriate by the Secretary, may 
     require the establishment of one or more new public housing 
     agencies, to the extent permitted by State and local law; and
       (D) except as provided in subparagraph (C), shall not be 
     subject to any State or local laws relating to civil service 
     requirements, employee rights, procurement, or financial or 
     administrative controls that, in the determination of the 
     receiver, substantially impede correction of the substantial 
     default or improvement of the classification, but only if the 
     receiver has made a written determination regarding such 
     inapplicability, which shall be available to the public upon 
     request, identify such inapplicable laws, and explain the 
     determination that such laws impede such correction.
     For purposes of this paragraph, the term ``public housing 
     agency'' includes any developments or functions of a public 
     housing agency under any section of this title.
       (3) Termination.--The appointment of a receiver pursuant to 
     this subsection may be terminated, upon the petition of any 
     party, when the court determines that all defaults have been 
     cured or the public housing agency will be able to make the 
     same amount of progress in correcting the management of the 
     housing as the receiver.
       (f) Liability.--If the Secretary takes possession of an 
     agency pursuant to subsection (b)(2) or a receiver is 
     appointed pursuant to subsection (b)(5) for a public housing 
     agency, the Secretary or the receiver shall be deemed to be 
     acting in the capacity of the public housing agency (and not 
     in the official capacity as Secretary or other official) and 
     any liability incurred shall be a liability of the public 
     housing agency.
       (g) Effectiveness.--The provisions of this section shall 
     apply with respect to actions taken before, on, or after the 
     effective date of this division and shall apply to any 
     receivers appointed for a public housing agency before the 
     effective date of this division.

     SEC. 1546. MANDATORY TAKEOVER OF CHRONICALLY TROUBLED PHA'S.

       (a) Removal of Agency.--Notwithstanding any other provision 
     of this division, not later than the expiration of the 180-
     day period beginning on the effective date of this division, 
     the Secretary shall take one of the following actions with 
     respect to each chronically troubled public housing agency:
       (1) Contracting for management.--Solicit competitive 
     proposals for the management of the agency pursuant to 
     section 1545(b)(1) and replace the management of the agency 
     pursuant to selection of such a proposal.
       (2) Takeover.--Take possession of the agency pursuant to 
     section 1545(b)(2).
       (3) Petition for receiver.--Petition for the appointment of 
     a receiver for the agency pursuant to section 1545(b)(5).
       (b) Definition.--For purposes of this section, the term 
     ``chronically troubled public housing agency'' means a public 
     housing agency that, as of the effective date of this 
     division, is designated under section 6(j)(2) of the United 
     States Housing Act of 1937 (as in effect immediately before 
     the effective date of the repeal under section 1601(b) of 
     this Act) as a troubled public housing agency and has been so 
     designated continuously for the 3-year period ending upon the 
     effective date of this division; except that such term does 
     not include any agency that owns or operates less than 1250 
     public housing dwelling units and that the Secretary 
     determines can, with a reasonable amount of effort, make such 
     improvements or remedies as may be necessary to remove its 
     designation as troubled within 12 months.

     SEC. 1547. TREATMENT OF TROUBLED PHA'S.

       (a) Effect of Troubled Status on CHAS.--The comprehensive 
     housing affordability strategy (or any consolidated plan 
     incorporating such strategy) for the State or unit of general 
     local government in which any troubled public housing agency 
     is located shall not be considered to comply with the 
     requirements under section 105 of the Cranston-Gonzalez 
     National Affordable Housing Act unless such plan includes a 
     description of the manner in which the State or unit will 
     assist such troubled agency in improving its operations to 
     remove such designation.
       (b) Definition.--For purposes of this section, the term 
     ``troubled public housing agency'' means a public housing 
     agency that--
       (1) upon the effective date of this division, is designated 
     under section 6(j)(2) of the United States Housing Act of 
     1937 (as in effect immediately before the effective date of 
     the repeal under section 1601(b) of this Act) as a troubled 
     public housing agency; and
       (2) is not a chronically troubled public housing agency, as 
     such term is defined in section 1546(b) of this Act.

     SEC. 1548. MAINTENANCE OF RECORDS.

       Each public housing agency shall keep such records as may 
     be reasonably necessary to disclose the amount and the 
     disposition by the agency of the proceeds of assistance 
     received pursuant to this division and to ensure compliance 
     with the requirements of this division.

     SEC. 1549. ANNUAL REPORTS REGARDING TROUBLED PHA'S.

       The Secretary shall submit a report to the Congress 
     annually, as a part of the report of the Secretary under 
     section 8 of the Department of Housing and Urban Development 
     Act, that--
       (1) identifies the public housing agencies that are 
     designated under section 1533 as troubled or at-risk of 
     becoming troubled and the reasons for such designation; and
       (2) describes any actions that have been taken in 
     accordance with sections 1542, 1543, 1544, and 1545.

     SEC. 1550. APPLICABILITY TO RESIDENT MANAGEMENT CORPORATIONS.

       The Secretary shall apply the provisions of this subtitle 
     to resident management corporations in the same manner as 
     applied to public housing agencies.

     SEC. 1551. ADVISORY COUNCIL FOR HOUSING AUTHORITY OF NEW 
                   ORLEANS.

       (a) Establishment.--The Secretary and the Housing Authority 
     of New Orleans (in this section referred to as the ``Housing 
     Authority'') shall, pursuant to the cooperative endeavor 
     agreement in effect between the Secretary and the Housing 
     Authority, establish an advisory council for the Housing 
     Authority of New Orleans (in this section referred to as the 
     ``advisory council'') that complies with the requirements of 
     this section.
       (b) Membership.--
       (1) In general.--The advisory council shall be appointed by 
     the Secretary, not later than 90 days after the date of the 
     enactment of this Act, and shall be composed of the following 
     members:
       (A) The Inspector General of the Department of Housing and 
     Urban Development (or the Inspector General's designee).
       (B) Not more than 7 other members, who shall be selected 
     for appointment based on their experience in successfully 
     reforming troubled public housing agencies or in providing 
     affordable housing in coordination with State and local 
     governments, the private sector, affordable housing 
     residents, or local nonprofit organizations.
       (2) Prohibition on additional pay.--Members of the advisory 
     council shall serve without compensation, but shall be 
     reimbursed for travel, subsistence, and other necessary 
     expenses incurred in the performance of their duties as 
     members of the Board using amounts from the Headquarters 
     Reserve fund pursuant to section 1111(b)(4).
       (c) Functions.--The advisory council shall--
       (1) establish standards and guidelines for assessing the 
     performance of the Housing Authority in carrying out 
     operational, asset management, and financial functions for 
     purposes of the reports and finding under subsections (d) and 
     (e), respectively;
       (2) provide advice, expertise, and recommendations to the 
     Housing Authority regarding the management, operation, 
     repair, redevelopment, revitalization, demolition, and 
     disposition of public housing developments of the Housing 
     Authority;
       (3) report to the Congress under subsection (d) regarding 
     any progress of the Housing Authority in improving the 
     performance of its functions; and
       (4) make a final finding to the Congress under subsection 
     (e) regarding the future of the Housing Authority.
       (d) Quarterly Reports.--The advisory council shall report 
     to the Congress and the Secretary not less than every 3 
     months regarding the performance of the Housing Authority and 
     any progress of the authority in improving its performance 
     and carrying out its functions.
       (e) Final Finding.--Upon the expiration of the 18-month 
     period that begins upon the appointment under subsection 
     (b)(1) of all members of the advisory council, the council 
     shall make and submit to the Congress and the Secretary a 
     finding of whether the Housing Authority has substantially 
     improved its performance, the performance of its functions, 
     and the overall condition of the Authority such that the 
     Authority should be allowed to continue to operate as the 
     manager of the public housing of the Authority. In making the 
     finding under this subsection, the advisory council shall 
     consider whether the Housing Authority has made sufficient 
     progress in the demolition and revitalization of the Desire 
     Homes development, the revitalization of the St. Thomas Homes 
     development, the appropriate allocation of operating subsidy 
     amounts, and the appropriate expending of modernization 
     amounts.
       (f) Receivership.--If the advisory council finds under 
     subsection (e) that the Housing Authority has not 
     substantially improved its performance such that the 
     Authority should be allowed to continue to operate as the 
     manager of the public housing of the Authority, the Secretary 
     shall (notwithstanding section 1545(a)) petition under 
     section 1545(b) for the appointment of a receiver for the 
     Housing Authority, which receivership shall be subject to the 
     provisions of section 1545.
       (g) Exemption.--The provisions of section 1546 shall not 
     apply to the Housing Authority.

[[Page H5628]]

               TITLE XVI--REPEALS AND RELATED AMENDMENTS

      Subtitle A--Repeals, Effective Date, and Savings Provisions

     SEC. 1601. EFFECTIVE DATE AND REPEAL OF UNITED STATES HOUSING 
                   ACT OF 1937.

       (a) Effective Date.--
       (1) In general.--This division and the amendments made by 
     this division shall take effect on October 1, 1999, except as 
     otherwise provided in this section.
       (2) Specific effective dates.--Any provision of this 
     division that specifically provides for the effective date of 
     such provision shall take effect in accordance with the terms 
     of the provision.
       (b) Repeal of United States Housing Act of 1937.--Effective 
     upon the effective date under subsection (a)(1), the United 
     States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is 
     repealed, subject to the conditions under subsection (c).
       (c) Savings Provisions.--
       (1) Obligations under 1937 act.--Any obligation of the 
     Secretary made under authority of the United States Housing 
     Act of 1937 shall continue to be governed by the provisions 
     of such Act, except that--
       (A) notwithstanding the repeal of such Act, the Secretary 
     may make a new obligation under such Act upon finding that 
     such obligation is required--
       (i) to protect the financial interests of the United States 
     or the Department of Housing and Urban Development; or
       (ii) for the amendment, extension, or renewal of existing 
     obligations; and
       (B) notwithstanding the repeal of such Act, the Secretary 
     may, in accordance with subsection (d), issue regulations and 
     other guidance and directives as if such Act were in effect 
     if the Secretary finds that such action is necessary to 
     facilitate the administration of obligations under such Act.
       (2) Transition of funding.--Amounts appropriated under the 
     United States Housing Act of 1937 shall, upon repeal of such 
     Act, remain available for obligation under such Act in 
     accordance with the terms under which amounts were made 
     available.
       (3) Cross references.--The provisions of the United States 
     Housing Act of 1937 shall remain in effect for purposes of 
     the validity of any reference to a provision of such Act in 
     any statute (other than such Act) until such reference is 
     modified by law or repealed.
       (d) Publication and Effective Date of Savings Provisions.--
       (1) Submission to congress.--The Secretary shall submit to 
     the Committee on Banking and Financial Services of the House 
     of Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate a copy of any proposed 
     regulation, guidance, or directive under subsection 
     (c)(1)(B).
       (2) Opportunity to review.--Such a regulation, guidance, or 
     directive may not be published for comment or for final 
     effectiveness before or during the 15-calendar day period 
     beginning on the day after the date on which such regulation, 
     guidance, or directive was submitted to the Congress.
       (3) Effective date.--No regulation, guideline, or directive 
     may become effective until after the expiration of the 30-
     calendar day period beginning on the day after the day on 
     which such rule or regulation is published as final.
       (4) Waiver.--The provisions of paragraphs (2) and (3) may 
     be waived upon the written request of the Secretary, if 
     agreed to by the Chairmen and Ranking Minority Members of 
     both Committees.
       (e) Modifications.--Notwithstanding any provision of this 
     division or any annual contributions contract or other 
     agreement entered into by the Secretary and a public housing 
     agency pursuant to the provisions of the United States 
     Housing Act of 1937 (as in effect before the effective date 
     of the repeal under section 1601(b) of this Act), the 
     Secretary and the agency may by mutual consent amend, 
     supersede, or modify any such agreement as appropriate to 
     provide for assistance under this division, except that the 
     Secretary and the agency may not consent to any such 
     amendment, supersession, or modification that substantially 
     alters any outstanding obligations requiring continued 
     maintenance of the low-income character of any public housing 
     development and any such amendment, supersession, or 
     modification shall not be given effect.
       (f) Section 8 Project-Based Assistance.--
       (1) In general.--The provisions of the United States 
     Housing Act of 1937 (42 U.S.C. 1437 et seq.) shall remain in 
     effect after the effectiveness of the repeal under subsection 
     (b) with respect to all section 8 project-based assistance, 
     pursuant to existing and future contracts, except as 
     otherwise provided by this section.
       (2) Tenant selection preferences.--An owner of housing 
     assisted with section 8 project-based assistance shall give 
     preference, in the selection of tenants for units of such 
     projects that become available, according to any system of 
     local preferences established pursuant to section 1223 by the 
     public housing agency having jurisdiction for the area in 
     which such projects are located.
       (3) 1-year notification.--Paragraphs (9) and (10) of 
     section 8(c) of the United States Housing Act of 1937 (42 
     U.S.C. 1437f(c)) shall not be applicable to section 8 
     project-based assistance.
       (4) Lease terms.--Leases for dwelling units assisted with 
     section 8 project-based assistance shall comply with the 
     provisions of paragraphs (1) and (3) of section 1324 of this 
     Act and shall not be subject to the provisions of 8(d)(1)(B) 
     of the United States Housing Act of 1937.
       (5) Termination of tenancy.--Any termination of tenancy of 
     a resident of a dwelling unit assisted with section 8 
     project-based assistance shall comply with the provisions of 
     section 1324(2) and section 1325 of this Act and shall not be 
     subject to the provisions of section 8(d)(1)(B) of the United 
     States Housing Act of 1937.
       (6) Treatment of common areas.--The Secretary may not 
     provide any assistance amounts pursuant to an existing 
     contract for section 8 project-based assistance for a housing 
     project and may not enter into a new or renewal contract for 
     such assistance for a project unless the owner of the project 
     provides consent, to such local law enforcement agencies as 
     the Secretary determines appropriate, for law enforcement 
     officers of such agencies to enter common areas of the 
     project at any time and without advance notice upon a 
     determination of probable cause by such officers that 
     criminal activity is taking place in such areas.
       (7) Definition.--For purposes of this subsection, the term 
     ``section 8 project-based assistance'' means assistance under 
     any of the following programs:
       (A) The new construction or substantial rehabilitation 
     program under section 8(b)(2) of the United States Housing 
     Act of 1937 (as in effect before October 1, 1983).
       (B) The property disposition program under section 8(b) of 
     the United States Housing Act of 1937 (as in effect before 
     the effective date of the repeal under section 1601(b) of 
     this Act).
       (C) The loan management set-aside program under subsections 
     (b) and (v) of section 8 of such Act.
       (D) The project-based certificate program under section 
     8(d)(2) of such Act.
       (E) The moderate rehabilitation program under section 
     8(e)(2) of the United States Housing Act of 1937 (as in 
     effect before October 1, 1991).
       (F) The low-income housing preservation program under Low-
     Income Housing Preservation and Resident Homeownership Act of 
     1990 or the provisions of the Emergency Low Income Housing 
     Preservation Act of 1987 (as in effect before November 28, 
     1990).
       (G) Section 8 of the United States Housing Act of 1937 (as 
     in effect before the effective date of the repeal under 
     section 1601(b) of this Act), following conversion from 
     assistance under section 101 of the Housing and Urban 
     Development Act of 1965 or section 236(f)(2) of the National 
     Housing Act.
       (g) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act.

     SEC. 1602. OTHER REPEALS.

       (a) In General.--The following provisions of law are hereby 
     repealed:
       (1) Assisted housing allocation.--Section 213 of the 
     Housing and Community Development Act of 1974 (42 U.S.C. 
     1439).
       (2) Public housing rent waivers for police.--Section 519 of 
     the Cranston-Gonzalez National Affordable Housing Act (42 
     U.S.C. 1437a-1).
       (3) Treatment of certificate and voucher holders.--
     Subsection (c) of section 183 of the Housing and Community 
     Development Act of 1987 (42 U.S.C. 1437f note).
       (4) Excessive rent burden data.--Subsection (b) of section 
     550 of the Cranston-Gonzalez National Affordable Housing Act 
     (42 U.S.C. 1437f note).
       (5) Moving to opportunity for fair housing.--Section 152 of 
     the Housing and Community Development Act of 1992 (42 U.S.C. 
     1437f note).
       (6) Report regarding fair housing objectives.--Section 153 
     of the Housing and Community Development Act of 1992 (42 
     U.S.C. 1437f note).
       (7) Special projects for elderly or handicapped families.--
     Section 209 of the Housing and Community Development Act of 
     1974 (42 U.S.C. 1438).
       (8) Access to pha books.--Section 816 of the Housing Act of 
     1954 (42 U.S.C. 1435).
       (9) Miscellaneous provisions.--Subsections (b)(1) 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).
       (10) Payment for development managers.--Section 329A of the 
     Housing and Community Development Amendments of 1981 (42 
     U.S.C. 1437j-1).
       (11) Procurement of insurance by pha's.--In the item 
     relating to ``administrative provisions'' under the heading 
     ``Management and Administration'' in title II of the 
     Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     1991, the penultimate undesignated paragraph of such item 
     (Public Law 101-507; 104 Stat. 1369).
       (12) Public housing childhood development.--Section 222 of 
     the Housing and Urban-Rural Recovery Act of 1983 (12 U.S.C. 
     1701z-6 note).
       (13) Indian housing childhood development.--Section 518 of 
     the Cranston-Gonzalez National Affordable Housing Act (12 
     U.S.C. 1701z-6 note).
       (14) Public housing comprehensive transition 
     demonstration.--Section 126 of the Housing and Community 
     Development Act of 1987 (42 U.S.C. 1437f note).
       (15) Public housing one-stop perinatal services 
     demonstration.--Section 521 of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 1437t note).

[[Page H5629]]

       (16) Public housing mincs demonstration.--Section 522 of 
     the Cranston-Gonzalez National Affordable Housing Act (42 
     U.S.C. 1437f note).
       (17) Public housing energy efficiency demonstration.--
     Section 523 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 1437g note).
       (18) Omaha homeownership demonstration.--Section 132 of the 
     Housing and Community Development Act of 1992 (Public Law 
     102-550; 106 Stat. 3712).
       (19) Public and assisted housing youth sports programs.--
     Section 520 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 11903a).
       (20) Frost-leland provisions.--Section 415 of the 
     Department of Housing and Urban Development--Independent 
     Agencies Appropriations Act, 1988 (Public Law 100-202; 101 
     Stat. 1329-213); except that, notwithstanding any other 
     provision of law, beginning on the date of enactment of this 
     Act, the public housing projects described in section 415 of 
     such appropriations Act (as such section existed immediately 
     before the date of enactment of this Act) shall be eligible 
     for demolition--
       (A) under section 14 of the United States Housing Act of 
     1937 (as such section existed upon the enactment of this 
     Act); and
       (B) under section 9 of the United States Housing Act of 
     1937.
       (21) Multifamily financing.--The penultimate sentence of 
     section 302(b)(2) of the National Housing Act (12 U.S.C. 
     1717(b)(2)) and the penultimate sentence of section 305(a)(2) 
     of the Emergency Home Finance Act of 1970 (12 U.S.C. 
     1454(a)(2)).
       (22) Conflicts of interest.--Subsection (c) of section 326 
     of the Housing and Community Development Amendments of 1981 
     (42 U.S.C. 1437f note).
       (23) Conversion of public housing.--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) (enacted as section 101(e) of the 
     Omnibus Consolidated Rescissions and Appropriations Act of 
     1996 (Public Law 104-134; 110 Stat. 1321-279)).
       (b) Savings Provision.--Except to the extent otherwise 
     provided in this division--
       (1) the repeals made by subsection (a) shall not affect any 
     legally binding obligations entered into before the effective 
     date of this division; and
       (2) any funds or activities subject to a provision of law 
     repealed by subsection (a) shall continue to be governed by 
     the provision as in effect immediately before such repeal.

  Subtitle B--Other Provisions Relating to Public Housing and Rental 
                          Assistance Programs

     SEC. 1621. ALLOCATION OF ELDERLY HOUSING AMOUNTS.

       Section 202(l) of the Housing Act of 1959 (12 U.S.C. 
     1701q(l)) is amended by adding at the end the following new 
     paragraph:
       ``(4) Consideration in allocating assistance.--Assistance 
     under this section shall be allocated in a manner that 
     ensures that the awards of the assistance are made for 
     projects of sufficient size to accommodate facilities for 
     supportive services appropriate to the needs of frail elderly 
     residents.''.

     SEC. 1622. PET OWNERSHIP.

       Section 227 of the Housing and Urban-Rural Recovery Act of 
     1983 (12 U.S.C. 1701r-1) is amended to read as follows:

     ``SEC. 227. PET OWNERSHIP IN FEDERALLY ASSISTED RENTAL 
                   HOUSING.

       ``(a) Right of Ownership.--A resident of a dwelling unit in 
     federally assisted rental housing may own common household 
     pets or have 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 and 
     providing that the resident maintains the animals responsibly 
     and in compliance with applicable local and State public 
     health, animal control, and anticruelty laws. Such reasonable 
     requirements may include requiring payment of a nominal fee 
     and pet deposit by residents owning or having pets present, 
     to cover the operating costs to the project relating to the 
     presence of pets and to establish an escrow account for 
     additional such costs not otherwise covered, respectively. 
     Notwithstanding section 1225(d) of the Housing Opportunity 
     and Responsibility Act of 1997, a public housing agency may 
     not grant any exemption under such section from payment, in 
     whole or in part, of any fee or deposit required pursuant to 
     the preceding sentence.
       ``(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.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Federally assisted rental housing.--The term 
     `federally assisted rental housing' means any multifamily 
     rental housing project that is--
       ``(A) public housing (as such term is defined in section 
     1103 of the Housing Opportunity and Responsibility Act of 
     1997);
       ``(B) assisted with project-based assistance pursuant to 
     section 1601(f) of the Housing Opportunity and Responsibility 
     Act of 1997 or under section 8 of the United States Housing 
     Act of 1937 (as in effect before the effective date of the 
     repeal under section 1601(b) of the Housing Opportunity and 
     Responsibility Act of 1997);
       ``(C) assisted under section 202 of the Housing Act of 1959 
     (as amended by section 801 of the Cranston-Gonzalez National 
     Affordable Housing Act);
       ``(D) assisted under section 202 of the Housing Act of 1959 
     (as in effect before the enactment of the Cranston-Gonzalez 
     National Affordable Housing Act);
       ``(E) assisted under title V of the Housing Act of 1949; or
       ``(F) insured, assisted, or held by the Secretary or a 
     State or State agency under section 236 of the National 
     Housing 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 not later than the expiration of the 1-year period 
     beginning on the date of the enactment of the Housing 
     Opportunity and Responsibility Act of 1997 and 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. 1623. REVIEW OF DRUG ELIMINATION PROGRAM CONTRACTS.

       (a) Requirement.--The Secretary of Housing and Urban 
     Development 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 the 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 of Housing and Urban Development.
       (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 of Housing and Urban Development 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. 1624. AMENDMENTS TO PUBLIC AND ASSISTED HOUSING DRUG 
                   ELIMINATION ACT OF 1990.

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

           ``CHAPTER 2--COMMUNITY PARTNERSHIPS AGAINST CRIME

     ``SEC. 5121. SHORT TITLE.

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

     ``SEC. 5122. PURPOSES.

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

     ``SEC. 5123. AUTHORITY TO MAKE GRANTS.

       ``The Secretary of Housing and Urban Development may make 
     grants in accordance with the provisions of this chapter for 
     use in eliminating crime in and around public housing and 
     other federally assisted low-income housing projects to (1) 
     public housing agencies, and (2) private, for-profit and 
     nonprofit owners of federally assisted low-income housing.''.
       (b) Eligible Activities.--
       (1) In general.--Section 5124(a) of the Anti-Drug Abuse Act 
     of 1988 (42 U.S.C. 11903(a)) is amended--

[[Page H5630]]

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

     ``SEC. 5125. GRANT PROCEDURES.

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

[[Page H5631]]

     received a grant for such housing for the preceding fiscal 
     year under this subsection or under the provisions of this 
     chapter as in effect immediately before the date of the 
     enactment of the Housing Opportunity and Responsibility Act 
     of 1997.
       ``(5) Additional criteria for federally assisted low-income 
     housing.--In addition to the selection criteria under 
     paragraph (4), the Secretary may establish other criteria for 
     evaluating applications submitted by owners of federally 
     assisted low-income housing, except that such additional 
     criteria shall be designed only to reflect--
       ``(A) relevant differences between the financial resources 
     and other characteristics of public housing agencies and 
     owners of federally assisted low-income housing; or
       ``(B) relevant differences between the problem of crime in 
     public housing administered by such authorities and the 
     problem of crime in federally assisted low-income housing.''.
       (d) Definitions.--Section 5126 of the Anti-Drug Abuse Act 
     of 1988 (42 U.S.C. 11905) is amended--
       (1) by striking paragraphs (1) and (2);
       (2) in paragraph (4)(A), by striking ``section'' before 
     ``221(d)(4)'';
       (3) by redesignating paragraphs (3) and (4) (as so amended) 
     as paragraphs (1) and (2), respectively; and
       (4) by adding at the end the following new paragraph:
       ``(3) Public housing agency.--The term `public housing 
     agency' has the meaning given the term in section 1103 of the 
     Housing Opportunity and Responsibility Act of 1997.''.
       (e) Implementation.--Section 5127 of the Anti-Drug Abuse 
     Act of 1988 (42 U.S.C. 11906) is amended by striking 
     ``Cranston-Gonzalez National Affordable Housing Act'' and 
     inserting ``Housing Opportunity and Responsibility Act of 
     1997''.
       (f) Reports.--Section 5128 of the Anti-Drug Abuse Act of 
     1988 (42 U.S.C. 11907) is amended--
       (1) by striking ``drug-related crime in'' and inserting 
     ``crime in and around''; and
       (2) by striking ``described in section 5125(a)'' and 
     inserting ``for the grantee submitted under subsection (a) or 
     (b) of section 5125, as applicable''.
       (g) Funding and Program Sunset.--Chapter 2 of subtitle C of 
     title V of the Anti-Drug Abuse Act of 1988 is amended by 
     striking section 5130 (42 U.S.C. 11909) and inserting the 
     following new section:

     ``SEC. 5130. FUNDING.

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

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

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

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

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

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

  Subtitle C--Limitations Relating to Occupancy in Federally Assisted 
                                Housing

     SEC. 1641. SCREENING OF APPLICANTS.

       (a) Ineligibility Because of Eviction.--Any household or 
     member of a household evicted from federally assisted housing 
     (as such term is defined in section 1645) shall not be 
     eligible for federally assisted housing--
       (1) in the case of eviction by reason of drug-related 
     criminal activity, for a period of not less than 3 years that 
     begins on the date of such eviction, unless the evicted 
     member of the household successfully completes a 
     rehabilitation program; and
       (2) in the case of an eviction for other serious violations 
     of the terms or conditions of the lease, for a reasonable 
     period of time, as determined by the public housing agency or 
     owner of the federally assisted housing, as applicable.
     The requirements of paragraphs (1) and (2) may be waived if 
     the circumstances leading to eviction no longer exist.
       (b) Ineligibility of Illegal Drug Users and Alcohol 
     Users.--
       (1) In general.--Notwithstanding any other provision of 
     law, a public housing agency or an owner of federally 
     assisted housing, or both, as determined by the Secretary, 
     shall establish standards that prohibit admission to the 
     program or admission to federally assisted housing for any 
     household with a member--
       (A) who the public housing agency or owner determines is 
     engaging in the illegal use of a controlled substance; or
       (B) with respect to whom the public housing agency or owner 
     determines that it has reasonable cause to believe that such 
     household member's illegal use (or pattern of illegal use) of 
     a controlled substance, or abuse (or pattern of abuse) of 
     alcohol, would interfere with the health, safety, or right to 
     peaceful enjoyment of the premises by other residents.
       (2) 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 or an owner may consider whether such 
     household member--
       (A) has successfully completed an accredited drug or 
     alcohol rehabilitation program (as applicable) and is no 
     longer engaging in the illegal use of a controlled substance 
     or abuse of alcohol (as applicable);
       (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 an accredited drug or alcohol 
     rehabilitation program (as applicable) and is no longer 
     engaging in the illegal use of a controlled substance or 
     abuse of alcohol (as applicable).
       (c) 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 housing for any household that includes any individual 
     who is a sexually violent predator.
       (2) Sexually violent predator.--For purposes of this 
     subsection, the term ``sexually violent predator'' means an 
     individual who--
       (A) is a sexually violent predator (as such term is defined 
     in section 170101(a)(3) of such Act); 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 such Act.
       (d) Authority To Deny Admission to Criminal Offenders.--
     Except as provided in subsections (a), (b), and (c) and in 
     addition to any other authority to screen applicants, in 
     selecting among applicants for admission to the program or to 
     federally assisted housing, if the public housing agency or 
     owner of such housing (as applicable) determines that an 
     applicant or any member of the applicant's household is or 
     was, during a reasonable time preceding the date when the 
     applicant household would otherwise be selected for 
     admission, engaged in any criminal activity (including drug-
     related criminal activity), the public housing agency or 
     owner may--
       (1) deny such applicant admission to the program or to 
     federally assisted housing;
       (2) consider the applicant (for purposes of any waiting 
     list) as not having applied for the program or such housing; 
     and
       (3) after the expiration of the reasonable period beginning 
     upon such activity, require the applicant, as a condition of 
     admission to the program or to federally assisted housing, to 
     submit to the public housing agency or owner evidence 
     sufficient (as the Secretary shall by regulation provide) to 
     ensure that the individual or individuals in the applicant's 
     household who engaged in criminal activity for which denial 
     was made under paragraph (1) have not engaged in any criminal 
     activity during such reasonable period.
       (e) Authority To Require Access to Criminal Records.--A 
     public housing agency and an owner of federally assisted 
     housing may require, as a condition of providing admission to 
     the program or admission to or occupancy in federally 
     assisted housing, that each adult member of the household 
     provide a signed, written authorization for the public 
     housing agency to obtain the records described in section 
     1644(a) regarding such member of the household from the 
     National

[[Page H5632]]

     Crime Information Center, police departments, other law 
     enforcement agencies, and State registration agencies 
     referred to in such section. In the case of an owner of 
     federally assisted housing that is not a public housing 
     agency, the owner shall request the public housing agency 
     having jurisdiction over the area within which the housing is 
     located to obtain the records pursuant to section 1644.
       (f) Admission Based on Disability.--
       (1) In general.--Notwithstanding any other provision of 
     law, for purposes of determining eligibility for admission to 
     federally assisted housing, a person shall not be considered 
     to have a disability or a handicap solely because of the 
     prior or current illegal use of a controlled substance (as 
     defined in section 102 of the Controlled Substances Act) or 
     solely by reason of the prior or current use of alcohol.
       (2) Continued occupancy.--This subsection may not be 
     construed to prohibit the continued occupancy of any person 
     who is a resident in assisted housing on the effective date 
     of this division.

     SEC. 1642. 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 the agency or 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.

     SEC. 1643. LEASE REQUIREMENTS.

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

     SEC. 1644. AVAILABILITY OF CRIMINAL RECORDS FOR TENANT 
                   SCREENING AND EVICTION.

       (a) In General.--
       (1) Criminal conviction information.--Notwithstanding any 
     other provision of law other than paragraphs (3) and (4), 
     upon the request of a public housing agency, the National 
     Crime Information Center, a police department, and any other 
     law enforcement agency shall provide to the public housing 
     agency information regarding the criminal conviction records 
     of an adult applicant for, or tenants of, federally assisted 
     housing for purposes of applicant screening, lease 
     enforcement, and eviction, but only if the public housing 
     agency requests such information and presents to such Center, 
     department, or agency a written authorization, signed by such 
     applicant, for the release of such information to the public 
     housing agency or other owner of the federally assisted 
     housing.
       (2) Information regarding crimes against children and 
     sexually violent predators.--Notwithstanding any other 
     provision of law other than paragraphs (3) and (4), upon the 
     request of a public housing agency, the Federal Bureau of 
     Investigation, 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), and any local law 
     enforcement agency authorized by the State agency shall 
     provide to a public housing agency the information collected 
     under the national database established pursuant to section 
     170102 of such Act or such State registration program, as 
     applicable, regarding an adult applicant for, or tenant of, 
     federally assisted housing for purposes of applicant 
     screening, lease enforcement, and eviction, but only if the 
     public housing agency requests such information and presents 
     to such State registration agency or other local law 
     enforcement agency a written authorization, signed by such 
     applicant, for the release of such information to the public 
     housing agency or other owner of the federally assisted 
     housing.
       (3) Delayed effective date for owners other than pha's.--
     The provisions of paragraphs (1) and (2) authorizing 
     obtaining information for owners of federally assisted 
     housing other than public housing agencies shall not take 
     effect before--
       (A) the expiration of the 1-year period beginning on the 
     date of enactment of this Act; and
       (B) the Secretary and the Attorney General of the United 
     States have determined that access to such information is 
     feasible for such owners and have provided for the terms of 
     release of such information to owners.
       (4) Exception.--The information provided under paragraphs 
     (1), (2), and (3) shall include information regarding any 
     criminal conviction of a juvenile only to the extent that the 
     release of such information is authorized under the law of 
     the applicable State, tribe, or locality.
       (b) Confidentiality.--A public housing agency or owner 
     receiving information under this section may use such 
     information only for the purposes provided in this section 
     and such information may not be disclosed to any person who 
     is not an officer, employee, or authorized representative of 
     the agency or owner and who has a job-related need to have 
     access to the information in connection with admission of 
     applicants, eviction of tenants, or termination of 
     assistance. For judicial eviction proceedings, disclosures 
     may be made to the extent necessary. The Secretary shall, by 
     regulation, establish procedures necessary to ensure that 
     information provided under this section to a public housing 
     agency or owner is used, and confidentiality of such 
     information is maintained, as required under this section.
       (c) Opportunity to Dispute.--Before an adverse action is 
     taken with regard to assistance for federally assisted 
     housing on the basis of a criminal record (including on the 
     basis that an individual is a sexually violent predator, 
     pursuant to section 1641(c)), the public housing agency or 
     owner shall provide the tenant or applicant with a copy of 
     the criminal record and an opportunity to dispute the 
     accuracy and relevance of that record.
       (d) Fee.--A public housing agency may be charged a 
     reasonable fee for information provided under subsection (a). 
     A public housing agency may require an owner of federally 
     assisted housing (that is not a public housing agency) to pay 
     such fee for any information that the agency acquires for the 
     owner pursuant to section 1641(e) and subsection (a) of this 
     section.
       (e) Records Management.--Each public housing agency and 
     owner of federally assisted housing that receives criminal 
     record information pursuant to this section shall establish 
     and implement a system of records management that ensures 
     that any criminal record received by the agency or owner is--
       (1) maintained confidentially;
       (2) not misused or improperly disseminated; and
       (3) destroyed in a timely fashion, once the purpose for 
     which the record was requested has been accomplished.
       (f) Penalty.--Any person who knowingly and willfully 
     requests or obtains any information concerning an applicant 
     for, or tenant of, federally assisted housing pursuant to the 
     authority under this section under false pretenses, or any 
     person who knowingly and willfully discloses any such 
     information in any manner to any individual not entitled 
     under any law to receive it, shall be guilty of a misdemeanor 
     and fined not more than $5,000. The term ``person'' as used 
     in this subsection shall include an officer, employee, or 
     authorized representative of any public housing agency or 
     owner.
       (g) Civil Action.--Any applicant for, or tenant of, 
     federally assisted housing affected by (1) a negligent or 
     knowing disclosure of information referred to in this section 
     about such person by an officer, employee, or authorized 
     representative of any public housing agency or owner of 
     federally assisted housing, which disclosure is not 
     authorized by this section, or (2) any other negligent or 
     knowing action that is inconsistent with this section, may 
     bring a civil action for damages and such other relief as may 
     be appropriate against any public housing agency or owner 
     responsible for such unauthorized action. The district court 
     of the United States in the district in which the affected 
     applicant or tenant resides, in which such unauthorized 
     action occurred, or in which the officer, employee, or 
     representative alleged to be responsible for any such 
     unauthorized action resides, shall have jurisdiction in such 
     matters. Appropriate relief that may be ordered by such 
     district courts shall include reasonable attorney's fees and 
     other litigation costs.
       (h) Definition.--For purposes of this section, the term 
     ``adult'' means a person who is 18 years of age or older, or 
     who has been convicted of a crime as an adult under any 
     Federal, State, or tribal law.

     SEC. 1645. DEFINITIONS.

       For purposes of this subtitle, the following definitions 
     shall apply:
       (1) Federally assisted housing.--The term ``federally 
     assisted housing'' means a dwelling unit--
       (A) in public housing (as such term is defined in section 
     1102);
       (B) assisted with choice-based housing assistance under 
     title XIII;
       (C) in housing that is provided project-based assistance 
     under section 8 of the United States Housing Act of 1937 (as 
     in effect before the effective date of the repeal under 
     section 1601(b) of this Act) or pursuant to section 1601(f) 
     of this Act, including new construction and substantial 
     rehabilitation projects;

[[Page H5633]]

       (D) in 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);
       (E) in housing that is assisted under section 202 of the 
     Housing Act of 1959, as such section existed before the 
     enactment of the Cranston-Gonzalez National Affordable 
     Housing Act;
       (F) in housing that is assisted under section 811 of the 
     Cranston-Gonzalez National Affordable Housing Act;
       (G) in housing financed by a loan or mortgage insured under 
     section 221(d)(3) of the National Housing Act that bears 
     interest at a rate determined under the proviso of section 
     221(d)(5) of such Act;
       (H) in housing insured, assisted, or held by the Secretary 
     or a State or State agency under section 236 of the National 
     Housing Act;
       (I) in housing assisted under section 515 of the Housing 
     Act of 1949.
       (2) 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.

      TITLE XVII--AFFORDABLE HOUSING AND MISCELLANEOUS PROVISIONS

     SEC. 1701. RURAL HOUSING ASSISTANCE.

       The last sentence of section 520 of the Housing Act of 1949 
     (42 U.S.C. 1490) is amended by inserting before the period 
     the following: ``, and the city of Altus, Oklahoma, shall be 
     considered a rural area for purposes of this title until the 
     receipt of data from the decennial census in the year 2000''.

     SEC. 1702. TREATMENT OF OCCUPANCY STANDARDS.

       The Secretary of Housing and Urban Development shall not 
     directly or indirectly establish a national occupancy 
     standard.

     SEC. 1703. IMPLEMENTATION OF PLAN.

       (a) Implementation.--
       (1) In general.--Not later than 120 days after the date of 
     the enactment of this Act, the Secretary shall implement the 
     Ida Barbour Revitalization Plan of the City of Portsmouth, 
     Virginia, in a manner consistent with existing limitations 
     under law.
       (2) Waivers.--In carrying out paragraph (1), the Secretary 
     shall consider and make any waivers to existing regulations 
     and other requirements consistent with the plan described in 
     paragraph (1) to enable timely implementation of such plan, 
     except that generally applicable regulations and other 
     requirements governing the award of funding under programs 
     for which assistance is applied for in connection with such 
     plan shall apply.
       (b) Report.--
       (1) In general.--Not later than 1 year after the date of 
     the enactment of this Act and annually thereafter through the 
     year 2000, the city described in subsection (a)(1) shall 
     submit a report to the Secretary on progress in implementing 
     the plan described in that subsection.
       (2) Contents.--Each report submitted under this subsection 
     shall include--
       (A) quantifiable measures revealing the increase in 
     homeowners, employment, tax base, voucher allocation, 
     leverage ratio of funds, impact on and compliance with the 
     consolidated plan of the city;
       (B) identification of regulatory and statutory obstacles 
     that--
       (i) have caused or are causing unnecessary delays in the 
     successful implementation of the consolidated plan; or
       (ii) are contributing to unnecessary costs associated with 
     the revitalization; and
       (C) any other information that the Secretary considers to 
     be appropriate.

     SEC. 1704. INCOME ELIGIBILITY FOR HOME AND CDBG PROGRAMS.

       (a) Home Investment Partnerships.--The Cranston-Gonzalez 
     National Affordable Housing Act is amended as follows:
       (1) Definitions.--In section 104(10) (42 U.S.C. 
     12704(10))--
       (A) by striking ``income ceilings higher or lower'' and 
     inserting ``an income ceiling higher'';
       (B) by striking ``variations are'' and inserting 
     ``variation is''; and
       (C) by striking ``high or''.
       (2) Income targeting.--In section 214(1)(A) (42 U.S.C. 
     12744(1)(A))--
       (A) by striking ``income ceilings higher or lower'' and 
     inserting ``an income ceiling higher'';
       (B) by striking ``variations are'' and inserting 
     ``variation is''; and
       (C) by striking ``high or''.
       (3) Rent limits.--In section 215(a)(1)(A) (42 U.S.C. 
     12745(a)(1)(A))--
       (A) by striking ``income ceilings higher or lower'' and 
     inserting ``an income ceiling higher'';
       (B) by striking ``variations are'' and inserting 
     ``variation is''; and
       (C) by striking ``high or''.
       (b) CDBG.--Section 102(a)(20) of the Housing and Community 
     Development Act of 1974 (42 U.S.C. 5302(a)(20)) is amended by 
     striking subparagraph (B) and inserting the following new 
     subparagraph:
       ``(B) The Secretary may--
       ``(i) with respect to any reference in subparagraph (A) to 
     50 percent of the median income of the area involved, 
     establish percentages of median income for any area that are 
     higher or lower than 50 percent if the Secretary finds such 
     variations to be necessary because of unusually high or low 
     family incomes in such area; and
       ``(ii) with respect to any reference in subparagraph (A) to 
     80 percent of the median income of the area involved, 
     establish a percentage of median income for any area that is 
     higher than 80 percent if the Secretary finds such variation 
     to be necessary because of unusually low family incomes in 
     such area.''.

     SEC. 1705. PROHIBITION OF USE OF CDBG GRANTS 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 new subsection:
       ``(h) Prohibition of 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 
     for any activity (including any infrastructure improvement) 
     that is intended, or is likely, to facilitate the relocation 
     or expansion of any industrial or commercial plant, facility, 
     or operation, from one area to another area, if the 
     relocation or expansion will result in a loss of employment 
     in the area from which the relocation or expansion occurs.''.

     SEC. 1706. REGIONAL COOPERATION UNDER CDBG ECONOMIC 
                   DEVELOPMENT INITIATIVE.

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

     SEC. 1707. USE OF AMERICAN PRODUCTS.

       (a) Purchase of American-Made Equipment and Products.--It 
     is the sense of the Congress that, to the greatest extent 
     practicable, all equipment and products purchased with funds 
     made available in this division should be American made.
       (b) Notice Requirement.--In providing financial assistance 
     to, or entering into any contract with, any entity using 
     funds made available in this division, the head of each 
     Federal agency, to the greatest extent practicable, shall 
     provide to such entity a notice describing the statement made 
     in subsection (a) by the Congress.

     SEC. 1708. CONSULTATION WITH AFFECTED AREAS IN SETTLEMENT OF 
                   LITIGATION.

       In negotiating any settlement of, or consent decree for, 
     any litigation regarding public housing or rental assistance 
     (under title XIII of this Act or the United States Housing 
     Act of 1937, as in effect before the effective date of the 
     repeal under section 1601(b) of this Act) that involves the 
     Secretary and any public housing agency or any unit of 
     general local government, the Secretary shall consult with 
     any units of general local government and public housing 
     agencies having jurisdictions that are adjacent to the 
     jurisdiction of the public housing agency involved.

     SEC. 1709. TREATMENT OF PHA 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. 1710. USE OF ASSISTED HOUSING BY ALIENS.

       Section 214 of the Housing and Community Development Act of 
     1980 (42 U.S.C. 1436a) is amended--
       (1) in subsection (b)(2), by striking ``Secretary of 
     Housing and Urban Development'' and inserting ``applicable 
     Secretary'';
       (2) in subsection (c)(1)(B), by moving clauses (ii) and 
     (iii) 2 ems to the left;
       (3) in subsection (d)--
       (A) in paragraph (1)(A)--
       (i) by striking ``Secretary of Housing and Urban 
     Development'' and inserting ``applicable Secretary''; and
       (ii) by striking ``the Secretary'' and inserting ``the 
     applicable Secretary'';
       (B) in paragraph (2), in the matter following subparagraph 
     (B)--

[[Page H5634]]

       (i) by inserting ``applicable'' before ``Secretary''; and
       (ii) by moving such matter (as so amended by clause (i)) 2 
     ems to the right;
       (C) in paragraph (4)(B)(ii), by inserting ``applicable'' 
     before ``Secretary'';
       (D) in paragraph (5), by striking ``the Secretary'' and 
     inserting ``the applicable Secretary''; and
       (E) in paragraph (6), by inserting ``applicable'' before 
     ``Secretary'';
       (4) in subsection (h) (as added by section 576 of the 
     Illegal Immigration Reform and Immigrant Responsibility Act 
     of 1996 (division C of Public Law 104-208))--
       (A) in paragraph (1)--
       (i) by striking ``Except in the case of an election under 
     paragraph (2)(A), no'' and inserting ``No'';
       (ii) by striking ``this section'' and inserting 
     ``subsection (d)''; and
       (iii) by inserting ``applicable'' before ``Secretary''; and
       (B) in paragraph (2)--
       (i) by striking subparagraph (A) and inserting the 
     following new subparagraph:
       ``(A) may, notwithstanding paragraph (1) of this 
     subsection, elect not to affirmatively establish and verify 
     eligibility before providing financial assistance''; and
       (ii) in subparagraph (B), by striking ``in complying with 
     this section'' and inserting ``in carrying out subsection 
     (d)''; and
       (5) by redesignating subsection (h) (as amended by 
     paragraph (4)) as subsection (i).

     SEC. 1711. PROTECTION OF SENIOR HOMEOWNERS UNDER REVERSE 
                   MORTGAGE PROGRAM.

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

     SEC. 1712. CONVERSION OF SECTION 8 TENANT-BASED ASSISTANCE TO 
                   PROJECT-BASED ASSISTANCE IN THE BOROUGH OF 
                   TAMAQUA.

       For the Tamaqua Highrise project in the Borough of Tamaqua, 
     Pennsylvania, the Secretary of Housing and Urban Development 
     may require the public housing agency to convert the tenant-
     based assistance under section 8 of the United States Housing 
     Act of 1937 to project-based rental assistance under section 
     8(d)(2) of such Act, notwithstanding the requirement for 
     rehabilitation or the percentage limitations under section 
     8(d)(2). The tenant-based assistance covered by the preceding 
     sentance shall be the assistance for families who are 
     residing in the project on the date of enactment of this Act 
     and who initially received their assistance in connection 
     with the conversion of the section 23 leased housing contract 
     for the project to tenant-based assistance under section 8 of 
     such Act. The Secretary may not take action under this 
     section before the expiration of the 30-day period beginning 
     upon the submission of a report to the Congress regarding the 
     proposed action under this section.

     SEC. 1713. HOUSING COUNSELING.

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

     SEC. 1714. TRANSFER OF SURPLUS REAL PROPERTY FOR PROVIDING 
                   HOUSING FOR LOW- AND MODERATE-INCOME FAMILIES.

       (a) In General.--Notwithstanding any other provision of law 
     (including the Federal Property and Administrative Services 
     Act of 1949), the property known as 252 Seventh Avenue in New 
     York County, New York is authorized to be conveyed in its 
     existing condition under a public benefit discount to a non-
     profit organization that has among its purposes providing 
     housing for low-income individuals or families provided, that 
     such property is determined by the Administrator of General 
     Services to be surplus to the needs of the Government and 
     provided it is determined by the Secretary of Housing and 
     Urban Development that such property will be used by such 
     non-profit organization to provide housing for low- and 
     moderate-income families or individuals.
       (b)(1) Public Benefit Discount.--The amount of the public 
     benefit discount available under this section shall be 75 
     percent of the estimated fair market value of the property, 
     except that the Secretary may discount by a greater 
     percentage if the Secretary, in consultation with the 
     Administrator, determines that a higher percentage is 
     justified due to any benefit which will accrue to the United 
     States from the use of such property for the public purpose 
     of providing low- and moderate-income housing.
       (2) Reverter.--The Administrator shall require that the 
     property be used for at least 30 years for the public purpose 
     for which it was originally conveyed, or such longer period 
     of time as the Administrator feels necessary, to protect the 
     Federal interest and to promote the public purpose. If this 
     condition is not met, the property shall revert to the United 
     States.
       (3) Determination of Fair Market Value.--The Administrator 
     shall determine estimated fair market value in accordance 
     with Federal appraisal standards and procedures.
       (4) Deposit of Proceeds.--The Administrator of General 
     Services shall deposit any proceeds received under this 
     subsection in the special account established pursuant to 
     section 204(h)(2) of the Federal Property and Administrative 
     Services Act of 1949.
       (5) Additional Terms and Conditions.--The Administrator may 
     require such additional terms and conditions in connection 
     with the conveyance under subsection (a) as the Administrator 
     considers appropriate to protect the interests of the United 
     States and to accomplish a public purpose.

     SEC. 1715. EFFECTIVE DATE.

       This title and the amendments made by this title shall take 
     effect on the date of the enactment of this Act.

                               H.R. 4194

                       Offered By: Mr. Greenwood

       Amendment No. 13. Page 58, line 25, insert before the colon 
     the following: ``, except that this proviso shall not apply 
     to any action authorized by law''.

                               H.R. 4194

                  Offered By: Ms. Jackson-Lee of Texas

       Amendment No. 14. Page 17, line 25, insert ``(increased by 
     $183,000,000)'' after ``$10,240,542,030''.
       Page 20, line 22, insert ``(increased by $183,000,000)'' 
     after ``$100,000,000''.
       Page 24, line 2, insert ``(decreased by $183,000,000)'' 
     after ``$3,000,000,000''.

                               H.R. 4194

                         Offered By: Mr. Riggs

       Amendment No. 15. At the end of the bill, insert after the 
     last section (preceding the short title) the following new 
     section:
       Sec. ____. None of the funds appropriated by this Act may 
     be provided to the City of San Francisco because the City 
     requires, as a condition for an organization to contract 
     with, or receive a grant from, the City, that the 
     organization provide health care benefits for unmarried, 
     domestic partners of individuals who are provided such 
     benefits on the basis of their employment by or other 
     relationship with the organization.

                               H.R. 4194

                        Offered By: Mrs. Roukema

       Amendment No. 16. Page 52, after line 2, insert the 
     following new section:


    section 8 contract renewals for moderate rehabilitation projects

       Sec. 210. Section 524(a)(2) of the Multifamily Assisted 
     Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f 
     note) is amended, in clause (iii) of the matter that precedes 
     subparagraph (A), by striking ``the base rent'' and all that 
     follows through ``Secretary'' and inserting the following: 
     ``the aggregate current contract rents, adjusted by an annual 
     operating cost adjustment factor established by the 
     Secretary, not to exceed the aggregate published fair market 
     rent for the market area for the unit mix in the project''.

                               H.R. 4194

                        Offered By: Mr. Sanford

       Amendment No. 17: Page 76, line 24, strike 
     ``2,745,000,000'' and insert ``2,545,700,000.''

[[Page H5635]]

       Page 90, line 18 strike ``, and $70,000,000 is appropriated 
     to the National Science Foundation, `Research and related 
     activities'.'' and insert ``.''

                               H.R. 4194

                         Offered By: Mr. Stokes

       Amendment No. 18: Page 18, line 14, after the dollar 
     amount, insert the following: ``(reduced by $97,000,000)''.
       Page 20, line 22, after the dollar amount, insert the 
     following: ``(increased by $97,000,000)''.

                               H.R. 4194

                         Offered By: Mr. Stokes

       Amendment No. 19: Page 61, line 13, strike the colon and 
     all that follows through ``expenses'' on line 20.