[Congressional Record Volume 154, Number 35 (Monday, March 3, 2008)]
[Senate]
[Pages S1469-S1482]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DODD (for himself, Mr. Schumer, Mr. Reed, Mr. Menendez, 
        and Mr. Brown):
  S. 2684. A bill to reform the housing choice voucher program under 
section 8 of the United States Housing Act of 1937; to the Committee on 
Banking, Housing, and Urban Affairs.
  Mr. DODD. Mr. President, I come to the floor today to introduce with 
my colleagues Senators Schumer, Reed, Menendez and Brown, the Section 8 
Voucher Reform Act of 2008, a bill to improve our Nation's largest 
initiative to assist low-income families afford housing. Section 8 
housing vouchers help 2 million American families--including many 
children, seniors and people with disabilities--afford safe, decent and 
stable housing.
  The current crisis in the U.S. housing market is having ripple 
effects throughout our Nation. Families are losing their homes--both 
homeowners and renters whose properties are being foreclosed upon. 
Those who can hold onto their homes have seen significant losses in 
equity, and many owe more on their mortgage than the value of their 
home. This crisis in the housing sector is causing a significant 
slowdown in our economy, and housing assistance will need to be 
strengthened so families have access to safe, affordable housing.
  Without housing assistance, many families would lack the stability to 
find and retain employment, and many children would be unable to 
adequately perform in school because of multiple moves or health 
problems resulting from inadequate housing.
  Though millions of families are assisted through housing programs, 
the need for additional housing opportunities is acute. The Joint 
Center for Housing Studies found that last year the number of severely 
cost-burdened households, those that pay more than half of their income 
towards rent, jumped by 1.2 million to a total of 17 million. This is 
one in seven U.S. households that struggle to afford housing without 
foregoing other basic needs.
  Housing vouchers are a successful way to provide stability for 
millions of Americans. Through this public-private partnership, 
vouchers allow low-
income, working Americans to live closer to employment and educational 
opportunities, and nearer to social and familial networks and support.
  While housing vouchers are a critical tool, the program needs to be 
updated

[[Page S1470]]

so that additional families can benefit, and so that taxpayer dollars 
are spent more efficiently.
  The voucher reform bill that I am introducing today will help attract 
additional private landlords, reduce administrative burdens, and help 
more families achieve self-sufficiency.
  This bill creates a stable and efficient formula for allocating 
voucher funds so that families do not lose their housing. Under this 
formula, housing agencies are encouraged to lower the costs per 
voucher, helping to create efficiencies in the program and allowing 
more people to access needed housing opportunities.
  The bill encourages employment by allowing voucher holders to keep 
more of their earnings, while ensuring that they pay fair rents. 
Systematic funding is provided for Family Self-Sufficiency coordinators 
so that more families can access this successful program aimed at 
increasing earnings and saving for homeownership.
  The bill authorizes 20,000 additional incremental housing vouchers to 
help meet the great and growing demand for assistance from low-income 
working families, seniors, and people with disabilities.
  Under this bill, administrative burdens are eased, so that housing 
agencies spend less time and funding on paperwork, and more time and 
funding on assisting families in need. To more effectively use program 
resources, the bill requires unit inspections every 2 years instead of 
annually. While the bill retains the requirement that tenants pay 30 
percent of their income towards rent, it streamlines and standardizes 
the calculation of income so that housing agencies can rely on 
standard, as opposed to individualized, income deductions.
  This bill will greatly improve the voucher program, and I am pleased 
to be sponsoring this legislation. It has support from more than 80 
local and national groups, including the Lawyers Committee for Civil 
Rights Under Law, the Paralyzed Veterans of America, and the National 
Alliance to End Homelessness.
  This is a strong and needed bill, and I urge my colleagues to support 
our efforts to provide additional affordable housing opportunities to 
low-income families all across our Nation.
  Mr. President, I ask unanimous consent that the text of the bill, a 
list of supporters, and a section-by-section analysis be printed in the 
Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                S. 2684

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Section 8 
     Voucher Reform Act of 2008''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Inspection of dwelling units.
Sec. 3. Rent reform and income reviews.
Sec. 4. Eligibility for assistance based on assets and income.
Sec. 5. Targeting assistance to low-income working families.
Sec. 6. Voucher renewal funding.
Sec. 7. Administrative fees.
Sec. 8. Homeownership.
Sec. 9. Performance assessments.
Sec. 10. PHA project-based assistance.
Sec. 11. Rent burdens.
Sec. 12. Establishment of fair market rent.
Sec. 13. Screening of applicants.
Sec. 14. Enhanced vouchers.
Sec. 15. Project-based preservation vouchers.
Sec. 16. Demonstration program waiver authority.
Sec. 17. Study to identify obstacles to using vouchers in federally 
              subsidized housing projects.
Sec. 18. Collection of data on tenants in projects receiving tax 
              credits.
Sec. 19. Agency authority for utility payments in certain 
              circumstances.
Sec. 20. Access to HUD programs for persons with limited English 
              proficiency.
Sec. 21. Authorization of appropriations.
Sec. 22. Effective date.

     SEC. 2. INSPECTION OF DWELLING UNITS.

       (a) Inspection of Units by PHA's.--Section 8(o)(8) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437f(o)(8)) is 
     amended--
       (1) by striking subparagraph (A) and inserting the 
     following new subparagraph:
       ``(A) Initial inspection.--
       ``(i) In general.--For each dwelling unit for which a 
     housing assistance payment contract is established under this 
     subsection, the public housing agency (or other entity 
     pursuant to paragraph (11)) shall inspect the unit before any 
     assistance payment is made to determine whether the dwelling 
     unit meets the housing quality standards under subparagraph 
     (B), except as provided in clause (ii) or (iii) of this 
     subparagraph.
       ``(ii) Correction of non-life threatening conditions.--In 
     the case of any dwelling unit that is determined, pursuant to 
     an inspection under clause (i), not to meet the housing 
     quality standards under subparagraph (B), assistance payments 
     may be made for the unit notwithstanding subparagraph (C) if 
     failure to meet such standards is a result only of non-life 
     threatening conditions. A public housing agency making 
     assistance payments pursuant to this clause for a dwelling 
     unit shall, 30 days after the beginning of the period for 
     which such payments are made, suspend any assistance payments 
     for the unit if any deficiency resulting in noncompliance 
     with the housing quality standards has not been corrected by 
     such time, and may not resume such payments until each such 
     deficiency has been corrected.
       ``(iii) Projects receiving certain federal housing 
     subsidies.--In the case of any property that within the 
     previous 12 months has been determined to meet Federal 
     housing quality and safety standards under any Federal 
     housing program inspection standard equivalent to the 
     standards under the program under this subsection, including 
     the program under section 42 of the Internal Revenue Code of 
     1986 or under subtitle A of title II of the Cranston Gonzalez 
     National Affordable Housing Act, a public housing agency 
     may--

       ``(I) authorize occupancy before the inspection under 
     clause (i) has been completed; and
       ``(II) make assistance payments retroactive to the 
     beginning of the lease term after the unit has been 
     determined pursuant to an inspection under clause (i) to meet 
     the housing quality standards under subparagraph (B), 
     provided that such inspection is conducted pursuant to the 
     requirements of subparagraph (C).'';

       (2) by striking subparagraph (D) and inserting the 
     following new subparagraph:
       ``(D) Biennial inspections.--
       ``(i) Requirement.--Each public housing agency providing 
     assistance under this subsection (or other entity, as 
     provided in paragraph (11)) shall make, for each assisted 
     dwelling unit, inspections not less than biennially during 
     the term of the housing assistance payments contract for the 
     unit to determine whether the unit is maintained in 
     accordance with the requirements under subparagraph (A). The 
     agency (or other entity) 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 5(h).
       ``(ii) Sufficient inspection.--An inspection of a property 
     shall be sufficient to comply with the inspection requirement 
     under clause (i) if--

       ``(I) the inspection was conducted pursuant to requirements 
     under a Federal, State, or local housing assistance program 
     (including the HOME Investment Partnerships Program under 
     title II of the Cranston-Gonzalez National Affordable Housing 
     Act (42 U.S.C. 12721 et seq.) or the low-income housing tax 
     credit under section 42 of the Internal Revenue Code of 
     1986); and
       ``(II) pursuant to such inspection, the property was 
     determined to meet the standards or requirements regarding 
     housing quality or safety applicable to units assisted under 
     such program, and if a non-Federal standard was used, the 
     public housing agency has certified to the Secretary that 
     such standards or requirements provide the same protection to 
     occupants of dwelling units meeting such standards or 
     requirements as, or greater protection than, the housing 
     quality standards under subparagraph (B).''; and

       (3) by adding at the end the following new subparagraph:
       ``(F) Interim inspections.--Upon notification by a family 
     on whose behalf tenant-based assistance is provided under 
     this subsection, that the dwelling unit for which such 
     assistance is provided does not comply with housing quality 
     standards under subparagraph (B), the public housing agency 
     shall inspect the dwelling unit--
       ``(i) in the case of a life threatening condition, within 
     24 hours of such notice; and
       ``(ii) in the case of any non-life threatening condition, 
     within 15 days of such notice.
       ``(G) Enforcement of housing quality standards.--
       ``(i) Determination of noncompliance.--A dwelling unit that 
     is covered by a housing assistance payments contract under 
     this subsection shall be considered, for purposes of this 
     subparagraph, to be in noncompliance with the housing quality 
     standards under subparagraph (B) if--

       ``(I) the public housing agency or an inspector authorized 
     by the State or unit of local government determines upon 
     inspection of the unit that the unit fails to comply with 
     such standards;
       ``(II) the agency or inspector notifies the owner of the 
     unit in writing of such failure to comply; and
       ``(III) the failure to comply is not corrected--

       ``(aa) in the case of any such failure that is a result of 
     a life threatening condition, within 24 hours after receipt 
     of such notice; and
       ``(bb) in the case of any failure that is a result of a 
     non-life threatening condition, within 30 days after 
     provision of such notice,

[[Page S1471]]

     or such other reasonable period as the public housing agency 
     may establish.
       ``(ii) Abatement of assistance.--

       ``(I) In general.--A public housing agency providing 
     assistance under this subsection shall abate such assistance 
     with respect to any assisted dwelling unit that is determined 
     to be in noncompliance with the housing quality standards 
     under subparagraph (B). Upon a showing by the owner of the 
     unit that sufficient repairs to the unit have been completed 
     so that the unit complies with such housing quality 
     standards, the public housing agency may recommence payment 
     of such assistance.
       ``(II) Use of abated assistance to pay for repairs.--The 
     public housing agency may use any assistance amounts abated 
     pursuant to subclause (I) to make repairs or to contract for 
     such repairs for life-threatening conditions, except that a 
     contract to make repairs may not be entered into with the 
     inspector for the dwelling unit.

       ``(iii) Protection of tenants.--If a public housing agency 
     providing assistance under this subsection abates rental 
     assistance payments under clause (ii), the public housing 
     agency shall--

       ``(I) notify the tenant--

       ``(aa) when such abatement begins; and
       ``(bb) at the start of the abatement period that if the 
     unit is not brought into compliance within 120 days, the 
     tenant will have to move; and

       ``(II) issue the tenant the necessary forms to allow the 
     tenant to move with their voucher to another housing unit; 
     and
       ``(III) use funds that otherwise would have gone to pay the 
     rental amount, for the reasonable moving expenses or security 
     deposit costs of the tenant.

       ``(iv) Right of the tenant to terminate tenancy.--During 
     any period that housing assistance payments are abated with 
     respect to any assisted dwelling unit pursuant to this 
     subparagraph, the tenant of such dwelling may terminate his 
     or her tenancy without penalty by notifying the owner of the 
     dwelling unit.
       ``(v) Limitation on authority of an owner.--An owner of a 
     dwelling unit that is considered to be in noncompliance with 
     the housing quality standards under subparagraph (B) may not 
     terminate the tenancy of a tenant, or refuse to renew a lease 
     for such unit, as a result of an abatement order carried out 
     by a public housing agency under clause (ii).
       ``(vi) Termination of lease or assistance payments 
     contracts.--If a public housing agency providing assistance 
     under this subsection abates rental assistance payments under 
     clause (ii) and the owner of the unit does not correct the 
     noncompliance within 120 days after the effective date of the 
     determination of noncompliance under clause (i), the public 
     housing agency shall terminate the housing assistance payment 
     contract subject to clause (vii). The termination of the 
     housing assistance payment contract shall terminate the lease 
     agreement.
       ``(vii) Relocation of tenants.--

       ``(I) 120-day period to relocate.--The public housing 
     agency shall provide to the individual or family residing in 
     any unit whose lease is terminated under clause (vi) at least 
     120 days beginning at the start of the abatement period to 
     lease a new residence with tenant-based assistance under this 
     paragraph.
       ``(II) Preference in case of relocation hardship.--If the 
     individual or family residing in any unit whose lease is 
     terminated under clause (vi) is unable to lease a new 
     residence pursuant to subclause (I), the public housing 
     agency shall provide, at the option of the individual or 
     family--

       ``(aa) additional search time to such individual or family; 
     or
       ``(bb) preference for occupancy in a public housing unit 
     owned or operated by the public housing agency.

       ``(III) Provision of reasonable relocation assistance.--The 
     public housing agency shall provide reasonable assistance to 
     each individual or family residing in any unit whose lease is 
     terminated under clause (vi) in finding a new residence, 
     including the use of up to 2 months of any assistance abated 
     pursuant to clause (ii) for relocation expenses, including 
     moving expenses and security deposits. The public housing 
     agency may require that an individual or family receiving 
     assistance for a security deposit, remit, to the extent of 
     such assistance, the amount of any security deposit refunded 
     by the owner of the unit for which the lease was terminated.

       ``(viii) Tenant caused damages.--If a public housing agency 
     determines that the noncompliance of a dwelling unit was 
     caused by a tenant, member of the tenant's family, or a guest 
     of the tenant, the public housing agency may waive the 
     applicability of this subparagraph.
       ``(ix) Treatment of certain abatement assistance.--
     Assistance amounts abated and used to make repairs or to 
     contract for such repairs for life-threatening conditions 
     pursuant to clause (ii)(II) or used for relocation assistance 
     pursuant to clause (viii)(iv) shall be treated as costs which 
     shall be considered in determining the allocation of renewal 
     funding under subsection (dd)(2).''.
       (b) Leasing of Units Owned by PHA's.--Section 8(o)(11) of 
     the United States Housing Act of 1937 (42 U.S.C. 
     1437f(o)(11)) is amended by striking ``the Secretary shall 
     require the unit of general local government or another 
     entity approved by the Secretary,'' and inserting ``the 
     public housing agency shall arrange for a third party''.

     SEC. 3. RENT REFORM AND INCOME REVIEWS.

       (a) Rent for Public Housing and Section 8 Programs.--
     Section 3 of the United States Housing Act of 1937 (42 U.S.C. 
     1437a(a)) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1) by inserting ``Low-income occupancy 
     requirement and rental payments.--'' after ``(1)''; and
       (B) by adding at the end the following new paragraphs:
       ``(6) Reviews of family income.--
       ``(A) Frequency.--Reviews of family income for purposes of 
     this section--
       ``(i) shall be made in the case of all families, upon the 
     initial provision of housing assistance for the family;
       ``(ii) shall be made annually thereafter, except as 
     provided in subparagraph (B)(i);
       ``(iii) shall be made upon the request of the family, at 
     any time the income or deductions (under subsection (b)(5)) 
     of the family change by an amount that is estimated to result 
     in a decrease of $1,000 (or such lower amount as the public 
     housing agency or owner may, at the option of the agency or 
     owner, establish) or more in annual adjusted income;
       ``(iv) shall be made at any time the income or deductions 
     (under subsection (b)(5)) of the family change by an amount 
     that is estimated to result in an increase of $1,000 or more 
     in annual adjusted income, except that any increase in the 
     earned income of a family shall not be considered for 
     purposes of this clause (except that earned income may be 
     considered if the increase corresponds to previous decreases 
     under clause (iii)), except that a public housing agency or 
     owner may elect not to conduct such review in the last 3 
     months of a certification period; and
       ``(v) may be made, in the discretion of the public housing 
     agency, when the income of a family, including earned income, 
     changes in an amount that is less than the amounts specified 
     in clause (iii) or (iv), if the amount so specified for 
     increases is not lower than the amount specified for 
     decreases.
       ``(B) Fixed-income families.--
       ``(i) Self certification and 3-year review.--In the case of 
     any family described in clause (ii), after the initial review 
     of the family's income pursuant to subparagraph (A)(i), the 
     public housing agency or owner shall not be required to 
     conduct a review of the family's income pursuant to 
     subparagraph (A)(ii) for any year for which such family 
     certifies, in accordance with such requirements as the 
     Secretary shall establish, that the income of the family 
     meets the requirements of clause (ii) of this subparagraph, 
     except that the public housing agency or owner shall conduct 
     a review of each such family's income not less than once 
     every 3 years.
       ``(ii) Eligible families.--A family described in this 
     clause is a family who has an income, as of the most recent 
     review pursuant to subparagraph (A) or clause (i) of this 
     subparagraph, of which 90 percent or more consists of fixed 
     income, as such term is defined in clause (iii).
       ``(iii) Fixed income.--For purposes of this subparagraph, 
     the term `fixed income' includes income from--

       ``(I) the supplemental security income program under title 
     XVI of the Social Security Act, including supplementary 
     payments pursuant to an agreement for Federal administration 
     under section 1616(a) of the Social Security Act and payments 
     pursuant to an agreement entered into under section 212(b) of 
     Public Law 93-66;
       ``(II) Social Security payments;
       ``(III) Federal, State, local and private pension plans; 
     and
       ``(IV) other periodic payments received from annuities, 
     insurance policies, retirement funds, disability or death 
     benefits, and other similar types of periodic receipts.

       ``(C) In general.--Reviews of family income for purposes of 
     this section shall be subject to the provisions of section 
     904 of the Stewart B. McKinney Homeless Assistance Amendments 
     Act of 1988.
       ``(7) Calculation of income.--
       ``(A) Use of prior year's or anticipated income.--In 
     determining the income of a family for purposes of paragraph 
     (6)(A)(ii) or (6)(B)(i), a public housing agency or owner 
     shall use the income of the family as determined by the 
     agency or owner for the preceding year. In determining the 
     income of a family under clauses (i), (iii), (iv), or (v) of 
     paragraph (6)(A) a public housing agency or owner shall use 
     the anticipated income of the family as estimated by the 
     agency or owner for the coming year.
       ``(B) Inflationary adjustment for fixed income families.--
     If, for any year, a public housing agency or owner determines 
     the income for any family described in paragraph (6)(B)(ii), 
     based on a review of the income of the family conducted 
     during a preceding year, such income shall be adjusted by 
     applying an inflationary factor as the Secretary shall, by 
     regulation, establish.
       ``(C) Safe harbor.--A public housing agency or owner may, 
     to the extent such information is available to the public 
     housing agency or owner, determine the family's income for 
     purposes of this section based on timely income 
     determinations made for purposes of other means-tested 
     Federal public assistance programs (including the program for 
     block grants to States for temporary assistance for needy 
     families under part A of title IV of the Social Security Act, 
     a program for Medicaid assistance under a State plan approved 
     under title XIX of the Social Security Act, and the Food 
     Stamp Program

[[Page S1472]]

     as defined in section 3(h) of the Food Stamp Act of 1977). 
     The Secretary shall work with other appropriate Federal 
     agencies to develop procedures to enable public housing 
     agencies and owners to have access to such income 
     determinations made by other Federal programs.
       ``(D) PHA and owner compliance.--A public housing agency or 
     owner may not be considered to fail to comply with this 
     paragraph or paragraph (6) due solely to any de minimis 
     errors made by the agency or owner in calculating family 
     incomes.'';
       (2) by striking subsections (d) and (e); and
       (3) by redesignating subsection (f) as subsection (d).
       (b) Income.--Section 3(b) of the United States Housing Act 
     of 1937 (42 U.S.C. 1437a(b)) is amended--
       (1) by striking paragraph (4) and inserting the following 
     new paragraph:
       ``(4) Income.--The term `income' means, with respect to a 
     family, income received from all sources by each member of 
     the household who is 18 years of age or older or is the head 
     of household or spouse of the head of the household, plus 
     unearned income by or on behalf of each dependent who is less 
     than 18 years of age, as determined in accordance with 
     criteria prescribed by the Secretary, in consultation with 
     the Secretary of Agriculture, subject to the following 
     requirements:
       ``(A) Included amounts.--Such term includes recurring gifts 
     and receipts, actual income from assets, and profit or loss 
     from a business.
       ``(B) Excluded amounts.--Such term does not include any--
       ``(i) imputed return on assets;
       ``(ii) amounts that would be eligible for exclusion under 
     section 1613(a)(7) of the Social Security Act (42 U.S.C. 
     1382b(a)(7)); and
       ``(iii) deferred Veterans Administration disability 
     benefits that are received in a lump sum amount or in 
     prospective monthly amounts.
       ``(C) Earned income of students.--Such term does not 
     include earned income of any dependent earned during any 
     period that such dependent is attending school on a full-time 
     basis or any grant-in-aid or scholarship amounts related to 
     such attendance used for the cost of tuition or books.
       ``(D) Educational savings accounts.--Income shall be 
     determined without regard to any amounts in or from, or any 
     benefits from, any Coverdell Education Savings Account under 
     section 530 of the Internal Revenue Code of 1986 or any 
     qualified tuition program under section 529 of such Code.
       ``(E) Other exclusions.--Such term shall not include other 
     exclusions from income as are established by the Secretary or 
     any amount required by Federal law to be excluded from 
     consideration as income. The Secretary may not require a 
     public housing agency or owner to maintain records of any 
     amounts excluded from income pursuant to this 
     subparagraph.''; and
       (2) by striking paragraph (5) and inserting the following 
     new paragraph:
       ``(5) Adjusted income.--The term `adjusted income' means, 
     with respect to a family, the amount (as determined by the 
     public housing agency or owner) of the income of the members 
     of the family residing in a dwelling unit or the persons on a 
     lease, after any deductions from income as follows:
       ``(A) Elderly and disabled families.--$700 in the case of 
     any family that is an elderly family or a disabled family.
       ``(B) Dependents.--In the case of any family that includes 
     a member or members who--
       ``(i) are less than 18 years of age or attending school or 
     vocational training on a full-time basis; or
       ``(ii) is a person with disabilities who is 18 years of age 
     or older and resides in the household,
     $480 for each such member.
       ``(C) Earned income disregard.--An amount equal to 10 
     percent of the lesser of the family's earned income or 
     $9,000.
       ``(D) Child care.--The amount, if any, exceeding 5 percent 
     of annual income used to pay for childcare for preschool age 
     children, for before- or after-care for children in school, 
     or for other childcare necessary to enable a member of the 
     family to be employed or further his or her education.
       ``(E) Health and medical expenses.--The amount, if any, by 
     which 10 percent of annual family income is exceeded by the 
     sum of--
       ``(i) in the case of any elderly or disabled family, any 
     unreimbursed health and medical care expenses; and
       ``(ii) any 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 to be employed.
       ``(F) Permissive deductions.--Such additional deductions as 
     a public housing agency or owner may, at its discretion, 
     establish, except that the Secretary shall establish 
     procedures to ensure that such deductions do not increase 
     Federal expenditures.

     -The Secretary shall annually adjust the amounts of the 
     deductions under subparagraphs (A) and (B), as such amounts 
     may have been previously adjusted, by applying an 
     inflationary factor as the Secretary shall, by regulation, 
     establish. If the dollar amount of any such deduction 
     determined for any year by applying such inflationary factor 
     is not a multiple of $25, the Secretary shall round such 
     amount to the next lowest multiple of $25, except that in no 
     instance shall the dollar amount of any such deduction be 
     less than the initial amount of the deduction established 
     under subparagraphs (A) and (B). The Secretary shall annually 
     adjust the fixed numerical dollar amount under subparagraph 
     (C) ($9,000 as of the date of enactment of the Section 8 
     Voucher Reform Act of 2008), as such amount may have been 
     previously adjusted, by applying an inflationary factor as 
     the Secretary shall, by regulation, establish. If such dollar 
     amount determined for any year by applying such inflationary 
     factor is not a multiple of $1,000, the Secretary shall round 
     such amount to the next lowest multiple of $1,000.''.
       (c) Housing Choice Voucher Program.--Paragraph (5) of 
     section 8(o) of the United States Housing Act of 1937 (42 
     U.S.C. 1437f(o)(5)) is amended--
       (1) in the paragraph heading, by striking ``Annual review'' 
     and inserting ``Reviews'';
       (2) in subparagraph (A)--
       (A) by striking ``the provisions of'' and inserting 
     ``paragraphs (6) and (7) of section 3(a) and to''; and
       (B) by striking ``and shall be conducted upon the initial 
     provision of housing assistance for the family and thereafter 
     not less than annually''; and
       (3) in subparagraph (B), by striking the second sentence.
       (d) Enhanced Voucher Program.--Section 8(t)(1)(D) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(D)) 
     is amended by striking ``income'' and inserting ``annual 
     adjusted income''.
       (e) Project-Based Housing.--Paragraph (3) of section 8(c) 
     of the United States Housing Act of 1937 (42 U.S.C. 
     1437f(c)(3)) is amended by striking the last sentence.
       (f) Impact on Public Housing Revenues.--
       (1) Interaction with asset management rule.--If a public 
     housing agency determines that the application of the 
     amendments made by this section results in a net reduction in 
     the dwelling rental income of the public housing agency and 
     such reduction in the first quarter of a calendar year is 
     projected to be more than one-half percent of the net 
     dwelling rents received by the public housing agency during 
     the preceding calendar year, the public housing agency may, 
     any time prior to April 15th of each year following the 
     effective date of the amendments made by this section, 
     certify to the Secretary of Housing and Urban Development the 
     anticipated net reduction in annual dwelling rental income 
     and the Secretary, within 45 days of receipt of such 
     statement, shall reimburse the agency from funds appropriated 
     for operating assistance under section 9(e) of the United 
     States Housing Act of 1937 (42 U.S.C. 1437g(e)) if such funds 
     are available. Each public housing agency so assisted shall 
     maintain the books, documents, papers, and records supporting 
     the certification submitted to the Secretary and such 
     materials shall be available for review and audit by the 
     Secretary and by the Comptroller General of the United States 
     and their authorized representatives.
       (2) HUD reports on public housing revenue impact.--For each 
     of fiscal years 2009 and 2010, the Secretary of Housing and 
     Urban Development shall submit a report to Congress 
     identifying and calculating the impact of changes made by the 
     amendments made by this section on the revenues and costs of 
     operating public housing units.
       (3) Effective date.--This subsection shall take effect 
     during the first year that the amendments made by this 
     section are effective.
       (g) Access to Information.--Section 904(2)(C) of the 
     Stewart B. McKinney Homeless Assistance Amendments Act of 
     1988 (42 U.S.C. 3544) is amended by striking the period and 
     inserting the following: ``, and each applicant or 
     participant, or the authorized representative thereof, shall 
     have the opportunity to examine all information obtained for 
     purposes of verifying the applicant or participant's 
     eligibility for or levels of benefits.''.

     SEC. 4. ELIGIBILITY FOR ASSISTANCE BASED ON ASSETS AND 
                   INCOME.

       (a) Assets.--Section 16 of the United States Housing Act of 
     1937 (42 U.S.C. 1437n) is amended by inserting after 
     subsection (d) the following new subsection:
       ``(e) Eligibility for Assistance Based on Assets.--
       ``(1) Limitation on assets.--Subject to paragraph (3) and 
     notwithstanding any other provision of this Act, a dwelling 
     unit assisted under this Act may not be rented and assistance 
     under this Act may not be provided, either initially or at 
     each recertification of family income, to any family--
       ``(A) whose net family assets exceed $100,000, as such 
     amount is adjusted annually by applying an inflationary 
     factor as the Secretary considers appropriate; or
       ``(B) who has a present ownership interest in, and a legal 
     right to reside in, real property that is suitable for 
     occupancy as a residence, except that the prohibition under 
     this subparagraph shall not apply to--
       ``(i) any property for which the family is receiving 
     assistance under this Act;
       ``(ii) any person that is a victim of domestic violence; or
       ``(iii) any family that is making a good faith effort to 
     sell such property.
       ``(2) Net family assets.--
       ``(A) In general.--For purposes of this subsection, the 
     term `net family assets' means, for all members of the 
     household, the net cash value of all assets after deducting 
     reasonable costs that would be incurred in disposing of real 
     property, savings, stocks,

[[Page S1473]]

     bonds, and other forms of capital investment. Such term does 
     not include interests in Indian trust land, equity in real 
     property to which the prohibition under paragraph (1)(B) does 
     not apply, savings accounts in homeownership programs of the 
     Department of Housing and Urban Development, or Family Self-
     Sufficiency program accounts.
       ``(B) Exclusions.--Such term does not include--
       ``(i) necessary items of personal property, such as 
     furniture and automobiles, as the public housing agency may 
     determine for purposes of the voucher and public housing 
     programs, and as the Secretary shall determine for purposes 
     of other Federal housing programs;
       ``(ii) the value of any retirement account;
       ``(iii) any amounts recovered in any civil action or 
     settlement based on a claim of malpractice, negligence, or 
     other breach of duty owed to a member of the family and 
     arising out of law, that resulted in a member of the family 
     being disabled; and
       ``(iv) the value of any Coverdell Education Savings Account 
     under section 530 of the Internal Revenue Code of 1986 or any 
     qualified tuition program under section 529 of such Code.
       ``(C) Trust funds.--In cases where a trust fund has been 
     established and the trust is not revocable by, or under the 
     control of, any member of the family or household, the value 
     of the trust fund shall not be considered an asset of a 
     family if the fund continues to be held in trust. Any income 
     distributed from the trust fund shall be considered income 
     for purposes of section 3(b) and any calculations of annual 
     family income, except in the case of medical expenses for a 
     minor.
       ``(D) Self-certification.--A public housing agency or owner 
     may determine the net assets of a family, for purposes of 
     this section, based on the amounts reported by the family at 
     the time the agency or owner reviews the family's income.
       ``(3) Compliance for public housing dwelling units.--When 
     recertifying family income with respect to families residing 
     in public housing dwelling units, a public housing agency 
     may, in the discretion of the agency and only pursuant to a 
     policy that is set forth in the public housing agency plan 
     under section 5A for the agency, choose not to enforce the 
     limitation under paragraph (1).
       ``(4) Authority to delay evictions.--In the case of a 
     family residing in a dwelling unit assisted under this Act 
     who does not comply with the limitation under paragraph (1), 
     the public housing agency or project owner may--
       ``(A) delay eviction or termination of the family, based on 
     such noncompliance for a period of not more than 6 months; 
     and
       ``(B) continue to provide assistance to the family if the 
     family rectifies its noncompliance with such limitation 
     during the period of delay described under subparagraph 
     (A).''.
       (b) Income.--The United States Housing Act of 1937 is 
     amended--
       (1) in section 3(a)(1) (42 U.S.C. 1437a(a)(1)), by striking 
     the first sentence and inserting the following: ``Dwelling 
     units assisted under this Act may be rented, and assistance 
     under this Act may be provided, whether initially or at time 
     of recertification, only to families who are low-income 
     families at the time such initial or continued assistance, 
     respectively, is provided, except that families residing in 
     dwelling units as of the date of the enactment of the Section 
     8 Voucher Reform Act of 2008 that, under agreements in effect 
     on such date of enactment, may have incomes up to 95 percent 
     of local area median income shall continue to be eligible for 
     assistance at recertification as long as they continue to 
     comply with such income restrictions. Public housing agencies 
     and owners shall determine whether a family receiving 
     assistance under this Act is a low-income family at the time 
     of recertification based on the highest area median income 
     determined by the Secretary for the area since the family 
     began receiving assistance under this Act. When recertifying 
     family income with respect to families residing in public 
     housing dwelling units, a public housing agency may, in the 
     discretion of the agency and only pursuant to a policy that 
     is set forth in the public housing agency plan under section 
     5A for the agency, choose not to enforce the prohibition 
     under the preceding sentence. When recertifying family income 
     with respect to families residing in dwelling units for which 
     project-based assistance is provided, a project owner may, in 
     the owner's discretion and only pursuant to a policy adopted 
     by such owner, choose not to enforce such prohibition. In the 
     case of a family residing in a dwelling unit assisted under 
     this Act who does not comply with the prohibition under the 
     first sentence of this paragraph or the prohibition in 
     section 8(o)(4), the public housing agency or project owner 
     may delay eviction or termination of the family, based on 
     such noncompliance for a period of not more than 6 months and 
     may continue to provide assistance to the family if the 
     family rectifies its noncompliance with such limitation 
     during this period of delay.'';
       (2) in section 8(o)(4) (42 U.S.C. 1437f(o)(4)), by striking 
     the matter preceding subparagraph (A) and inserting the 
     following:
       ``(4) Eligible families.--Assistance under this subsection 
     may be provided, whether initially or at each 
     recertification, only pursuant to subsection (t) to a family 
     eligible for assistance under such subsection or to a family 
     who at the time of such initial or continued assistance, 
     respectively, is a low-income family that is--''; and
       (3) in section 8(c)(4) (42 U.S.C. 1437f(c)(4)), by striking 
     ``at the time it initially occupied such dwelling unit'' and 
     insert ``according to the restrictions under section 
     3(a)(1)''.

     SEC. 5. TARGETING ASSISTANCE TO LOW-INCOME WORKING FAMILIES.

       (a) Vouchers.--Section 16(b)(1) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437n(b)(1)) is amended--
       (1) by inserting after ``do not exceed'' the following: 
     ``the higher of (A) the poverty line (as such term is defined 
     in section 673 of the Omnibus Budget Reconciliation Act of 
     1981 (42 U.S.C. 9902), including any revision required by 
     such section) applicable to a family of the size involved, or 
     (B)''; and
       (2) by inserting before the period at the end the 
     following: ``; and except that clause (A) of this sentence 
     shall not apply in the case of public housing agencies 
     located in Puerto Rico or any other territory or possession 
     of the United States''.
       (b) Public Housing.--Section 16(a)(2)(A) of the United 
     States Housing Act of 1937 (42 U.S.C. 1437n(a)(2)(A)) is 
     amended--
       (1) by inserting after ``do not exceed'' the following: 
     ``the higher of (i) the poverty line (as such term is defined 
     in section 673 of the Omnibus Budget Reconciliation Act of 
     1981 (42 U.S.C. 9902), including any revision required by 
     such section) applicable to a family of the size involved, or 
     (ii)''; and
       (2) by inserting before the period at the end the 
     following: ``; and except that clause (i) of this sentence 
     shall not apply in the case of public housing agencies 
     located in Puerto Rico or any other territory or possession 
     of the United States''.
       (c) Project-Based Section 8 Assistance.--Section 16(b)(1) 
     of the United States Housing Act of 1937 (42 U.S.C. 
     1437n(b)(1)) is amended--
       (1) by inserting after ``do not exceed'' the following: 
     ``the higher of (A) the poverty line (as such term is defined 
     in section 673 of the Omnibus Budget Reconciliation Act of 
     1981 (42 U.S.C. 9902), including any revision required by 
     such section) applicable to a family of the size involved, or 
     (B)''; and
       (2) by inserting before the period at the end the 
     following: ``; and except that clause (A) of this sentence 
     shall not apply in the case of projects located in Puerto 
     Rico or any other territory or possession of the United 
     States''.

     SEC. 6. VOUCHER RENEWAL FUNDING.

       (a) In General.--Section 8 of the United States Housing Act 
     of 1937 (42 U.S.C. 1437f) is amended by striking subsection 
     (dd) and inserting the following new subsection:
       ``(dd) Tenant-Based Vouchers.--
       ``(1) Authorization of appropriations.--There are 
     authorized to be appropriated, for each of fiscal years 2009 
     through 2013, such sums as may be necessary for tenant-based 
     assistance under subsection (o) for the following purposes:
       ``(A) To renew all expiring annual contributions contracts 
     for tenant-based rental assistance.
       ``(B) To provide tenant-based rental assistance for--
       ``(i) relocation and replacement of housing units that are 
     demolished or disposed of pursuant to the Omnibus 
     Consolidated Rescissions and Appropriations Act of 1996 
     (Public Law 104-134);
       ``(ii) conversion of section 23 projects to assistance 
     under this section;
       ``(iii) the family unification program under subsection (x) 
     of this section;
       ``(iv) relocation of witnesses in connection with efforts 
     to combat crime in public and assisted housing pursuant to a 
     request from a law enforcement or prosecution agency;
       ``(v) enhanced vouchers authorized under subsection (t) of 
     this section;
       ``(vi) relocation and replacement of public housing units 
     that are demolished or disposed of in connection with the 
     HOPE VI program under section 24;
       ``(vii) relocation and replacement of vouchers used to 
     preserve public housing developed from sources other than 
     under section 9 of the United States Housing Act of 1937 (42 
     U.S.C. 1437g);
       ``(viii) mandatory conversions of public housing to 
     vouchers, pursuant to sections 33 of the United States 
     Housing Act of 1937 (42 U.S.C. 1437z-5);
       ``(ix) voluntary conversion of public housing to vouchers 
     pursuant to section 22 of the United States Housing Act of 
     1937 (42 U.S.C. 1437t);
       ``(x) vouchers necessary to comply with a consent decree or 
     court order;
       ``(xi) relocation and replacement of public housing units 
     that are demolished or disposed of pursuant to eminent 
     domain, homeownership programs, in connection with a mixed-
     finance project under section 35 of the United States Housing 
     Act of 1937 (42 U.S.C. 1437z-7), or otherwise;
       ``(xii) vouchers to replace dwelling units that cease to 
     receive project-based assistance under subsection (b), (c), 
     (d), (e), or (v) of this section;
       ``(xiii) vouchers used to preserve public housing developed 
     from sources other than under section 9 of the United States 
     Housing Act of 1937 (42 U.S.C. 1437g);
       ``(xiv) tenant protection assistance, including replacement 
     and relocation assistance; and
       ``(xv) emergency voucher assistance for the protection of 
     victims of domestic violence, dating violence, sexual 
     assault, or stalking.
     Subject only to the availability of sufficient amounts 
     provided in appropriation Acts, the

[[Page S1474]]

     Secretary shall provide tenant-based rental assistance to 
     replace all dwelling units that cease to be available as 
     assisted housing as a result of clause (i), (ii), (v), (vi), 
     (vii), (viii), (xi), (xii), or (xiii).
       ``(2) Allocation of renewal funding among public housing 
     agencies.--
       ``(A) From amounts appropriated for each year pursuant to 
     paragraph (1)(A), the Secretary shall provide renewal funding 
     for each public housing agency--
       ``(i) based on leasing and cost data from the preceding 
     calendar year, as adjusted by an annual adjustment factor to 
     be established by the Secretary, which shall be established 
     using the smallest geographical areas for which data on 
     changes in rental costs are annually available;
       ``(ii) by making any adjustments necessary to provide for--

       ``(I) the first-time renewal of vouchers funded under 
     paragraph (1)(B); and
       ``(II) any incremental vouchers funded in previous years;

       ``(iii) by making any adjustments necessary for full-year 
     funding of vouchers moved into or out of the jurisdiction of 
     the public housing agency in the prior calendar year pursuant 
     to the portability procedures under subsection (r)(2); and
       ``(iv) by making such other adjustments as the Secretary 
     considers appropriate, including adjustments necessary to 
     address changes in voucher utilization rates and voucher 
     costs related to natural and other major disasters.
       ``(B) Leasing and cost data.--For purposes of subparagraph 
     (A)(i), leasing and cost data shall be calculated annually by 
     using the average for the preceding calendar year. Such 
     leasing and cost data shall be adjusted to include vouchers 
     that were set aside under a commitment to provide project-
     based assistance under subsection (o)(13) and to exclude 
     amounts funded through advances under paragraph (3). Such 
     leasing and cost data shall not include funds not 
     appropriated for tenant-based assistance under section 8(o), 
     unless the agency's funding was prorated in the prior year 
     and the agency used other funds to maintain vouchers in use.
       ``(C) Overleasing.--For the purpose of determining 
     allocations under subsection (A)(i), the leasing rate 
     calculated for the prior calendar year may exceed an agency's 
     authorized voucher level, except that such calculation shall 
     not include amounts resulting from a leasing rate in excess 
     of 103 percent of an agency's authorized vouchers in the 
     prior year which results from the use of accumulated amounts, 
     as referred to in paragraph (4)(A).
       ``(D) Moving to work.--Notwithstanding subparagraphs (A) 
     and (B), each public housing agency participating in any year 
     in the moving to work demonstration under section 204 of the 
     Departments of Veterans Affairs and Housing and Urban 
     Development, and Independent Agencies Appropriations Act, 
     1996 (42 U.S.C. 1437f note) shall be--
       ``(i) funded pursuant to its agreement under such program, 
     if such agreement includes an alternate to the provisions of 
     this subsection; and
       ``(ii) subject to any pro rata adjustment made under 
     subparagraph (E)(i).
       ``(E) Pro rata allocation.--
       ``(i) Insufficient funds.--To the extent that amounts made 
     available for a fiscal year are not sufficient to provide 
     each public housing agency with the full allocation for the 
     agency determined pursuant to subparagraphs (A) and (D), the 
     Secretary shall reduce such allocation for each agency on a 
     pro rata basis, except that renewal funding of enhanced 
     vouchers under section 8(t) shall not be subject to such 
     proration.
       ``(ii) Excess funds.--To the extent that amounts made 
     available for a fiscal year exceed the amount necessary to 
     provide each housing agency with the full allocation for the 
     agency determined pursuant to subparagraphs (A) and (D), such 
     excess amounts shall be used for the purposes specified in 
     subparagraphs (B) and (C) of paragraph (4).
       ``(F) Prompt funding allocation.--The Secretary shall 
     allocate all funds under this subsection for each year before 
     the latter of (i) February 15, or (ii) the expiration of the 
     45-day period beginning upon the enactment of the 
     appropriations Act funding such renewals.
       ``(3) Advances.--
       ``(A) Authority.--During the last 3 months of each calendar 
     year, the Secretary shall provide funds out of any 
     appropriations made under paragraph (1) for the fiscal year 
     beginning on October 1 of that calendar year, to any public 
     housing agency, at the request of the agency, in an amount up 
     to 2 percent of the allocation for the agency for such 
     calendar year, subject to subparagraph (C).
       ``(B) Use.--Amounts advanced under subparagraph (A) may be 
     used to pay for additional voucher costs, including costs 
     related to temporary overleasing.
       ``(C) Use of prior year amounts.--During the last 3 months 
     of a calendar year, if amounts previously provided to a 
     public housing agency for tenant-based assistance for such 
     year or for previous years remain unobligated and available 
     to the agency--
       ``(i) the agency shall exhaust such amounts to cover any 
     additional voucher costs under subparagraph (B) before 
     amounts advanced under subparagraph (A) may be so used; and
       ``(ii) the amount that may be advanced under subparagraph 
     (A) to the agency shall be reduced by an amount equal to the 
     total of such previously provided and unobligated amounts.
       ``(D) Repayment.--Amounts advanced under subparagraph (A) 
     in a calendar year shall be repaid to the Secretary in the 
     subsequent calendar year by reducing the amounts made 
     available for such agency for such subsequent calendar year 
     pursuant to allocation under paragraph (2) by an amount equal 
     to the amount so advanced to the agency.
       ``(4) Offset.--
       ``(A) In general.--The Secretary shall offset, from amounts 
     provided under the annual contributions contract for a public 
     housing agency for a calendar year, all accumulated amounts 
     allocated under paragraph (2) and from previous years that 
     are unused by the agency at the end of each calendar year 
     except--
       ``(i) with respect to the offset under this subparagraph at 
     the end of 2008, an amount equal to 12.5 percent of the 
     amount allocated to the public housing agency for such year 
     pursuant to paragraph (2)(A);
       ``(ii) with respect to the offset under this subparagraph 
     at the end of 2009, an amount equal to 7.5 percent of the 
     amount allocated to the public housing agency for such year 
     pursuant to paragraph (2)(A); and
       ``(iii) with respect to the offset under this subparagraph 
     at the end of each of 2010, 2011, and 2012, an amount equal 
     to 5 percent of such amount allocated to the agency for such 
     year. Notwithstanding any other provision of law, each public 
     housing agency may retain all amounts not authorized to be 
     offset under this subparagraph, and may use such amounts for 
     all authorized purposes. Funds initially allocated prior to 
     the effective date of the Section 8 Voucher Reform Act of 
     2008 for the purposes specified in paragraph (1)(B) shall not 
     be included in the calculation of accumulated amounts subject 
     to offset under this paragraph.
       ``(B) Reallocation.--Not later than May 1 of each calendar 
     year, the Secretary shall--
       ``(i) calculate the aggregate savings due to the offset of 
     unused amounts for the preceding year recaptured pursuant to 
     subparagraph (A);
       ``(ii) set aside such amounts as the Secretary considers 
     likely to be needed to reimburse public housing agencies for 
     increased costs related to portability and family self-
     sufficiency activities during such year, which amounts shall 
     be made available for allocation upon submission of a request 
     that meets criteria prescribed by the Secretary; and
       ``(iii) reallocate all remaining amounts among public 
     housing agencies, with priority given based on the extent to 
     which an agency has utilized the amount allocated under 
     paragraph (2) for the agency to serve eligible families, as 
     well as the relative need of communities for additional 
     assistance under this subsection.
       ``(C) Use.--Amounts reallocated to a public housing agency 
     pursuant to subparagraph (B)(iii) may be used only to 
     increase voucher leasing rates to the level eligible for 
     renewal funding under paragraph (2)(C).''.
       (b) Absorption of Vouchers From Other Agencies.--
       (1) In general.--Section 8(r)(2) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437f(r)(2)) is amended--
       (A) by striking ``The public housing agency'' and inserting 
     ``(A) In general.--The public housing agency''; and
       (B) by adding the end the following:
       ``(B) Absorption and priority.--
       ``(i) In general.--The public housing agency shall--

       ``(I) absorb any family that moves under this subsection 
     into its program for voucher assistance under this section 
     after the initial month, except that the Secretary may limit 
     the absorption of vouchers in excess of a public housing 
     agency's authorized level if the Secretary makes the 
     determination under subparagraph (C) that there is 
     insufficient funding for such vouchers in the current year; 
     and
       ``(II) have priority to receive additional funding from the 
     Secretary for the net additional cost of housing assistance 
     provided pursuant to this requirement from amounts made 
     available pursuant to subsection (dd) (4) (B) or otherwise, 
     except that the obligation to absorb vouchers under subclause 
     (I) does not override any provision of a judgement, consent 
     decree, contract with the Secretary pursuant to section 
     3(b)(6), or any other similar arrangement under which the 
     public housing agency administers voucher assistance under 
     this section without regard to any other applicable 
     limitation on the public housing agency's area of operation.

       ``(ii) No delay of vouchers for families on waiting list.--
     The Secretary shall provide the funding required to carry out 
     the activities under clause (i) as needed for a public 
     housing agency to meet its obligation under this subparagraph 
     without delaying issuance of vouchers to families on its 
     waiting list.
       ``(C) Exception.--If in any fiscal year, the Secretary does 
     not have sufficient funds available under subsection 
     (dd)(4)(B) or that otherwise may be used for the purposes of 
     this subsection, the Secretary shall suspend the requirement 
     described in subparagraph (B). Such suspension shall take 
     effect no earlier than 60 days after the Secretary provides 
     notice of the suspension by electronic mail to all public 
     housing agencies and to the public by posting of the notice 
     on the website of the Department. The obligation of the 
     Secretary to fund vouchers absorbed under subparagraph (B) 
     shall continue for all

[[Page S1475]]

     vouchers that are leased prior to the effective date of such 
     suspension.''.
       (2) Transition.--The amendments made by paragraph (1) shall 
     take effect January 1, 2010, provided that in each calendar 
     quarter of 2010 and 2011, a public housing agency shall 
     absorb no more than one-eighth of the vouchers subject to 
     absorption on such effective date of each public housing 
     agency that is providing assistance for the vouchers on such 
     effective date. Public housing agencies may by mutual 
     agreement alter the absorption rate established in the 
     previous sentence.
       (3) Report to congress.--Not later than May 1, 2009, the 
     Secretary of Housing and Urban Development shall provide to 
     Congress an estimate of the net additional cost to the 
     Department of Housing and Urban Development in the first year 
     of implementation of the new requirements added by the 
     amendments made in paragraph (1), and of the savings likely 
     to be available in 2010 and 2011 as a result of the reduction 
     in the permitted level of retained funds under subsection 
     (dd)(4)(A) of section 8 of the United States Housing Act of 
     1937 (42 U.S.C. 1437f(dd)(4)(A)).
       (c) Vouchers for Persons With Disabilities.--The Secretary 
     of Housing and Urban Development shall develop and issue, to 
     public housing agencies that received voucher assistance 
     under section 8(o) for non-elderly disabled families pursuant 
     to appropriations Acts, guidance to ensure that, to the 
     maximum extent practicable, such vouchers continue to be 
     provided upon turnover to qualified non-elderly disabled 
     families.

     SEC. 7. ADMINISTRATIVE FEES.

       (a) In General.--Section 8(q) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437f(q)) is amended--
       (1) in paragraph (1)--
       (A) by amending subparagraphs (B) and (C) to read as 
     follows:
       ``(B) Calculation.--The fee under this subsection shall--
       ``(i) be payable to each public housing agency for each 
     month for which a dwelling unit is covered by an assistance 
     contract;
       ``(ii) be based on the per unit fee payable to the agency 
     in fiscal year 2003, updated for each subsequent year as 
     specified in subsection (iv), unless the Secretary 
     establishes by rulemaking a revised method of calculating the 
     per unit fee for each agency, which method--

       ``(I) shall otherwise comply with this subparagraph; and
       ``(II) may include performance incentives, consistent with 
     subsection (o)(21);

       ``(iii) include an amount for the cost of issuing vouchers 
     to new participants who lease units in the jurisdiction of 
     the agency or in another jurisdiction under the procedures 
     established in subsection (r);
       ``(iv) be updated each year using an index of changes in 
     wage data or other objectively measurable data that reflect 
     the costs of administering the program for such assistance, 
     as determined by the Secretary; and
       ``(v) include an amount for the cost of family self-
     sufficiency coordinators, as provided in section 23(h)(1).
       ``(C) Publication.--The Secretary shall cause to be 
     published in the Federal Register the fee rate for each 
     geographic area.''; and
       (B) by striking subparagraph (E); and
       (2) in paragraph (4), by striking ``1999'' and inserting 
     ``2008''.
       (b) Administrative Fees for Family Self-Sufficiency Program 
     Costs.--Subsection (h) of section 23 of the United States 
     Housing Act of 1937 (42 U.S.C. 1437u(h)) is amended by 
     striking paragraph (1) and inserting the following new 
     paragraph:
       ``(1) Section 8 fees.--
       ``(A) In general.--The Secretary shall establish a fee 
     under section 8(q) for the costs incurred in administering 
     the self-sufficiency program under this section to assist 
     families receiving voucher assistance through section 8(o).
       ``(B) Eligibility for fee.--The fee shall provide funding 
     for family self-sufficiency coordinators as follows:
       ``(i) Base fee.--A public housing agency serving 25 or more 
     participants in the Family Self-Sufficiency program under 
     this section shall receive a fee equal to the costs of 
     employing 1 full-time family self-sufficiency coordinator. An 
     agency serving fewer than 25 such participants shall receive 
     a prorated fee.
       ``(ii) Additional fee.--An agency that meets minimum 
     performance standards shall receive an additional fee 
     sufficient to cover the costs of employing a second family 
     self-sufficiency coordinator if the agency has 75 or more 
     participating families, and a third such coordinator if it 
     has 125 or more participating families.
       ``(iii) Previously funded agencies.--An agency that 
     received funding from the Department of Housing and Urban 
     Development for more than 3 such coordinators in any of 
     fiscal years 1998 through 2008 shall receive funding for the 
     highest number of coordinators funded in a single fiscal year 
     during that period, provided they meet applicable size and 
     performance standards.
       ``(iv) Initial year.--For the first year in which a public 
     housing agency exercises its right to develop a family self-
     sufficiency program for its residents, it shall be entitled 
     to funding to cover the costs of up to 1 family self-
     sufficiency coordinator, based on the size specified in its 
     action plan for such program.
       ``(v) State and regional agencies.--For purposes of 
     calculating the family self-sufficiency portion of the 
     administrative fee under this subparagraph, each 
     administratively distinct part of a State or regional public 
     housing agency shall be treated as a separate agency.
       ``(vi) Determination of number of coordinators.--In 
     determining whether a public housing agency meets a specific 
     threshold for funding pursuant to this paragraph, the number 
     of participants being served by the agency in its family 
     self-sufficiency program shall be considered to be the 
     average number of families enrolled in such agency's program 
     during the course of the most recent fiscal year for which 
     the Department of Housing and Urban Development has data.
       ``(C) Proration.--If insufficient funds are available in 
     any fiscal year to fund all of the coordinators authorized 
     under this section, the first priority shall be given to 
     funding 1 coordinator at each agency with an existing family 
     self-sufficiency program. The remaining funds shall be 
     prorated based on the number of remaining coordinators to 
     which each agency is entitled under this subparagraph.
       ``(D) Recapture.--Any fees allocated under this 
     subparagraph by the Secretary in a fiscal year that have not 
     been spent by the end of the subsequent fiscal year shall be 
     recaptured by the Secretary and shall be available for 
     providing additional fees pursuant to subparagraph (B)(ii).
       ``(E) Performance standards.--Within 6 months after the 
     date of the enactment of this paragraph, the Secretary shall 
     publish a proposed rule specifying the performance standards 
     applicable to funding under clauses (ii) and (iii) of 
     subparagraph (B). Such standards shall include requirements 
     applicable to the leveraging of in-kind services and other 
     resources to support the goals of the family self-sufficiency 
     program.
       ``(F) Data collection.--Public housing agencies receiving 
     funding under this paragraph shall collect and report to the 
     Secretary, in such manner as the Secretary shall require, 
     information on the performance of their family self-
     sufficiency programs.
       ``(G) Evaluation.--The Secretary shall conduct a formal and 
     scientific evaluation of the effectiveness of well-run family 
     self-sufficiency programs, using random assignment of 
     participants to the extent practicable. Not later than the 
     expiration of the 4-year period beginning upon the enactment 
     of this paragraph, the Secretary shall submit an interim 
     evaluation report to Congress. Not later than the expiration 
     of the 8-year period beginning upon such enactment, the 
     Secretary shall submit a final evaluation report to Congress. 
     There is authorized to be appropriated $10,000,000 to carry 
     out the evaluation under this subparagraph.
       ``(H) Incentives for innovation and high performance.--The 
     Secretary may reserve up to 10 percent of the amounts made 
     available for administrative fees under this paragraph to 
     provide support to or reward family self-sufficiency programs 
     that are particularly innovative or highly successful in 
     achieving the goals of the program.''.
       (c) Repeal.--Section 202 of the Departments of Veterans 
     Affairs and Housing and Urban Development, and Independent 
     Agencies Appropriations Act, 1997 (42 U.S.C. 1437f note; 
     Public Law 104-204; 110 Stat. 2893) is hereby repealed.

     SEC. 8. HOMEOWNERSHIP.

       (a) Section 8 Homeownership Downpayment Program.--Section 
     8(y)(7) of the United States Housing Act of 1937 (42 U.S.C. 
     1437f(y)(7)) is amended by striking subparagraphs (A) and (B) 
     and inserting the following new subparagraph:
       ``(A) In general.--Subject to the provisions of this 
     paragraph, in the case of a family on whose behalf rental 
     assistance under section 8(o) has been provided for a period 
     of not less than 12 months prior to the date of receipt of 
     downpayment assistance under this paragraph, a public housing 
     agency may, in lieu of providing monthly assistance payments 
     under this subsection on behalf of a family eligible for such 
     assistance and at the discretion of the agency, provide a 
     downpayment assistance grant in accordance with subparagraph 
     (B).
       ``(B) Grant requirements.--A downpayment assistance grant 
     under this paragraph--
       ``(i) shall be used by the family only as a contribution 
     toward the downpayment and reasonable and customary closing 
     costs required in connection with the purchase of a home;
       ``(ii) shall be in the form of a single 1-time grant; and
       ``(iii) may not exceed $10,000.
       ``(C) No effect on obtaining outside sources for 
     downpayment assistance.--This Act may not be construed to 
     prohibit a public housing agency from providing downpayment 
     assistance to families from sources other than a grant 
     provided under this Act, or as determined by the public 
     housing agency.''.
       (b) Use of Vouchers for Manufactured Housing.--Section 
     8(o)(12) of the United States Housing Act of 1937 (42 U.S.C. 
     1437f(o)(12)) is amended--
       (1) in subparagraph (A), by striking the period at the end 
     of the first sentence and all that follows through ``of'' in 
     the second sentence and inserting ``and rents''; and
       (2) in subparagraph (B)--
       (A) in clause (i), by striking ``the rent'' and all that 
     follows and inserting the following: ``rent shall mean the 
     sum of the monthly

[[Page S1476]]

     payments made by a family assisted under this paragraph to 
     amortize the cost of purchasing the manufactured home, 
     including any required insurance and property taxes, the 
     monthly amount allowed for tenant-paid utilities, and the 
     monthly rent charged for the real property on which the 
     manufactured home is located, including monthly management 
     and maintenance charges.'';
       (B) by striking clause (ii); and
       (C) in clause (iii)--
       (i) by inserting after the period at the end the following: 
     ``If the amount of the monthly assistance payment for a 
     family exceeds the monthly rent charged for the real property 
     on which the manufactured home is located, including monthly 
     management and maintenance charges, a public housing agency 
     may pay the remainder to the family, lender, or utility 
     company, or may choose to make a single payment to the family 
     for the entire monthly assistance amount.''; and
       (ii) by redesignating such clause as clause (ii).

     SEC. 9. PERFORMANCE ASSESSMENTS.

       Section 8(o) of the United States Housing Act of 1937 (42 
     U.S.C. 1437f(o)) is amended by adding at the end the 
     following new paragraph:
       ``(21) Performance assessments.--
       ``(A) Establishment.--The Secretary shall, by regulation, 
     establish standards and procedures for assessing the 
     performance of public housing agencies in carrying out the 
     programs for tenant-based rental assistance under this 
     subsection and for homeownership assistance under subsection 
     (y).
       ``(B) Contents.--The standards and procedures under this 
     paragraph shall provide for assessment of the performance of 
     public housing agencies in the following areas:
       ``(i) Quality of dwelling units obtained using such 
     assistance.
       ``(ii) Extent of utilization of assistance amounts provided 
     to the agency and of authorized vouchers, adjusted for 
     vouchers set aside to meet commitments under paragraph (13) 
     and to take into account the time required for additional 
     lease-up efforts resulting from absorption of a significant 
     number or share of an agency's vouchers under subsection (r).
       ``(iii) Timeliness and accuracy of reporting by the agency 
     to the Secretary.
       ``(iv) Effectiveness in carrying out policies to achieve 
     deconcentration of poverty.
       ``(v) Reasonableness of rent burdens, consistent with 
     public housing agency responsibilities under section 
     8(o)(1)(E)(iii).
       ``(vi) Accurate calculations of rent, utility allowances, 
     and subsidy payments.
       ``(vii) Effectiveness in carrying out family self-
     sufficiency activities.
       ``(viii) Timeliness of actions related to landlord 
     participation.
       ``(ix) Compliance with targeting requirements under section 
     16(b).
       ``(x) Such other areas as the Secretary considers 
     appropriate.
       ``(C) Biennial assessment.--Not later than 2 years after 
     the date of enactment of this paragraph, and at least every 2 
     years thereafter, the Secretary, using the standards and 
     procedures established under this paragraph, shall--
       ``(i) conduct an assessment of the performance of each 
     public housing agency carrying out a program referred to in 
     subparagraph (A);
       ``(ii) make such assessment available to the public housing 
     agency and to the public via the website of the Department of 
     Housing and Urban Development; and
       ``(iii) submit a report to Congress regarding the results 
     of each such assessment.
       ``(D) Use of assessments to assist performance.--The 
     Secretary shall, by regulation and based upon the results of 
     the assessments of public housing agencies conducted under 
     this paragraph, establish procedures and mechanisms to assist 
     poorly performing public housing agencies in becoming ably 
     performing public housing agencies.''.

     SEC. 10. PHA PROJECT-BASED ASSISTANCE.

       Section 8(o)(13) of the United States Housing Act of 1937 
     (42 U.S.C. 1437f(o)(13)) is amended--
       (1) by striking subparagraph (B) and inserting the 
     following new subparagraph:
       ``(B) Percentage limitation.--
       ``(i) In general.--Subject to clause (ii), not more than 25 
     percent of the funding available for tenant-based assistance 
     under this section that is administered by the agency may be 
     attached to structures pursuant to this paragraph.
       ``(ii) Exception.--An agency may attach up to an additional 
     5 percent of the funding available for tenant-based 
     assistance under this section to structures pursuant to this 
     paragraph for dwelling units that house individuals and 
     families that meet the definition of homeless under section 
     103 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
     11302).'';
       (2) by striking subparagraph (D) and inserting the 
     following new subparagraph:
       ``(D) Income mixing requirement.--
       ``(i) In general.--Except as provided in clause (ii), not 
     more than the greater of 25 dwelling units or 25 percent of 
     the dwelling units in any project may be assisted under a 
     housing assistance payment contract for project-based 
     assistance pursuant to this paragraph. For purposes of this 
     subparagraph, the term `project' means a single building, 
     multiple contiguous buildings, or multiple buildings on 
     contiguous parcels of land.
       ``(ii) Exceptions.--

       ``(I) Certain housing.--The limitation under clause (i) 
     shall not apply in the case of assistance under a contract 
     for housing consisting of single family properties, or for 
     dwelling units that are specifically made available for 
     households comprised of elderly families, disabled families, 
     and families receiving supportive services only where 
     comprehensive services are provided to special populations 
     such as to individuals who were formerly homeless and other 
     populations with special needs. For purposes of the preceding 
     sentence, the term `single family properties' means buildings 
     with no more than 4 dwelling units.
       ``(II) Certain areas.--With respect to areas in which fewer 
     than 75 percent of families issued vouchers become 
     participants in the program, the public housing agency has 
     established the payment standard at 110 percent of the fair 
     market rent for all census tracts in the area for the 
     previous 6 months, the public housing agency has requested a 
     higher payment standard, and the public housing agency grants 
     an automatic extension of 90 days (or longer) to families 
     with vouchers who are attempting to find housing, clause (i) 
     shall be applied by substituting `40 percent' for `25 
     percent'.'';

       (3) in the first sentence of subparagraph (F), by striking 
     ``10 years'' and inserting ``15 years'';
       (4) in subparagraph (G)--
       (A) by inserting after the period at the end of the first 
     sentence the following: ``Such contract may, at the election 
     of the public housing agency and the owner of the structure, 
     specify that such contract shall be extended for renewal 
     terms of up to 15 years each, if the agency makes the 
     determination required by this subparagraph and the owner is 
     in compliance with the terms of the contract.''; and
       (B) by adding at the end the following: ``A public housing 
     agency may agree to enter into such a contract at the time it 
     enters into the initial agreement for a housing assistance 
     payment contract or at any time thereafter that is before the 
     expiration of the housing assistance payment contract.'';
       (5) in subparagraph (H), by inserting before the period at 
     the end of the first sentence the following: ``, except that 
     in the case of a contract unit that has been allocated low-
     income housing tax credits and for which the rent limitation 
     pursuant to such section 42 is less than the amount that 
     would otherwise be permitted under this subparagraph, the 
     rent for such unit may, in the sole discretion of a public 
     housing agency, be established at the higher section 8 rent, 
     subject only to paragraph (10)(A)'';
       (6) in subparagraph (I)(i), by inserting before the 
     semicolon the following: ``, except that the contract may 
     provide that the maximum rent permitted for a dwelling unit 
     shall not be less than the initial rent for the dwelling unit 
     under the initial housing assistance payments contract 
     covering the unit'';
       (7) in subparagraph (J)--
       (A) by striking the fifth and sixth sentences and inserting 
     the following: ``A public housing agency may establish and 
     utilize procedures for maintaining site-based waiting lists 
     under which applicants may apply directly at, or otherwise 
     designate to the public housing agency, the project or 
     projects in which they seek to reside, except that all 
     applicants on the waiting list of an agency for assistance 
     under this subsection shall be permitted to place their names 
     on such separate list. All such procedures shall comply with 
     title VI of the Civil Rights Act of 1964, the Fair Housing 
     Act, and other applicable civil rights laws. The owner or 
     manager of a structure assisted under this paragraph shall 
     not admit any family to a dwelling unit assisted under a 
     contract pursuant to this paragraph other than a family 
     referred by the public housing agency from its waiting list, 
     or a family on a site-based waiting list that complies with 
     the requirements of this subparagraph. A public housing 
     agency shall fully disclose to each applicant each option in 
     the selection of a project in which to reside that is 
     available to the applicant.''; and
       (B) by inserting after the third sentence the following new 
     sentence: ``Any family who resides in a dwelling unit 
     proposed to be assisted under this paragraph, or in a unit to 
     be replaced by a proposed unit to be assisted under this 
     paragraph shall be given an absolute preference for selection 
     for placement in the proposed unit, if the family is 
     otherwise eligible for assistance under this subsection.''; 
     and
       (8) by adding at the end the following new subparagraphs:
       ``(L) Structure owned by agency.--Notwithstanding any other 
     provision of law, as part of an initiative to improve, 
     redevelop, or replace a public housing site, a public housing 
     agency may attach assistance to an existing, newly 
     constructed, or rehabilitated structure in which the public 
     housing agency has an ownership interest, without following a 
     competitive process, provided that the agency includes such 
     action in its public housing agency plan approved under 
     section 5A and the units that will receive such assistance 
     will not receive assistance under section 9. The preceding 
     sentence shall not be construed to limit a public housing 
     agency's ability to attach assistance to structures under 
     applicable law.
       ``(M) Use in cooperative housing and elevator buildings.--A 
     public housing agency may enter into a housing assistance 
     payments contract under this paragraph with respect to--

[[Page S1477]]

       ``(i) dwelling units in cooperative housing; and
       ``(ii) notwithstanding subsection (c), dwelling units in a 
     high-rise elevator project, including such a project that is 
     occupied by families with children, without review and 
     approval of the contract by the Secretary.
       ``(N) Reviews.--
       ``(i) Subsidy layering.--A subsidy layering review in 
     accordance with section 102(d) of the Department of Housing 
     and Urban Development Reform Act of 1989 (42 U.S.C. 3545(d)) 
     shall not be required for assistance under this subparagraph 
     in the case of a housing assistance payments contract for an 
     existing structure, or if a subsidy layering review has been 
     conducted by the applicable State or local agency.
       ``(ii) Environmental review.--A public housing agency shall 
     not be required to undertake any environmental review before 
     entering into a housing assistance payments contract under 
     this paragraph for an existing structure, except to the 
     extent such a review is otherwise required by law or 
     regulation.
       ``(O) Leases and tenancy.--Assistance provided under this 
     paragraph shall be subject to the provisions of paragraph 
     (7), except that subparagraph (A) of such paragraph shall not 
     apply.
       ``(P) Allowable transfers.--To promote regional mobility 
     and increase housing and economic opportunities through 
     expanded use of project-based voucher assistance, a public 
     housing agency may transfer a portion of its vouchers and 
     related budget authority to a public housing agency that 
     administers a program under this subsection in another 
     jurisdiction in the same or contiguous metropolitan area or 
     county. The Secretary shall encourage such voluntary 
     agreements and promptly execute the necessary funding and 
     contract modifications.''.

     SEC. 11. RENT BURDENS.

       (a) Reviews.--Section 8(o)(1) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437f(o)(1)) is amended by striking 
     subparagraph (E) and inserting the following new 
     subparagraph:
       ``(E) Reviews.--
       ``(i) Rent burdens.--

       ``(I) Monitor and report.--The Secretary shall monitor rent 
     burdens and submit a report to Congress annually on the 
     percentage of families assisted under this subsection, 
     occupying dwelling units of each size, that pay more than 30 
     percent of their adjusted incomes for rent and such 
     percentage that pay more than 40 percent of their adjusted 
     incomes for rent. Using information regularly reported by 
     public housing agencies, the Secretary shall provide public 
     housing agencies, on an annual basis, a report with the 
     information described in the first sentence of this clause, 
     and may require a public housing agency to modify a payment 
     standard that results in a significant percentage of families 
     assisted under this subsection, occupying dwelling units of 
     any size, paying more than 30 percent of their adjusted 
     incomes for rent. In implementing the requirements of this 
     clause, the Secretary shall distinguish excessive rent 
     burdens that result solely from the methods of determining a 
     family's rent contribution under section (3)(A)(3) or clauses 
     (ii) or (iii) of paragraph (2)(A) of this subsection.
       ``(II) Public availability.--Each public housing agency 
     shall make publicly available the information on rent burdens 
     provided by the Secretary pursuant to subclause (I), and, for 
     agencies located in metropolitan areas, the information on 
     concentration provided by the Secretary pursuant to clause 
     (ii).

       ``(ii) Concentration of poverty.--The Secretary shall 
     submit a report to Congress annually on the degree to which 
     families of particular racial and ethnic groups assisted 
     under this subsection in each metropolitan area are clustered 
     in higher poverty areas, and the extent to which greater 
     geographic distribution of such assisted families could be 
     achieved, including by increasing payment standards for 
     particular communities within such metropolitan areas.
       ``(iii) Public housing agency responsibilities.--If a 
     public housing agency has a high degree of concentration of 
     families of particular racial and ethnic groups clustered in 
     a higher poverty area or if such agency has more than 5 
     percent of families residing in units assisted under this 
     subsection who pay more than 40 percent of their adjusted 
     incomes for rent--

       ``(I) the public housing agency shall adjust its payment 
     standard or explain its reasons for not making such 
     adjustment; and
       ``(II) the Secretary may not deny the request of the public 
     housing agency to set a payment standard up to 120 percent of 
     the fair market rent to remedy excessive rent burdens or 
     undue concentration of families assisted under this 
     subsection in lower rent, higher poverty sections of a 
     metropolitan area, if the public housing agency--

       ``(aa) has conducted a thorough review of its payment 
     standards;
       ``(bb) conducts a thorough review of its rent 
     reasonableness policies and procedures, and properly conducts 
     a review of its rent reasonableness on an ongoing basis;
       ``(cc) has conducted outreach to landlords in all areas 
     within the service area of the public housing agency;
       ``(dd) provides search assistance to such families, if 
     undue concentration is the reason for the adjustment of the 
     payment standard;
       ``(ee) has completed a review of utility allowances and 
     burdens on such families; and
       ``(ff) the public housing agency has, for the previous 6-
     month period, had its payment standards set at 110 percent of 
     the fair market rent.''.
       (b) Public Housing Agency Plan.--Section 5A(d)(4) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437c-1(d)(4)) 
     is amended by inserting before the period at the end the 
     following: ``, including the report with respect to the 
     agency furnished by the Secretary pursuant to section 
     8(o)(1)(E) concerning rent burdens and, if applicable, 
     geographic concentration of voucher holders, any changes in 
     rent or other policies the public housing agency is making to 
     address excessive rent burdens or concentration, and if the 
     public housing agency is not adjusting its payment standard, 
     its reasons for not doing so.''.
       (c) Rent Burdens for Persons With Disabilities.--
     Subparagraph (D) of section 8(o)(1) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437f(o)(1)) is amended by 
     inserting before the period at the end the following: ``, 
     except that a public housing agency may establish a payment 
     standard of not more than 120 percent of the fair market rent 
     where necessary as a reasonable accommodation for a person 
     with a disability, without approval of the Secretary. A 
     public housing agency may seek approval of the Secretary to 
     use a payment standard greater than 120 percent of the fair 
     market rent as a reasonable accommodation for a person with a 
     disability''.
       (d) Rent Burdens for Voucher Holders in Low-Income Housing 
     Tax Credit Units.--Section 8(o)(10)(A) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437f(o)(10)(A)) is amended by 
     inserting before the period the following: ``, except that in 
     a unit receiving tax credits under section 42 of the Internal 
     Revenue Code or assistance under subtitle A of title II of 
     the Cranston-Gonzalez National Affordable Housing Act for 
     which a housing assistance contract not subject to paragraph 
     (13) is established--
       ``(i) no comparison with rent for units in the private, 
     unassisted local market shall be required if the rent is at 
     or below the rent for other comparable units receiving such 
     tax credits or assistance in the project that are not 
     occupied by tenant-based voucher holders; and
       ``(ii) the rent shall not be considered reasonable if it 
     exceeds the higher of (I) the rents charged for other 
     comparable units receiving such tax credits or assistance in 
     the project that are not occupied by tenant-based voucher 
     holders and (II) the payment standard established by the 
     public housing agency for a unit of the particular size.''.

     SEC. 12. ESTABLISHMENT OF FAIR MARKET RENT.

       (a) In General.--Paragraph (1) of section 8(c) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437f(c)(1)) is 
     amended--
       (1) by inserting ``(A)'' after the paragraph designation;
       (2) by striking the seventh, eighth, and ninth sentences; 
     and
       (3) by adding at the end the following:
       ``(B)(i) The Secretary shall endeavor to define market 
     areas for purposes of this paragraph in a manner that results 
     in fair market rentals that are adequate to cover typical 
     rental costs of units suitable for occupancy by persons 
     assisted under this section in as wide a range of communities 
     as is feasible, including communities with low poverty rates.
       ``(ii) The Secretary at a minimum shall define a separate 
     market area for each--
       ``(I) metropolitan city, as such term is defined in section 
     102(a) of the Housing and Community Development Act of 1974 
     (42 U.S.C. 5302(a)), with more than 40,000 rental dwelling 
     units; and
       ``(II) county or in the case of a county that includes a 
     metropolitan city specified in subclause (I), for the 
     remainder of that county located outside the boundaries of 
     such metropolitan city.

     The requirement under subclause (II) shall not apply to any 
     counties wholly within a metropolitan city specified in 
     subclause (I) or any counties in the following States: 
     Connecticut, Maine, Massachusetts, New Hampshire, Rhode 
     Island, or Vermont.
       ``(iii) Notwithstanding clause (ii), the Secretary may 
     establish minimum fair market rents within each State to 
     ensure that fair market rents in a State are adequate to 
     cover the cost of standard quality housing in that State.
       ``(iv) The Secretary shall, at the request of 1 or more 
     public housing agency, establish a separate market area for 
     part or all of the area under the jurisdiction of such 
     agency, if--
       ``(I) the requested market area contains at least 20,000 
     rental dwelling units;
       ``(II) the areas contained in the requested market area are 
     geographically contiguous and share similar housing market 
     characteristics;
       ``(III) adequate data are available to establish a reliable 
     fair market rental for the requested market area, and for the 
     remainder of the market area in which it is currently 
     located; and
       ``(IV) establishing the requested market area would raise 
     or lower the fair market rental by 10 percent or more at the 
     time the requested market area is established.

     For purposes of subclause (III), data for an area shall be 
     considered adequate if they are sufficient to establish from 
     time to time a reliable benchmark fair market rental based 
     primarily on data from that area, whether or not those data 
     need to be supplemented with

[[Page S1478]]

     data from a larger area for purposes of annual updates.
       ``(v) The Secretary shall not reduce the fair market rental 
     in a market area as a result of a change in the percentile of 
     the distribution of market rents used to establish the fair 
     market rental.''.
       (b) Payment Standard.--Subparagraph (B) of section 8(o)(1) 
     of the United States Housing Act of 1937 (42 U.S.C. 
     1437f(o)(1)(B)) is amended by inserting before the period at 
     the end the following: ``, except that no public housing 
     agency shall be required as a result of a reduction in the 
     fair market rental to reduce the payment standard applied to 
     a family continuing to reside in a unit for which the family 
     was receiving assistance under this section at the time the 
     fair market rental was reduced''.

     SEC. 13. SCREENING OF APPLICANTS.

       Subparagraph (B) of section 8(o)(6) of the United States 
     Housing Act of 1937 (1437f(o)(6)(B)) is amended--
       (1) by inserting after the period at the end of the second 
     sentence the following: ``A public housing agency's elective 
     screening shall be limited to criteria that are directly 
     related to an applicant's ability to fulfill the obligations 
     of an assisted lease and shall consider mitigating 
     circumstances related to such applicant. The requirements of 
     the prior sentence shall not limit the ability of a public 
     housing agency to deny assistance based on the applicant's 
     criminal background or any other permissible grounds for 
     denial under subtitle F of title V of the Quality Housing and 
     Work Responsibility Act of 1998 (42 U.S.C. 13661 et seq., 
     relating to safety and security in public and assisted 
     housing), subject to the procedural requirements of this 
     section. Any applicant or participant determined to be 
     ineligible for admission or continued participation to the 
     program shall be notified of the basis for such determination 
     and provided, within a reasonable time after the 
     determination, an opportunity for an informal hearing on such 
     determination at which mitigating circumstances, including 
     remedial conduct subsequent to the conduct that is the basis 
     of such consideration.''; and
       (2) by adding at the end the following: ``Public housing 
     tenants requesting tenant-based voucher assistance under this 
     subsection to relocate from public housing as a result of the 
     demolition or disposition of public housing shall not be 
     considered new applicants under this paragraph and shall not 
     be subject to elective screening by the public housing 
     agency.''.

     SEC. 14. ENHANCED VOUCHERS.

       (a) In General.--Section 8(t)(1) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437f(t)(1)) is amended--
       (1) in the matter preceding subparagraph (A), by inserting 
     ``and shall not require that the family requalify under the 
     selection standards for a public housing agency in order to 
     be eligible for such assistance'' after ``subsection (o)''; 
     and
       (2) by amending subparagraph (B) to read as follows:
       ``(B)(i) the assisted family may elect to remain in the 
     same project in which the family was residing on the date of 
     the eligibility event for the project regardless of unit and 
     family size standards normally used by the administering 
     public housing agency (except that tenants may be required to 
     move to units of appropriate size if available on the 
     premises), and the owner of the unit shall accept the 
     enhanced voucher and terminate the tenancy only for serious 
     or repeated violation of the terms and conditions of the 
     lease or for violation of applicable law; and
       ``(ii) if, during any period the family makes such an 
     election and continues to so reside, the rent for the 
     dwelling unit of the family in such project exceeds the 
     applicable payment standard established pursuant to 
     subsection (o) for the unit, the amount of rental assistance 
     provided on behalf of the family shall be determined using a 
     payment standard that is equal to the rent for the dwelling 
     unit (as such rent may be increased from time-to-time), 
     subject to paragraph (10)(A) of subsection (o) and any other 
     reasonable limit prescribed by the Secretary, except that a 
     limit shall not be considered reasonable for purposes of this 
     subparagraph if it adversely affects such assisted 
     families;''.
       (b) Rulemaking.--Not later than 6 months after the date of 
     enactment of this Act, the Secretary of Housing and Urban 
     Development shall promulgate regulations implementing the 
     amendments made by subsection (a).

     SEC. 15. PROJECT-BASED PRESERVATION VOUCHERS.

       (a) Enhanced Vouchers.--Section 8(t) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437(t)(1)) is amended by 
     adding at the end the following new paragraph:
       ``(5) Authorization of preservation project-based voucher 
     assistance in lieu of enhanced voucher assistance.--
     Notwithstanding any other provision of law, preservation 
     project-based voucher assistance may be provided pursuant to 
     subsection (o)(13)(Q) in lieu of enhanced voucher assistance 
     at the request of the owner of the multifamily housing 
     project, subject to the determinations of the public housing 
     agency pursuant to clause (ii) of subsection (o)(13)(Q). 
     Preservation project-based voucher assistance provided 
     pursuant to subsection (o)(13)(Q) in lieu of enhanced voucher 
     assistance shall be subject to the provisions of subsection 
     (o)(13)(Q) and shall not be subject to the provisions of this 
     subsection.''.
       (b) PHA Project-Based Assistance.--Section 8(o)(13) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) is 
     amended by adding at the end the following new subparagraph:
       ``(Q) Preservation project-based voucher assistance.--
       ``(i) In general.--The Secretary is authorized to provide 
     assistance under this paragraph in lieu of enhanced voucher 
     assistance under subsection (t) to a public housing agency 
     that enters into a contract with an owner of a multifamily 
     housing project upon the occurrence of an eligibility event 
     with respect to the project as defined in subsection (t)(2). 
     All owners of projects for which enhanced voucher assistance 
     would otherwise be provided may request and receive a 
     contract for preservation project-based voucher assistance at 
     the project in lieu of enhanced voucher assistance upon the 
     occurrence of an eligibility event with respect to the 
     project, subject to the determinations of the public housing 
     agency in clause (ii). The contract shall cover all of the 
     units in the project for which enhanced voucher assistance 
     would otherwise be provided under subsection (t).
       ``(ii) Public housing agency determinations.--Prior to 
     entering into a contract pursuant to this subparagraph, the 
     public housing agency shall have determined that (I) the 
     housing to be assisted hereunder is economically viable, and 
     that (II) there is significant demand for the housing, or the 
     housing will contribute to a concerted community 
     revitalization plan or to the goal of deconcentrating poverty 
     and expanding housing and economic opportunities, or the 
     continued affordability of the housing otherwise is an 
     important asset to the community. The determinations of the 
     public housing agency required in the previous sentence shall 
     be in lieu of meeting the requirements of subparagraph (C).
       ``(iii) Special rules.--Funding provided for preservation 
     project-based voucher assistance pursuant to this 
     subparagraph shall be disregarded for the purpose of 
     calculating the limitation on attaching funding to structures 
     otherwise applicable to public housing agency project-based 
     assistance pursuant to subparagraph (B). Assistance under 
     this subparagraph shall not be subject to the requirements of 
     subparagraph (D).
       ``(iv) Eligibility.--Notwithstanding any other provision of 
     law, each family residing in a project on the date of the 
     eligibility event that would otherwise be eligible for 
     enhanced voucher assistance under subsection (t) shall be 
     eligible for preservation project-based voucher assistance 
     under this subparagraph.''.

     SEC. 16. DEMONSTRATION PROGRAM WAIVER AUTHORITY.

       (a) Authority To Enter Into Agreements.--Notwithstanding 
     any other provision of law, the Secretary of Housing and 
     Urban Development may enter into such agreements as may be 
     necessary with the Social Security Administration and the 
     Secretary of Health and Human Services to allow for the 
     participation, in any demonstration program described in 
     subsection (c), by the Department of Housing and Urban 
     Development and the use under such program of housing choice 
     vouchers under section 8(o) of the United States Housing Act 
     of 1937 (42 U.S.C. 1437f(o)).
       (b) Waiver of Income Requirements.--The Secretary of 
     Housing and Urban Development may, to the extent necessary to 
     allow rental assistance under section 8(o) of the United 
     States Housing Act of 1937 to be provided on behalf of 
     persons described in subsection (c) who participate in a 
     demonstration program described in such subsection, and to 
     allow such persons to be placed on a waiting list for such 
     assistance, partially or wholly disregard increases in earned 
     income for the purpose of rent calculations under section 3 
     for such persons.
       (c) Demonstration Programs.--A demonstration program 
     described in this subsection is a demonstration program of a 
     State that provides for persons with significant disabilities 
     to be employed and continue to receive benefits under 
     programs of the Department of Health and Human Services and 
     the Social Security Administration, including the program of 
     supplemental security income benefits under title XVI of the 
     Social Security Act, disability insurance benefits under 
     title II of such Act, and the State program for medical 
     assistance (Medicaid) under title XIX of such Act.

     SEC. 17. STUDY TO IDENTIFY OBSTACLES TO USING VOUCHERS IN 
                   FEDERALLY SUBSIDIZED HOUSING PROJECTS.

       (a) Study.--The Comptroller General of the United States 
     shall conduct a study of (1) the housing voucher program 
     authorized under section 8(o) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437f(o)), and (2) other federally 
     subsidized housing programs, to determine whether any 
     statutory, regulatory, or administrative provisions of the 
     housing voucher program or of other federally subsidized 
     housing programs, or policies and practices of housing owners 
     or public housing agencies or other agencies, may have the 
     effect of making occupancy by voucher holders in federally 
     subsidized housing projects more difficult to obtain than 
     occupancy by non-voucher holders. In conducting the study 
     required under this subsection the Comptroller General shall 
     determine if any gaps exist in the statute, regulations, or 
     administration of the housing voucher program or of other 
     federally subsidized housing programs and policies and

[[Page S1479]]

     practices of housing owners or public housing agencies or 
     other agencies that, if addressed, could eliminate or reduce 
     obstacles to voucher holders in seeking occupancy in 
     federally subsidized housing projects. Such study shall 
     include data on the use of housing vouchers in federally 
     subsidized housing projects.
       (b) Definition.--As used in this section, the term 
     ``federally subsidized housing projects'' includes projects 
     assisted pursuant to the HOME investment partnerships program 
     under title II of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 12721 et seq.) and those projects 
     receiving the benefit of low-income housing credits under 
     section 42 of the Internal Revenue Code of 1986 (26 U.S.C. 
     42).
       (c) Report.--Not later than 6 months after the date of 
     enactment of this Act, the Comptroller General shall report 
     to Congress the findings from the study required under 
     subsection (a) and any recommendations for statutory, 
     regulatory, or administrative changes.

     SEC. 18. COLLECTION OF DATA ON TENANTS IN PROJECTS RECEIVING 
                   TAX CREDITS.

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

     ``SEC. 36. COLLECTION OF DATA ON TENANTS IN PROJECTS 
                   RECEIVING TAX CREDITS.

       ``(a) In General.--State agencies administering credits 
     under section 42 of the Internal Revenue Code shall furnish 
     to the Secretary of Housing and Urban Development, not less 
     than annually, data concerning the race, ethnicity, family 
     composition, age, income, use of rental assistance under 
     section 8(o) of the United States Housing Act of 1937 or 
     other similar assistance, disability status, and monthly 
     rental payments of households residing in each property 
     receiving such credits. State agencies shall, to the extent 
     feasible, collect such data through existing reporting 
     processes and in a manner that minimizes burdens on property 
     owners. In the case of a household continuing to reside in 
     the same unit, such data may rely on information provided by 
     the household in a previous year for categories of 
     information that are not subject to change or if information 
     for the current year is not readily available to the owner of 
     the property.
       ``(b) Standards and Definitions.--The Secretary of Housing 
     and Urban Development shall--
       ``(1) by rule, establish standards and definitions for the 
     data collected under subsection (a);
       ``(2) provide States with technical assistance in 
     establishing systems to compile and submit such data; and
       ``(3) in coordination with other Federal agencies 
     administering housing programs, establish procedures to 
     minimize duplicative reporting requirements for properties 
     assisted under multiple housing programs.
       ``(c) Public Availability of Reports.--The Secretary of 
     Housing and Urban Development shall compile and make publicly 
     available not less than annually the data furnished by State 
     agencies under subsection (a).
       ``(d) Authorization of Appropriations.--There are 
     authorized to be appropriated $2,500,000 for fiscal year 2009 
     and $900,000 for each of the fiscal years 2010 to 2013 to 
     cover the cost of the activities required under subsections 
     (b) and (c).''.

     SEC. 19. AGENCY AUTHORITY FOR UTILITY PAYMENTS IN CERTAIN 
                   CIRCUMSTANCES.

       Section 8(o) of the United States Housing Act of 1937 (42 
     U.S.C. 1437f(o)) is amended by adding at the end the 
     following new paragraph:
       ``(23) Authority of public housing agencies to make direct 
     payments for utilities when owner fails to pay.--
       ``(A) In general.--If the owner has failed to pay for 
     utilities that are the responsibility of the owner under the 
     lease or applicable law, the public housing agency is 
     authorized to utilize subsidy payments otherwise due the 
     owner to pay for continued utility service to avoid hardship 
     to program participants.
       ``(B) Notice.--Before making utility payments as described 
     in subparagraph (A), the public housing agency shall take 
     reasonable steps to notify the owner that it intends to make 
     payments to a utility provider in lieu of payments to the 
     owner, except prior notification shall not be required in any 
     case in which the unit will be or has been rendered 
     uninhabitable due to the termination or threat of termination 
     of service, in which case the public housing agency shall 
     notify the owner within a reasonable time after making such 
     payment.''.

     SEC. 20. ACCESS TO HUD PROGRAMS FOR PERSONS WITH LIMITED 
                   ENGLISH PROFICIENCY.

       (a) HUD Responsibilities.--To allow the Department of 
     Housing and Urban Development to better serve persons with 
     limited proficiency in the English language by providing 
     technical assistance to recipients of Federal funds, the 
     Secretary of Housing and Urban Development shall take the 
     following actions:
       (1) Task force.--Within 90 days after the enactment of this 
     Act, convene a task force comprised of appropriate industry 
     groups, recipients of funds from the Department of Housing 
     and Urban Development (in this section referred to as the 
     ``Department''), community-based organizations that serve 
     individuals with limited English proficiency, civil rights 
     groups, and stakeholders, which shall identify a list of 
     vital documents, including Department and certain property 
     and other documents, to be competently translated to improve 
     access to federally conducted and federally assisted programs 
     and activities for individuals with limited English 
     proficiency. The task force shall meet not less frequently 
     than twice per year.
       (2) Translations.--Within 6 months after identification of 
     documents pursuant to paragraph (1), produce translations of 
     the documents identified in all necessary languages and make 
     such translations available as part of the library of forms 
     available on the website of the Department and as part of the 
     clearinghouse developed pursuant to paragraph (4).
       (3) Plan.--Develop and carry out a plan that includes 
     providing resources of the Department to assist recipients of 
     Federal funds to improve access to programs and activities 
     for individuals with limited English proficiency, which plan 
     shall include the elements described in paragraph (4).
       (4) Housing information resource center.--Develop and 
     maintain a housing information resource center to facilitate 
     the provision of language services by providers of housing 
     services to individuals with limited English proficiency. 
     Information provided by such center shall be made available 
     in printed form and through the Internet. The resources 
     provided by the center shall include the following:
       (A) Translation of written materials.--The center may 
     provide, directly or through contract, vital documents from 
     competent translation services for providers of housing 
     services.
       (B) Toll-free customer service telephone number.--The 
     center shall provide a 24-hour toll-free interpretation 
     service telephone line, by which recipients of funds of the 
     Department and individuals with limited English proficiency 
     may--
       (i) obtain information about federally conducted or 
     federally assisted housing programs of the Department;
       (ii) obtain assistance with applying for or accessing such 
     housing programs and understanding Federal notices written in 
     English; and
       (iii) communicate with housing providers. and learn how to 
     access additional language services.

     The toll-free telephone service provided pursuant to this 
     subparagraph shall supplement resources in the community 
     identified by the plan developed pursuant to paragraph (3).
       (C) Document clearinghouse.--The center shall collect and 
     evaluate for accuracy or develop, and make available, 
     templates and documents that are necessary for consumers, 
     relevant industry representatives, and other stakeholders of 
     the Department, to access, make educated decisions, and 
     communicate effectively about their housing, including--
       (i) administrative and property documents;
       (ii) legally binding documents;
       (iii) consumer education and outreach materials;
       (iv) documents regarding rights and responsibilities of any 
     party; and
       (v) remedies available to consumers.
       (D) Study of language assistance programs.--The center 
     shall conduct a study that evaluates best-practices models 
     for all programs of the Department that promote language 
     assistance and strategies to improve language services for 
     individuals with limited English proficiency. Not later than 
     18 months after the date of the enactment of this Act, the 
     center shall submit a report to the Committee on Banking, 
     Housing, and Urban Affairs of the Senate and the Committee on 
     Financial Services of the House of Representatives, which 
     shall provide recommendations for implementation, specific to 
     programs of the Department, and information and templates 
     that could be made available to all recipients of grants from 
     the Department.
       (E) Cultural and linguistic competence materials.--The 
     center shall provide information relating to culturally and 
     linguistically competent housing services for populations 
     with limited English proficiency.
       (b) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as may be necessary to carry out 
     subsection (a).
       (c) Report.--Not later than the expiration of the 6-month 
     period beginning on the date of the enactment of this Act, 
     and annually thereafter, the Secretary of Housing and Urban 
     Development shall submit a report regarding its compliance 
     with the requirements under subsection (a) to the Committee 
     on Banking, Housing, and Urban Affairs of the Senate and the 
     Committee on Financial Services of the House of 
     Representatives.

     SEC. 21. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated the amount necessary 
     for each of fiscal years 2009 through 2013 to provide public 
     housing agencies with incremental tenant-based assistance 
     under section 8(o) of the United States Housing Act of 1937 
     (42 U.S.C. 1437f(o)) sufficient to assist 20,000 incremental 
     dwelling units in each such fiscal year. A preference for 
     allocation of such incremental tenant-based assistance, as 
     part of the competitive process required by section 213(d) of 
     the Housing and Community Development Act of 1974 (42 U.S.C. 
     1439(d)), is to be given to (1) preserving affordable 
     housing, including State public housing, and other housing 
     that needs operating support in order to remain affordable, 
     and (2) entities that are providing voucher assistance on a 
     regional basis.

[[Page S1480]]

     SEC. 22. EFFECTIVE DATE.

       (a) In General.--Except as otherwise specifically provided 
     in this Act, this Act and the amendments made by this Act, 
     shall take effect on January 1, 2009.
       (b) Exception.--
       (1) Rent reforms.--Sections 3, 4, and 12 of this Act, and 
     the amendments made by such sections, shall take effect 
     beginning of the first day of fiscal year 2010, and shall 
     apply to each fiscal year thereafter.
       (2) Notification requirement.--Beginning on the date of 
     enactment of this Act, public housing agencies and owners of 
     dwelling units assisted under title I of the United States 
     Housing Act of 1937 (42 U.S.C. 1437 et seq.) shall notify 
     tenants as soon as possible of the--
       (A) major changes made by the amendments in sections 3 and 
     4, and how such changes affect the current tenants occupying 
     such units; and
       (B) potential effects of such changes on current tenants in 
     general.
                                  ____


             Supporters of the Section 8 Voucher Reform Act

       Action Housing, Inc. (Pittsburgh, PA); American Association 
     of Homes and Services for the Aging; ANCOR (American Network 
     of Community Options and Resources); Anti-Displacement 
     Project; The Arc; California Coalition for Rural Housing; 
     California Housing Partnership Corporation; Cambridge Housing 
     Authority (Mass); Center on Budget and Policy and Priorities; 
     Chicago Community Development Corporation; Chicago Rehab 
     Network; Cleveland Housing Network; Cleveland Tenant 
     Organization; Coalition for Economic Survival (Los Angeles); 
     Coalition on Homelessness & Housing in Ohio; Community 
     Alliance of Tenants (Oregon); Community Capital Corporation 
     (Colorado); Community Economic Development Assistance 
     Corporation (Mass.); Connecticut Coalition to End 
     Homelessness; Connecticut Housing Coalition.
       Connecticut Housing Finance Agency; Connecticut Public 
     Housing Resident Network; Consortium for Citizens with 
     Disabilities; Corporation for Supportive Housing; Council for 
     Affordable and Rural Housing; Council of Large Public Housing 
     Authorities; Emily Achtenberg, Housing Policy & Development 
     Consultant; Enterprise Community Partners; Great Lakes 
     Capital Fund; Greater Hartford Legal Aid; Greater New Orleans 
     Fair Housing Action Center; Housing Action Illinois; Housing 
     Alliance of Pennsylvania; Housing and Community Development 
     Network of New Jersey; Housing Assistance Council; Housing 
     Development Corporation of Lancaster County; Housing 
     Preservation Project (Minnesota); Institute of Real Estate 
     Management; Jewish Council for Public Affairs; Lawyers 
     Committee for Civil Rights Under Law.
       Local Initiatives Support Corporation; Mercy Housing; 
     Minnesota Housing Partnership; National Affordable Housing 
     Management Association; National Affordable Housing Trust; 
     National Alliance of Community Economic Development 
     Associations; National Alliance to End Homelessness; National 
     Alliance for the Mentally Ill; National Alliance of HUD 
     Tenants; National Apartment Association; National Association 
     of Home Builders; National Association of Realtors; National 
     Church Residences; National Council of State Housing 
     Agencies; National Disability Rights Network; National Fair 
     Housing Alliance; National Housing Conference; National 
     Housing Law Project; National Housing Trust; National Leased 
     Housing Association.
       National Low Income Housing Coalition; National Multi 
     Housing Council; New York City Department of Housing 
     Preservation & Development; Ohio Capital Corporation for 
     Housing; Opportunity Finance Network; Organize! Ohio; 
     Paralyzed Veterans of America; Partnership for Strong 
     Communities (CT); Poverty and Race Research Action Council; 
     Preservation of Affordable Housing; Public Housing Authority 
     Directors Association; Religious Action Center for Reform 
     Judaism; Retirement Housing Foundation; Southwestern PA 
     Alliance of HUD Tenants, Pittsburgh, PA; Stewards of 
     Affordable Housing for the Future; The Community Builders; 
     United Cerebral Palsy Disability Policy Collaboration; 
     Volunteers of America.
                                  ____


              Section 8 Voucher Reform Act of 2008 (SEVRA)

      Section 1. Short title
       Short title identifying the bill as the ``Section 8 Voucher 
     Reform Act of 2008.''
     Section 2. Inspection of dwelling units
       Makes a number of changes to the inspection requirements 
     for housing units rented to Section 8 voucher holders. 
     Retains the initial inspection requirement, except permits 
     occupancy and payments to be made for up to 30 days if a unit 
     fails inspection as a result only of non-life threatening 
     conditions. In such case, payments must be suspended after 30 
     days if the deficiencies are not corrected. Also allows a PHA 
     to permit occupancy prior to inspection if another federal 
     program inspection has been made within the preceding 12 
     months.
       Properties will be required to be re-inspected at least 
     every two years instead of annually. Permits use of 
     inspections under a federal, state, or local housing 
     assistance program in lieu of a public housing agency (PHA) 
     voucher inspection. Requires a PHA to conduct an interim 
     inspection within 15 days after a tenant notifies the PHA 
     that a unit is out of compliance and within 24 hours in the 
     case of a life threatening condition.
       If a property fails an inspection and the failure is not 
     corrected within 30 days, the PHA is required to abate 
     assistance for up to 120 days, and the PHA may use abated 
     assistance to repair life-threatening conditions. Requires a 
     PHA to terminate its contract with the owner at the end of 
     the abatement period if the unit is not repaired, and to 
     notify the tenant that they have 120 days to find new housing 
     beginning at the start of the abatement period. Requires that 
     PHAs provide reasonable assistance to the displaced tenant, 
     including the use of up to two months of abated assistance 
     for relocation expenses, and if necessary give the tenant 
     additional time to search for a unit or, at the tenant's 
     option, preference for the next available public housing 
     unit.
     Section 3. Rent reform and income reviews
       Recertification. Modifies the annual certification 
     requirement for the Section 8 voucher and project-based 
     assistance programs and for public housing to permit PHAs and 
     owners to recertify fixed-income families every three years. 
     Requires interim recertifications only if annual income 
     increases by $1,000 or more, or at a family's request if its 
     income falls by $1,000 or more.
       Simplification. Simplifies the rent calculation process for 
     the Section 8 voucher and project-based assistance programs 
     and for public housing so that there is more reliance on 
     standardized deductions. Raises the standard deduction for 
     elderly and disabled families from $400 to $700 a year, and 
     indexes that amount and the $480 dependent standard deduction 
     for inflation in subsequent years. Allows deduction of 
     unreimbursed child care expenses above 5 percent of annual 
     income and raises the threshold for calculating medical and 
     handicapped assistance expense deductions from counting such 
     expenses over 3 percent to over 10 percent of income. 
     Contains administrative simplification provisions, including 
     relieving PHAs of the responsibility to maintain records of 
     HUD-required income exclusions, creating safe harbor for 
     reliance on other governmental income determinations (eg., 
     Medicaid, TANF), and eliminating the need to calculate any 
     imputed return on assets.
       Work and Education Incentives: To help provide incentives 
     for employment and earnings, a family's prior year's income 
     is used to calculate its rent obligation and the first 10% of 
     the first $9,000 of earned income is excluded from the income 
     calculation. Exempts income of minors (except for heads of 
     households or their spouses) and of adult dependents that are 
     full time students, and exempts grant-in-aid or scholarship 
     amounts used for tuition or books.
       Impact on Public Housing Revenues. Requires HUD to provide 
     additional public housing operating funds to public housing 
     agencies whose rental income declines by more than one half 
     of a percent as a result of the rent reforms in the bill, 
     subject to the availability of funds. Also requires HUD to 
     submit to Congress, a report identifying and calculating the 
     impact of rent reforms on public housing costs and revenues.
     Section 4. Eligibility for assistance based on assets and 
         income
       To better target assistance, prohibits any family from 
     receiving assistance if they have more than $100,000 in net 
     assets or an ownership in a residence suitable for occupancy. 
     Excludes from this a number of assets including homeownership 
     equity accounts and family self-sufficiency accounts, 
     necessary items of personal property, retirement and 
     education savings account assets, and amounts from certain 
     disability-related lawsuits. Also excludes properties owned 
     by victims of domestic violence and properties owned by 
     families making a good faith effort to sell. Allows 
     flexibility by permitting PHAs to elect not to enforce limits 
     for public housing residents, and PHAs and project-based 
     owners may delay eviction or termination of families not 
     meeting asset restrictions for up to six months.
       Extends the 80% of local area median income limitation that 
     applies to initial occupancy to apply on an ongoing basis 
     (determined at periodic recertification). PHAs and owners may 
     elect not to enforce this income limitation for residents of 
     public housing or project-based Section 8 units, and PHAs and 
     owners may delay eviction or termination for up to six 
     months.
     Section 5. Targeting vouchers to low income working families
       To address needs in very-low income areas, allows the 
     higher of 30% of area median income or the national poverty 
     level to be used as the income threshold for extremely-low 
     income families.
     Section 6. Voucher funding renewal
       Authorizes such sums as may be necessary for Fiscal Years 
     2009 through 2013 for the renewal of expiring Section 8 
     vouchers, and for new tenant protection, enhanced vouchers, 
     and other special purpose vouchers.
       Stabilizes the voucher renewal formula to provide adequate 
     and predictable funding each year. The voucher funding 
     allocation shall be re-calculated each year, based on a PHA's 
     leasing and cost data from the prior calendar year. Such 
     calculation is adjusted for an annual inflation factor as 
     well as the first time renewal of incremental, tenant 
     protection and enhanced vouchers; for vouchers set aside 
     for project-based assistance; for vouchers ported in the 
     prior year; and for such other adjustments as HUD 
     considers appropriate, including adjustments for

[[Page S1481]]

     natural and other major disasters. PHAs are provided 
     incentives to bring down voucher costs by allowing use of 
     vouchers above the authorized level, but overall cost 
     growth is constrained by limiting renewal funding to 103% 
     of their authorized voucher level if reserves were used.
       To ensure funds are available when there are market or 
     program income fluctuations, PHAs may retain reserves equal 
     to one eighth (12.5%, or \1/2\ months) of their annual 
     allocation at the end of 2008, 7.5 percent at the end of 
     2009, and 5% in each succeeding year. To implement the 
     limitation on reserve funds, at the end of each year, HUD is 
     required to reduce a PHA's funding allocation for the 
     following year to offset excess reserves. HUD is required to 
     make available all savings from such offsets to cover 
     increased costs related to portability and family self-
     sufficiency escrow accounts, and for reallocation to PHAs for 
     increased voucher leasing and to reward good performance. If 
     a PHA has reserves of less than 2%, it can receive an advance 
     of up to 2% in the last three months of a year to cover 
     overages, which it ``repays'' through an offsetting funding 
     reduction in the next year's funding allocation.
       Provides for proration if overall funding is insufficient 
     to meet nationwide costs, except that enhanced vouchers shall 
     be fully funded. HUD is required to allocate all funds by the 
     later of February 15th or 45 days after enactment of the 
     appropriations bill funding renewals.
       Tenant protection vouchers
       Requires HUD to issue tenant protection vouchers, including 
     enhanced vouchers for all public and assisted housing units 
     that are lost (not just those occupied at time of application 
     for such vouchers).
       Portability
       Requires PHAs to absorb ported vouchers from other PHAs 
     starting on January 1, 2010, except that agencies are 
     directed to phase in the absorption of the existing backlog 
     of ported vouchers. Permits HUD to limit absorption in excess 
     of a PHA's authorized level if HUD determines that there is 
     insufficient funding. PHAs that absorb ported vouchers 
     receive priority to be awarded excess funds to cover the 
     resulting costs. If funds are inadequate to cover the costs 
     of absorbed portability vouchers, HUD is directed to suspend 
     the absorption requirement after providing 60 days notice to 
     PHAs and the public.
       Vouchers for people with disabilities
       HUD is required to develop and issue guidance to ensure 
     that incremental vouchers for disabled families will continue 
     to be provided to such families upon voucher turnover.
     Section 7. Administrative fees
       Continues the current practice setting voucher 
     administrative fees based on the number of vouchers in use 
     and retains the Fiscal Year 2003 per unit fee as a baseline 
     (adjusted for inflation) unless HUD establishes a new formula 
     for calculating per unit fees by regulation.
       Family self sufficiency
       To assist in administering the successful Family Self 
     Sufficiency Program (FSS), this section provides that voucher 
     administrative fees will include a fee for FSS, based on the 
     number of families being served, subject to performance 
     standards to be established by the Secretary. Provides for 
     proration if insufficient funds are appropriated to meet all 
     costs under this provision, with a priority for funding at 
     least one coordinator at each eligible agency. In addition, 
     this section authorizes $10 million for an evaluation of the 
     effectiveness of FSS programs.
     Section 8. HOMEOWNERSHIP
       This section continues the voucher homeownership program 
     and permits voucher funds to be used for a down payment for 
     first-time homebuyers, up to $10,000.
       Facilitates use of vouchers for the full cost of purchasing 
     manufactured homes sited on leased land, by permitting 
     voucher funds to be used for both the cost of leasing the 
     land plus monthly home purchase costs, including property 
     taxes, insurance, and tenant-paid utilities.
     Section 9 Performance assessments
       The section ensures that PHAs are administering their 
     voucher programs effectively by requiring HUD to assess 
     voucher administration. Under this section, assessment must 
     include the quality of units assisted, utilization of 
     allocated funds and authorized vouchers, timeliness and 
     accuracy of reporting to HUD, reasonableness of rent burdens, 
     accurate rent and utility calculations and subsidy payments, 
     effectiveness in carrying out family self-sufficiency 
     activities, timeliness of actions related to landlord 
     participation, and other factors as the HUD Secretary 
     considers appropriate. Assessments must be conducted 
     biannually, with results provided to Congress and the public 
     as well as to PHAs. HUD must establish by regulation the 
     procedures to be followed to bring poor performing agencies 
     into compliance.
     Section 10. PHA project-based assistance
       To facilitate housing development, this section increases 
     the maximum project-based voucher contract term from 10 to 15 
     years to be consistent with the underwriting period for the 
     Low Income Housing Tax Credit program and also provides that 
     rents for project-based vouchers shall not be reduced by 
     virtue of being used in conjunction with Low-Income Housing 
     Tax Credits.
       This section increases the percentage of vouchers a PHA can 
     project-base from 20% to 25%, with authority to go a further 
     5% higher to serve homeless people. This section also 
     increases the percentage of vouchers that can be project-
     based in any project (rather than building) to the greater of 
     25 dwelling units or 25% of the units in the project, with 
     authority to go up to 40% in areas where vouchers are hard to 
     use. Maintains an exception to this limitation for units 
     specifically made available for elderly and disabled families 
     or populations with special needs receiving comprehensive 
     services, and adds an exception for single family properties 
     with no more than four dwelling units.
       Allows a PHA to transfer vouchers and budget authority to 
     other PHAs in the same or adjacent metropolitan areas or 
     counties, to provide project-based assistance that will 
     promote mobility and increase housing and economic 
     opportunities. Directs HUD to encourage such transfers and 
     promptly carry out funding and contract modifications needed 
     to implement them.
     Section 11. Rent burdens
       Requires HUD to monitor voucher rent burdens and submit an 
     annual report to Congress on the percentage of families 
     nationwide paying more than 30% and 40% of their adjusted 
     income for rent. Requires HUD to submit an annual report to 
     Congress on the degree to which voucher families of 
     particular racial and ethnic groups are clustered in lower-
     rent, higher poverty areas, and what can be done to achieve 
     greater geographic distribution.
       Requires PHAs to make information on local rent burdens and 
     poverty concentrations available to the public. If the 
     percentage of voucher families paying more than 40% of income 
     for rent exceeds 5%, or families of particular racial and 
     ethnic groups are concentrated in higher poverty areas, the 
     PHA must either raise the payment standard or explain why 
     payment standards are not being raised. HUD is required to 
     approve requests to raise payment standards in such 
     circumstances up to 120% of FMR, if the PHA has conducted a 
     thorough review of its payment standards and rent 
     reasonableness procedures and taken a series of other steps 
     to ease rent burdens and expand housing opportunities. As a 
     reasonable accommodation for a person with a disability, a 
     PHA may increase payment standards up to 120% of the FMR 
     without approval from HUD, and HUD may approve requests for 
     payment standards above 120% of the FMR.
     Section 12. Establishment of fair market rent
       To ensure that Fair Market Rents (FMRs) are accurate, this 
     section requires separate FMRs for each metropolitan city 
     with over 40,000 rental units and each county (except 
     counties that are located entirely within metropolitan cities 
     with over 40,000 rental units or in the New England states).
     Section 13. Screening of applicants
       This section ensures fair decisions about program 
     eligibility by limiting a PHA's elective screening of 
     applicants to criteria that directly relate to an applicant's 
     ability to fulfill the obligations of the lease, while 
     retaining the ability of a PHA to deny eligibility based on 
     criminal background and reasons relating to safety and 
     security. Applicants and current participants are required to 
     be notified of the basis of any determination of 
     ineligibility, and are to be provided an informal hearing to 
     present mitigating circumstances in such cases.
     Section 14. Enhanced vouchers
       This section ensures that families can remain in their 
     housing, by providing that families may receive enhanced 
     vouchers in the case of a property prepayment or opt-out even 
     if they reside in oversized units, except that such tenants 
     may be required to move to appropriate sized units and 
     provides that families eligible for enhanced vouchers are not 
     required to requalify under the PHA's selection standards. 
     Directs HUD to issue implementing regulations within six 
     months after the bill is enacted.
     Section 15. Project-based preservation vouchers
       Authorizes provision of project-based vouchers in lieu of 
     enhanced vouchers (which are provided as continued housing 
     assistance where an owner prepays a HUD-insured mortgage or 
     upon the termination of a Section 8 contract), at the request 
     of a project owner and a determination by the PHA that the 
     building is economically viable and assisted units in the 
     building will be in significant demand or will further 
     community goals. Families otherwise eligible for enhanced 
     vouchers will be eligible for preservation project-based 
     vouchers. Such preservation project-based vouchers are 
     similar to other project-based voucher assistance except they 
     are not counted against the limit on the share of a PHA's 
     voucher assistance that may be project-based, and are exempt 
     from the limit on the share of units in a building that may 
     be assisted with project-based vouchers.
     Section 16. Demonstration program waiver authority
       HUD is authorized to enter into agreements with the Social 
     Security Administration and the Secretary of Health and Human 
     Services to allow for participation in state demonstration 
     programs designed to permit persons with significant 
     disabilities to be employed and continue to receive a range 
     of federal benefits. HUD is authorized to permit a partial or 
     complete disregard of increases in earned income for persons 
     participating in any such demonstration for the purpose of

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     calculating rent contributions for housing assisted by 
     Section 8 vouchers.
     Section 17. Study to identify obstacles to using vouchers in 
         federally subsidized housing projects
       Requires GAO to conduct a study on what legislative, 
     regulatory and administrative requirements of federal housing 
     programs (HOME, LIHTC), or practices and policies of PHAs or 
     owners present obstacles to the use of vouchers in federally 
     assisted housing.
     Section 18. Collection of data on tenants in projects 
         receiving tax credits
       Requires state agencies administering Low-Income Housing 
     Tax Credits to submit annual data to HUD on the 
     characteristics of tenants in each Low-Income Housing Tax 
     Credit project. Instructs state agencies, to the extent 
     feasible, to collect data from owners through existing 
     reporting processes and in a manner that minimizes burdens on 
     property owners and directs HUD to establish standards and 
     definitions for data collection, establish procedures to 
     minimize duplicative reporting requirements for properties 
     assisted under multiple housing programs (in coordination 
     with other federal agencies administering housing programs), 
     provide states with technical assistance establishing data 
     systems, and compile and make publicly available data 
     submitted by states. Authorizes appropriations in Fiscal 
     Years 2009 through 2013 to cover costs to HUD related to data 
     collection.
     Section 19. Agency authority for utility payments in certain 
         circumstances
        In cases where an owner fails to make required utility 
     payments, this section authorizes the PHA to use voucher 
     subsidy payments normally due to the owner to pay for 
     continued utility service. Requires a PHA to take reasonable 
     steps to notify the owner before making direct utility 
     payments instead of payments to the owner, except that no 
     prior notification is required in cases where a utility 
     cutoff rendering the unit uninhabitable has occurred or is 
     threatened.
     Section 20. Access to HUD programs for persons with limited 
         English proficiency
        To facilitate compliance with the Executive Order 
     requiring program access to people with Limited English 
     Proficiency, this section directs HUD to convene a task force 
     to identify vital documents that need to be translated to 
     improve access to HUD services and make available 
     translations within six months after documents are identified 
     by the task force. Requires HUD to develop and carry out a 
     plan to establish a housing information resource center to 
     provide translations of written materials, provide a toll-
     free 24 hour interpretation service, and conduct a study of 
     best-practices.
        Authorizes appropriations to enable HUD to carry out the 
     requirements of this section, and directs HUD to submit a 
     report regarding its compliance within six months after 
     enactment.
     Section 21. Authorization of appropriations
        Authorizes appropriations for the amount necessary to 
     provide incremental vouchers for 20,000 families in each year 
     from fiscal year 2009 through 2013, and establishes 
     preferences for receipt of such assistance to preserve 
     affordable housing and for entities that provide voucher 
     assistance on a regional basis.
     Section 22. Effective date
        Provides that provisions of the bill take effect on 
     January 1, 2009, except for Sections 3, 4, and 13 (relating 
     to rents, income and asset limitations and fair market rents, 
     which will take effect at the start of fiscal year 2010). 
     Requires that PHAs and owners provide current tenants with 
     notification of the major changes in the bill regarding rent 
     policies and income and asset rules for continuing 
     eligibility as soon as possible after enactment.

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