[Congressional Record (Bound Edition), Volume 153 (2007), Part 13]
[House]
[Pages 18853-18889]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  SECTION 8 VOUCHER REFORM ACT OF 2007

  The SPEAKER pro tempore (Ms. Castor). Pursuant to House Resolution 
534 and rule XVIII, the Chair declares the House in the Committee of 
the Whole House on the state of the Union for the consideration of the 
bill, H.R. 1851.

                              {time}  1902


                     In the Committee of the Whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the state of the Union for the consideration of the bill 
(H.R. 1851) to reform the housing choice voucher program under section 
8 of the United States Housing Act of 1937, with Mr. Weiner in the 
chair.
  The Clerk read the title of the bill.
  The CHAIRMAN. Pursuant to the rule, the bill is considered read the 
first time.
  The gentlewoman from California (Ms. Waters) and the gentlewoman from 
Illinois (Mrs. Biggert) each will control 30 minutes.
  The Chair recognizes the gentlewoman from California.
  Ms. WATERS. Mr. Chairman, I yield to myself such time as I may 
consume.
  Mr. Chairman, I rise in strong support of H.R. 1851, the Section 8 
Voucher Reform Act of 2007. As you know, I introduced H.R. 1851 on 
March 29, 2007. I want to thank each of my colleagues, both on the 
Committee on Financial Services and in the House, who have joined with 
me to see that this important legislation passes the House. I 
especially want to thank Chairman Barney Frank for his leadership, 
Ranking Member Judy Biggert, and Christopher Shays for their original 
cosponsorship and support of H.R. 1851.
  It has been less than 2 months since the Committee on Financial 
Services considered major reforms to the section 8 program. The Section 
8 Voucher Reform Act of 2007, which passed the Committee on Financial 
Services by a vote of 52-9, is truly the culmination of work that began 
in the 109th Congress.
  There are many Members of Congress who have expressed major concerns 
to me about the future stability of the section 8 voucher program, 
given the recent changes in the funding formula and its impact on 
tenants. This bill addresses many of those problems and will return 
much needed stability to the section 8 program and the 2 million low-
income families who rely upon it.
  We heard from the U.S. Department of Housing and Urban Development, 
public housing agencies, national housing interest groups and 
advocates, and other housing experts about the importance of reforming 
the section 8 program. While there is consensus that the section 8 
program needed to be reformed, HUD disagrees on how to reform the 
program.
  National housing organizations like the National Low Income Housing 
Coalition and the Center on Budget and Policy Priorities which 
represent those directly affected by the change in the funding formula 
agree that basing the funding for a program as important as the voucher 
program on data that is 3 years old is just simply bad policy.
  In 2004, Congress changed how we paid public housing authorities for 
vouchers under lease. Instead of paying the actual cost of the voucher, 
the decision was made to pay for what the voucher cost during a 3-month 
period in the previous year. This had disastrous consequences for PHAs. 
Many saw a cut in their funding.
  While section 8 recipients had to bear the brunt of this policy 
change as waiting lists closed, many low-income families who had been 
waiting for affordable housing for years suddenly found housing denied 
to them. Because of cost concerns, some families were denied their 
right to move to areas that may have been a bit more expensive but had 
better job and educational opportunities. Some families saw an increase 
in rent as many PHAs scrambled to cut costs.
  As families struggled under this formula, so did some of our Nation's 
largest PHAs. The snapshot funding system had consistently and has 
consistently underpaid some PHAs to the benefit of others. Because of 
the funding instability, these PHAs had no reason to house more 
families. As a result, housing authorities are sitting on $1.4 billion 
in unspent voucher funds. This nonuse of our voucher dollars is 
unacceptable because we have lost 150,000 vouchers as a direct result 
of the funding formula.
  Clearly, this formula must be changed for the good of public housing 
agencies and the families they serve. HUD is just wrong in this issue. 
I flatly reject their just-released statement of policy on the bill. 
H.R. 1851 updates the voucher formula by basing funding for vouchers on 
the previous year's leasing and cost data.
  The use of more accurate data will ensure that we stop overpaying and 
underpaying PHAs for vouchers, but instead come as close as we can to 
paying the actual cost of the voucher. This will enable HUD to better 
control costs than the section 8 voucher program. This funding approach 
was recently embraced by both Houses of Congress in H.J. Res. 20.
  Vouchers are a scarce resource, but are even scarcer since the 
funding formula changed in 2004. Only one out of four families who are 
eligible for housing assistance, including vouchers, actually receive 
it. H.R. 1851 provides PHAs with several resources for increasing the 
number of families they serve.
  First, the bill provides for the recapture and redistribution of most 
unspent voucher funds for housing agencies that have chosen not to use 
these dollars to PHAs that are capable and willing to spend them. This 
reallocation system will provide PHAs with an incentive to house more 
families.

[[Page 18854]]

  Second, the bill provides tools for PHAs to pay for increased costs 
or emergencies without having to cut assistance to families or to 
request new funding from the HUD or the Congress. The bill allows PHAs 
to retain up to a 1-month reserve in the formula's first year. For 
those PHAs that need additional funds, the bill allows them to borrow 
up to 2 percent of their budget authority, to be repaid within the 
first 3 months of the following year.
  Third, the bill provides an authorization of appropriation for 20,000 
new incremental vouchers per year for 5 years. Congress has not 
authorized new vouchers since 2002.
  During this period, we all know that the need for voucher assistance 
has grown, not declined. We are not meeting the need for housing 
vouchers for very low-income persons in this country, working families, 
the disabled and elderly. Additional vouchers are needed to make sure 
that the voucher program continues to keep up with the ever-expanding 
need for affordable housing in this Nation.
  Fourth, the bill provides incentives for PHAs to increase families 
served by tying administrative funding to the number of families 
housed.
  Fifth, the bill restores housing choice, an important feature of the 
voucher program which has been lost because of cost concerns. H.R. 1851 
would eliminate the complex billing process between PHAs using portable 
vouchers.
  Mr. Chairman, this is a bill that will restore stability and 
predictability to the Nation's largest Federal housing program by 
fixing the broken funding formula. H.R. 1851 provides for the needs of 
the families, public housing agencies and landlords who participate in 
this program.
  The funding formula, however, is not the only aspect of the section 8 
program in need of reform. Today, housing agencies and program 
recipients must deal with the complicated set of rules for the 
determination of rent, recertification of income and inspection of 
housing units. H.R. 1851 simplifies those requirements, while 
maintaining current affordable standards.
  H.R. 1851 also includes tools to encourage voucher families to move 
to economic self-sufficiency. Families should not have to pay more in 
rent because they want to work to provide for their families. By 
disregarding a portion of earned income, H.R. 1851 would protect 
families from any resultant increases in rent.
  Families also shouldn't be penalized for pursuing educational 
opportunities. Currently, many families in the voucher and public 
housing programs can find themselves excluded from work and economic 
opportunities because of a lack of credit history or low credit scores. 
The bill would allow the Department to work with the Nation's credit 
bureaus to allow for the reporting of the rental payment history of 
voucher and public housing recipients.
  In addition, the bill will increase homeownership opportunities for 
voucher families by allowing them to use a section 8 voucher to make a 
down payment on their first home. Importantly, the bill provides for a 
change to the funding structure for family self-sufficiency coordinated 
to ensure that families have the tools to take advantage of these 
opportunities.
  Without going into all of what is taken care of and what is reformed, 
I have tried to share the major reforms that we have created for our 
families who will be receiving assistance through the section 8 
program.
  Mr. Chairman, I reserve the balance of my time.
  Mrs. BIGGERT. Mr. Chairman, I yield myself such time as I may 
consume.
  Mr. Chairman, I would like first to thank all of my colleagues and 
their staffs from both sides of the aisle for working to craft a 
bipartisan section 8 reform bill that we are considering today. In 
particular I would like to thank Chairman Frank and Subcommittee 
Chairwoman Waters for their hard work, committee Ranking Member Bachus 
for his support, and the gentleman from Connecticut, Mr. Shays, who 
joined me as an original cosponsor of this bill.
  Mr. Chairman, this is a bipartisan bill that passed out of our 
committee by a vote of 52-9. It is similar to the section 8 reform bill 
that then Chairman Oxley moved through the Financial Services Committee 
during the last Congress. It was a bipartisan bill then too, passing 
out of the committee by a voice vote.
  The section 8, or Housing Choice Voucher Program, is the major 
Federal program helping the elderly, the disabled and the very low-
income families find affordable housing in the private market. Today's 
housing vouchers are the primary tool of assistance provided under 
section 8.
  Many of my colleagues served in this body when housing vouchers were 
first proposed and implemented under a Republican administration, that 
of President Reagan. The Section 8 Voucher Program was designed to move 
people away from large concentrated housing projects, like our Cabrini-
Green or Robert Taylor Homes in Chicago. It allows individuals to make 
decisions about where they want to live, instead of forcing them to 
live in large public housing projects filled with crime, poverty and 
despair.
  For the colleagues on my side of the aisle, I should admit, quite 
frankly, that this bill is better than I expected it to be. We have 
been able to get several key issues addressed in this bill that were 
not addressed in last year's Republican legislation.
  I want to thank Chairman Waters, who coauthored with me a manager's 
amendment that the committee accepted during our markup that includes a 
number of provisions to increase the flexibility of project-based 
section 8 vouchers. It amended section 8 of the law regarding the use 
of vouchers to purchase manufactured homes, voucher reserves, 
portability, performance assessment, disabled vouchers and rent levels.
  In addition, I am pleased that included in this bill is language that 
is identical to the Family Self-Sufficiency Act, or FSS, a bill that I 
introduced as a stand-alone measure. This bill enhances HUD's FSS 
program by providing housing authorities with consistent coordinator 
funding. Housing authorities can then help more individuals move from 
public assistance to being self-sufficient homeowners.
  Perhaps most important for Members on my side of the aisle is that 
this bill includes a significant expansion of Moving to Work, or the 
MTW program. Members on both sides of the aisle have public housing 
authorities in their district that seek to become Moving to Work 
housing authorities.
  In my district, DuPage Housing Authority would like this status. 
However, to date, Congress has only authorized 32 housing authorities 
to be MTWs. During the committee markup, we increased the authorization 
to a total of 80, which is a remarkable achievement. In addition, the 
Moving to Work provisions in this bill require HUD to craft standards 
that will govern eligibility requirements from being considered and/or 
designated as a Moving to Work authority. This bill includes important 
tenant protections that make the MTW Program better than it is today.
  Finally, I am also pleased that we included a provision that will 
measure the success of the program. Congress created the Moving to Work 
program in 1996, but it does not require HUD to establish standards and 
evaluate agencies' performance.

                              {time}  1915

  Now granted, the administration does not support this bill, nor did 
it support the Oxley bill last year or in the previous Congress.
  Why? Well, because in their view, it does not reform the program 
enough. They believe it moves the program from one that is currently 
budget based to a unit-based system that Mr. Knollenberg spoke about 
earlier. But I think that point is subject to interpretation. And 
politics is the art of the possible; and absent this bill, no reform is 
possible.
  This bill does not include everything that I wanted either. The 
section 8 funding formula my colleagues will recall was changed in the 
CR earlier this year. I have on several occasions offered amendments in 
committee to address this formula change, and we did

[[Page 18855]]

include in the manager's amendment a provision that will provide PHAs a 
cushion in the transition year so they are not penalized for CR formula 
change.
  I believe there is more work to be done. There are 1,200 PHAs. Half 
of those across the country do not suffer from unjustified and 
significant funding cuts as a result of the new section 8 funding 
formula included in the CR.
  Chairman Frank has agreed to engage in a colloquy with me about this, 
and I look forward to doing that in a few moments. I hope we will 
continue to work together as we continue to address the continued 
shortcomings of this formula.
  This is a good bill and one deserving of our support, and I urge my 
colleagues on both sides of the aisle to vote for it.
  Mr. Chairman, I reserve the balance of my time.
  Ms. WATERS. Mr. Chairman, I yield Chairman Frank such time as he may 
consume.
  Mr. FRANK of Massachusetts. I thank the gentlewoman, not so much for 
yielding but for the really extraordinary work she has done on this, 
the gentlewoman from California, and I want to say how much I admire 
the two tracks she has worked on. On the one track, she has been one of 
the leaders on our side in the House on the issue of Iraq and ending 
our involvement in the war in Iraq where I am a strong follower of her.
  Simultaneously, she has engaged in some very careful and thoughtful 
legislative work, and I think that is the mark of a complete 
legislator, to be able to do the ideologically based advocacy but also 
work in a bipartisan way, continuing work which began when she was the 
ranking member and in a seamless way to go forward.
  I spoke during the rule where I expressed my strong support for the 
legislation. I have rarely seen legislation so broadly supported by the 
landlords, by the local housing authorities that administer it and by 
the beneficiaries. There is a three-way operation here, and all of them 
consider this bill to be an improvement.
  As the gentlewoman from Illinois said, it does not improve everything 
as much as everybody would like; nothing ever does. But she is correct, 
this is an improvement. I would ask my friend from California to yield 
to her so we can talk about it, but she has already done some of the 
things that she talked about. For instance, in the manager's amendment, 
we will increase the reserves available to housing authorities to avoid 
any damage that would come in the transition on the new funding 
formula. I know the gentlewoman has some other concerns, and I hope if 
the gentlewoman from California will yield to her, I can respond to 
them.
  Ms. WATERS. I yield to the gentlewoman from Illinois (Mrs. Biggert).
  Mrs. BIGGERT. I thank the gentlewoman, and I would like to engage in 
a colloquy with Chairman Frank at this time.
  Chairman Frank, as you may recall, the section 8 funding formula was 
changed through provisions in the continuing resolution. I did not 
support these changes because they did cut about 1,500 public housing 
authority slots in three counties in my congressional district. And as 
Chairman Frank can verify, I have on several occasions offered 
amendments to change this.
  I am pleased that the manager's amendment includes a provision which 
addresses this problem. While I am pleased that we can take productive 
steps towards addressing the shortcomings, I believe we can do more as 
we move on, and it is my understanding that members of the 
Appropriations Committee have included a similar provision in the 
fiscal year 2008 Transportation, Housing and Urban Development (HUD) 
Appropriations bill. Would the chairman consider supporting this?
  Mr. FRANK of Massachusetts. The gentlewoman has stated this 
correctly. I know this is going to be in the appropriations bill. We 
expect it. I haven't seen the appropriations bill yet. I have great 
confidence in the subcommittee chairman, but I certainly agree with her 
in principle. And unless there is some very unusual wording which we 
could change, yes, I would be subject to saying, yes, that is exactly 
what we intend.
  Mrs. BIGGERT. I thank the gentleman.
  Again regarding the rebenchmarking, both the current formula and the 
one in this bill would base a PHA's annual funding level on a 
``snapshot'' of the PHA's use of funds from the previous 12 months. 
However, I continue to be concerned that his annual benchmarking is 
unworkable when coupled with the congressional budget cycle. For this 
reason, I hope we can continue to work together as we move forward to 
address the continued shortcomings of this formula. PHAs have always 
stated and continue to argue that their main concern is to have 
predictability and certainty in funding so they can plan both voucher 
utilization and staffing. I know they would appreciate more 
predictability. If the snapshot and the rebenchmarking were done every 
other year, would the chairman continue to explore with me the benefits 
of a biennial versus annual rebenchmarking?
  Mr. FRANK of Massachusetts. The answer is, again, yes. This is a very 
important subject which the gentlewoman from Illinois has identified. I 
promise we will work together. If we decide this needs to be a 
legislative change, I can promise the gentlelady that the committee 
will entertain the appropriate legislation and do that.
  Mrs. BIGGERT. Again, I thank the gentleman.
  In addition, I would like to ask the chairman to consider other 
measures to assist PHAs in the transition period and in the subsequent 
years. For example, I would like the chairman to consider a so-called 
hold-harmless provision attached to the new section 8 formula. The 
provision would provide PHAs with an assurance that they would not lose 
more than a certain percentage of funds in any given year due to the 
utilization rates in the previous years. The reasons for this are many, 
but at the heart of the matter is the simple fact that the so-called 
excess in funds that many PHAs were caught with when the new formula 
was dropped into the CR were not in fact excess at all but the result 
of deliberate choices, court-ordered requirements or special set-aside 
categories of vouchers. The PHAs should not be losing all of these 
vouchers in the first year. The percentage could range from perhaps 10 
to 25 percent. And again, PHAs deserve stability and predictability in 
funding. Would the chairman work with me to craft a hold-harmless 
provision to include in this bill or the appropriations bill?
  Mr. FRANK of Massachusetts. The answer here is definitely yes. I 
think a hold-harmless provision is appropriate.
  The purpose of the change, as the gentlewoman knows, in our mind was 
to prevent a kind of downward ratcheting in the overall usage. But 
consistent with that, we don't want to penalize particular authorities.
  We have already done some work, for instance, with the Dade County 
authority to take into account the fact that their shortfall came 
because of a hurricane, so they were not penalized by that. But the 
hold-harmless provision is a perfectly reasonable one, and I agree with 
the gentlewoman. I promise to work with the gentlewoman to do whatever 
we need to do legislatively to accomplish it.
  Mrs. BIGGERT. Again, I thank the chairman; and thank the gentlewoman 
for the time.
  Ms. WATERS. Mr. Chairman, I reserve the balance of my time.
  Mrs. BIGGERT. Mr. Chairman, I yield 8 minutes to the gentleman from 
California (Mr. Gary G. Miller), a member of the Committee on Financial 
Services.
  Mr. GARY G. MILLER of California. Mr. Chairman, I rise in support of 
H.R. 1851, the Section 8 Voucher Reform Act.
  This is something we have been working on for years, and I am pleased 
we have it to this point today. I commend Chairman Frank. Barney, you 
have been great to work with on these issues. When we express concerns, 
he is always willing to look at policy rather than politics. We have 
arrived at a bill we can all look at and say, there are

[[Page 18856]]

things we might change, but overall, we all agree it is a good bill.
  I would like to commend Ranking Member Bachus for all of his help and 
assistance. Chairman Waters, it has been fun working with you on this 
issue, as well as Ranking Member Biggert.
  Working together in a bipartisan manner, we have produced a bill that 
will help the section 8 program better serve families and communities 
across the country.
  Over the years, Congress has grappled with the skyrocketing cost of 
the section 8 program, which is growing so rapidly that HUD's other 
programs are suffering as a result.
  It is not feasible for the Federal Government to continue increasing 
funds for a program without enacting meaningful reforms.
  In the 109th Congress, I introduced legislation to improve the 
delivery of housing assistance to families in need by providing 
flexibility to local public housing authorities, PHAs, and holding them 
accountable for results.
  The goal of my legislation was to ensure that PHAs would serve as 
many families as possible within their budget. While the bill before us 
today does not go as far as my proposal in injecting flexibility to 
PHAs in their administration of the entire section 8 program, H.R. 1851 
does make a number of improvements to the section 8 program to reform 
the simplified regulations for local housing agencies.
  I appreciate Chairman Frank's willingness to work with me to allow 
for PHA innovation on a scale he is more comfortable with. While the 
bill before us does not apply flexibility to the entire program, I am 
pleased it at least allows a permanency and expansion of the Moving To 
Work program, renamed in this bill as the Housing Innovation Program, 
HIP.
  The Moving to Work Program has allowed a small group of PHAs to 
create locally based housing programs outside of HUD's one-size-fits-
all regulations. The program has enabled PHAs to create jobs for 
residents, add affordable housing stock and help families build 
savings.
  Currently, over 24 of the more than 3,000 PHAs nationwide are 
participating in the Moving to Work program. H.R. 1851 provides access 
to more agencies nationwide seeking MTW status.
  Through the new HIP program, we will be able to take away ``best 
practices'' to apply to the entire section 8 program in the future. I 
am confident that the innovation that will be produced through the 
flexibility provided in the HIP will demonstrate ways to truly reform 
section 8 so we can serve more families efficiently and help move them 
to self-sufficiency.
  The manager's amendment, which will be debated later this evening, 
includes language I crafted to provide PHAs with the flexibility to 
establish rent structures as they see best to address the needs of 
their communities.
  The language gives PHAs the flexibility to select from a menu of 
tenant rent policies, including flat rent, rents based on income 
ranges, rents based on percentage of income, or other innovative rent 
policies.
  HUD and many PHAs agree that the current Federal approach to tenant 
rent contribution is a regressive system that penalizes residents by 
charging higher rents for those who gain employment and income.
  If a section 8 recipient's salary increases, so does their rent. This 
creates a disincentive for work. Our goal should be to provide a 
helping hand to those who need it but also ensure that they are on a 
path to self-sufficiency. Rather than providing incentives for work, 
the current section 8 program provides incentives for people to lie 
about their income or to reject opportunities to increase their income 
since they would be forced to pay more rent. I don't think this is a 
message we should be sending in this program. We should be instilling 
responsibility and desire to achieve in our housing assistance policy, 
not encouraging dishonesty and creating disincentives for success.
  I am pleased the chairman has worked with me on language to allow 
PHAs the option of setting rents in innovative ways to help families 
achieve self-sufficiency.
  The reality is that we face a situation of growing waiting lists for 
section 8 vouchers without the resources to serve everyone. The answer 
is not to merely throw more money into an existing regressive system in 
a department where there are other pressing needs that need to be met. 
We need to move current section 8 recipients to self-sufficiency by 
allowing PHAs to be innovative with the money they do have, to be 
efficient and help as many people in need move through the program as 
possible.
  While this bill does not go as far as I think we need it to go in 
terms of allowing flexibility, I believe it is a step in the right 
direction and will make needed improvements to the section 8 program. I 
look forward to the debate on the amendments tonight as I believe we 
can continue to improve the legislation as we move forward.
  I would like to enter into a colloquy with the chairman, the 
gentleman from Massachusetts (Mr. Frank).
  There seems to be a misunderstanding on the part of HUD. Mr. Frank, 
this bill includes a revision and expansion of the Moving to Work 
Program, MTW, renamed the Housing Innovation Program, HIP. Under the 
program authority of HIP, the Secretary may designate up to 60 public 
housing agencies to fully participate in the program, and an additional 
20 public housing agencies may participate in the program under what is 
called the HIP-Lite provisions.
  Under the current MTW program, authorization has been granted for 32 
public housing authorities to participate in the program. However, HUD 
narrowly defined the legislative authority under which they could 
solicit new applications. HUD decided that once PHAs leave the program, 
no new agencies can be selected to fill their vacancy. The result is, 
out of 32 authorized, only 24 agencies are currently in the program.
  I would like to confirm that the intent of this bill is to allow HUD 
to solicit new applications in order to maintain the program at its 
fully authorized level and to give PHAs the opportunity to fill any 
vacancies.
  I would like to confirm that you agree that the secretary of HUD 
should promptly solicit new applications from PHAs interested in 
participating in the HIP program whenever the number of agencies is 
less than the total authorized level, and that would be 60 under this 
bill; is that correct, sir?

                              {time}  1930

  Mr. FRANK of Massachusetts. Mr. Chairman, will the gentleman yield?
  Mr. GARY G. MILLER of California. I yield to the gentleman from 
Massachusetts.
  Mr. FRANK of Massachusetts. Mr. Chairman, the gentleman from 
California is absolutely correct. The alternative interpretation would 
make no sense.
  Of course, HUD should have and does have the authority to select 
replacements. What we set was a maximum number of participating 
agencies, and if an agency withdraws, then a new agency should be 
replaced.
  If I may, I should note that the chairman of the subcommittee, who is 
such a devoted supporter of fairness, has raised some questions about 
the Moving to Work program, or whatever the new name is, and I have 
spoken with her. And I think what would be appropriate, and I think we 
would all agree, when we return from the summer recess to have a 
hearing on how the Moving to Work program is, in fact, operating, and I 
think that would be an appropriate thing to do.
  But certainly under this law and under the agreements we reached, we 
set a number of housing authorities that are eligible to participate, 
and there shouldn't be any question, if an authority drops out, then 
HUD has the obligation, not just the permission, but the obligation to 
replace it.
  Mr. GARY G. MILLER of California. I thank you.
  So HUD understands, if it does drop to 50, it should be moved up 
promptly to 60, and I look forward to the hearing.
  Ms. WATERS. Mr. Chairman, I yield to the gentleman from New Jersey 
(Mr. Andrews) 2 minutes.

[[Page 18857]]


  Mr. ANDREWS. Mr. Chairman, I'd like to thank the chairwoman, my 
friend from California, for yielding.
  The chairwoman and I came to this Congress on the very same day in 
1990, and I'm extremely proud of the work she's done on this bill and 
gratified to support it.
  I especially want to thank her for including language that I think 
will help underdogs, and the chairwoman has been a friend of the 
underdog for a very long time, and in her work in Sacramento she 
achieved her visions where tenants who were being mistreated by 
landlords, where the property was not being properly kept up and was 
not habitable, would be given the option of withholding rent in order 
to force repairs on the property. She's taken that provision and 
extended that principle in this bill in a way for which I salute her.
  The bill contains provisions that say in situations where a public 
housing authority chooses, when notified of serious code violations by 
a tenant, it may take actions to withhold part of the section 8 voucher 
payment that would otherwise go to the landlord. And the purpose of 
this would be to empower the public housing authority under certain 
circumstances to deduct that amount of money and pay for the repairs.
  What does this mean? It means a powerless person who doesn't have a 
political action committee or a lobbyist or a lot of political power 
but who needs their sink fixed or a broken window repaired or a heater 
repaired for the first time is going to have sufficient leverage to do 
so.
  I think this will have three very important effects. First, it will 
be fair and right for these tenants. Second, it will be fair for 
landlords. If the tenant is the cause of the problem or if a landlord 
is acting responsibly, this poses no burden on a landlord. And third, 
it will help responsible local officials prevent blight and degradation 
of certain neighborhoods so that each person can live in an environment 
that's proper and good for their family.
  So I want to thank the chairwoman for her characteristic advocacy on 
behalf of the underdog, for taking this idea, and I would urge support 
of the bill.
  Mrs. BIGGERT. Mr. Chairman, I'd like to yield 4 minutes to the 
gentleman from Georgia (Mr. Price), a member of the committee.
  Mr. PRICE of Georgia. Mr. Chairman, I want to thank my good friend 
from Illinois for yielding, and I want to thank also the Chair of the 
committee and Chair of the subcommittee for the work that they have 
done on this, and the ranking member.
  I rise to express a few sincere and serious concerns with section 9 
of the bill. This is the section that allows the public housing 
authorities, or the PHAs, to report the rental payments of its tenants 
to credit reporting agencies.
  Reporting alternative data, like rental payments, to the credit 
reporting agencies may indeed be a very good thing. The hope obviously 
is that increased alternative data will help improve the credit reports 
for consumers and, in the long run, provide them with better and less 
expensive access to credit. In this increasingly credit-drive society, 
that's truly an important thing.
  However, I've got four specific concerns with the way that the 
language in section 9 of this bill is written.
  First is the format that this data will take. The language of the 
underlying bill requires the PHAs and credit reporting agencies to 
establish a system and format for reporting the new data. This is 
obviously new territory for PHAs, and they haven't done it before and 
aren't financial institutions and have no history of providing 
reporting data in the proper format.
  Second concern is that this section may be incorrectly read to 
constitute a new requirement on the credit reporting agencies, and I 
would submit that this would be a drastic and significant change to our 
current system. Currently, credit reporting agencies must consider the 
timeliness of the data supplied to them. They must verify that it is 
accurate data, ensure that there hasn't been any case of identity fraud 
so that false data is not included in an unsuspecting consumer's credit 
file. Rental payment, clearly that information is different than other 
forms of commerce, and it may need to be treated differently.
  A third concern is that the section, as it reads, would apply to 
``families receiving tenant-based housing choice vouchers.'' Credit 
files historically are unique to individuals. Credit reporting agencies 
have no way to adjust their credit files for an entire family. So I 
wonder again sincerely what the real consequences of this ambiguity and 
potentially harmful aspect are to spreading potential financial 
responsibility to some without regard to accountability.
  My fourth concern may be the most important, and that is, that the 
underlying legislation requires that the PHA, or the public housing 
agency, gain the permission of the family in writing before submitting 
the data to credit reporting agencies. This provision potentially would 
turn our credit reporting system on its head. It's a 100-year-old 
system based on the voluntary reporting of data to credit reporting 
agencies. If consumers are able to turn on or off when the data is 
reported, then it, in its essence, undermines completely the accuracy 
of the credit reports.
  Both those who furnish the data to the credit reporting agencies and 
those who use that data to offer credit to consumers rely on the 
accuracy of these reports so that they can appropriately and 
responsibly price the cost of credit to a specific consumer. If someone 
can decide not to submit certain data to a credit reporting agency, 
then the accuracy of that data will be greatly compromised.
  I sincerely believe that a few minor changes to the underlying 
legislation would indeed perfect the language in a way that would allow 
for new alternative data to help consumers and also to have that new 
data submitted in a way that does not undermine a credit reporting 
system that truly has become the envy of the world.
  It's my hope that we can work on these concerns as this legislation 
moves forward, and once again, I want to thank the gentlewoman from 
Illinois for her time and thank the Chair of the committee and 
subcommittee for their work on this issue.
  Ms. WATERS. Mr. Chairman, I yield to the gentleman from New Jersey 
(Mr. Pascrell) 2 minutes.
  Mr. PASCRELL. Mr. Chairman, I'm honored to rise in support of H.R. 
1851. I commend Chairman Frank and Chairwoman Waters for bringing this 
worthy legislation to the floor today.
  This bipartisan bill will increase efficiency in our section 8 
housing voucher program and expand rental assistance opportunities, 
authorizing 20,000 new section 8 vouchers in each of the next 5 years, 
with a total of 100,000 new vouchers.
  Section 8 rental assistance is a critical and widely used program, 
with approximately 2 million vouchers being distributed by more than 
2,500 local public housing authorities.
  I would like to draw attention to one specific provision of this 
legislation which will have widespread benefits, if we did nothing else 
today, and I think is the most meaningful thing we're doing today, by 
the way, if I may express my opinion, will have widespread benefits for 
housing authorities throughout this Nation, including those in my 
district.
  In 2004, a new formula was instituted to fund public housing 
authorities that administer the section 8 program. The formula was 
based on a snapshot of PHA activity for May, June, and July of 2004. As 
a result, whatever a housing authority's needs were during that short 
period, they have been stuck with that number ever since. It is simply 
irrational to fund a program today based on what its needs were 3 years 
ago.
  Some housing authorities were continually overfunded, some were 
underfunded. This provision left some housing authorities scrambling 
for funds and others with extra funding they couldn't access.
  The bill we are considering today fixes this inefficient and outdated 
formula, requiring HUD to use data from

[[Page 18858]]

the most recent 12 months to determine section 8 voucher funding. It's 
going to help a lot of people, a lot of people. Now funding will be 
guaranteed for all vouchers in use.
  Even this administration has admitted that this flawed formula should 
be revised. I applaud the Financial Services Committee for including a 
fix in this legislation.
  I urge my colleagues to vote in favor of H.R. 1851.
  Mrs. BIGGERT. Mr. Chairman, I yield 4 minutes to the gentleman from 
California (Mr. Campbell), another member of the Financial Services 
Committee, to engage in a colloquy with Chairman Frank.
  Mr. CAMPBELL of California. Mr. Chairman, I thank the gentlewoman for 
yielding.
  I just wanted to bring to the chairman's attention a situation with 
HUD financing that kind of makes no sense to me, and a specific 
situation which I'm aware of involves the Villa Nueva Apartments, which 
are in San Ysidro in the San Diego area of California, where the owner 
of this multi-family, affordable housing project wants to sell it. The 
buyer wants to keep it as an affordable housing project. He's committed 
to keep the rents unchanged, but yet since it is HUD financed, under 
current, I guess, rulings or something that HUD is making, that 100 
percent of the proceeds of this project would actually not be available 
to the seller. I don't know why someone who owns something would want 
to sell it if they couldn't have any of the proceeds. So, as a result, 
the seller may not sell this project. They may hold on to it for a 
couple of years, and then the restrictions will expire and then they 
could sell it for something else.
  So it seems to me that HUD's procedures on this are actually standing 
in the way of affordable housing companies acquiring and continuing 
affordable housing multi-unit projects.
  Mr. FRANK of Massachusetts. Mr. Chairman, will the gentleman yield?
  Mr. CAMPBELL of California. I yield to the gentleman from 
Massachusetts.
  Mr. FRANK of Massachusetts. I thank the gentleman from California.
  I appreciate the gentleman from California making this very important 
point because it gives us a chance to highlight an important issue that 
this committee will be acting on.
  I should just note that later today we will be considering an 
amendment on behalf of the gentleman from Massachusetts (Mr. Markey) 
and the gentlewoman from Ohio (Ms. Pryce) in similar circumstances, and 
we will be directing HUD to allow these to go forward.
  The gentleman just learned of this, I know, and brought it to our 
attention, and I would begin by saying to him, if necessary, I would be 
supportive of doing the same in his case. I hope it won't be necessary.
  Here's the situation that may people may not understand. Forty years 
ago and more, or about 40 years ago, we began, not us, with the 
exception of Mr. Dingell, began a program of affordable housing where 
the Federal Government lent people money at either no interest or very 
low interest in return for it being affordable, but for some reason 
they put what they called an expiration date of 40 years.
  Now, we stand to lose a lot of housing that is good housing currently 
affordable. We are looking for ways to let that be transferred to 
others who would keep that it way. I think HUD is being overly 
technical in some of these interpretations. It would clearly be in 
everybody's interest, for no budgetary cost we can preserve these 
units.
  By the way, if the units are lost, what then happens is, under 
certain laws, the current tenants are entitled to enhanced vouchers. So 
we would then be paying more in enhanced vouchers to a new landlord. 
That doesn't make sense.
  I just want to make this commitment to the gentleman. I hope after 
today's bill, which I hope it passes and the amendments for Mr. Markey 
and Ms. Pryce are passed, that we can then sit with HUD on a bipartisan 
basis and try and find a way for them to do this administratively. If 
they tell us that they need a small fix, if there's some legislative 
problem, we could do that on suspension immediately. Even the Senate 
would do that one quickly.
  I would say this. I hope that we will, today, get HUD's attention so 
that we can sit with them and work this out. I would rather have it 
done in policy. If necessary, we'll do a little fix.
  And I would also say before the end of this year, and this is high on 
the agenda of the gentlewoman from California and myself, because this 
situation occurs all over the country in everybody's district or in 
most districts, if necessary, we will pass a bill that will give HUD 
all the authority necessary to prevent this loss of affordable housing 
for no good reason.
  So I admire the gentleman for bringing it to our attention. I think, 
frankly, if we pass this bill and pass the Markey-Pryce amendment, 
we'll probably get a better response out of HUD, and if necessary, we 
will legislate it.
  Mr. CAMPBELL of California. Thank you.

                              {time}  1945

  Ms. WATERS. I yield 2 minutes to the gentleman from California (Mr. 
Baca).
  Mr. BACA. I want to thank my colleague for yielding. I rise also to 
support the Section 8 Voucher Reform Act of 2007.
  I want to thank my good friend from California, Chairman Maxine 
Waters, for sponsoring this vital legislation.
  I also want to thank our chair, Chairman Frank, for his leadership 
and guidance in this committee.
  Mr. Chairman, in 2004, when the administration decided to change the 
funding formula for section 8 vouchers, drastic cuts were made to the 
number of vouchers available. These cuts hurt needy families throughout 
the Nation and throughout my district. We are talking about seniors, 
low-income families, disabled, the poor, the disadvantaged.
  In my district alone, section 8 housing vouchers, public housing 
units, provide affordable housing for more than 32,000 people. Can you 
imagine, 32,000 people right now, children and others, that would not 
have a home, not have a place to rent, that would be homeless if it 
hadn't been for section 8? This bill reverses the cut and adds an 
additional 20,000 vouchers so that families are not forced to choose 
between paying for food, their medication or rent.
  We are talking about people that can't afford housing, even right 
now, with the inflation and the cost that is going on right now. We 
have got to make sure that they have a home, they have stability, and 
they have a roof over their head, especially for our children.
  I appreciate my colleague on the other side, Gary Miller, supporting 
this legislation as well. We worked on some of the amendments. I 
appreciate that very much.
  It also contains key provisions that strengthen section 8 programs, 
including protection for individuals with limited English proficiency 
and the expansion to Moving To Work programs. I urge my colleagues to 
support this most vulnerable program that helps us, and especially as 
it pertains to helping the poor, the disadvantaged.
  I ask my colleagues to support this legislation.
  Mrs. BIGGERT. Mr. Chairman, might I inquire of the time remaining on 
either side of the aisle?
  The CHAIRMAN. The gentlewoman from Illinois has 10\1/2\ minutes.
  The gentlewoman from California has 9 minutes.
  Mrs. BIGGERT. Mr. Chairman, I reserve the balance of my time.
  Ms. WATERS. Mr. Chairman and Members, I am so very proud of the work 
of this committee.
  I am so very, very pleased and honored to have the opportunity to 
work with Barney Frank. Not only is he a committed public policy maker, 
he is smart, and he is creative. And he is helping us to understand how 
to use this wonderful opportunity that has been afforded to us to do 
good for the people of this country.
  I am so pleased about this particular bill, because I am so keenly 
aware of the housing crisis that we have in this country.
  As we stand here this evening, there are people who are sleeping 
under bridges; living with them are families, children. Some of them 
are veterans. I

[[Page 18859]]

come from a time and place where people did not have decent housing. I 
know, too, that not only has this occurred for many years in this 
country, where people have been living in substandard housing, even 
today we have people without running water. We have people without 
proper health facilities of any kind in their homes.
  We have families that are crowded into one and two rooms. We have 
people whose roofs were leaking this evening. But because of this 
government and our ability to help government understand what it can do 
to help the least fortunate, we are able to pass this kind of 
legislation.
  I want to thank my friends on the opposite side of the aisle, again, 
Mrs. Biggert, for the cooperation that I have enjoyed working with her.
  Mr. Chairman, I yield as much time as he may consume to the gentleman 
from Massachusetts (Mr. Frank).
  Mr. FRANK of Massachusetts. I thank the gentlewoman.
  Mr. Chairman, again, I want to emphasize, this is a process that 
began when the Republicans were in power, when Mr. Ney was the 
chairman.
  The gentlewoman from California was the ranking minority member and 
has continued in her chairmanship. The gentlewoman from Illinois is the 
ranking member. This is an example of how you can make something better 
and deliver better, with one exception, there is no additional money in 
this bill.
  I hope that we will succeed in authorizing 20,000 new vouchers. 
That's an issue we will debate, although it is subject to 
appropriation, as to whether or not it gets done. I think our 
appropriator friends would like to do it.
  But most of what this does is to improve the delivery. We talk about 
it a lot. It isn't always done. And in that context, we often thank the 
staff.
  This is a case where the staff of the Financial Services Committee 
and subcommittee on both sides, we already did a great deal of work; 
this is a more technical bill than many that have come forward.
  This is a less than ideological breakthrough. We hope to have some of 
those. We have had in the past. It's more a systemic examination of a 
very large program with improvements of a technical and specific sort 
in many aspects of it. It took a good deal of hard work, and it took a 
good deal of mutual cooperation.
  As I said, there were some differences, and we will debate those 
differences, but it should be made clear that those differences come 
within a context of a broad agreement on making the program better.
  There is a lot of talk about waste and fraud and abuse. Waste and 
fraud and abuse are more generally decried around here than diminished. 
This is a bill that will make it much less likely that money will be 
wasted, much less likely that there will be an abuse of the public 
purse. As I said, let me say in closing, it is to the credit of the 
gentlewoman from California, the gentlewoman from Illinois, and the 
people who have worked with them.
  Every stakeholder is a supporter of this bill, the landlords, the 
tenants, the advocacy groups, the housing authorities that administer 
it. It is rare that you get this degree of agreement. It's a process 
that began with civil conversation. I am pleased to see, at least on 
this night, it's going to end with a civil conversation, and the 
product will be significant improvements in one of the most important 
social programs in the Federal Government.
  Mrs. BIGGERT. Mr. Chairman, I yield 3 minutes to the gentlelady from 
Texas (Ms. Jackson-Lee).
  Ms. JACKSON-LEE of Texas. Let me thank the distinguished gentlelady 
from Illinois for yielding me the time.
  Mr. Chairman, this is a historic occasion, a historic time. I want to 
express my appreciation to the chairman of the full committee, Mr. 
Frank, and the chairwoman of the subcommittee, Congresswoman Waters, 
and the ranking members, for what I hope will ultimately be an enormous 
step forward for the homeless and the underserved.
  I also want to acknowledge my colleague and friend, Congressman Al 
Green, who has worked so hard to ensure that cities who have the 
background of Houston, Texas, are also accounted for. Those are cities 
that have for years had thousands of individuals on the waiting list.
  I think the number 25,000 in Houston has literally become a number of 
the decade, because there has been a waiting list of 25,000 for as long 
as I can remember, having served on the Houston City Council.
  I am very pleased to acknowledge that we are going to reorder the 
formula so that cities can borrow against moneys that are already in 
their account, so that the cities that have an excessive number of 
individuals on the waiting list can still be able to utilize those 
dollars.
  I want to pay special attention to the resources that will be 
utilized for the disabled and special resources that are going to be 
utilized for innovative programs dealing with, for example, the housing 
innovation program, which has previously been Moving to Work.
  One of the issues that I hope that we will look forward to is giving 
incentives to cities to help them reduce the waiting list. Now, you can 
change the formula, and I had an amendment that would provide at least 
a pilot study to construct, if you will, an incentive to make sure that 
cities took advantage of this new structure and worked hard to reduce 
the waiting list.
  It is one thing to have the laws in place. It is another thing to 
have housing authorities sit by and just watch, rather than working 
very hard to bring down their list.
  I am very grateful that we now have an understanding that there is 
less and less affordable housing being built in America. These 
individuals that use section 8 vouchers are working people, people who 
are paying their taxes, who cannot find housing in high-priced markets. 
This section 8 voucher program will allow these individuals to purchase 
homes. They are creative, unique and forward thinking, because they are 
individuals who have put their stake down in these particular areas.
  I am also hoping, as I close, and I am hoping that we will continue 
to work on this issue, is to ensure individuals will not be put out 
because of combat pay for soldiers who are coming back.
  I ask my colleagues to support this legislation.
  Mr. Chairman, I rise in strong support of H.R. 1851, the ``Section 8 
Voucher Reform Act of 2007.'' I support this bipartisan measure for 
three important reasons. First, H.R. 1851 reforms Section 8 vouchers to 
make their allocation more efficient and targets them based on need. 
Second, the legislation also increases access for rural families, and 
expands the number of families receiving housing vouchers. Third, the 
bill permits families to use housing vouchers as a down payment on a 
first-time home purchase, and includes other provisions to encourage 
family self-sufficiency including incentives for families to obtain 
employment, increase earned income, pursue higher education, and save 
for retirement.
  I wish to express my special thanks to the Chair of the Financial 
Services Committee, Mr. Frank, for his leadership and commitment to 
affordable housing for low and moderate income families. Let me also 
thank the gentlewoman from California, Ms. Waters, the Chair of the 
Subcommittee on Housing and Community Opportunity for her yeoman work 
in bringing this important and much needed legislation to the House 
floor today.
  Mr. Chairman, a strong America requires strong families and 
communities. Affordable housing is critical to maintaining strong 
families and communities. Section 8 housing vouchers provide vital 
rental assistance for low-income families, seniors, and the disabled to 
help them afford housing. The Section 8 housing voucher program 
contributes to the strengthening of our nation. Let me discuss briefly 
for our colleagues some of the more beneficial provisions in the 
legislation.
  The legislation eliminates inefficiencies that have resulted in $1.4 
billion in unused funds and provides incentives for agencies to use 
funds to assist more families. Thus, the voucher Funding Formula is 
made more efficient and will lead to an increase in the number of 
families receiving vouchers. And that is good because the number of 
housing vouchers issued has declined more than 150,000 since 2004. The 
bill authorizes 20,000 incremental vouchers in each of the next five 
years, for a total of 100,000 new vouchers.
  Mr. Chairman, I also support this legislation because it protects 
tenant rights, promotes home ownership, and encourages economic

[[Page 18860]]

self-sufficiency for low income voucher and public housing families. 
The legislation also protects housing agencies adversely affected by 
formula changes, by allowing them to use voucher reserves in the 
transition to maintain the number of families being assisted.
  Homeownership is promoted because, for the first time, families will 
be permitted to use housing vouchers as a down-payment on a first-time 
home purchase, and to use vouchers for purchase of a manufactured home 
on leased land. Economic self-sufficiency for low income voucher and 
public housing families is encouraged because H.R. 1851 includes 
several incentives for families to obtain employment, increase earned 
income, pursue higher education, and save for retirement. The bill also 
increases voucher opportunities for lower-income working families in 
rural areas.
  Finally, the bill contains several tenant protections, including 
provisions to preserve voucher families' ability to move to other 
areas, to address excessive voucher rent burdens, to provide for more 
accurate fair market rent calculations, and to protect voucher holders 
in units that are in need of repair.
  Mr. Chairman, for millions of our fellow citizens, finding safe and 
affordable housing is still a constant and often futile struggle. 
Today, about 1.4 million households nationwide participate in the 
voucher program; but not all qualified applicants are guaranteed 
housing. The demand for housing assistance consistently exceeds the 
limited resources available from the Department of Housing and Urban 
Development and local government agencies. Long waiting lists have, 
unfortunately, become very common.
  In my hometown of Houston, the largest city in Texas, and the fourth 
largest in the United States, there is a multi-year backlog of 
applications for individuals seeking government assistance. It is not 
unusual for individuals and families to be placed on the waiting list 
for more than three years.
  I believe it imperative that something be done to reduce this 
backlog. That is why I offered an amendment to the bill that would 
establish a pilot program to aid in the reduction of Section 8 waiting 
list.
  Mr. Chairman, I also offered an amendment providing that funds 
received by a section 8 family from a family member serving in the 
Armed Forces in a hostile combat theater be excluded from the 
computation of income for eligibility purposes.
  The military is one of Americans most precious resources and one 
whose efforts ought to never be taken for granted. Daily, these men and 
women in uniform risk their lives to ensure the national security and 
safety of our country. One way to express our gratitude to them is to 
offer relief to their family members.
  Eligibility for housing vouchers is typically based on the family 
size and the total annual gross income, which ought to not exceed 50 
percent of the median income for the area in which they choose to live. 
HUD's Housing Voucher (HCV) handbook lists both special pay (except pay 
received by a service member who is exposed to hostile fire) and the 
Base Housing Allowance (BAH) as income for purposes of determining a 
family's income eligibility. Excluding monies received by section 8 
tenants from family members serving in combat zones when evaluating 
income eligibility for Section 8 housing would provide a little piece 
of mind to the families of these soldiers serving overseas.
  The final amendment I offered sought to provide economic 
opportunities to Section 8 tenants by requiring the Secretary of the 
Housing and Urban Development carry out programs whereby public housing 
agencies develop curriculums and policies designed to increase 
employment and contracting opportunities for recipients of tenant-based 
rental assistance under the United States Housing Act of 1937. These 
economic opportunities can be in the form of maintenance, inspection, 
and management of rental properties for which rental assistance is 
provided.
  Families living with Section 8 vouchers can achieve self-sufficiency 
through active participation in education and employment. Self-
sufficiency eliminates the need to be dependent on public assistance 
and increase one's self esteem and sense of accomplishment. My 
amendment was intended to help section 8 become more economically 
independent.
  But taken as a whole, Mr. Chairman, H.R. 1851 is a very good bill and 
represents a significant step forward in the direction of an 
enlightened policy of affordable housing. Accordingly, I strongly 
support H.R. 1851, the ``Section 8 Voucher Reform Act of 2007.'' I urge 
my colleagues to join in voting for this much need legislation.
  Mrs. BIGGERT. Mr. Chairman, I yield 3 minutes to the gentleman from 
California (Mr. Gary G. Miller).
  Mr. GARY G. MILLER of California. Mr. Chairman, we have been working 
on housing issues for several years. I think we do have a very good job 
in this House coming to an agreement. Moving to the Senate, for some 
reason, things just don't happen as they should on that side of the 
Capitol.
  But we have got tremendous housing shortages in this country that we 
have to deal with. We have to work on HOPE VI program to be more 
innovative to allow the private sector to get involved. We need to be 
able to take and move people through the system for public housing 
section 8 vouchers.
  But the area we are really hurting in in this country is the move-up 
marketplace for people coming out of section 8, coming out of public 
housing and to be able to move into a house that's affordable. We all 
have problems in many of our districts where our children go away to 
college; we know people who, when their kids come back, they can't 
afford to live in the communities in which they were raised. We know 
many people who may be a school teacher, a police officer, a fireman, 
who drive 2 hours back and forth to work because they can't afford to 
live within the community in which they work. That should be a focus of 
Congress.
  We not only have to deal with the HOPE VI program, we have to deal 
with the public housing program, the section 8. We have to look at 
streamlining the system where builders and developers in this country 
can bring affordable housing on line and make it available for people 
who are moving out of government assistance into homes of their home.
  The Moving To Work program, I think, is going to work very well. It 
allows people to retain some earnings, to build up the savings to be 
able to afford to move into a home for the first time. We have a lot of 
nonprofits in this country that provide down-payment assistance, 
programs who help people that can afford a payment but don't have the 
cash on hand within which to be able to put down and pay the closing 
costs to move into a home.
  We have got to look at the overall industry and say, how can we be 
innovative? How can we be creative? And how can we help people to help 
themselves? Now, I am a conservative. I don't believe in government 
programs going on forever. But I think people come to a point in their 
life where they need a helping hand.
  We need to look at ways to help them go on their open to become self-
sufficient. That's what I hope we do in Congress, not only look at 
reforming the government programs we have here today to make them more 
innovative, make them work for people. In L.A. County, there is a 10-
year wait for people to go on vouchers or public housing. That has to 
change.
  People wait for 10 years who are just as needy or more needy 
sometimes than people who are receiving assistance. But we have no way 
of moving those people out of government programs into their own homes.
  That's what we need to look at, streamlining, removing the red tape, 
fast tracking, have some nexus between the cost that's assessed against 
the project and the actual cost of that project.
  I want to commend Barney Frank. Over the years, he and I have worked 
on more legislation on housing I think than any two Members from the 
Republican and Democrat side together that try to create programs that 
work for people. Tonight's bill might not be everything they want. I 
know it's not everything that Maxine Waters and Barney Frank wants, but 
it was an agreement between the two of us in a bipartisan fashion, 
Republicans and Democrats, to come and fashion a bill that would work.
  I think this bill has some innovation. It makes some changes, and I 
think it moves us in a better direction. Are we where we should be 
completely? No, but we are moving in a good direction.
  I look forward to cooperation from both sides.
  Ms. WATERS. Mr. Chairman, I reserve the balance of my time.
  Mrs. BIGGERT. Mr. Chairman, I yield myself such time as I might 
consume.
  In closing, I would again like to thank the subcommittee chairwoman,

[[Page 18861]]

Ms. Waters, Chairman Frank and Mr. Shays for introducing and working on 
this bill. I urge my colleagues to support the bill, which received a 
52-9 vote coming out of our committee.
  The bill we will vote on today is a good bill. It is the result of 
bipartisan cooperation. It contains many provisions more than in last 
year's bill that help families dependent upon public assistance become 
families that are independent and self-sufficient tax-paying productive 
members of society.
  It's my sincere hope that we can further improve the bill, especially 
the sections involving the funding formula. I thank the chairman for 
agreeing to work with me on this.
  I truly hope that we can move this bill beyond the House during this 
Congress and that the Senate and the administration will work with us 
to reform this important program.

                              {time}  2000

  America's families and American children deserve a 21st-century 
section 8 program.
  Mr. Chairman, I urge my colleagues to support this bill, and I yield 
back the balance of my time.
  Ms. WATERS. Mr. Chairman, I would like to take this moment to thank 
someone who is not here in the Congress with us at this time.
  When we first started this legislation in the previous Congress, it 
was with Mr. Bob Ney who served as chair of the subcommittee; I was the 
ranking member; and we put this bill out on the floor where it passed 
this House, and he deserves credit for all the work that was done.
  I would also like to thank some of the other members who we have not 
heard from this evening in general debate and hopefully we will hear 
from a little later on. Mr. Green from Texas who insisted that we 
expand the vouchers to make them available to the needy families who 
certainly have been standing in line waiting on section 8 vouchers.
  I would like to thank Mr. David Scott for being one of the most 
adamant and fierce defenders of the work that we have done and who has 
taken on the work of trying to educate some of our Members from the 
other side of the aisle, not only about the need, but how not to 
penalize the victims and people who are looking for housing 
opportunities who would not be able to get them but for section 8 and 
the work that we are doing.
  With that, I would like to close by thanking the chairman who is so 
committed to helping those who need us most. He is certainly the kind 
of leader that we can depend on to make sure that everything possible 
is done, to utilize the time that we have been given in this committee 
to work for people who oftentimes have been dropped off of America's 
agenda. Again, he provides strong leadership. He is generous with 
sharing opportunities with everybody that serves on that committee. And 
it is because of that kind of leadership and, again, the cooperation 
from my friends on the opposite side of the aisle, Mrs. Biggert, Mr. 
Miller, Mr. Shays, and others that we come to this floor tonight with a 
good strong bill that is going to help so very many people in this 
country, and it is the kind of public policy that makes us all feel 
very good about being elected officials.
  Mrs. CHRISTENSEN. Madam Chairman, I rise today in support of H.R. 
1851, to reform the housing choice voucher program under section 8 of 
the United States Housing Act of 1937. I commend the Honorable Maxine 
Waters for her leadership on this issue of pressing socioeconomic 
concern.
  In 1937, we had a Nation still suffering from the Great Depression. 
In fact, in 1937, the economy fell into a recession which caused high 
unemployment and left many wondering how they would put a roof over 
their family's heads at night. In response to this problem, the United 
States Housing Act was enacted, which helped hard-working American 
families to stay off of the streets.
  This bill also helped to push the United States policy of spending on 
infrastructure to help the economy, as promoted by the principles of 
Keynesian economics. In today's economy we are seeing a new problem 
emerge--the growing income gap.
  According to a January 27, 2007, CNN report entitled, ``Mind the gap: 
Income Inequality, State by State,'' Americans whose annual income 
places them in the top 5 percent of the income bracket ``saw their 
incomes rise as much as 132 percent between 1980 and 2003. The bottom 
20 percent of families, meanwhile, saw their incomes rise by no more 
than 24 percent.'' With such inequality today's housing crisis becomes 
obvious--the ``haves'' are purchasing more real-estate and thus driving 
housing costs to levels far above the budget of ``have-nots''.
  Just as the Federal Government took the lead and helped struggling 
American families in 1937, we must step in and make sure their efforts 
are applicable to today's specific housing crisis by amending Section 8 
of the United States Housing Act 1937 to address the problems of 2007.
  In my district of the Virgin Islands I see multimillion dollar 
estates constructed in areas of previously low to moderate income. 
Often times this works to drive up property values and drive out those 
who can no longer afford to live in the area. It has driven up housing 
costs and even rental prices. This bill will help address this issue by 
adding 100,000 new Section 8 vouchers, and by expanding their use for 
home purchase as well as rent. It will allow a public housing agency to 
authorize a family in crisis to occupy housing immediately so they are 
not left on the streets while a slow moving bureaucratic agency 
``evaluates'' them. H.R. 1851 also includes provisions to address 
existing inadequacies in the programs that have created long waiting 
lists and a program that has more applicants than available housing.
  By passing H.R. 1851, Congress will take a much needed step towards 
improving a much needed program. I urge my colleagues to support this 
bill and help make a good program stronger and better.
  Mr. ENGEL. Madam Chairman, I rise today in support of H.R. 1851, the 
Section 8 Voucher Reform Act of 2007. This bill will expand Section 8 
Vouchers to improve system efficiency, encourage self-sufficiency, and 
increase the number of families who can participate. There are 
currently 20,370 vouchers in use in New York's 17th district which I 
proudly represent, and 2 million families using vouchers nationwide. 
These Section 8 Vouchers allow low-income families to choose the 
housing option that best fits their needs, and encourages permanent 
economic stability.
  According to the National Association of Housing and Redevelopment 
Officials, there is funding for 150,000 vouchers that are not in use 
under the current Section 8 Voucher formula. By reforming Section 8 
Vouchers, we put funding and vouchers in the hands of people who need 
them the most.
  Madam Chairman, in New York we highly value Section 8 Vouchers 
housing. The vouchers provide much-needed assistance to families and 
individuals wishing to become more economically self-sufficient, but 
who lack the means to do so on their own. Simplifying and expanding 
Section 8 Vouchers will help alleviate a monumental housing crisis in 
the state of New York and throughout the country. H.R. 1851 relieves 
pressure on struggling communities and families and will bring economic 
security and self-sufficiency within their reach. H.R. 1851 reforms 
Section 8 Vouchers in a comprehensive and logical way, and I encourage 
my colleagues to support this important legislation.
  Ms. SCHAKOWSKY. Madam Chairman, today's passage of H.R. 1851, the 
Section 8 Voucher Act (SERVA) will improve greatly the housing voucher 
system--which is already successful and has been described by the 
Administration as one of the federal government's most effective 
programs.
  Safe and affordable housing is one of my priorities and should be a 
national priority. Section 8 vouchers are a great tool for getting 
families into decent homes. Studies have shown that Section 8 vouchers 
reduce homelessness, overcrowding, and frequent moves from apartment to 
apartment. Affordable housing is critical to strong families and 
communities, and vouchers have allowed families to move to lower-
poverty neighborhoods with better schools and less exposure to crime.
  H.R. 1851 will only increase the success of Section 8 vouchers, which 
currently provides housing assistance to more than 2 million families, 
by making the program more efficient and more effective. From 2004 to 
2006, voucher funds were allocated using a series of ineffectual 
formulas that gave some agencies less funding than they needed to cover 
the costs of their vouchers--forcing them to cut back for needy 
families--while other agencies were given more funds than they could 
use. This resulted in $1.4 billion of unused funds and, more 
importantly, 150,000 more low-income families without vouchers. SERVA 
would base funding on the actual cost of each agency's vouchers in the 
previous year. This will allow housing agencies, apartment owners, and 
families with vouchers to be confident that

[[Page 18862]]

the program will be funded on a regular basis. Moreover, SERVA will 
establish incentives encouraging agencies to serve as many families as 
their funding permits, rather than accumulating large balances of 
unspent funds.
  In addition to establishing such a stable, efficient and equitable 
voucher funding policy, SERVA will additionally remove barriers to 
voucher ``portability'', as well as streamline the rules for 
determining tenants' rent payment. It will authorize 100,000 new 
vouchers over five years' time, and include provisions to encourage 
economic self-sufficiency. It will also allow families to use housing 
vouchers as a down payment on a first-time home purchase, gives a 
limited number of Public Housing Agencies some flexibility to 
experiment with development and rent policies, and makes it easier for 
housing agencies to attach vouchers to housing units. These reforms 
will provide vital rental assistance for seniors and the disabled as 
well as low-income families, as well as provide a welcome opportunity 
for low-income families to achieve the American Dream of home 
ownership.
  By reforming an already highly successful program, we can improve the 
quality of life for many American families, elderly, and disabled 
citizen all over the country by offering them more and better choices 
of communities to live in.
  Mr. HINOJOSA. Madam Chairman, I rise in strong support of H.R. 1851, 
the Section 8 Voucher Reform Act of 2007.
  I want to take this opportunity to commend my good friend 
Congresswoman Maxine Waters, chairwoman of the Housing Subcommittee, 
for introducing this bill, navigating it through the House Committee on 
Financial Services and bringing this important and necessary piece of 
legislation to the floor today for consideration by the full House of 
Representatives.
  I have the utmost respect for Chairwoman Waters--for all that she has 
done and is doing to improve the housing conditions for Americans, 
especially the moderate- to low-income, minorities, the disabled and 
the elderly. She has helped me considerably in my efforts to improve 
housing conditions in rural America.
  Mr. Chairman, while some form of Section 8 rental assistance has been 
in place since the mid-1970s, the modern program was shaped largely by 
the 1998 public housing reform act. Nearly 10 years later, the Section 
8 Housing Choice Voucher program came under new scrutiny, with Public 
Housing Authority industry leaders, low-income housing advocates, and 
some Members of Congress calling for reforms.
  Chairwoman Waters heeded that call and has brought to the floor today 
a bill that will help not only the poorest of the poor with housing 
vouchers but also provide the public housing authorities in my district 
and across the nation with the tools they need to better serve our 
constituents. The bill includes significant improvements to the voucher 
program, which provides rental assistance to about 1.8 million 
families, the majority of whom are extremely poor.
  Applaud the provision in the bill that permits public housing 
authorities to let families use housing vouchers as a down payment on a 
first-time home purchase, and the section authorizing 20,000 sorely 
needed incremental vouchers in each of the next 5 years, for a total of 
100,000 new vouchers.
  For these reasons and more, I encourage my colleagues to vote in 
favor of H.R. 1851, the ``Section 8 Voucher Reform Act of 2007.''
  Mr. CONYERS. Madam Chairman, I regret that I will be unable to vote 
``yes'' tonight for passage of H.R. 1851. I was scheduled to be in 
Detroit in order to receive the NAACP's most prestigious award, the 
``Spingarn award.'' I applaud the vision, courage and compassion of 
Representative Maxine Waters for introducing the ``Section 8 Voucher 
Reform Act of 2007, H.R. 1851.'' I strongly support the legislation, 
because it expands Section 8 vouchers for working families in America 
who are in desperate need of affordable housing by creating 20,000 
incremental Section 8 vouchers in each of the next 5 years for a total 
of 100,000 new vouchers.
  In a nation where affordable housing is scarce, and family homeless 
shelters continue to be built across the nation, passage of H.R. 1851 
is a vitally important step in having the Federal Government take the 
lead in expanding affordable housing for deserving families and 
children in America. There are approximately 16,000 individuals and 
families who are currently on the Detroit Public Housing Waiting List. 
H.R. 1851 will help reduce the affordable housing crisis in Detroit, by 
increasing the availability of housing units through the expansion of 
Section 8 housing. It clearly does not make sense, nor is it fair, to 
have apartments available for rent in Detroit, but not enough citizens 
to move into them, only because there have not been a sufficient supply 
of Section 8 vouchers in the past.
  H.R. 1851 also changes rent calculation, recertification, and 
inspection rules for the voucher, public housing, and project based 
Section 8 programs, to reduce costs and compliance burdens for public 
housing agencies, landlords, and families. These changes are made while 
maintaining rules that target scarce resources to those families most 
in need and while maintaining rent calculation rules that ensure rents 
are affordable. This will mean that Section 8 apartments will now 
become more affordable due to changes in rent calculation formulas 
mandated in H.R. 1851.
  H.R. 1851 also permits public housing agencies across this country to 
allow families in need of affordable housing to use a Section 8 housing 
voucher as a down payment on a first time home purchase. Passage of 
this legislation means scores of working families in Detroit, many who 
have saved and sacrificed the entire lives to buy a home, will be now 
able to do so.
  The ``Section 8 Voucher Reform Act of 2007, H.R. 1851.'' Is a 
critically important piece of legislation because it reforms HUD 
Section 8 guidelines to ensure that the approximately $1.4 billion in 
unused Section 8 funds will now be spent. This legislation mandates 
reforms in the Section 8 program that will eliminate inefficiencies, 
streamline paper work, and provide more incentives for public housing 
agencies to assist more families who qualify for Section 8 housing.
  Having an additional $1.4 billion dollars to be used for Section 8 
housing vouchers means that there will be a substantial increase in 
families in Detroit who will live in safe and decent affordable 
housing. There are too many working families in Detroit, and across 
this nation, who are living in homeless shelters, expensive inner city 
hotels, and staying with friends and relatives until they can locate 
housing. This is a moral outrage. All Americans deserve safe, decent, 
and affordable permanent housing.
  Under the leadership of Representative Maxine Waters, passage of H.R. 
1851 shows how we as Democrats have always had a historical commitment 
to expanding affordable housing to working families, and will continue 
to do so.
  If we are to be a truly compassionate and moral nation, all 
individuals and families, regardless of income, race, or employment 
status must have as a fundamental human and civil right safe, decent, 
and affordable housing. Passage of H.R. 1851 is a critically important 
piece of legislation that will move America closer to this goal. Now, 
100,000 additional Americans will have the opportunity to either become 
home owners, or move into an apartment, something that we can all agree 
on should be one of the highest priorities of this Nation.
  Ms. McCOLLUM of Minnesota. Madam Chairman, I rise today in strong 
support of H.R. 1851, the Section 8 Voucher Reform Act, and applaud 
Chairwoman Maxine Waters and Chairman Barney Frank for their work on 
this important issue.
  Housing, like food and health care, is a basic need, and it should be 
accessible to all Americans. Unfortunately, too many families find 
themselves without a stable and secure place to live because they 
cannot afford the high cost of housing in our country.
  The Section 8 voucher program plays a critical role in preventing 
homelessness by expanding access to affordable housing. It is our 
nation's largest federal housing program, serving more than 2 million 
low-income families around our country. However, currently, the demand 
for Section 8 vouchers far exceeds the availability of vouchers. In my 
District in Minnesota, there are more than 5,000 households on the 
waitlist for Section 8, and the average wait time is anywhere from 5 to 
7 years.
  The Section 8 Voucher Reform Act expands and improves this important 
program and will ensure more families have access to safe, affordable 
housing. H.R. 1851 authorizes an additional 100,000 vouchers over the 
next 5 years. It also updates the formula used to allocate Section 8 
voucher funds to housing agencies and simplifies the rent structure to 
eliminate current inefficiencies, allowing agencies to serve more 
families.
  This legislation encourages self-sufficiency and rewards work by 
providing incentives, such as reducing rent disincentives for increases 
in earned income and offering income exemptions for adult full time 
student dependents. H.R. 1851 also promotes homeownership by allowing 
families to use a housing voucher as a down payment toward the purchase 
of their first home. Homeownership is the greatest source of wealth for 
many Americans. It strengthens our families and our communities.
  Madam Speaker, every family deserves clean, stable, and affordable 
housing. I am

[[Page 18863]]

proud to rise today in support of this important legislation.
  Ms. WATERS. Madam Chairman, I yield back the balance of my time.
  The Acting CHAIRMAN (Ms. Baldwin). All time for general debate has 
expired.
  Pursuant to the rule, the amendment in the nature of a substitute 
printed in the bill shall be considered as an original bill for the 
purpose of amendment under the 5-minute rule and shall be considered 
read.
  The text of the committee amendment is as follows:

                               H.R. 1851

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

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Section 8 Voucher Reform Act 
     of 2007''.

     SEC. 2. INSPECTION OF DWELLING UNITS.

       (a) In General.--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 housing 
     quality and safety standards under any Federal housing 
     program inspection standard, 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 of 1990, a public housing agency may 
     authorize occupancy before the inspection under clause (i) 
     has been completed, and may 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).'';
       (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, for each assisted dwelling 
     unit, make biennial inspections 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.)); 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) 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 within 90 
     days after receipt of such notice.

       ``(ii) Withholding and release of assistance amounts.--The 
     public housing agency shall withhold all of the assistance 
     amounts under this subsection with respect to a dwelling unit 
     that is in noncompliance with housing quality standards under 
     subparagraph (B). Subject to clause (iii), the agency shall 
     promptly release any withheld amounts to the owner of the 
     dwelling unit upon completion of repairs that remedy such 
     noncompliance.
       ``(iii) Use of withheld assistance to pay for repairs.--The 
     public housing agency may use such amounts withheld to make 
     repairs to the dwelling unit or to contract to have repairs 
     made (or to contract with an inspector referred to in clause 
     (i)(I) to make or contract for such repairs), and shall 
     subtract the cost of such repairs from any amounts released 
     to the owner of the unit upon remedying such noncompliance.
       ``(iv) Protection of tenants.--An owner of a dwelling unit 
     may not terminate the tenancy of any tenant or refuse to 
     renew a lease for such unit because of the withholding of 
     assistance pursuant to this subparagraph.
       ``(v) Termination of lease or assistance payments 
     contract.--If assistance amounts under this section for a 
     dwelling unit are withheld pursuant to clause (ii) and the 
     owner does not correct the noncompliance before the 
     expiration of the lease for the dwelling unit and such lease 
     is not renewed, the Secretary shall recapture any such 
     amounts from the public housing agency.
       ``(vi) Applicability.--This subparagraph shall apply to any 
     dwelling unit for which a housing assistance payments 
     contract is entered into or renewed after the date of the 
     effectiveness of the regulations implementing this 
     subparagraph.''.
       (b) Regulations.--The Secretary of Housing and Urban 
     Development shall issue any regulations necessary to carry 
     out the amendment made by subsection (a)(3) not later than 
     the expiration of the 12-month period beginning upon the date 
     of the enactment of this Act. Such regulations shall take 
     effect not later than the expiration of the 90-day period 
     beginning upon such issuance. This subsection shall take 
     effect upon enactment of this Act.

     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 shall be made--
       ``(i) in the case of all families, upon the initial 
     provision of housing assistance for the family;
       ``(ii) annually thereafter, except as provided in 
     subparagraph (B)(i);
       ``(iii) 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 $1,500 (or such lower amount as the public housing agency 
     may, at the option of the agency or owner, establish) or more 
     in annual adjusted income; and
       ``(iv) 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 $1,500 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 three 
     months of a certification period.
       ``(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

[[Page 18864]]

     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 income.--Except as otherwise 
     provided in this paragraph, in determining the income of a 
     family for a year, a public housing agency or owner may use 
     the income of the family as determined by the agency or owner 
     for the preceding year, taking into consideration any 
     redetermination of income during such prior year pursuant to 
     clause (iii) or (iv) of paragraph (6)(A).
       ``(B) Earned income.--For purposes of this section, the 
     earned income of a family for a year shall be the amount of 
     earned income by the family in the prior year minus an amount 
     equal to 10 percent of the lesser of such prior year's earned 
     income or $10,000, except that the income of a family for 
     purposes of section 16 (relating to eligibility for assisted 
     housing and income mix) shall be determined without regard to 
     any reduction under this subparagraph.
       ``(C) 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), 
     or the amount of fixed income of any other family, based on 
     the prior year's income or fixed income, respectively, 
     pursuant to subparagraph (A), such prior year's income or 
     fixed income, respectively, shall be adjusted by applying an 
     inflationary factor as the Secretary shall, by regulation, 
     establish.
       ``(D) Other income.--If, for any year, a public housing 
     agency or owner determines the income for any family based on 
     the prior year's income, with respect to prior year 
     calculations of types of income not subject to subparagraph 
     (B), a public housing agency or owner may make other 
     adjustments as it considers appropriate to reflect current 
     income.
       ``(E) 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 as defined in section 3(h) of the Food Stamp 
     Act of 1977). The Secretary shall, in consultation with other 
     appropriate Federal agencies, develop procedures to enable 
     public housing agencies and owners to have access to such 
     income determinations made by other Federal programs.
       ``(F) 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 minimus 
     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--
       ``(i) any imputed return on assets; and
       ``(ii) any amounts that would be eligible for exclusion 
     under section 1613(a)(7) of the Social Security Act (42 
     U.S.C. 1382b(a)(7)).
       ``(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.--$725 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,

     $500 for each such member.
       ``(C) 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.
       ``(D) Permissive deductions.--Such additional deductions as 
     a public housing agency 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 
     exclusions 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 exclusion 
     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.''.
       (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'' each place such term 
     appears 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 the 
     Secretary of Housing and Urban Development determines that 
     the application of the amendments made by this section 
     results in a reduction in the rental income of a public 
     housing agency that is not de minimus during the period that 
     the operating formula income is frozen at a level that does 
     not fully reflect the changes made by such amendments, the 
     Secretary shall make appropriate adjustments in the formula 
     income of the agency.
       (2) HUD reports on public housing revenue impact.--For each 
     of fiscal years 2008 and 2009, 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.
       (g) Effective Date and Transition.--The amendments made by 
     this section shall apply with respect to fiscal year 2008 and 
     fiscal years thereafter.

     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

[[Page 18865]]

       ``(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, bonds, and other forms of capital 
     investment. Such term does not include interests in Indian 
     trust land, equity accounts in homeownership programs of the 
     Department of Housing and Urban Development, or Family Self 
     Sufficiency accounts.
       ``(B) Exclusions.--Such term does not include--
       ``(i) the value of personal property, except for items of 
     personal property of significant value, as the public housing 
     agency may determine;
       ``(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 (under the meaning given such term in section 
     1614 of the Social Security Act (42 U.S.C. 1382c)); 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 delay eviction 
     or termination of the family based on such noncompliance for 
     a period of not more than 6 months.''.
       (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 2007 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. 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, 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.'';
       (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 
     inserting ``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 families residing 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 families residing in Puerto 
     Rico or any other territory or possession of the United 
     States''.
       (c) Project-Based Section 8 Assistance.--Section 16(c)(3) 
     of the United States Housing Act of 1937 (42 U.S.C. 
     1437n(c)(3)) 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 families residing 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 2008 
     through 2012, 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) vouchers in connection with the HOPE VI program 
     under section 24;
       ``(vii) demolition or disposition of public housing units 
     pursuant to section 18 of the United States Housing Act of 
     1937 (42 U.S.C. 1437p);
       ``(viii) mandatory and voluntary conversions of public 
     housing to vouchers, pursuant to sections 33 and 22 of the 
     United States Housing Act of 1937, respectively (42 U.S.C. 
     1437z-5, 1437t);
       ``(ix) vouchers necessary to comply with a consent decree 
     or court order;
       ``(x) vouchers to replace dwelling units that cease to 
     receive project-based assistance under subsection (b), (c), 
     (d), (e), or (v) of this section;
       ``(xi) tenant protection assistance, including replacement 
     and relocation assistance; and
       ``(xii) 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 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), or (x).
       ``(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 
     the first-time renewal of vouchers funded under paragraph 
     (1)(B);
       ``(iii) by making any adjustments necessary for full year 
     funding of vouchers ported in the prior calendar year 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

[[Page 18866]]

     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 in 
     2009 shall not include amounts resulting from a leasing rate 
     in excess of 103 percent of an agency's authorized vouchers 
     in 2008 which results from the use of accumulated amounts, as 
     referred to in paragraph (4)(A).
       ``(D) Moving to work; housing innovation program.--
     Notwithstanding subparagraphs (A) and (B), each public 
     housing agency participating at any time 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) or in the housing innovation program under 
     section 36 of this Act shall be funded pursuant to its 
     agreement under such program and shall be 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 amounts to any public 
     housing agency, at the request of the agency, in an amount up 
     to two 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) Recapture.--
       ``(A) In general.--The Secretary shall recapture, 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 recapture under this subparagraph 
     at the end of 2007, an amount equal to one twelfth the amount 
     allocated to the public housing agency for such year pursuant 
     to paragraph (2)(A); and
       ``(ii) with respect to the recapture under this 
     subparagraph at the end of each of 2008, 2009, 2010, and 
     2011, 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 recaptured under this 
     subparagraph, and may use such amounts for all authorized 
     purposes.
       ``(B) Reallocation.--Not later than May 1 of each calendar 
     year, the Secretary shall--
       ``(i) calculate the aggregate unused amounts for the 
     preceding year recaptured pursuant to subparagraph (A);
       ``(ii) set aside and make available such amounts as the 
     Secretary considers appropriate to reimburse public housing 
     agencies for increased costs related to portability and 
     family self-sufficiency activities during such year; 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.
       ``(C) Use.--Amounts reallocated to a public housing agency 
     pursuant to subparagraph (B)(iii) may be used only to 
     increase voucher leasing rates as provided under paragraph 
     (2)(C).''.
       (b) Absorption of Vouchers From Other Agencies.--Section 
     8(r)(2) of the United States Housing Act of 1937 (42 U.S.C. 
     1437f(r)(2)) is amended by adding after the period at the end 
     the following: ``The agency shall absorb the family into its 
     program for voucher assistance under this section and shall 
     have priority to receive additional funding from the 
     Secretary for the housing assistance provided for such family 
     from amounts made available pursuant to subsection 
     (dd)(4)(B).''
       (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 for fiscal years 1997 through 2002, 
     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), by striking subparagraphs (B) and (C) 
     and inserting the following new subparagraphs:
       ``(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) until superseded through subsequent rulemaking, 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);
       ``(iii) include an amount for the cost of issuing voucher 
     to new participants;
       ``(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
       (2) in paragraph (4), by striking ``1999'' and inserting 
     ``2007''.
       (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 one 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 three such coordinators in any of 
     fiscal years 1998 through 2007 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 an family self-
     sufficiency program for its residents, it shall be entitled 
     to funding to cover the costs of up to one 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 one 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.

[[Page 18867]]

       ``(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 six 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 the Congress. Not later than the 
     expiration of the 8-year period beginning upon such 
     enactment, the Secretary shall submit a final evaluation 
     report to the 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 subparagraphs:
       ``(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 one-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 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. PHA REPORTING OF RENT PAYMENTS TO CREDIT REPORTING 
                   AGENCIES.

       (a) In General.--Section 3 of the United States Housing Act 
     of 1937 (42 U.S.C. 1437a), as amended by the preceding 
     provisions of this Act, is further amended by adding at the 
     end the following new subsection:
       ``(e) PHA Reporting of Rent Payments to Credit Reporting 
     Agencies.--
       ``(1) Authority.--To the extent that a family receiving 
     tenant-based housing choice vouchers under section 8 by a 
     public housing agency agrees in writing to reporting under 
     this subsection, the public housing agency may submit to 
     consumer reporting agencies described in section 603(p) of 
     the Fair Credit Reporting Act (15 U.S.C. 1681a) information 
     regarding the past rent payment history of the family with 
     respect to the dwelling unit for which such assistance is 
     provided.
       ``(2) Format.--The Secretary, after consultation with 
     consumer reporting agencies referred in paragraph (1), shall 
     establish a system and format to be used by public housing 
     agencies for reporting of information under such paragraph 
     that provides such information in a format and manner that is 
     similar to other credit information submitted to such 
     consumer reporting agencies and is usable by such 
     agencies.''.
       (b) Effective Date.--The amendment made by subsection (a) 
     shall take effect on the date of the enactment of this Act.

     SEC. 10. 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.
       ``(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 rent calculations and subsidy payments.
       ``(vii) Effectiveness in carrying out family self-
     sufficiency activities.
       ``(viii) Timeliness of actions related to landlord 
     participation.
       ``(ix) Such other areas as the Secretary considers 
     appropriate.
       ``(C) Periodic assessment.--Using the standards and 
     procedures established under this paragraph, the Secretary 
     shall conduct an assessment of the performance of each public 
     housing agency carrying out a program referred to in 
     subparagraph (A) and shall submit a report to the Congress 
     regarding the results of each such assessment.''.

     SEC. 11. 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. For purposes of 
     the preceding sentence, the term `single family properties' 
     means buildings with no more than four 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 six months, 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 `50 percent' for `25 percent'.'';

       (3) in the first sentence of subparagraph (F), by striking 
     ``10 years'' and inserting ``15 years'';
       (4) in subparagraph (G)--

[[Page 18868]]

       (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) 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--
       ``(i) dwelling units in cooperative housing;
       ``(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.
       ``(M) 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.
       ``(N) 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.''.

     SEC. 12. 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.--The Secretary shall monitor rent 
     burdens and submit a report to the Congress annually on the 
     percentage of families assisted under this subsection, 
     occupying dwelling units of any 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.
       ``(ii) Concentration of poverty.--The Secretary shall 
     submit a report to the Congress annually on the degree to 
     which families assisted under this subsection in each 
     metropolitan area are clustered in lower rent, higher poverty 
     areas and how, 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.--Each 
     public housing agency shall make publicly available the 
     information on rent burdens provided by the Secretary 
     pursuant to clause (i), and, for agencies located in 
     metropolitan areas, the information on concentration provided 
     by the Secretary pursuant to clause (ii). If the percentage 
     of families paying more than 30 percent or 40 percent of 
     income exceeds the national average for either of such 
     categories, as reported pursuant to clause (i), the public 
     housing agency shall adjust the payment standard to eliminate 
     excessive rent burdens within a reasonable time period or 
     explain its reasons for not making such adjustment. The 
     Secretary may not deny the request of a public housing agency 
     to set a payment standard up to 120 percent of the fair 
     market rent to remedy rent burdens in excess of the national 
     average or undue concentration of families assisted under 
     this subsection in lower rent, higher poverty sections of a 
     metropolitan area except on the basis that an agency has not 
     demonstrated that its request meets these criteria. If a 
     request of a public housing agency has not been denied or 
     approved with 45 days after the request is made, the request 
     shall be considered to have been approved.''.
       (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) 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''.

     SEC. 13. 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) urban county or portion of an urban county, as such 
     term is defined in such section 102(a), located outside the 
     boundaries of any metropolitan city specified in subclause 
     (I).
       ``(iii) The Secretary shall, at the request of one or more 
     public housing agencies, establish a separate market area for 
     part or all of the area under the jurisdiction of such 
     agencies, 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 data from a larger area for 
     purposes of annual updates.
       ``(iv) 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

[[Page 18869]]

     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. 14. SCREENING OF APPLICANTS.

       Subparagraph (B) of section 8(o)(6) of the United States 
     Housing Act of 1937 (1437f(o)(6)(B)) is amended 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. 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 notice, shall be 
     considered.''.

     SEC. 15. ENHANCED VOUCHERS.

       Subparagraph (B) of section 8(t)(1) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(B)) is amended by 
     inserting after ``eligibility event for the project,'' the 
     following: ``regardless of unit and family size standards 
     normally used by the administering agency (except that 
     tenants may be required to move to units of appropriate size 
     if available on the premises),''.

     SEC. 16. HOUSING INNOVATION PROGRAM.

       (a) Establishment of Program.--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. HOUSING INNOVATION PROGRAM.

       ``(a) Purpose.--The purpose of the program under this 
     section is to provide public housing agencies and the 
     Secretary the flexibility to design and evaluate innovative 
     approaches to providing housing assistance that--
       ``(1) increase housing opportunities for low-income 
     families, including preventing homelessness, rehabilitate or 
     replace housing at risk of physical deterioration or 
     obsolescence, and develop additional affordable housing;
       ``(2) leverage other Federal, State, and local funding 
     sources, including the low-income housing tax credit program, 
     to expand and preserve affordable housing opportunities, 
     including public housing;
       ``(3) provide financial incentives and other support 
     mechanisms to families to obtain employment and increase 
     earned income;
       ``(4) test alternative rent-setting policies to determine 
     whether rent determinations can be simplified and 
     administrative cost savings can be realized while protecting 
     extremely low- and very low-income families from increased 
     rent burdens;
       ``(5) are subject to rigorous evaluation to test the 
     effectiveness of such innovative approaches; and
       ``(6) are developed with the support of the local community 
     and with the substantial participation of affected residents.
       ``(b) Program Authority.--
       ``(1) Scope.--The Secretary shall carry out a housing 
     innovation program under this section under which the 
     Secretary may designate not more than 60 public housing 
     agencies to participate, at any one time, in the housing 
     innovation program, in accordance with subsections (c) and 
     (d), except that, in addition to such 60 agencies, the 
     Secretary may designate an additional 20 agencies to 
     participate in the program under the terms of subsection (h).
       ``(2) Duration.--The Secretary may carry out the housing 
     innovation program under this section only during the 10-year 
     period beginning on the date of the enactment of the Section 
     8 Voucher Reform Act of 2007.
       ``(c) Participation of Existing MTW Agencies.--
       ``(1) Existing mtw agencies.--Subject to the requirements 
     of paragraph (2), all existing MTW agencies shall be 
     designated to participate in the program.
       ``(2) Conditions of participation.--The Secretary shall 
     approve and transfer into the housing innovation program 
     under this section each existing MTW agency that the 
     Secretary determines is not in default under such agreement 
     and which the Secretary also determines is meeting the goals 
     and objectives of its moving to work plan. Each such agency 
     shall, within two years after the date of the enactment of 
     the Section 8 Voucher Reform Act of 2007, make changes to its 
     policies that were implemented before such date of enactment 
     in order to comply with the requirements of this section.
       ``(d) Additional Agencies.--
       ``(1) Proposals; selection process.--In addition to 
     agencies participating in the program pursuant to subsection 
     (c), the Secretary shall, within 18 months after such date of 
     enactment, select public housing agencies to participate in 
     the program pursuant to a competitive process that meets the 
     following requirements:
       ``(A) Any public housing agency may be selected to 
     participate in the program, except that not more than 5 
     agencies that are near-troubled under the public housing 
     assessment system and/or section 8 management assessment 
     program may be selected, and except that any agency for which 
     the Secretary has hired an alternative management entity for 
     such agency or has taken possession of all or any part of 
     such agency's public housing program shall not be eligible 
     for participation. Any near-troubled public housing agency 
     participating in the program shall remain subject to the 
     requirements of this Act governing tenant rent contributions, 
     eligibility, and continued participation, and may not adopt 
     policies described in subsection (e)(4) (relating to rents 
     and requirements for continued occupation and participation).
       ``(B) The process provides, to the extent possible based on 
     eligible agencies submitting applications and taking into 
     account existing MTW agencies participating pursuant to 
     subsection (c), for representation among agencies selected of 
     agencies having various characteristics, including both large 
     and small agencies, agencies serving urban, suburban, and 
     rural areas, and agencies in various geographical regions 
     throughout the United States, and which may include the 
     selection of agencies that only administer the voucher 
     program under section 8(o).
       ``(C) Any agency submitting a proposal under this paragraph 
     shall have provided notice to residents and the local 
     community, not later than 30 days before the first of the two 
     public meetings required under subparagraph (D).
       ``(D) The agency submitting a proposal shall hold two 
     public meetings to receive comments on the agency's proposed 
     application, on the implications of changes under the 
     proposal, and the possible impact on residents.
       ``(E) The process includes criteria for selection, as 
     follows:
       ``(i) The extent to which the proposal generally identifies 
     existing rules and regulations that impede achievement of the 
     goals and objectives of the proposal and an explanation of 
     why participation in the program is necessary to achieve such 
     goals and objectives.
       ``(ii) The extent of commitment and funding for carrying 
     out the proposal by local government agencies and nonprofit 
     organizations, including the provision of additional funding 
     and other services, and the extent of support for the 
     proposal by residents, resident advisory boards, and members 
     of the local community.
       ``(iii) The extent to which the agency has a successful 
     history of implementing strategies similar to those set forth 
     in the agency's proposal.
       ``(iv) Whether the proposal pursues a priority strategy as 
     specified in paragraph (2). In the case of any proposal 
     utilizing a such a priority strategy, the proposal shall be 
     evaluated based upon--

       ``(I) the extent to which the proposal is likely to achieve 
     the objectives of developing additional housing dwelling 
     units affordable to extremely low-, very low-, and low-income 
     families, and preserving, rehabilitating, or modernizing 
     existing public housing dwelling units; or
       ``(II) the extent to which the proposal is likely to 
     achieve the purposes of moving families toward economic self-
     sufficiency and increasing employment rates and wages of 
     families without imposing a significant rent burden on the 
     lowest income families, as well as such of the additional 
     purposes as may be identified in the proposal, which may 
     include expanding housing choices utilizing coordinators for 
     the family self-sufficiency program under section 23, making 
     more effective use of program funds, and improving program 
     management.

       ``(v) Such other factors as the Secretary may provide, in 
     consultation with participating agencies, program 
     stakeholders, and any entity conducting evaluations pursuant 
     to subsection (f).
       ``(2) Priority strategies.--For purposes of paragraph 
     (1)(E)(iv), the following are priority strategies:
       ``(A) Development, rehabilitation, and financing.--A 
     strategy of development of additional affordable housing 
     dwelling units and/or a strategy for preservation and 
     physical rehabilitation and modernization of existing public 
     housing dwelling units. Such strategies may include 
     innovative financing proposals, leveraging of non-public 
     housing funds (including the low-income housing tax credit 
     program), and combining of funds for assistance under 
     sections 8 and 9. Each such proposal shall include detailed 
     information about the strategies expected to be employed, an 
     explanation of why participation in the program is necessary 
     to employ such strategies, and numerical goals regarding the 
     number of dwelling units to be developed, preserved, or 
     rehabilitated.
       ``(B) Rent reforms.--A strategy to implement rent reforms, 
     which shall be designed to help families increase their 
     earned income through rent and other work incentives, and may 
     also test the effectiveness of achieving administrative cost 
     savings without increased rent burdens for extremely low- and 
     very low-income families.
       ``(3) Contract amendment.--After selecting agencies under 
     this subsection, the Secretary shall promptly amend the 
     applicable annual contributions contracts of such agencies to 
     provide that--
       ``(A) subject to subparagraph (B), such agencies may 
     implement any policies and activities that are not 
     inconsistent with this section without specifying such 
     policies and activities in such amendment and without 
     negotiating or entering into any other agreements with the 
     Secretary specifying such policies and activities; and
       ``(B) the activities to be implemented by an agency under 
     the program in a given year shall be described in and subject 
     to the requirements of the annual plan under subsection 
     (e)(8). Upon the enactment of this section, any agency which 
     has participated in the Moving to Work demonstration may, at 
     its option, be subject to the provisions of this paragraph in 
     lieu of any other agreement required by the Secretary for 
     participation in the program.

[[Page 18870]]

       ``(4) Maintaining participation rate.--If, at any time 
     after the initial selection period under paragraph (1), the 
     number of public housing agencies participating in the 
     program under this section is fewer than 40, the Secretary 
     shall promptly solicit applications from and select public 
     housing agencies to participate in the program under the 
     terms and conditions for application and selection provided 
     in this section to increase the number of agencies 
     participating in the program to 40.
       ``(e) Program Requirements.--
       ``(1) Program funds.--
       ``(A) In general.--To carry out a housing innovation 
     program under this section, the participating agency may use 
     amounts provided to the agency from the Operating Fund under 
     section 9(e), amounts provided to the agency from the Capital 
     Fund under section 9(d), and amounts provided to the agency 
     for voucher assistance under section 8(o). Such program funds 
     may be used for any activities that are authorized by 
     sections 8(o) or 9, or for other activities that are not 
     inconsistent with this section, which shall include, without 
     limitation--
       ``(i) providing capital and operating assistance, and 
     financing for housing previously developed or operated 
     pursuant to a contract between the Secretary and such agency;
       ``(ii) the acquisition, new construction, rehabilitation, 
     financing, and provision of capital or operating assistance 
     for low-income housing (including housing other than public 
     housing) and related facilities, which may be for terms 
     exceeding the term of the program under this section in order 
     to secure other financing for such housing;
       ``(iii) costs of site acquisition and improvement, 
     providing utility services, demolition, planning, and 
     administration of activities under this paragraph;
       ``(iv) housing counseling for low-income families in 
     connection with rental or homeownership assistance provided 
     under the program;
       ``(v) safety, security, law enforcement, and anticrime 
     activities appropriate to protect and support families 
     assisted under the program;
       ``(vi) tenant-based rental assistance, which may include 
     the project-basing of such assistance; and
       ``(vii) appropriate and reasonable financial assistance 
     that is required to preserve low-income housing otherwise 
     assisted under programs administered by the Secretary or 
     under State or local low-income housing programs.
       ``(B) Combining funds.--Notwithstanding any other provision 
     of law, a participating agency may combine and use program 
     funds for any activities authorized under this section, 
     except that a participating agency may use funds provided for 
     assistance under section 8(o) for activities other than those 
     authorized under section 8(o) only if (i) in the calendar 
     year prior to its participation in the program, the agency 
     utilized not less than 95 percent of such funds allocated for 
     that calendar year for such authorized activities or 95 
     percent of its authorized vouchers, including vouchers ported 
     in to the agency and vouchers ported out; or (ii) after 
     approval to participate in the program, the agency achieves 
     such utilization for a 12-month period. This subparagraph 
     shall not apply to participating agencies approved by the 
     Secretary to combine funds from sections 8 and 9 of the Act 
     prior to enactment of this section.
       ``(2) Use of program funds.--In carrying out the housing 
     innovation program under this section, each participating 
     agency shall continue to assist--
       ``(A) not less than substantially the same number of 
     eligible low-income families under the program as it assisted 
     in the base year for the agency; and
       ``(B) a comparable mix of families by family size, subject 
     to adjustment to reflect changes in the agency's waiting 
     list, except that the Secretary may approve exceptions to 
     such requirements for up to 3 years based on modernization or 
     redevelopment activities proposed in an annual plan submitted 
     and approved in accordance with paragraph (8).

     Determinations with respect to the number of families served 
     shall be adjusted based on any allocation of additional 
     vouchers under section 8(o) and to reflect any change in the 
     percentage of program funds that a participating agency 
     receives compared to the base year.
       ``(3) Retained provisions.--Notwithstanding any other 
     provision of this section, families receiving assistance 
     under this section shall retain the same rights of judicial 
     review of agency action as they would otherwise have had if 
     the agency were not participating in the program, and each 
     participating agency shall comply with the following 
     provisions of this Act:
       ``(A) Subsections (a)(2)(A) and (b)(1) of section 16 
     (relating to targeting for new admissions in the public 
     housing and voucher programs).
       ``(B) Section 2(b) (relating to tenant representatives on 
     the public housing agency board of directors).
       ``(C) Section 3(b)(2) (relating to definitions for the 
     terms `low-income families' and `very low-income families').
       ``(D) Section 5(A)(e) (relating to the formation of and 
     consultation with a resident advisory board).
       ``(E) Sections 6(f)(1) and 8(o)(8)(B) (relating to 
     compliance of units assisted with housing quality standards 
     or other codes).
       ``(F) Sections 6(c)(3), 6(c)(4)(i), and 8(o)(6)(B) 
     (relating to rights of public housing applicants and existing 
     procedural rights for applicants under section 8(o)).
       ``(G) Section 6(k) (relating to grievance procedures for 
     public housing tenants) and comparable procedural rights for 
     families assisted under section 8(o).
       ``(H) Section 6(l) (relating to public housing lease 
     requirements), except that for units assisted both with 
     program funds and low-income housing tax credits, the initial 
     lease term may be less than 12 months if required to conform 
     lease terms with such tax credit requirements.
       ``(I) Section 7 (relating to designation of housing for 
     elderly and disabled households), except that a participating 
     agency may make such designations(at initial designation or 
     upon renewal) for a term of up to 5 years if the agency 
     includes in its annual plan under paragraph (8) an analysis 
     of the impact of such designations on affected households and 
     such designation is subject to the program evaluation. Any 
     participating agency with a designated housing plan that was 
     approved under the moving to work demonstration may continue 
     to operate under the terms of such plan for a term of 5 years 
     (with an option to renew on the same terms for an additional 
     5 years) if it includes in its annual plan an analysis of the 
     impact of such designations on affected households and is 
     subject to evaluation under subsection (f).
       ``(J) Subparagraphs (C) through (E) of section 8(o)(7) 
     (relating to lease requirements and eviction protections for 
     families assisted with tenant-based assistance).
       ``(K) Subject to paragraph (1)(B) of this subsection, 
     section 8(o)(13)(B) (relating to a percentage limitation on 
     project-based assistance), except that for purposes of this 
     subparagraph such section shall be applied by substituting 
     `50 percent' for `20 percent'.
       ``(L) Section 8(o)(13)(E) (relating to resident choice for 
     tenants of units with project-based vouchers), except with 
     respect to--
       ``(i) in the case of agencies participating in the moving 
     to work demonstration, any housing assistance payment 
     contract entered into within 2 years after the enactment of 
     this section;
       ``(ii) project-based vouchers that replace public housing 
     units;
       ``(iii) not more than 10 percent of the vouchers available 
     to the participating agency upon entering the housing 
     innovation program under this section; and
       ``(iv) any project-based voucher program that is subject to 
     evaluation under subsection (f).
       ``(M) Section 8(r) (relating to portability of voucher 
     assistance), except that a participating agency may receive 
     funding for portability obligations under section 8(dd) in 
     the same manner as other public housing agencies.
       ``(N) Subsections (a) and (b) of section 12 (relating to 
     payment of prevailing wages).
       ``(O) Section 18 (relating to demolition and disposition of 
     public housing).
       ``(4) Rents and requirements for continued occupancy or 
     participation.--
       ``(A) Before policy change.--Before adopting any policy 
     pursuant to participation in the housing innovation program 
     under this section that would make a material change to the 
     requirements of this Act regarding tenant rents or 
     contributions, or conditions of continued occupancy or 
     participation, a participating agency shall complete each of 
     the following actions:
       ``(i) The agency shall conduct an impact analysis of the 
     proposed policy on families the agency is assisting under the 
     program under this section and on applicants on the waiting 
     list, including analysis of the incidence and severity of 
     rent burdens greater than 30 percent of adjusted income on 
     households of various sizes and types and in various income 
     tiers, that would result, if any, without application of the 
     hardship provisions. The analysis with respect to applicants 
     on the waiting list may be limited to demographic data 
     provided by the applicable consolidated plan, information 
     provided by the Secretary, and other generally available 
     information. The proposed policy, including provisions for 
     addressing hardship cases and transition provisions that 
     mitigate the impact of any rent increases or changes in the 
     conditions of continued occupancy or participation, and data 
     from this analysis shall be made available for public 
     inspection for at least 60 days in advance of the public 
     meeting described in clause (ii).
       ``(ii) The agency shall hold a public meeting regarding the 
     proposed change, including the hardship provisions, which may 
     be combined with a public meeting on the draft annual plan 
     under paragraph (8) or the annual report under paragraph (9).
       ``(iii) The board of directors or other similar governing 
     body of the agency shall approve the change in public 
     session.
       ``(iv) The agency shall obtain approval from the Secretary 
     of the annual plan or plan amendment. The Secretary may 
     approve a plan or amendment containing a material change to 
     the requirements of this Act regarding tenant rents or 
     contributions, or conditions of continued occupancy or 
     participation, only if the agency agrees that such policy may 
     be included as part of the national evaluation.
       ``(B) After policy change.--After adopting a policy 
     described in subparagraph (A), a program agency shall 
     complete each of the following actions:
       ``(i) The agency shall provide adequate notice to 
     residents, which shall include a description of the changes 
     in the public housing lease or participation agreement that 
     may be required and of the hardship or transition protections 
     offered.
       ``(ii) In the case of any additional requirements for 
     continued occupancy or participation, the agency shall 
     execute a lease addendum or participation agreement 
     specifying the requirements applicable to both the resident 
     and the agency. A resident may bring a civil action to 
     enforce commitments of the agency made through the lease 
     addendum or participation agreement.

[[Page 18871]]

       ``(iii) The agency shall reassess rent, subsidy level, and 
     policies on program participation no less often than every 
     two years, which shall include preparing a revised impact 
     analysis, and make available to the public the results of 
     such reassessment and impact analysis. The requirement under 
     this clause may be met by sufficiently detailed interim 
     reports, if any, by the national evaluating entity.
       ``(iv) The agency shall include in the annual report under 
     paragraph (8) information sufficient to describe any hardship 
     requests, including the number and types of requests made, 
     granted, and denied, the use of transition rules, and adverse 
     impacts resulting from changes in rent or continued occupancy 
     policies, including actions taken by the agency to mitigate 
     such impacts and impacts on families no longer assisted under 
     the program.
       ``(C) Applicability to existing mtw agencies.--An existing 
     MTW agency that, before the date of the enactment of this 
     section, implemented material changes to the requirements of 
     this Act regarding tenant rents or contributions, or 
     conditions of continued occupancy or participation, as part 
     of the moving to work demonstration shall not be subject to 
     subparagraph (A) with regard to such previously implemented 
     changes, but shall comply with the requirements of 
     subparagraph (B)(ii) and provide the evaluation and impact 
     analysis required by subparagraph (B)(iii) by the end of the 
     second agency fiscal year ending after such date of 
     enactment.
       ``(5) Prohibition against decrease in program funds.--The 
     amount of program funds a participating agency receives shall 
     not be diminished by its participation in the housing 
     innovation program under this section.
       ``(6) Submission of information.--As part of the annual 
     report required under subsection (g)(2), each participating 
     agency shall submit information annually to the Secretary 
     regarding families assisted under the program of the agency 
     and comply with any other data submissions required by the 
     Secretary for purposes of evaluation of the program under 
     this section.
       ``(7) Public and resident participation.--Each 
     participating agency shall provide opportunities for resident 
     and public participation in the annual plan under paragraph 
     (8), as follows:
       ``(A) Notice to residents.--
       ``(i) Notice.--Each year, the agency shall provide notice 
     to the low-income families it serves under the programs 
     authorized by this section as to the impact of proposed 
     policy changes and program initiatives and of the schedule of 
     resident advisory board and public meetings for the annual 
     plan.
       ``(ii) Meeting.--The agency shall hold at least one meeting 
     with the resident advisory board (including representatives 
     of recipients of assistance under section 8) to review the 
     annual plan for each year.
       ``(B) Public meeting.--With respect to each annual plan, 
     the agency shall hold at least one annual public meeting to 
     obtain comments on the plan, which may be combined with a 
     meeting to review the annual report. In the case of any 
     agency that administers, in the aggregate, more than 15,000 
     public housing units and vouchers, the agency shall hold 
     additional meetings in locations that promote attendance by 
     residents and other stakeholders.
       ``(C) Public availability.--Before adoption of any annual 
     plan, and not less than 30 days before the public meeting 
     required under subparagraph (A)(ii) with respect to the plan, 
     the agency shall make the proposed annual plan available for 
     public inspection. The annual plan shall be made available 
     for public inspection not less than 30 days before approval 
     by the board of directors (or other similar governing body) 
     of the agency and shall remain publicly available.
       ``(D) Board approval.--Before submitting an annual plan or 
     annual report to the Secretary, the plan or report, as 
     applicable, shall be approved in a public meeting by the 
     board of directors or other governing body of the agency.
       ``(8) Annual plan.--
       ``(A) Requirement.--For each year that a participating 
     agency participates in the housing innovation program under 
     this section, the agency shall submit to the Secretary, in 
     lieu of all other planning requirements, an annual plan under 
     this paragraph.
       ``(B) Contents.--Each annual plan shall include the 
     following information:
       ``(i) A list and description of all program initiatives and 
     generally applicable policy changes, including references to 
     affected provisions of law or the implementing regulations 
     affected.
       ``(ii) A description and comparison of changes under the 
     housing innovation program of the agency from the plan for 
     such program for the preceding year.
       ``(iii) A description of property redevelopment or 
     portfolio repositioning strategies and proposed changes in 
     policies or uses of funds required to implement such 
     strategies.
       ``(iv) Documentation of public and resident participation 
     sufficient to comply with the requirements under paragraphs 
     (4) and (7), including a copy of any recommendations 
     submitted in writing by the resident advisory board of the 
     agency and members of the public, a summary of comments, and 
     a description of the manner in which the recommendations were 
     addressed.
       ``(v) Certifications by the agency that--

       ``(I) the annual plan will be carried out in conformity 
     with title VI of the Civil Rights Act of 1964, the Fair 
     Housing Act, section 504 of the Rehabilitation Act of 1973, 
     title II of the Americans with Disabilities Act of 1990, and 
     the rules, standards, and policies in the approved plan;
       ``(II) the agency will affirmatively further fair housing; 
     and
       ``(III) the agency has complied and will continue to comply 
     with its obligations under the national evaluation.

       ``(vi) A description of the agency's local asset management 
     strategy for public housing properties, which shall be in 
     lieu of any other asset management, project based management 
     or accounting, or other system of allocating resources and 
     costs to participating agency assets or cost centers that the 
     Secretary may otherwise impose under this Act.
       ``(C) Changes.--If the agency proposes to make material 
     changes in policies or initiatives in the plan during the 
     year covered by the plan, the agency shall consult with the 
     resident advisory board for the agency established pursuant 
     to section 5A(e) and the public regarding such changes before 
     their adoption.
       ``(D) Approval process.--
       ``(i) Timing.--The Secretary shall review and approve or 
     disapprove each annual plan submitted to the Secretary within 
     45 days after such submission.
       ``(ii) Standards for disapproval.--The Secretary may 
     disapprove a plan only if--

       ``(I) the Secretary reasonably determines, based on 
     information contained in the annual plan or annual report, 
     that the agency is not in compliance with the requirements of 
     this section;
       ``(II) the annual plan or most recent annual report is not 
     consistent with other reliable information available to the 
     Secretary; or
       ``(III) the annual plan or annual report or the agency's 
     activities under the program are not otherwise in accordance 
     with applicable law.

       ``(iii) Failure to disapprove.--If a submitted plan is not 
     disapproved within 45 days after submission, the plan shall 
     be considered to be approved for purposes of this section. 
     The preceding sentence shall not preclude judicial review 
     regarding such compliance pursuant to chapter 7 of title 5, 
     United States Code, or an action regarding such compliance 
     under section 1979 of the Revised Statutes of the United 
     States (42 U.S.C. 1983).
       ``(f) Evaluation of Performance.--
       ``(1) In general.--Not later than the expiration of the 
     one-year period that begins upon selection under subsection 
     (d) of at least half of the number of agencies able to 
     participate in the program under this section, the Secretary 
     shall conduct detailed evaluations of all public housing 
     agencies participating in the program under this section--
       ``(A) to determine the level of success of each public 
     housing agency in achieving the purposes of the program under 
     subsection (a); and
       ``(B) to identify program models that can be replicated by 
     other agencies to achieve such success.
       ``(2) Reports.--
       ``(A) In general.--The Secretary shall submit three reports 
     to the Congress, as provided in subparagraph (B), evaluating 
     the programs of all public housing agencies participating in 
     the program under this section and all agencies participating 
     in the moving to work demonstration. Each such report shall 
     include findings and recommendations for any appropriate 
     legislative action.
       ``(B) Timing.--The reports under this paragraph shall 
     include--
       ``(i) an initial report, which shall be submitted before 
     the expiration of the 3-year period beginning on the date of 
     the enactment of the Section 8 Voucher Reform Act of 2007;
       ``(ii) an interim report, which shall be submitted before 
     the expiration of the 5-year period beginning on such date of 
     enactment; and
       ``(iii) a final report, which shall be submitted before the 
     expiration of the 10-year period beginning on such date of 
     enactment.
       ``(3) Evaluating entity.--The Secretary may contract out 
     the responsibilities under this paragraphs (1) and (2) to an 
     independent entity that is qualified to perform such 
     responsibilities.
       ``(4) Performance measures.--The Secretary or the 
     evaluating entity, as applicable, shall establish performance 
     measures, which may include--
       ``(A) a baseline performance level against which program 
     activities may be evaluated; and
       ``(B) performance measures for--
       ``(i) increasing housing opportunities for extremely low-, 
     very low-, and low-income families, replacing or 
     rehabilitating housing at risk of physical deterioration or 
     obsolescence, and developing additional affordable housing;
       ``(ii) leveraging other Federal, State, and local funding 
     sources, including the low-income housing tax credit program, 
     to expand and preserve affordable housing opportunities, 
     including public housing;
       ``(iii) moving families to self-sufficiency and increasing 
     employment rates and wages of families without imposing a 
     significant rent burden on the families having the lowest 
     incomes;
       ``(iv) reducing administrative costs; and
       ``(v) any other performance measures that the Secretary or 
     evaluating entity, as applicable, may establish.
       ``(g) Recordkeeping, Reports, and Audits.--
       ``(1) Recordkeeping.--Each public housing agency 
     participating in the program under this section shall keep 
     such records as the Secretary may prescribe as reasonably 
     necessary to disclose the amounts and the disposition of 
     amounts under the program, to ensure compliance with the 
     requirements of this section, and to measure performance.
       ``(2) Reports.--In lieu of all other reporting 
     requirements, each such agency participating in

[[Page 18872]]

     the program shall submit to the Secretary an annual report in 
     a form and at a time specified by the Secretary. Each annual 
     report shall include the following information:
       ``(A) A description, including an annual consolidated 
     financial report, of the sources and uses of funds of the 
     agency under the program, which shall account separately for 
     funds made available under section 8 and subsections (d) and 
     (e) of section 9, and shall compare the agency's actions 
     under the program with its annual plan for the year.
       ``(B) An annual audit that complies with the requirements 
     of Circular A-133 of the Office of Management and Budget, 
     including the OMB Compliance Supplement.
       ``(C) A description of each hardship exception requested 
     and granted or denied, and of the use of any transition 
     rules.
       ``(D) Documentation of public and resident participation 
     sufficient to comply with the requirements under paragraph 
     (7).
       ``(E) A comparison of income and the sizes and types of 
     families assisted by the agency under the program compared to 
     those assisted by the agency in the base year.
       ``(F) Every two years, an evaluation of rent policies, 
     subsidy level policies, and policies on program 
     participation.
       ``(G) A description of any ongoing local evaluations and 
     the results of any local evaluations completed during the 
     year.
       ``(3) Access to documents by secretary.--The Secretary 
     shall have access for the purpose of audit and examination to 
     any books, documents, papers, and records that are pertinent 
     to assistance in connection with, and the requirements of, 
     this section.
       ``(4) Access to documents by the comptroller general.--The 
     Comptroller General of the United States, or any of the duly 
     authorized representatives of the Comptroller General, shall 
     have access for the purpose of audit and examination to any 
     books, documents, papers, and records that are pertinent to 
     assistance in connection with, and the requirements of, this 
     section.
       ``(5) Reports regarding evaluations.--The Secretary shall 
     require each public housing agency participating in the 
     program under this section to submit to the Secretary, as 
     part of the agency's annual report under paragraph (2), such 
     information as the Secretary considers appropriate to permit 
     the Secretary to evaluate (pursuant to subsection (f)) the 
     performance and success of the agency in achieving the 
     purposes of the demonstration.
       ``(h) Additional Program Agencies.--In participating in the 
     program under the terms of this subsection, the public 
     housing agencies designated for such participation shall be 
     subject to the requirements of this section, and the 
     additional following requirements:
       ``(1) Applicability of certain existing provisions.--Such 
     agencies shall be subject to the provisions of--
       ``(A) subsections (a) and (b) of section 3; and
       ``(B) section 8(o), except for paragraph (11) and except 
     that such agencies shall not be required to comply with any 
     provision of such section 8(o) that pursuant to subsection 
     (e)(3) of this section does not apply to agencies that are 
     subject to such section (e)(3).
       ``(2) No time limits.--Such agencies may not impose time 
     limits on the term of housing assistance received by families 
     under the program.
       ``(3) No employment conditions.--Such agencies may not 
     condition the receipt of housing assistance by families under 
     the program on the employment status of one of more family 
     members.
       ``(4) One-for-one replacement.--
       ``(A) Conditions on demolition.--Such agencies may not 
     demolish or dispose of any dwelling unit of public housing 
     operated or administered by such agency (including any 
     uninhabitable unit and any unit previously approved for 
     demolition) except pursuant to a plan for replacement of such 
     units in accordance with, and approved by the Secretary of 
     Housing and Urban Development pursuant to, subparagraph (B).
       ``(B) Plan requirements.--The Secretary may not approve a 
     plan that provides for demolition or disposition of any 
     dwelling unit of public housing referred to in subparagraph 
     (A) unless--
       ``(i) such plan provides for outreach to public housing 
     agency residents in accordance with paragraph (5);
       ``(ii) not later than 60 days before the date of the 
     approval of such plan, such agency has convened and conducted 
     a public hearing regarding the demolition or disposition 
     proposed in the plan;
       ``(iii) such plan provides that for each such dwelling unit 
     demolished or disposed of, such public housing agency will 
     provide an additional dwelling unit through--

       ``(I) the acquisition or development of additional public 
     housing dwelling units; or
       ``(II) the acquisition, development, or contracting 
     (including through project-based assistance) of additional 
     dwelling units that are subject to requirements regarding 
     eligibility for occupancy, tenant contribution toward rent, 
     and long-term affordability restrictions which are comparable 
     to public housing units;

       ``(iv) such plan provides for a right, and implementation 
     of such right, to occupancy of additional dwelling units 
     provided in accordance with clause (iii), for households who, 
     as of the time that dwelling units demolished or disposed of 
     were vacated to provide for such demolition or disposition, 
     were occupying such dwelling units;
       ``(v) such plan provides that the proposed demolition or 
     disposition and relocation will be carried out in a manner 
     that affirmatively furthers fair housing, as described in 
     subsection (e) of section 808 of the Civil Rights Act of 
     1968; and
       ``(vi) to the extent that such plan provides for the 
     provision of replacement or additional dwelling units, or 
     redevelopment, in phases over time, such plan provides that 
     the ratio of dwelling units described in subclauses (I) and 
     (II) of clause (iii) that are provided in any such single 
     phase to the total number of dwelling units provided in such 
     phase is not less than the ratio of the aggregate number of 
     such dwelling units provided under the plan to the total 
     number of dwelling units provided under the plan.
       ``(C) Inapplicable provisions.--Subparagraphs (B) and (D) 
     of section 8(o)(13) of the United States Housing Act of 1937 
     (42 U.S.C. 1437f(o)(13)) shall not apply with respect to 
     vouchers used to comply with the requirements of subparagraph 
     (B)(iii) of this paragraph.
       ``(D) Monitoring.--The Secretary of Housing and Urban 
     Development shall provide for the appropriate field offices 
     of the Department to monitor and supervise enforcement of 
     this paragraph and plans approved under this paragraph and to 
     consult, regarding such monitoring and enforcement, with 
     resident councils of, and residents of public housing 
     operated or administered by, the agency.
       ``(5) Comprehensive outreach plan.--No program funds of 
     such agencies may be use to demolish, dispose of, or 
     eliminate any public housing dwelling units except in 
     accordance with a comprehensive outreach plan for such 
     activities, developed by the agency in conjunction with the 
     residents of the public housing agency, as follows:
       ``(A) The plan shall be developed by the agency and a 
     resident task force, which may include members of the 
     Resident Council, but may not be limited to such members, and 
     which shall represent all segments of the population of 
     residents of the agency, including single parent-headed 
     households, the elderly, young employed and unemployed 
     adults, teenage youth, and disabled persons.
       ``(B) The votes and agreements regarding the plan shall 
     involve not less than 25 and not more than 35 persons.
       ``(C) The plan shall provide for and describe outreach 
     efforts to inform residents of the program under this 
     subsection, including a door-to-door information program, 
     monthly newsletters to each resident household, monthly 
     meetings dedicated solely to every aspect of the proposed 
     development, including redevelopment factors, which shall 
     include the one-for-one replacement requirement under 
     paragraph (5), resident rights to return, the requirements of 
     the program under this subsection, new resident support and 
     community services to be provided, opportunities for 
     participation in architectural design, and employment 
     opportunities for residents, which shall reserve at least 70 
     percent of the jobs in demolition activities and 50 percent 
     of the jobs in construction activities related to the 
     redevelopment project, including job training, 
     apprenticeships, union membership assistance.
       ``(D) The plan shall provide for regularly scheduled 
     monthly meeting updates and a system for filing complaints 
     about any aspect of the redevelopment process.
       ``(i) Definitions.--For purposes of this section, the 
     following definitions shall apply:
       ``(1) Existing mtw agency.--The term `existing MTW agency' 
     means a public housing agency that as of the date of the 
     enactment of the Section 8 Voucher Reform Act of 2007 has an 
     existing agreement with the Secretary pursuant to the moving 
     to work demonstration.
       ``(2) Base year.--The term `base year' means, with respect 
     to a participating agency, the agency fiscal year most 
     recently completed prior to selection and approval for 
     participation in the housing innovation program under this 
     section.
       ``(3) Moving to work demonstration.--The term `moving to 
     work demonstration' means the moving to work demonstration 
     program 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).
       ``(4) Participating agencies.--The term `participating 
     agencies' means public housing agencies designated and 
     approved for participation, and participating, in the housing 
     innovation program under this section.
       ``(5) Program funds.--The term `program funds' means, with 
     respect to a participating agency, any amounts that the 
     agency is authorized, pursuant to subsection (e)(1), to use 
     to carry out the housing innovation program under this 
     section of the agency.
       ``(6) Residents.--The term `residents' means, with respect 
     to a public housing agency, tenants of public housing of the 
     agency and participants in the voucher or other housing 
     assistance programs of the agency funded under section 8(o), 
     or tenants of other units owned by the agency and assisted 
     under this section.
       ``(j) Authorization of Appropriations for Resident 
     Technical Assistance.--There is authorized to be appropriated 
     for each of fiscal years 2008 through 2012 $10,000,000, for 
     providing capacity building and technical assistance to 
     enhance the capabilities of low-income families assisted 
     under the program under this section to participate in the 
     process for establishment of annual plans under this section 
     for participating agencies.
       ``(k) Authorization of Appropriations for Evaluations.--
     There is authorized to be appropriated $15,000,000 to the 
     Department of Housing and Urban Development for the purpose 
     of

[[Page 18873]]

     conducting the evaluations required under subsection 
     (f)(1).''.
       (b) GAO Report.--Not later than 48 months after the date of 
     the enactment of this Act, the Comptroller General of the 
     United States shall submit a report to the Congress on the 
     extent to which the public housing agencies participating in 
     the housing innovation program under section 36 of the United 
     States Housing Act of 1937 are meeting the goals and purposes 
     of such program, as identified in subsection (a) of such 
     section 36.

     SEC. 17. 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 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. 18. AUTHORIZATION OF APPROPRIATIONS.

       There is authorized to be appropriated the amount necessary 
     for each of fiscal years 2008 through 2012 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.

     SEC. 19. EFFECTIVE DATE.

       Except as otherwise specifically provided in this Act, this 
     Act and the amendments made by this Act, shall take effect on 
     January 1, 2008.

  The Acting CHAIRMAN. No amendment to the committee amendment is in 
order except the amendments printed in House Report 110-227. Each 
amendment may be offered only in the order printed in the report; by a 
member designated in the report; shall be considered read; shall be 
debatable for the time specified in the report, equally divided and 
controlled by the proponent and an opponent of the amendment; shall not 
be subject to amendment; and shall not be subject to a demand for 
division of the question.


                 Amendment No. 1 Offered by Ms. Waters

  The Acting CHAIRMAN. It is now in order to consider amendment No. 1 
printed in House Report 110-227.
  Ms. WATERS. Madam Chairman, I offer an amendment.
  The Acting CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 1 offered by Ms. Waters:
       Page 4, line 16, strike ``biennial inspections'' and insert 
     ``inspections not less often than biennially''.
       Page 6, strike lines 5 and 6 and insert the following:
       (3) by redesignating subparagraph (E) as subparagraph (G);
       (4) by inserting after subparagraph (D) the following new 
     subparagraphs:
       ``(E) Interim inspections.--Upon notification to the public 
     housing agency, by a family on whose behalf tenant-based 
     rental assistance is provided under this subsection or by a 
     government official, that the dwelling unit for which such 
     assistance is provided does not comply with the housing 
     quality standards under subparagraph (B), the agency shall 
     inspect the dwelling unit--
       ``(i) in the case of any condition that is life-
     threatening, within 24 hours after receipt of such notice; 
     and
       ``(ii) in the case of any condition that is not life-
     threatening, within 15 days after receipt of such notice.''.
       Page 7, strike lines 1 through 3 and insert the following:

       ``(III) the failure to comply is not corrected--

       ``(aa) in the case of any such failure that is a result of 
     life-threatening conditions, within 24 hours after receipt of 
     such notice; and
       ``(bb) in the case of any such failure that is a result of 
     non-life threatening conditions, within 30 days after receipt 
     of such notice or such other reasonable period as the public 
     housing agency may establish.''.
       Page 7, line 4, strike ``and release''.
       Page 7, strike ``Subject'' in line 10 and all that follows 
     through line 14, and insert the following: ``Upon completion 
     of repairs by the public housing agency or the owner 
     sufficient so that the dwelling unit complies with such 
     housing quality standards, the agency shall recommence 
     payments under the housing assistance payments contract to 
     the owner of the dwelling unit.''.
       Page 7, strike ``(or to'' in line 19 and all that follows 
     through line 24, and insert the following: ``, except that a 
     contract to make repairs may not be entered into with the 
     inspector for the dwelling unit referred to in clause 
     (i)(I).''.
       Page 8, line 6, after the period insert the following: 
     ``During the period that assistance is withheld pursuant to 
     this subparagraph, the tenant may terminate the tenancy by 
     notifying the owner.''.
       Page 8, strike ``before'' in line 12 and all that follows 
     through line 16, and insert the following: ``within 60 days 
     after the effective date of the determination of 
     noncompliance under clause (i), or such other reasonable 
     period as the public housing agency may establish, and the 
     agency does not use its authority under clause (iii), the 
     agency shall terminate the housing assistance payments 
     contract for the dwelling unit. The agency shall provide the 
     family residing in such a dwelling unit a period of 90 days, 
     beginning upon termination of the contract, to lease a new 
     residence to assist with the tenant-based rental assistance 
     made available under this section for the family. If the 
     family is unable to lease such a new residence during such 
     period, the public housing agency shall extend the period 
     during which the family may lease a new residence to be 
     assisted with such assistance or provide such family a 
     preference for occupancy in a dwelling unit of public housing 
     owned or operated by the agency that first becomes available 
     for occupancy after the expiration of such period. The agency 
     shall provide reasonable assistance to the family in finding 
     a new residence, including use of two months of any 
     assistance amounts withheld pursuant to clause (ii) for costs 
     associated with relocation of the family to a new 
     residence.''.
       Page 8, after line 16, insert the following:
       ``(vi) Limitation of liability of public housing 
     agencies.--A public housing agency that uses its authority 
     under clause (iii) shall not, if the agency accomplishes the 
     work through a contractor that is licensed, bonded, and 
     insured in amounts and with coverage as required by the 
     Secretary, be liable for any injury or damages that may 
     result to persons or to any property owned by the tenant or 
     owner.
       ``(vii) Tenant-caused damages.--If a public housing agency 
     determines that any damage to a dwelling unit that results in 
     a failure of the dwelling unit to comply with housing quality 
     standards under subparagraph (B), other than any damage 
     resulting from ordinary use, was caused by the tenant, any 
     member of the tenant's household, or any guest or other 
     person under the tenant's control, the agency may, in the 
     discretion of the agency, waive the applicability of this 
     subparagraph, except that this clause shall not exonerate a 
     tenant from any liability otherwise existing under applicable 
     law for damages to the premises caused by such tenant.''.
       Page 8, line 17, strike ``(vi)'' and insert ``(viii)''.
       Page 9, line 13, strike ``and''.
       Page 9, after line 13, insert the following:
       (B) in paragraph (1)--
       (i) by striking ``paragraph (2)'' and inserting 
     ``paragraphs (2) and (3)''; and
       (ii) by striking ``paragraph (3)'' and inserting 
     ``paragraph (4)'';
       (C) in paragraph (2)(A)(i), by striking ``paragraph (3)'' 
     and inserting ``paragraph (4)'';
       (D) by redesignating paragraphs (4) and (5) as paragraphs 
     (5) and (6), respectively;
       (E) by inserting after paragraph (2) the following new 
     paragraph:
       ``(3) PHA authority to establish alternative rents.--
       ``(A) Rent flexibility for public housing and voucher 
     program.--Subject to the requirements under subparagraph (B), 
     a public housing agency may establish for public housing and 
     for families on whose behalf assistance is provided under the 
     program for tenant-based voucher assistance under section 
     8(o)--
       ``(i) a tenant rent structure in which--

       ``(I) the public housing agency establishes, based on the 
     rental value of the unit, as determined by the public housing 
     agency--

       ``(aa) a ceiling rent for each dwelling unit that it owns 
     and operates; and
       ``(bb) a ceiling on the amount of the tenant contribution 
     toward rent required of a family provided tenant-based 
     assistance; and

       ``(II) such ceiling rent and tenant contribution are 
     adjusted periodically on the basis of an inflation index or a 
     recalculation of the rental value of the unit (which may be 
     recalculated by unit or by building);

       ``(ii) an income-tiered tenant rent structure in which the 
     amount of rent a family

[[Page 18874]]

     shall pay is set and distributed on the basis of broad tiers 
     of income and such tiers and rents are adjusted on the basis 
     of an annual cost index except that families entering public 
     housing shall not be offered a rent lower than the rent 
     corresponding to their income tier; or
       ``(iii) a tenant rent structure in which the amount of rent 
     a family shall pay is based on a percentage of family income, 
     except that lower percentages may apply only with respect to 
     earned income; such a rent structure may provide for an 
     amount of rent based on a calculation of earned income that 
     provides for disregard of a higher percentage or higher 
     dollar amount, or both, than provided for in paragraph 
     (8)(B).
       ``(B) Limitation.--Notwithstanding the authority provided 
     under subparagraph (A), the amount paid for rent (including 
     the amount allowed for tenant-paid utilities) by any family 
     for a dwelling unit in public housing or for rental of a 
     dwelling unit for which tenant-based voucher assistance under 
     section 8(o) is provided may not exceed the amount determined 
     under subsection (a)(1) of this section or section 8(o), 
     respectively. The Secretary shall issue regulations and 
     establish procedures to ensure compliance with this 
     subparagraph.
       ``(C) Elderly families and disabled families.--
     Notwithstanding any other provision of this Act, this 
     paragraph shall not apply to elderly families and disabled 
     families.''; and
       Page 9, line 14, strike ``(B)'' and insert ``(F)''.
       Page 9, line 16, strike ``(6)'' and insert ``(7)''.
       Page 12, line 19, strike ``(7)'' and insert ``(8)''.
       Page 13, line 3, strike ``(6)(A)'' and insert ``(7)(A)''.
       Page 13, line 18, strike ``(6)(B)(ii)'' and insert 
     ``(7)(B)(ii)''.
       Page 15, line 6, strike ``(6)'' and insert ``(7)''.
       Page 19, line 13, strike ``(6) and (7)'' and insert ``(7) 
     and (8)''.
       Page 30, after line 11, insert the following:
       ``(xi) relocation and replacement of public housing units 
     that are demolished or disposed of pursuant to eminent 
     domain, pursuant to a homeownership program, or in connection 
     with a mixed finance development method under section 35 or 
     otherwise;''
       Page 30, line 12, strike ``(xi)'' and insert ``(xii)''.
       Page 30, line 15, strike ``(xii)'' and insert ``(xiii)''.
       Page 30, line 24, strike ``or (x)'' and insert ``(x), or 
     (xi)''.
       Page 31, line 16, before the semicolon insert ``and of any 
     incremental vouchers funded in previous years''.
       Page 36, line 14, strike ``one twelfth'' and insert ``12.5 
     percent of''.
       Page 39, lines 6 and 7, strike ``until superseded through 
     subsequent rulemaking,''.
       Page 57, after line 18, insert the following:
       ``(N) Administrative fee.--The administrative fee 
     applicable to the administration of assistance under this 
     paragraph shall be determined in the same manner as 
     administrative fees applicable to other assistance 
     administered under other provisions of this subsection.''.
       Page 57, line 19, strike ``(N)'' and insert ``(O)''.
       Page 68, line 6, after ``any agency'' insert ``that is a 
     troubled agency under either such assessment program or''
       Page 92, strike ``Not'' in line 5 and all that follows 
     through ``the'' in line 9 and insert ``The''.
       Strike line 24 on page 97 and all that follows through line 
     4 on page 98, and insert the following:
       ``(B) section 8(o), except for paragraph (11) and except as 
     the requirements of section 8(o) are modified by subsection 
     (e)(3) of this section.''.
       Page 100, line 2, before the semicolon insert the 
     following: ``, except that no household may be prevented from 
     occupying a replacement dwelling unit provided pursuant to 
     clause (iii) except to the extent specifically provided by 
     any other provision of Federal law (including 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, subtitle D of title 
     VI of the Housing and Community Development Act of 1992 (42 
     U.S.C. 13611 et seq.; relating to preferences for elderly and 
     disabled residents), and section 16(f) of this Act (42 U.S.C. 
     1437n(f)); relating to ineligibility of persons convicted of 
     methamphetamine offenses)''.
       Page 101, line 22, strike ``, dispose of, or eliminate'' 
     and insert ``or dispose of''.
       Page 102, strike lines 12 through 14 and insert the 
     following:
       ``(b) The votes and agreements regarding the plan shall 
     involve--
       ``(i) in the case of any public housing agency that 
     administers 250 or fewer public housing dwelling units, not 
     less than 10 percent of affected residents; and
       ``(ii) in the case of any public housing agency that 
     administers more than 250 public housing dwelling units, not 
     less than 25 affected residents''.
       Page 103, strike lines 4 through 6 and insert the 
     following: ``make available at least 30 percent of the total 
     hours worked at all such employment, and shall also make 
     available at least 25 percent of unskilled jobs in demolition 
     activities and 25 percent of unskilled jobs in construction 
     activities related to the redevelopment''.
       Page 107, after line 2, insert the following new section:

     SEC. 18. 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 Financial 
     Services of the House of Representatives and the Committee on 
     Banking, Housing, and Urban Affairs of the Senate, 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).

[[Page 18875]]

       (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 Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate.

  The Acting CHAIRMAN. Pursuant to House Resolution 534, the 
gentlewoman from California (Ms. Waters) and a Member opposed each will 
control 5 minutes.


         Modification to Amendment No. 1 Offered by Ms. Waters

  Ms. WATERS. Madam Chairman, I ask unanimous consent that the 
amendment be modified by the form I have placed at the desk.
  The Acting CHAIRMAN. The Clerk will report the modification.
  The Clerk read as follows:

       Modification to amendment No. 1 offered by Ms. Waters:
       The amendment is modified as follows:
       In the matter proposed to be inserted by the eighth 
     amendment instruction of the amendment (which begins ``Page 
     8, strike `before' in line 12''), strike ``The agency shall 
     provide the family'' and all that follows through 
     ``relocation of the family to a new residence.''.
       Strike the matter proposed to be inserted by the amendment 
     at page 8 of the bill, after line 16, and insert the 
     following:
       ``(vi) Relocation.--If the public housing agency terminates 
     the housing assistance payments contract for a dwelling unit, 
     the lease for any family residing in that unit shall 
     terminate and the family may remain in the unit subject to a 
     new lease as an unassisted family. The agency shall provide 
     the family residing in such a dwelling unit a period of 90 
     days, beginning upon termination of the contract, to lease a 
     new residence to assist with the tenant-based rental 
     assistance made available under this section for the family. 
     If the family is unable to lease such a new residence during 
     such period, the public housing agency shall extend the 
     period during which the family may lease a new residence to 
     be assisted with such assistance or provide such family a 
     preference for occupancy in a dwelling unit of public housing 
     owned or operated by the agency that first becomes available 
     for occupancy after the expiration of such period. The agency 
     shall provide reasonable assistance to the family in finding 
     a new residence, including use of two months of any 
     assistance amounts withheld pursuant to clause (ii) for costs 
     associated with relocation of the family to a new residence.
       ``(vii) Limitation of liability of public housing 
     agencies.--A public housing agency that uses its authority 
     under clause (iii) shall not, if the agency accomplishes the 
     work through a contractor that is licensed, bonded, and 
     insured in amounts and with coverage as required by the 
     Secretary, be liable for any injury or damages that may 
     result to persons or to any property owned by the tenant or 
     owner.
       ``(viii) Tenant-caused damages.--If a public housing agency 
     determines that any damage to a dwelling unit that results in 
     a failure of the dwelling unit to comply with housing quality 
     standards under subparagraph (B), other than any damage 
     resulting from ordinary use, was caused by the tenant, any 
     member of the tenant's household, or any guest or other 
     person under the tenant's control, the agency may, in the 
     discretion of the agency, waive the applicability of this 
     subparagraph, except that this clause shall not exonerate a 
     tenant from any liability otherwise existing under applicable 
     law for damages to the premises caused by such tenant.''.
       Strike the matter proposed to be inserted by the amendment 
     at page 8 of the bill, line 17, and insert ``(ix)''.

  Ms. WATERS (during the reading). Madam Chairman, I ask unanimous 
consent to dispense with the reading of the amendment.
  The Acting CHAIRMAN. Is there objection to the request of the 
gentlewoman from California?
  There was no objection.
  The Acting CHAIRMAN. Without objection, the amendment is modified.
  There was no objection.
  The Acting CHAIRMAN. The Chair recognizes the gentlewoman from 
California.
  Ms. WATERS. Thank you very much, Madam Chairman.
  I would like to thank the distinguished chairman of the Committee on 
Financial Services, Mr. Barney Frank, and Ranking Member Judy Biggert 
for their strong support of the manager's amendment to H.R. 1851.
  The purpose of the amendment is to reform and improve the Section 8 
Voucher Reform Act of 2007, regarding inspections, flexibility in rent-
setting, transitional funding for the Nation's Public Housing Agencies, 
administrative fee calculations, limited English proficiency 
requirements, and the Housing Innovation Program. It also makes 
technical corrections to the bill.
  The amendment provides more flexibility to make inspections by 
requiring them less frequently than every 2 years. This change will 
allow PHAs in areas with a deteriorating housing stock to conduct 
additional inspections in order to make sure families are housed in 
safe and decent units. In addition, the amendment fills the need for 
inspections that can be conducted at the request of the tenant within a 
specific amount of time.
  My amendment solves a real catch-22 that often arises in the section 
8 program. Many section 8 landlords are not large real estate concerns, 
but mom-and-pop operations that are not getting rich. Where units 
operated by a landlord fail inspection, right now there is a real 
danger that the landlord will choose to leave the program rather than 
make the repairs. This benefits nobody. And there is the catch-22. The 
landlord wants to stay in the program; the tenant certainly wants to 
stay in the unit if it can be repaired; but current law makes this 
positive resolution difficult to achieve.
  PHAs will have the option to make repairs on the landlord's behalf. 
If the PHA or the landlord choose not to make the repair, the amendment 
protects tenants who will have to move to a new unit through no fault 
of their own. In the event a PHA chooses not to make a repair and the 
landlord still declines to repair the unit, the amendment provides 
important tenant protections.
  There is rent flexibility. Sometimes the rigid section 8 rent 
structure just doesn't work. In order to find a rent mechanism that 
works, the amendment gives PHAs flexibility in setting rents. While the 
calculations may be different, the amendment preserves affordability 
standards that limit the amount of rent a tenant pays to 30 percent of 
his or her income. The 30 percent threshold is sacred, because we all 
know that if the rent exceeds this amount, tenants lose the ability to 
make ends meet.
  When we move to a new funding formula, PHAs will need sufficient 
reserves to allow them to make the change smoothly and with little 
disruption for tenants. H.R. 1851 provides a 1-month reserve for the 
first year of the formula. But to ensure that PHAs are able to serve 
additional families in the formula's first year, the amendment 
moderately increases this reserve from the 1-month level to the 1\1/2\-
month level. This ensures PHAs will have adequate funds to transition.
  The amendment corrects the disparity between the calculation of the 
administrative fees for project-based units owned by PHAs and other 
units in the PHA's inventory. Units owned by PHAs would receive the 
same fee as other units receiving project-based assistance in the PHA's 
inventory, providing an incentive for PHAs to create housing 
opportunities by project-basing its own units.
  The amendment also addresses HUD's problematic implementation of 
Limitation of English Proficiency requirements. The manager's amendment 
seeks to remedy this problem. The amendment calls for HUD to convene a 
task force of interested parties and stakeholders who will determine 
the documents that need to be translated, and to make these 
translations available in various languages within 6 months. HUD is 
also required to maintain a housing information resource center, 
including a 24-hour toll-free number and a document clearinghouse.
  We also include Housing Innovation Program, that is HIP program, 
formerly known as Moving to Work, and this amendment makes several 
corrections to the Housing Innovation Program formerly called Moving to 
Work. These changes clarify that troubled agencies are not eligible to 
participate in the program, clarifies resident participation 
requirements, specifies job opportunities to be made for residents, and 
ensures that following demolition or replacement of public housing 
units, that families cannot be screened out of public housing unless 
they are otherwise ineligible under Federal law.

[[Page 18876]]

  I ask support for the manager's amendment.
  I reserve the balance of my time.
  Mrs. BIGGERT. Madam Chairman, I ask unanimous consent to claim the 
time in opposition, although I am not opposed to the amendment.
  The Acting CHAIRMAN. Without objection, the gentlewoman from Illinois 
is recognized for 5 minutes.
  There was no objection.
  Mrs. BIGGERT. I would like to thank Chairwoman Waters for her 
manager's amendment and, in particular, the 12.5 percent for the 
transition in the public housing.
  Madam Chair, I yield to my colleague, Mr. Miller of California, for 
the balance of the time.
  Mr. GARY G. MILLER of California. I want to thank you for including 
my language on reform in the manager's amendment. This I believe goes a 
long way to create innovation in helping people gain self-sufficiency.
  The main reason I want to speak today is because many on my side have 
a real problem with the requirement that language be translated into a 
language that anybody who might come to a HUD assistance program might 
require to speak, and your bill goes a long way.
  I have consistently supported every effort to repeal President 
Clinton's executive order which requires any recipient of Federal funds 
to provide translations into any language an individual requesting 
service may speak; but recently, HUD has issued a requirement that says 
that any housing authority or PHA must provide this translation to 
individuals who come before them.
  This is the Federal Government creating a mandate and requiring the 
private sector to pay the bill. And what you are doing I wholeheartedly 
support. You are saying that if the Federal Government wants to require 
a mandate, then they should pay the bill. It has been estimated that 
one of these translations can cost a section 8 individual or group or 
housing authority up to $10,000 for each language they want to 
translate the documents into, and what you are doing is absolutely 
correct. If we are not going to change the law, then let's not have an 
unfunded mandate placed on the private sector that the private sector 
has to pay for when HUD and the Federal Government wants to mandate it. 
And what you are saying is: HUD, if you want to mandate it, you pick up 
the bill. And I think that is very important that we do this, and I 
want to stand up saying I wholeheartedly support it.
  I do not support the mandate, period, that Clinton imposed, but we 
are stuck with it. It is an executive order. And what you are saying is 
the private sector should not be suffering the burden of an unfunded 
mandate if the Federal Government wants to mandate it.
  So I want to clarify for my side that what we are doing here is 
saying we are relieving an unfunded mandate on the private sector and 
placing the burden on the Federal Government, who should be 
responsible. And if we want to change the law, let's change the law. 
But until we change the law, the private sector should not suffer the 
burden of financing something the Federal Government is imposing on 
them.
  I wholeheartedly support the manager's amendment, and I thank you for 
working with me on rent reform and other things.
  Mr. FRANK of Massachusetts. Madam Chairman, will the gentleman yield?
  Mr. GARY G. MILLER of California. I yield to the gentleman from 
Massachusetts.
  Mr. FRANK of Massachusetts. The gentleman has given a very clear 
statement of what is in here. This bill does not create the bilingual 
mandate; it puts it where it should be.
  The other thing I would say is this, and I understand there are some 
who oppose it on principle. But from the court's standpoint, having HUD 
do the translation of all these documents means that they don't have to 
be done individually. So it also is cheaper for HUD to do. It is not 
just that it is more appropriate for the Federal Government to do it, 
but it is cheaper, because there will be some basic HUD documents so 
this will avoid the unnecessary duplication of translations. And I 
thank the gentleman for that very clear way he stated it.
  Mr. GARY G. MILLER of California. Reclaiming my time, I think you are 
right. It is cheaper for us to pay for shipping than it is for them to 
pay for translations. Let's do it one time, ship the documents, and we 
deal with the problem, unless we want to change the law.
  Mr. FRANK of Massachusetts. The gentleman and I are of a similar 
generation. It is my understanding from some of my younger staffers 
that they don't ship documents these days; they have other ways of 
getting them there. I couldn't send one, myself, and my friend couldn't 
receive it. But, fortunately, it wouldn't be up to us.
  Mr. GARY G. MILLER of California. Reclaiming my time, we dinosaurs 
have to speak in the language we are accustomed to.
  And with that, this dinosaur yields back the balance of his time.
  The Acting CHAIRMAN. The gentlewoman from California has 30 seconds 
remaining.
  Ms. WATERS. Madam Chairman, I ask for support for the manager's 
amendment to H.R. 1851 and passage of the bill. Again, I want to thank 
each of my colleagues who worked on this important amendment for their 
strong support.
  I yield back the balance of my time.
  The Acting CHAIRMAN. The question is on the amendment offered by the 
gentlewoman from California (Ms. Waters), as modified.
  The amendment, as modified, was agreed to.


                Amendment No. 2 Offered by Ms. Velazquez

  The Acting CHAIRMAN. It is now in order to consider amendment No. 2 
printed in House Report 110-227.
  Ms. VELAZQUEZ. Madam Chairman, I offer an amendment.
  The Acting CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 2 offered by Ms. Velazquez:
       Page 80, line 5, after ``8(o)(7)'' insert ``and section 
     8(o)(20)''.
       Page 81, after line 10, insert the following:
       ``(N) Sections 8(ee) and 6(u) (relating to records, 
     certification and confidentiality regarding domestic 
     violence).''.
       Page 81, line 11, strike ``(N)'' and insert ``(O)''.
       Page 81, line 13, strike ``(O)'' and insert ``(P)''.

                              {time}  2015

  The Acting CHAIRMAN. Pursuant to House Resolution 534, the 
gentlewoman from New York (Ms. Velazquez) and a Member opposed each 
will control 5 minutes.
  The Chair recognizes the gentlewoman from New York.
  Ms. VELAZQUEZ. Madam Chairman, I yield myself as much time as I may 
consume.
  Madam Chairman, let me first commend Chairman Frank and Chairwoman 
Waters for their leadership in moving this necessary reform forward. 
They led the Financial Services Committee through a healthy but 
complicated series of issues and produced a bill that truly improves 
the section 8 program.
  Section 8 is the Nation's largest low-income housing program. It 
currently enables more than 2 million low-income families to fulfill 
the basic needs of shelter. We should strive to help more people find 
safe and decent housing. That is why this bill includes 100,000 new 
vouchers over the next 5 years. It is critical that we support this 
bipartisan work that transitions people out of poverty.
  Keeping people safe is at the heart of my amendment, which may seem 
minor, but provides important eviction and privacy protection for 
victims of domestic violence who live in section 8 housing. Let us not 
allow domestic violence victims to fall through the cracks.
  It does this by ensuring that residents are not evicted simply 
because they are victims of domestic violence. While it is hard to 
believe, under current law, if a resident is visited by a former 
spouse, a stalker or domestic abuser, and he breaks down the door, the 
very noise and property damage

[[Page 18877]]

caused by the dispute could be grounds for her to be evicted. Being 
abused should not be cause for terminating a lease. My amendment 
changes that by protecting section 8 tenants from wrongful eviction.
  It is fundamentally wrong to evict a resident because they have been 
victimized. The individuals and their families deserve our respect and 
understanding. This provision ensures that domestic violence victims 
have a safe home for them and their families.
  Second, my amendment protects the record of domestic violence 
victims. If certain identifying characteristics are made public, even 
to a prospective landlord, abusers could use the information to locate 
their victims. This goes beyond just name and Social Security number. 
The key is making sure that their information is protected so that 
victims move forward without the fear of being found. Their safety must 
be first and foremost. Let's give section 8 tenants basic protections 
to ensure they can find and keep a safe home away from violence.
  Madam Chairwoman, I support the improvements to the section 8 program 
that H.R. 1851 makes and want to thank Chairman Frank and Chairwoman 
Waters again for their diligence on this bill. I think it is important 
that we remember that finding a home entails feeling safe, not just 
securing shelter.
  In 2005, we fought in unison to protect domestic violence victims 
through VAWA; 415 Members of the 109th Congress supported these 
provisions back then. Today I am asking you to close a potential 
loophole for section 8 housing residents who are victims of domestic 
violence. I urge a ``yes'' vote on my amendment and the underlying 
bill.
  Madam Chairman, I reserve the balance of my time.
  Mrs. BIGGERT. I ask unanimous consent to claim the time in opposition 
to the amendment, although I am not opposed to the amendment.
  The Acting CHAIRMAN. Without objection, the gentlewoman from Illinois 
is recognized for 5 minutes.
  There was no objection.
  Mrs. BIGGERT. Thank you, Madam Chair.
  The Violence Against Women Act reauthorized and signed into law by 
President Bush in 2005 ensured that victims of domestic violence would 
not be evicted from public or section 8 housing for screaming for help, 
for calling the police or simply for being the victim of a crime. 
However, one provision of H.R. 1851 inadvertently removes these 
protections from certain public housing authorities, leaving victims in 
these housing authorities with inconsistent or no protection.
  I think that the Housing Innovation Program provisions in SEVRA 
exempt high-performing public housing authorities from certain Federal 
regulations, giving them a measure of regulatory reform. Unfortunately, 
some of the VAWA protections were among those that would no longer 
apply to these high-performing housing authorities. This would create 
confusion for public housing authorities and leave victims vulnerable 
to eviction after an assault.
  I support the amendment, and appreciate this being added to the bill.
  I yield back the balance of my time.
  Ms. VELAZQUEZ. I thank the gentlelady for supporting my amendment.
  I yield back the balance of my time.
  The Acting CHAIRMAN. The question is on the amendment offered by the 
gentlewoman from New York (Ms. Velazquez).
  The amendment was agreed to.
  Mr. FRANK of Massachusetts. Madam Chair, I ask unanimous consent that 
I be substituted for the gentlewoman from California as the manager for 
the remainder of the bill.
  The Acting CHAIRMAN. Is there objection to the request of the 
gentleman from Massachusetts?
  There was no objection.


      Amendment No. 3 Offered by Mr. Gary G. Miller of California

  The Acting CHAIRMAN. It is now in order to consider amendment No. 3 
printed in House Report 110-227.
  Mr. GARY G. MILLER of California. Madam Chair, I offer an amendment.
  The Acting CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 3 offered by Mr. Gary G. Miller of 
     California:
       Page 28, after line 11, insert the following new section:

     SEC. 6. TIME LIMITATION ON ASSISTANCE.

       Section 16 of the United States Housing Act of 1937 (42 
     U.S.C. 1437n), as amended by the preceding provisions of this 
     Act, is further amended by adding at the end the following 
     new subsection:
       ``(g) Time Limitation on Section 8 Assistance.--
       ``(1) In general.--Except as provided in this subsection 
     and notwithstanding any other provision of this Act, 
     assistance under section 8 may not be provided on behalf of 
     any family that includes a member who has previously been 
     provided such assistance for 84 months (whether or not 
     consecutive) or longer.
       ``(2) Exception for elderly and disabled families.--In 
     determining the number of months for which an individual has 
     been provided assistance under section 8, for purposes of 
     paragraph (1), a public housing agency shall disregard any 
     month during which such individual was a member of a disabled 
     or elderly family so assisted.
       ``(3) Authority for hardship exemptions.--A public housing 
     agency may exempt a family from the application of paragraph 
     (1) by reason of hardship, subject to the following 
     requirements:
       ``(A) The agency shall define the reasons for, and terms 
     under which, a hardship exemption may be granted, which may 
     include mental illness and disability that is not sufficient 
     to qualify the individual for benefits under the program of 
     supplemental security income benefits under title XVI of the 
     Social Security Act.
       ``(B) The agency shall establish a plan to provide 
     appropriate case management planning and services for the 
     families for which such an exemption is granted.
       ``(4) Limitation on exemptions.--Subject to paragraph (5), 
     the average monthly number of families with respect to which 
     an exemption is made under paragraph (3) by a public housing 
     agency shall not exceed 20 percent of the average monthly 
     number of families on behalf of whom assistance is provided 
     under section 8 during the fiscal year or the immediately 
     preceding fiscal year (but not both), as the agency may 
     elect.
       ``(5) Request for additional exemptions.--Upon the request 
     of a public housing agency, the Secretary may increase the 
     number of families with respect to which an exemption may be 
     made under paragraph (3) by the agency above the limitation 
     provided in paragraph (4).
       ``(6) Applicability.--In determining the number of months 
     for which an individual has been provided assistance under 
     section 8, for purposes of paragraph (1), a public housing 
     agency shall disregard any month that commenced before the 
     date of the enactment of the Section 8 Voucher Reform Act of 
     2007.''.

  The Acting CHAIRMAN. Pursuant to House Resolution 534, the gentleman 
from California (Mr. Gary G. Miller) and a Member opposed each will 
control 5 minutes.
  The Chair recognizes the gentleman from California.
  Mr. GARY G. MILLER of California. Madam Chair, I rise today to offer 
an amendment with my colleague from Ohio (Mr. Chabot) to limit the 
amount of time a section 8 recipient may receive housing assistance.
  I believe this amendment offers a reasonable approach to a very 
difficult issue. The intent of this amendment is not to be harsh or 
uncaring. If you read the amendment, you will see that we provide 
exemptions for the elderly, for the disabled and for hardship.
  This amendment is an attempt to inject fairness into this program, 
where we are faced with the fiscal reality that we do not have the 
resources to provide unlimited housing assistance to all those who want 
to participate in the program.
  This amendment will help those who have been waiting a long time for 
their turn for the helping hand.
  When we started working on section 8 reform legislation a couple of 
years ago, I asked my staff to review all the casework inquiries we had 
received from constituents about the section 8 program. This review 
revealed that section 8 recipients weren't contacting me to help them 
with problems with their housing or HUD regulations; the constituents 
who had contacted my office were complaining about the fact that they 
had been on the section 8 waiting list for years and were just as in 
need as those who are receiving assistance currently.
  According to HUD, the average length of time families spend on the

[[Page 18878]]

waiting list for subsidized housing in the United States is more than 2 
years. In cities like Los Angeles, the waiting list is approaching 10 
years.
  How can we justify a situation where one person is given unlimited 
Federal housing assistance, while another who might have greater need 
is on the waiting list and unable to participate in the program for 
almost 10 years?
  The answer is not to allow this program to continue to grow out of 
control by providing more vouchers. Rather, we must reform the program 
so that participants can transition into self-sufficiency within a 
reasonable period of time.
  The answer is to institute a reasonable time limit for assistance, 
which would give more families the ability to benefit from our Nation's 
temporary helping hand.
  The amendment I offer today is based on the successful reform we made 
to the welfare program in 1996. Under the amendment, the maximum amount 
of time during which a family may receive section 8 assistance is 7 
years. Time limits would not apply to elderly or disabled families.
  In addition, there is a hardship exemption for families who need 
extra time due to circumstances beyond their control.
  While some might argue that we should increase the number of section 
8 vouchers that are available so we can serve all those who are on the 
waiting list, the practical reality is that we cannot already sustain 
the growth in the current section 8 program. Our aim should be not to 
expand the program more but instead reform it to allow it to provide 
assistance to more people.
  Even with the section 8 program growing out of control, it is not 
helping all the people that it could. This amendment is one way to 
ensure that our Federal limited resources may be used to help all those 
who need help.
  I reserve the balance of my time.
  Mr. FRANK of Massachusetts. Madam Chair, I rise to claim the time in 
opposition. And unlike my distinguished friend, the gentlewoman from 
Illinois, I'm really in opposition.
  The Acting CHAIRMAN. The gentleman from Massachusetts is recognized 
for 5 minutes.
  Mr. FRANK of Massachusetts. I yield myself 3 minutes.
  First, Madam Chair, in the interest of conciliation that has marked 
this debate, I would say to my friend from California, I would be 
willing to accept this amendment that puts a time limit on people being 
able to stay in section 8 if we could work out a time limit on their 
being poor. I think it is entirely accurate that when you're no longer 
poor, you should no longer be able to live in section 8. But what if we 
can't?
  I can understand people who think that there are adults who have not 
been very responsible in their life choices, but some of the adults 
come with children. The gentleman exempts the disabled and the elderly, 
but his amendment does not exempt families with small children. So you 
have a parent with children.
  Mr. GARY G. MILLER of California. Will the gentleman yield?
  Mr. FRANK of Massachusetts. I yield to the gentleman from California.
  Mr. GARY G. MILLER of California. The intent of this amendment is to 
allow for hardship cases like that. A single mother who has young 
children would be a hardship.
  Mr. FRANK of Massachusetts. Would the gentleman point that out to me 
in the amendment?
  Mr. GARY G. MILLER of California. We tried to allow the Housing 
Authority----
  Mr. FRANK of Massachusetts. No. They have a certain number. They can 
make certain exemptions up to 20 percent.
  Mr. GARY G. MILLER of California. On page 2, hardship exemption, 
number 3. It allows the housing authority to create exemptions for 
families in a hardship. And that would be one of the exemptions.
  Mr. FRANK of Massachusetts. Yes, not exceeding more than 20 percent 
of the families. It doesn't single out children. Well, maybe there will 
be 30 or 40 percent, because in my experience, it may differ, you say 
make an exception for a hardship. That's not the exception for people 
in section 8; it's the rule. There aren't a lot of rich people living 
in section 8 or middle income people.
  The fact is that under the gentleman's amendment, if adopted, there 
will be single parents with children of 7 or 8 or 10 years old, several 
of them, and at the end of 5 years, they'll have to move. Those kids 
didn't do anything to anybody.
  And you know what we've learned from education and from homelessness, 
7 years, the gentleman tells me. He does give them 7 years. It's very 
biblical. But they'll still have to move after 7 years.
  Churning poor people isn't useful. Making people move isn't useful. 
We've adopted some rules here. The gentleman knows we agreed with him 
that we should not charge them for more rent if they're making more 
money. We don't want to have a disincentive. We've done other things to 
improve it.
  But here's a fundamental point. People in section 8 housing are there 
because they meet strict income criteria. Under the gentleman's 
amendment, someone who continues to be poor, who continues to meet the 
income criteria, who has lived up to every rule, who has small 
children, who has tried diligently to get a better job, but in many 
parts of this country, by the way, we're talking about working people. 
There are many people who can work full-time at twice the minimum wage 
and not be able to afford rental housing in his district or in parts of 
my district or in other districts, the gentlewoman from California's 
district. And they'd be evicted. They'd be evicted from housing that 
they were eligible for, for no reason other than the clock.
  I reserve the balance of my time.
  Mr. GARY G. MILLER of California. I yield the balance of time to the 
gentleman from Ohio (Mr. Chabot).
  The Acting CHAIRMAN. The gentleman from Ohio is recognized for 2\1/2\ 
minutes.
  Mr. CHABOT. I thank the gentleman for yielding.
  I would just note that I don't think we are doing those kids living 
in section 8 housing any favors by encouraging a life or a lifestyle of 
living in section 8 housing. I think we're doing them a great 
disservice.
  And I want to thank the gentleman from California for his efforts to 
bring more accountability and responsibility to the section 8 program, 
a program that, let's face it, is in need of fundamental reform.
  Madam Chair, this is a very straightforward and commonsense 
amendment, and again, I want to commend the gentleman for offering it. 
It would simply place a time limit, one that I believe is generous, on 
able-bodied individuals currently receiving housing assistance through 
the section 8 program.
  Under current law, there are no time limits. Those on section 8 can 
remain on section 8 for as long as they qualify.
  Is that fair to the taxpayers? No. Is it fair to the section 8 
recipients who become trapped in a life of dependency or to their 
children? I don't think so. Is it fair that the current lack of time 
limits prevent those on the waiting list, who may have fallen on hard 
times and are genuinely looking for a temporary helping hand, from 
receiving help? I don't think so.
  Madam Chair, I would submit that the current lack of time limits 
isn't fair to anyone.
  We've seen the positive effects that time limits and work 
requirements can have on social programs. We need look no further back 
in history than the 1996 Temporary Assistance For Needy Families, or 
the welfare reform law, that reformed the old welfare system, a system 
that had trapped so many into a life of dependency and poverty. And the 
old welfare system bears a remarkable resemblance to the section 8 
program. And I think that's just unacceptable.
  We can do better in this country than section 8 housing and 
condemning both adults and children to the conditions that they have to 
live in, in my community in Cincinnati or communities all over the 
country. Section 8 housing is not the type of lifestyle that I think we 
want to condemn those people living in them or their children to.

[[Page 18879]]



                              {time}  2030

  And I don't think the taxpayers ought to be required to pay for this 
subsidized housing forever in some cases.
  Mr. GARY G. MILLER of California. Madam Chairman, will the gentleman 
yield?
  Mr. CHABOT. I would be happy to yield to the gentleman from 
California.
  Mr. GARY G. MILLER of California. I think, Mr. Frank, you know my 
heart, and you and I have worked on a lot of stuff. I think Mr. Chabot 
and I would be willing to accept a 50-percent exemption for single 
mothers with multiple children who have a hardship, who are unable to 
move in the sector. So we are willing to cooperate. We are not trying 
to throw mothers with children out of the home.
  The Acting CHAIRMAN. The gentleman's time has expired.
  Mr. FRANK of Massachusetts. Madam Chairman, I would say to my friend 
from California, work on that in a future amendment and we will look at 
it.
  But I want to address the gentleman from Ohio. He says he wants to 
help these people and save them. Boy, would they be in trouble if 
somebody came to hurt them. He is going to help them by evicting them 
when they remain economically eligible. And he says it is encouraging 
dependence.
  In fact, in many parts of this country, you can be making two and 
three times the minimum wage and not be able to afford decent rental 
housing, and that is who gets the section 8.
  And then he says that section 8 housing is so terrible that we have 
to keep people from having to live there. But does the gentleman think 
that there are people who say, ``You know what? I can live in a nice 
place or I can live in a lousy place. I think I'll choose a lousy place 
until the gentleman from Ohio comes along and rescues me from it''?
  People live in the best place available to them, and throwing them 
out of the place they now live in when they have done nothing wrong 
because you don't think it is good enough for them when there is no 
alternative that is as good is hardly helping them.
  The section 8 program is one that serves many people who work. It is 
a sliding scale of subsidy, and to say that it encourages dependency 
totally misunderstands the program. Many of these people are people who 
are working and they work at low-wage jobs in areas with high rent. How 
are you encouraging dependency by telling them and their children that 
after 7 years they go out? What kind of an incentive is that?
  So, Madam Chairman, this amendment takes people who have already been 
in some economic difficulty and makes their lives harder. I hope that 
it is rejected.
  The Acting CHAIRMAN. The question is on the amendment offered by the 
gentleman from California (Mr. Gary G. Miller).
  The question was taken; and the Acting Chairman announced that the 
noes appeared to have it.
  Mr. GARY G. MILLER of California. Madam Chairman, I demand a recorded 
vote.
  The Acting CHAIRMAN. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from California 
will be postponed.


                 Amendment No. 4 Offered by Mr. Markey

  The Acting CHAIRMAN. It is now in order to consider amendment No. 4 
printed in House Report 110-227.
  Mr. MARKEY. Madam Chairman, I offer an amendment.
  The Acting CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 4 offered by Mr. Markey:
       Page 64, line 20, before ``Subparagraph'' insert ``(a) 
     Treatment of Unit and Family Size.--''.
       Page 65, after line 2, insert the following:
       (b) Eligibility of Certain Projects.--Notwithstanding any 
     other provision of law--
       (1) the property known as The Heritage Apartments (FHA No. 
     023-44804), in Malden, Massachusetts, shall be considered 
     eligible low-income housing for purposes of the eligibility 
     of residents of the property for enhanced voucher assistance 
     under section 8(t) of the United States Housing Act of 1937 
     (42 U.S.C. 1437f(t)), pursuant to paragraph (2)(A) of section 
     223(f) of the Low-Income Housing Preservation and Resident 
     Homeownership Act of 1990 (12 U.S.C. 4113(f)(2)(A));
       (2) such residents shall receive enhanced rental housing 
     vouchers upon the prepayment of the mortgage loan for the 
     property under section 236 of the National Housing Act (12 
     U.S.C. 1715z-1); and
       (3) the Secretary shall approve such prepayment and 
     subsequent transfer of the property without any further 
     condition, except that the property shall be restricted for 
     occupancy, until the original maturity date of the prepaid 
     mortgage loan, only by families with incomes not exceeding 80 
     percent of the adjusted median income for the area in which 
     the property is located, as published by the Secretary.

     Amounts for the enhanced vouchers pursuant to this subsection 
     shall be provided under amounts appropriated for tenant-based 
     rental assistance otherwise authorized under section 8(t) of 
     the United States Housing Act of 1937.
       Page 107, after line 2, insert the following new section:

     SEC. 18. TRANSFER OF CERTAIN RENTAL ASSISTANCE CONTRACTS.

       (a) Transfer.--Subject to subsection (c) and 
     notwithstanding any other provision of law, the Secretary of 
     Housing and Urban Development shall, at the request of the 
     owner, transfer or authorize the transfer, of the contracts, 
     restrictions, and debt described in subsection (b)--
       (1) on the housing that is owned or managed by Community 
     Properties of Ohio Management Services LLC or an affiliate of 
     Ohio Capital Corporation for Housing and located in Franklin 
     County, Ohio, to other properties located in Franklin County, 
     Ohio; and
       (2) on the housing that is owned or managed by The Model 
     Group, Inc., and located in Hamilton County, Ohio, to other 
     properties located in Hamilton County, Ohio.
       (b) Contracts, Restrictions, and Debt Covered.--The 
     contracts, restrictions, and debt described in this 
     subsection are as follows:
       (1) All or a portion of a project-based rental assistance 
     housing assistance payments contract under section 8 of the 
     United States Housing Act of 1937 (42 U.S.C. 1437f).
       (2) Existing Federal use restrictions, including without 
     limitation use agreements, regulatory agreements, and 
     accommodation agreements.
       (3) Any subordinate debt held by the Secretary or assigned 
     and any mortgages securing such debt, all related loan and 
     security documentation and obligations, and reserve and 
     escrow balances.
       (c) Retention of Same Number of Units and Amount of 
     Assistance.--Any transfer pursuant to subsection (a) shall 
     result in--
       (1) a total number of dwelling units (including units 
     retained by the owners and units transferred) covered by 
     assistance described in subsection (b)(1) after the transfer 
     remaining the same as such number assisted before the 
     transfer, with such increases or decreases in unit sizes as 
     may be contained in a plan approved by a local planning or 
     development commission or department; and
       (2) no reduction in the total amount of the housing 
     assistance payments under contracts described in subsection 
     (b)(1).
       (d) Effective Date.--This section shall take effect on the 
     date of the enactment of this Act.

  The Acting CHAIRMAN. Pursuant to House Resolution 534, the gentleman 
from Massachusetts (Mr. Markey) and a Member opposed each will control 
5 minutes.
  The Chair recognizes the gentleman from Massachusetts.
  Mr. MARKEY. Madam Chairman, I rise with an amendment that I am making 
in conjunction with the gentlewoman from Ohio (Ms. Pryce). Our language 
seeks to make some technical corrections to ensure that affordable 
housing is preserved in three housing developments, two located in Ohio 
and one in Massachusetts.
  The low-income tenants of the Heritage Apartments in Malden, 
Massachusetts, are facing possible displacement once an outstanding HUD 
mortgage is fully paid in a few years. The development is also in need 
of major renovations and upgrades that simply cannot be delayed. 
Unfortunately, HUD is failing to ensure that the development remains 
affordable and livable by placing burdensome regulations and 
restrictions on prepayment of the outstanding mortgage and subsequent 
transfer to a new owner who is willing to finance the renovations. My 
amendment would allow income-eligible residents to qualify for enhanced 
housing vouchers following the prepayment of the HUD mortgage and the 
property transfer and directs HUD to approve such actions.

[[Page 18880]]

  I will defer to the gentlewoman from Ohio (Ms. Pryce) to explain the 
portion of our amendment which deals with maintaining affordability in 
housing developments located in her congressional district in Ohio.
  The Congressional Budget Office has determined that adoption of this 
language would result in $1 million in net savings to current mandatory 
spending over the next 5 years because HUD is currently paying mortgage 
interest reduction payments for the development which would be 
nullified upon adoption of the Markey-Pryce amendment.
  The amendment is supported by the chairman of the committee and the 
ranking member. It is also supported by the Institute of Real Estate 
Management, National Apartment Association, and the National 
Association of Home Builders. And I urge adoption of the amendment.
  Mr. FRANK of Massachusetts. Madam Chairman, will the gentleman yield?
  Mr. MARKEY. I yield to the gentleman from Massachusetts.
  Mr. FRANK of Massachusetts. Madam Chairman, I thank my friend and 
colleague for yielding.
  And I want to say, as I said to the gentleman from California (Mr. 
Campbell), people are saying why are you making this exception. We are 
making this exception because we think this ought to be the rule. And 
we are dealing with this now because we have time problems in this area 
and in the area of the gentlewoman from Ohio. But it is our intention 
to pass legislation before the end of the year, I think on a bipartisan 
basis, that will make this a rule for the whole country. So this is not 
singling out any one area except for the fact that we face time 
restraints, as the gentleman from California did and the gentleman from 
Ohio did.
  So I want to thank my friend for bringing this forward. And I want to 
make it clear this is the first step of what we believe will be a 
general policy of preserving affordable housing.
  Mr. MARKEY. Madam Chairman, I reserve the balance of my time.
  Mrs. BIGGERT. Madam Chairman, I ask unanimous consent to claim the 
time in opposition to the amendment, although I am not opposed to the 
amendment.
  The Acting CHAIRMAN. Without objection, the gentlewoman from Illinois 
is recognized for 5 minutes.
  There was no objection.
  Mrs. BIGGERT. Madam Chairman, the gentlewoman from Ohio is unable to 
get here in the length of time needed, so I would just say that we 
support the amendment.
  Ms. PRYCE of Ohio. Madam Speaker, I rise today in support of the 
Markey/Pryce amendment to H.R. 1851.
  This amendment includes important language, which I authored, to 
permit the transfer of project-based Section 8 rent assistance from 
concentrated, blight-ridden areas in Columbus and Cincinnati, Ohio to 
less precarious, rehabilitated living conditions. The affected 
neighborhoods all have high poverty rates, a high number of assisted 
housing units, high crime rates, and dilapidated buildings.
  This transfer would have no additional cost to the Federal 
Government. The language preserves the exact same number of assisted 
units and the same dollar amount of Federal assistance.
  The benefits to the community and to the tenants are immeasurable. 
Though struggling, each of these neighborhoods has seen an increasing 
amount of public and private scrutiny and investment. Low income and 
other residents alike would share in the benefits of a safer, more 
stable, and more thriving neighborhood. This proposal would allow the 
community to find more productive and beneficial uses for the 
properties.
  This proposal has widespread support from both communities. Tenants, 
community advocates, government officials, and private developers 
alike--all support the neighborhoods' improvement.
  Madam Speaker, I would not be here today if for the past 6 years in 
Columbus the community had not explored other possible solutions with 
the Department of Housing and Urban Development, tenants, advocates, 
the City of Columbus, the Ohio State University officials, contractors, 
and other key stakeholders, but statutory restrictions constantly 
impeded progress.
  We find ourselves here, not as a first resort, but as a last.
  I would like to thank Chairman Frank and Ranking Member Bachus for 
their support, and my colleague from Massachusetts for working with me 
to enact this important fix into law.
  I thank my colleagues for consideration of this amendment and urge 
your support.
  Mr. BIGGERT. Madam Chairman, I yield back the balance of my time.
  Mr. MARKEY. Madam Chairman, I yield back the balance of my time.
  The Acting CHAIRMAN. The question is on the amendment offered by the 
gentleman from Massachusetts (Mr. Markey).
  The amendment was agreed to.


                 Amendment No. 5 Offered by Mr. Chabot

  The Acting CHAIRMAN. It is now in order to consider amendment No. 5 
printed in House Report 110-227.
  Mr. CHABOT. Madam Chairman, I offer an amendment.
  The Acting CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 5 offered by Mr. Chabot:
       Page 107, strike lines 3 through 9.

  The Acting CHAIRMAN. Pursuant to House Resolution 534, the gentleman 
from Ohio (Mr. Chabot) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Ohio.
  Mr. CHABOT. Madam Chairman, I yield myself such time as I may 
consume.
  This is one of three amendments that I am offering this evening, two 
of the three with a couple of my colleagues, one Mr. Miller from 
California and Mr. Hensarling from Texas, that would encourage 
fundamental reforms in the section 8 program.
  When we committed ourselves to welfare reform, it was the 
understanding that the program should no longer be a taxpayer-funded 
handout but should instead offer people a way out of poverty, helping 
them obtain job and education skills that are needed to become 
ultimately self-sufficient. Ending welfare's cycle of dependency has 
cut the welfare rolls in half, promoted individual responsibility, and 
saved billions of tax dollars in the process. Sadly, current housing 
programs closely resemble the failed welfare policies of the past. Like 
the old welfare programs, the section 8 housing program, unfortunately, 
discourages work and allows people to stay, in fact, encourages them to 
stay on the program, oftentimes indefinitely. It is also too often 
mismanaged by local governments or local housing authorities.
  Unfortunately, this bill does not address those issues but instead 
expands the program to 100,000 new section 8 vouchers at the cost of 
approximately 2.4 billion taxpayer dollars over the next 5 years. That 
is 100,000, approximately, more recipients that get a chunk of the rent 
that is ultimately going to be picked up by their fellow taxpayers and 
ultimately, in my view, doesn't do the people that become dependent 
upon this good in the long term. That is 100,000 more recipients who 
don't have to work to stay in the program, and that is 100,000 
recipients that are being supported by the American taxpayers for as 
long as they like since section 8 now imposes no time limits on the 
beneficiaries.
  I represent most of the city of Cincinnati and its western suburbs 
and a few townships in Butler County, Ohio. Too many neighborhoods in 
my district have had to witness crime, despair, and hopelessness that 
are inherent in a government program that asks virtually nothing of its 
recipients, that encourages dependency rather than responsibility and 
waste, unfortunately, rather than work. Whether it is the funding 
provided by the Federal Government or mismanagement of the program by 
local governments and agencies, section 8 has failed those who use it 
and those who pay for it: the American taxpayers.
  My amendment is straightforward. It would simply stop throwing good 
money after bad and seeks to prevent more Americans from falling victim 
to a life of dependency on the government. My amendment would simply 
prohibit the dollars this bill authorizes from being spent on the 
100,000 new vouchers that this legislation would create.

[[Page 18881]]

  It is also important to point out that the dependency that section 8 
has created is so great that there are long waiting lists to get 
vouchers. Why? Because many of those who gain access to the program 
ultimately don't leave. They don't really have an incentive to. The 
average stay is about 7 years.
  Madam Chairman, if we simply put time limits and meaningful work 
requirements in the program, as the amendments that I have offered with 
Mr. Miller and Mr. Hensarling would do, there wouldn't be a need to 
create more vouchers because people would be moving through the system, 
moving toward independence and a better life, and that nondependence on 
the government is what every American should want.
  Madam Chairman, I reserve the balance of my time.
  Mr. AL GREEN of Texas. Madam Chairman, I rise to claim the time in 
opposition to the amendment.
  The Acting CHAIRMAN. The gentleman from Texas is recognized for 5 
minutes.
  Mr. AL GREEN of Texas. Madam Chairman, allow me to first thank the 
chairperson of the Financial Services Committee, Chairperson Frank. He 
has done an outstanding job with his leadership. I also thank the 
Honorable Maxine Waters, the subcommittee chairperson, for her sound 
stewardship; and, of course, Ranking Member Bachus for his 
bipartisanship because it helped to synthesize this piece of 
legislation. And I also thank the cosponsorship of Congresswoman 
Biggert. She has been cogent with her cosponsorship.
  Madam Chairman, let me simply say that this is bipartisan legislation 
that we are talking about and the striking of the 100,000 vouchers over 
5 years will put an end to what started as bipartisan legislation in 
the committee. This was passed overwhelmingly in the committee, and it 
was supported by the ranking member of the committee.
  This is not, as was indicated, a handout. It is really a hand up for 
the disabled. It is a hand up for the elderly. And it also benefits 
low-income to extremely low-income persons, many of whom are working 
and still not in a position to afford affordable housing. Many of them 
need the kind of help that this bill is providing.
  The truth is, and you shall know the truth, and it will set you free. 
So at this moment, I am going to take the ax of truth, slam it into the 
tree of circumstance, and let the chips fall wherever they may. The 
truth is one in seven households in this country spends more than 50 
percent of their income on housing. Three-quarters of a million people 
are homeless on any given night in this country. Congress has not 
provided new section 8 vouchers since 2002. The truth is we can pay for 
one of these vouchers with 2 seconds of what we spend on the war in 
Iraq. We can pay for all of these vouchers with what we spend on 2\1/2\ 
days in Iraq. The truth is the need exists for these vouchers. The 
truth is it is time for Congress to act and to authorize these new 
section 8 vouchers.
  Madam Chairman, at this time I would like to yield 1 minute to my 
outstanding colleague Congressman Chris Murphy.
  Mr. MURPHY of Connecticut. Madam Chairman, I thank my friend for his 
great work on this issue.
  I think it is important to address the concept presented by our 
friends on the other side of the aisle that the folks who are the 
recipients of these vouchers are victims. Well, they might be victims, 
but they are victims of an economy which says to far too many people 
out in this world that if you play by the rules, if you do everything 
we ask of you, if you go out and get a job, a full-time regular job, 
that you are still going to be living in poverty, that you are still 
going to need a little help to be able to survive in this world.

                              {time}  2045

  In a high-cost-of-living State and a high-cost-of-housing State like 
Connecticut, 5,000 vouchers does not do it for the working poor there. 
We have people in our neck of the woods that are paying 60, 70, 80 
percent of their income, hard-earned income on rent.
  We are a part of the world that desperately needs more section 8 
housing vouchers to help the working poor, the people who are doing 
everything this society asks them to do. But because we live in an 
economy where wages are stagnant and the cost of living continues to 
rise, a program like this is a very valuable and needed helping hand.
  Mr. AL GREEN of Texas. Madam Chair, may I inquire as to how much time 
is remaining?
  The Acting CHAIRMAN. The gentleman from Texas has 1\1/2\ minutes 
remaining; the gentleman from Ohio also has 1\1/2\ minutes remaining.
  Mr. AL GREEN of Texas. Madam Chairman, I reserve the balance of my 
time.
  Mr. CHABOT. Madam Chairman, I reserve the balance of my time.
  Mr. AL GREEN of Texas. Madam Chair, I believe I would retain the 
right to speak last and continue to reserve.


                         Parliamentary Inquiry

  Mr. FRANK of Massachusetts. Madam Chairman, I have a parliamentary 
inquiry.
  The Acting CHAIRMAN. The gentleman will state his parliamentary 
inquiry.
  Mr. FRANK of Massachusetts. The gentleman is a member of the 
committee defending the committee's product. I believe he has the right 
to close; is that correct?
  The Acting CHAIRMAN. The gentleman is correct. The gentleman from 
Texas has the right to close.
  Mr. CHABOT. That being the case, Madam Chair, I give myself such time 
as I have remaining.
  The Acting CHAIRMAN. The gentleman is recognized for 1\1/2\ minutes.
  Mr. CHABOT. Madam Chair, I would just like to reiterate the fact that 
I don't think we're doing either the children or the people that have 
become dependent on section 8 housing any favors by allowing, number 
one, the area that we covered in the last amendment, people to remain 
on section 8 housing indefinitely. I think that the time limit that's 
been proposed in the previous amendment is certainly a step in the 
right direction. The amendment that we have following this goes to a 
work requirement, which I think is also very reasonable in a program 
such as this.
  I think encouraging people to remain dependent upon the government in 
the conditions that oftentimes we see in section 8 housing is doing no 
favor for those families, and that's why I think this is an appropriate 
amendment, and I urge my colleagues to support it.
  Madam Chair, I yield back the balance of my time.
  The Acting CHAIRMAN. The gentleman from Texas is recognized for 1\1/
2\ minutes.
  Mr. AL GREEN of Texas. Madam Chair, it is beyond my comprehension to 
conclude that because people are working and in need of housing 
assistance, they should be evicted from the very assistance they are 
paying for because they don't make enough money to move to a better 
home.
  I'm doing this not only for the people of my district, but I'm also 
doing this for the people in my colleague's district as well, because 
he has a deficit of 13,177 rental units for persons who are in need of 
this type of affordable housing.
  This is not housing for those who don't need it and who are not 
qualified. The elderly need it. The persons who are with low-income and 
very low-income need it, and those who are disabled. And for 
edification purposes, when we talk about persons with extremely low 
income, we are talking about persons who make at or below 30 percent of 
the area median income. And many of these persons are using 50 percent 
of what they earn on housing.
  So, Madam Chair, I am appreciative of what the gentleman has offered, 
but I'm going to ask persons to please vote against this amendment and 
vote for the disabled, vote for the elderly, vote so that persons with 
low income and extremely low income can have affordable housing.
  Madam Chair, I yield back the balance of my time.
  The Acting CHAIRMAN. The question is on the amendment offered by the 
gentleman from Ohio (Mr. Chabot).
  The question was taken; and the Acting Chairman announced that the 
noes appeared to have it.

[[Page 18882]]


  Mr. CHABOT. Madam Chairman, I demand a recorded vote.
  The Acting CHAIRMAN. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from Ohio will be 
postponed.


               Amendment No. 6 Offered by Mr. Hensarling

  The Acting CHAIRMAN. It is now in order to consider amendment No. 6 
printed in House Report 110-227.
  Mr. HENSARLING. Madam Chairman, I offer an amendment.
  The Acting CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 6 offered by Mr. Hensarling:
       Page 107, after line 9, insert the following new section:

     SEC. 19. WORK REQUIREMENT FOR THOSE RECEIVING ASSISTANCE FOR 
                   7 YEARS OR MORE.

       Section 16 of the United States Housing Act of 1937 (42 
     U.S.C. 1437n), as amended by the preceding provisions of this 
     Act, is further amendment by adding at the end the following 
     new subsection:
       ``(g) Work Requirement for Assisted Families Receiving 
     Section 8 Assistance for 7 Years or More.--
       ``(1) In general.--Except as provided in this subsection 
     and notwithstanding any other provision of this Act, 
     assistance under section 8 may not be provided on behalf of 
     any family who has previously been provided such assistance 
     for 84 consecutive months or more, unless each member of the 
     family who is 18 years of age or older performs not fewer 
     than 20 hours of approved work activities (as such term is 
     defined in section 407(d) of the Social Security Act (42 
     U.S.C. 607(d))).
       ``(2) Exemption.--The Secretary of Housing and Urban 
     Development shall provide an exemption from the applicability 
     of paragraph (1) for any individual family member who--
       ``(A) is 62 years of age or older;
       ``(B) is a blind or disabled individual, as defined under 
     section 216(i)(1) or 1614 of the Social Security Act (42 
     U.S.C. 416(i)(1); 1382c), and who is unable to comply with 
     this section, or is a primary caretaker of such individual;
       ``(C) is engaged in a work activity (as such term is 
     defined in section 407(d) of the Social Security Act (42 
     U.S.C. 607(d)), as in effect on and after July 1, 1997));
       ``(D) meets the requirements for being exempted from having 
     to engage in a work activity under the State program funded 
     under part A of title IV of the Social Security Act (42 
     U.S.C. 601 et seq.) or under any other welfare program of the 
     State in which the public housing agency administering rental 
     assistance described in subsection (a) is located, including 
     a State-administered welfare-to-work program;
       ``(E) is in a family receiving assistance under a State 
     program funded under part A of title IV of the Social 
     Security Act (42 U.S.C. 601 et seq.) or under any other 
     welfare program of the State in which the public housing 
     agency administering such rental assistance is located, 
     including a State-administered welfare-to-work program, and 
     has not been found by the State or other administering entity 
     to be in noncompliance with such program; or
       ``(F) is a single custodial parent caring for a child who 
     has not attained 6 years of age, and the individual proves 
     that the individual has a demonstrated inability (as 
     determined by the State) to obtain needed child care, for one 
     or more of the following reasons:
       ``(i) Unavailability of appropriate child care within a 
     reasonable distance from the individual's home or work site.
       ``(ii) Unavailability or unsuitability of informal child 
     care by a relative or under other arrangements.
       ``(iii) Unavailability of appropriate and affordable formal 
     child care arrangements.
       ``(3) Administration.--A public housing agency providing 
     rental assistance described in paragraph (1) may administer 
     the work activities requirement under this subsection 
     directly, through a resident organization, or through a 
     contractor having experience in administering work activities 
     programs within the service area of the public housing 
     agency. The Secretary may establish qualifications for such 
     organizations and contractors.
       ``(4) Prospective applicability.--In determining the number 
     of months for which an assisted family has been provided 
     assistance under section 8, for purposes of paragraph (1), a 
     public housing agency shall disregard any month that 
     commenced before the date of the enactment of the Section 8 
     Voucher Reform Act of 2007.''.
       Page 39, line 18, strike ``and''.
       Page 39, after line 18, insert the following:
       ``(v) include an amount for the costs of administering the 
     work activities requirement under section 16(g); and''.
       Page 39, line 19, strike ``(v)'' and insert ``(vi)''.

  The Acting CHAIRMAN. Pursuant to House Resolution 534, the gentleman 
from Texas (Mr. Hensarling) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Texas.
  Mr. HENSARLING. Madam Chairman, I yield myself such time as I may 
consume.
  I rise today to offer an amendment with my good friend, the gentleman 
from Ohio (Mr. Chabot), who just offered the previous amendment, and I 
certainly associate myself with his efforts on the previous amendment.
  This amendment represents what many of us consider to be a very, very 
important principle, and that fundamental important principle is if 
you're an able-bodied adult under the age of 62 receiving means-tested 
Federal assistance, you ought to be on the road to self-sufficiency. 
That's what this amendment is all about, and that's what the principle 
is. This, we believe, will further encourage people to make the 
transition from dependency upon section 8 rental assistance to self-
sufficiency. Not only is that important to them, it's important to the 
taxpayer who we're asking to pick up the tab. And this is, I believe, 
over a $2 billion bill.
  Now, specifically, our amendment would require people receiving 
section 8 rental assistance for 7 consecutive years to perform a 
certain amount of work-related activities, which includes work, looking 
for work, job training, education and a host of other activities that 
are reflected in the TANF statute, which we mirror. There are a number 
of exemptions. It exempts those under age 18, over the age of 62, 
blind, disabled, those already working, already exempt under TANF, 
single parents of children under six who are unable to find appropriate 
child care.
  Over 10 years ago, the Nation embarked on a bold new experiment with 
TANF, and we said that Federal assistance should be temporary and based 
on work and self-sufficiency and responsibility and personal dignity. 
That is a principle. Now many naysayers then said that it was mean. 
They said it was unworkable. Some even implied it was racist. Well, 
they were wrong then, and they are wrong now. Under TANF, the number of 
families receiving cash welfare steadily declined from a peak of 5.1 
million families in March of 1994 to 1.9 million families. Child 
poverty has fallen dramatically. The employment of young single mothers 
has doubled, and the employment of mothers who have never been married 
is up by more than 50 percent.
  Now, the lessons are clear. But we didn't finish the job 10 years 
ago, and we should finish it. Again, this is a vote on a very simple 
principle. If you're an able-bodied adult receiving means-tested 
Federal assistance, should you be on the road to self-sufficiency? I 
believe the answer is yes.
  Madam Chair, I reserve the balance of my time.
  Mr. SCOTT of Georgia. Madam Chair, I rise in opposition to the 
amendment.
  The Acting CHAIRMAN. The gentleman is recognized for 5 minutes.
  Mr. SCOTT of Georgia. We have just heard the gentleman from Texas lay 
out a scenario that is ripe full of holes. This amendment is drastic. 
It is costly. It is inefficient. It affects all families and 
individuals currently using a voucher or living in section 8 project-
based housing. It's impossible to administer. Even HUD and the 
administration itself has not even requested it. It imposes a new 
unfunded mandate on private sector landlords owning Federally assisted 
housing, forcing them to assume the role of a welfare agency.
  The gentleman talks about a boom on the taxpayers. This imposes a 
significant cost to taxpayers by raising the costs incurred by public 
housing.
  And I have in my hands a letter from just about every housing and 
real estate and housing association in this country saying, in effect, 
that we are not able to support the Hensarling amendment.
  Most exemplary of the ridiculousness of this amendment is that he 
asks for 20 hours of work, but doesn't say how, doesn't say when. 
Twenty hours when? Twenty hours a week? Twenty hours a month? Twenty 
hours a year? There is no way to administer it.
  But Madam Chair, what is so hurtful to me about this amendment; yes, 
it is mean-spirited. But not only is it mean-

[[Page 18883]]

spirited, my friend, it is, indeed, bigoted. It is, yes, a bigoted 
amendment. Let me tell you why. It reflects a very stereotypical 
negative view of certain economic racial groups of poor people, poor 
families, because it singles them out for an ill-defined work 
requirement that does not apply to other families and individuals 
receiving Federal assistance.
  This amendment needs to be dealt with for what it really is, and 
quite honestly, it is an insult to the Congress of the United States. 
And I submit it is even beneath the dignity of the Congress of the 
United States to even entertain this amendment.
  Madam Chair, I yield 1\1/2\ minutes to the gentleman from Missouri 
(Mr. Cleaver), and I reserve the balance of my time to close.
  Mr. CLEAVER. Madam Chair, I would ask to enter into a colloquy with 
the gentleman from Texas regarding his amendment on this bill. As 
probably the only person who lived in section 8, I may not be opposed 
to it; I would just like to get some questions, if I might.
  If the gentleman would please help me on this. Are you proposing to 
amend section 8 or TANF?
  Mr. HENSARLING. Section 8, if the gentleman will yield.
  Mr. CLEAVER. Thank you. Because all of the information that your 
staff sent out contains information about TANF, and you just spoke 
quite extensively about TANF.
  Mr. HENSARLING. Will the gentleman yield for an explanation?
  Mr. CLEAVER. I can't yield because I don't have enough time. But most 
everything you've said was TANF.
  The other two questions that I will ask very quickly is, if a person 
lives in public housing or section 8, does it mean that they're on 
welfare?
  Mr. HENSARLING. I'm sorry. Would the gentleman repeat the question?
  Mr. CLEAVER. If you are living in public housing or section 8, does 
it also mean that you are on welfare? And if so, which law will HUD 
enforce, the TANF regulation or the amended section 8 regulation which 
you propose?
  Mr. HENSARLING. If the gentleman will yield?
  Mr. SCOTT of Georgia. I will yield to the gentleman to respond.
  Mr. HENSARLING. I thank the gentleman from Georgia.
  This particular amendment mirrors the TANF statute, and so there may 
be confusion there.
  The Acting CHAIRMAN. The gentleman from Missouri's time has expired.
  Mr. CLEAVER. Madam Chair, my questions weren't answered, but thank 
you.
  Mr. SCOTT of Georgia. May I inquire as to the balance of my time?
  The Acting CHAIRMAN. The gentleman from Georgia controls 1 minute.
  Mr. SCOTT of Georgia. I reserve the right to close, if the gentleman 
from Texas has more to offer.
  Mr. HENSARLING. Madam Chair, may I inquire how much time is left on 
my side?
  The Acting CHAIRMAN. The gentleman controls 2 additional minutes.
  Mr. HENSARLING. In that case, Madam Chair, I would like to yield 1\1/
2\ minutes to the gentleman from Ohio (Mr. Chabot).
  Mr. CHABOT. I thank the gentleman for yielding. And I thank the 
gentleman from Texas for his efforts to bring more accountability to 
the section 8 program. It's much needed and long overdue.
  As welfare reform has shown us, the section 8 program should not 
become a way of life. It should be a helping hand, a way out of 
poverty. Ending the welfare cycle of dependency that has trapped so 
many has cut the welfare rolls in half, promoted individual 
responsibility and saved billions of tax dollars in the process.
  One of the primary engines that continues to drive the civic welfare 
reform is the requirement that those in the program must work, and 
that's all that this amendment does. To be clear, the Hensarling-Chabot 
amendment would simply require all able-bodied individuals who have 
received section 8 for more than 7 consecutive years to work. I don't 
see anything at all mean-spirited about that. I certainly don't see 
anything bigoted about that to say that if somebody is receiving tax 
dollars, they ought to be required to work, to do something in 
consideration for the tax dollars that are being paid to help that 
person live while they need that assistance.
  So the amendment, again, as the gentleman indicates, exempts those 
that are under 18 years of age, that are over 62 or blind or disabled, 
and those already exempt under TANF, and single parents of children 
under 6. The amendment benefits the taxpayer and those in the section 8 
program.
  I would urge my colleagues to vote for this amendment. It requires 
work, and I think that's a good thing.
  The Acting CHAIRMAN. The gentleman from Texas still controls a half 
minute.
  Mr. HENSARLING. I yield myself the balance of the time.
  Again, I thank the gentleman from Ohio for coming down to support 
this important amendment.
  I continue to fail to see what is mean-spirited about asking people, 
after 7 years, who get means-tested assistance, to be on the road to 
self-sufficiency, something good for them, something good for the 
taxpayer.
  I must admit, I really regret, Madam Chairman, that the gentleman 
from Georgia chose to characterize this as ``bigoted.'' Perhaps I could 
have taken his words down. I sense when you run out of anything else to 
say, you characterize someone else's motivations and you use the term 
``bigoted.'' And that, I regret.

                              {time}  2100

  Madam Chairman, I yield back the balance of my time.
  The Acting CHAIRMAN. The gentleman from Georgia is recognized for 1 
minute.
  Mr. SCOTT of Georgia. Let me explain, if I may, Madam Chair, in 
closing. This is very personal to me. I've grown up in this country. I 
understand messages and I understand this message. This is a message 
that is targeted to a group of people, no matter how small they may be, 
who believe that certain people are categorized as wanting a handout, 
or that they are lazy, or that they don't want to work. So then the cry 
comes, before we can give them any help, make them work. Make them get 
a job.
  Madam Chairman, that is what this is about. In my humble opinion, 20 
hours of work, not even defined, whether it is a day, whether it is a 
month, whether it is a week, no requirements in it, is an unfunded 
mandate.
  On top of that, Madam Chairman, there are already included in this 
bill a number of provisions to encourage work, to encourage self-
sufficiency, including reduced work disincentives.
  So in closing, may I say, Madam Chairman, please vote against the 
gentleman's amendment.
  The Acting CHAIRMAN. The question is on the amendment offered by the 
gentleman from Texas (Mr. Hensarling).
  The question was taken; and the Acting Chairman announced that the 
noes appeared to have it.
  Mr. HENSARLING. Madam Chairman, I demand a recorded vote.
  The Acting CHAIRMAN. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from Texas will 
be postponed.


                  Announcement by the Acting Chairman

  The Acting CHAIRMAN. Pursuant to clause 6 of rule XVIII, proceedings 
will now resume on those amendments on which further proceedings were 
postponed, in the following order:
  Amendment No. 3 by Mr. Gary G. Miller of California.
  Amendment No. 5 by Mr. Chabot of Ohio.
  Amendment No. 6 by Mr. Hensarling of Texas.
  The Chair will reduce to 5 minutes the time for any electronic vote 
after the first vote in this series.


      Amendment No. 3 Offered by Mr. Gary G. Miller of California

  The Acting CHAIRMAN. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentleman from California 
(Mr. Gary G. Miller) on which further proceedings were postponed and on 
which the noes prevailed by voice vote.

[[Page 18884]]

  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The Acting CHAIRMAN. A recorded vote has been demanded.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 151, 
noes 267, not voting 18, as follows:

                             [Roll No. 625]

                               AYES--151

     Aderholt
     Alexander
     Bachmann
     Bachus
     Baker
     Barrett (SC)
     Bartlett (MD)
     Barton (TX)
     Biggert
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Boehner
     Bonner
     Bono
     Boozman
     Boustany
     Brady (TX)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Campbell (CA)
     Cannon
     Cantor
     Capito
     Carter
     Chabot
     Coble
     Cole (OK)
     Conaway
     Crenshaw
     Davis (KY)
     Davis, David
     Deal (GA)
     Dent
     Doolittle
     Drake
     Dreier
     Duncan
     Everett
     Fallin
     Feeney
     Flake
     Forbes
     Fortenberry
     Foxx
     Franks (AZ)
     Gallegly
     Garrett (NJ)
     Gillmor
     Gingrey
     Gohmert
     Goode
     Goodlatte
     Granger
     Graves
     Hall (TX)
     Hastings (WA)
     Hayes
     Heller
     Hensarling
     Herger
     Hoekstra
     Hulshof
     Hunter
     Inglis (SC)
     Issa
     Johnson (IL)
     Johnson, Sam
     Jones (NC)
     Jordan
     Keller
     King (IA)
     Kingston
     Kirk
     Kline (MN)
     Knollenberg
     Lamborn
     Latham
     Lewis (CA)
     Lewis (KY)
     Linder
     Lucas
     Lungren, Daniel E.
     Mack
     Manzullo
     McCarthy (CA)
     McCaul (TX)
     McHenry
     McKeon
     McMorris Rodgers
     Mica
     Miller (FL)
     Miller, Gary
     Mitchell
     Moran (KS)
     Murphy, Patrick
     Musgrave
     Myrick
     Neugebauer
     Nunes
     Pence
     Peterson (MN)
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Poe
     Price (GA)
     Pryce (OH)
     Putnam
     Regula
     Rehberg
     Reynolds
     Rogers (AL)
     Rogers (KY)
     Rohrabacher
     Roskam
     Royce
     Ryan (WI)
     Sali
     Schmidt
     Schwartz
     Sensenbrenner
     Sessions
     Shadegg
     Shuster
     Simpson
     Smith (NE)
     Smith (TX)
     Sullivan
     Terry
     Thornberry
     Tiahrt
     Tiberi
     Walberg
     Walsh (NY)
     Wamp
     Weldon (FL)
     Weller
     Westmoreland
     Whitfield
     Wicker
     Wilson (SC)
     Wolf
     Young (FL)

                               NOES--267

     Abercrombie
     Ackerman
     Akin
     Allen
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Barrow
     Bean
     Becerra
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Blunt
     Bordallo
     Boren
     Boswell
     Boucher
     Boyd (FL)
     Boyda (KS)
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Butterfield
     Camp (MI)
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson
     Castle
     Castor
     Chandler
     Christensen
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Cooper
     Costa
     Costello
     Courtney
     Cramer
     Crowley
     Cuellar
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis, Lincoln
     Davis, Tom
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Doggett
     Donnelly
     Doyle
     Edwards
     Ehlers
     Ellison
     Ellsworth
     Emanuel
     Emerson
     Engel
     English (PA)
     Eshoo
     Etheridge
     Farr
     Fattah
     Ferguson
     Filner
     Fortuno
     Fossella
     Frank (MA)
     Frelinghuysen
     Gerlach
     Giffords
     Gilchrest
     Gillibrand
     Gonzalez
     Gordon
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Hare
     Harman
     Hastings (FL)
     Herseth Sandlin
     Hill
     Hinchey
     Hinojosa
     Hirono
     Hobson
     Hodes
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Johnson (GA)
     Johnson, E. B.
     Jones (OH)
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick
     Kind
     King (NY)
     Klein (FL)
     Kucinich
     Kuhl (NY)
     LaHood
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     LaTourette
     Lee
     Levin
     Lewis (GA)
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lynch
     Mahoney (FL)
     Maloney (NY)
     Marchant
     Markey
     Marshall
     Matheson
     Matsui
     McCarthy (NY)
     McCollum (MN)
     McCotter
     McDermott
     McGovern
     McHugh
     McIntyre
     McNerney
     McNulty
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (MI)
     Miller (NC)
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Murphy (CT)
     Murphy, Tim
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Norton
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor
     Payne
     Pearce
     Perlmutter
     Platts
     Pomeroy
     Porter
     Price (NC)
     Rahall
     Ramstad
     Rangel
     Reichert
     Renzi
     Reyes
     Rodriguez
     Rogers (MI)
     Ros-Lehtinen
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Saxton
     Schakowsky
     Schiff
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shays
     Shea-Porter
     Sherman
     Shuler
     Sires
     Skelton
     Smith (NJ)
     Smith (WA)
     Snyder
     Solis
     Souder
     Space
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Tauscher
     Taylor
     Thompson (CA)
     Thompson (MS)
     Tierney
     Towns
     Turner
     Udall (CO)
     Udall (NM)
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Walden (OR)
     Walz (MN)
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch (VT)
     Wexler
     Wilson (NM)
     Wilson (OH)
     Woolsey
     Wu
     Wynn
     Yarmuth

                             NOT VOTING--18

     Berkley
     Conyers
     Cubin
     Culberson
     Davis, Jo Ann
     Faleomavaega
     Hastert
     Higgins
     Jindal
     McCrery
     Miller, George
     Paul
     Radanovich
     Shimkus
     Slaughter
     Stearns
     Tancredo
     Young (AK)

                              {time}  2127

  Messrs. WATT of North Carolina, MEEK of Florida, CAMP of Michigan, 
ENGLISH of Pennsylvania, ROGERS of Michigan, HOYER, KUHL of New York 
and Mrs. MILLER of Michigan changed their vote from ``aye'' to ``no.''
  Mrs. BONO changed her vote from ``no'' to ``aye.''
  So the amendment was rejected.
  The result of the vote was announced as above recorded.


                 Amendment No. 5 Offered by Mr. Chabot

  The Acting CHAIRMAN. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentleman from Ohio (Mr. 
Chabot) on which further proceedings were postponed and on which the 
noes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The Acting CHAIRMAN. A recorded vote has been demanded.
  A recorded vote was ordered.
  The Acting CHAIRMAN. This will be a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 144, 
noes 277, not voting 15, as follows:

                             [Roll No. 626]

                               AYES--144

     Aderholt
     Akin
     Bachmann
     Barrett (SC)
     Bartlett (MD)
     Barton (TX)
     Biggert
     Bilbray
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono
     Boozman
     Brady (TX)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Buyer
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Cantor
     Carter
     Chabot
     Coble
     Cole (OK)
     Conaway
     Crenshaw
     Culberson
     Davis (KY)
     Davis, David
     Deal (GA)
     Dent
     Doolittle
     Drake
     Dreier
     Duncan
     Everett
     Fallin
     Feeney
     Flake
     Forbes
     Fortenberry
     Foxx
     Franks (AZ)
     Gallegly
     Garrett (NJ)
     Gingrey
     Gohmert
     Goode
     Goodlatte
     Granger
     Graves
     Hall (TX)
     Hastings (WA)
     Hayes
     Heller
     Hensarling
     Herger
     Hobson
     Hoekstra
     Hunter
     Inglis (SC)
     Issa
     Johnson (IL)
     Johnson, Sam
     Jordan
     Keller
     King (IA)
     Kingston
     Kirk
     Kline (MN)
     Knollenberg
     Lamborn
     Latham
     Lewis (CA)
     Lewis (KY)
     Linder
     Lucas
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     McCarthy (CA)
     McCaul (TX)
     McCotter
     McHenry
     McKeon
     McMorris Rodgers
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Murphy, Patrick
     Musgrave
     Myrick
     Neugebauer
     Nunes
     Pearce
     Pence
     Peterson (MN)
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Poe
     Price (GA)
     Pryce (OH)
     Putnam
     Regula
     Rehberg
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Roskam
     Royce
     Ryan (WI)
     Sali
     Schmidt
     Schwartz
     Sensenbrenner
     Sessions
     Shadegg
     Shuster
     Smith (NE)
     Smith (TX)
     Sullivan
     Thornberry
     Tiahrt
     Tiberi
     Upton
     Walberg
     Wamp
     Weldon (FL)
     Weller
     Westmoreland
     Wicker
     Wilson (SC)
     Wolf
     Young (FL)

                               NOES--277

     Abercrombie
     Ackerman
     Alexander
     Allen
     Altmire
     Andrews
     Arcuri
     Baca
     Bachus
     Baird
     Baker
     Baldwin
     Barrow
     Bean
     Becerra
     Berman
     Berry
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Bordallo
     Boren
     Boswell
     Boucher
     Boustany
     Boyd (FL)
     Boyda (KS)
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Burgess
     Butterfield
     Capito
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson
     Castle
     Castor
     Chandler
     Christensen
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Cooper
     Costa
     Costello
     Courtney
     Cramer
     Crowley
     Cuellar
     Cummings

[[Page 18885]]


     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis, Lincoln
     Davis, Tom
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Doggett
     Donnelly
     Doyle
     Edwards
     Ehlers
     Ellison
     Ellsworth
     Emanuel
     Emerson
     Engel
     English (PA)
     Eshoo
     Etheridge
     Farr
     Fattah
     Ferguson
     Filner
     Fortuno
     Fossella
     Frank (MA)
     Frelinghuysen
     Gerlach
     Giffords
     Gilchrest
     Gillibrand
     Gillmor
     Gonzalez
     Gordon
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Hare
     Harman
     Hastings (FL)
     Herseth Sandlin
     Higgins
     Hill
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Hulshof
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Johnson (GA)
     Johnson, E. B.
     Jones (NC)
     Jones (OH)
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick
     Kind
     King (NY)
     Klein (FL)
     Kucinich
     Kuhl (NY)
     LaHood
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     LaTourette
     Lee
     Levin
     Lewis (GA)
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lynch
     Mahoney (FL)
     Maloney (NY)
     Markey
     Marshall
     Matheson
     Matsui
     McCarthy (NY)
     McCollum (MN)
     McDermott
     McGovern
     McHugh
     McIntyre
     McNerney
     McNulty
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (NC)
     Miller, George
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (KS)
     Moran (VA)
     Murphy (CT)
     Murphy, Tim
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Norton
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor
     Payne
     Perlmutter
     Platts
     Pomeroy
     Porter
     Price (NC)
     Rahall
     Ramstad
     Rangel
     Reichert
     Renzi
     Reyes
     Reynolds
     Rodriguez
     Ros-Lehtinen
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Saxton
     Schakowsky
     Schiff
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shays
     Shea-Porter
     Sherman
     Shimkus
     Shuler
     Simpson
     Sires
     Skelton
     Smith (NJ)
     Smith (WA)
     Snyder
     Solis
     Souder
     Space
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Tauscher
     Taylor
     Terry
     Thompson (CA)
     Thompson (MS)
     Tierney
     Towns
     Turner
     Udall (CO)
     Udall (NM)
     Van Hollen
     Velazquez
     Visclosky
     Walden (OR)
     Walsh (NY)
     Walz (MN)
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch (VT)
     Wexler
     Whitfield
     Wilson (NM)
     Wilson (OH)
     Woolsey
     Wu
     Wynn
     Yarmuth

                             NOT VOTING--15

     Berkley
     Burton (IN)
     Conyers
     Cubin
     Davis, Jo Ann
     Faleomavaega
     Hastert
     Jindal
     McCrery
     Paul
     Radanovich
     Slaughter
     Stearns
     Tancredo
     Young (AK)


                  Announcement by the Acting Chairman

  The Acting CHAIRMAN (during the vote). Members are advised there are 
2 minutes remaining in this vote.

                              {time}  2135

  So the amendment was rejected.
  The result of the vote was announced as above recorded.


               Amendment No. 6 Offered by Mr. Hensarling

  The Acting CHAIRMAN. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentleman from Texas (Mr. 
Hensarling) on which further proceedings were postponed and on which 
the noes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The Acting CHAIRMAN. A recorded vote has been demanded.
  A recorded vote was ordered.
  The Acting CHAIRMAN. This will be a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 197, 
noes 222, not voting 17, as follows:

                             [Roll No. 627]

                               AYES--197

     Aderholt
     Akin
     Alexander
     Bachmann
     Bachus
     Baker
     Barrett (SC)
     Barrow
     Bartlett (MD)
     Barton (TX)
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono
     Boozman
     Boustany
     Boyd (FL)
     Boyda (KS)
     Brady (TX)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Cantor
     Capito
     Carter
     Castle
     Chabot
     Coble
     Cole (OK)
     Conaway
     Crenshaw
     Culberson
     Davis (KY)
     Davis, David
     Davis, Tom
     Deal (GA)
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Doolittle
     Drake
     Dreier
     Duncan
     Ehlers
     Emerson
     English (PA)
     Everett
     Fallin
     Feeney
     Ferguson
     Flake
     Forbes
     Fortenberry
     Fortuno
     Fossella
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Gillmor
     Gingrey
     Gohmert
     Goode
     Goodlatte
     Granger
     Graves
     Hall (TX)
     Hastings (WA)
     Hayes
     Heller
     Hensarling
     Herger
     Hill
     Hobson
     Hoekstra
     Hulshof
     Hunter
     Inglis (SC)
     Issa
     Johnson (IL)
     Johnson, Sam
     Jones (NC)
     Jordan
     Keller
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kline (MN)
     Knollenberg
     Kuhl (NY)
     LaHood
     Lamborn
     Latham
     Lewis (CA)
     Lewis (KY)
     Linder
     Lipinski
     LoBiondo
     Lucas
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     Marshall
     McCarthy (CA)
     McCaul (TX)
     McCotter
     McHenry
     McHugh
     McKeon
     McMorris Rodgers
     McNerney
     Melancon
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Moran (KS)
     Murphy, Patrick
     Murphy, Tim
     Musgrave
     Myrick
     Neugebauer
     Nunes
     Pearce
     Pence
     Peterson (MN)
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Platts
     Poe
     Porter
     Price (GA)
     Putnam
     Ramstad
     Rehberg
     Reichert
     Renzi
     Reynolds
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Ros-Lehtinen
     Roskam
     Royce
     Ryan (WI)
     Sali
     Saxton
     Schmidt
     Schwartz
     Sensenbrenner
     Sessions
     Shadegg
     Shays
     Shuster
     Simpson
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Souder
     Sullivan
     Tanner
     Taylor
     Terry
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Upton
     Walberg
     Walden (OR)
     Walsh (NY)
     Wamp
     Weldon (FL)
     Weller
     Westmoreland
     Whitfield
     Wicker
     Wilson (SC)
     Wolf
     Young (FL)

                               NOES--222

     Abercrombie
     Ackerman
     Allen
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Bean
     Becerra
     Berman
     Berry
     Biggert
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Bordallo
     Boren
     Boswell
     Boucher
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Butterfield
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson
     Castor
     Chandler
     Christensen
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Cooper
     Costa
     Costello
     Courtney
     Cramer
     Crowley
     Cuellar
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis, Lincoln
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dicks
     Dingell
     Doggett
     Donnelly
     Doyle
     Edwards
     Ellison
     Ellsworth
     Emanuel
     Engel
     Eshoo
     Etheridge
     Farr
     Fattah
     Filner
     Frank (MA)
     Giffords
     Gilchrest
     Gillibrand
     Gonzalez
     Gordon
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Hare
     Harman
     Hastings (FL)
     Herseth Sandlin
     Higgins
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Johnson (GA)
     Johnson, E. B.
     Jones (OH)
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick
     Kind
     Klein (FL)
     Kucinich
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     LaTourette
     Lee
     Levin
     Lewis (GA)
     Loebsack
     Lofgren, Zoe
     Lowey
     Lynch
     Mahoney (FL)
     Maloney (NY)
     Markey
     Matheson
     Matsui
     McCarthy (NY)
     McCollum (MN)
     McDermott
     McGovern
     McIntyre
     McNulty
     Meek (FL)
     Meeks (NY)
     Michaud
     Miller (NC)
     Miller, George
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Murphy (CT)
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Norton
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor
     Payne
     Perlmutter
     Pomeroy
     Price (NC)
     Rahall
     Rangel
     Regula
     Reyes
     Rodriguez
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schiff
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Shimkus
     Shuler
     Sires
     Skelton
     Smith (WA)
     Snyder
     Solis
     Space
     Spratt
     Stark
     Stupak
     Sutton
     Tauscher
     Thompson (CA)
     Thompson (MS)
     Tierney
     Towns
     Udall (CO)
     Udall (NM)
     Van Hollen
     Velazquez
     Visclosky
     Walz (MN)
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch (VT)
     Wexler
     Wilson (NM)
     Wilson (OH)
     Woolsey
     Wynn
     Yarmuth

                             NOT VOTING--17

     Berkley
     Conyers
     Cubin
     Davis, Jo Ann
     Faleomavaega
     Hastert
     Jindal
     McCrery
     Paul
     Pryce (OH)
     Radanovich
     Rohrabacher
     Slaughter
     Stearns
     Tancredo
     Wu
     Young (AK)


                  Announcement by the Acting Chairman

  The Acting CHAIRMAN (during the vote). Members are advised they have 
2 minutes remaining to record their votes.

[[Page 18886]]



                              {time}  2142

  So the amendment was rejected.
  The result of the vote was announced as above recorded.


                          PERSONAL EXPLANATION

  Mr. STEARNS. Mr. Chairman, on rollcall Nos. 625, 626, and 627 I was 
unavoidably detained. Had I been present, I would have voted ``aye.''
  The Acting CHAIRMAN. The question is on the committee amendment in 
the nature of a substitute, as amended.
  The committee amendment in the nature of a substitute, as amended, 
was agreed to.
  The Acting CHAIRMAN. Under the rule, the Committee rises.
  Accordingly, the Committee rose; and the Speaker pro tempore (Mr. 
McNulty) having assumed the chair, Ms. Baldwin, Acting Chairman of the 
Committee of the Whole House on the state of the Union, reported that 
that Committee, having had under consideration the bill (H.R. 1851) to 
reform the housing choice voucher program under section 8 of the United 
States Housing Act of 1937, pursuant to House Resolution 534, she 
reported the bill back to the House with an amendment adopted by the 
Committee of the Whole.
  The SPEAKER pro tempore. Under the rule, the previous question is 
ordered.
  Is a separate vote demanded on any amendment to the amendment 
reported from the Committee of the Whole? If not, the question is on 
the amendment.
  The amendment was agreed to.
  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.


               Motion to Recommit Offered by Mrs. Capito

  Mrs. CAPITO. Mr. Speaker, I offer a motion to recommit.
  The SPEAKER pro tempore. Is the gentlewoman opposed to the bill?
  Mrs. CAPITO. I am, Mr. Speaker, in its present form.
  The SPEAKER pro tempore. The Clerk will report the motion to 
recommit.
  The Clerk read as follows:

       Mrs. Capito moves to recommit the bill H.R. 1851 to the 
     Committee on Financial Services with instructions that the 
     Committee report the same back forthwith with the following 
     amendment:
       Page 107, after line 9, insert the following new section:

     SEC. 19. ACCEPTABLE IDENTIFICATION REQUIREMENT.

       (a) In General.--Rental housing assistance under section 
     8(o) of the United States Housing Act of 1937 may not be 
     provided on behalf of any individual or household unless the 
     individual provides, or, in the case of a household, all 
     adult members of the household provide, valid personal 
     identification in one of the following forms:
       (1) Social security card with photo identification card or 
     real id act identification.--
       (A) A social security card accompanied by a photo 
     identification card issued by the Federal Government or a 
     State Government; or
       (B) A driver's license or identification card issued by a 
     State in the case of a State that is in compliance with title 
     II of the REAL ID Act of 2005 (title II of division B of 
     Public Law 109-13; 49 U.S.C. 30301 note).
       (2) Passport.--A passport issued by the United States or a 
     foreign government.
       (3) USCIS photo identification card.--A photo 
     identification card issued by the Secretary of Homeland 
     Security (acting through the Director of the United States 
     Citizenship and Immigration Services).
       (b) Regulations.--The Secretary of Housing and Urban 
     Development shall, by regulation, require that each public 
     housing agency or other entity administering rental housing 
     assistance described in subsection (a) take such actions as 
     the Secretary considers necessary to ensure compliance with 
     the requirements of subsection (a).

  The SPEAKER pro tempore. The gentlewoman from West Virginia is 
recognized for 5 minutes.
  Mrs. CAPITO. Mr. Speaker, the intent of this motion to recommit is 
clear.
  Upon adoption of this motion to recommit, we will go right to the 
adoption of the bill in its entirety to include the important language 
that ensures illegal immigrants are not benefitting from rental 
assistance provided by the section 8 program that is funded by the 
dollars of hard-working Americans.
  The section 8 program has provided much needed rental assistance to 
low-income families who spend a high percentage of their income on 
housing costs since its creation in the 1970s. Today, there are 
approximately 2 million vouchers administered by the more than 2,500 
public housing authorities in this country. The success of this program 
is now dominating HUD's budget, but we are looking for clear reform to 
ensure the viability of this program.
  This motion to recommit helps strengthen the section 8 program by 
ensuring that illegal immigrants cannot receive assistance from this 
program. This measure will simply require all occupants of a housing 
unit, supported by section 8, to establish proof of their legal 
residency through the use of secure forms of identification.
  There are four options here: driver's license or REAL ID card; a 
foreign or U.S. passport; a citizens and immigration services photo ID 
card; or a Social Security card in conjunction with the State or 
Federal photo ID. Without this addition to this bill, illegal 
immigrants could utilize current loopholes to secure section 8 housing 
benefits.
  We absolutely cannot reward this illegal behavior with incentives for 
illegal immigrants to remain in the country in blatant violation of the 
law. By providing housing, we are simply encouraging the continuation 
of their illegal presence in our Nation. This is a form of back-door 
amnesty.
  There have been many stories across the country highlighting examples 
of benefits being granted to illegal immigrants. I believe, in 2006, in 
Denver, Colorado alone, there were an estimated 20,000 illegal 
immigrants holding FHA ensured loans. Each of these cases provides 
further incentives for illegal immigrants to remain in our Nation 
violating the law.
  Our Nation's immigration system is clearly broken. We must take this 
opportunity to strengthen a successful Federal program to ensure this 
benefit is only provided to legal residents.
  The American people work too hard for their tax dollars to have them 
spent on illegal immigrants. I urge a ``yes'' vote on this motion to 
recommit.
  Mr. Speaker, I yield back the balance of my time.
  Mr. FRANK of Massachusetts. Mr. Speaker, I rise in opposition to the 
motion to recommit.
  The SPEAKER pro tempore. The gentleman from Massachusetts is 
recognized for 5 minutes.
  Mr. FRANK of Massachusetts. Mr. Speaker, this bill has two parts.
  One part is to reiterate what is already the law. It is already the 
law that only people who are in the country legally may benefit from 
this. The second part is how to enforce it, and what it does is to 
continue an unfortunate tendency that goes counter to everything we 
have tried to do about privacy, of making the Social Security card a 
universal identifier, and there are real dangers in that.
  Members who have been concerned with privacy know that an 
unreasonable and unrestricted use of the Social Security card is a 
problem. Indeed, we have talked about legislation, bipartisan, to 
restrict the requirement that you give your Social Security number. But 
here is what this bill says. It does not change the law. It's already 
illegal for people who are not here legally to get these benefits.
  The gentleman mentioned 26,000 FHA loans in Colorado, zero section 
8s. I haven't heard the evidence. I would be glad to listen to it. I 
will invite people, if there is evidence that this is a problem with 
section 8, let's listen to it. But here's what you impose on the 
housing authorities. There is now a requirement that people show that 
they are here legally. But now in this legislation, if it's adopted, 
would narrow that.
  So here is what you would have to take to get someone who wanted to 
get into section 8:
  They could show you their passport. The number of really poor people 
carrying passports is less than you might imagine. Although, I don't 
know what they might imagine, so I take that back.
  Or a USCIS photo identification card. Well, if you are a citizen born 
in the United States, you don't have one.

[[Page 18887]]

  Or a driver's license. You may not have a driver's license.
  So if you are an 82 year-old who doesn't travel a lot to foreign 
countries and you are an American citizen, what are you going to show 
them? Your Social Security card. What this does is put more legal 
emphasis behind that.
  I would say to Members, Members can vote as they wish. But the next 
time people complain to you about privacy problems and about Social 
Security numbers floating around being misused, if you voted for this, 
say, yes, I helped, because that's what this does.
  The only thing this adds to American law is a requirement that most 
people trying to get section 8s will have to show their Social Security 
card, because a lot of them won't have driver's licenses, and they 
won't have passports. If they are American citizens, they won't have 
that card. The most common form of identification required will be the 
Social Security card.
  I have been working, the people in the Energy and Commerce Committee, 
the people in the Ways and Means Committee, we have all been working to 
restrict the idea that the Social Security card is an ID card. I 
thought that was fairly generally accepted, that we don't want the 
Social Security card to be the ID card.
  What's the Federal Government saying here? Because, yes, you can say, 
well, who wants to steal the identification of a poor person? You know, 
being up against a section 8, no big deal. But once the Federal 
Government, the minority has been consistently arguing, once we have 
stated the Social Security card is the most universally accepted, the 
Social Security card is considered to be the best form of 
identification, then what's the argument against every business in 
America doing it? How do you stop this from becoming that universal 
identifier?
  Members can cover themselves by voting for something that's already 
in the law. It's time to cover yourself anyway; it's kind of late.
  But understand what Members will be doing. They will be furthering 
the practice of using the Social Security card as an identifier. They 
will be weakening our efforts to undercut.
  Members may be unhappy to understand the implications of what they 
are doing. But I do not think it is wise for this House to continue a 
pattern of saying that the Social Security card will not just be a 
means of checking for Social Security but will become the universal 
identifier, that people will have to show it. Because if we, the 
Federal Government, say you have to show it, then how do you tell the 
hotel that they can't say it? How do you tell anybody else that they 
can't require the production of Social Security cards?
  The logical consequence of this will be a serious impediment to our 
efforts to protect privacy and to deal with identity theft. The 
unrestricted use of the Social Security card is a serious problem 
there, and this makes it worse.
  The SPEAKER pro tempore. The gentleman's time has expired.
  Without objection, the previous question is ordered on motion to 
recommit.
  There was no objection.
  The SPEAKER pro tempore. The question is on the motion to recommit.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.


                             Recorded Vote

  Mrs. CAPITO. Mr. Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. Pursuant to clause 9 of rule XX, the Chair 
will reduce to 5 minutes the minimum time for any electronic vote on 
the question of passage.
  The vote was taken by electronic device, and there were--ayes 233, 
noes 186, not voting 12, as follows:

                             [Roll No. 628]

                               AYES--233

     Aderholt
     Akin
     Alexander
     Altmire
     Bachmann
     Bachus
     Baker
     Barrett (SC)
     Barrow
     Bartlett (MD)
     Barton (TX)
     Bean
     Biggert
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono
     Boozman
     Boren
     Boswell
     Boustany
     Boyd (FL)
     Boyda (KS)
     Brady (TX)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Cantor
     Capito
     Carney
     Carter
     Castle
     Chabot
     Chandler
     Coble
     Cole (OK)
     Conaway
     Cramer
     Crenshaw
     Culberson
     Davis (KY)
     Davis, David
     Davis, Lincoln
     Davis, Tom
     Deal (GA)
     Dent
     Donnelly
     Doolittle
     Drake
     Dreier
     Duncan
     Ehlers
     Ellsworth
     Emerson
     English (PA)
     Everett
     Fallin
     Feeney
     Ferguson
     Flake
     Forbes
     Fortenberry
     Fossella
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Giffords
     Gilchrest
     Gillibrand
     Gillmor
     Gingrey
     Gohmert
     Goode
     Goodlatte
     Gordon
     Granger
     Graves
     Hall (NY)
     Hall (TX)
     Harman
     Hastings (WA)
     Hayes
     Heller
     Hensarling
     Herger
     Herseth Sandlin
     Hill
     Hobson
     Hodes
     Hoekstra
     Holden
     Hulshof
     Hunter
     Inglis (SC)
     Issa
     Johnson (IL)
     Johnson, Sam
     Jones (NC)
     Jordan
     Kanjorski
     Keller
     King (IA)
     King (NY)
     Kingston
     Kirk
     Klein (FL)
     Kline (MN)
     Knollenberg
     Kuhl (NY)
     LaHood
     Lamborn
     Lampson
     Latham
     LaTourette
     Lewis (CA)
     Lewis (KY)
     Linder
     Lipinski
     LoBiondo
     Lucas
     Lungren, Daniel E.
     Mack
     Mahoney (FL)
     Manzullo
     Marchant
     Marshall
     Matheson
     McCarthy (CA)
     McCaul (TX)
     McCotter
     McHenry
     McHugh
     McIntyre
     McKeon
     McMorris Rodgers
     McNerney
     Melancon
     Mica
     Miller (FL)
     Miller (MI)
     Miller, Gary
     Mitchell
     Moore (KS)
     Moran (KS)
     Murphy, Patrick
     Murphy, Tim
     Musgrave
     Myrick
     Neugebauer
     Nunes
     Pearce
     Pence
     Perlmutter
     Peterson (MN)
     Peterson (PA)
     Petri
     Pickering
     Pitts
     Platts
     Poe
     Porter
     Price (GA)
     Pryce (OH)
     Putnam
     Ramstad
     Regula
     Rehberg
     Reichert
     Renzi
     Reynolds
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Rohrabacher
     Roskam
     Ross
     Royce
     Ryan (WI)
     Saxton
     Schmidt
     Sensenbrenner
     Sessions
     Shadegg
     Shays
     Shimkus
     Shuler
     Shuster
     Simpson
     Skelton
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Souder
     Space
     Stearns
     Sullivan
     Tanner
     Taylor
     Terry
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Udall (CO)
     Upton
     Walberg
     Walden (OR)
     Walsh (NY)
     Wamp
     Weldon (FL)
     Weller
     Westmoreland
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (OH)
     Wilson (SC)
     Wolf
     Young (FL)

                               NOES--186

     Abercrombie
     Ackerman
     Allen
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Becerra
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boucher
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Butterfield
     Capps
     Capuano
     Cardoza
     Carnahan
     Carson
     Castor
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Cooper
     Costa
     Costello
     Courtney
     Crowley
     Cuellar
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (IL)
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Doggett
     Doyle
     Edwards
     Ellison
     Emanuel
     Engel
     Eshoo
     Etheridge
     Farr
     Fattah
     Filner
     Frank (MA)
     Gonzalez
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hare
     Hastings (FL)
     Higgins
     Hinchey
     Hinojosa
     Hirono
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Johnson (GA)
     Johnson, E. B.
     Jones (OH)
     Kagen
     Kaptur
     Kennedy
     Kildee
     Kilpatrick
     Kind
     Kucinich
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Lee
     Levin
     Lewis (GA)
     Loebsack
     Lofgren, Zoe
     Lowey
     Lynch
     Maloney (NY)
     Markey
     Matsui
     McCarthy (NY)
     McCollum (MN)
     McDermott
     McGovern
     McNulty
     Meek (FL)
     Meeks (NY)
     Michaud
     Miller (NC)
     Miller, George
     Mollohan
     Moore (WI)
     Moran (VA)
     Murphy (CT)
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor
     Payne
     Pomeroy
     Price (NC)
     Rahall
     Rangel
     Reyes
     Rodriguez
     Ros-Lehtinen
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sali
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schiff
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Sires
     Smith (WA)
     Snyder
     Solis
     Spratt
     Stark
     Stupak
     Sutton
     Tauscher
     Thompson (CA)
     Thompson (MS)
     Tierney
     Towns
     Udall (NM)
     Van Hollen
     Velazquez
     Visclosky
     Walz (MN)
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch (VT)
     Wexler
     Woolsey
     Wu
     Wynn
     Yarmuth

                             NOT VOTING--12

     Berkley
     Conyers
     Cubin
     Davis, Jo Ann
     Hastert
     Jindal
     McCrery
     Paul
     Radanovich
     Slaughter
     Tancredo
     Young (AK)

[[Page 18888]]




                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (during the vote). Members are advised that 
less than 2 minutes remain in the vote.

                              {time}  2212

  Mr. UDALL of Colorado, Mr. WILSON of Ohio, Mr. LINCOLN DAVIS of 
Tennessee, Mr. HOLDEN, and Mr. MOORE of Kansas changed their vote from 
``no'' to ``aye.''
  So the motion to recommit was agreed to.
  The result of the vote was announced as above recorded.
  Mr. FRANK of Massachusetts. Mr. Speaker, pursuant to the instructions 
of the House on the motion to recommit, I report H.R. 1851 back to the 
House with an amendment.
  The SPEAKER pro tempore. The Clerk will report the amendment.
  The Clerk read as follows:

       Amendment:
       Page 107, after line 9, insert the following new section:

     SEC. 19. ACCEPTABLE IDENTIFICATION REQUIREMENT.

       (a) In General.--Rental housing assistance under section 
     8(o) of the United States Housing Act of 1937 may not be 
     provided on behalf of any individual or household unless the 
     individual provides, or, in the case of a household, all 
     adult members of the household provide, valid personal 
     identification in one of the following forms:
       (1) Social security card with photo identification card or 
     real id act identification.--
       (A) A social security card accompanied by a photo 
     identification card issued by the Federal Government or a 
     State Government; or
       (B) A driver's license or identification card issued by a 
     State in the case of a State that is in compliance with title 
     II of the REAL ID Act of 2005 (title II of division B of 
     Public Law 109-13; 49 U.S.C. 30301 note).
       (2) Passport.--A passport issued by the United States or a 
     foreign government.
       (3) USCIS photo identification card.--A photo 
     identification card issued by the Secretary of Homeland 
     Security (acting through the Director of the United States 
     Citizenship and Immigration Services).
       (b) Regulations.--The Secretary of Housing and Urban 
     Development shall, by regulation, require that each public 
     housing agency or other entity administering rental housing 
     assistance described in subsection (a) take such actions as 
     the Secretary considers necessary to ensure compliance with 
     the requirements of subsection (a).

  Mr. FRANK of Massachusetts (during the reading). Mr. Speaker, I ask 
unanimous consent that the amendment be considered as read and printed 
in the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Massachusetts?
  There was no objection.
  The SPEAKER pro tempore. The question is on the amendment.
  The amendment was agreed to.
  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the ayes appeared to have it.
  Mr. FRANK of Massachusetts. Mr. Speaker, on that I demand the yeas 
and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. This will be a 5-minute vote.
  The vote was taken by electronic device, and there were--yeas 333, 
nays 83, not voting 15, as follows:

                             [Roll No. 629]

                               YEAS--333

     Abercrombie
     Ackerman
     Aderholt
     Alexander
     Allen
     Altmire
     Andrews
     Arcuri
     Baca
     Bachmann
     Bachus
     Baird
     Baker
     Baldwin
     Barrow
     Barton (TX)
     Bean
     Becerra
     Berman
     Berry
     Biggert
     Bilbray
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Bishop (UT)
     Blumenauer
     Bonner
     Boozman
     Boren
     Boswell
     Boucher
     Boustany
     Boyd (FL)
     Boyda (KS)
     Brady (PA)
     Braley (IA)
     Brown (SC)
     Brown, Corrine
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Butterfield
     Camp (MI)
     Capito
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carson
     Castle
     Castor
     Chandler
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Cole (OK)
     Cooper
     Costa
     Costello
     Courtney
     Cramer
     Crenshaw
     Crowley
     Cuellar
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis (KY)
     Davis, Lincoln
     Davis, Tom
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Doggett
     Donnelly
     Doyle
     Drake
     Edwards
     Ehlers
     Ellison
     Ellsworth
     Emanuel
     Emerson
     Engel
     English (PA)
     Eshoo
     Etheridge
     Everett
     Fallin
     Farr
     Fattah
     Ferguson
     Filner
     Forbes
     Fortenberry
     Fossella
     Frank (MA)
     Frelinghuysen
     Gerlach
     Giffords
     Gilchrest
     Gillibrand
     Gillmor
     Gonzalez
     Gordon
     Granger
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Hall (TX)
     Hare
     Harman
     Hastings (FL)
     Hayes
     Heller
     Herseth Sandlin
     Higgins
     Hill
     Hinchey
     Hinojosa
     Hirono
     Hobson
     Hodes
     Holden
     Holt
     Honda
     Hoyer
     Hulshof
     Hunter
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Johnson (GA)
     Johnson, E. B.
     Jones (NC)
     Jones (OH)
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick
     Kind
     King (NY)
     Kirk
     Klein (FL)
     Knollenberg
     Kucinich
     Kuhl (NY)
     LaHood
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Lee
     Levin
     Lewis (GA)
     Lewis (KY)
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lucas
     Lungren, Daniel E.
     Lynch
     Mahoney (FL)
     Maloney (NY)
     Marchant
     Markey
     Marshall
     Matheson
     Matsui
     McCarthy (CA)
     McCarthy (NY)
     McCaul (TX)
     McCollum (MN)
     McCotter
     McDermott
     McGovern
     McHugh
     McIntyre
     McMorris Rodgers
     McNerney
     McNulty
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (MI)
     Miller (NC)
     Miller, Gary
     Miller, George
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (KS)
     Moran (VA)
     Murphy (CT)
     Murphy, Tim
     Murtha
     Myrick
     Nadler
     Napolitano
     Neal (MA)
     Nunes
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor
     Payne
     Pearce
     Perlmutter
     Peterson (MN)
     Peterson (PA)
     Pickering
     Platts
     Pomeroy
     Porter
     Price (NC)
     Pryce (OH)
     Rahall
     Ramstad
     Rangel
     Regula
     Rehberg
     Reichert
     Renzi
     Reyes
     Reynolds
     Rodriguez
     Rogers (AL)
     Rogers (KY)
     Rogers (MI)
     Ros-Lehtinen
     Roskam
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Loretta
     Sarbanes
     Saxton
     Schakowsky
     Schiff
     Schmidt
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shays
     Shea-Porter
     Sherman
     Shimkus
     Shuler
     Simpson
     Sires
     Skelton
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Solis
     Souder
     Space
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Tauscher
     Taylor
     Terry
     Thompson (CA)
     Thompson (MS)
     Tiahrt
     Tiberi
     Tierney
     Towns
     Turner
     Udall (CO)
     Udall (NM)
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Walden (OR)
     Walsh (NY)
     Walz (MN)
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch (VT)
     Weller
     Wexler
     Whitfield
     Wilson (NM)
     Wilson (OH)
     Wolf
     Woolsey
     Wu
     Wynn
     Yarmuth
     Young (FL)

                                NAYS--83

     Akin
     Barrett (SC)
     Bartlett (MD)
     Blackburn
     Blunt
     Boehner
     Bono
     Brady (TX)
     Burton (IN)
     Buyer
     Calvert
     Campbell (CA)
     Cannon
     Cantor
     Carter
     Chabot
     Coble
     Conaway
     Culberson
     Davis, David
     Deal (GA)
     Doolittle
     Dreier
     Duncan
     Feeney
     Flake
     Foxx
     Franks (AZ)
     Gallegly
     Garrett (NJ)
     Gingrey
     Gohmert
     Goode
     Goodlatte
     Graves
     Hastings (WA)
     Hensarling
     Herger
     Hoekstra
     Inglis (SC)
     Issa
     Johnson (IL)
     Johnson, Sam
     Jordan
     Keller
     King (IA)
     Kingston
     Kline (MN)
     Lamborn
     Lewis (CA)
     Linder
     Mack
     Manzullo
     McHenry
     McKeon
     Mica
     Miller (FL)
     Murphy, Patrick
     Musgrave
     Neugebauer
     Pence
     Petri
     Pitts
     Poe
     Price (GA)
     Putnam
     Rohrabacher
     Royce
     Ryan (WI)
     Sali
     Schwartz
     Sensenbrenner
     Sessions
     Shadegg
     Stearns
     Sullivan
     Thornberry
     Walberg
     Wamp
     Weldon (FL)
     Westmoreland
     Wicker
     Wilson (SC)

                             NOT VOTING--15

     Berkley
     Conyers
     Cubin
     Davis, Jo Ann
     Hastert
     Hooley
     Jindal
     McCrery
     Paul
     Radanovich
     Sanchez, Linda T.
     Shuster
     Slaughter
     Tancredo
     Young (AK)


                Announcement by the Speaker Pro Tempore

  The SPEAKER pro tempore (during the vote). Members are advised that 
there are 2 minutes remaining to vote on passage of the bill.

                              {time}  2221

  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.

[[Page 18889]]



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