[Congressional Record (Bound Edition), Volume 154 (2008), Part 10]
[House]
[Pages 14460-14462]
[From the U.S. Government Publishing Office, www.gpo.gov]




                ASSET MANAGEMENT IMPROVEMENT ACT OF 2008

  Mr. FRANK of Massachusetts. Mr. Speaker, I move to suspend the rules 
and pass the bill (H.R. 6216) to improve the Operating Fund for public 
housing of the Department of Housing and Urban Development, and for 
other purposes, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 6216

       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 ``Asset Management Improvement 
     Act of 2008''.

     SEC. 2. REVISIONS TO ASSET MANAGEMENT RULES AND RELATED FEES.

       (a) Management and Related Fees.--The Secretary of Housing 
     and Urban Development shall not impose any restriction or 
     limitation on the amount of management and related fees with 
     respect to a public housing project if the fee is determined 
     to be reasonable by the public housing agency, unless such 
     restriction or limitation imposed by the Secretary on such 
     fees--
       (1) is determined pursuant to a negotiated rulemaking which 
     is convened by the Secretary no earlier than April 1, 2009, 
     and in accordance with subchapter III of chapter 5 of title 
     5, United States Code, with representatives from interested 
     parties; and
       (2) is effective only on or after January 1, 2011.

     The Secretary may not consider a public housing agency as 
     failing to comply with the asset management requirements of 
     subpart H of part 990 of title 24 of the Code of Federal 
     Regulations, or any successor or amended regulation 
     containing asset management requirements, or determine that 
     an agency fails to comply with such requirements, because of 
     or as a result of the agency determining its fees in 
     accordance with this subsection.
       (b) Increase of Threshold for Exemption From Asset 
     Management Requirements.--
       (1) Increase.--Any public housing agency that owns or 
     operates fewer than 500 public housing units under title I of 
     the United States Housing Act of 1937 may elect to be exempt 
     from any asset management requirement imposed by the 
     Secretary of Housing and Urban Development.
       (2) Determination of operating fund allocation.--If a 
     public housing agency elects pursuant to paragraph (1) to be 
     exempt from asset management requirements, the agency may, at 
     its option, retain the same number of separate public housing 
     projects, for purposes of determining its operating fund 
     allocation, as the agency had identified and the Secretary of 
     Housing and Urban Development had approved before the 
     agency's election to be so exempt.

     SEC. 3. PROHIBITION ON RESTRICTION OF FUNGIBILITY OF CAPITAL 
                   FUND AMOUNTS.

       The Secretary of Housing and Urban Development shall not 
     impose any requirement, regulation, or guideline relating to 
     asset management that restricts or limits in any way the use 
     by public housing agencies of amounts for Capital Fund 
     assistance under section 9(d) of such Act, pursuant to 
     paragraph (1) or (2) of section 9(g) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437g(g)), for costs of any 
     central office of a public housing agency.

     SEC. 4. TENANT PARTICIPATION.

       (a) Rule of Construction.--Neither the requirements of this 
     Act, nor any other requirement, regulation, guideline, or 
     other policy or action of the Department of Housing and Urban 
     Development relating to public housing asset management may 
     be construed to repeal or waive any provision of part 964 of 
     title 24 of the Code of Federal Regulations, regarding tenant 
     participation and tenant opportunities in public housing. The 
     Secretary of Housing and Urban Development shall ensure that 
     public housing agencies encourage the reasonable efforts of 
     resident tenant organizations to represent their members or 
     the reasonable efforts of tenants to organize.
       (b) PHAs in Receivership.--In the case of any public 
     housing agency in receivership, the Secretary of Housing and 
     Urban Development or any receiver may not abrogate, waive, 
     repeal, or modify any provision of part 964 of title 24 of 
     the Code of Federal Regulations or any provision of a 
     formalized housing agreement entered into pursuant to such 
     part 964 (including pursuant to section 964.11, 964.14, 
     964.18(a)(6), or 964.135 of such part) before the 
     commencement of such receivership by a resident or tenant 
     organization and the public housing agency.
       (c) Guidance.--Guidance issued by the Secretary of Housing 
     and Urban Development shall encourage participation by 
     residents in the implementation of asset management and the 
     development of local policies for such purposes.

     SEC. 5. INELIGIBILITY OF ILLEGAL IMMIGRANTS FOR ASSISTANCE.

       Immigrants who are not lawfully present in the United 
     States shall be ineligible for financial assistance under 
     this Act, as provided and defined by section 214 of the 
     Housing and Community Development Act of 1980 (42 U.S.C. 
     1436a). Nothing in this Act shall be construed to alter the 
     restrictions or definitions in such section 214.

     SEC. 6. ADMINISTRATIVE PROVISIONS.

       (a) Prohibition of Management Fees for Agreements 
     Prohibiting or Requiring Registration of Legal Firearms.--The 
     Secretary of Housing and Urban Development shall not accept 
     as reasonable any management or related fees for enforcing 
     any provision of a dwelling lease agreement or other similar 
     agreement that requires the registration of or prohibits the 
     possession of any firearm that is possessed by an individual 
     for his or her personal protection or for sport the 
     possession of which is not prohibited, or the registration of 
     which is not required, by existing law.
       (b) Termination of Tenancy and Assistance for Illegal Use 
     of Firearm in Federally Assisted Housing.--Section 577 of the 
     Quality Housing and Work Responsibility Act of 1998 (42 
     U.S.C. 13662) is amended--
       (1) in the section heading--
       (A) by striking ``AND'' the second place it appears and 
     inserting a comma; and
       (B) by inserting ``, AND FIREARMS USERS'' after 
     ``ABUSERS''; and
       (2) in subsection (a)--
       (A) in paragraph (1), by striking ``or'' at the end;
       (B) in paragraph (2), by striking the period at the end and 
     inserting ``; or''; and
       (C) by adding at the end the following new paragraph:
       ``(3) who the public housing agency or owner determines is 
     illegally using a firearm, or whose illegal use of a firearm 
     is determined by the public housing authority or owner to 
     interfere with the health, safety, or right to peaceful 
     enjoyment of the premises by other residents.''.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Massachusetts (Mr. Frank) and the gentlewoman from West Virginia (Mrs. 
Capito) each will control 20 minutes.
  The Chair recognizes the gentleman from Massachusetts.
  Mr. FRANK of Massachusetts. Mr. Speaker, this is a bill that came to 
the House earlier under a rule and had proceeded without any 
significant controversy to the point of a recommital motion. The 
recommital motion offered was one this bill deals with, the 
relationship between smaller public housing authorities in particular, 
and HUD, and tries to give them more flexibility. It's widely supported 
and requested of us, indeed, by many of the housing authorities that 
are in our districts.
  The recommital motion involved the right to own weapons and said that 
no authority could restrict the right to own weapons beyond what State 
or city applicable law provided. That was somewhat controversial and 
led to a decision to withdraw the bill.
  It was then back in committee, and in committee we adopted the 
substance--we in fact adopted the recommital motion. There were a 
couple of refinements that were broadly agreed to, making it clear that 
nothing would protect anybody who illegally used a weapon. And that was 
broadly supported.
  We also made a couple of other small changes. Our colleague from 
Florida (Mr. Meek) noted that he has a housing authority in his 
district that is in receivership. He wanted to make it explicit that 
the rights the tenants have in general do not get lost in receivership. 
That was unanimously agreed to.
  We also adopted language that is responsive to the will of the House, 
making it clear that people who are in this country illegally would not 
be able to benefit under this program.
  With that, we are back to where we were originally. The bill had not 
been controversial, although it had been worked out in committee, and I 
appreciate the cooperation of my colleague from West Virginia, the 
gentlewoman, who was the ranking member of the Housing Subcommittee.
  So we have now a bill that we believe represents the will of the 
House. There were some members, particularly on our side, who weren't 
happy with the recommital motion, but it was clear what the will of the 
body would be. We did not feel we wanted to interfere with an important 
piece of legislation.
  Among those who have asked us to do this is the National Association 
of

[[Page 14461]]

Housing and Redevelopment Officials, the Council of Large Public 
Housing Authorities, and the Public Housing Authorities Directors 
Association.
  This also, by the way, allows capital funds to be used for operating 
expenses in the appropriate circumstances, which we took from a 
previously done appropriations bill.
  So it is a bill that improves the management of public housing. It 
incorporates the concerns that have been raised. I hope it is adopted.
  I reserve the balance of my time.
  Mrs. CAPITO. Mr. Speaker, I rise today in support of H.R. 6216, the 
Asset Management Improvement Act, authored by the gentleman from New 
Jersey (Mr. Sires). There is general agreement that we need to work 
with our public housing authorities to improve and refine their asset 
management policies. The Quality Housing and Work Responsibility Act, 
which was passed by Congress in 1998, included a requirement for a 
negotiated rulemaking to develop a new public housing operating fund 
formula.
  Rulemaking concluded in 2004, after a 3-year, $4 million Operating 
Cost Study was conducted, and in 2005, HUD issued the Public Housing 
Operating Fund Final Rule. HUD has agreed to delay the implementation, 
in an effort to give PHAs additional time to comply with the negotiated 
rule. This legislation will make further changes to that rule. It is my 
hope that all parties can continue to work together to make further 
improvements.
  The base text of the legislation requires HUD and public housing 
agencies to negotiate, after April 1, 2009, reasonable property and 
asset management fees with interested stakeholders. The fees would then 
be implemented January 1, 2011.
  The legislation increases, as the chairman said, the number of units 
public housing agencies can manage to 500, from 250, before they are 
required to manage their housing portfolios by the new asset management 
system. It also states that the bill's provisions, including those 
relating to public housing asset management, do not affect in any way 
current law regarding tenant participation and tenant opportunities in 
public housing.
  As the chairman noted, we have been here before considering similar 
legislation. Unfortunately, that legislation was pulled from 
consideration during the motion to recommit that would have preserved 
the right of law-abiding citizens to own a firearm. I am pleased the 
authors of this new version included this important provision.
  In addition, the authors have included the text of the manager's 
amendment, as well as the Meek amendment, in this new draft. The 
manager's amendment included language blocking illegal immigrants from 
eligibility and ensuring that certain agencies that apply to HUD for 
stop-loss do not have their applications rejected on the basis that the 
management and related fees they establish pursuant to the bill's 
provisions are not reasonable as defined by HUD. The Meek amendment 
provides that the tenant organization protections set forth in HUD's 
regulations apply to public housing agencies that are placed in 
receivership by HUD.
  I would like to thank Mr. Sires for offering this legislation.
  I reserve the balance of my time.
  Mr. FRANK of Massachusetts. Mr. Speaker, the author of the bill, as 
the gentlewoman has noted, is our colleague, Mr. Sires from New Jersey, 
who represents a district in northern New Jersey where public housing 
is an important part of the makeup of the area. He was, at the time of 
this, a member of the Financial Services Committee, and a valuable 
member, and his interest in housing matters obviously continues. So we 
were very glad to be able to follow his lead.
  I yield 5 minutes to the gentleman from New Jersey (Mr. Sires).
  Mr. SIRES. Thank you, Mr. Chairman.
  I am very happy to be here today discussing my bill to help public 
housing authorities across the Nation. Let me start by thanking 
Chairman Barney Frank for his support on this bill and his leadership 
in the Financial Service Committee. Without his dedication to this 
issue, we would not be considering this bill today.
  Let me start by explaining why I introduced this bill. Shortly after 
I was sworn in, I received a letter from the Jersey City Housing 
Authority in my district. They told me they had to lay off 34 employees 
because of asset management. When I looked into this, I learned that 
Jersey City was not unique. Over 800 public housing authorities had 
their operating budgets cut because of the way asset management was 
implemented by the U.S. Department of Housing and Urban Development. At 
the same time, the Department limited the amount of flexibility given 
to public housing authorities to make ends meet. I knew something had 
to be done.
  With the support of Chairman Frank, Congressman Meek, and others, I 
introduced H.R. 6216, the Asset Management Improvement Act of 2008. You 
will note that the title indicates that the bill improves asset 
management; it does not put an end to asset management. That is because 
I feel strongly that the goals of asset management are worthwhile.
  By making public housing authorities run more efficiently, asset 
management has the potential to improve the lives of all those who live 
in public housing in this country.
  My bill simply makes four improvements to the asset management rule 
and it alters the management of public housing in other aspects. First, 
it requires new negotiations to establish a reasonable management fee 
and allows public housing authorities to revert back to the old funding 
mechanism until final implementation of asset management on January 1, 
2011. Congress has previously acted to require this, but HUD failed to 
act. This bill sets HUD straight.
  Second, my bill reaffirms current law by allowing public housing 
authorities to transfer funds between their operating fund and their 
capital fund. This provision prevents the Department from prohibiting 
such transfers. This flexibility is vital to agencies, particularly 
since the housing program is underfunded. Housing authorities know best 
where they need funding, not Washington.
  There is wide agreement on this provision. In fact, this provision 
was included in the Consolidated Appropriations Act for Fiscal Year 
2008. That provision, however, is only valid for 1 year. My bill will 
make this change permanent.
  Third, my bill decreases the exemption threshold from small to 
medium-sized public housing authorities. The Department recognized that 
small authorities with fewer than 250 units of housing would not 
benefit from the benefits of asset management, and so they are 
exempted. My bill simply raises this threshold to 500 units.
  Again, there is little disagreement on raising the threshold. The 
Consolidated Appropriations Act for Fiscal Year 2008 raised the 
exemption threshold to 400. My bill goes a little further; to 500 
units. The impact of this change would only affect 110 public housing 
authorities, some of whom may not opt out of asset management because 
they think it makes good sense. Even with this change, over two-thirds 
of all public housing units will still be covered by the asset 
management rules.
  Third, my bill restates current law in terms of tenant participation. 
It simply says tenants should be allowed to participate in the decision 
affecting their homes. It prohibits the Department from altering tenant 
participation rights and it encourages public housing authorities to 
include tenants in discussions about asset management that directly 
affects their home.
  The bill alters public housing management in a few other ways. First, 
it restates current law that undocumented immigrants are ineligible for 
public housing assistance. It includes language that Congresswoman 
Bachmann brought to our attention on gun rules. In fact, we have 
incorporated her language into the bill.
  Public housing authorities cannot require gun registration or 
prohibit gun ownership if local laws do not restrict ownership. Public 
housing authorities,

[[Page 14462]]

as a whole, feel this is a reasonable requirement. Additionally, this 
bill allows public housing authorities to evict tenants who use an 
illegal weapon while on public housing property. This text was added by 
Representatives Maloney and Boren, recognizing that tenants do not have 
a right to use illegal weapons in public housing.
  Together, these changes make several improvements to the management 
of public housing. It will improve the lives of all the residents.

                              {time}  1330

  The SPEAKER pro tempore. The time of the gentleman from New Jersey 
has expired.
  Mr. FRANK of Massachusetts. I yield the gentleman an additional 
minute.
  Mr. SIRES. Let me end with this: My office has taken calls from 
public housing authorities across the Nation. Small, large, urban and 
rural housing authorities support this bill, and I hope that Members 
will support this bill. Please make a difference for public housing 
residents and public housing authorities by easing their regulatory 
burden. Vote ``yes'' on H.R. 6216.
  Mrs. CAPITO. Mr. Speaker, I yield myself such time as I may consume.
  Mr. Speaker, I thank the gentleman from New Jersey and certainly 
support his bill, but I think it is appropriate when talking about 
trying to stretch our public housing dollars as much as we can to 
provide housing and safety and cover and a sense of community to many 
families, I think it brings to light what many families are thinking 
about right now, and that is the high price of gasoline, how are they 
getting to where they need to go, to get to a job, to pick up their 
children at school, to go to church, to go to the grocery store, all 
the things of daily living.
  Many of our public housing situations don't have access to bus routes 
or any kind of mass transportation, so I think it is incumbent upon 
this Congress to address this very difficult issue, and I have put 
forward, as have many of my colleagues on both sides of the aisle, ways 
to address this, whether it is more drilling, whether it is coal-to-
liquid, whether it is more renewables. But it is certainly not standing 
still. And as we try to move our dollars into the public housing arena 
to provide shelter and homes for many, many Americans across this 
country, I think it is important at the same time when people are 
figuring out how they are going to pay their rent, they realize how are 
they going to pay for their gas, how are they going to pay for their 
food.
  So I would encourage as we look at housing issues today, we also look 
at the very important issue of energy in our homes and with our 
families.
  Mr. Speaker, I yield back the balance of my time.
  Mr. FRANK of Massachusetts. I am about to close, Mr. Speaker. I did 
want to reassure my colleague from West Virginia, and I appreciate that 
she is doing her part by making clear that gasoline should be cheaper, 
it is a very important issue when we talk about financing public 
housing, I want to reassure her that nothing in this bill prohibits 
drilling for oil on public housing property. I know there is a lot of 
concern on the Republican side about that, so they should rest assured 
that they are okay.


                             General Leave

  Mr. FRANK of Massachusetts. Mr. Speaker, I ask unanimous consent that 
all Members may have 5 legislative days within which to revise and 
extend their remarks on this legislation and to insert extraneous 
material thereon, following the precedent of the gentlewoman from West 
Virginia, who has already inserted very extraneous material in the 
debate on this bill.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Massachusetts?
  There was no objection.
  Mr. FRANK of Massachusetts. Mr. Speaker, I yield back the balance of 
my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Massachusetts (Mr. Frank) that the House suspend the 
rules and pass the bill, H.R. 6216, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

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