[House Report 105-76]
[From the U.S. Government Publishing Office]
105th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 105-76
_______________________________________________________________________
HOUSING OPPORTUNITY AND RESPONSIBILITY ACT OF 1997
_______
April 25, 1997.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______________________________________________________________________
Mr. Leach, from the Committee on Banking and Financial Services,
submitted the following
R E P O R T
together with
ADDITIONAL, MINORITY, AND DISSENTING VIEWS
[To accompany H.R. 2]
The Committee on Banking and Financial Services, to whom
was referred the bill (H.R. 2) to repeal the United States
Housing Act of 1937, deregulate the public housing program and
the program for rental housing assistance for low-income
families, and increase community control over such programs,
and for other purposes, having considered the same, report
favorably thereon with an amendment and recommend that the bill
as amended do pass.
The amendment is as follows:
Strike out all after the enacting clause and insert in lieu
thereof the following:
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Housing Opportunity
and Responsibility Act of 1997''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
Sec. 2. Declaration of policy to renew American neighborhoods.
TITLE I--GENERAL PROVISIONS
Sec. 101. Statement of purpose.
Sec. 102. Definitions.
Sec. 103. Organization of public housing agencies.
Sec. 104. Determination of adjusted income and median income.
Sec. 105. Community work and family self-sufficiency requirements.
Sec. 106. Local housing management plans.
Sec. 107. Review of plans.
Sec. 108. Reporting requirements.
Sec. 109. Pet ownership.
Sec. 110. Administrative grievance procedure.
Sec. 111. Headquarters reserve fund.
Sec. 112. Labor standards.
Sec. 113. Nondiscrimination.
Sec. 114. Prohibition on use of funds.
Sec. 115. Inapplicability to Indian housing.
Sec. 116. Regulations.
TITLE II--PUBLIC HOUSING
Subtitle A--Block Grants
Sec. 201. Block grant contracts.
Sec. 202. Grant authority, amount, and eligibility.
Sec. 203. Eligible and required activities.
Sec. 204. Determination of grant allocation.
Sec. 205. Sanctions for improper use of amounts.
Subtitle B--Admissions and Occupancy Requirements
Sec. 221. Low-income housing requirement.
Sec. 222. Family eligibility.
Sec. 223. Preferences for occupancy.
Sec. 224. Admission procedures.
Sec. 225. Family choice of rental payment.
Sec. 226. Lease requirements.
Sec. 227. Designated housing for elderly and disabled families.
Subtitle C--Management
Sec. 231. Management procedures.
Sec. 232. Housing quality requirements.
Sec. 233. Employment of residents.
Sec. 234. Resident councils and resident management corporations.
Sec. 235. Management by resident management corporation.
Sec. 236. Transfer of management of certain housing to independent
manager at request of residents.
Sec. 237. Resident opportunity program.
Subtitle D--Homeownership
Sec. 251. Resident homeownership programs.
Subtitle E--Disposition, Demolition, and Revitalization of Developments
Sec. 261. Requirements for demolition and disposition of developments.
Sec. 262. Demolition, site revitalization, replacement housing, and
choice-based assistance grants for developments.
Sec. 263. Voluntary voucher system for public housing.
Subtitle F--Mixed-Finance Public Housing
Sec. 271. Authority.
Sec. 272. Mixed-finance housing developments.
Sec. 273. Mixed-finance housing plan.
Sec. 274. Rent levels for housing financed with low-income housing tax
credit.
Sec. 275. Carry-over of assistance for replaced housing.
Subtitle G--General Provisions
Sec. 281. Payment of non-Federal share.
Sec. 282. Authorization of appropriations for block grants.
Sec. 283. Funding for operation safe home.
Sec. 284. Funding for relocation of victims of domestic violence.
TITLE III--CHOICE-BASED RENTAL HOUSING AND HOMEOWNERSHIP ASSISTANCE FOR
LOW-INCOME FAMILIES
Subtitle A--Allocation
Sec. 301. Authority to provide housing assistance amounts.
Sec. 302. Contracts with PHA's.
Sec. 303. Eligibility of PHA's for assistance amounts.
Sec. 304. Allocation of amounts.
Sec. 305. Administrative fees.
Sec. 306. Authorizations of appropriations.
Sec. 307. Conversion of section 8 assistance.
Sec. 308. Recapture and reuse of annual contract project reserves under
choice-based housing assistance and section 8 tenant-based assistance
programs.
Subtitle B--Choice-Based Housing Assistance for Eligible Families
Sec. 321. Eligible families and preferences for assistance.
Sec. 322. Resident contribution.
Sec. 323. Rental indicators.
Sec. 324. Lease terms.
Sec. 325. Termination of tenancy.
Sec. 326. Eligible owners.
Sec. 327. Selection of dwelling units.
Sec. 328. Eligible dwelling units.
Sec. 329. Homeownership option.
Sec. 330. Assistance for rental of manufactured homes.
Subtitle C--Payment of Housing Assistance on Behalf of Assisted
Families
Sec. 351. Housing assistance payments contracts.
Sec. 352. Amount of monthly assistance payment.
Sec. 353. Payment standards.
Sec. 354. Reasonable rents.
Sec. 355. Prohibition of assistance for vacant rental units.
Subtitle D--General and Miscellaneous Provisions
Sec. 371. Definitions.
Sec. 372. Rental assistance fraud recoveries.
Sec. 373. Study regarding geographic concentration of assisted
families.
Sec. 374. Study regarding rental assistance.
TITLE IV--HOME RULE FLEXIBLE GRANT OPTION
Sec. 401. Purpose.
Sec. 402. Flexible grant program.
Sec. 403. Covered housing assistance.
Sec. 404. Program requirements.
Sec. 405. Applicability of certain provisions.
Sec. 406. Application.
Sec. 407. Training.
Sec. 408. Accountability.
Sec. 409. Definitions.
TITLE V--ACCOUNTABILITY AND OVERSIGHT OF PUBLIC HOUSING AGENCIES
Subtitle A--Study of Alternative Methods for Evaluating Public Housing
Agencies
Sec. 501. In general.
Sec. 502. Purposes.
Sec. 503. Evaluation of various performance evaluation systems.
Sec. 504. Consultation.
Sec. 505. Contract to conduct study.
Sec. 506. Report.
Sec. 507. Funding.
Sec. 508. Effective date.
Subtitle B--Housing Evaluation and Accreditation Board
Sec. 521. Establishment.
Sec. 522. Membership.
Sec. 523. Functions.
Sec. 524. Powers.
Sec. 525. Fees.
Sec. 526. GAO audit.
Subtitle C--Interim Applicability of Public Housing Management
Assessment Program
Sec. 531. Interim applicability.
Sec. 532. Management assessment indicators.
Sec. 533. Designation of PHA's.
Sec. 534. On-site inspection of troubled PHA's.
Sec. 535. Administration.
Subtitle D--Accountability and Oversight Standards and Procedures
Sec. 541. Audits.
Sec. 542. Performance agreements for authorities at risk of becoming
troubled.
Sec. 543. Performance agreements and CDBG sanctions for troubled PHA's.
Sec. 544. Option to demand conveyance of title to or possession of
public housing.
Sec. 545. Removal of ineffective PHA's.
Sec. 546. Mandatory takeover of chronically troubled PHA's.
Sec. 547. Treatment of troubled PHA's.
Sec. 548. Maintenance of records.
Sec. 549. Annual reports regarding troubled PHA's.
Sec. 550. Applicability to resident management corporations.
Sec. 551. Advisory council for Housing Authority of New Orleans.
TITLE VI--REPEALS AND RELATED AMENDMENTS
Subtitle A--Repeals, Effective Date, and Savings Provisions
Sec. 601. Effective date and repeal of United States Housing Act of
1937.
Sec. 602. Other repeals.
Subtitle B--Other Provisions Relating to Public Housing and Rental
Assistance Programs
Sec. 621. Allocation of elderly housing amounts.
Sec. 622. Pet ownership.
Sec. 623. Review of drug elimination program contracts.
Sec. 624. Amendments to Public and Assisted Housing Drug Elimination
Act of 1990.
Subtitle C--Limitations Relating to Occupancy in Federally Assisted
Housing
Sec. 641. Screening of applicants.
Sec. 642. Termination of tenancy and assistance for illegal drug users
and alcohol abusers.
Sec. 643. Lease requirements.
Sec. 644. Availability of criminal records for tenant screening and
eviction.
Sec. 645. Definitions.
TITLE VII--AFFORDABLE HOUSING AND MISCELLANEOUS PROVISIONS
Sec. 701. Rural housing assistance.
Sec. 702. Treatment of occupancy standards.
Sec. 703. Implementation of plan.
Sec. 704. Income eligibility for HOME and CDBG programs.
Sec. 705. Prohibition of use of CDBG grants for employment relocation
activities.
Sec. 706. Use of American products.
Sec. 707. Consultation with affected areas in settlement of litigation.
Sec. 708. Use of assisted housing by aliens.
Sec. 709. Effective date.
SEC. 2. DECLARATION OF POLICY TO RENEW AMERICAN NEIGHBORHOODS.
The Congress hereby declares that--
(1) the Federal Government has a responsibility to promote
the general welfare of the Nation--
(A) by using Federal resources to aid families and
individuals seeking affordable homes that are safe,
clean, and healthy and, in particular, assisting
responsible, deserving citizens who cannot provide
fully for themselves because of temporary circumstances
or factors beyond their control;
(B) by working to ensure a thriving national economy
and a strong private housing market; and
(C) by developing effective partnerships among the
Federal Government, State and local governments, and
private entities that allow government to accept
responsibility for fostering the development of a
healthy marketplace and allow families to prosper
without government involvement in their day-to-day
activities;
(2) the Federal Government cannot through its direct action
alone provide for the housing of every American citizen, or
even a majority of its citizens, but it is the responsibility
of the Government to promote and protect the independent and
collective actions of private citizens to develop housing and
strengthen their own neighborhoods;
(3) the Federal Government should act where there is a
serious need that private citizens or groups cannot or are not
addressing responsibly;
(4) housing is a fundamental and necessary component of
bringing true opportunity to people and communities in need,
but providing physical structures to house low-income families
will not by itself pull generations up from poverty;
(5) it is a goal of our Nation that all citizens have decent
and affordable housing; and
(6) our Nation should promote the goal of providing decent
and affordable housing for all citizens through the efforts and
encouragement of Federal, State, and local governments, and by
the independent and collective actions of private citizens,
organizations, and the private sector.
TITLE I--GENERAL PROVISIONS
SEC. 101. STATEMENT OF PURPOSE.
The purpose of this Act is to promote safe, clean, and healthy
housing that is affordable to low-income families, and thereby
contribute to the supply of affordable housing, by--
(1) deregulating and decontrolling public housing agencies,
thereby enabling them to perform as property and asset
managers;
(2) providing for more flexible use of Federal assistance to
public housing agencies, allowing the authorities to leverage
and combine assistance amounts with amounts obtained from other
sources;
(3) facilitating mixed income communities;
(4) increasing accountability and rewarding effective
management of public housing agencies;
(5) creating incentives and economic opportunities for
residents of dwelling units assisted by public housing agencies
to work, become self-sufficient, and transition out of public
housing and federally assisted dwelling units;
(6) recreating the existing rental assistance voucher program
so that the use of vouchers and relationships between landlords
and tenants under the program operate in a manner that more
closely resembles the private housing market; and
(7) remedying troubled public housing agencies and replacing
or revitalizing severely distressed public housing
developments.
SEC. 102. DEFINITIONS.
For purposes of this Act, the following definitions shall apply:
(1) Acquisition cost.--When used in reference to public
housing, the term ``acquisition cost'' means the amount
prudently expended by a public housing agency in acquiring
property for a public housing development.
(2) Development.--The terms ``public housing development''
and ``development'' (when used in reference to public housing)
mean--
(A) public housing; and
(B) the improvement of any such housing.
(3) Disabled family.--The term ``disabled family'' means a
family whose head (or his or her spouse), or whose sole member,
is a person with disabilities. Such term includes 2 or more
persons with disabilities living together, and 1 or more such
persons living with 1 or more persons determined under the
regulations of the Secretary to be essential to their care or
well-being.
(4) Drug-related criminal activity.--The term ``drug-related
criminal activity'' means the illegal manufacture, sale,
distribution, use, or possession with intent to manufacture,
sell, distribute, or use, of a controlled substance (as such
term is defined in section 102 of the Controlled Substances
Act).
(5) Effective date.--The term ``effective date'', when used
in reference to this Act, means the effective date determined
under section 601(a).
(6) Elderly families and near elderly families.--The terms
``elderly family'' and ``near-elderly family'' mean a family
whose head (or his or her spouse), or whose sole member, is an
elderly person or a near-elderly person, respectively. Such
terms include 2 or more elderly persons or near-elderly persons
living together, and 1 or more such persons living with 1 or
more persons determined under the regulations of the Secretary
to be essential to their care or well-being.
(7) Elderly person.--The term ``elderly person'' means a
person who is at least 62 years of age.
(8) Eligible public housing agency.--The term ``eligible
public housing agency'' means, with respect to a fiscal year, a
public housing agency that is eligible under section 202(d) for
a grant under this title.
(9) Family.--The term ``family'' includes a family with or
without children, an elderly family, a near-elderly family, a
disabled family, and a single person.
(10) Group home and independent living facility.--The terms
``group home'' and ``independent living facility'' have the
meanings given such terms in section 811(k) of the Cranston-
Gonzalez National Affordable Housing Act.
(11) Income.--The term ``income'' means, with respect to a
family, income from all sources of each member of the
household, as determined in accordance with criteria prescribed
by the applicable public housing agency and the Secretary,
except that the following amounts shall be excluded:
(A) Any amounts not actually received by the family.
(B) Any amounts that would be eligible for exclusion
under section 1613(a)(7) of the Social Security Act.
(12) Local housing management plan.--The term ``local housing
management plan'' means, with respect to any fiscal year, the
plan under section 106 of a public housing agency for such
fiscal year.
(13) Low-income family.--The term ``low-income family'' means
a family whose income does not exceed 80 percent of the median
income for the area, as determined by the Secretary with
adjustments for smaller and larger families, except that the
Secretary may, for purposes of this paragraph, establish income
ceilings higher or lower than 80 percent of the median for the
area on the basis of the public housing agency's findings that
such variations are necessary because of unusually high or low
family incomes.
(14) Low-income housing.--The term ``low-income housing''
means dwellings that comply with the requirements--
(A) under title II for assistance under such title
for the dwellings; or
(B) under title III for rental assistance payments
under such title for the dwellings.
(15) Near-elderly person.--The term ``near-elderly person''
means a person who is at least 55 years of age.
(16) Operation.--When used in reference to public housing,
the term ``operation'' means any or all undertakings
appropriate for management, operation, services, maintenance,
security (including the cost of security personnel), or
financing in connection with a public housing development,
including the financing of resident programs and services.
(17) Person with disabilities.--The term ``person with
disabilities'' means a person who--
(A) has a disability as defined in section 223 of the
Social Security Act,
(B) is determined, pursuant to regulations issued by
the Secretary, to have a physical, mental, or emotional
impairment which (i) is expected to be of long-
continued and indefinite duration, (ii) substantially
impedes his or her ability to live independently, and
(iii) is of such a nature that such ability could be
improved by more suitable housing conditions, or
(C) has a developmental disability as defined in
section 102 of the Developmental Disabilities
Assistance and Bill of Rights Act.
Such term shall not exclude persons who have the disease of
acquired immunodeficiency syndrome or any conditions arising
from the etiologic agent for acquired immunodeficiency
syndrome. Notwithstanding any other provision of law, no
individual shall be considered a person with disabilities, for
purposes of eligibility for public housing under title II of
this Act, solely on the basis of any drug or alcohol
dependence. The Secretary shall consult with other appropriate
Federal agencies to implement the preceding sentence.
(18) Production.--When used in reference to public housing,
the term ``production'' means any or all undertakings necessary
for planning, land acquisition, financing, demolition,
construction, or equipment, in connection with the
construction, acquisition, or rehabilitation of a property for
use as a public housing development, including activity in
connection with a public housing development that is confined
to the reconstruction, remodeling, or repair of existing
buildings.
(19) Production cost.--When used in reference to public
housing, the term ``production cost'' means the costs incurred
by a public housing agency for production of public housing and
the necessary financing for production (including the payment
of carrying charges and acquisition costs).
(20) Public housing.--The term ``public housing'' means
housing, and all necessary appurtenances thereto, that--
(A) is low-income housing, low-income dwelling units
in mixed-finance housing (as provided in subtitle F),
or low-income dwelling units in mixed income housing
(as provided in section 221(c)(2)); and
(B)(i) is subject to an annual block grant contract
under title II; or
(ii) was subject to an annual block grant contract
under title II (or an annual contributions contract
under the United States Housing Act of 1937) which is
not in effect, but for which occupancy is limited in
accordance with the requirements under section 222(a).
(21) Public housing agency.--The term ``public housing
agency'' is defined in section 103.
(22) Resident council.--The term ``resident council'' means
an organization or association that meets the requirements of
section 234(a).
(23) Resident management corporation.--The term ``resident
management corporation'' means a corporation that meets the
requirements of section 234(b)(2).
(24) Resident program.--The term ``resident programs and
services'' means programs and services for families residing in
public housing developments. Such term includes (A) the
development and maintenance of resident organizations which
participate in the management of public housing developments,
(B) the training of residents to manage and operate the public
housing development and the utilization of their services in
management and operation of the development, (C) counseling on
household management, housekeeping, budgeting, money
management, homeownership issues, child care, and similar
matters, (D) advice regarding resources for job training and
placement, education, welfare, health, and other community
services, (E) services that are directly related to meeting
resident needs and providing a wholesome living environment;
and (F) referral to appropriate agencies in the community when
necessary for the provision of such services. To the maximum
extent available and appropriate, existing public and private
agencies in the community shall be used for the provision of
such services.
(25) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(26) State.--The term ``State'' means the States of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, the Commonwealth of the Northern Mariana Islands,
Guam, the Virgin Islands, American Samoa, and any other
territory or possession of the United States and Indian tribes.
(27) Very low-income family.--The term ``very low-income
family'' means a low-income family whose income does not exceed
50 percent of the median family income for the area, as
determined by the Secretary with adjustments for smaller and
larger families, except that the Secretary may, for purposes of
this paragraph, establish income ceilings higher or lower than
50 percent of the median for the area on the basis of the
public housing agency's findings that such variations are
necessary because of unusually high or low family incomes.
SEC. 103. ORGANIZATION OF PUBLIC HOUSING AGENCIES.
(a) Requirements.--For purposes of this Act, the terms ``public
housing agency'' and ``agency'' mean any entity that--
(1) is--
(A) a public housing agency that was authorized under
the United States Housing Act of 1937 to engage in or
assist in the development or operation of low-income
housing;
(B) authorized under this Act to engage in or assist
in the development or operation of low-income housing
by any State, county, municipality, or other
governmental body or public entity;
(C) an entity authorized by State law to administer
choice-based housing assistance under title III; or
(D) an entity selected by the Secretary, pursuant to
subtitle D of title V, to manage housing; and
(2) complies with the requirements under subsection (b).
The term does not include any entity that is an Indian housing
authority for purposes of the United States Housing Act of 1937 (as in
effect before the effectiveness of the Native American Housing
Assistance and Self-Determination Act of 1996) or a tribally designated
housing entity, as such term is defined in section 4 of the Native
American Housing Assistance and Self-Determination Act of 1996.
(b) Governance.--
(1) Board of directors.--Each public housing agency shall
have a board of directors or other form of governance as
prescribed in State or local law. No person may be barred from
serving on such board or body because of such person's
residency in a public housing development or status as an
assisted family under title III.
(2) Resident membership.--
(A) In general.--Except as provided in subparagraph
(B), in localities in which a public housing agency is
governed by a board of directors or other similar body,
the board or body shall include not less than 1 member
who is an elected public housing resident member (as
such term is defined in paragraph (5)).
(B) Exceptions.--The requirement in subparagraph (A)
with respect to elected public housing resident members
shall not apply to--
(i) any State or local governing body that
serves as a public housing agency for purposes
of this Act and whose responsibilities include
substantial activities other than acting as the
public housing agency, except that such
requirement shall apply to any advisory
committee or organization that is established
by such governing body and whose
responsibilities relate only to the governing
body's functions as a public housing agency for
purposes of this Act;
(ii) any public housing agency that owns or
operates less than 250 public housing dwelling
units (including any agency that does not own
or operate public housing); or
(iii) any public housing agency in a State
that requires the members of the board of
directors or other similar body of a public
housing agency to be salaried and to serve on a
full-time basis.
(3) Full participation.--No public housing agency may limit
or restrict the capacity or offices in which a member of such
board or body may serve on such board or body solely because of
the member's status as a resident member.
(4) Conflicts of interest.--The Secretary shall establish
guidelines to prevent conflicts of interest on the part of
members of the board or directors or governing body of a public
housing agency.
(5) Definitions.--For purposes of this subsection, the
following definitions shall apply:
(A) Elected public housing resident member.--The term
``elected public housing resident member'' means, with
respect to the public housing agency involved, an
individual who is a resident member of the board of
directors (or other similar governing body of the
agency) by reason of election to such position pursuant
to an election--
(i) in which eligibility for candidacy in
such election is limited to individuals who--
(I) maintain their principal
residence in a dwelling unit of public
housing administered or assisted by the
agency; and
(II) have not been convicted of a
felony;
(ii) in which only residents of dwelling
units of public housing administered by the
agency may vote; and
(iii) that is conducted in accordance with
standards and procedures for such election,
which shall be established by the Secretary.
(B) Resident member.--The term ``resident member''
means a member of the board of directors or other
similar governing body of a public housing agency who
is a resident of a public housing dwelling unit owned,
administered, or assisted by the agency or is a member
of an assisted family (as such term is defined in
section 371) assisted by the agency.
(c) Establishment of Policies.--Any rules, regulations, policies,
standards, and procedures necessary to implement policies required
under section 106 to be included in the local housing management plan
for a public housing agency shall be approved by the board of directors
or similar governing body of the agency and shall be publicly available
for review upon request.
SEC. 104. DETERMINATION OF ADJUSTED INCOME AND MEDIAN INCOME.
(a) Adjusted Income.--For purposes of this Act, the term ``adjusted
income'' means, with respect to a family, the difference between the
income of the members of the family residing in a dwelling unit or the
persons on a lease and the amount of any income exclusions for the
family under subsections (b) and (c), as determined by the public
housing agency.
(b) Mandatory Exclusions From Income.--In determining adjusted
income, a public housing agency shall exclude from the annual income of
a family the following amounts:
(1) Elderly and disabled families.--$400 for any elderly or
disabled family.
(2) Medical expenses.--The amount by which 3 percent of the
annual family income is exceeded by the sum of--
(A) unreimbursed medical expenses of any elderly
family;
(B) unreimbursed medical expenses of any nonelderly
family, except that this subparagraph shall apply only
to the extent approved in appropriation Acts; and
(C) unreimbursed reasonable attendant care and
auxiliary apparatus expenses for each handicapped
member of the family, to the extent necessary to enable
any member of such family (including such handicapped
member) to be employed.
(3) Child care expenses.--Any reasonable child care expenses
necessary to enable a member of the family to be employed or to
further his or her education.
(4) Minors, students, and persons with disabilities.--$480
for each member of the family residing in the household (other
than the head of the household or his or her spouse) who is
less than 18 years of age or is attending school or vocational
training on a full-time basis, or who is 18 years of age or
older and is a person with disabilities.
(5) Child support payments.--Any payment made by a member of
the family for the support and maintenance of any child who
does not reside in the household, except that the amount
excluded under this paragraph may not exceed $480 for each
child for whom such payment is made.
(6) Earned income of minors.--The amount of any earned income
of a member of the family who is not--
(A) 18 years of age or older; and
(B) the head of the household (or the spouse of the
head of the household).
(c) Permissive Exclusions From Income.--In determining adjusted
income, a public housing agency may, in the discretion of the agency,
establish exclusions from the annual income of a family. Such
exclusions may include the following amounts:
(1) Excessive travel expenses.--Excessive travel expenses in
an amount not to exceed $25 per family per week, for
employment- or education-related travel.
(2) Earned income.--An amount of any earned income of the
family, established at the discretion of the public housing
agency, which may be based on--
(A) all earned income of the family,
(B) the amount earned by particular members of the
family;
(C) the amount earned by families having certain
characteristics; or
(D) the amount earned by families or members during
certain periods or from certain sources.
(3) Others.--Such other amounts for other purposes, as the
public housing agency may establish.
(d) Median Income.--In determining median incomes (of persons,
families, or households) for an area or establishing any ceilings or
limits based on income under this Act, the Secretary shall determine or
establish area median incomes and income ceilings and limits for
Westchester and Rockland Counties, in the State of New York, as if each
such county were an area not contained within the metropolitan
statistical area in which it is located. In determining such area
median incomes or establishing such income ceilings or limits for the
portion of such metropolitan statistical area that does not include
Westchester or Rockland Counties, the Secretary shall determine or
establish area median incomes and income ceilings and limits as if such
portion included Westchester and Rockland Counties.
SEC. 105. COMMUNITY WORK AND FAMILY SELF-SUFFICIENCY REQUIREMENTS.
(a) Community Work Requirement.--
(1) In general.--Except as provided in paragraph (3), each
public housing agency shall require, as a condition of
occupancy of a public housing dwelling unit by a family and of
providing housing assistance under title III on behalf of a
family, that each adult member of the family shall contribute
not less than 8 hours of work per month (not including
political activities) within the community in which the family
resides, which may include work performed on locations not
owned by the public housing agency).
(2) Employment status and liability.--The requirement under
paragraph (1) may not be construed to establish any employment
relationship between the public housing agency and the member
of the family subject to the work requirement under such
paragraph or to create any responsibility, duty, or liability
on the part of the public housing agency for actions arising
out of the work done by the member of the family to comply with
the requirement, except to the extent that the member of the
family is fulfilling the requirement by working directly for
such public housing agency.
(3) Exemptions.--A public housing agency shall provide for
the exemption, from the applicability of the requirement under
paragraph (1), of each individual who is--
(1) an elderly person;
(2) a person with disabilities;
(3) working, attending school or vocational training, or
otherwise complying with work requirements applicable under
other public assistance programs (as determined by the agencies
or organizations responsible for administering such programs);
or
(4) otherwise physically impaired to the extent that they are
unable to comply with the requirement, as certified by a
doctor.
(b) Requirement Regarding Target Date for Transition Out of Assisted
Housing.--
(1) In general.--Each public housing agency shall require, as
a condition of occupancy of a public housing dwelling unit by a
family and of providing housing assistance under title III on
behalf of a family, that the family and the agency enter into
an agreement (included, pursuant to subsection (d)(2)(C), as a
term of an agreement under subsection (d)) establishing a
target date by which the family intends to graduate from,
terminate tenancy in, or no longer receive public housing or
housing assistance under title III.
(2) Rights of occupancy.--This subsection may not be
construed (nor may any provision of subsection (d) or (e)) to
create a right on the part of any public housing agency to
evict or terminate assistance for a family solely on the basis
of any failure of the family to comply with the target date
established pursuant to paragraph (1).
(3) Factors.--In establishing a target date pursuant to
paragraph (1) for a family that receives benefits for welfare
or public assistance from a State or other public agency under
a program that limits the duration during which such benefits
may be received, the public housing agency and the family may
take into consideration such time limit. This section may not
be construed to require any public housing agency to adopt any
such time limit on the duration of welfare or public assistance
benefits as the target date pursuant to paragraph (1) for a
resident.
(4) Exemptions.--A public housing agency shall provide for
the exemption, from the applicability of the requirements under
paragraph (1), of each individual who is--
(1) an elderly person;
(2) a person with disabilities;
(3) working, attending school or vocational training, or
otherwise complying with work requirements applicable under
other public assistance programs (as determined by the agencies
or organizations responsible for administering such programs);
or
(4) otherwise physically impaired to the extent that they are
unable to comply with the requirement, as certified by a
doctor.
(c) Treatment of Income Changes Resulting From Welfare Program
Requirements.--
(1) Covered family.--For purposes of this subsection, the
term ``covered family'' means a family that (A) receives
benefits for welfare or public assistance from a State or other
public agency under a program for which the Federal, State, or
local law relating to the program requires, as a condition of
eligibility for assistance under the program, participation of
a member of the family in an economic self-sufficiency program,
and (B) resides in a public housing dwelling unit or is
provided housing assistance under title III.
(2) Decreases in income for failure to comply.--
Notwithstanding the provisions of sections 225 and 322
(relating to family rental contributions), if the welfare or
public assistance benefits of a covered family are reduced
under a Federal, State, or local law regarding such an
assistance program because of any failure of any member of the
family to comply with the conditions under the assistance
program requiring participation in an economic self-sufficiency
program, the amount required to be paid by the family as a
monthly contribution toward rent may not be decreased, during
the period of the reduction, as a result of any decrease in the
income of the family (to the extent that the decrease in income
is a result of the benefits reduction).
(3) Effect of fraud.--Notwithstanding the provisions of
sections 225 and 322 (relating to family rental contributions),
if the welfare or public assistance benefits of a covered
family are reduced because of an act of fraud by a member of
the family under the law or program, the amount required to be
paid by the covered family as a monthly contribution toward
rent may not be decreased, during the period of the reduction,
as a result of any decrease in the income of the family (to the
extent that the decrease in income is a result of the benefits
reduction).
(4) Notice.--Paragraphs (2) and (3) shall not apply to any
covered family before the public housing agency providing
assistance under this Act on behalf of the family obtains
written notification from the relevant welfare or public
assistance agency specifying that the family's benefits have
been reduced because of noncompliance with economic self-
sufficiency program requirements or fraud and the level of such
reduction.
(5) Occupancy rights.--This subsection may not be construed
to authorize any public housing agency to establish any time
limit on tenancy in a public housing dwelling unit or on
receipt of housing assistance under title III.
(6) Review.--Any covered family residing in public housing
that is affected by the operation of this subsection shall have
the right to review the determination under this subsection
through the administrative grievance procedure established
pursuant to section 110 for the public housing agency.
(7) Cooperation agreements for economic self-sufficiency
activities.--
(A) Requirement.--A public housing agency providing
public housing dwelling units or housing assistance
under title III for covered families shall make its
best efforts to enter into such cooperation agreements,
with State, local, and other agencies providing
assistance to covered families under welfare or public
assistance programs, as may be necessary, to provide
for such agencies to transfer information to facilitate
administration of subsection (a) and paragraphs (2),
(3), and (4) of this subsection, and other information
regarding rents, income, and assistance that may assist
a public housing agency or welfare or public assistance
agency in carrying out its functions.
(B) Contents.--A public housing agency shall seek to
include in a cooperation agreement under this paragraph
requirements and provisions designed to target
assistance under welfare and public assistance programs
to families residing in public housing developments and
receiving choice-based assistance under title III,
which may include providing for self-sufficiency
services within such housing, providing for services
designed to meet the unique employment-related needs of
residents of such housing and recipients of such
assistance, providing for placement of workfare
positions on-site in such housing, and such other
elements as may be appropriate.
(C) Confidentiality.--This paragraph may not be
construed to authorize any release of information that
is prohibited by, or in contravention of, any other
provision of Federal, State, or local law.
(d) Community Work and Family Self-Sufficiency Agreements.--
(1) In general.--A public housing agency shall enter into a
community work and family self-sufficiency agreement under this
subsection with each adult member and head of household of each
family who is to reside in a dwelling unit in public housing of
the agency and each family on behalf of whom the agency will
provide housing assistance under title III. Under the agreement
the family shall agree that, as a condition of occupancy of the
public housing dwelling unit or of receiving such housing
assistance, the family will comply with the terms of the
agreement.
(2) Terms.--An agreement under this subsection shall include
the following:
(A) Terms designed to encourage and facilitate the
economic self-sufficiency of the assisted family
entering into the agreement and the graduation of the
family from assisted housing to unassisted housing.
(B) Notice of the requirements under subsection (a)
(relating to community work) and the conditions imposed
by, and exemptions from, such requirement.
(C) The target date agreed upon by the family
pursuant to subsection (b) for graduation from,
termination of tenancy in, or termination of receipt of
public housing or housing assistance under title III.
(D) Terms providing for any resources, services, and
assistance relating to self-sufficiency that will be
made available to the family, including any assistance
to be made available pursuant to subsection (c)(7)(B)
under a cooperation agreement entered into under
subsection (c)(7).
(E) Notice of the provisions of paragraphs (2)
through (7) of subsection (c) (relating to effect of
changes in income on rent and assisted families rights
under such circumstances).
(e) Lease Provisions.--A public housing agency shall incorporate into
leases under sections 226, and into any agreements for the provision of
choice-based assistance under title III on behalf of a family--
(1) a provision requiring compliance with the requirement
under subsection (a); and
(2) provisions incorporating the conditions under subsection
(c).
(f) Treatment of Income.--Notwithstanding any other provision of this
section, in determining the income or tenancy of a family who resides
in public housing or receives housing assistance under title III, a
public housing agency shall consider any decrease in the income of a
family that results from the reduction of any welfare or public
assistance benefits received by the family under any Federal, State, or
local law regarding a program for such assistance if the family (or a
member thereof, as applicable) has complied with the conditions for
receiving such assistance and is unable to obtain employment
notwithstanding such compliance.
(g) Definition.--For purposes of this section, the term ``economic
self-sufficiency program'' means any program designed to encourage,
assist, train, or facilitate the economic independence of participants
and their families or to provide work for participants, including
programs for job training, employment counseling, work placement, basic
skills training, education, workfare, financial or household
management, apprenticeship, or other activities as the Secretary may
provide.
SEC. 106. LOCAL HOUSING MANAGEMENT PLANS.
(a) 5-Year Plan.--The Secretary shall provide for each public housing
agency to submit to the Secretary, once every 5 years, a plan under
this subsection for the agency covering a period consisting of 5 fiscal
years. Each such plan shall contain, with respect to the 5-year period
covered by the plan, the following information:
(1) Statement of mission.--A statement of the mission of the
agency for serving the needs of low-income families in the
jurisdiction of the agency during such period.
(2) Goals and objectives.--A statement of the goals and
objectives of the agency that will enable the agency to serve
the needs identified pursuant to paragraph (1) during such
period.
(3) Capital improvement overview.--If the agency will provide
capital improvements for public housing developments during
such period, an overview ofsuch improvements, the rationale for
such improvements, and an analysis of how such improvements will enable
the agency to meet its goals, objectives, and mission.
The first 5-year plan under this subsection for a public housing agency
shall be submitted for the 5-year period beginning with the first
fiscal year for which the agency receives assistance under this Act.
(b) Annual Plan.--The Secretary shall provide for each public housing
agency to submit to the Secretary a local housing management plan under
this section for each fiscal year that contains the information
required under subsection (d). For each fiscal year after the initial
submission of a plan under this section by a public housing agency, the
agency may comply with requirements for submission of a plan under this
subsection by submitting an update of the plan for the fiscal year.
(c) Procedures.--The Secretary shall establish requirements and
procedures for submission and review of plans, including requirements
for timing and form of submission, and for the contents of such plans.
Such procedures shall provide that a public housing agency--
(1) shall, in conjunction with the relevant State or unit of
general local government, establish procedures to ensure that
the plan under this section is consistent with the applicable
comprehensive housing affordability strategy (or any
consolidated plan incorporating such strategy) for the
jurisdiction in which the public housing agency is located, in
accordance with title I of the Cranston-Gonzalez National
Affordable Housing Act; and
(2) may, at the option of the agency, submit a plan under
this section together with, or as part of, the comprehensive
housing affordability strategy (or any consolidated plan
incorporating such strategy) for the relevant jurisdiction, and
for concomitant review of such plans submitted together.
(d) Contents.--An annual local housing management plan under this
section for a public housing agency shall contain the following
information relating to the upcoming fiscal year for which the
assistance under this Act is to be made available:
(1) Needs.--A statement of the housing needs of low-income
and very low-income families residing in the community served
by the agency, and of other low-income families on the waiting
list of the agency (including the housing needs of elderly
families and disabled families), and the means by which the
agency intends, to the maximum extent practicable, to address
such needs.
(2) Financial resources.--A statement of financial resources
available for the agency the planned uses of such resources
that includes--
(A) a description of the financial resources
available to the agency;
(B) the uses to which such resources will be
committed, including all proposed eligible and required
activities under section 203 and housing assistance to
be provided under title III;
(C) an estimate of the costs of operation and the
market rental value of each public housing development;
and
(D) a specific description, based on population and
demographic data, of the unmet affordable housing needs
of families in the community served by the agency
having incomes not exceeding 30 percent of the area
median income and a statement of how the agency will
expend grant amounts received under this Act to meet
the housing needs of such families.
(3) Population served.--A statement of the policies of the
agency governing eligibility, admissions, and occupancy of
families with respect to public housing dwelling units and
housing assistance under title III, including--
(A) the requirements for eligibility for such units
and assistance and the method and procedures by which
eligibility and income will be determined and verified;
(B) the requirements for selection and admissions of
eligible families for such units and assistance,
including any preferences and procedures established by
the agency and any outreach efforts;
(C) the procedures for assignment of families
admitted to dwelling units owned, leased, managed,
operated, or assisted by the agency;
(D) any standards and requirements for occupancy of
public housing dwelling units and units assisted under
title III, including resident screening policies,
standard lease provisions, conditions for continued
occupancy, termination of tenancy, eviction, and
conditions for termination of housing assistance;
(E) the procedures for maintaining waiting lists for
admissions to public housing developments of the
agency, which may include a system of site-based
waiting lists under section 224(c);
(F) the criteria for providing and denying housing
assistance under title III to families moving into the
jurisdiction of the agency; and
(G) the fair housing policy of the agency.
(4) Rent determination.--A statement of the policies of the
agency governing rents charged for public housing dwelling
units and rental contributions of assisted families under title
III and the system used by the agency to ensure that such rents
comply with the requirements of this Act.
(5) Operation and management.--A statement of the rules,
standards, and policies of the public housing agency governing
maintenance and management of housing owned and operated by the
agency, and management of the public housing agency and
programs of the agency, including--
(A) a description of the manner in which the agency
is organized (including any consortia or joint
ventures) and staffed to perform the duties and
functions of the public housing agency and to
administer the operating fund distributions of the
agency;
(B) policies relating to the rental of dwelling
units, including policies designed to reduce vacancies;
(C) housing quality standards in effect pursuant to
sections 232 and 328 and any certifications required
under such sections;
(D) emergency and disaster plans for public housing;
(E) priorities and improvements for management of
public housing, including initiatives to control costs;
and
(F) policies of the agency requiring the loss or
termination of housing assistance and tenancy under
sections 641 and 642 (relating to occupancy standards
for federally assisted housing).
(6) Grievance procedure.--A statement of the grievance
procedures of the agency under section 110.
(7) Capital improvements.--With respect to public housing
developments owned or operated by the agency, a plan describing
the capital improvements necessary to ensure long-term physical
and social viability of the developments.
(8) Demolition and disposition.--With respect to public
housing developments owned or operated by the agency--
(A) a description of any such housing to be
demolished or disposed of under subtitle E of title II;
and
(B) a timetable for such demolition or disposition.
(9) Designation of housing for elderly and disabled
families.--With respect to public housing developments owned or
operated by the agency, a description of any developments (or
portions thereof) that the agency has designated or will
designate for occupancy by elderly and disabled families in
accordance with section 227 and any information required under
section 227(d) for such designated developments.
(10) Conversion of public housing.--With respect to public
housing owned or operated by the agency, a description of any
building or buildings that the agency is required, under
section 203(b), to convert to housing assistance under title
III or that the agency voluntarily converts, an analysis of
such buildings required under such section for conversion, and
a statement of the amount of grant amounts under title II to be
used for rental assistance or other housing assistance.
(11) Homeownership activities.--A description of any
homeownership programs of the agency under subtitle D of title
II or section 329 for the agency and the requirements and
assistance available under such programs.
(12) Economic self-sufficiency and coordination with welfare
and other appropriate agencies.--A description of--
(A) policies relating to services and amenities
provided or offered to assisted families, including the
provision of service coordinators and services designed
for certain populations (such as the elderly and
disabled);
(B) how the agency will coordinate with State, local,
and other agencies providing assistance to families
participating in welfare or public assistance programs;
(C) how the agency will implement and administer
section 105; and
(D) any policies, programs, plans, and activities of
the agency for the enhancement of the economic and
social self-sufficiency of residents assisted by the
programs of the agency, including rent structures to
encourage self-sufficiency.
(13) Safety and crime prevention.--A plan established by the
public housing agency, which shall be subject to the following
requirements:
(A) Safety measures.--The plan shall provide, on a
development-by-development basis, for measures to
ensure the safety of public housing residents.
(B) Establishment.--The plan shall be established,
with respect to each development, in consultation with
the police officer or officers in command for the
precinct in which the development is located.
(C) Content.--The plan shall describe the need for
measures to ensure the safety of public housing
residents and for crime prevention measures, describe
any such activities conducted, or to be conducted, by
the agency, and provide for coordination between the
public housing agency and the appropriate police
precincts for carrying out such measures and
activities.
(D) Secretarial action.--If the Secretary determines,
at any time, that the security needs of a development
are not being adequately addressed by the plan, or that
the local police precinct is not complying with the
plan, the Secretary may mediate between the public
housing agency and the local precinct to resolve any
issues of conflict. If after such mediation has
occurred and the Secretary determines that the security
needs of the development are not adequately addressed,
the Secretary may require the public housing agency to
submit an amended plan.
(14) Annual audit.--The results of the most recent fiscal
year audit of the agency required under section 541(b).
(15) Troubled agencies.--Such other additional information as
the Secretary may determine to be appropriate for each public
housing agency that is designated--
(A) under section 533(c) as at risk of becoming
troubled; or
(B) under section 533(a) as troubled.
(16) Asset management.--A statement of how the agency will
carry out its asset management functions with respect to the
public housing inventory of the agency, including how the
agency will plan for the long-term operating, capital
investment, rehabilitation, modernization, disposition, and
other needs for such inventory.
(e) Citizen Participation.--
(1) Publication of notice.--Not later than 45 days before the
date of a hearing conducted under paragraph (2) by the
governing body of a public housing agency, the agency shall--
(A) publish a notice informing the public that the
proposed local housing management plan or amendment is
available for inspection at the principal office of the
public housing agency during normal business hours and
make the plan or amendment so available for inspection
during such period; and
(B) publish a notice informing the public that a
public hearing will be conducted to discuss the local
housing management plan and to invite public comment
regarding that plan.
(2) Public hearing.--Before submitting a plan under this
section or a significant amendment under section 107(f) to a
plan, a public housing agency shall, at a location that is
convenient to residents, conduct a public hearing, as provided
in the notice published under paragraph (1), regarding the
public housing plan or the amendment of the agency.
(3) Consideration of comments.--A public housing agency shall
consider any comments or views made available pursuant to
paragraphs (1) and (2) in preparing a final plan or amendment
for submission to the Secretary. A summary of such comments or
views shall be attached to the plan, amendment, or report
submitted.
(4) Adoption of plan.--After conducting the public hearing
under paragraph (2) and considering public comments in
accordance with paragraph (3), the public housing agency shall
make any appropriate changes to the local housing management
plan or amendment and shall--
(A) adopt the local housing management plan;
(B) submit the plan to any local elected official or
officials responsible for appointing the members of the
board of directors (or other similar governing body) of
the public housing agency for review and approval under
subsection (f);
(C) submit the plan to the Secretary in accordance
with this section; and
(D) make the submitted plan or amendment publicly
available.
(f) Local Review.--The public housing agency shall submit a plan
under this subsection to any local elected official or officials
responsible for appointing the members of the board of directors (or
other similar governing body) of the public housing agency for review
and approval for a 45-day period beginning on the date that the plan is
submitted to such local official or officials (which period may run
concurrently with any period under subsection (e) for public comment).
If the local official or officials responsible under this subsection do
not act within 45 days of submission of the plan, the plan shall be
considered approved. If the local official or officials responsible
under this subsection reject the public housing agency's plan, they
shall return the plan with their recommended changes to the agency
within 5 days of their disapproval. The agency shall resubmit an
updated plan to the local official or officials within 30 days of
receiving the objections, If the local official or officials again
reject the plan, the resubmitted plan, together with the local
official's objections, shall be submitted to the Secretary for
approval.
(g) Plans for Small PHA's and PHA's Administering Only Rental
Assistance.--The Secretary shall establish requirements for submission
of plans under this section and the information to be included in such
plans applicable to public housing agencies that own or operate less
than 250 public housing dwelling units and shall establish requirements
for such submission and information applicable to agencies that only
administer housing assistance under title III (and do not own or
operate public housing). Such requirements shall waive any requirements
under this section that the Secretary determines are burdensome or
unnecessary for such agencies.
SEC. 107. REVIEW OF PLANS.
(a) Review and Notice.--
(1) Review.--The Secretary shall conduct a limited review of
each local housing management plan submitted to the Secretary
to ensure that the plan is complete and complies with the
requirements of section 106. The Secretary shall have the
discretion to review a plan to the extent that the Secretary
considers review is necessary.
(2) Notice.--The Secretary shall notify each public housing
agency submitting a plan whether the plan complies with such
requirements not later than 75 days after receiving the plan.
If the Secretary does not notify the public housing agency, as
required under this subsection and subsection (b), the
Secretary shall be considered, for purposes of this Act, to
have made a determination that the plan complies with the
requirements under section 106 and the agency shall be
considered to have been notified of compliance upon the
expiration of such 75-day period. The preceding sentence shall
not preclude judicial review regarding such compliance pursuant
to chapter 7 of title 5, United States Code, or an action
regarding such compliance under section 1979 of the Revised
Statutes of the United States (42 U.S.C. 1883).
(b) Notice of Reasons for Determination of Noncompliance.--If the
Secretary determines that a plan, as submitted, does not comply with
the requirements under section 106, the Secretary shall specify in the
notice under subsection (a) the reasons for the noncompliance and any
modifications necessary for the plan to meet the requirements under
section 106.
(c) Standards for Determination of Noncompliance.--The Secretary may
determine that a plan does not comply with the requirements under
section 106 only if--
(1) the plan is incomplete in significant matters required
under such section;
(2) there is evidence available to the Secretary that
challenges, in a substantial manner, any information provided
in the plan;
(3) the Secretary determines that the plan does not comply
with Federal law or violates the purposes of this Act because
it fails to provide housing that will be viable on a long-term
basis at a reasonable cost;
(4) the plan plainly fails to adequately identify the needs
of low-income families for housing assistance in the
jurisdiction of the agency;
(5) the plan plainly fails to adequately identify the capital
improvement needs for public housing developments in the
jurisdiction of the agency;
(6) the activities identified in the plan are plainly
inappropriate to address the needs identified in the plan; or
(7) the plan is inconsistent with the requirements of this
Act.
The Secretary shall determine that a plan does not comply with the
requirements under section 106 if the plan does not include the
information required under section 106(d)(2)(D).
(d) Treatment of Existing Plans.--Notwithstanding any other provision
of this title, a public housing agency shall be considered to have
submitted a plan under this section if the agency has submitted to the
Secretary a comprehensive plan under section 14(e) of the United States
Housing Act of 1937 (as in effect immediately before the effective date
of the repeal under section 601(b) of this Act) or under the
comprehensive improvement assistance program under such section 14, and
the Secretary has approved such plan, before January 1, 1997. The
Secretaryshall provide specific procedures and requirements for such
authorities to amend such plans by submitting only such additional
information as is necessary to comply with the requirements of section
106.
(e) Actions To Change Plan.--A public housing agency that has
submitted a plan under section 106 may change actions or policies
described in the plan before submission and review of the plan of the
agency for the next fiscal year only if--
(1) in the case of costly or nonroutine changes, the agency
submits to the Secretary an amendment to the plan under
subsection (f) which is reviewed in accordance with such
subsection; or
(2) in the case of inexpensive or routine changes, the agency
describes such changes in such local housing management plan
for the next fiscal year.
(f) Amendments to Plan.--
(1) In general.--During the annual or 5-year period covered
by the plan for a public housing agency, the agency may submit
to the Secretary any amendments to the plan.
(2) Review.--The Secretary shall conduct a limited review of
each proposed amendment submitted under this subsection to
determine whether the plan, as amended by the amendment,
complies with the requirements of section 106 and notify each
public housing agency submitting the amendment whether the
plan, as amended, complies with such requirements not later
than 30 days after receiving the amendment. If the Secretary
determines that a plan, as amended, does not comply with the
requirements under section 106, such notice shall indicate the
reasons for the noncompliance and any modifications necessary
for the plan to meet the requirements under section 106. If the
Secretary does not notify the public housing agency as required
under this paragraph, the plan, as amended, shall be
considered, for purposes of this section, to comply with the
requirements under section 106.
(3) Standards for determination of noncompliance.--The
Secretary may determine that a plan, as amended by a proposed
amendment, does not comply with the requirements under section
106 only if--
(A) the plan, as amended, would be subject to a
determination of noncompliance in accordance with the
provisions of subsection (c);
(B) the Secretary determines that--
(i) the proposed amendment is plainly
inconsistent with the activities specified in
the plan; or
(ii) there is evidence that challenges, in a
substantial manner, any information contained
in the amendment; or
(C) the Secretary determines that the plan, as
amended, violates the purposes of this Act because it
fails to provide housing that will be viable on a long-
term basis at a reasonable cost.
(4) Amendments to extend time of performance.--
Notwithstanding any other provision of this subsection, the
Secretary may not determine that any amendment to the plan of a
public housing agency that extends the time for performance of
activities assisted with amounts provided under this title
fails to comply with the requirements under section 106 if the
Secretary has not provided the amount of assistance set forth
in the plan or has not provided the assistance in a timely
manner.
SEC. 108. REPORTING REQUIREMENTS.
(a) Performance and Evaluation Report.--Each public housing agency
shall annually submit to the Secretary, on a date determined by the
Secretary, a performance and evaluation report concerning the use of
funds made available under this Act. The report of the public housing
agency shall include an assessment by the agency of the relationship of
such use of funds made available under this Act, as well as the use of
other funds, to the needs identified in the local housing management
plan and to the purposes of this Act. The public housing agency shall
certify that the report was available for review and comment by
affected tenants prior to its submission to the Secretary.
(b) Review of PHA's.--The Secretary shall, at least on an annual
basis, make such reviews as may be necessary or appropriate to
determine whether each public housing agency receiving assistance under
this section--
(1) has carried out its activities under this Act in a timely
manner and in accordance with its local housing management
plan; and
(2) has a continuing capacity to carry out its local housing
management plan in a timely manner.
(c) Records.--Each public housing agency shall collect, maintain, and
submit to the Secretary such data and other program records as the
Secretary may require, in such form and in accordance with such
schedule as the Secretary may establish.
SEC. 109. PET OWNERSHIP.
Pet ownership in housing assisted under this Act that is federally
assisted rental housing (as such term is defined in section 227 of the
Housing and Urban-Rural Recovery Act of 1983) shall be governed by the
provisions of section 227 of such Act.
SEC. 110. ADMINISTRATIVE GRIEVANCE PROCEDURE.
(a) Requirements.--Each public housing agency receiving assistance
under this Act shall establish and implement an administrative
grievance procedure under which residents of public housing will--
(1) be advised of the specific grounds of any proposed
adverse public housing agency action;
(2) have an opportunity for a hearing before an impartial
party (including appropriate employees of the public housing
agency) upon timely request within a reasonable period of time;
(3) have an opportunity to examine any documents or records
or regulations related to the proposed action;
(4) be entitled to be represented by another person of their
choice at any hearing;
(5) be entitled to ask questions of witnesses and have others
make statements on their behalf; and
(6) be entitled to receive a written decision by the public
housing agency on the proposed action.
(b) Exclusion From Administrative Procedure of Grievances Concerning
Evictions From Public Housing.--A public housing agency shall exclude
from its procedure established under subsection (a) any grievance
concerning an eviction from or termination of tenancy in public housing
in any State which requires that, prior to eviction, a resident be
provided a hearing in court which the Secretary determines provides the
basic elements of due process.
(c) Inapplicability to Choice-Based Rental Housing Assistance.--This
section may not be construed to require any public housing agency to
establish or implement an administrative grievance procedure with
respect to assisted families under title III.
SEC. 111. HEADQUARTERS RESERVE FUND.
(a) Annual Reservation of Amounts.--Notwithstanding any other
provision of law, the Secretary may retain not more than 2 percent of
the amounts appropriated to carry out title II for any fiscal year for
use in accordance with this section.
(b) Use of Amounts.--Any amounts that are retained under subsection
(a) or appropriated for use under this section shall be available for
subsequent allocation to specific areas and communities, and may only
be used for the Department of Housing and Urban Development and--
(1) for unforeseen housing needs resulting from natural and
other disasters;
(2) for housing needs resulting from emergencies, as
determined by the Secretary, other than such disasters;
(3) for housing needs related to a settlement of litigation,
including settlement of fair housing litigation; and
(4) for needs related to the Secretary's actions under this
Act regarding troubled and at-risk public housing agencies.
Housing needs under this subsection may be met through the provision of
assistance in accordance with title II or title III, or both.
SEC. 112. LABOR STANDARDS.
(a) In General.--Any contract for grants, sale, or lease pursuant to
this Act relating to public housing shall contain the following
provisions:
(1) Operation.--A provision requiring that not less than the
wages prevailing in the locality, as determined or adopted
(subsequent to a determination under applicable State or local
law) by the Secretary, shall be paid to all contractors and
persons employed in the operation of the low-income housing
development involved.
(2) Production.--A provision that not less than the wages
prevailing in the locality, as predetermined by the Secretary
of Labor pursuant to the Davis-Bacon Act (40 U.S.C. 276a-276a-
5), shall be paid to all laborers and mechanics employed in the
production of the development involved.
The Secretary shall require certification as to compliance with the
provisions of this section before making any payment under such
contract.
(b) Exceptions.--Subsection (a) and the provisions relating to wages
(pursuant to subsection (a)) in any contract for grants, sale, or lease
pursuant to this Act relating to public housing, shall not apply to any
individual who--
(1) performs services for which the individual volunteered;
(2)(A) does not receive compensation for such services; or
(B) is paid expenses, reasonable benefits, or a nominal fee
for such services; and
(3) is not otherwise employed at any time in the construction
work.
SEC. 113. NONDISCRIMINATION.
(a) In General.--No person in the United States shall on the grounds
of race, color, national origin, religion, or sex be excluded from
participation in, be denied the benefits of, or be subjected to
discrimination under any program or activity funded in whole or in part
with amounts made available under this Act. Any prohibition against
discrimination on the basis of age under the Age Discrimination Act of
1975 or with respect to an otherwise qualified handicapped individual
as provided in section 504 of the Rehabilitation Act of 1973 shall also
apply to any such program or activity.
(b) Civil Rights Compliance.--Each public housing agency that
receives grant amounts under this Act shall use such amounts and carry
out its local housing management plan approved under section 107 in
conformity with title VI of the Civil Rights Act of 1964, the Fair
Housing Act, section 504 of the Rehabilitation Act of 1973, the Age
Discrimination Act of 1975, and the Americans With Disabilities Act of
1990, and shall affirmatively further fair housing.
SEC. 114. PROHIBITION ON USE OF FUNDS.
None of the funds made available to the Department of Housing and
Urban Development to carry out this Act, which are obligated to State
or local governments, public housing agencies, housing finance
agencies, or other public or quasi-public housing agencies, shall be
used to indemnify contractors or subcontractors of the government or
agency against costs associated with judgments of infringement of
intellectual property rights.
SEC. 115. INAPPLICABILITY TO INDIAN HOUSING.
Except as specifically provided by law, the provisions of this title,
and titles II, III, IV, and V shall not apply to public housing
developed or operated pursuant to a contract between the Secretary and
an Indian housing authority under the United States Housing Act of 1937
or to housing assisted under the Native American Housing Assistance and
Self-Determination Act of 1996.
SEC. 116. REGULATIONS.
(a) In General.--The Secretary may issue any regulations necessary to
carry out this Act. This subsection shall take effect on the date of
the enactment of this Act.
(b) Rule of Construction.--Any failure by the Secretary to issue any
regulations authorized under subsection (a) shall not affect the
effectiveness of any provision of this Act or any amendment made by
this Act.
TITLE II--PUBLIC HOUSING
Subtitle A--Block Grants
SEC. 201. BLOCK GRANT CONTRACTS.
(a) In General.--The Secretary shall enter into contracts with public
housing agencies under which--
(1) the Secretary agrees to make a block grant under this
title, in the amount provided under section 202(c), for
assistance for low-income housing to the public housing agency
for each fiscal year covered by the contract; and
(2) the agency agrees--
(A) to provide safe, clean, and healthy housing that
is affordable to low-income families and services for
families in such housing;
(B) to operate, or provide for the operation, of such
housing in a financially sound manner;
(C) to use the block grant amounts in accordance with
this title and the local housing management plan for
the agency that complies with the requirements of
section 106;
(D) to involve residents of housing assisted with
block grant amounts in functions and decisions relating
to management and the quality of life in such housing;
(E) that the management of the public housing of the
agency shall be subject to actions authorized under
subtitle D of title V;
(F) that the Secretary may take actions under section
205 with respect to improper use of grant amounts
provided under the contract; and
(G) to otherwise comply with the requirements under
this title.
(b) Small Public Housing Agency Capital Grant Option.--For any fiscal
year, upon the request of the Governor of the State, the Secretary
shall make available directly to the State, from the amounts otherwise
included in the block grants for all public housing agencies in such
State which own or operate less than 100 dwelling units, \1/2\ of that
portion of such amounts that is derived from the capital improvement
allocations for such agencies pursuant to section 203(c)(1) or
203(d)(2), as applicable. The Governor of the State will have the
responsibility to distribute all of such funds, in amounts determined
by the Governor, only to meet the exceptional capital improvement
requirements for the various public housing agencies in the State which
operate less than 100 dwelling units: Provided, however, that for
States where Federal funds provided to the State are subject to
appropriation action by the State legislature, the capital funds made
available to the Governor under this subsection shall be subject to
such appropriation by the State legislature.
(c) Modification.--Contracts and agreements between the Secretary and
a public housing agency may not be amended in a manner which would--
(1) impair the rights of--
(A) leaseholders for units assisted pursuant to a
contract or agreement; or
(B) the holders of any outstanding obligations of the
public housing agency involved for which annual
contributions have been pledged; or
(2) provide for payment of block grant amounts under this
title in an amount exceeding the allocation for the agency
determined under section 204.
Any rule of law contrary to this subsection shall be deemed
inapplicable.
SEC. 202. GRANT AUTHORITY, AMOUNT, AND ELIGIBILITY.
(a) Authority.--The Secretary shall make block grants under this
title to eligible public housing agencies in accordance with block
grant contracts under section 201.
(b) Performance Funds.--
(1) In general.--The Secretary shall establish 2 funds for
the provision of grants to eligible public housing agencies
under this title, as follows:
(A) Capital fund.--A capital fund to provide capital
and management improvements to public housing
developments.
(B) Operating fund.--An operating fund for public
housing operations.
(2) Flexibility of funding.--
(A) In general.--A public housing agency may use up
to 20 percent of the amounts from a grant under this
title that are allocated and provided from the capital
fund for activities that are eligible under section
203(a)(2) to be funded with amounts from the operating
fund.
(B) Full flexibility for small pha's.--In the case of
a public housing agency that owns or operates less than
250 public housing dwelling units and is (in the
determination of the Secretary) operating and
maintaining its public housing in a safe, clean, and
healthy condition, the agency may use amounts from a
grant under this title for any eligible activities
under section 203(a), regardless of the fund from which
the amounts were allocated and provided.
(c) Amount of Grants.--The amount of the grant under this title for a
public housing agency for a fiscal year shall be the amount of the
allocation for the agency determined under section 204, except as
otherwise provided in this title and title V.
(d) Eligibility.--A public housing agency shall be an eligible public
housing agency with respect to a fiscal year for purposes of this title
only if--
(1) the Secretary has entered into a block grant contract
with the agency;
(2) the agency has submitted a local housing management plan
to the Secretary for such fiscal year;
(3) the plan has been determined to comply with the
requirements under section 106 and the Secretary has not
notified the agency that the plan fails to comply with such
requirements;
(4) the agency is exempt from local taxes, as provided under
subsection (e), or receives a contribution, as provided under
such subsection;
(5) no member of the board of directors or other governing
body of the agency, or the executive director, has been
convicted of a felony;
(6) the agency has entered into an agreement providing for
local cooperation in accordance with subsection (f); and
(7) the agency has not been disqualified for a grant pursuant
to section 205(a) or title V.
(e) Payments in Lieu of State and Local Taxation of Public Housing
Developments.--
(1) Exemption from taxation.--A public housing agency may
receive a block grant under this title only if--
(A)(i) the developments of the agency (exclusive of
any portions not assisted with amounts provided under
this title) are exempt from all real and personal
property taxes levied or imposed by the State, city,
county, or other political subdivision; and
(ii) the public housing agency makes payments in lieu
of taxes to such taxing authority equal to 10 percent
of the sum, for units charged in the developments of
the agency, of the difference between the gross rent
and the utility cost, or such lesser amount as is--
(I) prescribed by State law;
(II) agreed to by the local governing body in
its agreement under subsection (f) for local
cooperation with the public housing agency or
under a waiver by the local governing body; or
(III) due to failure of a local public body
or bodies other than the public housing agency
to perform any obligation under such agreement;
or
(B) the agency complies with the requirements under
subparagraph (A) with respect to public housing
developments (including public housing units in mixed-
income developments), but the agency agrees that the
units other than public housing units in any mixed-
income developments (as such term is defined in section
221(c)(2)) shall be subject to any otherwise applicable
real property taxes imposed by the State, city, county
or other political subdivision.
(2) Effect of failure to exempt from taxation.--
Notwithstanding paragraph (1), a public housing agency that
does not comply with the requirements under such paragraph may
receive a block grant under this title, but only if the State,
city, county, or other political subdivision in which the
development is situated contributes, in the form of cash or tax
remission, the amount by which the taxes paid with respect to
the development exceed 10 percent of the gross rent and utility
cost charged in the development.
(f) Local Cooperation.--In recognition that there should be local
determination of the need for low-income housing to meet needs not
being adequately met by private enterprise, the Secretary may not make
any grant under this title to a public housing agency unless the
governing body of the locality involved has entered into an agreement
with the agency providing for the local cooperation required by the
Secretary pursuant to this title.
(g) Exception.--Notwithstanding subsection (a), the Secretary may
make a grant under this title for a public housing agency that is not
an eligible public housing agency but only for the period necessary to
secure, in accordance with this title, an alternative public housing
agency for the public housing of the ineligible agency.
(h) Recapture of Capital Assistance Amounts.--The Secretary may
recapture, from any grant amounts made available to a public housing
agency from the capital fund, any portion of such amounts that are not
used or obligated by the public housing agency for use for eligible
activities under section 203(a)(1) (or dedicated for use pursuant to
section 202(b)(2)(A)) before the expiration of the 24-month period
beginning upon the award of such grant to the agency.
SEC. 203. ELIGIBLE AND REQUIRED ACTIVITIES.
(a) Eligible Activities.--Except as provided in subsection (b) and in
section 202(b)(2), grant amounts allocated and provided from the
capital fund and grant amounts allocated and provided from the
operating fund may be used for the following activities:
(1) Capital fund activities.--Grant amounts from the capital
fund may be used for--
(A) the production and modernization of public
housing developments, including the redesign,
reconstruction, and reconfiguration of public housing
sites and buildings and the production of mixed-income
developments;
(B) vacancy reduction;
(C) addressing deferred maintenance needs and the
replacement of dwelling equipment;
(D) planned code compliance;
(E) management improvements;
(F) demolition and replacement under section 261;
(G) tenant relocation;
(H) capital expenditures to facilitate programs to
improve the economic empowerment and self-sufficiency
of public housing tenants; and
(I) capital expenditures to improve the security and
safety of residents.
(2) Operating fund activities.--Grant amounts from the
operating fund may be used for--
(A) procedures and systems to maintain and ensure the
efficient management and operation of public housing
units;
(B) activities to ensure a program of routine
preventative maintenance;
(C) anti-crime and anti-drug activities, including
the costs of providing adequate security for public
housing tenants;
(D) activities related to the provision of services,
including service coordinators for elderly persons or
persons with disabilities;
(E) activities to provide for management and
participation in the management of public housing by
public housing tenants;
(F) the costs associated with the operation and
management of mixed-income developments;
(G) the costs of insurance;
(H) the energy costs associated with public housing
units, with an emphasis on energy conservation;
(I) the costs of administering a public housing
community work program under section 105, including the
costs of any related insurance needs; and
(J) activities in connection with a homeownership
program for public housing residents under subtitle D,
including providing financing or assistance for
purchasing housing, or the provision of financial
assistance to resident management corporations or
resident councils to obtain training, technical
assistance, and educational assistance to promote
homeownership opportunities.
(b) Required Conversion of Assistance for Public Housing to Rental
Housing Assistance.--
(1) Requirement.--A public housing agency that receives grant
amounts under this title shall provide assistance in the form
of rental housing assistance under title III, or appropriate
site revitalization or other appropriate capital improvements
approved by the Secretary, in lieu of assisting the operation
and modernization of any building or buildings of public
housing, if the agency provides sufficient evidence to the
Secretary that the building or buildings--
(A) are on the same or contiguous sites;
(B) consist of more than 300 dwelling units;
(C) have a vacancy rate of at least 10 percent for
dwelling units not in funded, on-schedule modernization
programs;
(D) are identified as distressed housing for which
the public housing agency cannot assure the long-term
viability as public housing through reasonable
revitalization, density reduction, or achievement of a
broader range of household income; and
(E) have an estimated cost of continued operation and
modernization as public housing that exceeds the cost
of providing choice-based rental assistance under title
III for all families in occupancy, based on appropriate
indicators of cost (such as the percentage of the total
development cost required for modernization).
Public housing agencies shall identify properties that meet the
definition of subparagraphs (A) through (E) and shall consult
with the appropriate public housing residents and the
appropriate unit of general local government in identifying
such properties.
(2) Use of other amounts.--In addition to grant amounts under
this title attributable (pursuant to the formulas under section
204) to the building or buildings identified under paragraph
(1), the Secretary may use amounts provided in appropriation
Acts for choice-based housing assistance under title III for
families residing in such building or buildings or for
appropriate site revitalization or other appropriate capital
improvements approved by the Secretary.
(3) Enforcement.--The Secretary shall take appropriate action
to ensure conversion of any building or buildings identified
under paragraph (1) and any other appropriate action under this
subsection, if the public housing agency fails to take
appropriate action under this subsection.
(4) Failure of pha's to comply with conversion requirement.--
If the Secretary determines that--
(A) a public housing agency has failed under
paragraph (1) to identify a building or buildings in a
timely manner,
(B) a public housing agency has failed to identify
one or more buildings which the Secretary determines
should have been identified under paragraph (1), or
(C) one or more of the buildings identified by the
public housing agency pursuant to paragraph (1) should
not, in the determination of the Secretary, have been
identified under that paragraph,
the Secretary may identify a building or buildings for
conversion and take other appropriate action pursuant to this
subsection.
(5) Cessation of unnecessary spending.--Notwithstanding any
other provision of law, if, in the determination of the
Secretary, a building or buildings meets or is likely to meet
the criteria set forth in paragraph (1), the Secretary may
direct the public housing agency to cease additional spending
in connection with such building or buildings, except to the
extent that additional spending is necessary to ensure safe,
clean, and healthy housing until the Secretary determines or
approves an appropriate course of action with respect to such
building or buildings under this subsection.
(6) Use of budget authority.--Notwithstanding any other
provision of law, if a building or buildings are identified
pursuant to paragraph (1), the Secretary may authorize or
direct the transfer, to the choice-based or tenant-based
assistance program of such agency or to appropriate site
revitalization or other capital improvements approved by the
Secretary, of--
(A) in the case of an agency receiving assistance
under the comprehensive improvement assistance program,
any amounts obligated by the Secretary for the
modernization of such building or buildings pursuant to
section 14 of the United States Housing Act of 1937 (as
in effect immediately before the effective date of the
repeal under section 601(b));
(B) in the case of an agency receiving public housing
modernization assistance by formula pursuant to such
section 14, any amounts provided to the agency which
are attributable pursuant to the formula for allocating
such assistance to such building or buildings;
(C) in the case of an agency receiving assistance for
the major reconstruction of obsolete projects, any
amounts obligated by the Secretary for the major
reconstruction of such building or buildings pursuant
to section 5(j)(2) of the United States Housing Act of
1937, as in effect immediately before the effective
date of the repeal under section 601(b); and
(D) in the case of an agency receiving assistance
pursuant to the formulas under section 204, any amounts
provided to the agency which are attributable pursuant
to the formulas for allocating such assistance to such
building or buildings.
(7) Relocation Requirements.--Any public housing agency
carrying out conversion of public housing under this subsection
shall--
(A) notify the families residing in the public
housing development subject to the conversion, in
accordance with any guidelines issued by the Secretary
governing such notifications, that--
(i) the development will be removed from the
inventory of the public housing agency; and
(ii) the families displaced by such action
will receive choice-based housing assistance or
occupancy in a unit operated or assisted by the
public housing agency;
(B) ensure that each family that is a resident of the
development is relocated to other safe, clean, and
healthy affordable housing, which is, to the maximum
extent practicable, housing of the family's choice,
including choice-based assistance under title III
(provided that with respect to choice-based assistance,
the preceding requirement shall be fulfilled only upon
the relocation of such family into such housing);
(C) provide any necessary counseling for families
displaced by such action to facilitate relocation; and
(D) provide any reasonable relocation expenses for
families displaced by such action.
(8) Transition.--Any amounts made available to a public
housing agency to carry out section 202 of the Departments of
Veterans Affairs and Housing and Urban Development, and
Independent Agencies Appropriations Act, 1996 (enacted as
section 101(e) of Omnibus Consolidated Rescissions and
Appropriations Act of 1996 (Public Law 104-134; 110 Stat. 1321-
279)) may be used to carry out this section. The Secretary
shall provide for public housing agencies to conform and
continue actions taken under such section 202 in accordance
with the requirements under this section.
(c) Extension of Deadlines.--The Secretary may, for a public housing
agency, extend any deadline established pursuant to this section or a
local housing management plan for up to an additional 5 years if the
Secretary makes a determination that the deadline is impracticable.
(d) Compliance With Plan.--The local housing management plan
submitted by a public housing agency (including any amendments to the
plan), unless determined under section 107 not to comply with the
requirements under section 106, shall be binding upon the Secretary and
the public housing agency and the agency shall use any grant amounts
provided under this title for eligible activities under subsection (a)
in accordance with the plan. This subsection may not be construed to
preclude changes or amendments to the plan, as authorized under section
107 or any actions authorized by this Act to be taken without regard to
a local housing management plan.
SEC. 204. DETERMINATION OF GRANT ALLOCATION.
(a) In General.--For each fiscal year, after reserving amounts under
section 111 from the aggregate amount made available for the fiscal
year for carrying out this title, the Secretary shall allocate any
remaining amounts among eligible public housing agencies in accordance
with this section, so that the sum of all of the allocations for all
eligible authorities is equal to such remaining amount.
(b) Allocation Amount.--The Secretary shall determine the amount of
the allocation for each eligible public housing agency, which shall
be--
(1) for any fiscal year beginning after the enactment of a
law containing the formulas described in paragraphs (1) and (2)
of subsection (c), the sum of the amounts determined for the
agency under each such formula; or
(2) for any fiscal year beginning before the expiration of
such period, the sum of--
(A) the operating allocation determined under
subsection (d)(1) for the agency; and
(B) the capital improvement allocation determined
under subsection (d)(2) for the agency.
(c) Permanent Allocation Formulas for Capital and Operating Funds.--
(1) Establishment of capital fund formula.--The formula under
this paragraph shall provide for allocating assistance under
the capital fund for a fiscal year. The formula may take into
account such factors as--
(A) the number of public housing dwelling units owned
or operated by the public housing agency, the
characteristics and locations of the developments, and
the characteristics of the families served and to be
served (including the incomes of the families);
(B) the need of the public housing agency to carry
out rehabilitation and modernization activities, and
reconstruction, production, and demolition activities
related to public housing dwelling units owned or
operated by the public housing agency, including
backlog and projected future needs of the agency;
(C) the cost of constructing and rehabilitating
property in the area; and
(D) the need of the public housing agency to carry
out activities that provide a safe and secure
environment in public housing units owned or operated
by the public housing agency.
(2) Establishment of operating fund formula.--
(A) In general.--The formula under this paragraph
shall provide for allocating assistance under the
operating fund for a fiscal year. The formula may take
into account such factors as--
(i) standards for the costs of operating and
reasonable projections of income, taking into
account the characteristics and locations of
the public housing developments and
characteristics of the families served and to
be served (including the incomes of the
families), or the costs of providing comparable
services as determined in accordance with
criteria or a formula representing the
operations of a prototype well-managed public
housing development;
(ii) the number of public housing dwelling
units owned or operated by the public housing
agency;
(iii) the need of the public housing agency
to carry out anti-crime and anti-drug
activities, including providing adequate
security for public housing residents; and
(iv) any record by the public housing agency
of exemplary performance in the operation of
public housing.
(B) Incentive to increase income.--The formula shall
provide an incentive to encourage public housing
agencies to increase nonrental income and to increase
rental income attributable to their units by
encouraging occupancy by families whose incomes have
increase while in occupancy and newly admitted
families. Any such incentive shall provide that the
agency shall derive the full benefit of any increase in
nonrental or rental income, and such increase shall not
result in a decrease in amounts provided to the agency
under this title. In addition, an agency shall be
permitted to retain, from each fiscal year, the full
benefit of such an increase in nonrental or rental
income, except to the extent that such benefit exceeds
(i) 100 percent of the total amount of the operating
allocation for which the agency is eligible under this
section, and (ii) the maximum balance permitted for the
agency's operating reserve under this section and any
regulations issued under this section.
(C) Treatment of utility rates.--The formula shall
not take into account the amount of any cost reductions
for a public housing agency due to the difference
between projected and actual utility rates attributable
to actions that are taken by the agency which lead to
such reductions, as determined by the Secretary. In the
case of any public housing agency that receives
financing from any person or entity other than the
Secretary or enters into a performance contract to
undertake energy conservation improvements in a public
housing development, under which the payment does not
exceed the cost of the energy saved as a result of the
improvements during a reasonable negotiated contract
period, the formula shall not take into account the
amount of any cost reductions for the agency due to the
differences between projected and actual utility
consumption attributable to actions that are taken by
the agency which lead to such reductions, as determined
by the Secretary. Notwithstanding the preceding 2
sentences, after the expiration of the 10-year period
beginning upon the savings initially taking effect, the
Secretary may reduce the amount allocated to the agency
under the formula by up to 50 percent of such
differences.
(3) Consideration of performance, costs, and other factors.--
The formulas under paragraphs (1) and (2) should each reward
performance and may each consider appropriate factors that
reflect the different characteristics and sizes of public
housing agencies, the relative needs, revenues, costs, and
capital improvements of agencies, and the relative costs to
agencies of operating a well-managed agency that meets the
performance targets for the agency established in the local
housing management plan for the agency.
(4) Development under negotiated rulemaking procedure.--The
formulas under this subsection shall be developed according to
procedures for issuance of regulations under the negotiated
rulemaking procedure under subchapter III of chapter 5 of title
5, United States Code, except that the formulas shall not be
contained in a regulation.
(5) Report.--Not later than the expiration of the 12-month
period beginning upon the enactment of this Act, the Secretary
shall submit a report to the Congress containing the proposed
formulas established pursuant to paragraph (4) that meets the
requirements of this subsection.
(d) Interim Allocation Requirements.--
(1) Operating allocation.--
(A) Applicability to appropriated amounts.--Of any
amounts available for allocation under this subsection
for a fiscal year, an amount shall be used only to
provide amounts for operating allocations under this
paragraph for eligible public housing agencies that
bears the same ratio to such total amount available for
allocation that the amount appropriated for fiscal year
1997 for operating subsidies under section 9 of the
United States Housing Act of 1937 bears to the sum of
such operating subsidy amounts plus the amounts
appropriated for such fiscal year for modernization
under section 14 of such Act.
(B) Determination.--The operating allocation under
this paragraph for a public housing agency for a fiscal
year shall be an amount determined by applying, to the
amount to be allocated under this paragraph, the
formula used for determining the distribution of
operating subsidies for fiscal year 1997 to public
housing agencies (as modified under subparagraphs (C)
and (D)) under section 9 of the United States Housing
Act of 1937, as in effect immediately before the
effective date of the repeal under section 601(b).
(C) Treatment of chronically vacant units.--The
Secretary shall revise the formula referred to in
subparagraph (B) so that the formula does not provide
any amounts, other than utility costs and other
necessary costs (such as costs necessary for the
protection of persons and property), attributable to
any dwelling unit of a public housing agency that has
been vacant continuously for 6 or more months. A unit
shall not be considered vacant for purposes of this
paragraph if the unit is unoccupied because of
rehabilitation or renovation that is on schedule.
(D) Treatment of increases in income.--The Secretary
shall revise the formula referred to in subparagraph
(B) to provide an incentive to encourage public housing
agencies to increase nonrental income and to increase
rental income attributable to their units by
encouraging occupancy by families whose incomes have
increased while in occupancy and newly admitted
families. Any such incentive shall provide that the
agency shall derive the full benefit of any increase in
nonrental or rental income, and such increase shall not
result in a decrease in amounts provided to the agency
under this title. In addition, an agency shall be
permitted to retain, from each fiscal year, the full
benefit of such an increase in nonrental or rental
income, except that such benefit may not be retained
if--
(i) the agency's operating allocation equals
100 percent of the amount for which it is
eligible under section 9 of the United States
Housing Act of 1937, as in effect immediately
before the effective date of the repeal under
section 601(b) of this Act; and
(ii) the agency's operating reserve balance
is equal to the maximum amount permitted under
section 9 of the United States Housing Act of
1937, as in effect immediately before the
effective date of the repeal under section
601(b) of this Act.
(2) Capital improvement allocation.--
(A) Applicability to appropriated amounts.--Of any
amounts available for allocation under this subsection
for a fiscal year, an amount shall be used only to
provide amounts for capital improvement allocations
under this paragraph for eligible public housing
agencies that bears the same ratio to such total amount
available for allocation that the amount appropriated
for fiscal year 1997 for modernization under section 14
of the United States Housing Act of 1937 bears to the
sum of such modernization amounts plus the amounts
appropriated for such fiscal year for operating
subsidies under section 9 of such Act.
(B) Determination.--The capital improvement
allocation under this paragraph for an eligible public
housing agency for a fiscal year shall be determined by
applying, to the amount to be allocated under this
paragraph, the formula used for determining the
distribution of modernization assistance for fiscal
year 1997 to public housing agencies under section 14
of the United States Housing Act of 1937, as in effect
immediately before the effective date of the repeal
under section 601(b), except that the Secretary shall
establish a method for taking into consideration
allocation of amounts under the comprehensive
improvement assistance program.
(e) Eligibility of Units Acquired From Proceeds of Sales Under
Demolition or Disposition Plan.--If a public housing agency uses
proceeds from the sale of units under a homeownership program in
accordance with section 251 to acquire additional units to be sold to
low-income families, the additional units shall be counted as public
housing for purposes of determining the amount of the allocation to the
agency under this section until sale by the agency, but in any case no
longer than 5 years.
SEC. 205. SANCTIONS FOR IMPROPER USE OF AMOUNTS.
(a) In General.--In addition to any other actions authorized under
this title, if the Secretary finds pursuant to an audit under section
541 that a public housing agency receiving grant amounts under this
title has failed to comply substantially with any provision of this
title, the Secretary may--
(1) terminate payments under this title to the agency;
(2) withhold from the agency amounts from the total
allocation for the agency pursuant to section 204;
(3) reduce the amount of future grant payments under this
title to the agency by an amount equal to the amount of such
payments that were not expended in accordance with this title;
(4) limit the availability of grant amounts provided to the
agency under this title to programs, projects, or activities
not affected by such failure to comply;
(5) withhold from the agency amounts allocated for the agency
under title III; or
(6) order other corrective action with respect to the agency.
(b) Termination of Compliance Action.--If the Secretary takes action
under subsection (a) with respect to a public housing agency, the
Secretary shall--
(1) in the case of action under subsection (a)(1), resume
payments of grant amounts under this title to the agency in the
full amount of the total allocation under section 204 for the
agency at the time that the Secretary first determines that the
agency will comply with the provisions of this title;
(2) in the case of action under paragraph (2), (5), or (6) of
subsection (a), make withheld amounts available as the
Secretary considers appropriate to ensure that the agency
complies with the provisions of this title; or
(3) in the case of action under subsection (a)(4), release
such restrictions at the time that the Secretary first
determines that the agency will comply with the provisions of
this title.
Subtitle B--Admissions and Occupancy Requirements
SEC. 221. LOW-INCOME HOUSING REQUIREMENT.
(a) Production Assistance.--Any public housing produced using amounts
provided under a grant under this title or under the United States
Housing Act of 1937 shall be operated as public housing for the 40-year
period beginning upon such production.
(b) Operating Assistance.--No portion of any public housing
development operated with amounts from a grant under this title or
operating assistance provided under the United States Housing Act of
1937 may be disposed of before the expiration of the 10-year period
beginning upon the conclusion of the fiscal year for which the grant or
such assistance was provided, except as provided in this Act.
(c) Capital Improvements Assistance.--Amounts may be used for
eligible activities under section 203(a)(1) only for the following
housing developments:
(1) Low-income developments.--Amounts may be used for a low-
income housing development that--
(A) is owned by public housing agencies;
(B) is operated as low-income rental housing and
produced or operated with assistance provided under a
grant under this title; and
(C) is consistent with the purposes of this title.
Any development, or portion thereof, referred to in this
paragraph for which activities under section 203(a)(1) are
conducted using amounts from a grant under this title shall be
maintained and used as public housing for the 20-year period
beginning upon the receipt of such grant. Any public housing
development, or portion thereof, that received the benefit of a
grant pursuant to section 14 of the United States Housing Act
of 1937 shall be maintained and used as public housing for the
20-year period beginning upon receipt of such amounts.
(2) Mixed income developments.--Amounts may be used for
eligible activities under section 203(a)(1) for mixed-income
developments, which shall be a housing development that--
(A) contains dwelling units that are available for
occupancy by families other than low-income families;
(B) contains a number of dwelling units--
(i) which units are made available (by master
contract or individual lease) for occupancy
only by low- and very low-income families
identified by the public housing agency;
(ii) which number is not less than a
reasonable number of units, including related
amenities, taking into account the amount of
the assistance provided by the agency compared
to the total investment (including costs of
operation) in the development;
(iii) which units are subject to the
statutory and regulatory requirements of the
public housing program, except that the
Secretary may grant appropriate waivers to such
statutory and regulatory requirements if
reductions in funding or other changes to the
program make continued application of such
requirements impracticable;
(iv) which units are specially designated as
dwelling units under this subparagraph, except
the equivalent units in the development may be
substituted for designated units during the
period the units are subject to the
requirements of the public housing program; and
(v) which units shall be eligible for
assistance under this title; and
(C) is owned by the public housing agency, an
affiliate controlled by it, or another appropriate
entity.
Notwithstanding any other provision of this title, to
facilitate the establishment of socioeconomically mixed
communities, a public housing agency that uses grant amounts
under this title for a mixed income development under this
paragraph may, to the extent that income from such a
development reduces the amount of grant amounts used for
operating or other costs relating to public housing, use such
resulting savings to rent privately developed dwelling units in
the neighborhood of the mixed income development. Such units
shall be made available for occupancy only by low-income
families eligible for residency in public housing.
SEC. 222. FAMILY ELIGIBILITY.
(a) In General.--Dwelling units in public housing may be rented only
to families who are low-income families at the time of their initial
occupancy of such units.
(b) Income Mix Within Developments.--A public housing agency may
establish and utilize income-mix criteria for the selection of
residents for dwelling units in public housing developments that limit
admission to a development by selecting applicants having incomes
appropriate so that the mix of incomes of families occupying the
development at any time is proportional to the income mix in the
eligible population of the jurisdiction of the agency at such time, as
adjusted to take into consideration the severity of housing need. Any
criteria established under this subsection shall be subject to the
provisions of subsection (c).
(c) Income Mix.--
(1) PHA income mix.--Of the public housing dwelling units of
a public housing agency made available for occupancy by
eligible families, not less than 35 percent shall be occupied
by families whose incomes at the time of occupancy do not
exceed 30 percent of the area median income, as determined by
the Secretary with adjustments for smaller and larger families,
except that the Secretary, may for purposes of this subsection,
establish income ceilings higher or lower than 30 percent of
the median for the area on the basis of the Secretary's
findings that such variations are necessary because of
unusually high or low family incomes. This paragraph may not be
construed to create any authority on the part of any public
housing agency to evict any family residing in public housing
solely because of the income of the family or because of any
noncompliance or overcompliance with the requirement of this
paragraph.
(2) Prohibition of concentration of low-income families.--A
public housing agency may not, in complying with the
requirements under paragraph (1), concentrate very low-income
families (or other families with relatively low incomes) in
public housing dwelling units in certain public housing
developments or certain buildings within developments. The
Secretary may review the income and occupancy characteristics
of the public housing developments, and the buildings of such
developments, of public housing agencies to ensure compliance
with the provisions of this paragraph.
(3) Fungibility with choice-based assistance.--If, during a
fiscal year, a public housing agency provides choice-based
housing assistance under title III for a number of low-income
families, who are initially assisted by the agency in such year
and have incomes described in section 321(b) (relating to
income targeting), which exceeds the number of families that is
required for the agency to comply with the percentage
requirement under such section 321(b) for such fiscal year,
notwithstanding paragraph (1) of this subsection, the number of
public housing dwelling units that the agency must otherwise
make available in accordance with such paragraph to comply with
the percentage requirement under such paragraph shall be
reduced by such excess number of families for such fiscal year.
(d) Waiver of Eligibility Requirements for Occupancy by Police
Officers.--
(1) Authority and waiver.--To the extent necessary to provide
occupancy in public housing dwelling units to police officers
and other law enforcement or security personnel (who are not
otherwise eligible for residence in public housing) and to
increase security for other public housing residents in
developments where crime has been a problem, a public housing
agency may, with respect to such units and subject to paragraph
(2)--
(A) waive--
(i) the provisions of subsection (a) of this
section and section 225(a); and
(ii) the applicability of--
(I) any preferences for occupancy
established under section 223;
(II) the minimum rental amount
established pursuant to section 225(c)
and any maximum monthly rental amount
established pursuant to section 225(b);
(III) any criteria relating to income
mix within developments established
under subsection (b);
(IV) the income mix requirements
under subsection (c); and
(V) any other occupancy limitations
or requirements; and
(B) establish special rent requirements and other
terms and conditions of occupancy.
(2) Conditions of waiver.--A public housing agency may take
the actions authorized in paragraph (1) only if agency
determines that such actions will increase security in the
public housing developments involved and will not result in a
significant reduction of units available for residence by low-
income families.
SEC. 223. PREFERENCES FOR OCCUPANCY.
(a) Authority To Establish.--Each public housing agency may establish
a system for making dwelling units in public housing available for
occupancy that provides preference for such occupancy to families
having certain characteristics.
(b) Content.--Each system of preferences established pursuant to this
section shall be based upon local housing needs and priorities, as
determined by the public housing agency using generally accepted data
sources, including any information obtained pursuant to an opportunity
for public comment as provided under section 106(e) and under the
requirements applicable to the comprehensive housing affordability
strategy for the relevant jurisdiction.
(c) Sense of the Congress.--It is the sense of the Congress that, to
the greatest extent practicable, public housing agencies involved in
the selection of tenants under the provisions of this title should
adopt preferences for individuals who are victims of domestic violence.
SEC. 224. ADMISSION PROCEDURES.
(a) Admission Requirements.--A public housing agency shall ensure
that each family residing in a public housing development owned or
administered by the agency is admitted in accordance with the
procedures established under this title by the agency and the income
limits under section 222.
(b) Notification of Application Decisions.--A public housing agency
shall establish procedures designed to provide for notification to an
applicant for admission to public housing of the determination with
respect to such application, the basis for the determination, and, if
the applicant is determined to be eligible for admission, the projected
date of occupancy (to the extent such date can reasonably be
determined). If an agency denies an applicant admission to public
housing, the agency shall notify the applicant that the applicant may
request an informal hearing on the denial within a reasonable time of
such notification.
(c) Site-Based Waiting Lists.--A public housing agency may establish
procedures for maintaining waiting lists for admissions to public
housing developments of the agency, which may include (notwithstanding
any other law, regulation, handbook, or notice to the contrary) a
system of site-based waiting lists whereby applicants may apply
directly at or otherwise designate the development or developments in
which they seek to reside. All such procedures shall comply with all
provisions of title VI of the Civil Rights Act of 1964, the Fair
Housing Act, and other applicable civil rights laws.
(d) Confidentiality for Victims of Domestic Violence.--A public
housing agency shall be subject to the restrictions regarding release
of information relating to the identity and new residence of any family
in public housing that was a victim of domestic violence that are
applicable to shelters pursuant to the Family Violence Prevention and
Services Act. The agency shall work with the United States Postal
Service to establish procedures consistent with the confidentiality
provisions in the Violence Against Women Act of 1994.
(e) Transfers.--A public housing agency may apply, to each public
housing resident seeking to transfer from one development to another
development owned or operated by the agency, the screening procedures
applicable at such time to new applicants for public housing.
SEC. 225. FAMILY CHOICE OF RENTAL PAYMENT.
(a) Rental Contribution by Resident.--A family residing in a public
housing dwelling shall pay as monthly rent for the unit the amount
determined under paragraph (1) or (2) of subsection (b), subject to the
requirement under subsection (c). Each public housing agency shall
provide for each family residing in a public housing dwelling unit
owned or administered by the agency to elect annually whether the rent
paid by such family shall be determined under paragraph (1) or (2) of
subsection (b).
(b) Allowable Rent Structures.--
(1) Flat rents.--Each public housing agency shall establish,
for each dwelling unit in public housing owned or administered
by the agency, a flat rental amount for the dwelling unit,
which shall--
(A) be based on the rental value of the unit, as
determined by the public housing agency; and
(B) be designed in accordance with subsection (e) so
that the rent structures do not create a disincentive
for continued residency in public housing by families
who are attempting to become economically self-
sufficient through employment or who have attained a
level of self-sufficiency through their own efforts.
The rental amount for a dwelling unit shall be considered to
comply with the requirements of this paragraph if such amount
does not exceed the actual monthly costs to the public housing
agency attributable to providing and operating the dwelling
unit. The preceding sentence may not be construed to require
establishment of rental amounts equal to or based on operating
costs or to prevent public housing agencies from developing
flat rents required under this paragraph in any other manner
that may comply with this paragraph.
(2) Income-based rents.--The monthly rental amount determined
under this paragraph for a family shall be an amount,
determined by the public housing agency, that does not exceed
the greatest of the following amounts (rounded to the nearest
dollar):
(A) 30 percent of the monthly adjusted income of the
family.
(B) 10 percent of the monthly income of the family.
(C) If the family is receiving payments for welfare
assistance from a public agency and a part of such
payments, adjusted in accordance with the actual
housing costs of the family, is specifically designated
by such agency to meet the housing costs of the family,
the portion of such payments that is so designated.
Nothing in this paragraph may be construed to require a public
housing agency to charge a monthly rent in the maximum amount
permitted under this paragraph.
(c) Minimum Rental Amount.--Notwithstanding the method for rent
determination elected by a family pursuant to subsection (a), each
public housing agency shall require that the monthly rent for each
dwelling unit in public housing owned or administered by the agency
shall not be less than a minimum amount (which amount shall include any
amount allowed for utilities), which shall be an amount determined by
the agency that is not less than $25 nor more than $50.
(d) Hardship Provisions.--
(1) Minimum rental.--
(A) In general.--Notwithstanding subsection (c), a
public housing agency shall grant an exemption from
application of the minimum monthly rental under such
subsection to any family unable to pay such amount
because of financial hardship, which shall include
situations in which (i) the family has lost eligibility
for or is awaiting an eligibility determination for a
Federal, State, or local assistance program; (ii) the
family would be evicted as a result of the imposition
of the minimum rent requirement under subsection (c);
(iii) the income of the family has decreased because of
changed circumstance, including loss of employment; and
(iv) a death in the family has occurred; and other
situations as may be determined by the agency.
(B) Waiting period.--If a resident requests a
hardship exemption under this paragraph and the public
housing agency reasonably determines the hardship to be
of a temporary nature, an exemption shall not be
granted during the 90-day period beginning upon the
making of a request for the exemption. A resident may
not be evicted during such 90-day period for nonpayment
of rent. In such a case, if the resident thereafter
demonstrates that the financial hardship is of a long-
term basis, the agency shall retroactively exempt the
resident from the applicability of the minimum rent
requirement for such 90-day period.
(2) Switching rent determination methods.--Notwithstanding
subsection (a), in the case of a family that has elected to pay
rent in the amount determined under subsection (b)(1), a public
housing agency shall provide for the family to pay rent in the
amount determined under subsection (b)(2) during the period for
which such election was made if the family is unable to pay
theamount determined under subsection (b)(1) because of financial
hardship, including--
(A) situations in which the income of the family has
decreased because of changed circumstances, loss of
reduction of employment, death in the family, and
reduction in or loss of income or other assistance;
(B) an increase, because of changed circumstances, in
the family's expenses for--
(i) medical costs;
(ii) child care;
(iii) transportation;
(iv) education; or
(v) similar items; and
(C) such other situations as may be determined by the
agency.
(e) Encouragement of Self-Sufficiency.--The rental policy developed
by each public housing agency shall encourage and reward employment and
economic self-sufficiency.
(f) Income Reviews.--Each public housing agency shall review the
income of each family occupying a dwelling unit in public housing owned
or administered by the agency not less than annually, except that, in
the case of families that are paying rent in the amount determined
under subsection (b)(1), the agency shall review the income of such
family not less than once every 3 years.
(g) Disallowance of Earned Income From Rent Determinations.--
(1) In general.--Notwithstanding any other provision of law,
the rent payable under this section by a family whose income
increases as a result of employment of a member of the family
who was previously unemployed for 1 or more years (including a
family whose income increases as a result of the participation
of a family member in any family self-sufficiency or other job
training program) may not be increased as a result of the
increased income due to such employment during the 18-month
period beginning on the date on which the employment is
commenced.
(2) Phase-in of rent increases.--After the expiration of the
18-month period referred to in paragraph (1), rent increases
due to the continued employment of the family member described
in paragraph (1) shall be phased in over a subsequent 3-year
period.
(3) Transition.--Notwithstanding the provisions of paragraphs
(1) and (2), any resident of public housing participating in
the program under the authority contained in the undesignated
paragraph at the end of section 3(c)(3) of the United States
Housing Act of 1937 (as in effect before the effective date of
the repeal under section 601(b) of this Act) shall be governed
by such authority after such date.
(h) Phase-In of Rent Contribution Increases After Effective Date.--
(1) In general.--Except as provided in paragraph (2), for any
family residing in a dwelling unit in public housing upon the
effective date of this Act, if the monthly contribution for
rental of an assisted dwelling unit to be paid by the family
upon initial applicability of this title is greater than the
amount paid by the family under the provisions of the United
States Housing Act of 1937 immediately before such
applicability, any such resulting increase in rent contribution
shall be--
(A) phased in equally over a period of not less than
3 years, if such increase is 30 percent or more of such
contribution before initial applicability; and
(B) limited to not more than 10 percent per year if
such increase is more than 10 percent but less than 30
percent of such contribution before initial
applicability.
(2) Exception.--The minimum rental amount under subsection
(c) shall apply to each family described in paragraph (1) of
this subsection, notwithstanding such paragraph.
SEC. 226. LEASE REQUIREMENTS.
In renting dwelling units in a public housing development, each
public housing agency shall utilize leases that--
(1) do not contain unreasonable terms and conditions;
(2) obligate the public housing agency to maintain the
development in compliance with the housing quality requirements
under section 232;
(3) require the public housing agency to give adequate
written notice of termination of the lease, which shall not be
less than--
(A) the period provided under the applicable law of
the jurisdiction or 14 days, whichever is less, in the
case of nonpayment of rent;
(B) a reasonable period of time, but not to exceed 14
days, when the health or safety of other residents or
public housing agency employees is threatened; and
(C) the period of time provided under the applicable
law of the jurisdiction, in any other case;
(4) contain the provisions required under sections 642 and
643 (relating to limitations on occupancy in federally assisted
housing); and
(5) specify that, with respect to any notice of eviction or
termination, notwithstanding any State law, a public housing
resident shall be informed of the opportunity, prior to any
hearing or trial, to examine any relevant documents, records or
regulations directly related to the eviction or termination.
SEC. 227. DESIGNATED HOUSING FOR ELDERLY AND DISABLED FAMILIES.
(a) Authority To Provide Designated Housing.--
(1) In general.--Subject only to provisions of this section
and notwithstanding any other provision of law, a public
housing agency for which the information required under
subsection (d) is in effect may provide public housing
developments (or portions of developments) designated for
occupancy by (A) only elderly families, (B) only disabled
families, or (C) elderly and disabled families.
(2) Priority for occupancy.--In determining priority for
admission to public housing developments (or portions of
developments) that are designated for occupancy as provided in
paragraph (1), the public housing agency may make units in such
developments (or portions) available only to the types of
families for whom the development is designated.
(3) Eligibility of near-elderly families.--If a public
housing agency determines that there are insufficient numbers
of elderly families to fill all the units in a development (or
portion of a development) designated under paragraph (1) for
occupancy by only elderly families, the agency may provide that
near-elderly families may occupy dwelling units in the
development (or portion).
(b) Standards Regarding Evictions.--Except as provided in subtitle C
of title VI, any tenant who is lawfully residing in a dwelling unit in
a public housing development may not be evicted or otherwise required
to vacate such unit because of the designation of the development (or
portion of a development) pursuant to this section or because of any
action taken by the Secretary or any public housing agency pursuant to
this section.
(c) Relocation Assistance.--A public housing agency that designates
any existing development or building, or portion thereof, for occupancy
as provided under subsection (a)(1) shall provide, to each person and
family who agrees to be relocated in connection with such designation--
(1) notice of the designation and an explanation of available
relocation benefits, as soon as is practicable for the agency
and the person or family;
(2) access to comparable housing (including appropriate
services and design features), which may include choice-based
rental housing assistance under title III, at a rental rate
paid by the tenant that is comparable to that applicable to the
unit from which the person or family has vacated; and
(3) payment of actual, reasonable moving expenses.
(d) Required Inclusions in Local Housing Management Plan.--A public
housing agency may designate a development (or portion of a
development) for occupancy under subsection (a)(1) only if the agency,
as part of the agency's local housing management plan--
(1) establishes that the designation of the development is
necessary--
(A) to achieve the housing goals for the jurisdiction
under the comprehensive housing affordability strategy
under section 105 of the Cranston-Gonzalez National
Affordable Housing Act; or
(B) to meet the housing needs of the low-income
population of the jurisdiction; and
(2) includes a description of--
(A) the development (or portion of a development) to
be designated;
(B) the types of tenants for which the development is
to be designated;
(C) any supportive services to be provided to tenants
of the designated development (or portion);
(D) how the design and related facilities (as such
term is defined in section 202(d)(8) of the Housing Act
of 1959) of the development accommodate the special
environmental needs of the intended occupants; and
(E) any plans to secure additional resources or
housing assistance to provide assistance to families
that may have been housed if occupancy in the
development were not restricted pursuant to this
section.
For purposes of this subsection, the term ``supportive services'' means
services designed to meet the special needs of residents.
Notwithstanding section 107, the Secretary may approve a local housing
management plan without approving the portion of the plan covering
designation of a development pursuant to this section.
(e) Effectiveness.--
(1) Initial 5-year effectiveness.--The information required
under subsection (d) shall be in effect for purposes of this
section during the 5-year period that begins upon notification
under section 107(a) of the public housing agency that the
information complies with the requirements under section 106
and this section.
(2) Renewal.--Upon the expiration of the 5-year period under
paragraph (1) or any 2-year period under this paragraph, an
agency may extend the effectiveness of the designation and
information for an additional 2-year period (that begins upon
such expiration) by submitting to the Secretary any information
needed to update the information. The Secretary may not limit
the number of times a public housing agency extends the
effectiveness of a designation and information under this
paragraph.
(3) Treatment of existing plans.--Notwithstanding any other
provision of this section, a public housing agency shall be
considered to have submitted the information required under
this section if the agency has submitted to the Secretary an
application and allocation plan under section 7 of the United
States Housing Act of 1937 (as in effect before the effective
date of the repeal under section 601(b) of this Act) that has
not been approved or disapproved before such effective date.
(4) Transition provision.--Any application and allocation
plan approved under section 7 of the United States Housing Act
of 1937 (as in effect before the effective date of the repeal
under section 601(b) of this Act) before such effective date
shall be considered to be the information required to be
submitted under this section and that is in effect for purposes
of this section for the 5-year period beginning upon such
approval.
(f) Inapplicability of Uniform Relocation Assistance and Real
Property Acquisitions Policy Act of 1970.--No resident of a public
housing development shall be considered to be displaced for purposes of
the Uniform Relocation Assistance and Real Property Acquisitions Policy
Act of 1970 because of the designation of any existing development or
building, or portion thereof, for occupancy as provided under
subsection (a) of this section.
(g) Use of Amounts.--Any amounts appropriated pursuant to section
10(b) of the Housing Opportunity Program Extension Act of 1996 (Public
Law 104-120) may also be used for choice-based rental housing
assistance under title III for public housing agencies to implement
this section.
Subtitle C--Management
SEC. 231. MANAGEMENT PROCEDURES.
(a) Sound Management.--A public housing agency that receives grant
amounts under this title shall establish and comply with procedures and
practices sufficient to ensure that the public housing developments
owned or administered by the agency are operated in a sound manner.
(b) Accounting System for Rental Collections and Costs.--
(1) Establishment.--Each public housing agency that receives
grant amounts under this title shall establish and maintain a
system of accounting for rental collections and costs
(including administrative, utility, maintenance, repair, and
other operating costs) for each project and operating cost
center (as determined by the Secretary).
(2) Access to records.--Each public housing agency shall make
available to the general public the information required
pursuant to paragraph (1) regarding collections and costs.
(3) Exemption.--The Secretary may permit authorities owning
or operating fewer than 500 dwelling units to comply with the
requirements of this subsection by accounting on an agency-wide
basis.
(c) Management by Other Entities.--Except as otherwise provided under
this Act, a public housing agency may contract with any other entity to
perform any of the management functions for public housing owned or
operated by the public housing agency.
SEC. 232. HOUSING QUALITY REQUIREMENTS.
(a) In General.--Each public housing agency that receives grant
amounts under this Act shall maintain its public housing in a condition
that complies--
(1) in the case of public housing located in a jurisdiction
which has in effect laws, regulations, standards, or codes
regarding habitability of residential dwellings, with such
applicable laws, regulations, standards, or codes; or
(2) in the case of public housing located in a jurisdiction
which does not have in effect laws, regulations, standards, or
codes described in paragraph (1), with the housing quality
standards established under subsection (b).
(b) Federal Housing Quality Standards.--The Secretary shall establish
housing quality standards under this subsection that ensure that public
housing dwelling units are safe, clean, and healthy. Such standards
shall include requirements relating to habitability, including
maintenance, health and sanitation factors, condition, and construction
of dwellings, and shall, to the greatest extent practicable, be
consistent with the standards established under section 328(c). The
Secretary shall differentiate between major and minor violations of
such standards.
(c) Determinations.--Each public housing agency providing housing
assistance shall identify, in the local housing management plan of the
agency, whether the agency is utilizing the standard under paragraph
(1) or (2) of subsection (a).
(d) Annual Inspections.--Each public housing agency that owns or
operates public housing shall make an annual inspection of each public
housing development to determine whether units in the development are
maintained in accordance with the requirements under subsection (a).
The agency shall retain the results of such inspections and, upon the
request of the Secretary, the Inspector General for the Department of
Housing and Urban Development, or any auditor conducting an audit under
section 541, shall make such results available.
SEC. 233. EMPLOYMENT OF RESIDENTS.
Section 3 of the Housing and Urban Development Act of 1968 (12 U.S.C.
1701u) is amended--
(1) in subsection (c)(1)--
(A) in subparagraph (A)--
(i) by striking ``public and Indian housing
agencies'' and inserting ``public housing
agencies and recipients of grants under the
Native American Housing Assistance and Self-
Determination Act of 1996''; and
(ii) by striking ``development assistance''
and all that follows through the end and
inserting ``assistance provided under title II
of the Housing Opportunity and Responsibility
Act of 1997 and used for the housing
production, operation, or capital needs.''; and
(B) in subparagraph (B)(ii), by striking ``managed by
the public or Indian housing agency'' and inserting
``assisted by the public housing agency or the
recipient of a grant under the Native American Housing
Assistance and Self-Determination Act of 1996''; and
(2) in subsection (d)(1)--
(A) in subparagraph (A)--
(i) by striking ``public and Indian housing
agencies'' and inserting ``public housing
agencies and recipients of grants under the
Native American Housing Assistance and Self-
Determination Act of 1996''; and
(ii) by striking ``development assistance''
and all that follows through ``section 14 of
that Act'' and inserting ``assistance provided
under title II of the Housing Opportunity and
Responsibility Act of 1997 and used for the
housing production, operation, or capital
needs''; and
(B) in subparagraph (B)(ii), by striking ``operated
by the public or Indian housing agency'' and inserting
``assisted by the public housing agency or the
recipient of a grant under the Native American Housing
Assistance and Self-Determination Act of 1996''.
SEC. 234. RESIDENT COUNCILS AND RESIDENT MANAGEMENT CORPORATIONS.
(a) Resident Councils.--The residents of a public housing development
may establish a resident council for the development for purposes of
consideration of issues relating to residents, representation of
resident interests, and coordination and consultation with a public
housing agency. A resident council shall be an organization or
association that--
(1) is nonprofit in character;
(2) is representative of the residents of the eligible
housing;
(3) adopts written procedures providing for the election of
officers on a regular basis; and
(4) has a democratically elected governing board, which is
elected by the residents of the eligible housing on a regular
basis.
(b) Resident Management Corporations.--
(1) Establishment.--The residents of a public housing
development may establish a resident management corporation for
the purpose of assuming the responsibility for the management
of the development under section 235 or purchasing a
development.
(2) Requirements.--A resident management corporation shall be
a corporation that--
(A) is nonprofit in character;
(B) is organized under the laws of the State in which
the development is located;
(C) has as its sole voting members the residents of
the development; and
(D) is established by the resident council for the
development or, if there is not a resident council, by
a majority of the households of the development.
SEC. 235. MANAGEMENT BY RESIDENT MANAGEMENT CORPORATION.
(a) Authority.--A public housing agency may enter into a contract
under this section with a resident management corporation to provide
for the management of public housing developments by the corporation.
(b) Contract.--A contract under this section for management of public
housing developments by a resident management corporation shall
establish the respective management rights and responsibilities of the
corporation and the public housing agency. The contract shall be
consistent with the requirements of this Act applicable to public
housing development and may include specific terms governing management
personnel and compensation, access to public housing records,
submission of and adherence to budgets, rent collection procedures,
resident income verification, resident eligibility determinations,
resident eviction, the acquisition of supplies and materials and such
other matters as may be appropriate. The contract shall be treated as a
contracting out of services.
(c) Bonding and Insurance.--Before assuming any management
responsibility for a public housing development, the resident
management corporation shall provide fidelity bonding and insurance, or
equivalent protection. Such bonding and insurance, or its equivalent,
shall be adequate to protect the Secretary and the public housing
agency against loss, theft, embezzlement, or fraudulent acts on the
part of the resident management corporation or its employees.
(d) Block Grant Assistance and Income.--A contract under this section
shall provide for--
(1) the public housing agency to provide a portion of the
block grant assistance under this title to the resident
management corporation for purposes of operating the public
housing development covered by the contract and performing such
other eligible activities with respect to the development as
may be provided under the contract;
(2) the amount of income expected to be derived from the
development itself (from sources such as rents and charges);
(3) the amount of income to be provided to the development
from the other sources of income of the public housing agency
(such as interest income, administrative fees, and rents); and
(4) any income generated by a resident management corporation
of a public housing development that exceeds the income
estimated under the contract shall be used for eligible
activities under section 203(a).
(e) Calculation of Total Income.--
(1) Maintenance of support.--Subject to paragraph (2), the
amount of assistance provided by a public housing agency to a
public housing development managed by a resident management
corporation may not be reduced during the 3-year period
beginning on the date on which the resident management
corporation is first established for the development.
(2) Reductions and increases in support.--If the total income
of a public housing agency is reduced or increased, the income
provided by the public housing agency to a public housing
development managed by a resident management corporation shall
be reduced or increased in proportion to the reduction or
increase in the total income of the agency, except that any
reduction in block grant amounts under this title to the agency
that occurs as a result of fraud, waste, or mismanagement by
the agency shall not affect the amount provided to the resident
management corporation.
SEC. 236. TRANSFER OF MANAGEMENT OF CERTAIN HOUSING TO INDEPENDENT
MANAGER AT REQUEST OF RESIDENTS.
(a) Authority.--The Secretary may transfer the responsibility and
authority for management of specified housing (as such term is defined
in subsection (h)) from a public housing agency to an eligible
management entity, in accordance with the requirements of this section,
if--
(1) such housing is owned or operated by a public housing
agency that is designated as a troubled agency under section
533(a); and
(2) the Secretary determines that--
(A) such housing has deferred maintenance, physical
deterioration, or obsolescence of major systems and
other deficiencies in the physical plant of the
project;
(B) such housing is occupied predominantly by
families with children who are in a severe state of
distress, characterized by such factors as high rates
of unemployment, teenage pregnancy, single-parent
households, long-term dependency on public assistance
and minimal educational achievement;
(C) such housing is located in an area such that the
housing is subject to recurrent vandalism and criminal
activity (including drug-related criminal activity);
and
(D) the residents can demonstrate that the elements
of distress for such housing specified in subparagraphs
(A) through (C) can be remedied by an entity that has a
demonstrated capacity to manage, with reasonable
expenses for modernization.
Such a transfer may be made only as provided in this section, pursuant
to the approval by the Secretary of a request for the transfer made by
a majority vote of the residents for the specified housing, after
consultation with the public housing agency for the specified housing.
(b) Block Grant Assistance.--Pursuant to a contract under subsection
(c), the Secretary shall require the public housing agency for
specified housing to provide to the manager for the housing, from any
block grant amounts under this title for the agency, fair and
reasonable amounts for operating costs for the housing. The amount made
available under this subsection to a manager shall be determined by the
Secretary based on the share for the specified housing of the total
block grant amounts for the public housing agency transferring the
housing, taking into consideration the operating and capital
improvement needs of the specified housing, the operating and capital
improvement needs of the remaining public housing units managed by the
public housing agency, and the local housing management plan of such
agency.
(c) Contract Between Secretary and Manager.--
(1) Requirements.--Pursuant to the approval of a request
under this section for transfer of the management of specified
housing, the Secretary shall enter into a contract with the
eligible management entity.
(2) Terms.-- A contract under this subsection shall contain
provisions establishing the rights and responsibilities of the
manager with respect to the specified housing and the Secretary
and shall be consistent with the requirements of this Act
applicable to public housing developments.
(d) Compliance With Local Housing Management Plan.--A manager of
specified housing under this section shall comply with the approved
local housing management plan applicable to the housing and shall
submit such information to the public housing agency from which
management was transferred as may be necessary for such agency to
prepare and update its local housing management plan.
(e) Demolition and Disposition by Manager.--A manager under this
section may demolish or dispose of specified housing only if, and in
the manner, provided for in the local housing management plan for the
agency transferring management of the housing.
(f) Limitation on PHA Liability.--A public housing agency that is not
a manager for specified housing shall not be liable for any act or
failure to act by a manager or resident council for the specified
housing.
(g) Treatment of Manager.--To the extent not inconsistent with this
section and to the extent the Secretary determines not inconsistent
with the purposes of this Act, a manager of specified housing under
this section shall be considered to be a public housing agency for
purposes of this title.
(h) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Eligible management entity.--The term ``eligible
management entity'' means, with respect to any public housing
development, any of the following entities:
(A) Nonprofit organization.--A public or private
nonprofit organization, which shall--
(i) include a resident management corporation
or resident management organization and, as
determined by the Secretary, a public or
private nonprofit organization sponsored by the
public housing agency that owns the
development; and
(ii) not include the public housing agency
that owns the development.
(B) For-profit entity.--A for-profit entity that has
demonstrated experience in providing low-income
housing.
(C) State or local government.--A State or local
government, including an agency or instrumentality
thereof.
(D) Public housing agency.--A public housing agency
(other than the public housing agency that owns the
development).
The term does not include a resident council.
(2) Manager.--The term ``manager'' means any eligible
management entity that has entered into a contract under this
section with the Secretary for the management of specified
housing.
(3) Nonprofit.--The term ``nonprofit'' means, with respect to
an organization, association, corporation, or other entity,
that no part of the net earnings of the entity inures to the
benefit of any member, founder, contributor, or individual.
(4) Private nonprofit organization.--The term ``private
nonprofit organization'' means any private organization
(including a State or locally chartered organization) that--
(A) is incorporated under State or local law;
(B) is nonprofit in character;
(C) complies with standards of financial
accountability acceptable to the Secretary; and
(D) has among its purposes significant activities
related to the provision of decent housing that is
affordable to low-income families.
(5) Public housing agency.--The term ``public housing
agency'' has the meaning given such term in section 103(a).
(6) Public nonprofit organization.--The term ``public
nonprofit organization'' means any public entity that is
nonprofit in character.
(7) Specified housing.--The term ``specified housing'' means
a public housing development or developments, or a portion of a
development or developments, for which the transfer of
management is requested under this section. The term includes
one or more contiguous buildings and an area of contiguous row
houses, but in the case of a single building, the building
shall be sufficiently separable from the remainder of the
development of which it is part to make transfer of the
management of the building feasible for purposes of this
section.
SEC. 237. RESIDENT OPPORTUNITY PROGRAM.
(a) Purpose.--The purpose of this section is to encourage increased
resident management of public housing developments, as a means of
improving existing living conditions in public housing developments, by
providing increased flexibility for public housing developments that
are managed by residents by--
(1) permitting the retention, and use for certain purposes,
of any revenues exceeding operating and project costs; and
(2) providing funding, from amounts otherwise available, for
technical assistance to promote formation and development of
resident management entities.
For purposes of this section, the term ``public housing development''
includes one or more contiguous buildings or an area of contiguous row
houses the elected resident councils of which approve the establishment
of a resident management corporation and otherwise meet the
requirements of this section.
(b) Program Requirements.--
(1) Resident council.--As a condition of entering into a
resident opportunity program, the elected resident council of a
public housing development shall approve the establishment of a
resident management corporation that complies with the
requirements of section 234(b)(2). When such approval is made
by the elected resident council of a building or row house
area, the resident opportunity program shall not interfere with
the rights of other families residing in the development or
harm the efficient operation of the development. The resident
management corporation and the resident council may be the same
organization, if the organization complies with the
requirements applicable to both the corporation and council.
(2) Public housing management specialist.--The resident
council of a public housing development, in cooperation with
the public housing agency, shall select a qualified public
housing management specialist to assist in determining the
feasibility of, and to help establish, a resident management
corporation and to provide training and other duties agreed to
in the daily operations of the development.
(3) Management responsibilities.--A resident management
corporation that qualifies under this section, and that
supplies insurance and bonding or equivalent protection
sufficient to the Secretary and the public housing agency,
shall enter into a contract with the agency establishing the
respective management rights and responsibilities of the
corporation and the agency. The contract shall be treated as a
contracting out of services and shall be subject to the
requirements under section 235 for such contracts.
(4) Annual audit.--The books and records of a resident
management corporation operating a public housing development
shall be audited annually by a certified public accountant. A
written report of each such audit shall be forwarded to the
public housing agency and the Secretary.
(c) Comprehensive Improvement Assistance.--Public housing
developments managed by resident management corporations may be
provided with modernization assistance from grant amounts under this
title for purposes of renovating such developments. If such renovation
activities (including the planning and architectural design of the
rehabilitation) are administered by a resident management corporation,
the public housing agency involved may not retain, for any
administrative or other reason, any portion of the assistance provided
pursuant to this subsection unless otherwise provided by contract.
(d) Waiver of Federal Requirements.--
(1) Waiver of regulatory requirements.--Upon the request of
any resident management corporation and public housing agency,
and after notice and an opportunity to comment is afforded to
the affected residents, the Secretary may waive (for both the
resident management corporation and the public housing agency)
any requirement established by the Secretary (and not specified
in any statute) that the Secretary determines to unnecessarily
increase the costs or restrict the income of a public housing
development.
(2) Waiver to permit employment.--Upon the request of any
resident management corporation, the Secretary may, subject to
applicable collective bargaining agreements, permit residents
of such development to volunteer a portion of their labor.
(3) Exceptions.--The Secretary may not waive under this
subsection any requirement with respect to income eligibility
for purposes of section 222, family rental payments under
section 225, tenant or applicant protections, employee
organizing rights, or rights of employees under collective
bargaining agreements.
(e) Operating Assistance and Development Income.--
(1) Calculation of operating subsidy.--The grant amounts
received under this title by a public housing agency used for
operating fund activities under section 203(a)(2) that are
allocated to a public housing development managed by a resident
management corporation shall not be less than per unit monthly
amount of such assistance used by the public housing agency in
the previous year, as determined on an individual development
basis.
(2) Contract requirements.--Any contract for management of a
public housing development entered into by a public housing
agency and a resident management corporation shall specify the
amount of income expected to be derived from the development
itself (from sources such as rents and charges) and the amount
of income funds to be provided to the development from the
other sources of income of the agency (such as assistance for
operating activities under section 203(a)(2), interest income,
administrative fees, and rents).
(f) Resident Management Technical Assistance and Training.--
(1) Financial assistance.--To the extent budget authority is
available under this title, the Secretary shall provide
financial assistance to resident management corporations or
resident councils that obtain, by contract or otherwise,
technical assistance for the development of resident management
entities, including the formation of such entities, the
development of the management capability of newly formed or
existing entities, the identification of the social support
needs of residents of public housing developments, and the
securing of such support. In addition, the Secretary may
provide financial assistance to resident management
corporations or resident councils for activities sponsoredby
resident organizations for economic uplift, such as job training,
economic development, security, and other self-sufficiency activities
beyond those related to the management of public housing. The Secretary
may require resident councils or resident management corporations to
utilize public housing agencies or other qualified organizations as
contract administrators with respect to financial assistance provided
under this paragraph.
(2) Limitation on assistance.--The financial assistance
provided under this subsection with respect to any public
housing development may not exceed $100,000.
(3) Prohibition.--A resident management corporation or
resident council may not, before the award to the corporation
or council of a grant amount under this subsection, enter into
any contract or other agreement with any entity to provide such
entity with amounts from the grant for providing technical
assistance or carrying out other activities eligible for
assistance with amounts under this subsection. Any such
agreement entered into in violation of this paragraph shall be
void and unenforceable.
(4) Funding.--Of any amounts made available for financial
assistance under this title, the Secretary may use to carry out
this subsection $15,000,000 for fiscal year 1998.
(5) Limitation regarding assistance under hope grant
program.--The Secretary may not provide financial assistance
under this subsection to any resident management corporation or
resident council with respect to which assistance for the
development or formation of such entity is provided under title
III of the United States Housing Act of 1937 (as in effect
before the effective date of the repeal under section 601(b) of
this Act).
(6) Technical assistance and clearinghouse.--The Secretary
may use up to 10 percent of the amount made available pursuant
to paragraph (4)--
(A) to provide technical assistance, directly or by
grant or contract, and
(B) to receive, collect, process, assemble, and
disseminate information,
in connection with activities under this subsection.
(g) Assessment and Report by Secretary.--Not later than 3 years after
the date of the enactment of this Act, the Secretary shall--
(1) conduct an evaluation and assessment of resident
management, and particularly of the effect of resident
management on living conditions in public housing; and
(2) submit to the Congress a report setting forth the
findings of the Secretary as a result of the evaluation and
assessment and including any recommendations the Secretary
determines to be appropriate.
(h) Applicability.--Any management contract between a public housing
agency and a resident management corporation that is entered into after
the date of the enactment of the Stewart B. McKinney Homeless
Assistance Amendments Act of 1988 shall be subject to this section and
any regulations issued to carry out this section.
Subtitle D--Homeownership
SEC. 251. RESIDENT HOMEOWNERSHIP PROGRAMS.
(a) In General.--A public housing agency may carry out a
homeownership program in accordance with this section and the local
housing management plan of the agency to make public housing dwelling
units, public housing developments, and other housing projects
available for purchase by low-income families. An agency may transfer a
unit only pursuant to a homeownership program approved by the
Secretary. Notwithstanding section 107, the Secretary may approve a
local housing management plan without approving the portion of the plan
regarding a homeownership program pursuant to this section. In the case
of the portion of a plan regarding the homeownership program that is
submitted separately pursuant to the preceding sentence, the Secretary
shall approve or disapprove such portion not later than 60 days after
the submission of such portion.
(b) Participating Units.--A program under this section may cover any
existing public housing dwelling units or projects, and may include
other dwelling units and housing owned, operated, or assisted, or
otherwise acquired for use under such program, by the public housing
agency.
(c) Eligible Purchasers.--
(1) Low-income requirement.--Only low-income families
assisted by a public housing agency, other low-income families,
and entities formed to facilitate such sales by purchasing
units for resale to low-income families shall be eligible to
purchase housing under a homeownership program under this
section.
(2) Other requirements.--A public housing agency may
establish other requirements or limitations for families to
purchase housing under a homeownership program under this
section, including requirements or limitations regarding
employment or participation in employment counseling or
training activities, criminal activity, participation in
homeownership counseling programs, evidence of regular income,
and other requirements. In the case of purchase by an entity
for resale to low-income families, the entity shall sell the
units to low-income families within 5 years from the date of
its acquisition of the units. The entity shall use any net
proceeds from the resale and from managing the units, as
determined in accordance with guidelines of the Secretary, for
housing purposes, such as funding resident organizations and
reserves for capital replacements.
(d) Financing and Assistance.--A homeownership program under this
section may provide financing for acquisition of housing by families
purchasing under the program or by the public housing agency for sale
under this program in any manner considered appropriate by the agency
(including sale to a resident management corporation).
(e) Downpayment Requirement.--
(1) In general.--Each family purchasing housing under a
homeownership program under this section shall be required to
provide from its own resources a downpayment in connection with
any loan for acquisition of the housing, in an amount
determined by the public housing agency. Except as provided in
paragraph (2), the agency shall permit the family to use grant
amounts, gifts from relatives, contributions from private
sources, and similar amounts as downpayment amounts in such
purchase,
(2) Direct family contribution.--In purchasing housing
pursuant to this section, each family shall contribute an
amount of the downpayment, from resources of the family other
than grants, gifts, contributions, or other similar amounts
referred to in paragraph (1), that is not less than 1 percent
of the purchase price.
(f) Ownership Interests.--A homeownership program under this section
may provide for sale to the purchasing family of any ownership interest
that the public housing agency considers appropriate under the program,
including ownership in fee simple, a condominium interest, an interest
in a limited dividend cooperative, a shared appreciation interest with
a public housing agency providing financing.
(g) Resale.--
(1) Authority and limitation.--A homeownership program under
this section shall permit the resale of a dwelling unit
purchased under the program by an eligible family, but shall
provide such limitations on resale as the agency considers
appropriate (whether the family purchases directly from the
agency or from another entity) for the agency to recapture--
(A) from any economic gain derived from any such
resale occurring during the 5-year period beginning
upon purchase of the dwelling unit by the eligible
family, a portion of the amount of any financial
assistance provided under the program by the agency to
the eligible family; and
(B) after the expiration of such 5-year period, only
such amounts as are equivalent to the assistance
provided under this section by the agency to the
purchaser.
(2) Considerations.--The limitations referred to in paragraph
(1) may provide for consideration of the aggregate amount of
assistance provided under the program to the family, the
contribution to equity provided by the purchasing eligible
family, the period of time elapsed between purchase under the
homeownership program and resale, the reason for resale, any
improvements to the property made by the eligible family, any
appreciation in the value of the property, and any other
factors that the agency considers appropriate.
(h) Sale of Certain Scattered-Site Housing.--A public housing agency
that the Secretary has determined to be a high-performing agency may
use the proceeds from the disposition of scattered-site public housing
under a homeownership program under this section to purchase
replacement scattered-site dwelling units, to the extent such use is
provided for in the local housing management plan for the agency
approved under section 107. Any such replacement dwelling units shall
be considered public housing for purposes of this Act.
(i) Inapplicability of Disposition Requirements.--The provisions of
section 261 shall not apply to disposition of public housing dwelling
units under a homeownership program under this section, except that any
dwelling units sold undersuch a program shall be treated as public
housing dwelling units for purposes of subsections (e) and (f) of
section 261.
Subtitle E--Disposition, Demolition, and Revitalization of Developments
SEC. 261. REQUIREMENTS FOR DEMOLITION AND DISPOSITION OF DEVELOPMENTS.
(a) Authority and Flexibility.--A public housing agency may demolish,
dispose of, or demolish and dispose of nonviable or nonmarketable
public housing developments of the agency in accordance with this
section.
(b) Local Housing Management Plan Requirement.--A public housing
agency may take any action to demolish or dispose of a public housing
development (or a portion of a development) only if such demolition or
disposition complies with the provisions of this section and is in
accordance with the local housing management plan for the agency.
Notwithstanding section 107, the Secretary may approve a local housing
management plan without approving the portion of the plan covering
demolition or disposition pursuant to this section.
(c) Purpose of Demolition or Disposition.--A public housing agency
may demolish or dispose of a public housing development (or portion of
a development) only if the agency provides sufficient evidence to the
Secretary that--
(1) the development (or portion thereof) is severely
distressed or obsolete;
(2) the development (or portion thereof) is in a location
making it unsuitable for housing purposes;
(3) the development (or portion thereof) has design or
construction deficiencies that make cost-effective
rehabilitation infeasible;
(4) assuming that reasonable rehabilitation and management
intervention for the development has been completed and paid
for, the anticipated revenue that would be derived from
charging market-based rents for units in the development (or
portion thereof) would not cover the anticipated operating
costs and replacement reserves of the development (or portion)
at full occupancy and the development (or portion) would
constitute a substantial burden on the resources of the public
housing agency;
(5) retention of the development (or portion thereof) is not
in the best interests of the residents of the public housing
agency because--
(A) developmental changes in the area surrounding the
development adversely affect the health or safety of
the residents or the feasible operation of the
development by the public housing agency;
(B) demolition or disposition will allow the
acquisition, development, or rehabilitation of other
properties which will be more efficiently or
effectively operated as low-income housing; or
(C) other factors exist that the agency determines
are consistent with the best interests of the residents
and the agency and not inconsistent with other
provisions of this Act;
(6) in the case only of demolition or disposition of a
portion of a development, the demolition or disposition will
help to ensure the remaining useful life of the remainder of
the development; or
(7) in the case only of property other than dwelling units--
(A) the property is excess to the needs of a
development; or
(B) the demolition or disposition is incidental to,
or does not interfere with, continued operation of a
development.
The evidence required under this subsection shall include, as a
condition of demolishing or disposing of a public housing development
(or portion of a development) estimated to have a value of $100,000 or
more, a statement of the market value of the development (or portion),
which has been determined by a party not having any interest in the
housing or the public housing agency and pursuant to not less than 2
professional, independent appraisals of the development (or portion).
(d) Consultation.--A public housing agency may demolish or dispose of
a public housing development (or portion of a development) only if the
agency notifies and confers regarding the demolition or disposition
with--
(1) the residents of the development (or portion); and
(2) appropriate local government officials.
(e) Counseling.--A public housing agency may demolish or dispose of a
public housing development (or a portion of a development) only if the
agency provides any necessary counseling for families displaced by such
action to facilitate relocation.
(f) Use of Proceeds.--Any net proceeds from the disposition of a
public housing development (or portion of a development) shall be used
for--
(1) housing assistance for low-income families that is
consistent with the low-income housing needs of the community,
through acquisition, development, or rehabilitation of, or
homeownership programs for, other low-income housing or the
provision of choice-based assistance under title III for such
families;
(2) supportive services relating to job training or child
care for residents of a development or developments; or
(3) leveraging amounts for securing commercial enterprises,
on-site in public housing developments of the public housing
agency, appropriate to serve the needs of the residents.
(g) Relocation.--A public housing agency that demolishes or disposes
of a public housing development (or portion of a development thereof)
shall ensure that--
(1) each family that is a resident of the development (or
portion) that is demolished or disposed of is relocated to
other safe, clean, healthy, and affordable housing, which is,
to the maximum extent practicable, housing of the family's
choice, including choice-based assistance under title III
(provided that with respect to choice-based assistance, the
preceding requirement shall be fulfilled only upon the
relocation of the such family into such housing);
(2) the public housing agency does not take any action to
dispose of any unit until any resident to be displaced is
relocated in accordance with paragraph (1); and
(3) each resident family to be displaced is paid relocation
expenses, and the rent to be paid initially by the resident
following relocation does not exceed the amount permitted under
section 225(a).
(h) Right of First Refusal for Resident Organizations and Resident
Management Corporations.--
(1) In general.--A public housing agency may not dispose of a
public housing development (or portion of a development) unless
the agency has, before such disposition, offered to sell the
property, as provided in this subsection, to each resident
organization and resident management corporation operating at
the development for continued use as low-income housing, and no
such organization or corporation purchases the property
pursuant to such offer. A resident organization may act, for
purposes of this subsection, through an entity formed to
facilitate homeownership under subtitle D.
(2) Timing.--Disposition of a development (or portion
thereof) under this section may not take place--
(A) before the expiration of the period during which
any such organization or corporation may notify the
agency of interest in purchasing the property, which
shall be the 30-day period beginning on the date that
the agency first provides notice of the proposed
disposition of the property to such resident
organizations and resident management corporations;
(B) if an organization or corporation submits notice
of interest in accordance with subparagraph (A), before
the expiration of the period during which such
organization or corporation may obtain a commitment for
financing to purchase the property, which shall be the
60-day period beginning upon the submission to the
agency of the notice of interest; or
(C) if, during the period under subparagraph (B), an
organization or corporation obtains such financing
commitment and makes a bona fide offer to the agency to
purchase the property for a price equal to or exceeding
the applicable offer price under paragraph (3).
The agency shall sell the property pursuant to any purchase
offer described in subparagraph (C).
(3) Terms of offer.--An offer by a public housing agency to
sell a property in accordance with this subsection shall
involve a purchase price that reflects the market value of the
property, the reason for the sale, the impact of the sale on
the surrounding community, and any other factors that the
agency considers appropriate.
(i) Information for Local Housing Management Plan.--A public housing
agency may demolish or dispose of a public housing development (or
portion thereof) only if it includes in the applicable local housing
management plan information sufficient to describe--
(1) the housing to be demolished or disposed of;
(2) the purpose of the demolition or disposition under
subsection (c) and why the demolition or disposition complies
with the requirements under subsection (c), and includes
evidence of the market value of the development (or portion)
required under subsection (c);
(3) how the consultations required under subsection (d) will
be made;
(4) how the net proceeds of the disposition will be used in
accordance with subsection (f);
(5) how the agency will relocate residents, if necessary, as
required under subsection (g); and
(6) that the agency has offered the property for acquisition
by resident organizations and resident management corporations
in accordance with subsection (h).
(j) Site and Neighborhood Standards Exemption.--Notwithstanding any
other provision of law, a public housing agency may provide for
development of public housing dwelling units on the same site or in the
same neighborhood as any dwelling units demolished, pursuant to a plan
under this section, but only if such development provides for
significantly fewer dwelling units.
(k) Treatment of Replacement Units.--
(1) Provision of other housing assistance.--In connection
with any demolition or disposition of public housing under this
section, a public housing agency may provide for other housing
assistance for low-income families that is consistent with the
low-income housing needs of the community, including--
(A) the provision of choice-based assistance under
title III; and
(B) the development, acquisition, or lease by the
agency of dwelling units, which dwelling units shall--
(i) be eligible to receive assistance with
grant amounts provided under this title; and
(ii) be made available for occupancy,
operated, and managed in the manner required
for public housing, and subject to the other
requirements applicable to public housing
dwelling units.
(2) Treatment of Individuals.--For purposes of this
subsection, an individual between the ages of 18 and 21,
inclusive, shall, at the discretion of the individual, be
considered a family.
(l) Use of New Dwelling Units.--A public housing agency demolishing
or disposing of a public housing development (or portion thereof) under
this section shall seek, where practical, to ensure that, if housing
units are provided on any property that was previously used for the
public housing demolished or disposed of, not less than 25 percent of
such dwelling units shall be dwelling units reserved for occupancy
during the remaining useful life of the housing by low-income families.
(m) Permissible Relocation Without Plan.--If a public housing agency
determines that because of an emergency situation public housing
dwelling units are severely uninhabitable, the public housing agency
may relocate residents of such dwelling units before the submission of
a local housing management plan providing for demolition or disposition
of such units.
(n) Consolidation of Occupancy Within or Among Buildings.--Nothing in
this section may be construed to prevent a public housing agency from
consolidating occupancy within or among buildings of a public housing
development, or among developments, or with other housing for the
purpose of improving living conditions of, or providing more efficient
services to, residents.
(o) De Minimis Exception to Demolition Requirements.--Notwithstanding
any other provision of this section, in any 5-year period a public
housing agency may demolish not more than the lesser of 5 dwelling
units or 5 percent of the total dwelling units owned and operated by
the public housing agency, without providing for such demolition in a
local housing management plan, but only if the space occupied by the
demolished unit is used for meeting the service or other needs of
public housing residents or the demolished unit was beyond repair.
SEC. 262. DEMOLITION, SITE REVITALIZATION, REPLACEMENT HOUSING, AND
CHOICE-BASED ASSISTANCE GRANTS FOR DEVELOPMENTS.
(a) Purposes.--The purpose of this section is to provide assistance
to public housing agencies for the purposes of--
(1) reducing the density and improving the living environment
for public housing residents of severely distressed public
housing developments through the demolition of obsolete public
housing developments (or portions thereof);
(2) revitalizing sites (including remaining public housing
dwelling units) on which such public housing developments are
located and contributing to the improvement of the surrounding
neighborhood; and
(3) providing housing that will avoid or decrease the
concentration of very low-income families; and
(4) providing choice-based assistance in accordance with
title III for the purpose of providing replacement housing and
assisting residents to be displaced by the demolition.
(b) Grant Authority.--The Secretary may make grants available to
public housing agencies as provided in this section.
(c) Contribution Requirement.--The Secretary may not make any grant
under this section to any applicant unless the applicant certifies to
the Secretary that the applicant will supplement the amount of
assistance provided under this section with an amount of funds from
sources other than this section equal to not less than 5 percent of the
amount provided under this section, including amounts from other
Federal sources, any State or local government sources, any private
contributions, and the value of any in-kind services or administrative
costs provided.
(d) Eligible Activities.--Grants under this section may be used for
activities to carry out revitalization programs for severely distressed
public housing, including--
(1) architectural and engineering work, including the
redesign, reconstruction, or redevelopment of a severely
distressed public housing development, including the site on
which the development is located;
(2) the demolition, sale, or lease of the site, in whole or
in part;
(3) covering the administrative costs of the applicant, which
may not exceed such portion of the assistance provided under
this section as the Secretary may prescribe;
(4) payment of reasonable legal fees;
(5) providing reasonable moving expenses for residents
displaced as a result of the revitalization of the development;
(6) economic development activities that promote the economic
self-sufficiency of residents under the revitalization program;
(7) necessary management improvements;
(8) leveraging other resources, including additional housing
resources, retail supportive services, jobs, and other economic
development uses on or near the development that will benefit
future residents of the site;
(9) replacement housing and housing assistance under title
III;
(10) transitional security activities; and
(11) necessary supportive services, except that not more than
10 percent of the amount of any grant may be used for
activities under this paragraph.
(e) Application and Selection.--
(1) Application.--An application for a grant under this
section shall contain such information and shall be submitted
at such time and in accordance with such procedures, as the
Secretary shall prescribe.
(2) Selection criteria.--The Secretary shall establish
selection criteria for the award of grants under this section,
which shall include--
(A) the relationship of the grant to the local
housing management plan for the public housing agency
and how the grant will result in a revitalized site
that will enhance the neighborhood in which the
development is located;
(B) the capability and record of the applicant public
housing agency, or any alternative management agency
for the agency, for managing large-scale redevelopment
or modernization projects, meeting construction
timetables, and obligating amounts in a timely manner;
(C) the extent to which the public housing agency
could undertake such activities without a grant under
this section;
(D) the extent of involvement of residents, State and
local governments, private service providers, financing
entities, and developers, in the development of a
revitalization program for the development; and
(E) the amount of funds and other resources to be
leveraged by the grant.
The Secretary shall give preference in selection to any public
housing agency that has been awarded a planning grant under
section 24(c) of the United States Housing Act of 1937 (as in
effect before the effective date of the repeal under section
601(b) of this Act).
(f) Cost Limits.--Subject to the provisions of this section, the
Secretary--
(1) shall establish cost limits on eligible activities under
this section sufficient to provide for effective revitalization
programs; and
(2) may establish other cost limits on eligible activities
under this section.
(g) Demolition and Replacement.--Any severely distressed public
housing demolished or disposed of pursuant to a revitalization plan and
any public housing produced in lieu of such severely distressed
housing, shall be subject to the provisions of section 261.
(h) Administration by Other Entities.--The Secretary may require a
grantee under this section to make arrangements satisfactory to the
Secretary for use of an entity other than the public housing agency to
carry out activities assisted under the revitalization plan, if the
Secretary determines that such action will help to effectuate the
purposes of this section.
(i) Withdrawal of Funding.--If a grantee under this section does not
proceed expeditiously, in the determination of the Secretary, the
Secretary shall withdraw any grant amounts under this section that have
not been obligated by the public housing agency. The Secretary shall
redistribute any withdrawn amounts to one or more public housing
agencies eligible for assistance under this section or to one or more
other entities capable of proceeding expeditiously in the same locality
in carrying out the revitalization plan of the original grantee.
(j) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Applicant.--The term ``applicant'' means--
(A) any public housing agency that is not designated
as troubled pursuant to section 533(a);
(B) any public housing agency or private housing
management agent selected, or receiver appointed
pursuant, to section 545; and
(C) any public housing agency that is designated as
troubled pursuant to section 533(a) that--
(i) is so designated principally for reasons
that will not affect the capacity of the agency
to carry out a revitalization program;
(ii) is making substantial progress toward
eliminating the deficiencies of the agency; or
(iii) is otherwise determined by the
Secretary to be capable of carrying out a
revitalization program.
(2) Private nonprofit corporation.--The term ``private
nonprofit organization'' means any private nonprofit
organization (including a State or locally chartered nonprofit
organization) that--
(A) is incorporated under State or local law;
(B) has no part of its net earnings inuring to the
benefit of any member, founder, contributor, or
individual;
(C) complies with standards of financial
accountability acceptable to the Secretary; and
(D) has among its purposes significant activities
related to the provision of decent housing that is
affordable to very low-income families.
(3) Severely distressed public housing.--The term ``severely
distressed public housing'' means a public housing development
(or building in a development) that--
(A) requires major redesign, reconstruction or
redevelopment, or partial or total demolition, to
correct serious deficiencies in the original design
(including inappropriately high population density),
deferred maintenance, physical deterioration or
obsolescence of major systems and other deficiencies in
the physical plant of the development;
(B) is a significant contributing factor to the
physical decline of and disinvestment by public and
private entities in the surrounding neighborhood;
(C)(i) is occupied predominantly by families who are
very low-income families with children, are unemployed,
and dependent on various forms of public assistance;
and
(ii) has high rates of vandalism and criminal
activity (including drug-related criminal activity) in
comparison to other housing in the area;
(D) cannot be revitalized through assistance under
other programs, such as the public housing block grant
program under this title, or the programs under
sections 9 and 14 of the United States Housing Act of
1937 (as in effect before the effective date of the
repeal under section 601(b) of this Act), because of
cost constraints and inadequacy of available amounts;
and
(E) in the case of individual buildings, is, in the
Secretary's determination, sufficiently separable from
the remainder of the development of which the building
is part to make use of the building feasible for
purposes of this section.
(4) Supportive services.--The term ``supportive services''
includes all activities that will promote upward mobility,
self-sufficiency, and improved quality of life for the
residents of the public housing development involved, including
literacy training, job training, day care, and economic
development activities.
(k) Annual Report.--The Secretary shall submit to the Congress an
annual report setting forth--
(1) the number, type, and cost of public housing units
revitalized pursuant to this section;
(2) the status of developments identified as severely
distressed public housing;
(3) the amount and type of financial assistance provided
under and in conjunction with this section; and
(4) the recommendations of the Secretary for statutory and
regulatory improvements to the program established by this
section.
(l) Funding.--
(1) Authorization of appropriations.--There are authorized to
be appropriated for grants under this section $500,000,000 for
each of fiscal years 1998, 1999, and 2000.
(2) Technical assistance.--Of the amount appropriated
pursuant to paragraph (1) for any fiscal year, the Secretary
may use not more than 0.50 percent for technical assistance.
Such assistance may be provided directly or indirectly by
grants, contracts, or cooperative agreements, and shall include
training, and the cost of necessary travel for participants in
such training, by or to officials of the Department of Housing
and Urban Development, of public housing agencies, and of
residents.
(m) Sunset.--No assistance may be provided under this section after
September 30, 2000.
SEC. 263. VOLUNTARY VOUCHER SYSTEM FOR PUBLIC HOUSING.
(a) In General.--A public housing agency may convert any public
housing development (or portion thereof) owned and operated by the
agency to a system of choice-based rental housing assistance under
title III, in accordance with this section.
(b) Assessment and Plan Requirement.--In converting under this
section to a choice-based rental housing assistance system, the public
housing agency shall develop a conversion assessment and plan under
this subsection, in consultation with the appropriate public officials
and with significant participation by the residents of the development
(or portion thereof), which assessment and plan shall--
(1) be consistent with and part of the local housing
management plan for the agency;
(2) describe the conversion and future use or disposition of
the public housing development, including an impact analysis on
the affected community;
(3) include a cost analysis that demonstrates whether or not
the cost (both on a net present value basis and in terms of new
budget authority requirements) of providing choice-based rental
housing assistance under title III for the same families in
substantially similar dwellings over the same period of time is
less expensive than continuing public housing assistance in the
public housing development proposed for conversion for the
remaining useful life of the development;
(4) identify the actions, if any, that the public housing
agency will take with regard to converting any public housing
development or developments (or portions thereof) of the agency
to a system of choice-based rental housing assistance under
title III;
(5) require the public housing agency to--
(A) notify the families residing in the public
housing development subject to the conversion, in
accordance with any guidelines issued by the Secretary
governing such notifications, that--
(i) the development will be removed from the
inventory of the public housing agency; and
(ii) the families displaced by such action
will receive choice-based housing assistance;
(B) provide any necessary counseling for families
displaced by such action to facilitate relocation; and
(C) provide any reasonable relocation expenses for
families displaced by such action; and
(6) ensure that each family that is a resident of the
development is relocated to other safe, clean, and healthy
affordable housing, which is, to the maximum extent
practicable, housing of the family's choice, including choice-
based assistance under title III (provided that with respect to
choice-based assistance, the preceding requirement shall be
fulfilled only upon the relocation of such family into such
housing).
(c) Streamlined Assessment and Plan.--At the discretion of the
Secretary or at the request of a public housing agency, the Secretary
may waive any or all of the requirements of subsection (b) or otherwise
require a streamlined assessment with respect to any public housing
development or class of public housing developments.
(d) Implementation of Conversion Plan.--
(1) In general.--A public housing agency may implement a
conversion plan only if the conversion assessment under this
section demonstrates that the conversion--
(A) will not be more expensive than continuing to
operate the public housing development (or portion
thereof) as public housing; and
(B) will principally benefit the residents of the
public housing development (or portion thereof) to be
converted, the public housing agency, and the
community.
(2) Disapproval.--The Secretary shall disapprove a conversion
plan only if the plan is plainly inconsistent with the
conversion assessment under subsection (b) or there is reliable
information and data available to the Secretary that
contradicts that conversion assessment.
(e) Other Requirements.--To the extent approved by the Secretary, the
funds used by the public housing agency to provide choice-based rental
housing assistance under title III shall be added to the housing
assistance payment contract administered by the public housing agency
or any entity administering the contract on behalf of the public
housing agency.
(f) Savings Provision.--This section does not affect any contract or
other agreement entered into under section 22 of the United States
Housing Act of 1937 (as such section existed before the effective date
of the repeal under section 601(b) of this Act).
Subtitle F--Mixed-Finance Public Housing
SEC. 271. AUTHORITY.
Notwithstanding sections 203 and 262, the Secretary may, upon such
terms and conditions as the Secretary may prescribe, authorize a public
housing agency to provide for the use of grant amounts allocated and
provided from the capital fund or from a grant under section 262, to
produce mixed- finance housing developments, or replace or revitalize
existing public housing dwelling units with mixed-finance housing
developments, but only if the agency submits to the Secretary a plan
for such housing that is approved pursuant to section 273 by the
Secretary.
SEC. 272. MIXED-FINANCE HOUSING DEVELOPMENTS.
(a) In General.--For purposes of this subtitle, the term ``mixed-
finance housing'' means low-income housing or mixed-income housing (as
described in section 221(c)(2)) for which the financing for production
or revitalization is provided, in part, from entities other than the
public housing agency.
(b) Production.--A mixed-finance housing development shall be
produced or revitalized, and owned--
(1) by a public housing agency or by an entity affiliated
with a public housing agency;
(2) by a partnership, a limited liability company, or other
entity in which the public housing agency (or an entity
affiliated with a public housing agency) is a general partner,
is a managing member, or otherwise participates in the
activities of the entity;
(3) by any entity that grants to the public housing agency
the option to purchase the public housing project during the
20-year period beginning on the date of initial occupancy of
the public housing project in accordance with section 42(l)(7)
of the Internal Revenue Code of 1986; or
(4) in accordance with such other terms and conditions as the
Secretary may prescribe by regulation.
This subsection may not be construed to require production or
revitalization, and ownership, by the same entity.
SEC. 273. MIXED-FINANCE HOUSING PLAN.
The Secretary may approve a plan for production or revitalization of
mixed-finance housing under this subtitle only if the Secretary
determines that--
(1) the public housing agency has the ability, or has
provided for an entity under section 272(b) that has the
ability, to use the amounts provided for use under the plan for
such housing, effectively, either directly or through contract
management;
(2) the plan provides permanent financing commitments from a
sufficient number of sources other than the public housing
agency, which may include banks and other conventional lenders,
States, units of general local government, State housing
finance agencies, secondary market entities, and other
financial institutions;
(3) the plan provides for use of amounts provided under
section 271 by the public housing agency for financing the
mixed-income housing in the form of grants, loans, advances, or
other debt or equity investments, including collateral or
credit enhancement of bond issued by the agency for production
or revitalization of the development; and
(4) the plan complies with any other criteria that the
Secretary may establish.
SEC. 274. RENT LEVELS FOR HOUSING FINANCED WITH LOW-INCOME HOUSING TAX
CREDIT.
With respect to any dwelling unit in a mixed-finance housing
development that is assisted pursuant to the low-income housing tax
credit under section 42 of the Internal Revenue Code of 1986, the rents
charged to the residents of the unit shall be set at levels not to
exceed the amounts allowable under such section.
SEC. 275. CARRY-OVER OF ASSISTANCE FOR REPLACED HOUSING.
In the case of a mixed-finance housing development that is
replacement housing for public housing demolished or disposed of, or is
the result of the revitalization of existing public housing, the share
of assistance received from the capital fund and the operating fund by
the public housing agency that owned or operated the housing
demolished, disposed of, or revitalized shall not be reduced because of
such demolition, disposition, or revitalization after the commencement
of such demolition, disposition, or revitalization, unless--
(1) upon the expiration of the 18-month period beginning upon
the approval of the plan under section 273 for the mixed-
finance housing development, the agency does not have binding
commitments for production or revitalization, or a construction
contract, for such development;
(2) upon the expiration of the 4-year period beginning upon
the approval of the plan, the mixed-finance housing development
is not substantially ready for occupancy and is placed under
the block grant contract for the agency under section 201; or
(3) the number of dwelling units in the mixed-finance housing
development that are made available for occupancy only by low-
income families is substantially less than the number of such
dwelling units in the public housing demolished, disposed of,
or revitalized.
The Secretary may extend the period under paragraph (1) or (2) for a
public housing agency if the Secretary determines that circumstances
beyond the control of the agency caused the agency to fail to meet the
deadline under such paragraph.
Subtitle G--General Provisions
SEC. 281. PAYMENT OF NON-FEDERAL SHARE.
Rental or use-value of buildings or facilities paid for, in whole or
in part, from production, modernization, or operation costs financed
under this title may be used as the non-Federal share required in
connection with activities undertaken under Federal grant-in-aid
programs which provide social, educational, employment, and other
services to the residents in a project assisted under this title.
SEC. 282. AUTHORIZATION OF APPROPRIATIONS FOR BLOCK GRANTS.
There are authorized to be appropriated for grants under this title,
the following amounts:
(1) Capital fund.--For the allocations from the capital fund
for grants, $2,500,000,000 for each of fiscal years 1998, 1999,
2000, 2001, and 2002; and
(2) Operating fund.--For the allocations from the operating
fund for grants, $2,900,000,000 for each of fiscal years 1998,
1999, 2000, 2001, and 2002.
SEC. 283. FUNDING FOR OPERATION SAFE HOME.
Of any amounts made available for fiscal years 1998 and 1999 for
carrying out the Community Partnerships Against Crime Act of 1997 (as
so designated pursuant to section 624(a) of this Act), not more than
$20,000,000 shall be available in each such fiscal year, for use under
the Operation Safe Home program administered by the Office of the
Inspector General of the Department of Housing and Urban Development,
for law enforcement efforts to combat violent crime on or near the
premises of public and federally assisted housing and to provide
assistance (including housing assistance under title III) for
relocating witnesses of crimes pursuant to requests from law
enforcement or prosecuting agencies.
SEC. 284. FUNDING FOR RELOCATION OF VICTIMS OF DOMESTIC VIOLENCE.
Of any amounts made available for fiscal years 1998, 1999, 2000,
2001, and 2002 for choice-based housing assistance under title III of
this Act, not more than $700,000 shall be available in each such fiscal
year for relocating residents of public housing (including providing
assistance for costs of relocation and housing assistance under title
III of this Act) who are residing in public housing, who have been
subject to domestic violence, and for whom provision of assistance is
likely to reduce or eliminate the threat of subsequent violence to the
members of the family. The Secretary shall establish procedures for
eligibility and administration of assistance under this section.
TITLE III--CHOICE-BASED RENTAL HOUSING AND HOMEOWNERSHIP ASSISTANCE FOR
LOW-INCOME FAMILIES
Subtitle A--Allocation
SEC. 301. AUTHORITY TO PROVIDE HOUSING ASSISTANCE AMOUNTS.
To the extent that amounts to carry out this title are made
available, the Secretary may enter into contracts with public housing
agencies for each fiscal year to provide housing assistance under this
title.
SEC. 302. CONTRACTS WITH PHA'S.
(a) Condition of Assistance.--The Secretary may provide amounts under
this title to a public housing agency for a fiscal year only if the
Secretary has entered into a contract under this section with the
public housing agency, under which the Secretary shall provide such
agency with amounts (in the amount of the allocation for the agency
determined pursuant to section 304) for housing assistance under this
title for low-income families.
(b) Use for Housing Assistance.--A contract under this section shall
require a public housing agency to use amounts provided under this
title to provide housing assistance in any manner authorized under this
title.
(c) Annual Obligation of Authority.--A contract under this title
shall provide amounts for housing assistance for 1 fiscal year covered
by the contract.
(d) Enforcement of Housing Quality Requirements.--Each contract under
this section shall require the public housing agency administering
assistance provided under the contract--
(1) to ensure compliance, under each housing assistance
payments contract entered into pursuant to the contract under
this section, with the provisions of the housing assistance
payments contract included pursuant to section 351(c)(4); and
(2) to establish procedures for assisted families to notify
the agency of any noncompliance with such provisions.
SEC. 303. ELIGIBILITY OF PHA'S FOR ASSISTANCE AMOUNTS.
The Secretary may provide amounts available for housing assistance
under this title pursuant to the formula established under section
304(a) to a public housing agency only if--
(1) the agency has submitted a local housing management plan
to the Secretary for such fiscal year and applied to the
Secretary for such assistance;
(2) the plan has been determined to comply with the
requirements under section 106 and the Secretary has not
notified the agency that the plan fails to comply with such
requirements;
(3) no member of the board of directors or other governing
body of the agency, or the executive director, has been
convicted of a felony; and
(4) the agency has not been disqualified for assistance
pursuant to title V.
SEC. 304. ALLOCATION OF AMOUNTS.
(a) Formula Allocation.--
(1) In general.--When amounts for assistance under this title
are first made available for reservation, after reserving
amounts in accordance with subsections (b)(3) and (c), the
Secretary shall allocate such amounts, only among public
housing agencies meeting the requirements under this title to
receive such assistance, on the basis of a formula that is
established in accordance with paragraph (2) and based upon
appropriate criteria to reflect the needs of different States,
areas, and communities, using the most recent data available
from the Bureau of the Census of the Department of Commerce and
the comprehensive housing affordability strategy under section
105 of the Cranston-Gonzalez National Affordable Housing Act
(or any consolidated plan incorporating such strategy) for the
applicable jurisdiction. The Secretary may establish a minimum
allocation amount, in which case only the public housing
agencies that, pursuant to the formula, are provided an amount
equal to or greater than the minimum allocation amount, shall
receive an allocation.
(2) Regulations.--The formula under this subsection shall be
established by regulation issued by the Secretary.
Notwithstanding sections 563(a) and 565(a) of title 5, United
States Code, any proposed regulation containing such formula
shall be issued pursuant to a negotiated rulemaking procedure
under subchapter III of chapter 5 of such title and the
Secretary shall establish a negotiated rulemaking committee for
development of any such proposed regulations.
(b) Allocation Considerations.--
(1) Limitation on reallocation for another state.--Any
amounts allocated for a State or areas or communities within a
State that are not likely to be used within the fiscal year for
which the amounts are provided shall not be reallocated for use
in another State, unless the Secretary determines that other
areas or communities within the same State (that are eligible
for amounts under this title) cannot use the amounts within the
same fiscal year.
(2) Effect of receipt of tenant-based assistance for disabled
families.--The Secretary may not consider the receipt by a
public housing agency of assistance under section 811(b)(1) of
the Cranston-Gonzalez National Affordable Housing Act, or the
amount received, in approving amounts under this title for the
agency or in determining the amount of such assistance to be
provided to the agency.
(3) Exemption from formula allocation.--The formula
allocation requirements of subsection (a) shall not apply to
any assistance under this title that is approved in
appropriation Acts for uses that the Secretary determines are
incapable of geographic allocation, including amendments of
existing housing assistance payments contracts, renewal of such
contracts, assistance to families that would otherwise lose
assistance due to the decision of the project owner to prepay
the project mortgage or not to renew the housing assistance
payments contract, assistance to prevent displacement from
public or assisted housing or to provide replacement housing in
connection with the demolition or disposition of public
housing, assistance for relocation from public housing,
assistance in connection with protection of crime witnesses,
assistance for conversion from leased housing contracts under
section 23 of the United States Housing Act of 1937 (as in
effect before the enactment of the Housing and Community
Development Act of 1974), and assistance in support of the
property disposition and portfolio management functions of the
Secretary.
(c) Recapture of Amounts.--
(1) Authority.--In each fiscal year, from any budget
authority made available for assistance under this title or
section 8 of the United States Housing Act of 1937 (as in
effect before the effective date of the repeal under section
601(b) of this Act) that is obligated to a public housing
agency but remains unobligated by the agency upon the
expiration of the 8-month period beginning upon the initial
availability of such amounts for obligation by the agency, the
Secretary may deobligate an amount, as determined by the
Secretary, not exceeding 50 percent of such unobligated amount.
(2) Use.--The Secretary may reallocate and transfer any
amounts deobligated under paragraph (1) only to public housing
agencies in areas that the Secretary determines have received
less funding than other areas, based on the relative needs of
all areas.
SEC. 305. ADMINISTRATIVE FEES.
(a) Fee for Ongoing Costs of Administration.--
(1) In general.--The Secretary shall establish fees for the
costs of administering the choice-based housing assistance
program under this title.
(2) Fiscal year 1998.--
(A) Calculation.--For fiscal year 1998, the fee for
each month for which a dwelling unit is covered by a
contract for assistance under this title shall be--
(i) in the case of a public housing agency
that, on an annual basis, is administering a
program for not more than 600 dwelling units,
7.65 percent of the base amount; and
(ii) in the case of an agency that, on an
annual basis, is administering a program for
more than 600 dwelling units--
(I) for the first 600 units, 7.65
percent of the base amount; and
(II) for any additional dwelling
units under the program, 7.0 percent of
the base amount.
(B) Base amount.--For purposes of this paragraph, the
base amount shall be the higher of--
(i) the fair market rental established under
section 8(c) of the United States Housing Act
of 1937 (as in effect immediately before the
effective date of the repeal under section
601(b) of this Act) for fiscal year 1993 for a
2-bedroom existing rental dwelling unit in the
market area of the agency, and
(ii) the amount that is the lesser of (I)
such fair market rental for fiscal year 1994 or
(II) 103.5 percent of the amount determined
under clause (i),
adjusted based on changes in wage data or other
objectively measurable data that reflect the costs of
administering the program, as determined by the
Secretary. The Secretary may require that the base
amount be not less than a minimum amount and not more
than a maximum amount.
(3) Subsequent fiscal years.--For subsequent fiscal years,
the Secretary shall publish a notice in the Federal Register,
for each geographic area, establishing the amount of the fee
that would apply for public housing agencies administering the
program, based on changes in wage data or other objectively
measurable data that reflect the costs of administering the
program, as determined by the Secretary.
(4) Increase.--The Secretary may increase the fee if
necessary to reflect the higher costs of administering small
programs and programs operating over large geographic areas.
(b) Fee for Preliminary Expenses.--The Secretary shall also establish
reasonable fees (as determined by the Secretary) for--
(1) the costs of preliminary expenses, in the amount of $500,
for a public housing agency, but only in the first year that
the agency administers a choice-based housing assistance
program under this title, and only if, immediately before the
effective date of this Act, the agency was not administering a
tenant-based rental assistance program under the United States
Housing Act of 1937 (as in effect immediately before such
effective date), in connection with its initial increment of
assistance received;
(2) the costs incurred in assisting families who experience
difficulty (as determined by the Secretary) in obtaining
appropriate housing under the programs; and
(3) extraordinary costs approved by the Secretary.
(c) Transfer of Fees in Cases of Concurrent Geographical
Jurisdiction.--In each fiscal year, if any public housing agency
provides tenant-based rental assistance under section 8 of the United
States Housing Act of 1937 or housing assistance under this title on
behalf of a family who uses such assistance for a dwelling unit that is
located within the jurisdiction of such agency but is also within the
jurisdiction of another public housing agency, the Secretary shall take
such steps as may be necessary to ensure that the public housing agency
that provides the services for a family receives all or part of the
administrative fee under this section (as appropriate).
SEC. 306. AUTHORIZATIONS OF APPROPRIATIONS.
(a) In General.--There is authorized to be appropriated for providing
public housing agencies with housing assistance under this title,
$1,861,668,000 for each of fiscal years 1998, 1999, 2000, 2001, and
2002.
(b) Assistance for Disabled Families.--
(1) Authorization of appropriations.--There is authorized to
be appropriated, for choice-based housing assistance under this
title to be used in accordance with paragraph (2), $50,000,000
for fiscal year 1998, and such sums as may be necessary for
each subsequent fiscal year.
(2) Use.--The Secretary shall provide amounts made available
under paragraph (1) to public housing agencies only for use to
provide housing assistance under this title for nonelderly
disabled families (including such families relocating pursuant
to designation of a public housing development under section
227 and other nonelderly disabled families who have applied to
the agency for housing assistance under this title).
(3) Allocation of amounts.--The Secretary shall allocate and
provide amounts made available under paragraph (1) to public
housing agencies as the Secretary determines appropriate based
on the relative levels of need among the authorities for
assistance for families described in paragraph (1).
(c) Assistance for Witness Relocation.--Of the amounts made available
for choice-based housing assistance under this title for each fiscal
year, the Secretary, in consultation with the Inspector General, shall
make available such sums as may be necessary for such housing
assistance for the relocation of witnesses in connection with efforts
to combat crime in public and assisted housing pursuant to requests
from law enforcement and prosecutive agencies.
SEC. 307. CONVERSION OF SECTION 8 ASSISTANCE.
(a) In General.--Any amounts made available to a public housing
agency under a contract for annual contributions for assistance under
section 8 of the United States Housing Act of 1937 (as in effect before
the effective date of the repeal under section 601(b) of this Act) that
have not been obligated for such assistance by such agency before such
effective date shall be used to provide assistance under this title,
except to the extent the Secretary determines such use is inconsistent
with existing commitments.
(b) Exception.--Subsection (a) shall not apply to any amounts made
available under a contract for housing constructed or substantially
rehabilitated pursuant to section 8(b)(2) of the United States Housing
Act of 1937, as in effect before October 1, 1983.
SEC. 308. RECAPTURE AND REUSE OF ANNUAL CONTRACT PROJECT RESERVES UNDER
CHOICE-BASED HOUSING ASSISTANCE AND SECTION 8
TENANT-BASED ASSISTANCE PROGRAMS.
To the extent that the Secretary determines that the amount in the
reserve account for annual contributions contracts (for housing
assistance under this title or tenant-based assistance under section 8
of the United States Housing Act of 1937) that is under contract with a
public housing agency for such assistance is in excess of the amounts
needed by the agency, the Secretary shall recapture such excess amount.
The Secretary may hold recaptured amounts in reserve until needed to
enter into, amend, or renew contracts under this title or to amend or
renew contracts under section 8 of such Act for tenant-based assistance
with any agency.
Subtitle B--Choice-Based Housing Assistance for Eligible Families
SEC. 321. ELIGIBLE FAMILIES AND PREFERENCES FOR ASSISTANCE.
(a) Low-Income Requirement.--Housing assistance under this title may
be provided only on behalf of a family that--
(1) at the time that such assistance is initially provided on
behalf of the family, is determined by the public housing
agency to be a low-income family; or
(2) qualifies to receive such assistance under any other
provision of Federal law.
(b) Income Targeting.--Of the families initially assisted under this
title by a public housing agency in any year, not less than 40 percent
shall be families whose incomes do not exceed 30 percent of the area
median income, as determined by the Secretary with adjustments for
smaller and larger families. The Secretary may establish income ceiling
higher or lower than 30 percent of the area median income on the basis
of the Secretary's findings that such variations are necessary because
of unusually high or low family incomes.
(c) Reviews of Family Incomes.--
(1) In general.--Reviews of family incomes for purposes of
this title shall be subject to the provisions of section 904 of
the Stewart B. McKinney Homeless Assistance Amendments Act of
1988 and shall be conducted upon the initial provision of
housing assistance for the family and thereafter not less than
annually.
(2) Procedures.--Each public housing agency administering
housing assistance under this title shall establish procedures
that are appropriate and necessary to ensure that income data
provided to the agency and owners by families applying for or
receiving housing assistance from the agency is complete and
accurate.
(d) Preferences for Assistance.--
(1) Authority to establish.--Any public housing agency that
receives amounts under this title may establish a system for
making housing assistanceavailable on behalf of eligible
families that provides preference for such assistance to eligible
families having certain characteristics.
(2) Content.--Each system of preferences established pursuant
to this subsection shall be based upon local housing needs and
priorities, as determined by the public housing agency using
generally accepted data sources, including any information
obtained pursuant to an opportunity for public comment as
provided under section 106(e) and under the requirements
applicable to the comprehensive housing affordability strategy
for the relevant jurisdiction.
(3) Sense of the congress.--It is the sense of the Congress
that, to the greatest extent practicable, public housing
agencies involved in the selection of tenants under the
provisions of this title should adopt preferences for
individuals who are victims of domestic violence.
(e) Portability of Housing Assistance.--
(1) National portability.--An eligible family that is
selected to receive or is receiving assistance under this title
may rent any eligible dwelling unit in any area where a program
is being administered under this title. Notwithstanding the
preceding sentence, a public housing agency may require that
any family not living within the jurisdiction of the public
housing agency at the time the family applies for assistance
from the agency shall, during the 12-month period beginning on
the date of initial receipt of housing assistance made
available on behalf of the family from such agency, lease and
occupy an eligible dwelling unit located within the
jurisdiction served by the agency. The agency for the
jurisdiction into which the family moves shall have the
responsibility for administering assistance for the family.
(2) Source of funding for a family that moves.--For a family
that has moved into the jurisdiction of a public housing agency
and that, at the time of the move, has been selected to
receive, or is receiving, assistance provided by another
agency, the agency for the jurisdiction into which the family
has moved may, in its discretion, cover the cost of assisting
the family under its contract with the Secretary or through
reimbursement from the other agency under that agency's
contract.
(3) Authority to deny assistance to certain families who
move.--A family may not receive housing assistance as provided
under this subsection if the family has moved from a dwelling
unit in violation of the lease for the dwelling unit.
(4) Funding allocations.--In providing assistance amounts
under this title for public housing agencies for any fiscal
year, the Secretary may give consideration to any reduction or
increase in the number of resident families under the program
of an agency in the preceding fiscal year as a result of this
subsection.
(f) Confidentiality for Victims of Domestic Violence.--A public
housing agency shall be subject to the restrictions regarding release
of information relating to the identity and new residence of any family
receiving housing assistance who was a victim of domestic violence that
are applicable to shelters pursuant to the Family Violence Prevention
and Services Act. The agency shall work with the United States Postal
Service to establish procedures consistent with the confidentiality
provisions in the Violence Against Women Act of 1994.
SEC. 322. RESIDENT CONTRIBUTION.
(a) Amount.--
(1) Monthly rent contribution.--An assisted family shall
contribute on a monthly basis for the rental of an assisted
dwelling unit an amount that the public housing agency
determines is appropriate with respect to the family and the
unit, but which--
(A) shall not be less than the minimum monthly rental
contribution determined under subsection (b); and
(B) shall not exceed the greatest of--
(i) 30 percent of the monthly adjusted income
of the family;
(ii) 10 percent of the monthly income of the
family; and
(iii) if the family is receiving payments for
welfare assistance from a public agency and a
part of such payments, adjusted in accordance
with the actual housing costs of the family, is
specifically designated by such agency to meet
the housing costs of the family, the portion of
such payments that is so designated.
(2) Excess rental amount.--In any case in which the monthly
rent charged for a dwelling unit pursuant to the housing
assistance payments contract exceeds the applicable payment
standard (established under section 353) for the dwelling unit,
the assisted family residing in the unit shall contribute (in
addition to the amount of the monthly rent contribution
otherwise determined under paragraph (1) for such family) such
entire excess rental amount.
(b) Minimum Monthly Rental Contribution.--
(1) In general.--The public housing agency shall determine
the amount of the minimum monthly rental contribution of an
assisted family (which rent shall include any amount allowed
for utilities), which--
(A) shall be based upon factors including the
adjusted income of the family and any other factors
that the agency considers appropriate;
(B) shall be not less than $25, nor more than $50;
and
(C) may be increased annually by the agency, except
that no such annual increase may exceed 10 percent of
the amount of the minimum monthly contribution in
effect for the preceding year.
(2) Hardship Provisions.--
(A) In general.--Notwithstanding paragraph (1), a
public housing agency shall grant an exemption in whole
or in part from payment of the minimum monthly rental
contribution established under this paragraph to any
assisted family unable to pay such amount because of
financial hardship, which shall include situations in
which (i) the family has lost eligibility for or is
awaiting an eligibility determination for a Federal,
State, or local assistance program; (ii) the family
would be evicted as a result of imposition of the
minimum rent; (iii) the income of the family has
decreased because of changed circumstance, including
loss of employment; and (iv) a death in the family has
occurred; and other situations as may be determined by
the agency.
(B) Waiting period.--If an assisted family requests a
hardship exemption under this paragraph and the public
housing agency reasonably determines the hardship to be
of a temporary nature, an exemption shall not be
granted during the 90-day period beginning upon the
making of a request for the exemption. An assisted
family may not be evicted during such 90-day period for
nonpayment of rent. In such a case, if the assisted
family thereafter demonstrates that the financial
hardship is of a long-term basis, the agency shall
retroactively exempt the family from the applicability
of the minimum rent requirement for such 90-day period.
(c) Treatment of Changes in Rental Contribution.--
(1) Notification of changes.--A public housing agency shall
promptly notify the owner of an assisted dwelling unit of any
change in the resident contribution by the assisted family
residing in the unit that takes effect immediately or at a
later date.
(2) Collection of retroactive changes.--In the case of any
change in the rental contribution of an assisted family that
affects rental payments previously made, the public housing
agency shall collect any additional amounts required to be paid
by the family under such change directly from the family and
shall refund any excess rental contribution paid by the family
directly to the family.
(d) Phase-In of Rent Contribution Increases.--
(1) In general.--Except as provided in paragraph (2), for any
family that is receiving tenant-based rental assistance under
section 8 of the United States Housing Act of 1937 upon the
initial applicability of the provisions of this title to such
family, if the monthly contribution for rental of an assisted
dwelling unit to be paid by the family upon such initial
applicability is greater than the amount paid by the family
under the provisions of the United States Housing Act of 1937
immediately before such applicability, any such resulting
increase in rent contribution shall be--
(A) phased in equally over a period of not less than
3 years, if such increase is 30 percent or more of such
contribution before initial applicability; and
(B) limited to not more than 10 percent per year if
such increase is more than 10 percent but less than 30
percent of such contribution before initial
applicability.
(2) Exception.--The minimum rent contribution requirement
under subsection (b)(1) shall apply to each family described in
paragraph (1) of this subsection, notwithstanding such
paragraph.
SEC. 323. RENTAL INDICATORS.
(a) In General.--The Secretary shall establish and issue rental
indicators under this section periodically, but not less than annually,
for existing rental dwelling units that are eligible dwelling units.
The Secretary shall establish and issuethe rental indicators by housing
market area (as the Secretary shall establish) for various sizes and
types of dwelling units.
(b) Amount.--For a market area, the rental indicator established
under subsection (a) for a dwelling unit of a particular size and type
in the market area shall be a dollar amount that reflects the rental
amount for a standard quality rental unit of such size and type in the
market area that is an eligible dwelling unit.
(c) Effective Date.--The Secretary shall cause the proposed rental
indicators established under subsection (a) for each market area to be
published in the Federal Register with reasonable time for public
comment, and such rental indicators shall become effective upon the
date of publication in final form in the Federal Register.
(d) Annual Adjustment.--Each rental indicator in effect under this
section shall be adjusted to be effective on October 1 of each year to
reflect changes, based on the most recent available data trended so
that the indicators will be current for the year to which they apply,
in rents for existing rental dwelling units of various sizes and types
in the market area suitable for occupancy by families assisted under
this title.
SEC. 324. LEASE TERMS.
Rental assistance may be provided for an eligible dwelling unit only
if the assisted family and the owner of the dwelling unit enter into a
lease for the unit that--
(1) provides for a single lease term of 12 months and
continued tenancy after such term under a periodic tenancy on a
month-to-month basis;
(2) contains terms and conditions specifying that termination
of tenancy during the term of a lease shall be subject to the
provisions set forth in sections 642 and 643; and
(3) is set forth in the standard form, which is used in the
local housing market area by the owner and applies generally to
any other tenants in the property who are not assisted
families, together with any addendum necessary to include the
many terms required under this section.
A lease may include any addenda appropriate to set forth the provisions
under this title.
SEC. 325. TERMINATION OF TENANCY.
Each housing assistance payments contract shall provide that the
owner shall conduct the termination of tenancy of any tenant of an
assisted dwelling unit under the contract in accordance with applicable
State or local laws, including providing any notice of termination
required under such laws.
SEC. 326. ELIGIBLE OWNERS.
(a) Ownership Entity.--Rental assistance under this title may be
provided for any eligible dwelling unit for which the owner is any
public agency, private person or entity (including a cooperative),
nonprofit organization, agency of the Federal Government, or public
housing agency.
(b) Ineligible Owners.--
(1) In general.--Notwithstanding subsection (a), a public
housing agency--
(A) may not enter into a housing assistance payments
contract (or renew an existing contract) covering a
dwelling unit that is owned by an owner who is
debarred, suspended, or subject to limited denial of
participation under part 24 of title 24, Code of
Federal Regulations;
(B) may prohibit, or authorize the termination or
suspension of, payment of housing assistance under a
housing assistance payments contract in effect at the
time such debarment, suspension, or limited denial of
participation takes effect.
If the public housing agency takes action under subparagraph
(B), the agency shall take such actions as may be necessary to
protect assisted families who are affected by the action, which
may include the provision of additional assistance under this
title to such families.
(2) Prohibition of sale or rental to related parties.--The
Secretary shall establish guidelines to prevent housing
assistance payments for a dwelling unit that is owned by any
spouse, child, or other party who allows an owner described in
paragraph (1) to maintain control of the unit.
SEC. 327. SELECTION OF DWELLING UNITS.
(a) Family Choice.--The determination of the dwelling unit in which
an assisted family resides and for which housing assistance is provided
under this title shall be made solely by the assisted family, subject
to the provisions of this title and any applicable law.
(b) Deed Restrictions.--Housing assistance may not be used in any
manner that abrogates any local deed restriction that applies to any
housing consisting of 1 to 4 dwelling units. Nothing in this section
may be construed to affect the provisions or applicability of the Fair
Housing Act.
SEC. 328. ELIGIBLE DWELLING UNITS.
(a) In General.--A dwelling unit shall be an eligible dwelling unit
for purposes of this title only if the public housing agency to provide
housing assistance for the dwelling unit determines that the dwelling
unit--
(1) is an existing dwelling unit that is not located within a
nursing home or the grounds of any penal, reformatory, medical,
mental, or similar public or private institution; and
(2) complies--
(A) in the case of a dwelling unit located in a
jurisdiction which has in effect laws, regulations,
standards, or codes regarding habitability of
residential dwellings, with such applicable laws,
regulations, standards, or codes; or
(B) in the case of a dwelling unit located in a
jurisdiction which does not have in effect laws,
regulations, standards, or codes described in
subparagraph (A), with the housing quality standards
established under subsection (c).
Each public housing agency providing housing assistance shall identify,
in the local housing management plan for the agency, whether the agency
is utilizing the standard under subparagraph (A) or (B) of paragraph
(2).
(b) Determinations.--
(1) In general.--A public housing agency shall make the
determinations required under subsection (a) pursuant to an
inspection of the dwelling unit conducted before any assistance
payment is made for the unit.
(2) Expeditious inspection.--Inspections of dwelling units
under this subsection shall be made before the expiration of
the 15-day period beginning upon a request by the resident or
landlord to the public housing agency. The performance of the
agency in meeting the 15-day inspection deadline shall be taken
into account in assessing the performance of the agency.
(c) Federal Housing Quality Standards.--The Secretary shall establish
housing quality standards under this subsection that ensure that
assisted dwelling units are safe, clean, and healthy. Such standards
shall include requirements relating to habitability, including
maintenance, health and sanitation factors, condition, and construction
of dwellings, and shall, to the greatest extent practicable, be
consistent with the standards established under section 232(b). The
Secretary shall differentiate between major and minor violations of
such standards.
(d) Annual Inspections.--Each public housing agency providing housing
assistance shall make an annual inspection of each assisted dwelling
unit during the term of the housing assistance payments contracts for
the unit to determine whether the unit is maintained in accordance with
the requirements under subsection (a)(2). The agency shall retain the
records of the inspection for a reasonable time and shall make the
records available upon request to the Secretary, the Inspector General
for the Department of Housing and Urban Development, and any auditor
conducting an audit under section 541.
(e) Inspection Guidelines.--The Secretary shall establish procedural
guidelines and performance standards to facilitate inspections of
dwelling units and conform such inspections with practices utilized in
the private housing market. Such guidelines and standards shall take
into consideration variations in local laws and practices of public
housing agencies and shall provide flexibility to authorities
appropriate to facilitate efficient provision of assistance under this
title.
(f) Rule of Construction.--This section may not be construed to
prevent the provision of housing assistance in connection with
supportive services for elderly or disabled families.
SEC. 329. HOMEOWNERSHIP OPTION.
(a) In General.--A public housing agency providing housing assistance
under this title may provide homeownership assistance to assist
eligible families to purchase a dwelling unit (including purchase under
lease-purchase homeownership plans).
(b) Requirements.--A public housing agency providing homeownership
assistance under this section shall, as a condition of an eligible
family receiving such assistance, require the family to--
(1) demonstrate that the family has sufficient income from
employment or other sources (other than public assistance), as
determined in accordance with requirements established by the
agency; and
(2) meet any other initial or continuing requirements
established by the public housing agency.
(c) Downpayment Requirement.--
(1) In general.--A public housing agency may establish
minimum downpayment requirements, if appropriate, in connection
with loans made for the purchase of dwelling units for which
homeownership assistance is provided under this section. If the
agency establishes a minimum downpayment requirement, the
agency shall permit the family to use grant amounts, gifts from
relatives, contributions from private sources, and similar
amounts as downpayment amounts in such purchase, subject to the
requirements of paragraph (2).
(2) Direct family contribution.--In purchasing housing
pursuant to this section subject to a downpayment requirement,
each family shall contribute an amount of the downpayment, from
resources of the family other than grants, gifts,
contributions, or other similar amounts referred to in
paragraph (1), that is not less than 1 percent of the purchase
price.
(d) Ineligibility Under Other Programs.--A family may not receive
homeownership assistance pursuant to this section during any period
when assistance is being provided for the family under other Federal
homeownership assistance programs, as determined by the Secretary,
including assistance under the HOME Investment Partnerships Act, the
Homeownership and Opportunity Through HOPE Act, title II of the Housing
and Community Development Act of 1987, and section 502 of the Housing
Act of 1949.
SEC. 330. ASSISTANCE FOR RENTAL OF MANUFACTURED HOMES.
(a) Authority.--Nothing in this title may be construed to prevent a
public housing agency from providing housing assistance under this
title on behalf of a low-income family for the rental of--
(1) a manufactured home that is the principal residence of
the family and the real property on which the home is located;
or
(2) the real property on which is located a manufactured
home, which is owned by the family and is the principal
residence of the family.
(b) Assistance for Certain Families Owning Manufactured Homes.--
(1) Authority.--Notwithstanding section 351 or any other
provision of this title, a public housing agency that receives
amounts under a contract under section 302 may enter into a
housing assistance payment contract to make assistance payments
under this title to a family that owns a manufactured home, but
only as provided in paragraph (2).
(2) Limitations.--In the case only of a low-income family
that owns a manufactured home, rents the real property on which
it is located, and to whom housing assistance under this title
has been made available for the rental of such property, the
public housing agency making such assistance available shall
enter into a contract to make housing assistance payments under
this title directly to the family (rather than to the owner of
such real property) if--
(A) the owner of the real property refuses to enter
into a contract to receive housing assistance payments
pursuant to section 351(a);
(B) the family was residing in such manufactured home
on such real property at the time such housing
assistance was initially made available on behalf of
the family;
(C) the family provides such assurances to the
agency, as the Secretary may require, to ensure that
amounts from the housing assistance payments are used
for rental of the real property; and
(D) the rental of the real property otherwise
complies with the requirements for assistance under
this title.
A contract pursuant to this subsection shall be subject to the
provisions of section 351 and any other provisions applicable
to housing assistance payments contracts under this title,
except that the Secretary may provide such exceptions as the
Secretary considers appropriate to facilitate the provision of
assistance under this subsection.
Subtitle C--Payment of Housing Assistance on Behalf of Assisted
Families
SEC. 351. HOUSING ASSISTANCE PAYMENTS CONTRACTS.
(a) In General.--Each public housing agency that receives amounts
under a contract under section 302 may enter into housing assistance
payments contracts with owners of existing dwelling units to make
housing assistance payments to such owners in accordance with this
title.
(b) PHA Acting As Owner.--A public housing agency may enter into a
housing assistance payments contract to make housing assistance
payments under this title to itself (or any agency or instrumentality
thereof) as the owner of dwelling units (other than public housing),
and the agency shall be subject to the same requirements that are
applicable to other owners, except that the determinations under
section 328(a) and 354(b) shall be made by a competent party not
affiliated with the agency, and the agency shall be responsible for any
expenses of such determinations.
(c) Provisions.--Each housing assistance payments contract shall--
(1) have a term of not more than 12 months;
(2) require that the assisted dwelling unit may be rented
only pursuant to a lease that complies with the requirements of
section 324;
(3) comply with the requirements of sections 325, 642, and
643 (relating to termination of tenancy);
(4) require the owner to maintain the dwelling unit in
accordance with the applicable standards under section
328(a)(2); and
(5) provide that the screening and selection of eligible
families for assisted dwelling units shall be the function of
the owner.
SEC. 352. AMOUNT OF MONTHLY ASSISTANCE PAYMENT.
(a) Units Having Gross Rent Exceeding Payment Standard.--In the case
of a dwelling unit bearing a gross rent that exceeds the payment
standard established under section 353 for a dwelling unit of the
applicable size and located in the market area in which such assisted
dwelling unit is located, the amount of the monthly assistance payment
shall be the amount by which such payment standard exceeds the amount
of the resident contribution determined in accordance with section
322(a)(1).
(b) Shopping Incentive for Units Having Gross Rent Not Exceeding
Payment Standard.--In the case of an assisted family renting an
eligible dwelling unit bearing a gross rent that does not exceed the
payment standard established under section 353 for a dwelling unit of
the applicable size and located in the market area in which such
assisted dwelling unit is located, the following requirements shall
apply:
(1) Amount of monthly assistance payment.--The amount of the
monthly assistance payment for housing assistance under this
title on behalf of the assisted family shall be the amount by
which the gross rent for the dwelling unit exceeds the amount
of the resident contribution.
(2) Escrow of shopping incentive savings.--An amount equal to
50 percent of the difference between payment standard and the
gross rent for the dwelling unit shall be placed in an interest
bearing escrow account on behalf of such family on a monthly
basis by the public housing agency. Amounts in the escrow
account shall be made available to the assisted family on an
annual basis.
(3) Deficit reduction.--The public housing agency making
housing assistance payments on behalf of such assisted family
in a fiscal year shall reserve from amounts made available to
the agency for assistance payments for such fiscal year an
amount equal to the amount described in paragraph (2). At the
end of each fiscal year, the Secretary shall recapture any such
amounts reserved by public housing agencies and such amounts
shall be covered into the General Fund of the Treasury of the
United States.
For purposes of this section, in the case of a family receiving
homeownership assistance under section 329, the term ``gross rent''
shall mean the homeownership costs to the family as determined in
accordance with guidelines of the Secretary.
SEC. 353. PAYMENT STANDARDS.
(a) Establishment.--Each public housing agency providing housing
assistance under this title shall establish payment standards under
this section for various areas, and sizes and types of dwelling units,
for use in determining the amount of monthly housing assistance payment
to be provided on behalf of assisted families.
(b) Use of Rental Indicators.--The payment standard for each size and
type of housing for each market area shall be an amount that is not
less than 80 percent, and not greater than 120 percent, of the rental
indicator established under section 323 for such size and type for such
area.
(c) Review.--If the Secretary determines, at any time, that a
significant percentage of the assisted families who are assisted by a
public housing agency and are occupying dwelling units of a particular
size are paying more than 30 percent of their adjusted incomes for
rent, the Secretary shall review the payment standardestablished by the
agency for such size dwellings. If, pursuant to the review, the
Secretary determines that such payment standard is not appropriate to
serve the needs of the low-income population of the jurisdiction served
by the agency (taking into consideration rental costs in the area), as
identified in the approved community improvement plan of the agency,
the Secretary may require the public housing agency to modify the
payment standard.
SEC. 354. REASONABLE RENTS.
(a) Establishment.--The rent charged for a dwelling unit for which
rental assistance is provided under this title shall be established
pursuant to negotiation and agreement between the assisted family and
the owner of the dwelling unit.
(b) Reasonableness.--
(1) Determination.--A public housing agency providing rental
assistance under this title for a dwelling unit shall, before
commencing assistance payments for a unit (with respect to
initial contract rents and any rent revisions), determine
whether the rent charged for the unit exceeds the rents charged
for comparable units in the applicable private unassisted
market.
(2) Unreasonable rents.--If the agency determines that the
rent charged for a dwelling unit exceeds such comparable rents,
the agency shall--
(A) inform the assisted family renting the unit that
such rent exceeds the rents for comparable unassisted
units in the market; and
(B) refuse to provide housing assistance payments for
such unit.
SEC. 355. PROHIBITION OF ASSISTANCE FOR VACANT RENTAL UNITS.
If an assisted family vacates a dwelling unit for which rental
assistance is provided under a housing assistance payments contract
before the expiration of the term of the lease for the unit, rental
assistance pursuant to such contract may not be provided for the unit
after the month during which the unit was vacated.
Subtitle D--General and Miscellaneous Provisions
SEC. 371. DEFINITIONS.
For purposes of this title:
(1) Assisted dwelling unit.--The term ``assisted dwelling
unit'' means a dwelling unit in which an assisted family
resides and for which housing assistance payments are made
under this title.
(2) Assisted family.--The term ``assisted family'' means an
eligible family on whose behalf housing assistance payments are
made under this title or who has been selected and approved for
housing assistance.
(3) Choice-based.--The term ``choice-based'' means, with
respect to housing assistance, that the assistance is not
attached to a dwelling unit but can be used for any eligible
dwelling unit selected by the eligible family.
(4) Eligible dwelling unit.--The term ``eligible dwelling
unit'' means a dwelling unit that complies with the
requirements under section 328 for consideration as an eligible
dwelling unit.
(5) Eligible family.--The term ``eligible family'' means a
family that meets the requirements under section 321(a) for
assistance under this title.
(6) Homeownership assistance.--The term ``homeownership
assistance'' means housing assistance provided under section
329 for the ownership of a dwelling unit.
(7) Housing assistance.--The term ``housing assistance''
means choice-based assistance provided under this title on
behalf of low-income families for the rental or ownership of an
eligible dwelling unit.
(8) Housing assistance payments contract.--The term ``housing
assistance payments contract'' means a contract under section
351 between a public housing agency (or the Secretary) and an
owner to make housing assistance payments under this title to
the owner on behalf of an assisted family.
(9) Public housing agency.--The terms ``public housing
agency'' and ``agency'' have the meaning given such terms in
section 103, except that the terms include--
(A) a consortia of public housing agencies that the
Secretary determines has the capacity and capability to
administer a program for housing assistance under this
title in an efficient manner;
(B) any other entity that, upon the effective date of
this Act, was administering any program for tenant-
based rental assistance under section 8 of the United
States Housing Act of 1937 (as in effect before the
effective date of the repeal under section 601(b) of
this Act), pursuant to a contract with the Secretary or
a public housing agency; and
(C) with respect to any area in which no public
housing agency has been organized or where the
Secretary determines that a public housing agency is
unwilling or unable to implement this title, or is not
performing effectively--
(i) the Secretary or another entity that by
contract agrees to receive assistance amounts
under this title and enter into housing
assistance payments contracts with owners and
perform the other functions of public housing
agency under this title; or
(ii) notwithstanding any provision of State
or local law, a public housing agency for
another area that contracts with the Secretary
to administer a program for housing assistance
under this title, without regard to any
otherwise applicable limitations on its area of
operation.
(10) Owner.--The term ``owner'' means the person or entity
having the legal right to lease or sublease dwelling units.
Such term includes any principals, general partners, primary
shareholders, and other similar participants in any entity
owning a multifamily housing project, as well as the entity
itself.
(11) Rent.--The terms ``rent'' and ``rental'' include, with
respect to members of a cooperative, the charges under the
occupancy agreements between such members and the cooperative.
(12) Rental assistance.--The term ``rental assistance'' means
housing assistance provided under this title for the rental of
a dwelling unit.
SEC. 372. RENTAL ASSISTANCE FRAUD RECOVERIES.
(a) Authority To Retain Recovered Amounts.--The Secretary shall
permit public housing agencies administering housing assistance under
this title to retain, out of amounts obtained by the authorities from
tenants that are due as a result of fraud and abuse, an amount
(determined in accordance with regulations issued by the Secretary)
equal to the greater of--
(1) 50 percent of the amount actually collected; or
(2) the actual, reasonable, and necessary expenses related to
the collection, including costs of investigation, legal fees,
and collection agency fees.
(b) Use.--Amounts retained by an agency shall be made available for
use in support of the affected program or project, in accordance with
regulations issued by the Secretary. If the Secretary is the principal
party initiating or sustaining an action to recover amounts from
families or owners, the provisions of this section shall not apply.
(c) Recovery.--Amounts may be recovered under this section--
(1) by an agency through a lawsuit (including settlement of
the lawsuit) brought by the agency or through court-ordered
restitution pursuant to a criminal proceeding resulting from an
agency's investigation where the agency seeks prosecution of a
family or where an agency seeks prosecution of an owner;
(2) through administrative repayment agreements with a family
or owner entered into as a result of an administrative
grievance procedure conducted by an impartial decisionmaker in
accordance with section 110; or
(3) through an agreement between the parties.
SEC. 373. STUDY REGARDING GEOGRAPHIC CONCENTRATION OF ASSISTED
FAMILIES.
(a) In General.--The Secretary shall conduct a study of the
geographic areas in the State of Illinois served by the Housing
Authority of Cook County and the Chicago Housing Authority and submit
to the Congress a report and a specific proposal, which addresses and
resolves the issues of--
(1) the adverse impact on local communities due to geographic
concentration of assisted households under the tenant-based
housing programs under section 8 of the United States Housing
Act of 1937 (as in effect upon the enactment of this Act) and
under this title; and
(2) facilitating the deconcentration of such assisted
households by providing broader housing choices to such
households.
The study shall be completed, and the report shall be submitted, not
later than 90 days after the date of the enactment of this Act.
(b) Concentration.--For purposes of this section, the term
``concentration'' means, with respect to any area within a census
tract, that--
(1) 15 percent or more of the households residing within such
area have incomes which do not exceed the poverty level; or
(2) 15 percent or more of the total affordable housing stock
located within such area is assisted housing.
(c) Effective Date.--This section shall take effect on the date of
the enactment of this Act.
SEC. 374. STUDY REGARDING RENTAL ASSISTANCE.
The Secretary shall conduct a nationwide study of the choice-based
housing assistance program under this title and the tenant-based rental
assistance program under section 8 of the United States Housing Act of
1937 (as in effect pursuant to section 601(c) and 602(b)). The study
shall, for various localities--
(1) determine who are the providers of the housing in which
families assisted under such programs reside;
(2) describe and analyze the physical and demographic
characteristics of the housing in which such assistance is
used, including, for housing in which at least one such
assisted family resides, the total number of units in the
housing and the number of units in the housing for which such
assistance is provided;
(3) determine the total number of units for which such
assistance is provided;
(4) describe the durations that families remain on waiting
lists before being provided such housing assistance; and
(5) assess the extent and quality of participation of housing
owners in such assistance programs in relation to the local
housing market, including comparing--
(A) the quality of the housing assisted to the
housing generally available in the same market; and
(B) the extent to which housing is available to be
occupied using such assistance to the extent to which
housing is generally available in the same market.
The Secretary shall submit a report describing the results of the study
to the Congress not later than the expiration of the 2-year period
beginning on the date of the enactment of this Act.
TITLE IV--HOME RULE FLEXIBLE GRANT OPTION
SEC. 401. PURPOSE.
The purpose of this title is to give local governments and
municipalities the flexibility to design creative approaches for
providing and administering Federal housing assistance based on the
particular needs of the communities that--
(1) give incentives to low-income families with children
where the head of household is working, seeking work, or
preparing for work by participating in job training,
educational programs, or programs that assist people to obtain
employment and become economically self-sufficient;
(2) reduce cost and achieve greater cost-effectiveness in
Federal housing assistance expenditures;
(3) increase housing choices for low-income families; and
(4) reduce excessive geographic concentration of assisted
families.
SEC. 402. FLEXIBLE GRANT PROGRAM.
(a) Authority and Use.--The Secretary shall carry out a program under
which a jurisdiction may, upon the application of the jurisdiction and
the review and approval of the Secretary, receive, combine, and enter
into performance-based contracts for the use of amounts of covered
housing assistance in a period consisting of not less than 1 nor more
than 5 fiscal years in the manner determined appropriate by the
participating jurisdiction--
(1) to provide housing assistance and services for low-income
families in a manner that facilitates the transition of such
families to work;
(2) to reduce homelessness;
(3) to increase homeownership among low-income families; and
(4) for other housing purposes for low-income families
determined by the participating jurisdiction.
(b) Inapplicability of Categorical Program Requirements.--
(1) In general.--Except as provided in paragraph (2) and
section 405, the provisions of this Act regarding use of
amounts made available under each of the programs included as
covered housing assistance and the program requirements
applicable to each such program shall not apply to amounts
received by a jurisdiction pursuant to this title.
(2) Applicability of certain laws.--This title may not be
construed to exempt assistance under this Act from, or make
inapplicable any provision of this Act or of any other law that
requires that assistance under this Act be provided in
compliance with--
(A) title VI of the Civil Rights Act of 1964 (42
U.S.C. 2000d et seq.);
(B) the Fair Housing Act (42 U.S.C. 3601 et seq.);
(C) section 504 of the Rehabilitation Act of 1973 (29
U.S.C. 701 et seq.);
(D) title IX of the Education Amendments of 1972 (86
Stat. 373 et seq.);
(E) the Age Discrimination Act of 1975 (42 U.S.C.
6101 et seq.);
(F) the Americans with Disabilities Act of 1990; or
(G) the National Environmental Policy Act of 1969 and
other provisions of law that further protection of the
environment (as specified in regulations that shall be
issued by the Secretary).
(c) Effect on Program Allocations for Covered Housing Assistance.--
The amount of assistance received pursuant to this title by a
participating jurisdiction shall not be decreased, because of
participation in the program under this title, from the sum of the
amounts that otherwise would be made available for or within the
participating jurisdiction under the programs included as covered
housing assistance.
SEC. 403. COVERED HOUSING ASSISTANCE.
For purposes of this title, the term ``covered housing assistance''
means--
(1) operating assistance provided under section 9 of the
United States Housing Act of 1937 (as in effect before the
effective date of the repeal under section 601(b) of this Act);
(2) modernization assistance provided under section 14 of
such Act;
(3) assistance provided under section 8 of such Act for the
certificate and voucher programs;
(4) assistance for public housing provided under title II of
this Act; and
(5) choice-based rental assistance provided under title III
of this Act.
Such term does not include any amounts obligated for assistance under
existing contracts for project-based assistance under section 8 of the
United States Housing Act of 1937 or section 601(f) of this Act.
SEC. 404. PROGRAM REQUIREMENTS.
(a) Eligible Families.--Each family on behalf of whom assistance is
provided for rental or homeownership of a dwelling unit using amounts
made available pursuant to this title shall be a low-income family.
Each dwelling unit assisted using amounts made available pursuant to
this title shall be available for occupancy only by families that are
low-income families at the time of their initial occupancy of the unit.
(b) Compliance With Assistance Plan.--A participating jurisdiction
shall provide assistance using amounts received pursuant to this title
in the manner set forth in the plan of the jurisdiction approved by the
Secretary under section 406(a)(2).
(c) Rent Policy.--A participating jurisdiction shall ensure that the
rental contributions charged to families assisted with amounts received
pursuant to this title are reasonable and designed to encourage
employment and self-sufficiency by participating families.
(d) Housing Quality Standards.--
(1) Compliance.--A participating jurisdiction shall ensure
that housing assisted with amounts received pursuant to this
title is maintained in a condition that complies--
(A) in the case of housing located in a jurisdiction
which has in effect laws, regulations, standards, or
codes regarding habitability of residential dwellings,
with such applicable laws, regulations, standards, or
codes; or
(B) in the case of housing located in a jurisdiction
which does not have in effect laws, regulations,
standards, or codes described in paragraph (1), with
the housing quality standards established under
paragraph (2).
(2) Federal housing quality standards.--The Secretary shall
establish housing quality standards under this paragraph that
ensure that dwelling units assisted under this title are safe,
clean, and healthy. Such standards shall include requirements
relating to habitability, including maintenance, health and
sanitation factors, condition, and construction of dwellings,
and shall, to the greatest extent practicable, be consistent
with the standards established under sections 232(b) and
328(c). The Secretary shall differentiate between major and
minor violations of such standards.
(e) Number of Families Assisted.--A participating jurisdiction shall
ensure that, in providing assistance with amounts received pursuant to
this title in each fiscal year, not less than substantially the same
total number of eligible low-income families are assisted as would have
been assisted had the amounts of covered housing assistance not been
combined for use under this title.
(f) Consistency With Welfare Program.--A participating jurisdiction
shall ensure that assistance provided with amounts received pursuant to
this title is provided in a manner that is consistent with the welfare,
public assistance, or other economic self-sufficiency programs
operating in the jurisdiction by facilitating the transition of
assisted families to work, which may include requiring compliance with
the requirements under such welfare, public assistance, or self-
sufficiency programs as a condition of receiving housing assistance
with amounts provided under this title.
(g) Treatment of Currently Assisted Families.--
(1) Continuation of assistance.--A participating jurisdiction
shall ensure that each family that was receiving housing
assistance or residing in an assisted dwelling unit pursuant to
any of the programs included as covered housing assistance
immediately before the jurisdiction initially provides
assistance pursuant to this title shall be offered assistance
or an assisted dwelling unit under the program of the
jurisdiction under this title.
(2) Phase-in of rent contribution increases.--For any family
that was receiving housing assistance pursuant to any of the
programs included as covered housing assistance immediately
before the jurisdiction initially provides assistance pursuant
to this title, if the monthly contribution for rental of a
dwelling unit assisted under this title to be paid by the
family upon initial applicability of this title is greater than
the amount paid by the family immediately before such
applicability, any such resulting increase in rent contribution
shall be--
(A) phased in equally over a period of not less than
3 years, if such increase is 30 percent or more of such
contribution before initial applicability; and
(B) limited to not more than 10 percent per year if
such increase is more than 10 percent but less than 30
percent of such contribution before initial
applicability.
(h) Amount of Assistance.--In providing housing assistance using
amounts received pursuant to this title, the amount of assistance
provided by a participating jurisdiction on behalf of each assisted
low-income family shall be sufficient so that if the family used such
assistance to rent a dwelling unit having a rent equal to the 40th
percentile of rents for standard quality rental units of the same size
and type in the same market area, the contribution toward rental paid
by the family would be affordable (as such term is defined by the
jurisdiction) to the family.
(i) Portability.--A participating jurisdiction shall ensure that
financial assistance for housing provided with amounts received
pursuant to this title may be used by a family moving from an assisted
dwelling unit located within the jurisdiction to obtain a dwelling unit
located outside of the jurisdiction.
(j) Preferences.--In providing housing assistance using amounts
received pursuant to this section, a participating jurisdiction may
establish a system for making housing assistance available that
provides preference for assistance to families having certain
characteristics. A system of preferences established pursuant to this
subsection shall be based on local housing needs and priorities, as
determined by the jurisdiction using generally accepted data sources.
SEC. 405. APPLICABILITY OF CERTAIN PROVISIONS.
(a) Public Housing Demolition and Disposition Requirements.--Section
261 shall continue to apply to public housing notwithstanding any use
of the housing under this title.
(b) Labor Standards.--Section 112 shall apply to housing assisted
with amounts provided pursuant to this title, other than housing
assisted solely due to occupancy by families receiving tenant-based
assistance.
SEC. 406. APPLICATION.
(a) In General.--The Secretary shall provide for jurisdictions to
submit applications to receive and use covered housing assistance
amounts as authorized in this title for periods of not less than 1 and
not more than 5 fiscal years. An application--
(1) shall be submitted only after the jurisdiction provides
for citizen participation through a public hearing and, if
appropriate, other means;
(2) shall include a plan developed by the jurisdiction for
the provision of housing assistance with amounts received
pursuant to this title that takes into consideration comments
from the public hearing and any other public comments on the
proposed program, and comments from current and prospective
residents who would be affected, and that includes criteria for
meeting each of the requirements under section 404 and this
title;
(3) shall describe how the plan for use of amounts will
assist in meeting the goals set forth in section 401;
(4) shall propose standards for measuring performance in
using assistance provided pursuant to this title based on the
performance standards under subsection (b)(2);
(5) shall propose the length of the period for which the
jurisdiction is applying for assistance under this title;
(6) may include a request assistance for training and
technical assistance to assist with design of the program and
to participate in a detailed evaluation;
(7) shall--
(A) in the case of the application of any
jurisdiction within whose boundaries are areas subject
to any other unit of general local government, include
the signed consent of the appropriate executive
official of such unit to the application; and
(B) in the case of the application of a consortia of
units of general local government (as provided under
section 409(1)(B)), include the signed consent of the
appropriate executive officials of each unit included
in the consortia;
(8) shall include information sufficient, in the
determination of the Secretary--
(A) to demonstrate that the jurisdiction has or will
have management and administrative capacity sufficient
to carry out the plan under paragraph (2);
(B) to demonstrate that carrying out the plan will
not result in excessive duplication of administrative
efforts and costs, particularly with respect to
activities performed by public housing agencies
operating within the boundaries of the jurisdiction;
(C) to describe the function and activities to be
carried out by such public housing agencies affected by
the plan; and
(D) to demonstrate that the amounts received by the
jurisdiction will be maintained separate from other
funds available to the jurisdiction and will be used
only to carry out the plan; and
(9) shall include information describing how the jurisdiction
will make decisions regarding asset management of housing for
low-income families under programs for covered housing
assistance or assisted with grant amounts under this title.
A plan required under paragraph (2) to be included in the application
may be contained in a memorandum of agreement or other document
executed by a jurisdiction and public housing agency, if such document
is submitted together with the application.
(b) Review, Approval, and Performance Standards.--
(1) Review.--The Secretary shall review applications for
assistance pursuant to this title and shall approve or
disapprove such applications within 60 days after their
submission. The Secretary shall provide affected public housing
agencies an opportunity to review an application submitted
under this subsection and to provide written comments on the
application, which shall be a period of not less than 30 days
ending before the Secretary approves or disapproves the
application. If the Secretary determines that the application
complies with the requirements of this title, the Secretary
shall offer to enter into an agreement with jurisdiction
providing for assistance pursuant to this title and
incorporating a requirement that the jurisdiction achieve a
particular level of performance in each of the areas for which
performance standards are established under paragraph (2). If
the Secretary determines that an application does not comply
with the requirements of this title, the Secretary shall notify
the jurisdiction submitting the application of the reasons for
such disapproval and actions that may be taken to make the
application approvable.
(2) Performance standards.--The Secretary shall establish
standards for measuring performance of jurisdictions in the
following areas:
(A) Success in moving dependent low-income families
to economic self-sufficiency.
(B) Success in reducing the numbers of long-term
homeless families.
(C) Decrease in the per-family cost of providing
assistance.
(D) Reduction of excessive geographic concentration
of assisted families.
(E) Any other performance goals that the Secretary
may prescribe.
(3) Approval.--If the Secretary and a jurisdiction that the
Secretary determines has submitted an application meeting the
requirements of this title enter into an agreement referred to
in paragraph (1), the Secretary shall approve the application
and provide covered housing assistance for the jurisdiction in
the manner authorized under this title. The Secretary may not
approve any application for assistance pursuant to this title
unless the Secretary and jurisdiction enter into an agreement
referred to in paragraph (1). The Secretary shall establish
requirements for the approval of applications under this
section submitted by public housing agencies designated under
section 533(a) as troubled, which may include additional or
different criteria determined by the Secretary to be more
appropriate for such agencies.
(c) Status of PHA's.--Nothing in this section or title may be
construed to require any change in the legal status of any public
housing agency or in any legal relationship between a jurisdiction and
a public housing agency as a condition of participation in the program
under this title.
SEC. 407. TRAINING.
The Secretary, in consultation with representatives of public and
assisted housing interests, shall provide training and technical
assistance relating to providing assistance under this title and
conduct detailed evaluations of up to 30 jurisdictions for the purpose
of identifying replicable program models that are successful at
carrying out the purposes of this title.
SEC. 408. ACCOUNTABILITY.
(a) Performance Goals.--The Secretary shall monitor the performance
of participating jurisdictions in providing assistance pursuant to this
title based on the performance standards contained in the agreements
entered into pursuant to section 406(b)(1).
(b) Keeping Records.--Each participating jurisdiction shall keep such
records as the Secretary may prescribe as reasonably necessary to
disclose the amounts and the disposition of amounts provided pursuant
to this title, to ensure compliance with the requirements of this title
and to measure performance against the performance goals under
subsection (a).
(c) Reports.--Each participating jurisdiction agency shall submit to
the Secretary a report, or series of reports, in a form and at a time
specified by the Secretary. The reports shall--
(1) document the use of funds made available under this
title;
(2) provide such information as the Secretary may request to
assist the Secretary in assessing the program under this title;
and
(3) describe and analyze the effect of assisted activities in
addressing the purposes of this title.
(d) Access to Documents by Secretary.--The Secretary shall have
access for the purpose of audit and examination to any books,
documents, papers, and records that are pertinent to assistance in
connection with, and the requirements of, this title.
(e) Access to Documents by Comptroller General.--The Comptroller
General of the United States, or any of the duly authorized
representatives of the Comptroller General, shall have access for the
purpose of audit and examination to any books, documents, papers, and
records that are pertinent to assistance in connection with, and the
requirements of, this title.
SEC. 409. DEFINITIONS.
For purposes of this title, the following definitions shall apply:
(1) Jurisdiction.--The term ``jurisdiction'' means--
(A) a unit of general local government (as such term
is defined in section 104 of the Cranston-Gonzalez
National Affordable Housing Act) that has boundaries,
for purposes of carrying out this title, that--
(i) wholly contain the area within which a
public housing agency is authorized to operate;
and
(ii) do not contain any areas contained
within the boundaries of any other
participating jurisdiction; and
(B) a consortia of such units of general local
government, organized for purposes of this title.
(2) Participating jurisdiction.--The term ``participating
jurisdiction'' means, with respect to a period for which such
approval is made, a jurisdiction that has been approved under
section 406(b)(3) to receive assistance pursuant to this title
for such fiscal year.
TITLE V--ACCOUNTABILITY AND OVERSIGHT OF PUBLIC HOUSING AGENCIES
Subtitle A--Study of Alternative Methods for Evaluating Public Housing
Agencies
SEC. 501. IN GENERAL.
The Secretary of Housing and Urban Development shall provide under
section 505 for a study to be conducted to determine the effectiveness
of various alternative methods of evaluating the performance of public
housing agencies and other providers of federally assisted housing.
SEC. 502. PURPOSES.
The purposes of the study under this subtitle shall be--
(1) to identify and examine various methods of evaluating and
improving the performance of public housing agencies in
administering public housing and tenant-based rental assistance
programs and of other providers of federally assisted housing,
which are alternatives to oversight by the Department of
Housing and Urban Development; and
(2) to identify specific monitoring and oversight activities
currently conducted by the Department of Housing and Urban
Development that are insufficient or ineffective in accurately
and efficiently assessing the performance of public housing
agencies and other providers of federally assisted housing, and
to evaluate whether such activities should be eliminated,
modified, or transferred to other entities (including
government and private entities) to increase accuracy and
effectiveness and improve monitoring.
SEC. 503. EVALUATION OF VARIOUS PERFORMANCE EVALUATION SYSTEMS.
To carry out the purpose under section 502(1), the study under this
subtitle shall identify, and analyze and assess the costs and benefits
of, the following methods of regulating and evaluating the performance
of public housing agencies and other providers of federally assisted
housing:
(1) Current system.--The system pursuant to the United States
Housing Act of 1937 (as in effect upon the enactment of this
Act), including the methods and requirements under such system
for reporting, auditing, reviewing, sanctioning, and monitoring
of such agencies and housing providers and the public housing
management assessment program pursuant to subtitle C of this
title (and section 6(j) of the United States Housing Act of
1937 (as in effect upon the enactment of this Act)).
(2) Accreditation models.--Various models that are based upon
accreditation of such agencies and housing providers, subject
to the following requirements:
(A) The study shall identify and analyze various
models used in other industries and professions for
accreditation and determine the extent of their
applicability to the programs for public housing and
federally assisted housing.
(B) If any accreditation models are determined to be
applicable to the public and federally assisted housing
programs, the study shall identify appropriate goals,
objectives, and procedures for an accreditation program
for such agencies housing providers.
(C) The study shall evaluate the effectiveness of
establishing an independent accreditation and
evaluation entity to assist, supplement, or replace the
role of the Department of Housing and Urban Development
in assessing and monitoring the performance of such
agencies and housing providers.
(D) The study shall identify the necessary and
appropriate roles and responsibilities of various
entities that would be involved in an accreditation
program, including the Department of Housing and Urban
Development, the Inspector General of the Department,
an accreditation entity, independent auditors and
examiners, local entities, and public housing agencies.
(E) The study shall determine the costs involved in
developing and maintaining such an independent
accreditation program.
(F) The study shall analyze the need for technical
assistance to assist public housing agencies in
improving performance and identify the most effective
methods to provide such assistance.
(3) Performance based models.--Various performance-based
models, including systems that establish performance goals or
targets, assess the compliance with such goals or targets, and
provide for incentives or sanctions based on performance
relative to such goals or targets.
(4) Local review and monitoring models.--Various models
providing for local, resident, and community review and
monitoring of such agencies and housing providers, including
systems for review and monitoring by local and State
governmental bodies and agencies.
(5) Private models.--Various models using private contractors
for review and monitoring of such agencies and housing
providers.
(6) Other models.--Various models of any other systems that
may be more effective and efficient in regulating and
evaluating such agencies and housing providers.
SEC. 504. CONSULTATION.
The entity that, pursuant to section 505, carries out the study under
this subtitle shall, in carrying out the study, consult with
individuals and organization experienced in managing public housing,
private real estate managers, representatives from State and local
governments, residents of public housing, families and individuals
receiving choice- or tenant-based assistance, the Secretary of Housing
and Urban Development, the Inspector General of the Department of
Housing and Urban Development, and the Comptroller General of the
United States.
SEC. 505. CONTRACT TO CONDUCT STUDY.
(a) In General.--Subject to subsection (b), the Secretary shall enter
into a contract with a public or nonprofit private entity to conduct
the study under this subtitle, using amounts made available pursuant to
section 507.
(b) National Academy of Public Administration.--The Secretary shall
request the National Academy of Public Administration to enter into the
contract under paragraph (1) to conduct the study under this subtitle.
If such Academy declines to conduct the study, the Secretary shall
carry out such paragraph through other public or nonprofit private
entities.
SEC. 506. REPORT.
(a) Interim Report.--The Secretary shall ensure that not later than
the expiration of the 6-month period beginning on the date of the
enactment of this Act, the entity conducting the study under this
subtitle submits to the Congress an interim report describing the
actions taken to carry out the study, the actions to be taken to
complete the study, and any findings and recommendations available at
the time.
(b) Final Report.--The Secretary shall ensure that--
(1) not later than the expiration of the 12-month period
beginning on the date of the enactment of this Act, the study
required under this subtitle is completed and a report
describing the findings and recommendations as a result of the
study is submitted to the Congress; and
(2) before submitting the report under this subsection to the
Congress, the report is submitted to the Secretary and national
organizations for public housing agencies at such time to
provide the Secretary and such agencies an opportunity to
review the report and provide written comments on the report,
which shall be included together with the report upon
submission to the Congress under paragraph (1).
SEC. 507. FUNDING.
Of any amounts made available under title V of the Housing and Urban
Development Act of 1970 for policy development and research for fiscal
year 1998, $500,000 shall be available to carry out this subtitle.
SEC. 508. EFFECTIVE DATE.
This subtitle shall take effect on the date of the enactment of this
Act.
Subtitle B--Housing Evaluation and Accreditation Board
SEC. 521. ESTABLISHMENT.
(a) In General.--There is established an independent agency in the
executive branch of the Government to be known as the Housing
Foundation and Accreditation Board (in this title referred to as the
``Board'').
(b) Requirement for Congressional Review of Study.--Notwithstanding
any other provision of this Act, sections 523, 524, and 525 shall not
take effect and the Board shall not have any authority to take any
action under such sections (or otherwise) unless there is enacted a law
specifically providing for the repeal of this subsection. This
subsection may not be construed to prevent the appointment of the Board
under section 522.
(c) Effective Date.--This section shall take effect on the date of
the enactment of this Act.
SEC. 522. MEMBERSHIP.
(a) In General.--The Board shall be composed of 12 members appointed
by the President not later than 180 days after the date of the final
report regarding the study required under subtitle A is submitted to
the Congress pursuant to section 506(b), as follows:
(1) 4 members shall be appointed from among 10 individuals
recommended by the Secretary of Housing and Urban Development.
(2) 4 members shall be appointed from among 10 individuals
recommended by the Chairman and Ranking Minority Member of the
Committee on Banking, Housing, and Urban Affairs of the Senate.
(3) 4 members appointed from among 10 individuals recommended
by the Chairman and Ranking Minority Member of the Committee on
Banking and Financial Services of the House of Representatives.
(b) Qualifications.--
(1) Required representation.--The Board shall at all times
have the following members:
(A) 2 members who are residents of public housing or
dwelling units assisted under title III of this Act or
the provisions of section 8 of the United States
Housing Act of 1937 (as in effect before the effective
date of the repeal under section 601(b) of this Act).
(B) At least 2, but not more than 4 members who are
executive directors of public housing agencies.
(C) 1 member who is a member of the Institute of Real
Estate Managers.
(D) 1 member who is the owner of a multifamily
housing project assisted under a program administered
by the Secretary of Housing and Urban Development.
(2) Required experience.--The Board shall at all times have
as members individuals with the following experience:
(A) At least 1 individual who has extensive
experience in the residential real estate finance
business.
(B) At least 1 individual who has extensive
experience in operating a nonprofit organization that
provides affordable housing.
(C) At least 1 individual who has extensive
experience in construction of multifamily housing.
(D) At least 1 individual who has extensive
experience in the management of a community development
corporation.
(E) At least 1 individual who has extensive
experience in auditing participants in government
programs.
A single member of the board with the appropriate experience
may satisfy the requirements of more than 1 subparagraph of
this paragraph. A single member of the board with the
appropriate qualifications and experience may satisfy the
requirements of a subparagraph of paragraph (1) and a
subparagraph of this paragraph.
(c) Political Affiliation.--Not more than 6 members of the Board may
be of the same political party.
(d) Terms.--
(1) In general.--Each member of the Board shall be appointed
for a term of 4 years, except as provided in paragraphs (2) and
(3).
(2) Terms of initial appointees.--As designated by the
President at the time of appointment, of the members first
appointed--
(A) 3 shall be appointed for terms of 1 year;
(B) 3 shall be appointed for terms of 2 years;
(C) 3 shall be appointed for terms of 3 years; and
(D) 3 shall be appointed for terms of 4 years.
(3) Vacancies.--Any member appointed to fill a vacancy
occurring before the expiration of the term for which the
member's predecessor was appointed shall be appointed only for
the remainder of that term. A member may serve after the
expiration of that member's term until a successor has taken
office. A vacancy in the Board shall be filled in the manner in
which the original appointment was made.
(e) Chairperson.--The Board shall elect a chairperson from among
members of the Board.
(f) Quorum.--A majority of the members of the Board shall constitute
a quorum for the transaction of business.
(g) Voting.--Each member of the Board shall be entitled to 1 vote,
which shall be equal to the vote of every other member of the Board.
(h) Prohibition on Additional Pay.--Members of the Board shall serve
without compensation, but shall be reimbursed for travel, subsistence,
and other necessary expenses incurred in the performance of their
duties as members of the Board.
SEC. 523. FUNCTIONS.
The purpose of this subtitle is to establish the Board as a
nonpolitical entity to carry out, not later than the expiration of the
12-month period beginning upon the appointment under section 522 of all
of the initial members of the Board (or such other date as may be
provided by law), the following functions:
(1) Establishment of performance benchmarks.--The Board shall
establish standards and guidelines for use by the Board in
measuring the performance and efficiency of public housing
agencies and other owners and providers of federally assisted
housing in carrying out operational and financial functions.
The standards and guidelines shall be designed to replace the
public housing management assessment program under section 6(j)
of the United States Housing Act of 1937 (as in effect before
the enactment of this Act) and improve the evaluation of the
performance of housing providers relative to such program. In
establishing such standards and guidelines, the Board shall
consult with the Secretary, the Inspector General of the
Department of Housing and Urban Development, and such other
persons and entities as the Board considers appropriate.
(2) Establishment of accreditation procedure and
accreditation.--The Board shall--
(A) establish a procedure for the Board to accredit
public housing agencies to receive block grants under
title II for the operation, maintenance, and production
of public housing and amounts for housing assistance
under title III, based on the performance of agencies,
as measured by the performance benchmarks established
under paragraph (1) and any audits and reviews of
agencies; and
(B) commence the review and accreditation of public
housing agencies under the procedures established under
subparagraph (A).
In carrying out the functions under this section, the Board shall take
into consideration the findings and recommendations contained in the
report issued under section 506(b).
SEC. 524. POWERS.
(a) Hearings.--The Board may, for the purpose of carrying out this
subtitle, hold such hearings and sit and act at such times and places
as the Board determines appropriate.
(b) Rules and Regulations.--The Board may adopt such rules and
regulations as may be necessary to establish its procedures and to
govern the manner of its operations, organization, and personnel.
(c) Assistance From Federal Agencies.--
(1) Information.--The Board may secure directly from any
department or agency of the Federal Government such information
as the Board may require for carrying out its functions,
including public housing agency plans submitted to the
Secretary by public housing agencies under title I. Upon
request of the Board, any such department or agency shall
furnish such information.
(2) General services administration.--The Administrator of
General Services shall provide to the Board, on a reimbursable
basis, such administrative support services as the Board may
request.
(3) Department of housing and urban development.--Upon the
request of the chairperson of the Board, the Secretary of
Housing and Urban Development shall, to the extent possible and
subject to the discretion of the Secretary, detail any of the
personnel of the Department of Housing and Urban Development,
on a nonreimbursable basis, to assist the Board in carrying out
its functions under this subtitle.
(4) HUD inspector general.--The Inspector General of the
Department of Housing and Urban Development shall serve the
Board as a principal adviser with respect to all aspects of
audits of public housing agencies. The Inspector General may
advise the Board with respect to other activities and functions
of the Board.
(d) Mails.--The Board may use the United States mails in the same
manner and under the same conditions as other Federal agencies.
(e) Contracting.--The Board may, to such extent and in such amounts
as are provided in appropriation Acts, enter into contracts with
private firms, institutions, and individuals for the purpose of
conducting evaluations of public housing agencies, audits of public
housing agencies, and research and surveys necessary to enable the
Board to discharge its functions under this subtitle.
(f) Staff.--
(1) Executive director.--The Board shall appoint an executive
director of the Board, who shall be compensated at a rate fixed
by the Board, but which shall not exceed the rate established
for level V of the Executive Schedule under title 5, United
States Code.
(2) Other personnel.--In addition to the executive director,
the Board may appoint and fix the compensation of such
personnel as the Board considers necessary, in accordance with
the provisions of title 5, United States Code, governing
appointments to the competitive service, and the provisions of
chapter 51 and subchapter III of chapter 53 of such title,
relating to classification and General Schedule pay rates.
(g) Access to Documents.--The Board shall have access for the
purposes of carrying out its functions under this subtitle to any
books, documents, papers, and records of a public housing agency to
which the Secretary has access under this Act.
SEC. 525. FEES.
(a) Accreditation Fees.--The Board may establish and charge
reasonable fees for the accreditation of public housing agencies as the
Board considers necessary to cover the costs of the operations of the
Board relating to its functions under section 523.
(b) Fund.--Any fees collected under this section shall be deposited
in an operations fund for the Board, which is hereby established in the
Treasury of the United States. Amounts in such fund shall be available,
to the extent provided in appropriation Acts, for the expenses of the
Board in carrying out its functions under this subtitle.
SEC. 526. GAO AUDIT.
The activities and transactions of the Board shall be subject to
audit by the Comptroller General of the United States under such rules
and regulations as may be prescribed by the Comptroller General. The
representatives of the General Accounting Office shall have access for
the purpose of audit and examination to any books, documents, papers,
and records of the Board that are necessary to facilitate an audit.
Subtitle C--Interim Applicability of Public Housing Management
Assessment Program
SEC. 531. INTERIM APPLICABILITY.
This subtitle shall be effective only during the period that begins
on the effective date of this Act and ends upon the date of the
effectiveness of the standards and procedures required under section
523.
SEC. 532. MANAGEMENT ASSESSMENT INDICATORS.
(a) Establishment.--The Secretary shall develop and publish in the
Federal Register indicators to assess the management performance of
public housing agencies and other entities managing public housing
(including resident management corporations, independent managers
pursuant to section 236, and management entities pursuant to subtitle
D). The indicators shall be established by rule under section 553 of
title 5, United States Code. Such indicators shall enable the Secretary
to evaluate the performance of public housing agencies and such other
managers of public housing in all major areas of management operations.
(b) Content.--The management assessment indicators shall include the
following indicators:
(1) The number and percentage of vacancies within an agency's
or manager's inventory, including the progress that an agency
or manager has made within the previous 3 years to reduce such
vacancies.
(2) The amount and percentage of funds obligated to the
public housing agency or manager from the capital fund or under
section 14 of the United States Housing Act of 1937 (as in
effect before the effective date of the repeal under section
601(b) of this Act), which remain unexpended after 3 years.
(3) The percentage of rents uncollected.
(4) The energy consumption (with appropriate adjustments to
reflect different regions and unit sizes).
(5) The average period of time that an agency or manager
requires to repair and turn-around vacant dwelling units.
(6) The proportion of maintenance work orders outstanding,
including any progress that an agency or manager has made
during the preceding 3 years to reduce the period of time
required to complete maintenance work orders.
(7) The percentage of dwelling units that an agency or
manager fails to inspect to ascertain maintenance or
modernization needs within such period of time as the Secretary
deems appropriate (with appropriate adjustments, if any, for
large and small agencies or managers).
(8) The extent to which the rent policies of any public
housing agency establishing rental amounts in accordance with
section 225(b) comply with the requirement under section
225(c).
(9) Whether the agency is providing acceptable basic housing
conditions, as determined by the Secretary.
(10) Any other factors as the Secretary deems appropriate.
(c) Considerations in Evaluation.--The Secretary shall--
(1) administer the system of evaluating public housing
agencies and managers flexibly to ensure that agencies and
managers are not penalized as result of circumstances beyond
their control;
(2) reflect in the weights assigned to the various management
assessment indicators the differences in the difficulty of
managing individual developments that result from their
physical condition and their neighborhood environment; and
(3) determine a public housing agency's or manager's status
as ``troubled with respect to modernization'' under section
533(b) based upon factors solely related to its ability to
carry out modernization activities.
SEC. 533. DESIGNATION OF PHA'S.
(a) Troubled PHA's.--The Secretary shall, under the rulemaking
procedures under section 553 of title 5, United States Code, establish
procedures for designating troubled public housing agencies and
managers, which procedures shall include identification of serious and
substantial failure to perform as measured by (1) the performance
indicators specified under section 532 and such other factors as the
Secretary may deem to be appropriate; or (2) such other evaluation
system as is determined by the Secretary to assess the condition of the
public housing agency or other entity managing public housing, which
system may be in addition to or in lieu of the performance indicators
established under section 532. Such procedures shall provide that an
agency that does not provide acceptable basic housing conditions shall
be designated a troubled public housing agency.
(b) Agencies Troubled With Respect to Capital Activities.--The
Secretary shall designate, by rule under section 553 of title 5, United
States Code, agencies and managers that are troubled with respect to
capital activities.
(c) Agencies at Risk of Becoming Troubled.--The Secretary shall
designate, by rule under section 553 of title 5, United States Code,
agencies and managers that are at risk of becoming troubled.
(d) Exemplary Agencies.--The Secretary may also, in consultation with
national organizations representing public housing agencies and
managers and public officials (as the Secretary determines
appropriate), identify and commend public housing agencies and managers
that meet the performance standards established under section 532 in an
exemplary manner.
(e) Appeal of Designation.--The Secretary shall establish procedures
for public housing agencies and managers to appeal designation as a
troubled agency or manager (including designation as a troubled agency
or manager for purposes of capital activities), to petition for removal
of such designation, and to appeal any refusal to remove such
designation.
SEC. 534. ON-SITE INSPECTION OF TROUBLED PHA'S.
(a) In General.--Upon designating a public housing agency or manager
as troubled pursuant to section 533 and determining that an assessment
under this section will not duplicate any other review previously
conducted or required to be conducted of the agency or manager, the
Secretary shall provide for an on-site, independent assessment of the
management of the agency or manager.
(b) Content.--To the extent the Secretary deems appropriate (taking
into consideration an agency's or manager's performance under the
indicators specified under section 532, the assessment team shall also
consider issues relating to the agency's or manager's resident
population and physical inventory, including the extent to which--
(1) the public housing agency plan for the agency or manager
adequately and appropriately addresses the rehabilitation needs
of the public housing inventory;
(2) residents of the agency or manager are involved in and
informed of significant management decisions; and
(3) any developments in the agency's or manager's inventory
are severely distressed (as such term is defined under section
262.
(c) Independent Assessment Team.--An independent assessment under
this section shall be carried out by a team of knowledgeable
individuals selected by the Secretary (referred to in this title as the
``assessment team'') with expertise in public housing and real estate
management. In conducting an assessment, the assessment team shall
consult with the residents and with public and private entities in the
jurisdiction in which the public housing is located. The assessment
team shall provide to the Secretary and the public housing agency or
manager a written report, which shall contain, at a minimum,
recommendations for such management improvements as are necessary to
eliminate or substantially remedy existing deficiencies.
SEC. 535. ADMINISTRATION.
(a) PHA's.--The Secretary shall carry out this subtitle with respect
to public housing agencies substantially in the same manner as the
public housing management assessment system under section 6(j) of the
United States Housing Act of 1937 (as in effect immediately before the
effective date of the repeal under section 601(b) of this Act) was
required to be carried out with respect to public housing agencies. The
Secretary may comply with the requirements under this subtitle by using
any regulations issued to carry out such system and issuing any
additional regulations necessary to make such system comply with the
requirements under this subtitle.
(b) Other Managers.--The Secretary shall establish specific standards
and procedures for carrying out this subtitle with respect to managers
of public housing that are not public housing agencies. Such standards
and procedures shall take in consideration special circumstances
relating to entities hired, directed, or appointed to manage public
housing.
Subtitle D--Accountability and Oversight Standards and Procedures
SEC. 541. AUDITS.
(a) By Secretary and Comptroller General.--Each block grant contract
under section 201 and each contract for housing assistance amounts
under section 302 shall provide that the Secretary, the Inspector
General of the Department of Housing and Urban Development, andthe
Comptroller General of the United States, or any of their duly
authorized representatives, shall, for the purpose of audit and
examination, have access to any books, documents, papers, and records
of the public housing agency (or other entity) entering into such
contract that are pertinent to this Act and to its operations with
respect to financial assistance under the this Act.
(b) By PHA.--
(1) Requirement.--Each public housing agency that owns or
operates 250 or more public housing dwelling units and receives
assistance under this Act shall have an audit made in
accordance with chapter 75 of title 31, United States Code. The
Secretary, the Inspector General of the Department of Housing
and Urban Development, and the Comptroller General of the
United States shall have access to all books, documents,
papers, or other records that are pertinent to the activities
carried out under this Act in order to make audit examinations,
excerpts, and transcripts.
(2) Withholding of amounts.--The Secretary may, in the sole
discretion of the Secretary, arrange for, and pay the costs of,
an audit required under paragraph (1). In such circumstances,
the Secretary may withhold, from assistance otherwise payable
to the agency under this Act, amounts sufficient to pay for the
reasonable costs of conducting an acceptable audit, including,
when appropriate, the reasonable costs of accounting services
necessary to place the agency's books and records in auditable
condition.
SEC. 542. PERFORMANCE AGREEMENTS FOR AUTHORITIES AT RISK OF BECOMING
TROUBLED.
(a) In General.--Upon designation of a public housing agency as at
risk of becoming troubled under section 533(c), the Secretary shall
seek to enter into an agreement with the agency providing for
improvement of the elements of the agency that have been identified. An
agreement under this section shall contain such terms and conditions as
the Secretary determines are appropriate for addressing the elements
identified, which may include an on-site, independent assessment of the
management of the agency.
(b) Powers of Secretary.--If the Secretary determines that such
action is necessary to prevent the public housing agency from becoming
a troubled agency, the Secretary may--
(1) solicit competitive proposals from other public housing
agencies and private housing management agents (which may be
selected by existing tenants through administrative procedures
established by the Secretary), for any case in which such
agents may be needed for managing all, or part, of the housing
or functions administered by the agency; or
(2) solicit competitive proposals from other public housing
agencies and private entities with experience in construction
management, for any case in which such authorities or firms may
be needed to oversee implementation of assistance made
available for capital improvement for public housing of the
agency.
SEC. 543. PERFORMANCE AGREEMENTS AND CDBG SANCTIONS FOR TROUBLED PHA'S.
(a) In General.--Upon designation of a public housing agency as a
troubled agency under section 533(a) and after reviewing the report
submitted pursuant to section 534(c) and consulting with the assessment
team for the agency under section 534, the Secretary shall seek to
enter into an agreement with the agency providing for improving the
management performance of the agency.
(b) Contents.--An agreement under this section between the Secretary
and a public housing agency shall set forth--
(1) targets for improving performance, as measured by the
guidelines and standards established under section 532 and
other requirements within a specified period of time, which
shall include targets to be met upon the expiration of the 12-
month period beginning upon entering into the agreement;
(2) strategies for meeting such targets;
(3) sanctions for failure to implement such strategies; and
(4) to the extent the Secretary deems appropriate, a plan for
enhancing resident involvement in the management of the public
housing agency.
(c) Local Assistance in Implementation.--The Secretary and the public
housing agency shall, to the maximum extent practicable, seek the
assistance of local public and private entities in carrying out an
agreement under this section.
(d) Default Under Performance Agreement.--Upon the expiration of the
12-month period beginning upon entering into an agreement under this
section with a public housing agency, the Secretary shall review the
performance of the agency in relation to the performance targets and
strategies under the agreement. If the Secretary determines that the
agency has failed to comply with the performance targets established
for such period, the Secretary shall take the action authorized under
subsection (b)(2) or (b)(5) of section 545.
(e) CDBG Sanction Against Local Government Contributing to Troubled
Status of PHA.--If the Secretary determines that the actions or
inaction of any unit of general local government within which any
portion of the jurisdiction of a public housing agency is located has
substantially contributed to the conditions resulting in the agency
being designated under section 533(a) as a troubled agency, the
Secretary may redirect or withhold, from such unit of general local
government any amounts allocated for such unit under section 106 of the
Housing and Community Development Act of 1974.
SEC. 544. OPTION TO DEMAND CONVEYANCE OF TITLE TO OR POSSESSION OF
PUBLIC HOUSING.
(a) Authority for Conveyance.--A contract under section 201 for block
grants under title II (including contracts which amend or supersede
contracts previously made (including contracts for contributions)) may
provide that upon the occurrence of a substantial default with respect
to the covenants or conditions to which the public housing agency is
subject (as such substantial default shall be defined in such
contract), the public housing agency shall be obligated, at the option
of the Secretary, to--
(1) convey title in any case where, in the determination of
the Secretary (which determination shall be final and
conclusive), such conveyance of title is necessary to achieve
the purposes of this Act; or
(2) deliver to the Secretary possession of the development,
as then constituted, to which such contract relates.
(b) Obligation to Reconvey.--Any block grant contract under title II
containing the provisions authorized in subsection (a) shall also
provide that the Secretary shall be obligated to reconvey or redeliver
possession of the development, as constituted at the time of
reconveyance or redelivery, to such public housing agency or to its
successor (if such public housing agency or a successor exists) upon
such terms as shall be prescribed in such contract, and as soon as
practicable after--
(1) the Secretary is satisfied that all defaults with respect
to the development have been cured, and that the development
will, in order to fulfill the purposes of this Act, thereafter
be operated in accordance with the terms of such contract; or
(2) the termination of the obligation to make annual block
grants to the agency, unless there are any obligations or
covenants of the agency to the Secretary which are then in
default.
Any prior conveyances and reconveyances or deliveries and redeliveries
of possession shall not exhaust the right to require a conveyance or
delivery of possession of the development to the Secretary pursuant to
subsection (a) upon the subsequent occurrence of a substantial default.
(c) Continued Grants for Repayment of Bonds and Notes Under 1937
Act.--If--
(1) a contract for block grants under title II for an agency
includes provisions that expressly state that the provisions
are included pursuant to this subsection, and
(2) the portion of the block grant payable for debt service
requirements pursuant to the contract has been pledged by the
public housing agency as security for the payment of the
principal and interest on any of its obligations, then--
(A) the Secretary shall (notwithstanding any other
provisions of this Act), continue to make the block
grant payments for the agency so long as any of such
obligations remain outstanding; and
(B) the Secretary may covenant in such a contract
that in any event such block grant amounts shall in
each year be at least equal to an amount which,
together with such income or other funds as are
actually available from the development for the purpose
at the time such block grant payments are made, will
suffice for the payment of all installments of
principal and interest on the obligations for which the
amounts provided for in the contract shall have been
pledged as security that fall due within the next
succeeding 12 months.
In no case shall such block grant amounts be in excess of the maximum
sum specified in the contract involved, nor for longer than the
remainder of the maximum period fixed by the contract.
SEC. 545. REMOVAL OF INEFFECTIVE PHA'S.
(a) Conditions of Removal.--The actions specified in subsection (b)
may be taken only upon--
(1) the occurrence of events or conditions that constitute a
substantial default by a public housing agency with respect to
(A) the covenants or conditions to which the public housing
agency is subject, or (B) an agreement entered into under
section 543; or
(2) submission to the Secretary of a petition by the
residents of the public housing owned or operated by a public
housing agency that is designated as troubled pursuant to
section 533(a).
(b) Removal Actions.--Notwithstanding any other provision of law or
of any block grant contract under title II or any grant agreement under
title III, in accordance with subsection (a), the Secretary may--
(1) solicit competitive proposals from other public housing
agencies and private housing management agents (which, in the
discretion of the Secretary, may be selected by existing public
housing residents through administrative procedures established
by the Secretary) and, if appropriate, provide for such agents
to manage all, or part, of the housing administered by the
public housing agency or all or part of the other functions of
the agency;
(2) take possession of the public housing agency, including
any developments or functions of the agency under any section
of this Act;
(3) solicit competitive proposals from other public housing
agencies and private entities with experience in construction
management and, if appropriate, provide for such authorities or
firms to oversee implementation of assistance made available
for capital improvements for public housing;
(4) require the agency to make other arrangements acceptable
to the Secretary and in the best interests of the public
housing residents and assisted families under title III for
managing all, or part of, the public housing administered by
the agency or the functions of the agency; or
(5) petition for the appointment of a receiver for the public
housing agency to any district court of the United States or to
any court of the State in which any portion of the jurisdiction
of the public housing agency is located, that is authorized to
appoint a receiver for the purposes and having the powers
prescribed in this section.
(c) Emergency Assistance.--The Secretary may make available to
receivers and other entities selected or appointed pursuant to this
section such assistance as is fair and reasonable to remedy the
substantial deterioration of living conditions in individual public
housing developments or other related emergencies that endanger the
health, safety and welfare of public housing residents or assisted
families under title III.
(d) Powers of Secretary.--If the Secretary takes possession of an
agency, or any developments or functions of an agency, pursuant to
subsection (b)(2), the Secretary--
(1) may abrogate contracts that substantially impede
correction of the substantial default or improvement of the
classification, but only after efforts to renegotiate such
contracts have failed and the Secretary has made a written
determination regarding such abrogation, which shall be
available to the public upon request, identify such contracts,
and explain the determination that such contracts may be
abrogated;
(2) may demolish and dispose of assets of the agency in
accordance with section 261;
(3) where determined appropriate by the Secretary, may
require the establishment of one or more new public housing
agencies;
(4) may consolidate the agency into other well-managed public
housing agencies with the consent of such well-managed
authorities;
(5) shall not be subject to any State or local laws relating
to civil service requirements, employee rights, procurement, or
financial or administrative controls that, in the determination
of the Secretary, substantially impede correction of the
substantial default or improvement of the classification, but
only if the Secretary has made a written determination
regarding such inapplicability, which shall be available to the
public upon request, identify such inapplicable laws, and
explain the determination that such laws impede such
correction; and
(6) shall have such additional authority as a district court
of the United States has the authority to confer under like
circumstances upon a receiver to achieve the purposes of the
receivership.
The Secretary may appoint, on a competitive or noncompetitive basis, an
individual or entity as an administrative receiver to assume the
Secretary's responsibility under this paragraph for the administration
of a public housing agency. The Secretary may delegate to the
administrative receiver any or all of the powers of the Secretary under
this subsection. Regardless of any delegation under this subsection, an
administrative receiver may not require the establishment of one or
more new public housing agencies pursuant to paragraph (3) unless the
Secretary first approves such establishment. For purposes of this
subsection, the term ``public housing agency'' includes any
developments or functions of a public housing agency under any section
of this title.
(e) Receivership.--
(1) Required appointment.--In any proceeding under subsection
(b)(5), upon a determination that a substantial default has
occurred, and without regard to the availability of alternative
remedies, the court shall appoint a receiver to conduct the
affairs of the public housing agency in a manner consistent
with this Act and in accordance with such further terms and
conditions as the court may provide. The receiver appointed may
be another public housing agency, a private management
corporation, the Secretary, or any other appropriate entity.
The court shall have power to grant appropriate temporary or
preliminary relief pending final disposition of the petition by
the Secretary.
(2) Powers of receiver.--If a receiver is appointed for a
public housing agency pursuant to subsection (b)(5), in
addition to the powers accorded by the court appointing the
receiver, the receiver--
(A) may abrogate contracts that substantially impede
correction of the substantial default or improvement of
the classification, but only after bona fide efforts to
renegotiate such contracts have failed and the receiver
has made a written determination regarding such
abrogation, which shall be available to the public upon
request, identify such contracts, and explain the
determination that such contracts may be abrogated;
(B) may demolish and dispose of assets of the agency
in accordance with section 261;
(C) where determined appropriate by the Secretary,
may require the establishment of one or more new public
housing agencies, to the extent permitted by State and
local law; and
(D) except as provided in subparagraph (C), shall not
be subject to any State or local laws relating to civil
service requirements, employee rights, procurement, or
financial or administrative controls that, in the
determination of the receiver, substantially impede
correction of the substantial default or improvement of
the classification, but only if the receiver has made a
written determination regarding such inapplicability,
which shall be available to the public upon request,
identify such inapplicable laws, and explain the
determination that such laws impede such correction.
For purposes of this paragraph, the term ``public housing
agency'' includes any developments or functions of a public
housing agency under any section of this title.
(3) Termination.--The appointment of a receiver pursuant to
this subsection may be terminated, upon the petition of any
party, when the court determines that all defaults have been
cured or the public housing agency will be able to make the
same amount of progress in correcting the management of the
housing as the receiver.
(f) Liability.--If the Secretary takes possession of an agency
pursuant to subsection (b)(2) or a receiver is appointed pursuant to
subsection (b)(5) for a public housing agency, the Secretary or the
receiver shall be deemed to be acting in the capacity of the public
housing agency (and not in the official capacity as Secretary or other
official) and any liability incurred shall be a liability of the public
housing agency.
(g) Effectiveness.--The provisions of this section shall apply with
respect to actions taken before, on, or after the effective date of
this Act and shall apply to any receivers appointed for a public
housing agency before the effective date of this Act.
SEC. 546. MANDATORY TAKEOVER OF CHRONICALLY TROUBLED PHA'S.
(a) Removal of Agency.--Notwithstanding any other provision of this
Act, not later than the expiration of the 180-day period beginning on
the effective date of this Act, the Secretary shall take one of the
following actions with respect to each chronically troubled public
housing agency:
(1) Contracting for management.--Solicit competitive
proposals for the management of the agency pursuant to section
545(b)(1) and replace the management of the agency pursuant to
selection of such a proposal.
(2) Takeover.--Take possession of the agency pursuant to
section 545(b)(2) of such Act.
(3) Petition for receiver.--Petition for the appointment of a
receiver for the agency pursuant to section 545(b)(5).
(b) Definition.--For purposes of this section, the term ``chronically
troubled public housing agency'' means a public housing agency that, as
of the effective date of this Act, is designated under section 6(j)(2)
of the United States Housing Act of 1937 (as in effect immediately
before the effective date of the repeal under section 601(b) of this
Act) as a troubled public housing agency and has been so designated
continuously for the 3-year period ending upon the effective date of
this Act; except that such term does not include any agency that owns
or operates less than 1250 public housing dwelling units and that the
Secretary determines can, with a reasonable amount of effort, make such
improvements or remedies as may be necessary to remove its designation
as troubled within 12 months.
SEC. 547. TREATMENT OF TROUBLED PHA'S.
(a) Effect of Troubled Status on CHAS.--The comprehensive housing
affordability strategy (or any consolidated plan incorporating such
strategy) for the State or unit of general local government in which
any troubled public housing agency is located shall not be considered
to comply with the requirements under section 105 of the Cranston-
Gonzalez National Affordable Housing Act unless such plan includes a
description of the manner in which the State or unit will assist such
troubled agency in improving its operations to remove such designation.
(b) Definition.--For purposes of this section, the term ``troubled
public housing agency'' means a public housing agency that--
(1) upon the effective date of this Act, is designated under
section 6(j)(2) of the United States Housing Act of 1937 (as in
effect immediately before theeffective date of the repeal under
section 601(b) of this Act) as a troubled public housing agency; and
(2) is not a chronically troubled public housing agency, as
such term is defined in section 546(b) of this Act.
SEC. 548. MAINTENANCE OF RECORDS.
Each public housing agency shall keep such records as may be
reasonably necessary to disclose the amount and the disposition by the
agency of the proceeds of assistance received pursuant to this Act and
to ensure compliance with the requirements of this Act.
SEC. 549. ANNUAL REPORTS REGARDING TROUBLED PHA'S.
The Secretary shall submit a report to the Congress annually, as a
part of the report of the Secretary under section 8 of the Department
of Housing and Urban Development Act, that--
(1) identifies the public housing agencies that are
designated under section 533 as troubled or at-risk of becoming
troubled and the reasons for such designation; and
(2) describes any actions that have been taken in accordance
with sections 542, 543, 544, and 545.
SEC. 550. APPLICABILITY TO RESIDENT MANAGEMENT CORPORATIONS.
The Secretary shall apply the provisions of this subtitle to resident
management corporations in the same manner as applied to public housing
agencies.
SEC. 551. ADVISORY COUNCIL FOR HOUSING AUTHORITY OF NEW ORLEANS.
(a) Establishment.--The Secretary and the Housing Authority of New
Orleans (in this section referred to as the ``Housing Authority'')
shall, pursuant to the cooperative endeavor agreement in effect between
the Secretary and the Housing Authority, establish an advisory council
for the Housing Authority of New Orleans (in this section referred to
as the ``advisory council'') that complies with the requirements of
this section.
(b) Membership.--
(1) In general.--The advisory council shall be appointed by
the Secretary, not later than 90 days after the date of the
enactment of this Act, and shall be composed of the following
members:
(A) The Inspector General of the Department of
Housing and Urban Development (or the Inspector
General's designee).
(B) Not more than 7 other members, who shall be
selected for appointment based on their experience in
successfully reforming troubled public housing agencies
or in providing affordable housing in coordination with
State and local governments, the private sector,
affordable housing residents, or local nonprofit
organizations.
(2) Prohibition on additional pay.--Members of the advisory
council shall serve without compensation, but shall be
reimbursed for travel, subsistence, and other necessary
expenses incurred in the performance of their duties as members
of the Board using amounts from the Headquarters Reserve fund
pursuant to section 111(b)(4).
(c) Functions.--The advisory council shall--
(1) establish standards and guidelines for assessing the
performance of the Housing Authority in carrying out
operational, asset management, and financial functions for
purposes of the reports and finding under subsections (d) and
(e), respectively;
(2) provide advice, expertise, and recommendations to the
Housing Authority regarding the management, operation, repair,
redevelopment, revitalization, demolition, and disposition of
public housing developments of the Housing Authority;
(3) report to the Congress under subsection (d) regarding any
progress of the Housing Authority in improving the performance
of its functions; and
(4) make a final finding to the Congress under subsection (e)
regarding the future of the Housing Authority.
(d) Quarterly Reports.--The advisory council shall report to the
Congress and the Secretary not less than every 3 months regarding the
performance of the Housing Authority and any progress of the authority
in improving its performance and carrying out its functions.
(e) Final Finding.--Upon the expiration of the 18-month period that
begins upon the appointment under subsection (b)(1) of all members of
the advisory council, the council shall make and submit to the Congress
and the Secretary a finding of whether the Housing Authority has
substantially improved its performance, the performance of its
functions, and the overall condition of the Authority such that the
Authority should be allowed to continue to operate as the manager of
the public housing of the Authority. In making the finding under this
subsection, the advisory council shall consider whether the Housing
Authority has made sufficient progress in the demolition and
revitalization of the Desire Homes development, the revitalization of
the St. Thomas Homes development, the appropriate allocation of
operating subsidy amounts, and the appropriate expending of
modernization amounts.
(f) Receivership.--If the advisory council finds under subsection (e)
that the Housing Authority has not substantially improved its
performance such that the Authority should be allowed to continue to
operate as the manager of the public housing of the Authority, the
Secretary shall (notwithstanding section 545(a)) petition under section
545(b) for the appointment of a receiver for the Housing Authority,
which receivership shall be subject to the provisions of section 545.
(g) Exemption.--The provisions of section 546 shall not apply to the
Housing Authority.
TITLE VI--REPEALS AND RELATED AMENDMENTS
Subtitle A--Repeals, Effective Date, and Savings Provisions
SEC. 601. EFFECTIVE DATE AND REPEAL OF UNITED STATES HOUSING ACT OF
1937.
(a) Effective Date.--
(1) In general.--This Act and the amendments made by this Act
shall take effect upon the expiration of the 6-month period
beginning on the date of the enactment of this Act, except as
otherwise provided in this section.
(2) Exception.--If the Secretary determines that action under
this paragraph is necessary for program administration or to
avoid hardship, the Secretary may, by notice in accordance with
subsection (d), delay the effective date of any provision of
this Act until a date not later than October 1, 1998.
(3) Specific effective dates.--Any provision of this Act that
specifically provides for the effective date of such provision
shall take effect in accordance with the terms of the
provision.
(b) Repeal of United States Housing Act of 1937.--Effective upon the
effective date under subsection (a)(1), the United States Housing Act
of 1937 (42 U.S.C. 1437 et seq.) is repealed, subject to the conditions
under subsection (c). Subsection (a)(2) shall not apply to this
subsection.
(c) Savings Provisions.--
(1) Obligations under 1937 act.--Any obligation of the
Secretary made under authority of the United States Housing Act
of 1937 shall continue to be governed by the provisions of such
Act, except that--
(A) notwithstanding the repeal of such Act, the
Secretary may make a new obligation under such Act upon
finding that such obligation is required--
(i) to protect the financial interests of the
United States or the Department of Housing and
Urban Development; or
(ii) for the amendment, extension, or renewal
of existing obligations; and
(B) notwithstanding the repeal of such Act, the
Secretary may, in accordance with subsection (d), issue
regulations and other guidance and directives as if
such Act were in effect if the Secretary finds that
such action is necessary to facilitate the
administration of obligations under such Act.
(2) Transition of funding.--Amounts appropriated under the
United States Housing Act of 1937 shall, upon repeal of such
Act, remain available for obligation under such Act in
accordance with the terms under which amounts were made
available.
(3) Cross references.--The provisions of the United States
Housing Act of 1937 shall remain in effect for purposes of the
validity of any reference to a provision of such Act in any
statute (other than such Act) until such reference is modified
by law or repealed.
(d) Publication and Effective Date of Notices of Delay.--
(1) Submission to congress.--The Secretary shall submit to
the Committee on Banking and Financial Services of the House of
Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate a copy of anyproposed notice under
subsection (a)(2) or any proposed regulation, guidance, or directive
under subsection (c)(1)(B).
(2) Opportunity to review.--Such a regulation, notice,
guidance, or directive may not be published for comment or for
final effectiveness before or during the 15-calendar day period
beginning on the day after the date on which such regulation,
notice, guidance, or directive was submitted to the Congress.
(3) Effective date.--No regulation, notice, guideline, or
directive may become effective until after the expiration of
the 30-calendar day period beginning on the day after the day
on which such rule or regulation is published as final.
(4) Waiver.--The provisions of paragraphs (2) and (3) may be
waived upon the written request of the Secretary, if agreed to
by the Chairmen and Ranking Minority Members of both
Committees.
(e) Modifications.--Notwithstanding any provision of this Act or any
annual contributions contract or other agreement entered into by the
Secretary and a public housing agency pursuant to the provisions of the
United States Housing Act of 1937 (as in effect before the effective
date of the repeal under section 601(b) of this Act), the Secretary and
the agency may by mutual consent amend, supersede, or modify any such
agreement as appropriate to provide for assistance under this Act,
except that the Secretary and the agency may not consent to any such
amendment, supersession, or modification that substantially alters any
outstanding obligations requiring continued maintenance of the low-
income character of any public housing development and any such
amendment, supersession, or modification shall not be given effect.
(f) Section 8 Project-Based Assistance.--
(1) In general.--The provisions of the United States Housing
Act of 1937 (42 U.S.C. 1437 et seq.) shall remain in effect
after the effectiveness of the repeal under subsection (b) with
respect to all section 8 project-based assistance, pursuant to
existing and future contracts, except as otherwise provided by
this section.
(2) Tenant selection preferences.--An owner of housing
assisted with section 8 project-based assistance shall give
preference, in the selection of tenants for units of such
projects that become available, according to any system of
local preferences established pursuant to section 223 by the
public housing agency having jurisdiction for the area in which
such projects are located.
(3) 1-year notification.--Paragraphs (9) and (10) of section
8(c) of the United States Housing Act of 1937 (42 U.S.C.
1437f(c)) shall not be applicable to section 8 project-based
assistance.
(4) Lease terms.--Leases for dwelling units assisted with
section 8 project-based assistance shall comply with the
provisions of paragraphs (1) and (3) of section 324 of this Act
and shall not be subject to the provisions of 8(d)(1)(B) of the
United States Housing Act of 1937.
(5) Termination of tenancy.--Any termination of tenancy of a
resident of a dwelling unit assisted with section 8 project-
based assistance shall comply with the provisions of section
324(2) and section 325 of this Act and shall not be subject to
the provisions of section 8(d)(1)(B) of the United States
Housing Act of 1937.
(6) Definition.--For purposes of this subsection, the term
``section 8 project-based assistance'' means assistance under
any of the following programs:
(A) The new construction or substantial
rehabilitation program under section 8(b)(2) of the
United States Housing Act of 1937 (as in effect before
October 1, 1983).
(B) The property disposition program under section
8(b) of the United States Housing Act of 1937 (as in
effect before the effective date of the repeal under
section 601(b) of this Act).
(C) The loan management set-aside program under
subsections (b) and (v) of section 8 of such Act.
(D) The project-based certificate program under
section 8(d)(2) of such Act.
(E) The moderate rehabilitation program under section
8(e)(2) of the United States Housing Act of 1937 (as in
effect before October 1, 1991).
(F) The low-income housing preservation program under
Low-Income Housing Preservation and Resident
Homeownership Act of 1990 or the provisions of the
Emergency Low Income Housing Preservation Act of 1987
(as in effect before November 28, 1990).
(G) Section 8 of the United States Housing Act of
1937 (as in effect before the effective date of the
repeal under section 601(b) of this Act), following
conversion from assistance under section 101 of the
Housing and Urban Development Act of 1965 or section
236(f)(2) of the National Housing Act.
(g) Effective Date.--This section shall take effect on the date of
the enactment of this Act.
SEC. 602. OTHER REPEALS.
(a) In General.--The following provisions of law are hereby repealed:
(1) Assisted housing allocation.--Section 213 of the Housing
and Community Development Act of 1974 (42 U.S.C. 1439).
(2) Public housing rent waivers for police.--Section 519 of
the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 1437a-1).
(3) Treatment of certificate and voucher holders.--Subsection
(c) of section 183 of the Housing and Community Development Act
of 1987 (42 U.S.C. 1437f note).
(4) Excessive rent burden data.--Subsection (b) of section
550 of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 1437f note).
(5) Moving to opportunity for fair housing.--Section 152 of
the Housing and Community Development Act of 1992 (42 U.S.C.
1437f note).
(6) Report regarding fair housing objectives.--Section 153 of
the Housing and Community Development Act of 1992 (42 U.S.C.
1437f note).
(7) Special projects for elderly or handicapped families.--
Section 209 of the Housing and Community Development Act of
1974 (42 U.S.C. 1438).
(8) Access to pha books.--Section 816 of the Housing Act of
1954 (42 U.S.C. 1435).
(9) Miscellaneous provisions.--Subsections (b)(1) and (d) of
section 326 of the Housing and Community Development Amendments
of 1981 (Public Law 97-35, 95 Stat. 406; 42 U.S.C. 1437f note).
(10) Payment for development managers.--Section 329A of the
Housing and Community Development Amendments of 1981 (42 U.S.C.
1437j-1).
(11) Procurement of insurance by pha's.--In the item relating
to ``administrative provisions'' under the heading ``Management
and Administration'' in title II of the Departments of Veterans
Affairs and Housing and Urban Development, and Independent
Agencies Appropriations Act, 1991, the penultimate undesignated
paragraph of such item (Public Law 101-507; 104 Stat. 1369).
(12) Public housing childhood development.--Section 222 of
the Housing and Urban-Rural Recovery Act of 1983 (12 U.S.C.
1701z-6 note).
(13) Indian housing childhood development.--Section 518 of
the Cranston-Gonzalez National Affordable Housing Act (12
U.S.C. 1701z-6 note).
(14) Public housing comprehensive transition demonstration.--
Section 126 of the Housing and Community Development Act of
1987 (42 U.S.C. 1437f note).
(15) Public housing one-stop perinatal services
demonstration.--Section 521 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 1437t note).
(16) Public housing mincs demonstration.--Section 522 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C.
1437f note).
(17) Public housing energy efficiency demonstration.--Section
523 of the Cranston-Gonzalez National Affordable Housing Act
(42 U.S.C. 1437g note).
(18) Omaha homeownership demonstration.--Section 132 of the
Housing and Community Development Act of 1992 (Public Law 102-
550; 106 Stat. 3712).
(19) Public and assisted housing youth sports programs.--
Section 520 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 11903a).
(20) Frost-leland provisions.--Section 415 of the Department
of Housing and Urban Development--Independent Agencies
Appropriations Act, 1988 (Public Law 100-202; 101 Stat. 1329-
213); except that, notwithstanding any other provision of law,
beginning on the date of enactment of this Act, the public
housing projects described in section 415 of such
appropriations Act (as such section existed immediately before
the date of enactment of this Act) shall be eligible for
demolition--
(A) under section 14 of the United States Housing Act
of 1937 (as such section existed upon the enactment of
this Act); and
(B) under section 9 of the United States Housing Act
of 1937.
(21) Multifamily financing.--The penultimate sentence of
section 302(b)(2) of the National Housing Act (12 U.S.C.
1717(b)(2)) and the penultimate sentence of section 305(a)(2)
of the Emergency Home Finance Act of 1970 (12 U.S.C.
1454(a)(2)).
(22) Conflicts of interest.--Subsection (c) of section 326 of
the Housing and Community Development Amendments of 1981 (42
U.S.C. 1437f note).
(23) Conversion of public housing.--Section 202 of the
Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1996
(42 U.S.C. 1437l note) (enacted as section 101(e) of Omnibus
Consolidated Rescissions and Appropriations Act of 1996 (Public
Law 104-134; 110 Stat. 1321-279)).
(b) Savings Provision.--Except to the extent otherwise provided in
this Act--
(1) the repeals made by subsection (a) shall not affect any
legally binding obligations entered into before the effective
date of this Act; and
(2) any funds or activities subject to a provision of law
repealed by subsection (a) shall continue to be governed by the
provision as in effect immediately before such repeal.
Subtitle B--Other Provisions Relating to Public Housing and Rental
Assistance Programs
SEC. 621. ALLOCATION OF ELDERLY HOUSING AMOUNTS.
Section 202(l) of the Housing Act of 1959 (12 U.S.C. 1701q(l)) is
amended by adding at the end the following new paragraph:
``(4) Consideration in allocating assistance.--Assistance
under this section shall be allocated in a manner that ensures
that the awards of the assistance are made for projects of
sufficient size to accommodate facilities for supportive
services appropriate to the needs of frail elderly
residents.''.
SEC. 622. PET OWNERSHIP.
Section 227 of the Housing and Urban-Rural Recovery Act of 1983 (12
U.S.C. 1701r-1) is amended to read as follows:
``SEC. 227. PET OWNERSHIP IN FEDERALLY ASSISTED RENTAL HOUSING.
``(a) Right of Ownership.--A resident of a dwelling unit in federally
assisted rental housing may own common household pets or have common
household pets present in the dwelling unit of such resident, subject
to the reasonable requirements of the owner of the federally assisted
rental housing and providing that the resident maintains the animals
responsibly and in compliance with applicable local and State public
health, animal control, and anticruelty laws. Such reasonable
requirements may include requiring payment of a nominal fee and pet
deposit by residents owning or having pets present, to cover the
operating costs to the project relating to the presence of pets and to
establish an escrow account for additional such costs not otherwise
covered, respectively. Notwithstanding section 225(d) of the Housing
Opportunity and Responsibility Act of 1997, a public housing agency may
not grant any exemption under such section from payment, in whole or in
part, of any fee or deposit required pursuant to the preceding
sentence.
``(b) Prohibition Against Discrimination.--No owner of federally
assisted rental housing may restrict or discriminate against any person
in connection with admission to, or continued occupancy of, such
housing by reason of the ownership of common household pets by, or the
presence of such pets in the dwelling unit of, such person.
``(c) Definitions.--For purposes of this section, the following
definitions shall apply:
``(1) Federally assisted rental housing.--The term `federally
assisted rental housing' means any multifamily rental housing
project that is--
``(A) public housing (as such term is defined in
section 103 of the Housing Opportunity and
Responsibility Act of 1997);
``(B) assisted with project-based assistance pursuant
to section 601(f) of the Housing Opportunity and
Responsibility Act of 1997 or under section 8 of the
United States Housing Act of 1937 (as in effect before
the effective date of the repeal under section 601(b)
of the Housing Opportunity and Responsibility Act of
1997);
``(C) assisted under section 202 of the Housing Act
of 1959 (as amended by section 801 of the Cranston-
Gonzalez National Affordable Housing Act);
``(D) assisted under section 202 of the Housing Act
of 1959 (as in effect before the enactment of the
Cranston-Gonzalez National Affordable Housing Act);
``(E) assisted under title V of the Housing Act of
1949; or
``(F) insured, assisted, or held by the Secretary or
a State or State agency under section 236 of the
National Housing Act.
``(2) Owner.--The term `owner' means, with respect to
federally assisted rental housing, the entity or private
person, including a cooperative or public housing agency, that
has the legal right to lease or sublease dwelling units in such
housing (including a manager of such housing having such
right).
``(d) Regulations.--This section shall take effect upon the date of
the effectiveness of regulations issued by the Secretary to carry out
this section. Such regulations shall be issued not later than the
expiration of the 1-year period beginning on the date of the enactment
of the Housing Opportunity and Responsibility Act of 1997 and after
notice and opportunity for public comment in accordance with the
procedure under section 553 of title 5, United States Code, applicable
to substantive rules (notwithstanding subsections (a)(2), (b)(B), and
(d)(3) of such section).''.
SEC. 623. REVIEW OF DRUG ELIMINATION PROGRAM CONTRACTS.
(a) Requirement.--The Secretary of Housing and Urban Development
shall investigate all security contracts awarded by grantees under the
Public and Assisted Housing Drug Elimination Act of 1990 (42 U.S.C.
11901 et seq.) that are public housing agencies that own or operate
more than 4,500 public housing dwelling units--
(1) to determine whether the contractors under such contracts
have complied with all laws and regulations regarding
prohibition of discrimination in hiring practices;
(2) to determine whether such contracts were awarded in
accordance with the applicable laws and regulations regarding
the award of such contracts;
(3) to determine how many such contracts were awarded under
emergency contracting procedures;
(4) to evaluate the effectiveness of the contracts; and
(5) to provide a full accounting of all expenses under the
contracts.
(b) Report.--Not later than 180 days after the date of the enactment
of this Act, the Secretary shall complete the investigation required
under subsection (a) and submit a report to the Congress regarding the
findings under the investigation. With respect to each such contract,
the report shall (1) state whether the contract was made and is
operating, or was not made or is not operating, in full compliance with
applicable laws and regulations, and (2) for each contract that the
Secretary determines is in such compliance issue a personal
certification of such compliance by the Secretary of Housing and Urban
Development.
(c) Actions.--For each contract that is described in the report under
subsection (b) as not made or not operating in full compliance with
applicable laws and regulations, the Secretary of Housing and Urban
Development shall promptly take any actions available under law or
regulation that are necessary--
(1) to bring such contract into compliance; or
(2) to terminate the contract.
(d) Effective Date.--This section shall take effect on the date of
the enactment of this Act.
SEC. 624. AMENDMENTS TO PUBLIC AND ASSISTED HOUSING DRUG ELIMINATION
ACT OF 1990.
(a) Short Title, Purposes, and Authority to Make Grants.--Chapter 2
of subtitle C of title V of the Anti-Drug Abuse Act of 1988 (42 U.S.C.
11901 et seq.) is amended by striking the chapter heading and all that
follows through section 5123 and inserting the following:
``CHAPTER 2--COMMUNITY PARTNERSHIPS AGAINST CRIME
``SEC. 5121. SHORT TITLE.
``This chapter may be cited as the `Community Partnerships Against
Crime Act of 1997'.
``SEC. 5122. PURPOSES.
``The purposes of this chapter are to--
``(1) improve the quality of life for the vast majority of
law-abiding public housing residents by reducing the levels of
fear, violence, and crime in their communities;
``(2) broaden the scope of the Public and Assisted Housing
Drug Elimination Act of 1990 to apply to all types of crime,
and not simply crime that is drug-related; and
``(3) reduce crime and disorder in and around public housing
through the expansion of community-oriented policing activities
and problem solving.
``SEC. 5123. AUTHORITY TO MAKE GRANTS.
``The Secretary of Housing and Urban Development may make grants in
accordance with the provisions of this chapter for use in eliminating
crime in and around public housing and other federally assisted low-
income housing projects to (1) publichousing agencies, and (2) private,
for-profit and nonprofit owners of federally assisted low-income
housing.''.
(b) Eligible Activities.--
(1) In general.--Section 5124(a) of the Anti-Drug Abuse Act
of 1988 (42 U.S.C. 11903(a)) is amended--
(A) in the matter preceding paragraph (1), by
inserting ``and around'' after ``used in'';
(B) in paragraph (3), by inserting before the
semicolon the following: ``, including fencing,
lighting, locking, and surveillance systems'';
(C) in paragraph (4), by striking subparagraph (A)
and inserting the following new subparagraph:
``(A) to investigate crime; and'';
(D) in paragraph (6)--
(i) by striking ``in and around public or
other federally assisted low-income housing
projects''; and
(ii) by striking ``and'' after the semicolon;
and
(E) by striking paragraph (7) and inserting the
following new paragraphs:
``(7) providing funding to nonprofit public housing resident
management corporations and resident councils to develop
security and crime prevention programs involving site
residents;
``(8) the employment or utilization of one or more
individuals, including law enforcement officers, made available
by contract or other cooperative arrangement with State or
local law enforcement agencies, to engage in community- and
problem-oriented policing involving interaction with members of
the community in proactive crime control and prevention
activities;
``(9) programs and activities for or involving youth,
including training, education, recreation and sports, career
planning, and entrepreneurship and employment activities and
after school and cultural programs; and
``(10) service programs for residents that address the
contributing factors of crime, including programs for job
training, education, drug and alcohol treatment, and other
appropriate social services.''.
(2) Other pha-owned housing.--Section 5124(b) of the Anti-
Drug Abuse Act of 1988 (42 U.S.C. 11903(b)) is amended--
(A) in the matter preceding paragraph (1)--
(i) by striking ``drug-related crime in'' and
inserting ``crime in and around''; and
(ii) by striking ``paragraphs (1) through
(7)'' and inserting ``paragraphs (1) through
(10)''; and
(B) in paragraph (2), by striking ``drug-related''
and inserting ``criminal''.
(c) Grant Procedures.--Section 5125 of the Anti-Drug Abuse Act of
1988 (42 U.S.C. 11904) is amended to read as follows:
``SEC. 5125. GRANT PROCEDURES.
``(a) PHA's With 250 or More Units.--
``(1) Grants.--In each fiscal year, the Secretary shall make
a grant under this chapter from any amounts available under
section 5131(b)(1) for the fiscal year to each of the following
public housing agencies:
``(A) New applicants.--Each public housing agency
that owns or operates 250 or more public housing
dwelling units and has--
``(i) submitted an application to the
Secretary for a grant for such fiscal year,
which includes a 5-year crime deterrence and
reduction plan under paragraph (2); and
``(ii) had such application and plan approved
by the Secretary.
``(B) Renewals.--Each public housing agency that owns
or operates 250 or more public housing dwelling units
and for which--
``(i) a grant was made under this chapter for
the preceding Federal fiscal year;
``(ii) the term of the 5-year crime
deterrence and reduction plan applicable to
such grant includes the fiscal year for which
the grant under this subsection is to be made;
and
``(iii) the Secretary has determined,
pursuant to a performance review under
paragraph (4), that during the preceding fiscal
year the agency has substantially fulfilled the
requirements under subparagraphs (A) and (B) of
paragraph (4).
Notwithstanding subparagraphs (A) and (B), the Secretary may
make a grant under this chapter to a public housing agency that
owns or operates 250 or more public housing dwelling units only
if the agency includes in the application for the grant
information that demonstrates, to the satisfaction of the
Secretary, that the agency has a need for the grant amounts
based on generally recognized crime statistics showing that (I)
the crime rate for the public housing developments of the
agency (or the immediate neighborhoods in which such
developments are located) is higher than the crime rate for the
jurisdiction in which the agency operates, (II) the crime rate
for the developments (or such neighborhoods) is increasing over
a period of sufficient duration to indicate a general trend, or
(III) the operation of the program under this chapter
substantially contributes to the reduction of crime.
``(2) 5-year crime deterrence and reduction plan.--Each
application for a grant under this subsection shall contain a
5-year crime deterrence and reduction plan. The plan shall be
developed with the participation of residents and appropriate
law enforcement officials. The plan shall describe, for the
public housing agency submitting the plan--
``(A) the nature of the crime problem in public
housing owned or operated by the public housing agency;
``(B) the building or buildings of the public housing
agency affected by the crime problem;
``(C) the impact of the crime problem on residents of
such building or buildings; and
``(D) the actions to be taken during the term of the
plan to reduce and deter such crime, which shall
include actions involving residents, law enforcement,
and service providers.
The term of a plan shall be the period consisting of 5
consecutive fiscal years, which begins with the first fiscal
year for which funding under this chapter is provided to carry
out the plan.
``(3) Amount.--In any fiscal year, the amount of the grant
for a public housing agency receiving a grant pursuant to
paragraph (1) shall be the amount that bears the same ratio to
the total amount made available under section 5131(b)(1) as the
total number of public dwelling units owned or operated by such
agency bears to the total number of dwelling units owned or
operated by all public housing agencies that own or operate 250
or more public housing dwelling units that are approved for
such fiscal year.
``(4) Performance review.--For each fiscal year, the
Secretary shall conduct a performance review of the activities
carried out by each public housing agency receiving a grant
pursuant to this subsection to determine whether the agency--
``(A) has carried out such activities in a timely
manner and in accordance with its 5-year crime
deterrence and reduction plan; and
``(B) has a continuing capacity to carry out such
plan in a timely manner.
``(5) Submission of applications.--The Secretary shall
establish such deadlines and requirements for submission of
applications under this subsection.
``(6) Review and determination.--The Secretary shall review
each application submitted under this subsection upon
submission and shall approve the application unless the
application and the 5-year crime deterrence and reduction plan
are inconsistent with the purposes of this chapter or any
requirements established by the Secretary or the information in
the application or plan is not substantially complete. Upon
approving or determining not to approve an application and plan
submitted under this subsection, the Secretary shall notify the
public housing agency submitting the application and plan of
such approval or disapproval.
``(7) Disapproval of applications.--If the Secretary notifies
an agency that the application and plan of the agency is not
approved, not later than the expiration of the 15-day period
beginning upon such notice of disapproval, the Secretary shall
also notify the agency, in writing, of the reasons for the
disapproval, the actions that the agency could take to comply
with the criteria for approval, and the deadlines for such
actions.
``(8) Failure to approve or disapprove.--If the Secretary
fails to notify an agency of approval or disapproval of an
application and plan submitted under this subsection before the
expiration of the 60-day period beginning upon the submission
of the plan or fails to provide notice under paragraph (7)
within the 15-day period under such paragraph to an agency
whose application has been disapproved, the application and
plan shall be considered to have been approved for purposes of
this section.
``(b) PHA's With Fewer Than 250 Units and Owners of Federally
Assisted Low-Income Housing.--
``(1) Applications and plans.--To be eligible to receive a
grant under this chapter, a public housing agency that owns or
operates fewer than 250 public housing dwelling units or an
owner of federally assisted low-income housing shall submit an
application to the Secretary at such time, in such manner, and
accompanied by such additional information as the Secretary may
require. The application shall include a plan for addressing
the problem of crime in and around the housing for which the
application is submitted, describing in detail activities to be
conducted during the fiscal year for which the grant is
requested.
``(2) Grants for pha's with fewer than 250 units.--In each
fiscal year the Secretary may, to the extent amounts are
available under section 5131(b)(2), make grants under this
chapter to public housing agencies that own or operate fewer
than 250 public housing dwelling units and have submitted
applications under paragraph (1) that the Secretary has
approved pursuant to the criteria under paragraph (4).
``(3) Grants for federally assisted low-income housing.--In
each fiscal year the Secretary may, to the extent amounts are
available under section 5131(b)(3), make grants under this
chapter to owners of federally assisted low-income housing that
have submitted applications under paragraph (1) that the
Secretary has approved pursuant to the criteria under
paragraphs (4) and (5).
``(4) Criteria for approval of applications.--The Secretary
shall determine whether to approve each application under this
subsection on the basis of--
``(A) the extent of the crime problem in and around
the housing for which the application is made;
``(B) the quality of the plan to address the crime
problem in the housing for which the application is
made;
``(C) the capability of the applicant to carry out
the plan; and
``(D) the extent to which the tenants of the housing,
the local government, local community-based nonprofit
organizations, local tenant organizations representing
residents of neighboring projects that are owned or
assisted by the Secretary, and the local community
support and participate in the design and
implementation of the activities proposed to be funded
under the application.
In each fiscal year, the Secretary may give preference to
applications under this subsection for housing made by
applicants who received a grant for such housing for the
preceding fiscal year under this subsection or under the
provisions of this chapter as in effect immediately before the
date of the enactment of the Housing Opportunity and
Responsibility Act of 1997.
``(5) Additional criteria for federally assisted low-income
housing.--In addition to the selection criteria under paragraph
(4), the Secretary may establish other criteria for evaluating
applications submitted by owners of federally assisted low-
income housing, except that such additional criteria shall be
designed only to reflect--
``(A) relevant differences between the financial
resources and other characteristics of public housing
agencies and owners of federally assisted low-income
housing; or
``(B) relevant differences between the problem of
crime in public housing administered by such
authorities and the problem of crime in federally
assisted low-income housing.''.
(d) Definitions.--Section 5126 of the Anti-Drug Abuse Act of 1988 (42
U.S.C. 11905) is amended--
(1) by striking paragraphs (1) and (2);
(2) in paragraph (4)(A), by striking ``section'' before
``221(d)(4)'';
(3) by redesignating paragraphs (3) and (4) (as so amended)
as paragraphs (1) and (2), respectively; and
(4) by adding at the end the following new paragraph:
``(3) Public housing agency.--The term `public housing
agency' has the meaning given the term in section 103 of the
Housing Opportunity and Responsibility Act of 1997.''.
(e) Implementation.--Section 5127 of the Anti-Drug Abuse Act of 1988
(42 U.S.C. 11906) is amended by striking ``Cranston-Gonzalez National
Affordable Housing Act'' and inserting ``Housing Opportunity and
Responsibility Act of 1997''.
(f) Reports.--Section 5128 of the Anti-Drug Abuse Act of 1988 (42
U.S.C. 11907) is amended--
(1) by striking ``drug-related crime in'' and inserting
``crime in and around''; and
(2) by striking ``described in section 5125(a)'' and
inserting ``for the grantee submitted under subsection (a) or
(b) of section 5125, as applicable''.
(g) Funding and Program Sunset.--Chapter 2 of subtitle C of title V
of the Anti-Drug Abuse Act of 1988 is amended by striking section 5130
(42 U.S.C. 11909) and inserting the following new section:
``SEC. 5130. FUNDING.
``(a) Authorization of Appropriations.--There are authorized to be
appropriated to carry out this chapter $290,000,000 for each of fiscal
years 1998, 1999, 2000, 2001, and 2002.
``(b) Allocation.--Of any amounts available, or that the Secretary is
authorized to use, to carry out this chapter in any fiscal year--
``(1) 85 percent shall be available only for assistance
pursuant to section 5125(a) to public housing agencies that own
or operate 250 or more public housing dwelling units;
``(2) 10 percent shall be available only for assistance
pursuant to section 5125(b)(2) to public housing agencies that
own or operate fewer than 250 public housing dwelling units;
and
``(3) 5 percent shall be available only for assistance to
federally assisted low-income housing pursuant to section
5125(b)(3).
``(c) Retention of Proceeds of Asset Forfeitures by Inspector
General.--Notwithstanding section 3302 of title 31, United States Code,
or any other provision of law affecting the crediting of collections,
the proceeds of forfeiture proceedings and funds transferred to the
Office of Inspector General of the Department of Housing and Urban
Development, as a participating agency, from the Department of Justice
Assets Forfeiture Fund or the Department of the Treasury Forfeiture
Fund, as an equitable share from the forfeiture of property in
investigations in which the Office of Inspector General participates,
shall be deposited to the credit of the Office of Inspector General for
Operation Safe Home activities authorized under the Inspector General
Act of 1978, as amended, to remain available until expended.''.
(h) Conforming Amendments.--The table of contents in section 5001 of
the Anti-Drug Abuse Act of 1988 (Public Law 100-690; 102 Stat. 4295) is
amended--
(1) by striking the item relating to the heading for chapter
2 of subtitle C of title V and inserting the following:
``Chapter 2--Community Partnerships Against Crime'';
(2) by striking the item relating to section 5122 and
inserting the following new item:
``Sec. 5122. Purposes.'';
(3) by striking the item relating to section 5125 and
inserting the following new item:
``Sec. 5125. Grant procedures.'';
and
(4) by striking the item relating to section 5130 and
inserting the following new item:
``Sec. 5130. Funding.''.
(i) Treatment of NOFA.--The cap limiting assistance under the Notice
of Funding Availability issued by the Department of Housing and Urban
Development in the Federal Register of April 8, 1996, shall not apply
to a public housing agency within an area designated as a high
intensity drug trafficking area under section 1005(c) of the Anti-Drug
Abuse Act of 1988 (21 U.S.C. 1504(c)).
(j) Effective Date.--This section and the amendments made by this
section shall take effect on the date of the enactment of this Act.
Subtitle C--Limitations Relating to Occupancy in Federally Assisted
Housing
SEC. 641. SCREENING OF APPLICANTS.
(a) Ineligibility Because of Eviction.--Any household or member of a
household evicted from federally assisted housing (as such term is
defined in section 645) shall not be eligible for federally assisted
housing--
(1) in the case of eviction by reason of drug-related
criminal activity, for a period of not less than 3 years that
begins on the date of such eviction, unless the evicted member
of the household successfully completes a rehabilitation
program; and
(2) in the case of an eviction for other serious violations
of the terms or conditions of the lease, for a reasonable
period of time, as determined by the public housing agency or
owner of the federally assisted housing, as applicable.
The requirements of paragraphs (1) and (2) may be waived if the
circumstances leading to eviction no longer exist.
(b) Ineligibility of Illegal Drug Users and Alcohol Users.--
(1) In general.--Notwithstanding any other provision of law,
a public housing agency or an owner of federally assisted
housing, or both, as determined by the Secretary, shall
establish standards that prohibit admission to the program or
admission to federally assisted housing for any household with
a member--
(A) who the public housing agency or owner determines
is engaging in the illegal use of a controlled
substance; or
(B) with respect to whom the public housing agency or
owner determines that it has reasonable cause to
believe that such household member's illegal use (or
pattern of illegal use) of a controlled substance, or
abuse (or pattern of abuse) of alcohol, would interfere
with the health, safety, or right to peaceful enjoyment
of the premises by other residents.
(2) Consideration of rehabilitation.--In determining whether,
pursuant to paragraph (1)(B), to deny admission to the program
or to federally assisted housing to any household based on a
pattern of illegal use of a controlled substance or a pattern
of abuse of alcohol by a household member, a public housing
agency or an owner may consider whether such household member--
(A) has successfully completed an accredited drug or
alcohol rehabilitation program (as applicable) and is
no longer engaging in the illegal use of a controlled
substance or abuse of alcohol (as applicable);
(B) has otherwise been rehabilitated successfully and
is no longer engaging in the illegal use of a
controlled substance or abuse of alcohol (as
applicable); or
(C) is participating in an accredited drug or alcohol
rehabilitation program (as applicable) and is no longer
engaging in the illegal use of a controlled substance
or abuse of alcohol (as applicable).
(c) Authority To Deny Admission to Criminal Offenders.--Except as
provided in subsections (a) and (b) and in addition to any other
authority to screen applicants, in selecting among applicants for
admission to the program or to federally assisted housing, if the
public housing agency or owner of such housing (as applicable)
determines that an applicant or any member of the applicant's household
is or was, during a reasonable time preceding the date when the
applicant household would otherwise be selected for admission, engaged
in any criminal activity (including drug-related criminal activity),
the public housing agency or owner may--
(1) deny such applicant admission to the program or to
federally assisted housing;
(2) consider the applicant (for purposes of any waiting list)
as not having applied for the program or such housing; and
(3) after the expiration of the reasonable period beginning
upon such activity, require the applicant, as a condition of
admission to the program or to federally assisted housing, to
submit to the public housing agency or owner evidence
sufficient (as the Secretary shall by regulation provide) to
ensure that the individual or individuals in the applicant's
household who engaged in criminal activity for which denial was
made under paragraph (1) have not engaged in any criminal
activity during such reasonable period.
(d) Authority To Require Access to Criminal Records.--A public
housing agency and an owner of federally assisted housing may require,
as a condition of providing admission to the program or admission to or
occupancy in federally assisted housing, that each adult member of the
household provide a signed, written authorization for the public
housing agency to obtain the records described in section 644(a)
regarding such member of the household from the National Crime
Information Center, police departments, other law enforcement agencies,
and State registration agencies referred to in such section. In the
case of an owner of federally assisted housing that is not a public
housing agency, the owner shall request the public housing agency
having jurisdiction over the area within which the housing is located
to obtain the records pursuant to section 644.
(e) Admission Based on Disability.--
(1) In general.--Notwithstanding any other provision of law,
for purposes of determining eligibility for admission to
federally assisted housing, a person shall not be considered to
have a disability or a handicap solely because of theprior or
current illegal use of a controlled substance (as defined in section
102 of the Controlled Substances Act) or solely by reason of the prior
or current use of alcohol.
(2) Continued occupancy.--This subsection may not be
construed to prohibit the continued occupancy of any person who
is a resident in assisted housing on the effective date of this
Act.
SEC. 642. TERMINATION OF TENANCY AND ASSISTANCE FOR ILLEGAL DRUG USERS
AND ALCOHOL ABUSERS.
Notwithstanding any other provision of law, a public housing agency
or an owner of federally assisted housing (as applicable), shall
establish standards or lease provisions for continued assistance or
occupancy in federally assisted housing that allow the agency or owner
(as applicable) to terminate the tenancy or assistance for any
household with a member--
(1) who the public housing agency or owner determines is
engaging in the illegal use of a controlled substance; or
(2) whose illegal use of a controlled substance, or whose
abuse of alcohol, is determined by the public housing agency or
owner to interfere with the health, safety, or right to
peaceful enjoyment of the premises by other residents.
SEC. 643. LEASE REQUIREMENTS.
In addition to any other applicable lease requirements, each lease
for a dwelling unit in federally assisted housing shall provide that--
(1) the owner may not terminate the tenancy except for
violation of the terms or conditions of the lease, violation of
applicable Federal, State, or local law, or for other good
cause; and
(2) grounds for termination of tenancy shall include any
criminal or other activity, engaged in by the tenant, any
member of the tenant's household, any guest, or any other
person under the control of the household, that--
(A) threatens the health or safety of, or right to
peaceful enjoyment of the premises by, other tenant or
employees of the owner or other manager of the housing;
(B) threatens the health or safety of, or right to
peaceful enjoyment of their premises by, persons
residing in the immediate vicinity of the premises.
SEC. 644. AVAILABILITY OF CRIMINAL RECORDS FOR TENANT SCREENING AND
EVICTION.
(a) In General.--
(1) Criminal conviction information.--Notwithstanding any
other provision of law other than paragraphs (3) and (4), upon
the request of a public housing agency, the National Crime
Information Center, a police department, and any other law
enforcement agency shall provide to the public housing agency
information regarding the criminal conviction records of an
adult applicant for, or tenants of, federally assisted housing
for purposes of applicant screening, lease enforcement, and
eviction, but only if the public housing agency requests such
information and presents to such Center, department, or agency
a written authorization, signed by such applicant, for the
release of such information to the public housing agency or
other owner of the federally assisted housing.
(2) Information regarding crimes against children.--
Notwithstanding any other provision of law other than
paragraphs (3) and (4), upon the request of a public housing
agency, a State law enforcement agency designated as a
registration agency under a State registration program under
subtitle A of title XVII of the Violent Crime Control and Law
Enforcement Act of 1994 (42 U.S.C. 14071) and any local law
enforcement agency authorized by the State agency shall provide
to a public housing agency the information collected under such
State registration program regarding an adult applicant for, or
tenant of, federally assisted housing for purposes of applicant
screening, lease enforcement, and eviction, but only if the
public housing agency requests such information and presents to
such State registration agency or other local law enforcement
agency a written authorization, signed by such applicant, for
the release of such information to the public housing agency or
other owner of the federally assisted housing.
(3) Delayed effective date for owners other than pha's.--The
provisions of paragraphs (1) and (2) authorizing obtaining
information for owners of federally assisted housing other than
public housing agencies shall not take effect before--
(A) the expiration of the 1-year period beginning on
the date of enactment of this Act; and
(B) the Secretary and the Attorney General of the
United States have determined that access to such
information is feasible for such owners and have
provided for the terms of release of such information
to owners.
(4) Exception.--The information provided under paragraphs
(1), (2), and (3) shall include information regarding any
criminal conviction of a juvenile only to the extent that the
release of such information is authorized under the law of the
applicable State, tribe, or locality.
(b) Confidentiality.--A public housing agency or owner receiving
information under this section may use such information only for the
purposes provided in this section and such information may not be
disclosed to any person who is not an officer, employee, or authorized
representative of the agency or owner and who has a job-related need to
have access to the information in connection with admission of
applicants, eviction of tenants, or termination of assistance. For
judicial eviction proceedings, disclosures may be made to the extent
necessary. The Secretary shall, by regulation, establish procedures
necessary to ensure that information provided under this section to a
public housing agency or owner is used, and confidentiality of such
information is maintained, as required under this section.
(c) Opportunity to Dispute.--Before an adverse action is taken with
regard to assistance under for federally assisted housing on the basis
of a criminal record, the public housing agency or owner shall provide
the tenant or applicant with a copy of the criminal record and an
opportunity to dispute the accuracy and relevance of that record.
(d) Fee.--A public housing agency may be charged a reasonable fee for
information provided under subsection (a). A public housing agency may
require an owner of federally assisted housing (that is not a public
housing agency) to pay such fee for any information that the agency
acquires for the owner pursuant to section 641(d) and subsection (a) of
this section.
(e) Records Management.--Each public housing agency and owner of
federally assisted housing that receives criminal record information
pursuant to this section shall establish and implement a system of
records management that ensures that any criminal record received by
the agency or owner is--
(1) maintained confidentially;
(2) not misused or improperly disseminated; and
(3) destroyed in a timely fashion, once the purpose for which
the record was requested has been accomplished.
(f) Penalty.--Any person who knowingly and willfully requests or
obtains any information concerning an applicant for, or tenant of,
federally assisted housing pursuant to the authority under this section
under false pretenses, or any person who knowingly and willfully
discloses any such information in any manner to any individual not
entitled under any law to receive it, shall be guilty of a misdemeanor
and fined not more than $5,000. The term ``person'' as used in this
subsection shall include an officer, employee, or authorized
representative of any public housing agency or owner.
(g) Civil Action.--Any applicant for, or tenant of, federally
assisted housing affected by (1) a negligent or knowing disclosure of
information referred to in this section about such person by an
officer, employee, or authorized representative of any public housing
agency or owner of federally assisted housing, which disclosure is not
authorized by this section, or (2) any other negligent or knowing
action that is inconsistent with this section, may bring a civil action
for damages and such other relief as may be appropriate against any
public housing agency or owner responsible for such unauthorized
action. The district court of the United States in the district in
which the affected applicant or tenant resides, in which such
unauthorized action occurred, or in which the officer, employee, or
representative alleged to be responsible for any such unauthorized
action resides, shall have jurisdiction in such matters. Appropriate
relief that may be ordered by such district courts shall include
reasonable attorney's fees and other litigation costs.
(h) Definition.--For purposes of this section, the term ``adult''
means a person who is 18 years of age or older, or who has been
convicted of a crime as an adult under any Federal, State, or tribal
law.
SEC. 645. DEFINITIONS.
For purposes of this subtitle, the following definitions shall apply:
(1) Federally assisted housing.--The term ``federally
assisted housing'' means a dwelling unit--
(A) in public housing (as such term is defined in
section 102);
(B) assisted with choice-based housing assistance
under title III;
(C) in housing that is provided project-based
assistance under section 8 of the United States Housing
Act of 1937 (as in effect before the effective date of
the repeal under section 601(b) of this Act) or
pursuant to section 601(f) of this Act, including new
construction and substantial rehabilitation projects;
(D) in housing that is assisted under section 202 of
the Housing Act of 1959 (as amended by section 801 of
the Cranston-Gonzalez National Affordable Housing Act);
(E) in housing that is assisted under section 202 of
the Housing Act of 1959, as such section existed before
the enactment of the Cranston-Gonzalez National
Affordable Housing Act;
(F) in housing that is assisted under section 811 of
the Cranston-Gonzalez National Affordable Housing Act;
(G) in housing financed by a loan or mortgage insured
under section 221(d)(3) of the National Housing Act
that bears interest at a rate determined under the
proviso of section 221(d)(5) of such Act;
(H) in housing insured, assisted, or held by the
Secretary or a State or State agency under section 236
of the National Housing Act;
(I) for purposes only of subsections 641(c), 641(d),
643, and 644, in housing assisted under section 515 of
the Housing Act of 1949.
(2) Owner.--The term ``owner'' means, with respect to
federally assisted housing, the entity or private person
(including a cooperative or public housing agency) that has the
legal right to lease or sublease dwelling units in such
housing.
TITLE VII--AFFORDABLE HOUSING AND MISCELLANEOUS PROVISIONS
SEC. 701. RURAL HOUSING ASSISTANCE.
The last sentence of section 520 of the Housing Act of 1949 (42
U.S.C. 1490) is amended by inserting before the period the following:
``, and the city of Altus, Oklahoma, shall be considered a rural area
for purposes of this title until the receipt of data from the decennial
census in the year 2000''.
SEC. 702. TREATMENT OF OCCUPANCY STANDARDS.
The Secretary of Housing and Urban Development shall not directly or
indirectly establish a national occupancy standard.
SEC. 703. IMPLEMENTATION OF PLAN.
(a) Implementation.--
(1) In general.--Not later than 120 days after the date of
the enactment of this Act, the Secretary shall implement the
Ida Barbour Revitalization Plan of the City of Portsmouth,
Virginia, in a manner consistent with existing limitations
under law.
(2) Waivers.--In carrying out paragraph (1), the Secretary
shall consider and make any waivers to existing regulations and
other requirements consistent with the plan described in
paragraph (1) to enable timely implementation of such plan,
except that generally applicable regulations and other
requirements governing the award of funding under programs for
which assistance is applied for in connection with such plan
shall apply.
(b) Report.--
(1) In general.--Not later than 1 year after the date of the
enactment of this Act and annually thereafter through the year
2000, the city described in subsection (a)(1) shall submit a
report to the Secretary on progress in implementing the plan
described in that subsection.
(2) Contents.--Each report submitted under this subsection
shall include--
(A) quantifiable measures revealing the increase in
homeowners, employment, tax base, voucher allocation,
leverage ratio of funds, impact on and compliance with
the consolidated plan of the city;
(B) identification of regulatory and statutory
obstacles that--
(i) have caused or are causing unnecessary
delays in the successful implementation of the
consolidated plan; or
(ii) are contributing to unnecessary costs
associated with the revitalization; and
(C) any other information that the Secretary
considers to be appropriate.
SEC. 704. INCOME ELIGIBILITY FOR HOME AND CDBG PROGRAMS.
(a) Home Investment Partnerships.--The Cranston-Gonzalez National
Affordable Housing Act is amended as follows:
(1) Definitions.--In section 104(10) (42 U.S.C. 12704(10))--
(A) by striking ``income ceilings higher or lower''
and inserting ``an income ceiling higher'';
(B) by striking ``variations are'' and inserting
``variation is''; and
(C) by striking ``high or''.
(2) Income targeting.--In section 214(1)(A) (42 U.S.C.
12744(1)(A))--
(A) by striking ``income ceilings higher or lower''
and inserting ``an income ceiling higher'';
(B) by striking ``variations are'' and inserting
``variation is''; and
(C) by striking ``high or''.
(3) Rent limits.--In section 215(a)(1)(A) (42 U.S.C.
12745(a)(1)(A))--
(A) by striking ``income ceilings higher or lower''
and inserting ``an income ceiling higher'';
(B) by striking ``variations are'' and inserting
``variation is''; and
(C) by striking ``high or''.
(b) CDBG.--Section 102(a)(20) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5302(a)(20)) is amended by striking
subparagraph (B) and inserting the following new subparagraph:
``(B) The Secretary may--
``(i) with respect to any reference in subparagraph
(A) to 50 percent of the median income of the area
involved, establish percentages of median income for
any area that are higher or lower than 50 percent if
the Secretary finds such variations to be necessary
because of unusually high or low family incomes in such
area; and
``(ii) with respect to any reference in subparagraph
(A) to 80 percent of the median income of the area
involved, establish a percentage of median income for
any area that is higher than 80 percent if the
Secretary finds such variation to be necessary because
of unusually low family incomes in such area.''.
SEC. 705. PROHIBITION OF USE OF CDBG GRANTS FOR EMPLOYMENT RELOCATION
ACTIVITIES.
Section 105 of the Housing and Community Development Act of 1974 (42
U.S.C. 5305) is amended by adding at the end the following new
subsection:
``(h) Prohibition of Use of Assistance for Employment Relocation
Activities.--Notwithstanding any other provision of law, no amount from
a grant under section 106 made in fiscal year 1997 or any succeeding
fiscal year may be used for any activity (including any infrastructure
improvement) that is intended, or is likely, to facilitate the
relocation or expansion of any industrial or commercial plant,
facility, or operation, from one area to another area, if the
relocation or expansion will result in a loss of employment in the area
from which the relocation or expansion occurs.''.
SEC. 706. USE OF AMERICAN PRODUCTS.
(a) Purchase of American-Made Equipment and Products.--It is the
sense of the Congress that, to the greatest extent practicable, all
equipment and products purchased with funds made available in this Act
should be American made.
(b) Notice Requirement.--In providing financial assistance to, or
entering into any contract with, any entity using funds made available
in this Act, the head of each Federal agency, to the greatest extent
practicable, shall provide to such entity a notice describing the
statement made in subsection (a) by the Congress.
SEC. 707. CONSULTATION WITH AFFECTED AREAS IN SETTLEMENT OF LITIGATION.
In negotiating any settlement of, or consent decree for, any
litigation regarding public housing or rental assistance (under title
III of this Act or the United States Housing Act of 1937, as in effect
before the effective date of the repeal under section 601(b) of this
Act) that involves the Secretary and any public housing agency or any
unit of general local government, the Secretary shall consult with any
units of general local government and public housing agencies having
jurisdictions that are adjacent to the jurisdiction of the public
housing agency involved.
SEC. 708. USE OF ASSISTED HOUSING BY ALIENS.
Section 214 of the Housing and Community Development Act of 1980 (42
U.S.C. 1436a) is amended--
(1) in subsection (b)(2), by striking ``Secretary of Housing
and Urban Development'' and inserting ``applicable Secretary'';
(2) in subsection (c)(1)(B), by moving clauses (ii) and (iii)
2 ems to the left;
(3) in subsection (d)--
(A) in paragraph (1)(A)--
(i) by striking ``Secretary of Housing and
Urban Development'' and inserting ``applicable
Secretary''; and
(ii) by striking ``the Secretary'' and
inserting ``the applicable Secretary'';
(B) in paragraph (2), in the matter following
subparagraph (B)--
(i) by inserting ``applicable'' before
``Secretary''; and
(ii) by moving such matter (as so amended by
clause (i)) 2 ems to the right;
(C) in paragraph (4)(B)(ii), by inserting
``applicable'' before ``Secretary'';
(D) in paragraph (5), by striking ``the Secretary''
and inserting ``the applicable Secretary''; and
(E) in paragraph (6), by inserting ``applicable''
before ``Secretary'';
(4) in subsection (h) (as added by section 576 of the Illegal
Immigration Reform and Immigrant Responsibility Act of 1996
(division C of Public Law 104-208))--
(A) in paragraph (1)--
(i) by striking ``Except in the case of an
election under paragraph (2)(A), no'' and
inserting ``No'';
(ii) by striking ``this section'' and
inserting ``subsection (d)''; and
(iii) by inserting ``applicable'' before
``Secretary''; and
(B) in paragraph (2)--
(i) by striking subparagraph (A) and
inserting the following new subparagraph:
``(A) may, notwithstanding paragraph (1) of this
subsection, elect not to affirmatively establish and
verify eligibility before providing financial
assistance''; and
(ii) in subparagraph (B), by striking ``in
complying with this section'' and inserting
``in carrying out subsection (d)''; and
(5) by redesignating subsection (h) (as amended by paragraph
(4)) as subsection (i).
SEC. 709. EFFECTIVE DATE.
This title and the amendments made by this title shall take effect on
the date of the enactment of this Act.
Explanation of the Legislation
1H.R. 2, the Housing Opportunity and Responsibility Act of
1997, fundamentally changes the public housing and Section 8
rental assistance programs, both of which are under the
jurisdiction of the Department of Housing and Urban Development
(HUD). This legislation represents the first step toward
creating a new role for the Federal government in supporting
local communities and their efforts at improvement.
The predecessor to H.R. 2 in the 104th Congress was H.R.
2406, the United States Housing Act of 1996, introduced by
Chairman Lazio on September 27, 1995. The Committee on Banking
and Financial Services marked up H.R. 2406 and ordered it to be
reported by a vote of 27 to 18 on November 9, 1995 (Report 104-
461 Part I and II). On May 9, 1996, the House of
Representatives passed H.R. 2406 by a vote of 315 to 107.
Although the Senate passed a companion bill S. 1260, the Public
Housing Reform and Empowerment Act of 1995, on January 10,
1996, House and Senate conferees were unable to reach agreement
regarding the differences between the two bills.
The House, Senate and the Administration agree on the
critical need for public housing authorization legislation.
Secretary Cuomo has expressed his willingness to work with
Congress to craft a bill that can be passed this year. All
parties are in agreement that incremental reforms currently
found in annual appropriations measures are inadequate to the
task of fundamental reform. The disincentives to work and self-
sufficiency, the overconcentration of poverty in certain
neighborhoods, and the deplorable conditions that residents
live in must be changed. Moreover, by the year 2002, many
programs will come under increasing budgetary constraints. The
Committee believes that in this environment of diminishing
Federal resources, housing programs must change in two
significant ways: they must be focused through consolidation to
provide the most service for the least cost; and they must be
tailored to local needs so that limited Federal funding is
invested where, through local discretion, it can achieve the
greatest return.
H.R. 2 replaces the United States Housing Act of 1937 (the
``1937 Act''), eliminating disincentives to work currently
found in the public and assisted housing programs by providing
residents with a choice between income-based rents or flat
rents. A resident may choose to pay a rent that shall not
exceed thirty percent (30%) of their income or, a flat rent for
the unit established by the public housing authority (``PHA'').
In this manner, as the resident increases his or her income by
working harder, they know that there will be a set rent (the
flat rent) beyond which any increases in their income will not
result in any concurrent rent increases. In addition, the
tenant protections afforded by providing that residents shall
not pay more than 30% of their income as rent are maintained in
law.
In order to promote work and self sufficiency efforts on
the part of residents, and for the purpose of creating an
environment where individuals feel that there is a mutuality of
obligation between recipients of Federal aid and the provider
of such assistance, H.R. 2 requires that each non-working
resident who is not elderly, disabled, or otherwise subject to
local welfare work requirements, to contribute not less than
eight (8) hours a month in community service to their
communities. Regarding local welfare reform efforts, H.R. 2
provides for coordination at the local level by ensuring that
those whose benefits are reduced due to the imposition of any
welfare sanctions not get a reduction in their rent due to a
decrease in income.
H.R. 2 eliminates the Federal mandates, known as
``preferences'', which have inadvertently created concentrated
pockets of poverty that have destroyed communities and
neighborhoods. Along with its rent reform provisions, H.R. 2
provides PHAs with the flexibility needed to create mixed-
income communities, providing children with the proper role
models and adding to the overall social capital of the
neighborhood.
The existing Section 8 certificate and voucher programs are
consolidated and recreated so they can be operated in a manner
that more closely resembles the private housing market.
Recipients are allowed to use choice-based assistance not only
as rent but in conjunction with homeownership programs. Instead
of only paying for their rent, the same money can be used by
the recipient to achieve ownership.
H.R. 2 returns decision-making to the local level,
deregulating well-run PHAs and allowing them to provide clean,
safe, healthy and affordable housing to needy families in a
more cost-effective and managerially-sound manner. It requires
that PHAs include in their annual planning an asset management
component regarding their inventory of housing units and
developments, in addition to the property management planning
approach that PHAs have traditionally used. This will require
that PHAs behave more like asset managers in the private
sector, making long-term decisions regarding their inventory
and how they should be allocating their resources to maximize
future use. In addition, PHAs are provided with new flexibility
to create mixed-finance developments, allowing localities to
develop public housing in conjunction with private, non-
subsidized housing units so that mixed-income communities can
be created.
In order to encourage greater coordination of resources and
more effective delivery of services, H.R. 2 contains provisions
empowering local officials, on a voluntary basis, to address
community needs by providing local flexibility in program
design and administration. Title IV, the Home Rule Flexible
Grant Option, requires that the Department of Housing and Urban
Development (HUD) provide local government leaders the option
to combine Federal housing assistance funds into a flexible
grant for use in administering these locally-developed
approaches to meet the housing needs of their communities.
Localities that wish to take advantage will enter performance
agreement contracts with HUD, not to exceed five years, with
specific, measurable goals. The focus is shifted from process-
oriented compliance with Federal mandates to accomplishing the
goals of the programs at the local community level.
Chronically troubled PHAs, whose long-standing failure have
been a hallmark of government involvement in housing and urban
development, are no longer tolerated. HUD is required to take
strong action and afforded several avenues to address these
problem authorities, including appointment of a receiver to
manage the PHA or replacement of management with professional
management entities that have the expertise to meet the goals
of this legislation.
Findings and Purposes
The purpose of this legislation is to promote safe, clean,
and healthy housing that is affordable to responsible,
deserving low-income families who cannot provide fully for
themselves. H.R. 2 seeks to eliminate the perverse
disincentives to work and self-sufficiency efforts faced by
residents as a result of current law governing rent by giving
residents the power of choice in how their rents are
determined. This legislation gives PHAs the flexibility they
need to begin to create healthy neighborhoods, where working
adults serve as role models for children, and allows them to
encourage mixed-income populations so that extreme
concentrations of poverty are no longer tolerated.
This legislation reverses the accumulation of power at the
Federal level. The Committee recognizes that it is impossible
for the Federal government, through its direct action or
involvement, to provide housing for every American citizen.
Despite this constraint, however, the Federal government does
have a responsibility to promote and protect the independent
and collective actions of private citizens to develop housing
and to strengthen communities. In order to develop this
responsible yet appropriate Federal role while increasing the
effectiveness of our efforts, decision-making and
administrative freedom is returned in great part to the PHAs.
The existing public housing programs are consolidated into two
block grants for operating and capital costs. The current
Section 8 and voucher programs are combined into one choice-
based assistance program that will operate more like the
private sector. In addition, PHAs are given more authority to
fight drugs and crime in their developments by evicting those
residents involved in such activity.
To encourage innovation, H.R. 2 provides statutory
parameters and significant flexibility to encourage local
ingenuity and creativity on the part of PHAs. In return for
deregulation, PHAs are expected to administer Federally
assisted housing programs, perform as effective property and
asset managers and operate their housing inventory in a manner
that serves local needs. A PHA may, for example, decide to
demolish a large, severely distressed public housing project
and provide alternative housing choices to displaced residents.
Likewise, the PHA might choose to enter into a joint-venture
with a private sector partner and build new affordable housing
using tax incentives, grants and loans. In either situation,
the legislation encourages partnerships with the private sector
as well as local and state governments. PHAs are given the
flexibility to create mixed-finance developments so that public
housing units can be developed in conjunction with private
units.
The Committee recognizes that traditional monitoring
techniques used by HUD must be redesigned. HUD monitoring of
PHAs has become overly process-oriented, and not effective in
determining true performance. As a result, the Committee bill
requires that a study be conducted regarding alternative
methods by which the performance of PHAs can be evaluated. At
the same time, an accreditation board is established upon the
enactment of the legislation so as to develop professional,
non-political standards by which the performance of PHAs that
accept Federal housing block grants should be judged. The
accreditation board is to take into account the findings of the
study regarding alternative evaluation methods.
In keeping with the Committee's goal of providing local
flexibility to develop innovative and more effective ways of
addressing the housing needs of our communities, Title IV gives
local governments the opportunity to create and administer
innovative programs designed to address more effectively the
needs of their communities. Exercise of this Home Rule
Flexibility Option is purely voluntary, and would have no
adverse impact on the funding otherwise received by the
locality under the traditional public and choice-based housing
programs. The local communities would, upon HUD review and
approval of their plan, be allowed to use Federal housing funds
for these programs. In this manner, communities are given the
incentive to work with their public housing agencies to end the
economic and social isolation of many of our public housing
developments, and to bring public housing residents into the
mainstream of their community.
The Committee recognizes that it is not enough for families
to live in soundly built houses--the family must also have
access to schools, churches and grocery stores. Coordinating
local strategies and encouraging local involvement will lead to
greater integration of Federal resources, such as Community
Development Block Grant (CDBG) and HOME funds, with affordable
housing funds. The Committee believes that such integration
will foster economic growth, creating economic opportunity for
residents of public and assisted housing.
Finally, the Committee believes the 1937 Act is outdated
and must be replaced. This Depression-era legislation was
written for a very different time, and the current Federal
housing programs are faced with huge challenges that must be
addressed forcefully and dramatically. In order to effectuate
true change that will impact positively on the lives of the
poor, the Committee believes that the time has come for a new
foundation to be established in Federal housing policy. Simply
amending the 1937 Act will signal to those participants in our
housing programs, both providers and recipients, that change is
incremental. The Committee believes that our Nation cannot
continue to allow children to grow up in assisted housing where
there are no role models, where work is punished, where they
are subject to random and violent crime, and where they are
isolated from the economic and social opportunities of
mainstream communities. TheCommittee heard substantial
testimony that not clearing the decks of outdated legislation and
Federal mandates may have the unintended consequence of undermining the
Committee's efforts at fundamental and sweeping reform. For purely
pragmatic reasons, therefore, the Committee believes that replacement
of the 1937 Act by a new model geared to the needs of future
generations of children is imperative to breaking the continuing cycle
of poverty.
I. BACKGROUND AND NEED FOR LEGISLATION
Most participants in the low-income housing community agree
that the law authorizing the public housing and Section 8
rental assistance programs is extremely complex. In fact, the
public housing program is one of the most perplexing areas of
HUD's Federal mandate. Most Americans believe that public
housing is a failure and a waste of their hard-earned taxpayer
dollars. This perception is based largely on projects like
Robert Taylor Homes in Chicago, Illinois, Hayes Homes in
Newark, New Jersey, Desire in New Orleans, Louisiana, and Allen
Parkway Village in Houston, Texas, all of which are in
deplorable condition and are largely vacant. Unfortunately, the
perception problem is bolstered by the knowledge that
approximately 20% of the public housing budget has flowed to
chronically troubled PHAs like Philadelphia, Chicago,
Washington, D.C., and New Orleans--PHAs that have failed to
carry out their missions.
Similarly, the Section 8 rental assistance program is
plagued by problems. Most people confuse this privately owned
housing program with public housing--a sore point for many
landlords and property managers. Excessive legislative
mandates, bureaucratic micromanagment, and other structural
deficiencies hamper what could be an otherwise worthwhile
program, and may lead to a decrease in the supply of clean,
healthy, and affordable housing.
Fortunately, most people familiar with the programs--the
Congress, the Administration, the low-income housing industry,
and the recipients of assistance--agree they must be reformed
and basic underlying principles changed. Even PHAs that manage
their housing inventories effectively concur that the current
construction of the public housing and Section 8 rental
assistance programs must change dramatically if they are to
continue to serve low-income clients.
Critical reform components include creating a new
environment in which: (1) residents are expected and encouraged
to become self-sufficient; (2) PHAs are empowered to make
management decisions about the viability of their stock and are
rewarded for performance; (3) management failures are no longer
tolerated but are dealt with swiftly, eliminating the
conditions that lead to chronically-troubled authorities; and
(4) local governments are encouraged to become active and
innovative contributors to the Federal housing programs in
their jurisdictions so that these programs are no longer
isolated from the community.
H.R. 2 offers a new approach which renews the premise that
the Federal government has a role to play in providing safe,
healthy, and affordable housing for families of low-income, but
that such a role should be responsible, effective, and
appropriate. Housing assistance is not an entitlement under the
Constitution. Moreover, no President or Congress has ever moved
towards making public housing and low income rental assistance
an entitlement by funding it at levels necessary to meet the
needs of the country's eligible population. Yet since the
passage of the 1937 Act, the Federal government's control of
low-income housing has steadily grown, increasing year by year
the mandates and requirements imposed upon localities until
local decision making and policy determination were completely
supplanted by Washington-knows-best approaches.
The 1937 Act itself was originally straightforward and
simple. Its stated objective was to stimulate the economy, to
assist business and labor, and to create jobs by stabilizing
the industrial activity of the United States during the
Depression. Additionally, the legislation sought to eliminate
slums and provide decent homes for families who had, under the
circumstances that prevailed at the time, become dependent on
public aid to improve their housing conditions. When passed,
the 1937 Act comprised only 12 pages of the United States
Statutes at Large. The original legislation did not provide
much direction about who was to receive assistance or how a
local authority was to make decisions regarding everyday
matters like admissions, rent structure, maintenance and
capital improvements. Special programmatic set-asides did not
exist, nor did the legislation contemplate providing money for
operating expenses of a dwelling unit.
Federal micromanagement has increased substantially beyond
what was intended by the 75th Congress. The more than 300 pages
of current law are filled with prescriptive solutions that
cannot be tailored to the needs of individual PHAs or the
families they serve. Unrealistic policies require obsolete
housing to be rehabilitated for millions of dollars even if
other available forms of housing are less expensive. Local
governments are precluded from making even basic decisions
about how to help their constituencies. PHAs are flooded by a
steady flow of mandates from Washington. Often many of these
mandates infringe on local control and, ultimately, are part of
ill-conceived attempts to create a ``one size fits all'' policy
for a resource that should be tailored to widely varying local
housing needs.
As Steven Goldsmith, Mayor of Indianapolis, stated before
the Subcommittee on Housing and Community Opportunity in
testimony on March 11, 1997, regarding H.R. 2:
The Federal government has responded to every concern
or potential mistake by creating a mountain of
restrictions and rules. I have been told by more than
one of the ``best'' public housing managers of the
nation that it is not possible to operate a public
housing agency within the rules as they exist. They
tell me that they succeed because they ignore the most
nonsensical rules.
Sixty years of continued amendments to the 1937 Act,
hundreds of thousands of pages of Federal regulations and HUD
handbooks, and the existence of a culture that has rewarded
compliance with process rather than performance and innovation,
lead the Committee to the conclusion that the goals of our
Federal housing programs can only be achieved under a modern
framework. The 1937 Act reflects the philosophy of a different
era, and much of the language and ideas contained in the 1937
Act are outdated. Many programs authorized by the legislation
have not been funded or utilized for years. In fact, some
programs have never been implemented.
Simply amending the 1937 Act rather than repealing it
outright may, in the Committee's judgment, lead to unintended
consequences that slow down and possibly undermine our efforts
at comprehensive reform. Regarding the need for repeal, Joseph
G. Schiff, a former Assistant Secretary for Public and Indian
Housing, stated on March 11, 1997, in testimony before the
Subcommittee:
I firmly believe that this is an essential step for
true reform of public housing. The fact that public
housing must have a different look five or ten years
from now has become an accepted viewpoint concerning
the program. The only thing we are still debating is
what it will look like and how should we get there. I
believe repealing the 1937 Act is an essential step on
this journey. The sixty years of baggage this Act is
mired in must be swept away. Repealing the Act is the
cleanest way to do so.
Mayor Goldsmith, strongly voiced his support for repeal of
the 1937 Act:
Finally, I think the repeal of the Housing Act of
1937 may be a particularly good idea * * * The
Committee has gone to great trouble to create a bill
that deregulates and simplifies the current program. It
expects H.R. 2 to set the parameters of public housing
policy in the United States. Without a recodification
of the law, then the Committee may have been less
encompassing than it had intended. In my experience,
and my experience is not unique, the answer to legal
question about public housing seems to be based upon
the opinion of the official offering the answer.
Because the law has grown by accretion * * * there is a
body of law that is so large and unfathomable that it
seems one can find a legal requirement on both sides of
any issue one would care to raise. If you add the
substance of H.R. 2 to the body of law that already
exists, you may find that a reluctant Administration
will find ways to frustrate your intent.
The question before this Committee was whether the housing
needs of our nation could be addressed by retaining the current
legal structure of public and Section 8 housing programs as
embodied by the 1937 Act and all the legal precedent associated
with the Act. After listening to the testimony of experts in
the housing industry, the response to the question is no.
II. PURPOSE AND SUMMARY
A. Overview
Today, over 3,400 local entities, called public housing
authorities (PHAs), own and operate about 13,200 public housing
developments. The inventory includes 1.4 million dwelling
units--high rises, garden apartments, town houses and single-
family homes.\1\ These homes are occupied by 4.3 million
families, most of whom stay an average of seven to ten years.
There are families, however, who live in public housing for
generations, changing a resource from what originally was
intended to be temporary assistance to a lifelong entitlement.
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\1\ About 13 million families meet the Federal eligibility
requirements for public housing. The structure of the housing programs,
along with receipt of other Federal entitlements, create significant
disincentives to self-sufficiency. Therefore, while one family is
housed, pays low rent, and has access to many services which have
nothing to do with housing, another family pays 60-80 percent of its
income to rent substandard housing with no access to services.
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Resident rents are dictated by Federal rules, which require
that rents be 30% of a resident's income. These strict income-
rent ratios have unintentionally created disincentives to work,
self sufficiency and family unification since a family's rent
burden increases as they earn more income. Federal preferences,
which mandate that PHAs give priority to certain populations
(the homeless, the extremely low-income, and others) have
unintentionally led to the creation of concentrated pockets of
poverty in many of our inner cities. The result has been the
destruction of neighborhoods.
The relationship between the Federal government and the PHA
is contractual. PHAs own and operate public housing in their
jurisdictions independently of local municipal governments. In
return for Federal payment of the costs of construction,
rehabilitation, modernization, and operating expenses, PHAs
agree to abide by Congressional statutes and HUD regulations.
Over the years, the rules have multiplied, tying in knots even
well-run PHAs. In addition, the direct relationship between the
Federal government and its micromanagement of every aspect of
the program has led to many local governments viewing public
housing developments as enclaves of the Federal government over
which they have very little control or input, and to which they
are loathe to devote resources.
Because of the tremendous pressure and commitment within
both the Congress and the Administration to balance the Federal
budget by the year 2002, many programs will come under
increasing budgetary constraints. The Committee believes that
in this environment of diminishing Federal resources, housing
programs must change in two significant ways: they must be
focused through consolidation to provide the most service for
the least cost; and they must be tailored to local needs so
that limited Federal funding is invested where, through local
discretion, it can achieve the greatest return.
For several years, academic experts, state and local
governments, and congressional committees have exhorted the
Department of Housing and Urban Development to limit growth in
the number of programs and focus on those programs that
complement its mission. In July 1994, under a congressional
mandate, the National Academy of Public Administration (NAPA)
completed its study of HUD, focusing on HUD's organization. One
of NAPA's conclusions was the following:
The Academy panel's first priority is a legislative
overhaul of HUD's programs. Absent this, other changes
will bring only marginal improvement in HUD operations.
Congress and the executive branch must work together to
redefine and consolidate HUD's assorted program menu
and determine whether some programs can be eliminated.
Those that remain should be organized under broad
mandates that permit the nation's communities to apply
the funds flexibly and reduce the administrative
burdens within HUD and among its program users.
NAPA went on to recommend that HUD submit to the Office of
Management and Budget (OMB) and Congress a comprehensive
proposal to reorganize HUD programs and group under them
individual activities. Additionally, in late 1994, HUD's Office
of Inspector General (OIG) reported on its review of 240 active
and inactive HUD programs. The OIG concluded that many programs
warranted serious consideration of elimination, consolidation,
or restructuring.
B. Rent reform
Currently, resident rent contributions are largely dictated
by Federal rules. With few exceptions, residents must pay 30
percent of their adjusted income for rent. Consequently, as a
family's income increases, the rent it must pay increases as
well--in contrast to the private market where rents are
determined by market conditions and operating costs.
Prior to 1969, PHAs were relatively financially self-
sufficient and did not receive operating subsidies from the
Federal government. Instead they charged rents, set at minimum
and maximum levels, which allowed them to pay normal operating
expenses. The rent levels were graduated between the minimum
and maximum levels as appropriate for each resident. In 1969,
Congress passed legislation (called the Brooke amendment for
its sponsor, Senator Edward Brooke) prohibiting PHAs from
charging more than 25% of a family's income for rent. The
immediate effect upon PHAs was a dramatic loss in revenue. To
make up for this loss, PHAs were often forced to forgo routine
maintenance and properties fell into disrepair. The Federal
government authorized the payment of operating subsidies to
PHAs in 1972. Three years later, in 1975, virtually all PHAs
required assistance and subsidies were distributed nationwide.
Hoping to curb the increasing reliance of PHAs on operating
subsidies, in 1981, Congress amended the Brooke amendment and
raised rental contributions to 30% of income. By itself, this
amendment was not damaging. However, at the same time, Congress
repealed the ability of PHAs to set maximum rent ``ceilings.''
These statutory changes contributed greatly to the destruction
of the financial integrity of many PHAs. Although the motive
behind these policies was to encourage everyone to pay their
own way, the law had just the opposite effect. Because rents
were raised each time a resident found a job or received a pay
raise, residents either quit working (or never sought
employment), or they left public housing.\2\ As working
families left public housing, the need for operating subsidies
to make up lost income increased. The incentive to work was
further eroded when it became apparent that, because of the
combination of these laws, some families paid rents that
exceeded the value of their apartment.
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\2\ Under the Brooke amendment, assisted families were penalized
for working because, for every additional dollar they earned, 30 cents
would be taken away in the form of increased contributions toward rent.
This high marginal ``tax'' on earnings, when coupled with reduction or
loss of other income support benefits when families increase their
earnings from work, created severe disincentives to work. Residents are
effectively punished for leaving welfare and trying to better provide
for themselves. It is even possible that the Brooke amendment
encourages fraud by forcing residents to under report income if they
want to get ahead. Even worse, in the case of a low-income family
trying to stay together, the Brooke amendment can destroy families by
forcing a working parent out of the house because even a low-paying
temporary job increases a family's rent contribution. Family members
have to make the decision to either work and take the increase or leave
the family.
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Under this type of rent structure, some families paid no
rent at all because 30% of an income that is $0 is $0; in other
words, if a family living in public housing had no income, they
were not required to pay rent. Nevertheless, the PHA continued
to pay the utilities of the unit, as well as other normal
operating expenses such as insurance, maintenance, and security
which increased the need for operating subsidies. A concurrent
problem was that PHAs did not have the ability to project their
rental income because it fluctuated with the income levels of
the residents. This inability made it virtually impossible for
PHAs to estimate their future operating subsidy requirements or
to operate and manage their assets in a businesslike fashion.
Substantial evidence exists to show that continuing these
rental policies will damage public housing residents both
socially and economically. The Public Housing Authorities
Directors Association (PHADA) has stated repeatedly that an
AFDC recipient who heads a household and chooses to go to work
full time at a minimum wage job faces a rent increase that
contributes to an effective tax rate of anywhere from 117 to
135 percent. The Georgia Association of Housing Redevelopment
Authorities has stated that:
[D]ysfunctional Federal rent policy decisions have
created powerful disincentives to employment and upward
mobility. The result has transformed once thriving
public housing neighborhoods into welfare ghettos--its
residents robbed of opportunity and hope and its social
fabric rendered inadequate to cope with challenges like
drugs, crime and youth gangs.
It should be noted that working families, because rent is
tied to income, must pay higher rents than their apartments
would command in the private market. As a result, residents who
work to become educated or who advance economically leave the
developments for the private markets. These individuals provide
the best role models, and help others find jobs. These are the
very individuals that add to the social capital of a community.
H.R. 2406, passed in the 104th Congress, sought to reform
significantly the rental structure of public housing, focusing
on several factors: the value of the real estate, the ability
of the family to pay, and the program's goal to serve low-
income families. Additionally, H.R. 2406 scaled back Federal
control over admissions policies and preferences so that
localities can create rental systems that work in their unique
circumstances.
Concerns were raised during the 1996 debate on H.R. 2406
regarding the flexibility granted to PHAs to determine rent
levels. Resident groups were concerned that PHAs would increase
rents precipitously. While the Committee believed that much of
the public housing real estate would simply not support such
rent increases, H.R. 2 addresses these concerns and maintains
modified resident rent protections that are tied to the
resident's income levels. However, instead of mandating that a
resident pay 30% of their income as rent, a PHA can now charge
an amount that shall not exceed 30% of the income of the
resident.
While this modified 30% rule eliminates the requirement
that a PHA raise rents on any residents that earn more income,
the Committee feared that without the prior flexibility
afforded PHAs under H.R. 2406 to set flat rents across their
entire inventory, most PHAs in order to maximize revenues would
raise the rents to the 30% level. Because Federal funding is
limited in the public housing system, tying rental amounts to
resident income levels is likely to lead to rent increases upon
residents who earn more. While a PHA would not be required to
increase rents, it could increase rents. In the current fiscal
environment, the Committee believed that PHAs would increase
rents. Rent-income ratios, therefore, contain the potential for
continued disincentives to work and self-sufficiency.
In order to address this dilemma, residents under Section
225 of H.R. 2, the Family Choice of Rental Payment, are
afforded a choice annually on whether they would prefer to pay
rent based on their income (the modified 30% rule), or to pay a
flat-rent for their unit, determined by the PHA. Of course, a
resident would always pay the lower amount. However, the
resident would know that if he or she earned more money, they
would not be subject to rent increases beyond the flat rent. At
that point, they could ``switch over'' to the flat rent. In
addition, if residents were paying the flat rent amount,they
would not be subject to the burdensome income reviews that PHAs must
conduct annually to determine rental payments.
This rental structure essentially creates a requirement
that PHAs establish a ceiling rent for each unit. Granting
families the power of choice between income-based rent or the
flat rent is the enforcement mechanism. The rental option
places individual power into the hands of the resident, and
while not perfectly analogous, starts the process by which they
start thinking of real estate in similar market terms as the
private sector.
PHA industry advocates argued that such a structure would
be administratively burdensome. The Committee finds it
difficult to understand how a landlord (the PHA) would find as
administratively burdensome the simple task of assigning a
rental value to a unit. Every landlord, after all, asks for
rent. In the private sector, leases are commonly renewed
annually. At that time, the rent for the unit is discussed. As
stated previously, PHAs currently review annually each and
every resident family's income in order to determine an income-
based rent. That type of annual and intrusive review of a
resident's finances is certainly administratively burdensome.
This Committee finds extremely unpersuasive the argument
advanced by PHA groups that informing a resident of a unit's
flat rent and offering that resident a choice, at the same time
that income reviews are conducted, would be an administrative
burden. We find it more likely that PHAs, understandably, would
simply prefer to retain the freedom and flexibility to increase
rents.
While it is true that private sector landlords do not have
to provide their tenants with this rental choice, private
sector landlords also do not have to tie their rents to the
income levels of their tenants. The Committee believes the need
for this choice of rent structure arises from the very fact
that imposed upon the system existence are income-rent ratios.
In addition, inserting a requirement that PHAs determine a flat
rent for each unit in their inventory would begin the process
of having these agencies behave more like true property
managers by inserting a pricing mechanism into the public
housing system.
Like H.R. 2406, H.R. 2 requires that residents pay a
monthly minimum rental amount. H.R. 2's provisions call for a
PHA to set minimum rents no lower than $25 and no higher than
$50. Imposing a minimum rent has two purposes: to promote the
philosophy that public housing is not an entitlement but
temporary help to families during a period of trouble. Second,
by allowing a minimum rent, PHAs are able to craft an operating
budget that makes sense and, more importantly, is predictable--
a necessary component of any well-run business.
During markup of the Committee's bill, concerns were raised
that hardship exemptions were not mandated by the legislation
but were discretionary with the PHA. In particular, much debate
occurred on the issue of whether legal immigrants who were
losing benefits in accordance with provisions of the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
should be afforded a mandatory exemption from payment of the
minimum rent. Several members were sympathetic but believed
that issues involving the level of benefits to legal immigrants
should be discussed in a different forum by other committees of
Congress with jurisdiction and expertise. Many members
commented that allowing this mandatory hardship would be in
effect creating two classes within public housing, since
citizens who lost benefits under recent welfare reform
legislation would not receive a mandatory exemption. However,
it is the intent of this Committee that in granting
discretionary hardship exemptions for payment of minimum rent,
PHAs not discriminate against legal immigrants based solely on
their citizenship status. The same standards developed by a PHA
regarding the granting of hardship exemptions should be used
for all residents in the PHA's inventory.
The Committee heard substantial testimony from HUD
officials, public housing residents, and many public housing
industry associations about how desperately rent reform is
needed to encourage work and retain working families in public
housing. Moreover, concern was raised that current rental
policies force PHAs to depend heavily on Federal operating
subsidies to cover their expenses--a dependence that will only
increase. A serious problem is that average tenant incomes have
declined dramatically. In 1981, the median income of a tenant
in public housing was approximately 30 percent of the area
median. Today, the median income is approximately 16 percent.
This decline also has triggered the need for increased
operating subsidies from HUD to cover costs not paid for
through tenant rent contributions. According to GAO testimony
before the House Subcommittee on Human Resources and
Intergovernmental Relations on February 22, 1995, declining
tenant incomes--caused in part by the rent rules and the effect
they have on concentrating poor people in public housing--have
resulted in dramatic increases in operating subsidy needs over
the last five to six years. Currently, the need for Federal
operating subsidies for public housing is over $3 billion per
year and rising.
While there has been bipartisan consensus for some time on
the effect Federal rent rules have had and the need to change
them, the urgency to do so is much greater this year as
Congress and the Administration work toward a balanced budget.
Now, rent reform is a good idea not only because it will do
more to encourage public housing residents to work but also
because it will be critical to enable PHAs to attract somewhat
higher-income families, thereby decreasing dependence on
Federal subsidies.
C. Community work: requiring responsibility and mutuality of obligation
The Committee believes housing is a fundamental component
of bringing true opportunity to people and communities in need.
However, as set forth in the declaration of policy, the
Committee also recognizes that merely providing the means to
house low-income families is not a panacea that will pull every
family and individual up from poverty. For decades public
housing and Section 8 housing assistance sought to alleviate
housing problems; these programs operated in a vacuum with
little direct involvement assessing the social and economic
needs of assisted families. Assisted families received housing
assistance with little or no expectation that they attempt to
gain the education, job training, and work skills needed to
better themselves.\3\ H.R. 2 reemphasizes the need for housing
assistance to be provided as part of a well thought-out
approach by the PHA to enhance the economic and social well
being of assisted families and, where appropriate, help break
the shackles of poverty and dependence. In this regard, the
bill makes several fundamental changes to the way that current
housing law has promoted--or not promoted--self-sufficiency.
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\3\ This situation began to change in the late 1980s with two
limited HUD demonstration programs--Project Self-Sufficiency and
Operation Bootstrap--provided through HUD's Section 8 certificate and
voucher programs. These demonstrations provided housing assistance, but
as a condition of receiving such assistance, assisted families were
required to enroll in programs that fostered self-sufficiency and
economic independence. The FSS program, while well intentioned, was
limited in scope: program size was limited to the cumulative number of
incremental public housing and Section 8 certificate and vouchers
received after enactment. It did not encompass the nearly 3 million
families and individuals already receiving HUD rental housing
assistance. Additionally, the program was bound by a plethora of rules
and other guidance created by the underlying legislation and HUD
rulemakers.
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One fundamental shift promulgated by H.R. 2 is the belief
that it is appropriate to demand that recipients of Federal
assistance meet certain obligations in return for such
assistance. Among the beliefs inherent in this legislation are
that Federal housing assistance should be temporary assistance
allowing a family to advance economically toward self-
sufficiency, that there is a duty on a recipient of assistance
to pursue vigorously self-sufficiency efforts, and that each
recipient bears a responsibility to contribute something toward
the improvement of their community as a means of giving
something back for this assistance. The Committee strongly
believes in the principle that there exists a mutuality of
obligation between recipient of assistance and provider.
Section 105 of the bill embodies these principles. It
requires that each public housing resident set a target
graduation date for when they plan to graduate from Federal
assistance. The provision requires that the PHA work with the
resident to identify resources at the local level that may help
that resident in their self-sufficiency efforts. Additionally,
Section 105 requires that each adult member in a family
receiving assistance through public housing or through choice-
based rental housing, agree to contribute not less than 8 hours
of work per month within the community in which the family
resides. As an alternative, physically-able adults may agree
contractually to participate in an ongoing basis in a program
designed to promote economic self-sufficiency. Exemptions to
this requirement are provided for the elderly, students,
persons who are working or are in some sort of job training,
and those who have disabilities or are otherwise physically
impaired.
Concerns have been raised by some that this provision is
intended to be punitive. Quite the contrary, the Committee
believes that relegating many of our poor to a life of
continued dependency and not expecting or demanding positive
behavior is the cruelest approach to individuals. Benign
neglect has not improved the lives of people in Federally-
assisted housing.
David Kuo, Executive Director of The American Compass, a
charitable organization dedicated to raising money for and the
profile of small charities that serve the poor, testified
before the Subcommittee on Housing and Community Opportunity on
February 25, 1997, stating that the provisions of H.R. 2
comprise:
* * * a unique amalgamation of diverse principles of
what has come to be called ``effective compassion.''
History and experience both suggest that efforts and
programs which are at once challenging--making moral
demands of both givers and recipients--personal--where
people are engaged and involved in each others lives--
and spiritual--treating people as though they were more
than social security numbers with arms and legs--are
the most effective and efficient in meeting the needs
of the poor. This bill seems to embody those principles
and that is profoundly exciting.
This provision was modified during markup of H.R.2 to
ensure that some of the concerns raised regarding time limits
on public housing, duplication with local welfare reform
efforts, and exposure of PHAs to increased liability were
addressed. Specifically, the introduced version of H.R. 2 was
revised to add language to this provision ensuring that an
``employment relationship'' would not be deemed by a court to
have been established for purposes of State or local labor,
employment compensation, or civil service or other such laws.
In authorizing the community work requirement, the
Committee does not intend to adversely affect current workers
or opportunities for permanent employment. It is the
Committee's intent that in implementing community work
requirements, public housing authorities neither directly or
indirectly displace public housing employees or supplant jobs
at locations where community work requirements under Section
105 are fulfilled.
The revisions to Section 105 clarify that failure by a
resident to meet a target graduation date shall not be
considered an event giving rise to possible eviction. The
revised section exempts those individuals who are complying
with self-sufficiency requirements that are a result of or in
connection with local welfare reform efforts, and ensures
coordination with local welfare reform efforts. For example, if
a person is sanctioned by a local welfare agency for failure to
comply with any conditions of assistance, than that person
shall not be entitled to a decrease in their rent as a result
of their reduction in income. In other words, if a person that
is required by local welfare reform efforts to fulfill a work
requirement as a condition of receiving welfare payments
refuses to comply, and as a result of that failure to comply,
their benefits get reduced, that recipient cannot go to the PHA
and demand that their rent be reduced because they now have no
money to pay.
The Committee bill requires that PHAs, as part of their
local housing management plans, describe how the authority will
coordinate with State welfare agencies to ensure that public
housing residents and families assisted through choice-based
housing will be provided the access to resources to assist in
obtaining employment and achieving self-sufficiency. Under this
provision, PHAs are given the latitude to develop initiatives
and use innovative techniques to foster service delivery
without detailed direction from Congress or HUD.
The Committee would like to note that the idea that
individuals, in order to add to their community, should be
asked to perform certain duties is not a new one. This notion
of community building and of individuals working together in
positive ways is at the heart of our Nation. In many cases,
this notion has already taken hold in public housing
developments, where resident groups have become a force for
positive change. An example involves the Housing Authority of
the City of Milwaukee and how it has worked with its resident
groups at the Hillside Terrace development. Residents of this
development are asked to sign a Lease Addendum, which states
that as a condition of occupancy residents shall, among other
things: (1) attend at least 6 resident council meetings per
year, (2) enroll and actively participate in the neighborhood
block watch program in the micro neighborhood in which they
live, (3) have all minor children enrolled in at least one
supervised youth activity, (4) agree to clean and maintain the
common areas according to a schedule, and (5) complete at least
4 hours per month of volunteer service within the Hillside
Terrace community. Because of the active community involvement
and required participation on their block watch program, the
residents of Hillside Terrace have managed to effect a dramatic
reduction in the crime rate that once afflicted their
neighborhood.
The Committee believes that the goals of H. R. 2 of
increasing the community involvement of those residents who are
not employed or otherwise exempted from Section 105, so that
the community benefits, is a reasonable obligation to ask of
persons who are receiving a valuable and scarce public benefit.
For example, Habitat for Humanity, a volunteer organization
that builds homes for low-income person, requires each person
who has such a home built for them to agree to volunteer in
helping build a home for another. This striving toward
community is not a partisan matter, nor does the Committee
believe it should be. In fact, the Committee believes that the
Administration's efforts in support of the Americorp program
parallel to a great extent the goals of this legislation. The
Committee notes that the public housing reform legislation
submitted by Secretary Cuomo and introduced upon request by Mr.
Lazio and Mr. Kennedy also contains a requirement that each
adult member of a family residing in public or assisted housing
contribute not less than 8 hours per month in community service
activities.\4\
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\4\ The Public Housing Management Reform Act of 1997, H.R 1447,
Section 111.
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The Committee intends that PHAs, in complying with this
provision, have the ability and flexibility to partner with
resident councils and management corporations, local volunteer
groups, and other groups doing work in the community that
couldincorporate and use these residents. PHAs can enter into
agreements with Resident Management Corporations to conduct much of the
community service work. Activities such as participating in block watch
programs to help fight crime, as in Milwaukee's Hillside Terrace,
working as crosswalk guards to oversee children coming home from
school, and participating in graffiti clean-up projects--these are just
a few examples of what can be accomplished.
D. Promoting mixed-income developments: federal preferences
and income targeting
The Committee agrees with the belief that three of the key
structural consequences of the existing public housing program
are that (1) public housing concentrates the very poor, (2)
public housing itself is concentrated in high poverty
neighborhoods, and (3) Federal laws penalize public housing
tenants who work.\5\ The initial intent of the public housing
program was to help house the working poor. Yet the Committee
notes that over time, legislation and subsequent Federal
regulations have forced PHAs to admit a larger proportion of
very low-income persons while simultaneously creating
disincentives to work and self-sufficiency. These mandates
include instituting Federal preferences that require PHAs to
admit to public housing certain individuals (namely the poorest
of the poor) before low-income working families. Additionally,
very high income targeting requirements (provisions on the
percentage of public housing units that must only be used for
extremely low-income persons) are imposed on PHAs. Coupled with
the disincentives created by strict income-rent ratios (the
Brooke Amendment), these Federal mandates created a dynamic
where higher numbers of extremely low-income individuals were
admitted to public housing while working families were
discouraged from remaining. As the National Commission on
Severely Distressed Public Housing reported in 1992:
---------------------------------------------------------------------------
\5\ HUD Secretary Henry Cisneros testimony before the Senate
Committee on Banking, Housing, and Urban Affairs on September 28, 1995.
Federal statute-mandated preferences, income
standards, and rent-to-income ratios have effectively
excluded the `working poor' from public housing and
that authorities should be allowed to admit residents
based on a range of eligible income levels to promote a
higher level of economic activity within public housing
---------------------------------------------------------------------------
communities.
The overall effect of Federal policies has been to
warehouse low-income families and individuals in public
housing, without role models, networks, or adequate
opportunities to interact with the mainstream economy--in
essence creating a poverty trap. The Committee firmly believes
that we must not only discontinue these policies, but that they
should affirmatively and aggressively move toward reversing
their effects and establish policies which lead to the creation
of mixed-income communities.
Noted social policy researcher William Julius Wilson has
written on the necessity to create mixed-income communities. In
``The Truly Disadvantaged: The Inner City, the Underclass, and
Public Policy,'' he refers to the concept of mixed income as
creating a ``social buffer'' which is:
The presence of a sufficient number of working- and
middle-class professional families to absorb the shock
or cushion the effect of uneven economic growth and
periodic recessions on inner-city neighborhoods * * *
the removal of these [higher income] families made it
more difficult to sustain the basic institutions in the
inner city (including churches, stores, schools,
recreational facilities, etc.) in the face of prolonged
joblessness. And as the basic institutions declined,
the social organization of inner-city neighborhoods
(defined here to include a sense of community, positive
neighborhood identification, and explicit norms and
sanctions against aberrant behavior) likewise declined
* * * [.]
It is true that the presence of stable working- and
middle-class families in the ghetto provides mainstream
role models that reinforce family structures. But, in
the final analysis, a far more important effect is the
institutional stability that these families are able to
provide in their neighborhoods because of their greater
economic and educational resources, especially during
periods of an economic turndown--periods in which
joblessness in poor urban areas tends to substantially
increase.
The Committee bill moves Federal policy in this direction
by eliminating Federal preferences, changing the levels of
income targeting, and providing PHAs with added flexibility in
achieving these income targets.
Federal preference rules
Prior to the imposition of Federally-mandated preferences,
local PHAs and project owners, at their discretion, often
adopted admissions policies that gave preferences to certain
applicants. At first glance, it is easy to understand why PHAs
utilized preferences, particularly in the cases of natural
disasters or displacement resulting from Federal actions. In
1979, however, mandatory Federal preferences were enacted and
have expanded over the last decade to include applicants
involuntarily displaced, living in substandard housing, or
paying more than 50% of family income for rent. The result has
been that certain groups of people have moved to the top of
waiting lists, ahead of other local applicants for housing.\6\
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\6\ According to HUD's PD & R 1989 report, ``Characteristics of
HUD-Assisted Renters and Their Units in 1989, among families that
participated in assisted housing programs in 1989, public housing
residents had the lowest median household income. Only 35 percent of
public housing residents reported their primary source of income was
from wages/salaries. Meanwhile, almost 50 percent of residents reported
that they received their primary income from welfare, Supplemental
Security Income, and/or food stamps.
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Any rent reform should be coupled with the elimination of
Federal housing preferences, and H.R. 2 permanently eliminates
Federally-mandated preferences in favor of authorizing PHAs to
develop locally-based admission preferences aimed at producing
a mix of tenant incomes. During the Committee markup of H.R. 2,
instituting a preference for victims of domestic violence was
discussed as perhaps one preference which should be imposed by
the Federal government. A proposed amendment on this issue was
subsequently withdrawn when it became clear that there are many
other populations with particular characteristics that might be
as deserving of preferential treatment in obtaining shelter.
The Committee bill instead provides for a sense of the Congress
that PHAs should make some efforts to address this need at the
local level. However, the language in the Committee's bill
regarding this issue should not be construed as a Federal
mandate, but rather a matter of local preference.
Income targeting
One of the most difficult issues the Committee faced during
development of this public housing reform legislation involve
the issue of the level of income targeting appropriate for
targeting assistance in public housing. At odds were two very
worthwhile goals: (1) encouraging the creation of mixed-income
communities that offered healthy environments to residents, and
(2) ensuring that the housing needs of our poorest citizens be
addressed. A related and contentious issue was whether the
final income targeting levels would be applied to the PHA's
current profile inventory (``profile targeting'') or to new
entrants into the inventory (``new entrants targeting'').
Profile targeting allows a PHA to diversify its population more
quickly by admitting working class families; thereby moving
more quickly in the direction of creating mixed-income
communities. ``New entrants'' targeting directs public housing
resources at the poorest of the poor--ensuring that these
individuals also are given access to Federally-assisted housing
resources.
Under the targeting provisions of H.R. 2 as introduced
(which were based on profile targeting), 35% of public housing
units would be occupied by those at or below 30% of area median
income. For the choice-based program, the level would be 40%.
Concerns were raised with using profile targeting because most
PHAs already exceed these targeting levels. Consequently, many
PHAs would not be required to admit those families under 30% of
area median income for a significant period of time. Housing
assistance would possibly be denied to the poorest families
since PHAs would be moving to create mixed-income communities.
Simply applying these same targeting levels to new entrants,
however, was itself problematic because it would severely
restrict PHAs from creating mixed-income, healthy and stable
communities.
During markup of H.R. 2, Mr. Lazio, Chairman of the
Subcommittee on Housing and Community Opportunity, offered a
Manager's Amendment which provided a compromise on the income-
targeting issue that addressed both the Committee's desire to
create mixed-income communities while at the same time ensuring
that the poorest are not excluded from admittance to public
housing for what could have been several years. At the request
of Mr. Kennedy, Ranking Member of the Subcommittee on Housing
and Community Opportunity, this provision was removed from the
Manager's Amendment and offered as a freestanding amendment by
Mr. Lazio so that it could be debated in the context of income
targeting. Mr. Lazio's amendment to H.R. 2 addressed the
``profile targeting'' vs. ``new entrants'' issue by
establishing fungible targeting requirements between the public
housing and choice-based programs and applying targeting levels
to new entrants. This ``fungibility feature'' is added as a
subparagraph 3 to Section 222(c) of H.R. 2.
Under current law and under the provisions of H.R.2 as
introduced, distinct income targeting requirements are
established for the choice-based and public housing programs.
Mr. Lazio's amendment, by inserting a fungibility feature
between both programs, allows a PHA to offset the targeting
requirements on new entrants in its public housing stock with
increased voluntary targeting in the choice-based program. For
example, under H.R. 2 as amended by Mr. Lazio's fungibility
feature, a PHA that in a given year has 100 units of public
housing available for occupancy must offer 35 of those units
(35% being H.R. 2's public housing targeting levels) to
families with incomes at or below 30% of area median income.
The same PHA must offer 40% of its available choice-based
assistance to those at or below this level of income. However,
because these targeting requirements are now fungible, a PHA
can reduce the number of public housing units that it must make
available to those at or below 30% of area median income by
offering them choice based assistance that is additional to the
choice-based assistance (40%) targeted to this group. In the
example of the PHA with 100 units available for occupancy,
therefore, the PHA can meet its targeting requirements by
either (1) making 35 units available to families at or below
30% of area median income or (2) providing these 35 families
with choice-based assistance (above the level of targeting for
choice-based) and offering all 100 public housing units to
families above this level of income so as to promote mixed-
income developments.
Obviously, the PHA could meet its targeting levels using
combinations between these two options, but the important point
to note is that the same number of very poor families would
have received housing assistance under either scenario. Because
choice-based housing assistance is not as subject to the same
concerns regarding excessive overconcentration of poverty that
public housing assistance creates, PHAs should be given the
flexibility to offset public housing targeting with higher
levels of choice-based targeting. In this manner, a PHA that
needs to create mixed-income developments will have increased
flexibility to do so, as long as they provide additional
resources to the poorest in their choice-based housing
programs.
The Committee's bill eliminating Federal preferences and
establishing new fungible income targeting requirements would
go a long way toward allowing PHAs to create healthy and stable
communities. These communities provide role models and a
neighborhood infrastructure that enables residents to move into
employment and self-sufficiency. Unemployed families in mixed-
income developments can see working families as role models;
the presence of working families promotes the development of
needed economic and community institutions--schools, stores,
churches, that comprisethe social capital of a community.
Without the changes in Federal housing policy found in H.R. 2, the
Committee believes that another generation of our young citizens may be
trapped without exposure to the proper role models, or access to the
opportunities that may exist for them in their community's economic
mainstream.
E. Providing local flexibility and encouraging innovation
Flexibility and decontrol for PHAs
Historically, housing authorities have been responsible for
carrying out Federal public and assisted housing programs with
little interaction in broader community development activities.
Today, public housing policy is shaped and controlled almost
exclusively by the Federal government. PHAs do not control the
mix of tenants they admit because HUD regulations dictate
admission preferences. Moreover, the chasm between housing
authorities, the local government and the community has
increased the isolation of the public housing residents
themselves, and has sometimes hampered the ability of housing
authorities to obtain other much-needed services for public
housing residents. The Committee believes that the enactment of
welfare reform and budget reductions make it increasingly
necessary for local governments, the PHA, and community
residents to work together using available resources to make
public housing a viable part of the broader community.
In addition, the Committee believes that too many narrowly
focused programs with so many set-asides result in local
communities having great difficulty allocating Federal
resources to respond to specific needs. In turn, limited
Federal assistance for housing programs is diluted among too
many programs, with the programs that provide real housing
assistance receiving too little attention and funding. The HUD
Inspector General's report listed 92 programs whose
relationships to the Department's primary mission were
questionable. Further refinement of the Inspector General's
analysis by GAO showed that 27 programs from the IG's list of
92 did not provide direct housing assistance though they
received $1 billion in Federal funds during 1995.
The Committee believes Federal deregulation coupled with
increased accountability are the keys to transforming public
housing into a viable resource for low-income families into the
next century. Each year PHAs must submit volumes of data to HUD
so that HUD can monitor their financial and management
performance, despite the fact that the majority of PHAs are
adequate performers. Deregulation involves letting PHAs manage
their programs and report to HUD only when necessary.
Accountability requires PHAs to achieve results, managing their
housing inventory in a manner that is fiscally prudent and that
provides clean, safe and healthy homes.
The Committee envisions an administrative apparatus for
public housing that is leaner, simpler, and more sensible. HUD
will go from issuing subsidy or grant payments for many
programs--operating subsidies, modernization, drug elimination,
resident programs, demolition/disposition, development, and
resident initiatives, and others--to issuing just two forms of
block grants. Instead of reviewing each PHA's operating budget,
modernization plans, and other management-related paperwork
annually during the PHMAP process, HUD will put more focus on
PHAs who are found to be troubled and/or whose plans do not
adequately serve the jurisdictions low-income population. At
the same time, PHAs will be transformed from entities
administering a program shaped, funded, and regulated by the
Federal government, to entrepreneurial bodies acting as asset
managers in a way that meets generally accepted professional
standards.
Flexibility for small public housing authorities
The Committee approved an amendment that provides state
governments with the option to request that 50% of the capital
funds for all small PHAs within the state be directed to the
state for distribution to those PHAs. Too often, small PHAs are
frequently unable to develop reserves to meet the high costs of
significant and/or capital improvements. The Committee bill
establishes a procedure whereby these small PHAs may compete on
a local level for much needed capital improvement funds.
Specifically, a Governor may request, and HUD shall provide,
that one-half of the capital improvement allocations under the
public housing block grants for all small PHAs (defined as
those under 100 units) located in that state be sent directly
to the state. The Governor will than have the responsibility,
subject to applicable state appropriation laws, to distribute
all of the funds to the small PHAs, with priority given to
exceptional capital improvement needs of these small PHAs. The
Committee believes that this option will further empower local
elected officials to better meet the needs of residents of
small public housing authorities.
Flexibility for communities: The home rule flexible grant
option
The Committee believes that the Federal government should
rely more on the ingenuity and commitment of local elected and
community leaders in developing solutions to the problems faced
by our cities. The notion that Washington knows best in all
matters has led to many of the problems that have arisen with
our policies, such as Federal mandates and strict rent-income
ratios. A major goal of H.R. 2 is to establish into law a
mechanism that would encourage local communities to integrate
their resources and coordinate these resources at the local
level, in a concerted effort to meet the housing needs of their
citizens. A balance must be achieved between the need to grant
localities great flexibility while maintaining the Federal
commitment to housing and ensuring that taxpayer dollars are
used as effectively as possible for the purposes intended.
In order to accomplish these goals, the Committee's bill
establishes a voluntary mechanism for local jurisdictions to
develop their own housing programs as alternatives to the
Federal assisted housing programs, subject of course to HUD
approval. Title IV of H.R 2 establishes the Home Rule
Flexibility Grant Option, which requires that HUD provide local
government leaders the option to combine Federal housing
assistance funds into a flexible seamless grant for use in
meeting the housing needs of their communities. The funds must
be used by these communitiesfor purposes of providing housing
for low-income families. For jurisdictions wishing to participate,
there is required a submission to HUD of locally-developed proposals
for using current Federal funds in more effective and meaningful ways
to meet a community's needs. Upon HUD approval, local governments are
given the administrative flexibility from Federal rules and regulations
that is needed to make their programs work at the local level. In order
to encourage innovation, jurisdictions that create alternative programs
under Title IV are guaranteed the same level of funding that would have
been provided under their original categorical HUD programs.
As Mayor Goldsmith of Indianapolis said in his testimony
before the Subcommittee on Housing and Community Opportunity:
I think the Home Rule option provides an opportunity
for local government to respond to the triple
challenges of welfare reform, expiring HUD subsidies
and failed public housing. * * * Cities, PHAs, and the
Federal government must respond to these issues in a
holistic manner. Public housing does not exist in a
vacuum. Title [IV] provides an opportunity to use the
available resources to develop a program that responds
to local needs and conditions.\7\
\7\ Testimony before the Subcommittee on Housing and Community
Opportunity, March 11, 1997.
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The Committee would like to emphasize the voluntary and
cooperative approach envisioned by this legislation. Only local
leaders who truly want to institute what they consider
innovative or improved methods of solving their communities'
housing problems need apply. For those who are satisfied with
how Federal housing programs are working in their particular
communities, or who do not believe they would have the
capability to accomplish more than the Federal programs, the
Federal low-income housing programs will continue to provide
assistance to low-income persons in their communities with no
adverse funding consequences.
The Committee believes that accountability in programs will
be increased. Localities will enter performance agreement
contracts with HUD, not to exceed five years, with specific,
measurable goals. Focus is shifted from compliance with
burdensome Federal rules concerned with process, to the
achievement of mutually-agreed upon results.
Substantial additions and revisions were made to Title IV
in response to concerns raised by the PHA industry, and the
Committee believes these comments have added to and improved
the concept. Delineated in the statute are specific
requirements that the Secretary of HUD must review, prior to
the Secretary approving any local plan. Included among these
many protections are requirements that information be provided
by the local jurisdiction enabling the Secretary to determine
that (1) the jurisdiction has the requisite management and
administrative capacity to carry out the plan; (2) that the
jurisdiction's plan does not lead to excessive duplication of
administrative efforts; (3) that the plan contains information
demonstrating the functions and activities of the local public
housing agency; and (4) that these housing funds remain
separate from other city funds to ensure they are used for the
purposes intended.
Further provisions added to H.R. 2 provide that local
public housing authorities have adequate opportunity to comment
on alternative housing plans submitted to HUD. In addition,
where jurisdictional concerns regarding funding may arise, all
localities must consent to the plan. Because of their very
different situations, H.R.2 also allows the Secretary to
establish different requirements in the case of troubled PHAs.
The Committee believes that this is the type of government
structure that could lead to real reform and solutions to many
of the problems facing our communities. As Secretary Cuomo
stated, ``the object of our efforts must be the development of
self-sufficiency, not the perpetuation of programs.'' \8\ H.R.
2 establishes into law a mechanism for encouraging innovation
and fostering greater coordination of resources at the local
level. The Committee does not intend by this Title to supplant
PHAs or end the good work that well-run authorities accomplish.
In fact, clarification is provided that nothing in Title IV
requires that a city takeover or require a change in the legal
status of the PHA under its jurisdiction. Quite the contrary,
the Committee envisions local forces, including the PHA,
joining in an effort to accomplish the goals of moving people
from dependency to self-sufficiency, of creating more stable,
healthier communities, without the unnecessary and overly-
bureaucratic interference from agencies at the Federal level.
---------------------------------------------------------------------------
\8\ Testimony given at confirmation hearing before the Senate
Banking Committee, January 23, 1997.
---------------------------------------------------------------------------
In order to attack the severe isolation of many of public
housing developments and bring residents into the economic
mainstream of the greater communities, it is imperative that
local leaders take an interest in these developments rather
than treating them as Federal enclaves within their cities. The
Committee believes that this level of increased commitment to
developing innovative and interrelated programs--which could
involve a commitment by a jurisdiction of its own scarce
resources to attacking these problems, is unlikely to occur
unless we allow the flexibility to fashion and administer a
program that works at the local level. Based on testimony heard
and the experience of Members of this Committee, local
governments are hesitant to commit time or resources to these
various problems because of the belief that the Federal
government, through its uniform polices and through HUD, will
undermine their success.
The Committee believes that only when many cities and PHAs
experiment at the local level will we begin to develop workable
models for ending the problems of public housing. To this end,
Title IV has been drafted so as not to be overly prescriptive
so that innovation can occur. In developing procedures for
implementation of Title IV, it is theintent of this Committee
that HUD not be prescriptive so as to frustrate its overall intent. It
is the Committee's view that HUD should not only be in the role of
assuring that overall Federal goals are achieved, but also be in a
consultant role, helpful to localities in developing plans that address
their needs adequately.
F. Evaluation and monitoring of PHA performance
The Committee notes that HUD has in the past been unable to
properly evaluate the performance of program participants,
including PHAs. Much of this can be attributed to the
management problems endemic to HUD. According to Susan Gaffney,
Inspector General of HUD, in testimony given before the
Subcommittee on Housing and Community Opportunity on March 11,
1997:
HUD does not have a very good track record when it
comes to managing its programs. It has failed dismally
in some cases. In fact, in 1994, the General Accounting
Office (GAO) designated HUD as a ``high-risk'' area,
the first cabinet level agency to be so designated by
GAO. In subsequent testimony before Congress, GAO
stated that HUD programs would continue to be at high
risk in the foreseeable future.
In 1990, the Congress enacted the Public Housing Management
Assessment Program (PHMAP) so that HUD could measure PHA
performance in nine basic areas of their operations. The PHMAP
data, collected annually by HUD, was supposed to differentiate
between those PHAs that worked well (``standard'' or ``high''
performers) and those that needed significant management
improvements (``troubled'' PHAs). Those PHAs that HUD
determined to be troubled were subjected to closer scrutiny by
HUD, often receiving technical assistance and monitoring
intended to raise their scores to non-troubled status.
Developments with serious and extreme social and structural
problems were deemed ``severely distressed'' and became
eligible for HOPE VI grants of up to $50 million to
rehabilitate no more than 500 housing units.
Whether due to the inherent structure or design of PHMAP,
management failures on the part of HUD Headquarters and Field
staff in its execution when conducting evaluations of PHAs, or
perhaps due to both, this Committee is unconvinced that, in and
of itself, PHMAP is an adequate tool for monitoring PHAs.
The Committee believes the PHMAP system rewards failure.
The most significant attention, assistance, and additional
funding a PHA can get often comes only when its condition has
deteriorated to the point of being troubled or severely
distressed. For example, a PHA executive director testified
before this Committee that when his authority was designated as
a high performer under PHMAP, he received a letter of
commendation from the HUD Secretary, while a nearby, long-
troubled authority was awarded a $49 million HOPE VI grant to
rehabilitate its most distressed properties. Furthermore,
evidence exists that the PHMAP does not encourage PHAs to
engage in continuous improvement (that is, beyond what it takes
them to avoid the ``troubled'' designation). To make things
worse, high performing PHAs are subjected to the same rules,
regulations, paperwork, and other reporting requirements
applied to standard and poor performers.
PHMAP has also been criticized because its indicators do
not measure the actual quality of housing or the living
conditions provided to residents. The HUD Inspector General
testified before the Subcommittee on Housing and Community
Opportunity on March 11, 1997, that:
The problem with PHMAP is that it's an incomplete
system. It does not provide an all-inclusive and
encompassing view of a housing authority's operations,
and it's somewhat process-oriented. So what can happen
under PHMAP is that a housing authority can receive a
standard (or even high-performing) rating under PHMAP,
yet its tenants may be residing in less than decent or
deteriorating housing. The most important
responsibility of housing authorities is to ensure that
their residents are provided with safe and decent
living conditions; yet PHMAP fails to measure the
performance of housing authorities in this regard.
Furthermore, PHMAP has been criticized as being too
inflexible, leaving PHA executive directors feeling that it is
necessary to adapt external standards to their individual,
unique operating conditions. Though HUD continues to attempt to
revise the PHMAP indicators to more closely parallel private
sector real estate management practices, it is the fear of this
Committee that PHMAP will remain a tool with which HUD measures
compliance rather than performance or improvement.
H.R. 2406, the predecessor to H.R. 2, sought to change
dramatically the way oversight of public housing is conducted
by establishing a system of accreditation, similar in concept
to those in place for hospitals and universities, intended to
reward performance and to improve public housing management.
Accreditation would both eliminate the specific problems with
PHMAP and would, this Committee believed, served as a better
tool for fostering and providing incentives for continuous
improvement in public housing management. H.R. 2406 called for
the establishment of a Housing Foundation and Accreditation
Board, consisting of housing and real estate management
professionals who were to develop standards, evaluate PHA
performance, and provide sound technical assistance so that all
PHAs could work to improve their performance.
HUD expressed concerns that establishment of an
accreditation board would simply create another oversight
bureaucracy outside of HUD. In contrast to H.R. 2406, H.R.2
establishes an accreditation board but does not grant it powers
to begin pending completion of a study of alternative methods
for evaluating the performance of PHAs. The Committee would
hope that the National Academy of Public Administration conduct
the study. The accreditation board is established in advance of
the study for two reasons. First, the Committee believes that
some form of future accreditation will benefitthe public
housing program. An accreditation system will develop professional
standards, and provide an objective and a non-political assessment of
how well a PHA meets those standards. Second, the Committee would like
a structure in place to implement the findings of the study. If such
study concludes that an accreditation system would be unwise for the
public housing program, then Congress will be in a position to either
change the focus of the accreditation board in accordance with the
study's findings, or simply eliminate the Board.
The Committee bill seeks to transform HUD's oversight from
a bureaucratic, paperwork-heavy system focused on compliance
with HUD rules and regulations into one that identifies areas
where good performers can improve, and offers technical
assistance to foster continuous improvement among all PHAs.
Under the provisions of H.R. 2, HUD will set broad parameters
within which PHAs will operate, monitor PHAs to see that they
stay within those parameters, provide flexible block grants for
PHAs, and address aggressively the small minority of PHAs that
prove to be troubled or are at risk of becoming troubled. These
new approaches will give local programs the best chance of
achieving their goals. In addition, reassigning
responsibilities in this manner will reduce the demands on
HUD's bureaucracy. HUD will not be required to be heavily
involved in day-to-day details of PHA operations. By
emphasizing local development and management of operating
policies and consolidation of numerous subsidy programs into
two block grants for operating costs and capital costs, the
bill minimizes the need for Federal bureaucracy and its
administrative requirements.
In terms of increasing the power the Secretary has in
addressing PHAs that have clearly failed, the Committee's bill
(1) requires that HUD take over or replace the management of
chronically troubled housing authorities (those large
authorities that have been troubled for three or more
consecutive years) or petition to appoint a receiver; (2)
substantially broadens the authority of the Secretary to
require remedial or disciplinary actions against PHAs that are
or become troubled; and (3) gives the Secretary authority to
take action when HUD determines a PHA is at risk of becoming
troubled.
G. Opportunities for residents
Homeownership opportunities
One of the Committee's continued goals is to encourage
homeownership by as many American families as possible. Over
the past 12 years HUD has had extensive experience with public
housing homeownership. H.R. 2 builds on that experience and is
designed to encourage development of a wide variety of
approaches to the sale of public housing to residents. The
Committee's bill gives PHAs the authority to create and
implement resident homeownership programs to encourage public
housing families and families eligible for public housing to
become owners of their own homes by purchasing existing public
housing units and other housing projects available for purchase
by low-income families. H.R. 2 allows PHAs to sell public
housing authorities to non-profit intermediaries, for eventual
resale to low-income residents.
The Committee's belief is that creative solutions to
various issues associated with these resident sales can best be
developed at the local level, by people most familiar with the
particular situations. Therefore, the Committee bill sets forth
certain basic requirements which all applicants must meet; the
bill leaves most issues open to local solution. In particular,
each family is required to provide not less than 1 percent of
the purchase price from its own resources as a downpayment.
However, a family is permitted to use grant amounts, gifts from
relatives, contributions from private sources, and similar
amounts as downpayment amounts. The provision also allows the
authority to recapture funds from the resale of dwellings
bought by a purchaser with government assistance. Purchasers
who sell a dwelling after purchase are required to refund any
financial gain in excess of the original purchase price they
received from the sale of the property. After five years,
homeowners must provide a refund for the assistance they
received from the local authority.
Importantly, H.R. 2 provides a new avenue for helping low-
income families achieve homeownership--allowing the use of
choice-based assistance in homeownership programs. The
Committee believes that it is simply wise policy to allow a
person receiving an amount of Federal money to use for rent, to
use that same amount as a component of a mortgage in a properly
structured homeownership program.
The hope and intent of this Committee that PHAs will use
the flexibility provided by this bill to create diverse
homeownership programs designed to allow families to have a
stake in their neighborhoods. Lease-purchase programs involving
both public housing and choice-based housing, partnerships with
local groups involved in homeownership, and other such
proactive solutions are strongly encouraged.
Resident Opportunity Program
To further emphasize the goal of creating opportunities for
residents, the Committee bill includes a Resident Opportunity
Program. This provision builds upon the current Resident
Management Technical Assistance and Training Program that funds
resident councils, organizing efforts among public housing
residents, and Resident Management Councils. As a means of
improving existing living conditions in public housing
developments, this program provides increased flexibility for
developments that are managed by residents by permitting the
retention of, and use for, certain purposes, any revenues
exceeding operating and project costs. The Committee intends
that residents should be rewarded for their successes by
further investing excess operating income for project purposes,
including job creation.
The program is intended to build the capacity of public
housing residents to participate in their own self-sufficiency
and economic improvement through the organization of residents
and resident councils, and is meant to broaden opportunities
for public housing residents to teach job skills and widen
employment opportunities, including their own small businesses.
However, the Committee is concerned with the potential
waste of scarce public housing resources on questionable
resident training activities and travel expenditures funded
through HUD's Tenant Opportunity Program (TOP).\9\
Nevertheless, the Committee is aware of numerous successful
resident-managed public housing developments throughout the
country. Recognizing these successes, the Committee maintains
the Resident Opportunity Program as a separate program for
fiscal year 1998. However, it is the Committee's intent that
after fiscal year 1998, the Resident Opportunity Program become
integrated with the public housing block grant authorized in
Section 201. The Committee notes that Section 203 includes
resident management activities as an eligible purpose of block
grant funds. The program is authorized at $15 million for
fiscal year 1998.
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\9\ On November 9, 1995, the House Subcommittee on Human Resources
and Intergovernmental Relations examined evidence that HUD approved TOP
funds for a public housing tenant convention in a Puerto Rico resort
hotel and casino billed by its sponsors as ``a vacation that will be
unforgettable.'' Evidence exists that several programs were clearly
political in nature. The TOP Notice of Funding Availability clearly
states in the list of eligible and ineligible activities that the TOP
grant may not be used for entertainment or lobbying purposes.
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H. Troubled public housing and severely distressed developments
Troubled public housing authorities, especially large
authorities, have persistently plagued HUD's public housing
program. The less than 70 truly poor performing PHAs give the
rest of the 3,400 housing authorities a bad reputation. Eleven
of the largest housing authorities (those with 1,250 units or
more) operate most of the distressed, dilapidated, and boarded
up housing stock. In fact, these 11 troubled housing
authorities make up approximately 200,000 units of public
housing, or almost 15% of the entire public housing inventory.
These 11 troubled housing authorities, many have been troubled
since 1979 when HUD began keeping track of such performance.
Because of the excessive cost and poor housing services
associated with troubled authorities, the Committee and the
Administration believe it is crucial to develop a strategy to
address effectively incorrigible PHAs.
A condition that contributes significantly to a troubled
authority's problems is a high vacancy rate. Although public
housing vacancies nationwide average approximately 8 percent
(approximately 100,000 units), the GAO reported that 27 large
housing authorities account for about half of the vacant units,
implying that vacancies tend to be concentrated in relatively
few places. Furthermore, vacancies generally are not evenly
distributed within specific housing authorities. GAO reported
that at 41 housing authorities managing 70 developments with
vacancy rates exceeding 70 percent, 57 of the 70 developments
contained almost 1200 buildings that were completely vacant.
However, if these or other housing authorities try to
demolish or sell off any of their vacant or uninhabitable
buildings, without permanent public housing reform, under
current law they must replace the housing units on a one-for-
one basis with new or other viable housing or provide
equivalent rental assistance to the tenants (this requirement
has been temporarily repealed on a year-to-year basis through
appropriations measures since the 1995 rescission bill). Lack
of money is not the only problem. When a PHA plans to demolish
or dispose of deteriorated public housing, Federal regulations
require HUD approval of both the PHAs application for
demolition or disposition and its plan to replace the housing.
Extensive documentation and plans must be included with any
such application. The approval process is lengthy and in the
past has sometimes taken years.
Coupled with the one-for-one replacement rule are site and
neighborhood standards, designed to ensure that minority and
low-income families are provided with housing opportunities
outside of housing market areas to which they have been
traditionally limited. According to HUD regulations, proposed
sites where public housing developments will be constructed or
rehabilitated must meet strict standards. These standards
present huge barriers to providing decent housing. PHAs in
cities with large proportions of minority groups are
effectively precluded from building new housing. PHAs in other
cities cannot build because of the high cost of acquiring land
that meets the standards and does not pose undue difficulties
in reaching agreements with existing community groups about
locating assisted persons in their neighborhoods.
In combination, these two provisions contribute to the
continuation of severely distressed sites as well as to
financial waste.
The U.S. is losing millions of dollars by subsidizing
vacant units in large public housing authorities
because the buildings can't legally be torn down. In
Philadelphia, * * * the U.S. has paid $7.9 million to
maintain largely vacant units in a complex of eight
buildings. In another project in that city, the debate
over what to do about two vacant high-rises containing
448 units has lasted for 18 years. In Cleveland, the
U.S. has paid $47 million in the last seven years to
maintain vacant units, which the housing authority was
losing $2.4 million a year that would have come from
renting the units * * * \10\
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\10\ The Wall Street Journal, p. A2, March 22, 1994.
Section 18 of the USHA of 1937, better known as the one-for-one
replacement rule is an underlying cause of excessive vacancy
rates. As GAO has reported, significant problems of retaining
obsolete public housing are excessive operating costs and the
crime and vandalism associated with vacant public housing. To
substantiate these findings, HUD's Inspector General has
concluded that the one-for-one requirement, along with national
site and neighborhood standards that purports to protect
against over-concentrations of low-income people, is
responsible for the increase in vacancy rates from 5.8 percent
in 1985 to today's eight percent.
Of even greater concern to the Committee, however, are the
number of families that have no choice but to live under these
deplorable conditions. It is inconceivable that the Federal
government subsidize properties that are nothing more than
slums. However, the costs to rehabilitate these properties to a
point where they are safe and healthy are astronomical. In
fact, a study conducted for the National Commission on Severely
Distressed Public Housing stated that the backlog of
modernization needs was as high as $28 billion. Some of this
need can be eliminated simply by demolishing and/or selling
obsolete developments.
Therefore, the Committee's bill eliminates the one-for-one
replacement statute and allows PHAs to rebuild housing on
existing public housing sites. Consequently, Federal funds are
saved because housing authorities can begin to use finite
modernization dollars to maintain viable buildings and systems
rather than propping up hundreds of obsolete buildings. To the
extent that high vacancies have a negative effect on the
performance of many large urban housing authorities, these
authorities are no longer required to maintain developments
that are not cost-effective and, in fact, are draining the
authorities of precious resources.
Demolition, however, cannot be accomplished
indiscriminately. PHAs must prove the demolition is in
accordance with the local housing management plan for the
authority, discussed in Section 106 of the bill. Capricious
demolition, demolition for purposes of gentrification, or
demolition otherwise inconsistent with a housing authority's
long-range goals, is considered unlawful under this bill.
Second, a PHA may demolish or dispose of public housing
only if it satisfies one of a number of criteria which, if met,
ensures that the action is necessary either to protect the
residents' well-being and interests, conserve the housing
authority's resources, or rid the authority of housing that is
obsolete or cannot be rehabilitated cost-effectively.
These changes, in conjunction with other regulatory relief,
will enable the industry to resolve the problems of funding,
occupancy, maintenance, and crime before they strangle the
provision of housing assistance. Housing authorities must have
the authority to eliminate their most costly and distressed
stock.
Finally, the Federal government must be provided an
effective means of identifying chronically poor performers and
denying them funding if they cannot improve their performance.
In its Reinvention Blueprint, HUD requested significant new
powers to handle chronically troubled PHAs. While H. R. 2
authorizes these powers, the legislation also provides
significant new sanctions that HUD can invoke against those
authorities that are not managing their properties
appropriately. One of the most significant of these sanctions
is the provision of authority to withhold Community Development
Block Grant (CDBG) funds from a city government or entitlement
community if that entity has substantially contributed to the
troubled status of the authority.
By the clear language of the statute, the Committee does
not expect this sanction to be used indiscriminately nor is it
meant to subsidize the level of a PHAs block grant. However,
the Committee does intend that the Secretary consider wielding,
and in appropriate cases imposing, this sanction against those
entities that contribute substantially to the troubled status
of a housing authority. The Committee does intend that it be
clear that it is the unit of general local government that is
to be the subject of the sanction, and not the community
itself. The Committee intends that in cases where the Secretary
imposes the sanction, CDBG funds are redirected through an
alternative entity, such as a local non-profit organization or
other similar agency, for the administration of funds to the
community. Also, this provision is not intended to affect
communities which receive CDBG funds through the county in
which they are located if those communities have not
contributed to the conditions at any troubled housing
authorities in the county. The Secretary shall ensure that a
process exists whereby communities located in a county subject
to CDBG sanctions under this section may petition for continued
use of CDBG funds.
Obviously, the Secretary must weigh the circumstances of
each case before levying this sanction and using it to penalize
bad actors. For example, evidence has been presented to this
Committee that some localities did not provide adequate city
services to public housing developments. Other evidence shows
that promised sites did not materialize because of
disagreements between the city and the PHA. These actions
exacerbate the problems of a troubled authority and are
unacceptable.
Finally, H. R. 2 mandates that HUD either ``takeover'' or
contract out the management of any housing authority that has
been troubled for three years or more. The Committee is pleased
that recently HUD has been far more aggressive in beginning to
overhaul those PHAs that are systemically troubled.
Historically, however, HUD has made limited use of the
authority it has to take action against troubled authorities.
H. R. 2 ensures that HUD act quickly to takeover bad managers.
The legislation also allows HUD to expand the use of
private and resident managers, to breakup and decentralize
large troubled authorities, and to consolidate small, rural
authorities. HUD may utilize competitive bidding in troubled
PHAs to lower the costs of management and to stimulate an
environment of competition. All of these tools are provided
with the expectation that HUD use them aggressively.
The Committee chose to retain a severely distressed public
housing program for two more years, that is similar to the HOPE
VI Urban Revitalization Demonstration (URD) program. In its
1994 Reinvention Blueprint, HUD acknowledged that these
properties contribute to the physical decline of and
disinvestment in the surrounding neighborhoods and suggested
major reforms to the URD program, including more widespread use
of vouchers and neighborhood planning.
Section 262 affirms this concern, and provides housing
authorities with far more flexibility and latitude to utilize
these grants creatively. Housing authorities areencouraged to
identify severely distressed properties and demolish them as quickly as
possible. Displaced families may be provided with voucher assistance
and the housing authority may choose whether to rebuild the property by
entering into new partnerships with the private sector and local
governments. If the choice is to rebuild, PHAs must show their
commitment to the redevelopment by matching the revitalization grant
from HUD with an amount of no less than 5%. It is the hope of this
Committee, that these reforms to the URD program will produce a healthy
urban landscape and promote economic opportunities.
I. Deterring crime in public housing
Added protection against drug and alcohol abusers
Since the 1980s, public housing has become the ``housing of
last resort,'' housing the nation's very poor along with the
disenfranchised. Most residents are law-abiding citizens
attempting to live peacefully and seeking a healthy community
life. However, increasing crime has made it extremely difficult
for families in public housing to create a normal environment
within which to raise their children or to live peacefully on
fixed incomes. Although exact statistics are not available,
according to HUD's Office of Public and Indian Housing, in many
communities, public housing accounts for less than five or ten
percent of the local population, but more than twice the share
of the locality's crime occurs in and around public housing.
Residents of public housing, whether they are young families or
elderly people, find themselves victims of crimes that are
frequently committed by persons abusing alcohol or drugs. Crime
persists as our nation's dominant fear, and because of the
increase in the crime rate in public housing, due to increases
in alcohol and drug abuse, particularly crack cocaine abuse,
the Committee's bill curtails the admission of drug and alcohol
abusers to public housing and choice-based housing.
While crime in the most severely distressed developments
makes the most lurid news, no public housing development is
immune from the problems arising from alcohol and drug abuse.
According to a 1988 NAHRO survey, 55 percent of public housing
authorities said that they had a drug or alcohol problem. The
problem was especially prevalent among the largest
authorities--77 percent reported drug and alcohol problems.
Forty-five percent of small PHAs reported such problems.
Although this survey has not been updated, the Committee
believes conditions have worsened since 1988. Public housing
residents, who themselves are in need of social and support
services, tend to be more vulnerable to the activities of
gangs, drug dealers, and other negative elements.
Clearly, drug and alcohol-related crime has not only a
profound destabilizing influence on the residents, but it also
takes a toll on public housing property. Substance abusers
violate the rights of other persons, intimidate them, damage
property, and create the need for costly maintenance. In turn,
deteriorated and dilapidated property attracts substance
abusers, who occupy the property or operate their drug business
from it. This behavior exacts an extraordinary physical cost in
terms of increases in permanently abandoned projects,
additional personnel, and greatly expanded investment in
substance abuse counseling and education. Caught within this
web are the victims--the public housing residents.
The cycle of substance abuse, crime, and property
deterioration has escalated dramatically for more than a
decade. A 1982 President's Commission on Housing Report does
not even mention alcoholism, drug abuse, or crime in its
chapter dealing with problems in public housing. Six years
later in 1988, the Congress passed the Public Housing Drug
Elimination Act as part of the Anti-Drug Abuse Act of 1988
(P.L. 100-690). This act authorized PHAs to evict tenants
involved, either directly or indirectly, in any drug-related
criminal activity on or near the public housing premises. A
year later, the Congress established the National Commission on
Severely Distressed Public Housing. In its 1992 report, the
National Commission recognized that one of the defining
characteristics of severely distressed public housing was
serious crime and that crime was more often than not
accompanied by drug and alcohol abuse.
The Committee is concerned that these measures, while well-
intentioned, have not been sufficient to address the crime in
public housing. Therefore, provisions of this legislation make
it easier for PHAs to evict persons with drug or alcohol-
related problems. Certain clarifying changes were made to the
language at the request of Mr. Watt, but the intent of Section
642 remains to protect the majority of public housing
residents--those law-abiding families and individuals seeking
affordable homes that are safe, clean, and healthy--from being
subjected to substance abusers.
This Committee bill allows PHAs to establish standards for
occupancy in both the public housing and choice-based rental
assistance programs that prohibit admission by any person that
is either currently illegally using a controlled substance or
whose history of drug or alcohol abuse provides reasonable
cause for the authority to believe that occupancy by such
person may interfere with the health, safety, or right to
peaceful habitation by other residents. With this provision,
the Committee also recognizes that the successfully
rehabilitated individual, if eligible, also has a right to
residency and may obtain admission to public housing, given
proof of successful participation or completion of a supervised
drug or alcohol rehabilitation program.
Because PHAs are not experts in the epidemiology of
treatment of substance abuse, the Committee recommends they
consult with community experts, including but not limited to
public health officials, treatment specialists, social/welfare
workers, mental health professionals, and safety personnel in
developing their occupancy standards. These standards form the
basis for determining how and when individuals can be excluded
from occupancy based on their history of abuse. It is not the
intent of the Committee to punish individuals with successful
treatment histories; therefore, the standards should provide
for consideration of appropriate treatment protocols, social
and family history as well as duration of use.
Designated housing--balancing the need of elderly and
disabled
Section 227 of this legislation authorizes designated
housing for elderly and disabled families. PHAs may designate
specific developments or portions of developments for occupancy
by (a) elderly families only, (b) disabled families only, or
(c) elderly and disabled families.\11\
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\11\ This provision is virtually identical to Section 10 of Public
Law 104-120, ``Housing Opportunity Program Extension Act of 1996''
except that H.R. 2 clarifies that a PHA must establish that the
designation of the project is necessary to either achieve the housing
goals for the jurisdiction under the comprehensive housing
affordability strategy (CHAS), or meet the housing needs of the low-
income population of the jurisdiction. Current law has been interpreted
to require that both conditions must be met in order for designation to
occur.
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Mixing disabled and elderly residents in the same living
space has created numerous problems. Many elderly residents who
anticipated a quiet, all-elderly environment are frightened and
disturbed by younger residents who tend to have different
lifestyles. Conversely, young disabled people in these elderly
developments complain that their elderly neighbors treat them
with suspicion and resentment.
In 1992, the GAO reported that 31 percent of non-elderly
persons with mental disabilities caused moderate or serious
problems to their elderly neighbors, including threatening them
and having disruptive visitors. GAO also found that alcohol
abuse among the non-elderly disabled people living in elderly
developments was a significant problem for 20 percent of all
PHAs and 40 percent of all large PHAs.
In response to these findings and other complaints, the
Congress rewrote the laws regarding mixed populations in Title
VI of the Housing and Community Development Act of 1992 (HCDA
of 1992) [P.L. 102-550]. Under Title VI, PHAs and Federally
assisted apartment owners could designate certain buildings as
``elderly only'' if the owners implemented a plan to provide
alternative housing for those non-elderly residents who were
eligible for Federally assisted housing and met the eligibility
requirements of the Americans With Disabilities Act. That
legislation, however, was very clear that current non-elderly
residents could not be evicted without cause and that neither
PHAs nor landlords could leave units vacant for excessive
periods of time while seeking eligible elderly tenants. Title
VI further provided that if an elderly tenant could not be
found for a vacant unit after a predetermined period of time,
then the unit must be filled with the next eligible disabled
person on the waiting list.
According to the HUD Inspector General, both the statute
and HUD's rules implementing Title VI have proven overly
burdensome and complicated for PHAs attempting to receive
``elderly only'' designations. The Committee believes that
Title VI of the HCDA of 1992 is flawed, and proposes that
Section 227 rectify that flaw in several important ways. First,
Section 227 grants PHAs greater flexibility in designating
their developments ``elderly-only'', thereby allowing their
elderly population to live in security and with less fear of
crime or other dangers. Second, the provision permits PHAs to
fill their designated elderly-only developments with near-
elderly families rather than younger people with disabilities,
if there are insufficient numbers of elderly families to fill
all the units. Finally, the statute prohibits occupancy in
designated units by individuals who currently illegally use a
controlled substance or who have a history of such use so that
the PHA would believe that such a person may interfere with the
health, safety, and right to peaceful enjoyment of the premises
by other residents. In recognition of the desirability in many
cases of providing separate housing for the elderly without
diminishing the housing resources available to younger disabled
people, subsection 306(b) authorizes funding for FY98 for
housing authorities to provide housing for the disabled in
cases where needed because the authority has designated
buildings once available to the disabled as elderly only.
Availability of criminal records
The Committee is keenly aware of the concerns expressed by
both PHAs and residents that public housing must provide safe
and secure living environments. Therefore, Section 644 preempts
State and local law and overrides other Federal laws to enable
PHAs to obtain information on the criminal records of
applicants for, and residents of, public housing for the
purpose of applicant screening, lease enforcement, and
eviction. However, access to criminal records for persons under
the age of eighteen is prohibited. In addition, another
valuable Federal data base--the National Crime Information
Center (NCIC)--may be accessed by PHAs. Housing authorities are
authorized to pay a reasonable fee for this information. Mr.
Castle amended H.R. 2 to ensure that PHAs would have access to
state criminal records held by a state registration agency
pursuant to the provisions of title XVII of the Violent Crime
Control and law Enforcement Act of 1994.
Current regulations (24 CFR Part 860) direct PHAs to avoid
admitting families that have the potential to damage the social
or financial stability of developments. Police departments are
specifically cited in the regulations as sources of information
PHAs may contact. Similarly, in 24 CFR Part 966, PHAs are
directed to have lease provisions that make criminal activity
grounds for eviction.
The Department has advised the Committee that these
requirements are difficult to carry out. The problem is that in
some localities the police departments are either uncooperative
or are barred by State law and local ordinances from providing
criminal records. In the State of California, for example, the
only persons with access to police records are police
departments and then only for law enforcement purposes.
The Committee is also mindful of the need to protect
residents and applicants from the unfair actions of PHAs.
Therefore, provisions pertaining to confidentiality, penalties,
and civil action against the administering agency are included.
Importantly, theprovision also ensures the confidentiality of
the identity of victims of domestic violence who reside in public
housing.
Operation safe home
The Committee commends HUD and the Office of Inspector
General (OIG) for the success of the Operation Safe Home
Program in combating violent crime in public and assisted
housing. Section 273 authorizes $20 million for Operation Safe
Home from funds made available for COMPAC for fiscal years 1998
and 1999. The funds are to be used for law enforcement purposes
to combat violent crime on or near the premises of public and
Federally-assisted housing. The Committee bill also clarifies
that of the amounts made available for choice-based housing
assistance under Title III, the Secretary, in consultation with
the Inspector General, shall make such sums as may be necessary
to provide housing assistance pursuant to the relocation of
witnesses in connection with efforts to combat crime in public
and assisted housing as requested by law enforcement and
prosecuting agencies.
The Operation Safe Home strategy for combating crime in
public and assisted housing entails: collaboration by the OIG
and Federal, state, and local law enforcement agencies in law
enforcement efforts targeted at public and assisted housing;
collaboration among the OIG, law enforcement agencies, public/
assisted housing managers, and public/assisted housing
residents in devising methods to prevent violent crime; and HUD
programmatic initiatives specifically geared to prevent violent
crime in public and assisted housing.
Under the aegis of Operation Safe Home, OIG Special Agents
were assigned to 129 law enforcement task forces working in
operation in public housing throughout the country as of
September 30, 1995. Operation Safe Home was a catalyst for
formation of 99 of the 129 task forces. As of 1996, Operation
Safe Home task force operations resulted in 6,826 persons
arrested for crimes involving drugs and weapons, as well as
confiscation of 558 weapons (including 100 assault weapons and
shotguns), $1,620,158 in cash, and drugs having an estimated
street value of at least $2,854,172. Additionally, over 730
search warrants have been served.
The HUD OIG also coordinates a witness relocation program
in conjunction with efforts to curb crime in public and
assisted housing. The HUD OIG has been instrumental in
relocating 168 witnesses/families who were residents of public
housing or eligible applicants and feared reprisals from
criminals as a result of their testimony or other assistance
they provided to law enforcement officials. Over 100 of those
families were relocated during the fiscal year ending September
30, 1995.
HUD's witness relocation effort is distinct from any
witness ``protection'' activity administered by the U.S.
Marshals Service. The program is limited to relocating the
witness-family from the public housing in which they were
threatened to other suitable HUD-supported housing. Any
physical protection of the witness remains the responsibility
of the primary Federal, state or local law enforcement agency
investigating the case. Lastly, OIG personnel have worked with
local HUD program staff and local housing staffs to improve the
safety and security of persons living in public and assisted
housing.
Finally, the Committee bill also makes amendments to the
Public and Assisted Housing Drug Elimination Act of 1990 by
authorizing for FY 1998 through 2002 the Community Partnerships
Against Crime Act of 1995. The Committee intends that this
authorization is transitional allowing sufficient time for
these activities to be integrated into the public housing block
grant. The Committee believes that the Department, PHAs, and
assisted housing managers utilize the experiences from the
Operation Safe Home Program in combating violent crime in
public and assisted housing.
J. More efficient rental assistance program (section 8)
Encouraging the private sector to enter the program
The Section 8 certificate and voucher programs are
generally regarded as successful. A 1994 study conducted by Abt
Associates for HUD concluded that 87 percent of sampled
enrollees found housing with their Section 8 assistance.\12\
Despite this success, however, the program has been criticized
for rules that unnecessarily discourage housing owners from
participating. For example, the following facts are taken from
a report prepared by Abt Associates for the National Multi
Housing Council/National Apartment Association:\13\
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\12\ ``Section 8 Rental Voucher and Rental Certificate Utilization
Study: Final Report,'' Prepared by Abt Associates, Inc. for HUD (Oct.
1994). ``Final Report on Recommendations on Ways to Make the Section 8
Program More Acceptable in the Private Rental Market,'' Report prepared
by Abt Associates, Inc., for the National Multi-Housing Council/
National Apartment Association (March 1994).
\13\ ``Final Report on Recommendations on Ways to Make the Section
8 Program More Acceptable in the Private Rental Market,'' Report
prepared by Abt Associates, Inc., for the National Multi-Housing
Council/National Apartment Association (March 1994).
Under the ``take one, take all'' provision, owners
that accepted one assisted household could not refuse
to rent to other tenants solely because they received
Section 8 assistance.
The portion of the security deposit paid by the
assisted family was one month's contribution toward
rent (30% of adjusted income) which created little
incentive on the part of the renter to maintain the
unit.\14\ In addition, cumbersome procedures for the
reimbursement of damages to the unit sometimes required
owners to hold the unit vacant for extended periods of
time, causing further loss of rental income.
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\14\ Under Section 8 Conforming Rule of Summer 1995, HUD now allows
security deposits to be collected in conformance with local practice.
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Owners could not get rid of troublesome tenants by
refusing to renew their leases--an otherwise common
practice in the private market. Rather, owners had to
go through time-consuming eviction procedures.
Accordingly, the Committee bill changes the program in
response to the findings of the Abt Associates report, and the
``take one, take-all'' provision is repealed. In addition, the
``endless lease'' provisions are repealed. Section 324 of H.R.
2 requires that leases be set forth in standard terms which are
typically used in the local housing market area by the owner
and apply generally to tenants who are not assisted through the
Section 8 program.
The Committee believes that these and other revisions
contained in H.R. 2 will eliminate some of the most egregious
conditions that have caused owner dissatisfaction with choice-
based housing, while retaining needed tenant projection.
Furthermore, these changes will encourage other apartment
owners to participate in the program, thereby expanding the
universe of affordable housing for low-income families.
Eliminating over-regulation
In addition to the changes discussed above, H.R. 2 contains
other provisions to reduce over-regulation. For example, the
Committee's bill eliminates the requirement that participating
housing owners notify the local housing authority 90 days
before terminating the lease of an assisted family. This
provision may have been necessary when contract terms were for
twenty years. However, contracts are now renewed annually, and
this provision only serves to frighten residents of these
developments.
The bill also streamlines inspection procedures. Under
current program rules, before a low-income family with Section
8 assistance can occupy subsidized housing, the unit must be
inspected by the local PHA to determine that it meets HUD's
housing quality standards. If repairs are needed, the PHA must
reinspect the unit. These inspections take time and penalize
the low-income family and the housing owner. Under the
Committee's bill, a PHA must inspect the unit within 15 days of
a submission of a request to the PHA by the resident or owner.
The performance of the PHA in meeting the 15-day deadline is to
be considered in assessing the performance of the agency.
Finally, the Committee's bill merges the current
certificate and housing voucher programs into one choice-based
housing program. Under current law, assisted households are
treated differently depending on the form of assistance they
receive, and housing owners are subject to different
requirements for two families if one family has a certificate
and the other has a housing voucher. These differences are
eliminated by merging the two programs. Although HUD has
already acted to conform the requirements of the two programs
in its July 1995 rulemaking the provisions in theCommittee bill
are necessary to complete the reform. Previous attempts to merge the
certificate and voucher program have enjoyed the universal support by
this Committee, owners and housing agencies, HUD, and GAO.
Choice, portability, and low-income concentration
Portability enables Section 8 recipients to seek housing
wherever they wish, without regard to political jurisdictional
boundaries or PHA boundaries, thereby promoting wider housing
choice. At the same time, however, the Committee is aware of
the bookkeeping and administrative burdens produced by
portability.
Under current law, PHAs that lose Section 8 renters to
another jurisdiction may make assistance payments to support
that family in the other jurisdiction if the receiving PHA
chooses not to absorb the family into its own program. If the
family has moved to a higher rent area, the initial PHA must
make up the difference in the rental cost at the expense of its
own program. In addition, this billing arrangement generates a
billing and accounting paperwork burden for both the losing and
the receiving PHA.
Because of reported abuses, in 1992 Congress enacted
legislation that somewhat limits portability of assistance. At
that time, it was reported that families were ``wait-list
shopping;'' placing their names on waiting lists for Section 8
assistance in areas with short or no waiting lists and
obtaining certificates or vouchers from a local PHA, with no
intention of living in the PHA's jurisdiction. After receiving
assistance, the families immediately leased units in some other
area, such as one with a long Section 8 waiting list. This
``wait-list shopping'' adversely impacted the losing PHA and
created unneeded administrative burdens for both the losing and
the receiving PHA.
The Committee's bill provides flexibility for losing and
gaining PHAs to deal with portability issues. Assistance is
portable on a national scale. A PHA may, for a family applying
for assistance that does not at the time of application live in
that PHAs jurisdiction, require the family to live in the
jurisdiction of the PHA for 12 months after beginning
assistance to the family. Families may not receive assistance,
however, if they have moved as a result of an eviction due to a
lease violation.
Portability may not promote housing choice
The Section 8 certificate and voucher programs were enacted
under the premise that assisted households would obtain housing
of their choice that met HUD's rent and quality standards. It
was hoped that families would not, as is too often the case in
public housing, be warehoused in deteriorating developments at-
risk for their lives and with little hope for the future.
Rather, certificates and vouchers were seen as a means for
families to select safe housing, located in neighborhoods that
provided positive role models, and allowed increased access to
jobs, education, and services.
There is increasing concern, however, that ``Section 8
submarkets'' are being created.\15\ That is, by the programs'
very design, assisted households are herded into poorer areas.
This situation may occur because, as a general rule, Section 8
assistance has been limited to housing that rents at a level in
which 45 percent of an area's rental housing could be obtained.
The problem may be exacerbated by the reduction of the fair
market rent standard to the 40th percentile in 1995.\16\
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\15\ See the previously-cited reports on (1) voucher and
certificate utilization and (2) making the Section 8 program more
acceptable in the private rental market, as well as another HUD report
entitled ``Promoting Housing Choice in HUD's Rental Assistance
Programs: A Report to Congress'' (Apr. 1995).
\16\ HUD Fair Market Rents, 1995.
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For example, HUD's June 1995 study cited above reported
that:
* * * families receiving certificates and vouchers
obtain housing in areas that are generally less poor
and less segregated than the neighborhoods surrounding
conventional public housing projects. This finding,
offers the first quantitative evidence that, even in
the absence of directed counseling, HUD rental
assistance yields a lower concentration of urban
poverty than project-based forms of assistance.
Nonetheless, the locational outcomes of recipients
mirror the broad pattern of isolation experienced by
many low-income and minority households in the private
rental market. Despite the expanded housing choice
options that their enhanced purchasing power would seem
to offer, many Section 8 families continue to live in
relatively segregated and economically distressed
neighborhoods.
H.R. 2 addresses this issue in two ways. First, Section 353
of the bill provides that each PHA establish a payment standard
for Section 8 assistance that is between 80 percent and 120
percent of the ``rental indicator'' established by HUD (under
Section 323) for the local market area.\17\ This provision
allows the PHA sufficient flexibility to establish a payment
standard that reflects local conditions and is more conducive
to providing adequate housing choice.
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\17\ Rental indicators established under H. R. 2 take the place of
the current system of HUD-established ``fair market rents.''
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Second, Section 373 of the bill requires the Secretary to
conduct a study of the geographic areas of the State of
Illinois served by the Housing Authority of Cook County and the
Chicago Housing Authority. The purpose of the study is to
address and resolve issues on the adverse impact on local
communities due to the geographic concentration of assisted
households and ways to deconcentrate assisted households by
providing broader housing choice. The report is to be completed
not later than 90 days after the enactment of the Act.
Administrative fees for choice-based rental housing
Since 1975, Congress has provided funds to HUD to reimburse
PHAs for costs incurring administering the Section 8 tenant-
based rental housing assistance programs. This fee is composed
of several components: (1) a one-time fee (up to $275) to cover
the preliminary expenses involved in getting an assisted
household into the Section 8 program (for example, to reimburse
the PHA for costs incurred in taking applications, rent
reasonableness negotiations with the housing owner, complaint
handling, income recertification and unit inspections), (2)
ongoing fees to cover costs over time (averaging about 7.6% of
the fair-market rent (FMR) for a two-bedroom unit), and (3) for
other purposes, such as for the costs to help families that
experience difficulty in renting appropriate housing, costs to
coordinate services for seniors and disabled families, costs
for audits, and for extraordinary costs, as determined
necessary by HUD.
The second component of the fee is by far the most
significant for PHAs because of its linkage to the FMR and
because the other two components of the fee are one-time
payments. According to a 1993 HUD report, the average ongoing
reimbursement (excluding the preliminary and certain other
fees) equaled roughly $44 per unit per month of assistance,
with a total national cost of $659 million per year.\18\
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\18\ Office of Policy Development and Research, HUD, ``Section 8
Administrative Fees: A Report to Congress'' (June 1994).
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There are significant problems associated with setting
administrative fees. PHA characteristics, which are different
for each PHA, affect cost markedly that may lead to some PHAs
being overcompensated and some undercompensated. For example,
the number of certificates and vouchers administered by PHAs
range from a handful to upwards of tens of thousands. Also,
some PHAs serve a single city or county while others serve a
multi-county or state-wide area. All these factors affect the
level of expenses. Determining what constitutes a reasonable
payment to the 2,600 PHAs that administer these programs and
developing a fee schedule that fairly compensates all of them
is a difficult task.
As a first step towards making this determination, Section
305 sets the administrative fee level for FY1998 for PHAs at
7.65% of the base amount using FY 1993 and 1994 FMRs for the
first 600 units (for 2-bedroom units), and 7.0% of the base
amount for all units in excess of 600. After FY1998, the
Secretary is required to establish a fee that reflects changes
in wage data or other objectively measurable data that reflects
costs of administering the choice-based rental housing
assistance program. The Secretary may increase this fee to
reflect higher costs of administering small programs
andprograms operating over larger geographic areas. The Committee bill
also provides for an administrative fee for (1) the costs of assisting
families that have difficulty in finding appropriate housing, (2) in
certain circumstances, a one-time $500 preliminary fee, and (3) amounts
to cover extraordinary costs as determined by the Secretary.
K. Designing better indicators of market rents
Rental assistance provided to qualified households is
currently limited by fair market rents (FMR) which are nothing
more than statistically-determined indicators of appropriate,
affordable rent levels for the area. HUD establishes FMRs on an
annual basis for different housing market areas by type and
size of dwelling units. HUD relies on metropolitan statistical
areas and primary metropolitan statistical areas established by
the Office of Management and Budget as the housing market on
which to base FMRs because of the close correspondence that has
typically existed between these areas and housing market areas.
The composition of a single jurisdiction can range from a
single community to numerous counties spread over several
states.
In general, the FMR for an area is the amount needed to pay
the gross rent (shelter plus utilities) for modest, decent,
safe, and sanitary housing. In setting the FMRs, HUD tries to
strike a balance between permitting the assisted households a
wide selection of units and neighborhoods, and serving as many
households as possible. Specifically, beginning in fiscal year
1996, FMRs were set at the 40th percentile of a defined housing
market area's rental housing; that is, the level at which about
40 percent of a market area's rental housing can be obtained.
HUD establishes FMRs annually for about 2,700 market areas--
over 350 metropolitan areas and nearly 2,400 nonmetropolitan
counties. Most recipients of Federally-assisted housing reside
in metropolitan areas.
Problems with rent setting standards
Despite its best efforts, HUD's FMRs do not always
accurately reflect true market rents for certain areas and
submarkets within broadly defined areas. In fact, the
description most often made of FMRs is that they are neither
fair nor market. Therefore, H.R. 2 has changed the name of FMRs
to ``rental indicators'' in an attempt to reflect their actual
purpose. When FMRs are inaccurate--a significant problem in the
past--subsidies may be too high for prevailing rents in some
submarkets and too low in others.\19\
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\19\ In 1993, over 1,200 market areas appealed HUD's FMRs with the
result that more than 600 communities had FMRs adjusted upward to
accurately reflect the local market rents.
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For example, in areas where either situation exists, a
metropolitan area-wide FMR makes less than 40 percent of the
housing stock available to assisted households in more
expensive submarkets. Conversely, in areas with rents that are
below the metropolitan area-wide FMR, assisted households have
access to more than 40 percent of the available housing stock
in that area. In addition, areas where rents are high and the
subsidy is low, assisted families become concentrated in areas
that are at the lower end of the market--a situation that has
occurred in the past and is inconsistent with the statutory
objective of mobility and full access to the market.
Further, within any market area, rents vary because of the
units' age, quality of construction and maintenance, location,
and differences in amenities. Unless, and perhaps even if, an
area were defined as a few square blocks, rent variations would
remain and could be significant. Finally, establishing an FMR
for smaller areas could be too time-consuming and costly for
HUD. GAO recently estimated that the cost of collecting
additional data to establish an FMR for an individual public
housing agency's jurisdiction could range from $5 million to
more than $750 million a year, depending on the level of
accuracy and reliability desired.\20\
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\20\ Rental Housing: Use of Smaller Market Areas to Set Rent
Subsidy Levels Has Drawbacks (GAO/RCED-94-122, June 24, 1994).
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Establishing variable payment standards
Under the Committee's bill, HUD is responsible for
establishing rental indicators that account for the various
sizes and types of dwelling units within a given housing market
area. PHAs may establish payment standards for their locality
between 80 to 120 percent of the rental indicator. This
flexibility enables local authorities to set rent ranges that
are based on factors like a unit's age, location, amenities,
quality of construction and maintenance, and the provision of
local public services, such as employment opportunities and
transportation--detailed information that HUD does not have
access to when establishing the FMR.
Authorities with apartments located in a suburban or rural
area may assign a lower payment standard if the comparable
rents in the area are below the housing market area's rental
indicator. Conversely, the authorities are able to set the
payment standard above the rental indicator to meet the rental
costs of a high rent market.
L. Other general provisions
Pet ownership
The Committee bill continues to recognize the benefits that
pet ownership provides individuals and families and which has
been substantiated by scientific studies. Residents of
Federally-assisted rental housing are allowed to keep common
household pets in their dwelling units, subject to the
reasonable requirements of the owner. Those requirements may
include the payment by the resident of a nominal fee, and a
security ``pet'' deposit to cover costs associated with the
presence of pets. A nominal monthly fee should not exceed $10.
Any deposit should be kept in an interest bearing escrow
account by the local housing and management authority or the
property manager. Deposit moneys only should be used to pay for
the reasonable and extraordinary expenses related to the
resident/depositor's pet. Remaining deposit money should be
returned to the resident/depositor in a timely fashion once the
resident/depositor has vacated the facility or no longer owns a
pet.
Additionally, in allowing pets in Federally-assisted rental
housing, the Committee recognizes that, at times, it is
necessary to accommodate residents whose allergies or other
medical conditions are exacerbated by the presence of animals.
Such remedies should be appropriate to the needs of the
resident(s) and the property, including but not limited to pet
free areas, and consistent with the goals of Section 622.
Owners are prohibited from discriminating against persons
in connection with admission to or occupancy of Federally-
assisted rental housing only because of the presence of common
household pets in the dwelling unit of that person.
Review of drug elimination program contracts
Section 623 requires the Secretary to investigate all
security contracts of PHAs owning and operating more than 4,500
units and that were awarded by grantees under the Public and
Assisted Housing Drug Elimination Act of 1990. In particular,
the Committee is concerned with security firms affiliated with
the Nation of Islam which have received over $20 million in
contracts awarded by HUD. Members of this Committee are
concerned about allegations that such firms have benefited from
flagrant violations of procurement procedures, engaged in anti-
discriminatory hiring practices, and permitted their employees
to proselytize while on duty. In spite of requests from Members
of this Committee to the Secretary for details on these
contracts, and of possible non-compliance with Federal hiring
and employment requirements by some firms, HUD has failed to
provide this information.
In an effort to obtain information about the contractual
relationship between Nation of Islam affiliated firms and HUD,
the House Banking Subcommittee on General Oversight and
Investigations held a hearing on March 2, 1995. In spite of
HUD's repeated assurances that documents would be provided to
the Subcommittee, HUD has failed to secure for the Subcommittee
documentation of the hiring practices of such firms.
The failure of HUD to uphold its oversight and enforcement
responsibilities of the security contracts of PHAs has
compelled the Committee to act legislatively. As a result, the
Committee bill calls for HUD to provide a thorough accounting
of its contractual relationship with security companies, and a
requirement that HUD either bring existing public housing
security contracts into full compliance with appropriate
requirements, or terminate them.
Effect of repeal of USHA of 1937 on PHA payment of
outstanding debt and existing contracts
Despite the repeal of the USHA of 1937, the Committee
realizes that the financial records of numerous PHAs continue
to reflect debt that is held by the Secretary, generally in the
form of Advance Notes. The Committee does not intend that such
debt obstruct the ability of PHAs to seek other forms of
financial assistance from private market sources. Therefore,
the Secretary is encouraged to continue to forgive this debt as
it comes due.
Furthermore, the legislation should not affect the
continuing obligation of the Federal government to make annual
contributions, in amounts not exceeding the sum PHAs annually
require to pay principal and interest on obligations incurred
under the USHA of 1937, and issued with the full faith and
credit of the United States. Individuals and institutions
holding such instruments should reasonably expect that the
United States will continue to honor its obligations.
Section 601(c) makes clear that repealing the USHA of 1937
does not affect any legally binding obligation entered into
under such laws, and that any provision of law repealed by the
new Act shall continue to govern funds or activities subject to
the Act.
Occupancy standards
Section 702 of the Committee bill prohibits the Secretary
from establishing a national occupancy standard. Occupancy
standards are guidelines set by a housing provider or states on
the number of people permitted to live in a housing unit. This
section was designed in response to efforts by HUD to require
housing providers to house substantially more people than is
widely considered appropriate and reasonable. HUD's current
guidelines and manuals state that 2 persons per bedroom is
generally the occupancy standard for its public and assisted
housing programs. During markup of the Committee bill, certain
paragraphs from Section 702 (as introduced) that dealt with a
default occupancy standard for States without their own
provisions were deleted. The Committee is concerned that
efforts to change this would result in severe overcrowding in
many rental communities, depleting the stock of affordable
housing and having a detrimental effect on the quality of life
for residents in the housing units.\21\
---------------------------------------------------------------------------
\21\ Section 702 is not intended to annul the continuing effect of
the Keating Memorandum, which was and is recognized by Congress in P.L.
104-134 as the appropriate guidance for HUD to use in any enforcement
actions with respect to a complaint of discrimination under the Fair
Housing Act (42 U.S.C. Sec. 3601 et seq.) on the basis of familial
status and which involves an occupancy standard established by a
housing provider (the ``Keating Memorandum'' refers to the March 20,
1991 Memorandum from the General Counsel of the Department of Housing
and Urban Development to all regional counsel regarding fair housing
enforcement policy in occupancy areas).
---------------------------------------------------------------------------
Excess federal property
Although H.R. 2 as introduced included a section to allow
self-help housing programs the same eligibility for surplus
Federal property transfers as homeless providers enjoy, the
Committee deleted the provision in the managers amendment. The
Committee understands that the Committee on Government Reform
and Oversight, which has jurisdiction over the ``overall
economy, efficiency and management of government operations and
activities, including Federal procurement'' will be considering
legislation relevant to excess Federal property in the very
near future.
Departmental reorganization
Although H.R. 2 deals with the reforms in public housing,
the committee is also concerned with the capacity of HUD to
implement public housing and other comprehensive reforms,
including community and economic development. In particular,
HUD plans to reduce overall Department staffing to 7,500 over
the next several years. The Committee believes that the
Congress should be consulted before implementation of a
reorganization plan. The Committee will consult with HUD to
provide a consultation process, without the necessity of
statutory requirements. Additionally, the Committee is
concerned that any staff reorganization consider the primary
focus of the Department, including ``urban development'' and
provide a Departmental presence in the largest metropolitan
areas, where HUD can facilitate and partner to effectuate
economic and community opportunities.
H.R. 2--THE HOUSING OPPORTUNITY AND RESPONSIBILITY ACT OF 1997--AUTHORIZATION OF APPROPRIATIONS
[In millions of dollars]
----------------------------------------------------------------------------------------------------------------
Fiscal years--
------------------------------------------------
Programs 1998-2002--H.R. 1998
1997 enacted 2 [as passed by administration
Committee] budget
----------------------------------------------------------------------------------------------------------------
Title II--Public Housing:
Operation Safe Home........................................ [10] [20] [20]
Demolition, Site Revitalization, Replacement............... 550 \1\ 500 524
Capital Fund............................................... 2,500 2,500 2,500
Operating Fund............................................. 2,900 2,900 2,900
Relocation of Victims of Domestic Violence................. (\2\) (\3\) (\2\)
Title III--Choice-Based Housing:
Tenant Based Assistance.................................... (\2\) 1,862 (\2\)
Ass't for Disabled......................................... [50] [50] [50]
Title V--Repealers and Conforming:
Public Housing Agency Performance Study.................... (\2\) [.5] (\2\)
Drug Elimination........................................... 290 290 290
------------------------------------------------
Total for FY1998......................................... .............. 8,052 ..............
----------------------------------------------------------------------------------------------------------------
\1\ Fiscal years 1998-2000.
\2\ Not applicable.
\3\ Such sums not more than $.7.
Constitutional Authority
In compliance with clause 2(l)(4) of rule XI of the Rules
of the House of Representatives, the constitutional authority
for Congress to enact this legislation is derived from the
general welfare clause (Article I, Sec. 8).
Hearings
The Subcommittee on Housing and Community Opportunity held
three hearings on the ``Housing Opportunity and Responsibility
Act of 1997.''
The first hearing was held on February 25, 1997. Testifying
before the Subcommittee were: Dr. Ira Harkavy, Executive
Director, Center for Community Partnerships at the University
of Pennsylvania; Mr. David Kuo, Executive Director of American
Compass in Washington, D.C.; Mr. Abdur Rahman Farrakhan,
Executive Director of the Oceanhill Brownsville Tenants
Association in Brooklyn, New York; and, Mr. Howard Husock,
Executive Director of the Case Program at the John F. Kennedy
School of Government, Harvard University.
The second hearing was held on March 6, 1997. Testifying
before the Subcommittee were: Secretary Andrew Cuomo,
Department of Housing and Urban Development; Mr. John Hiscox,
Executive Director of the Macon (Georgia) Housing Authority on
behalf of the Public Housing Authorities Directors Association;
Mr. Rick Gentry, President of the National Association of
Housing and Redevelopment Officials; Ms. Sunia Zaterman,
Executive Director of the Council of Large Public Housing
Authorities; Mr. Harold Sole, Director of Leased Housing, New
York City Housing Authority, on behalf of National Leased
Housing Association; Mr. Jack Murray, Managing Director of
Insignia Residential Group, on behalf of the National Multi-
Housing Council; Mr. Benson Roberts, Vice-President for Policy
of the Local Initiatives Support Corporation in Washington,
D.C.; Mr. Bob Moore, President of the Development Corporation
of Columbia Heights in Washington, D.C.; Ms. Paulette Turner,
President of the Massachusetts Union of Public Housing Tenants;
Ms. Mary Rone, President of the New Jersey Association of
Public and Assisted Housing Residents; Ms. Cushing Dolbeare,
Board of Directors Member of the National Low-Income Housing
Coalition; and Mr. David Bryson, Acting Director of the
National Housing Law Project.
The third hearing was held on March 11, 1997. Testifying
before the Subcommittee were: Mr. Steven Goldsmith, Mayor of
Indianapolis, Indiana; HUD Inspector General Susan Gaffney; Mr.
Joseph Schiff, former HUD Assistant Secretary for Public and
Assisted Housing and President of the Schiff Group in
Washington, D.C.; and, Mr. Ned Epstein, of Housing Partners,
Inc. in Boston, Massachusetts.
Committee Consideration and Votes (Rule XI, Clause 2(l)(2)(b))
The Committee met in open session to mark up H.R. 2,
``Housing Opportunity and Responsibility Act of 1997'' on April
15, 16, 17 and 23, 1997. The Committee considered the original
text introduced by Mr. Lazio for purposes of amendments.
During the markup, the Committee approved 40 amendments
including a managers amendment and an en bloc amendment by
voice vote. The Committee also defeated three (3) amendments by
voice vote. Sixteen amendments were withdrawn. The Committee
defeated, by recorded vote, 17 amendments. Pursuant to the
provisions of clause 2(1)(2)(B) of rule XI of the House of
Representatives, the results of each roll call vote and the
motion to report, together with the names of those voting for
and those against are printed below:
ROLLCALL NO. 1
Date: April 16, 1997.
Measure: Housing Opportunity and Responsibility Act of
1997.
Motion by: Mr. Kennedy.
Description of motion: Substitute amendment to Lazio
(targeting) Amendment to allow a PHA to offset certain
targeting requirements of the public housing program if the PHA
voluntarily chooses to increase the targeting of choice-based
assistance to those people with incomes under 30 percent of the
area median income.
Results: Rejected 25 to 26.
YEAS NAYS
Mr. Gonzalez Mr. Leach
Mr. LaFalce Mr. McCollum
Mr. Vento Mrs. Roukema
Mr. Schumer Mr. Bereuter
Mr. Frank Mr. Baker
Mr. Kennedy Mr. Lazio
Mr. Flake Mr. Bachus
Ms. Waters Mr. Castle
Mr. Sanders Mr. King
Mrs. Maloney Mr. Campbell
Mr. Gutierrez Mr. Royce
Ms. Roybal-Allard Mr. Lucas
Mr. Barrett Mr. Metcalf
Ms. Velazquez Mr. Ney
Mr. Watt Mr. Ehrlich
Mr. Hinchey Mr. Barr
Mr. Ackerman Mrs. Kelly
Mr. Bentsen Dr. Paul
Mr. Jackson Mr. Ryun
Ms. McKinney Mr. Cook
Ms. Kilpatrick Mr. Snowbarger
Mr. Maloney Mr. Riley
Ms. Hooley Mr. Hill
Ms. Carson Mr. LaTourette
Mr. Torres Mr. Manzullo
Mr. Jones
ROLLCALL No. 2
Date: April 16, 1997.
Measure: Housing Opportunity and Responsibility Act of
1997.
Motion by: Mr. Metcalf.
Description of motion: Amendment to Sanders Amendment to
provide all the savings from the elimination of the mortgage
interest deduction towards the reduction of the federal
deficit.
Results: Rejected 11 to 34.
YEAS NAYS
Mr. Metcalf Mr. Leach
Ms. Waters Mr. McCollum
Mr. Sanders Mrs. Roukema
Ms. Roybal-Allard Mr. Bereuter
Mr. Barrett Mr. Baker
Mr. Watt Mr. Lazio
Mr. Hinchey Mr. Bachus
Mr. Jackson Mr. King
Ms. McKinney Mr. Campbell
Ms. Kilpatrick Mr. Royce
Ms. Carson Mr. Lucas
Mr. Ney
Mr. Ehrlich
Mr. Barr
Mr. Fox
Mrs. Kelly
Dr. Paul
Dr. Weldon
Mr. Ryun
Mr. Cook
Mr. Snowbarger
Mr. Riley
Mr. Sessions
Mr. LaTourette
Mr. Manzullo
Mr. Foley
Mr. Jones
Mr. Gonzalez
Mr. Vento
Mr. Kanjorski
Mr. Flake
Mr. Bentsen
Mr. Maloney
Ms. Hooley
ROLLCALL No. 3
Date: April 16, 1997.
Measure: Housing Opportunity and Responsibility Act of
1997.
Motion by: Mr. Jackson.
Description of motion: Deletes work requirement, graduation
date from self-sufficiency contracts, and binding lease terms
and exemption in Title I, Section 105.
Result: Defeated 19to 26.
YEAS NAYS
Mr. Bachus Mr. Leach
Mr. Campbell Mr. McCollum
Mr. LaTourette Mrs. Roukema
Mr. Gonzalez Mr. Bereuter
Mr. Vento Mr. Baker
Mr. Frank Mr. Lazio
Mr. Kennedy Mr. King
Ms. Waters Mr. Royce
Mr. Sanders Mr. Lucas
Mrs. Maloney Mr. Metcalf
Ms. Roybal-Allard Mr. Ney
Mr. Barrett Mr. Ehrlich
Mr. Watt Mr. Barr
Mr. Hinchey Mrs. Kelly
Mr. Bentsen Dr. Paul
Mr. Jackson Dr. Weldon
Ms. Kilpatrick Mr. Ryun
Ms. Hooley Mr. Cook
Ms. Carson Mr. Snowbarger
Mr. Riley
Mr. Sessions
Mr. Manzullo
Mr. Foley
Mr. Jones
Mr. Ackerman
Mr. Maloney
ROLLCALL No. 4
Date: April 16, 1997.
Measure: Housing Opportunity and Responsibility Act of
1997.
Motion by: Mr. Jackson.
Description of motion: To provide that nothing in the self-
sufficiency and community work agreement constitutes a binding
lease term in Title I, Section 105(a), (c).
Results: Rejected 14 to 26.
YEAS NAYS
Mr. LaTourette Mr. Leach
Mr. Vento Mrs. Roukema
Mr. Kanjorski Mr. Bereuter
Mr. Kennedy Mr. Baker
Mr. Sanders Mr. Lazio
Mr. Gutierrez Mr. Bachus
Ms. Roybal-Allard Mr. King
Mr. Barrett Mr. Royce
Mr. Watt Mr. Lucas
Mr. Hinchey Mr. Metcalf
Mr. Bentsen Mr. Ney
Mr. Jackson Mr. Ehrlich
Ms. Kilpatrick Mr. Fox
Ms. Hooley Mrs. Kelly
Dr. Paul
Dr. Weldon
Mr. Ryun
Mr. Cook
Mr. Snowbarger
Mr. Riley
Mr. Hill
Mr. Sessions
Mr. Manzullo
Mr. Foley
Mr. Jones
Mr. Maloney
ROLLCALL No. 5
Date: April 17, 1997.
Motion by: Mr. Jackson.
Measure: Housing Opportunity and Responsibility Act of
1997.
Description of motion: To provide that Section 105 shall be
effective only to the extent that Congress appropriates funds
to specifically cover costs to the Housing Authorities for
implementation, enforcement, liability, and other costs arising
from such agreements.
Results: Rejected 17 to 23.
YEAS NAYS
Mr. Vento Mr. Leach
Mr. Frank Mrs. Roukema
Mr. Kennedy Mr. Baker
Mr. Flake Mr. Lazio
Ms. Waters Mr. Royce
Mr. Sanders Mr. Lucas
Mrs. Maloney Mr. Metcalf
Mr. Gutierrez Mr. Ney
Ms. Roybal-Allard Mr. Ehrlich
Mr. Barrett Mr. Barr
Ms. Velazquez Mr. Fox
Mr. Watt Mrs. Kelly
Mr. Bentsen Dr. Paul
Mr. Jackson Dr. Weldon
Ms. Kilpatrick Mr. Ryun
Mr. Maloney Mr. Cook
Ms. Hooley Mr. Snowbarger
Mr. Riley
Mr. Hill
Mr. Sessions
Mr. Manzullo
Mr. Foley
Mr. Jones
ROLLCALL No. 6
Date: April 17, 1997.
Measure: Housing Opportunity and Responsibility Act of
1997.
Motion by: Ms. Waters and Ms. Kilpatrick.
Description of motion: To strike provisions regarding
administrative grievance procedures concerning evictions from
public housing and retains current law.
Results: Rejected 17 to 24.
YEAS NAYS
Mr. Gonzalez Mr. Leach
Mr. Vento Mrs. Roukema
Mr. Frank Mr. Bereuter
Mr. Kanjorski Mr. Baker
Mr. Flake Mr. Lazio
Ms. Waters Mr. Royce
Mr. Sanders Mr. Lucas
Mr. Gutierrez Mr. Metcalf
Ms. Roybal-Allard Mr. Ney
Mr. Barrett Mr. Ehrlich
Ms. Velazquez Mr. Barr
Mr. Watt Mr. Fox
Mr. Bentsen Mrs. Kelly
Mr. Jackson Dr. Paul
Ms. Kilpatrick Dr. Weldon
Mr. Maloney Mr. Ryun
Ms. Hooley Mr. Cook
Mr. Snowbarger
Mr. Riley
Mr. Hill
Mr. Sessions
Mr. LaTourette
Mr. Manzullo
Mr. Jones
ROLLCALL NO. 7
Date: April 17, 1997.
Measure: Housing Opportunity and Responsibility Act of
1997.
Motion by: Mr. Frank.
Description of motion: Provides Public Housing Authority
with discretionary authority to implement community work
requirements in Title I, Section 105.
Results: Rejected 13 to 24.
YEAS NAYS
Mr. Gonzalez Mr. Leach
Mr. Frank Mrs. Roukema
Mr. Flake Mr. Bereuter
Ms. Waters Mr. Baker
Mr. Sanders Mr. Lazio
Ms. Roybal-Allard Mr. Bachus
Mr. Barrett Mr. Castle
Ms. Velazquez Mr. Lucas
Mr. Watt Mr. Metcalf
Mr. Bentsen Mr. Ney
Mr. Jackson Mr. Barr
Mr. Maloney Mr. Fox
Ms. Hooley Mrs. Kelly
Dr. Paul
Dr. Weldon
Mr. Ryun
Mr. Cook
Mr. Snowbarger
Mr. Riley
Mr. Hill
Mr. Sessions
Mr. LaTourette
Mr. Manzullo
Mr. Jones
ROLLCALL NO. 8
Date: April 17, 1997.
Measure: Housing Opportunity and Responsibility Act of
1997.
Description of motion: Strikes community work requirement
in Title I, Section 105.
Results: Rejected 15 to 27.
YEAS NAYS
Mr. LaTourette Mr. Leach
Mr. Gonzalez Mr. McCollum
Mr. Vento Mrs. Roukema
Mr. Flake Mr. Bereuter
Ms. Waters Mr. Baker
Mr. Sanders Mr. Lazio
Mr. Gutierrez Mr. Bachus
Ms. Roybal-Allard Mr. Castle
Mr. Barrett Mr. Royce
Ms. Velazquez Mr. Lucas
Mr. Watt Mr. Metcalf
Mr. Bentsen Mr. Ney
Mr. Jackson Mr. Barr
Ms. Kilpatrick Mr. Fox
Ms. Hooley Mrs. Kelly
Dr. Paul
Dr. Weldon
Mr. Ryun
Mr. Cook
Mr. Snowbarger
Mr. Riley
Mr. Hill
Mr. Sessions
Mr. Manzullo
Mr. Foley
Mr. Jones
Mr. Maloney
ROLLCALL NO. 9
Date: April 17, 1997.
Measure: Housing Opportunity and Responsibility Act of
1997.
Motion by: Ms. Velazquez.
Description of motion: To amend Title II, Section 225 to
allow minimum rents from $0 to $25.
Results: Rejected 16 to 22.
YEAS NAYS
Mr. Gonzalez Mr. Leach
Mr. Vento Mr. Bereuter
Mr. Kennedy Mr. Lazio
Mr. Flake Mr. Bachus
Ms. Waters Mr. Castle
Mr. Gutierrez Mr. Royce
Ms. Roybal-Allard Mr. Lucas
Mr. Barrett Mr. Ney
Ms. Velazquez Mr. Barr
Mr. Watt Mr. Fox
Mr. Bentsen Mrs. Kelly
Mr. Jackson Dr. Paul
Ms. Kilpatrick Mr. Ryun
Mr. Maloney Mr. Cook
Ms. Hooley Mr. Snowbarger
Mr. Torres Mr. Riley
Mr. Hill
Mr. Sessions
Mr. LaTourette
Mr. Manzullo
Mr. Foley
Mr. Jones
ROLLCALL NO. 10
Date: April 17, 1997.
Measure: Housing Opportunity and Responsibility Act of
1997.
Description of motion: To insure that housing units built
on land formerly used for public housing include not less than
\1/3\ of such units for low-income housing.
Results: Rejected 19 to 20.
YEAS NAYS
Mr. Gonzalez Mr. Leach
Mr. Vento Mr. Bereuter
Mr. Frank Mr. Lazio
Mr. Kennedy Mr. Bachus
Mr. Flake Mr. Royce
Ms. Waters Mr. Metcalf
Mr. Sanders Mr. Ehrlich
Mrs. Maloney Mr. Fox
Mr. Gutierrez Mrs. Kelly
Ms. Roybal-Allard Dr. Paul
Mr. Barrett Mr. Ryun
Mr. Watt Mr. Cook
Mr. Bentsen Mr. Snowbarger
Mr. Jackson Mr. Riley
Ms. Kilpatrick Mr. Hill
Mr. Maloney Mr. Sessions
Ms. Hooley Mr. LaTourette
Ms. Carson Mr. Manzullo
Mr. Torres Mr. Foley
Mr. Jones
ROLLCALL NO. 11
Date: April 17, 1997.
Measure: Housing Opportunity and Responsibility Act of
1997.
Description of motion: Authorizes full funding of the
Operating Fund reflected in the Local Housing Management Plans.
Results: Rejected 20 to 25.
YEAS NAYS
Mr. Gonzalez Mr. Leach
Mr. Vento Mr. McCollum
Mr. Frank Mr. Bereuter
Mr. Kennedy Mr. Lazio
Mr. Flake Mr. Bachus
Ms. Waters Mr. King
Mr. Sanders Mr. Royce
Mrs. Maloney Mr. Lucas
Mr. Gutierrez Mr. Metcalf
Ms. Roybal-Allard Mr. Ney
Mr. Barrett Mr. Ehrlich
Mr. Watt Mr. Barr
Mr. Ackerman Mr. Fox
Mr. Bentsen Mrs. Kelly
Mr. Jackson Dr. Weldon
Ms. Kilpatrick Mr. Ryun
Mr. Maloney Mr. Cook
Ms. Hooley Mr. Snowbarger
Ms. Carson Mr. Riley
Mr. Torres Mr. Hill
Mr. Sessions
Mr. LaTourette
Mr. Manzullo
Mr. Foley
Mr. Jones
ROLLCALL NO. 12
Date: April 23, 1997.
Motion by: Mr. Vento.
Measure: Housing Opportunity and Responsibility Act of
1997.
Description: Provides for hardship exemption from minimum
rent requirements, included in the legislation, of $25-$50
where a legal alien has lost public benefits because of the
implementation of the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996.
Result: Rejected 13 to 25.
YEAS NAYS
Mr. Gonzalez Mr. Leach
Mr. LaFalce Mrs. Roukema
Mr. Vento Mr. Baker
Mr. Frank Mr. Lazio
Ms. Waters Mr. King
Mr. Gutierrez Mr. Royce
Mr. Barrett Mr. Lucas
Mr. Watt Mr. Metcalf
Mr. Ackerman Mr. Ney
Mr. Jackson Mr. Ehrlich
Mr. Maloney Mr. Barr
Ms. Carson Mrs. Kelly
Mr. Torres Dr. Paul
Dr. Weldon
Mr. Ryun
Mr. Cook
Mr. Snowbarger
Mr. Riley
Mr. Hill
Mr. Sessions
Mr. LaTourette
Mr. Manzullo
Mr. Foley
Mr. Jones
Ms. Hooley
ROLLCALL NO. 13
Date: April 23, 1997.
Motion by: Mrs. Kelly.
Measure: Housing Opportunity and Responsibility Act of
1997.
Description: Previous Question on the Debate of Mr. Vento's
motion strike language imposing CDBG sanctions on CDBG
entitlement communities that substantially contribute to their
Public Housing Authority's ``troubled'' designation status.
Result: Accepted 23 to 19 with one pass.
YEAS NAYS
Mr. Leach Mr. Cook
Mrs. Roukema Mr. Gonzalez
Mr. Baker Mr. Vento
Mr. Lazio Mr. Kennedy
Mr. King Mr. Flake
Mr. Royce Ms. Waters
Mr. Lucas Mr. Sanders
Mr. Metcalf Mrs. Maloney
Mr. Ney Mr. Gutierrez
Mr. Ehrlich Ms. Roybal-Allard
Mr. Barr Mr. Barrett
Mr. Fox Mr. Watt
Mrs. Kelly Mr. Ackerman
Dr. Paul Mr. Bentsen
Dr. Weldon Mr. Jackson
Mr. Ryun Mr. Maloney
Mr. Snowbarger Ms. Hooley
Mr. Riley Ms. Carson
Mr. Hill Mr. Torres
Mr. LaTourette
Mr. Manzullo
Mr. Foley
Mr. Jones
ROLLCALL NO. 14
Date: April 23, 1997.
Motion by: Mr. Vento.
Measure: Housing Opportunity and Responsibility Act of
1997.
Description: Strike language imposing CDBG sanctions on
CDBG entitlement communities that substantially contribute to
their Public Housing Authority's ``troubled'' designation
status.
Result: Rejected 19 to 26.
YEAS NAYS
Mr. Gonzalez Mr. Leach
Mr. LaFalce Mrs. Roukema
Mr. Vento Mr. Bereuter
Mr. Kennedy Mr. Baker
Mr. Flake Mr. Lazio
Ms. Waters Mr. Castle
Mr. Sanders Mr. King
Mrs. Maloney Mr. Royce
Mr. Gutierrez Mr. Lucas
Ms. Roybal-Allard Mr. Metcalf
Mr. Barrett Mr. Ney
Mr. Watt Mr. Ehrlich
Mr. Ackerman Mr. Barr
Mr. Bentsen Mr. Fox
Mr. Jackson Mrs. Kelly
Mr. Maloney Dr. Paul
Ms. Hooley Dr. Weldon
Ms. Carson Mr. Ryun
Mr. Torres Mr. Cook
Mr. Snowbarger
Mr. Riley
Mr. Hill
Mr. LaTourette
Mr. Manzullo
Mr. Foley
Mr. Jones
ROLLCALL NO. 15
Date: April 23, 1997.
Motion by: Mr. Kennedy.
Measure: Housing Opportunity and Responsibility Act of
1997.
Description: Strike Title IV--Home Rule Flexible Grant
Option. Title IV would allow local governments, on a voluntary
basis, to petition HUD to merge public housing programs with
other local governmental programs in order to address
comprehensive neighborhood problems.
Result: Rejected 19 to 29.
YEAS NAYS
Mr. Gonzalez Mr. Leach
Mr. LaFalce Mr. McCollum
Mr. Vento Mrs. Roukema
Mr. Frank Mr. Bereuter
Mr. Kennedy Mr. Baker
Mr. Flake Mr. Lazio
Ms. Waters Mr. Bachus
Mr. Sanders Mr. Castle
Mrs. Maloney Mr. King
Mr. Gutierrez Mr. Royce
Ms. Roybal-Allard Mr. Lucas
Mr. Barrett Mr. Metcalf
Mr. Watt Mr. Ney
Mr. Hinchey Mr. Ehrlich
Mr. Ackerman Mr. Barr
Mr. Jackson Mr. Fox
Mr. Maloney Mrs. Kelly
Ms. Hooley Dr. Paul
Ms. Carson Dr. Weldon
Mr. Ryun
Mr. Cook
Mr. Snowbarger
Mr. Riley
Mr. Hill
Mr. LaTourette
Mr. Manzullo
Mr. Foley
Mr. Jones
Mr. Bentsen
ROLLCALL NO. 16
Date: April 23, 1997.
Motion by: Mr. Gutierrez.
Measure: Housing Opportunity and Responsibility Act of
1997.
Description: Strike Title VII, Section 704 that would
provide the HUD Secretary with authority only to raise income
eligibility levels for the HOME and CDBG programs, and not
lower them to a national average.
Result: Rejected 14 to 27.
YEAS NAYS
Mr. Kanjorski Mr. Leach
Mr. Kennedy Mr. McCollum
Mr. Flake Mrs. Roukema
Mr. Sanders Mr. Bereuter
Mr. Gutierrez Mr. Baker
Ms. Roybal-Allard Mr. Lazio
Mr. Barrett Mr. Bachus
Mr. Watt Mr. Castle
Mr. Bentsen Mr. King
Mr. Jackson Mr. Campbell
Ms. McKinney Mr. Royce
Mr. Maloney Mr. Lucas
Ms. Hooley Mr. Metcalf
Ms. Carson Mr. Ney
Mr. Ehrlich
Mr. Barr
Mr. Fox
Mrs. Kelly
Dr. Paul
Dr. Weldon
Mr. Ryun
Mr. Cook
Mr. Snowbarger
Mr. Riley
Mr. Manzullo
Mr. Foley
Mr. Jones
A motion to adopt H.R. 2 and favorably report H.R. 2 as
amended to the House was approved 28-19 on April 23, 1997. The
Committee then passed by voice vote to authorize the Chairman
to make any technical or conforming amendments.
YEAS NAYS
Mr. Leach Dr. Paul
Mr. McCollum Mr. Gonzalez
Mrs. Roukema Mr. Vento
Mr. Bereuter Mr. Schumer
Mr. Baker Mr. Kanjorski
Mr. Lazio Mr. Kennedy
Mr. Bachus Mr. Flake
Mr. Castle Ms. Waters
Mr. King Mr. Sanders
Mr. Campbell Mrs. Maloney
Mr. Lucas Mr. Gutierrez
Mr. Metcalf Ms. Roybal-Allard
Mr. Ney Mr. Barrett
Mr. Ehrlich Mr. Watt
Mr. Barr Mr. Jackson
Mr. Fox Ms. McKinney
Mrs. Kelly Mr. Maloney
Dr. Weldon Ms. Hooley
Mr. Ryun Ms. Carson
Mr. Cook
Mr. Snowbarger
Mr. Riley
Mr. LaTourette
Mr. Manzullo
Mr. Foley
Mr. Jones
Mr. Ackerman
Mr. Bentsen
Committee Oversight Findings
In compliance with clause 2(l)(3)(A) of rule XI of the
Rules of the House of Representatives, the Committee reports
that the findings and recommendations of the Committee, based
on oversight activities under clause 2(b)(1) of rule X of the
Rules of the House of Representatives, are incorporated in the
descriptive portions of this report.
Committee on Government Reform and Oversight Findings
No findings and recommendations of the Committee on
Government Reform and Oversight were received as referred to in
clause 2(l)(3)(D) of rule XI and clause 4(c)(2) of rule X of
the Rules of the House of Representatives.
New Budget Authority and Tax Expenditures
Clause 2(l)(3)(B) of rule XI of the Rules of the House of
Representatives is inapplicable because this legislation does
not provide new budgetary authority for increased tax
expenditures.
Congressional Budget Office Cost Estimates
The cost estimate pursuant to Clause 2(l)(3)(C) of rule XI,
of the Rules of the House of Representatives and Section 403 of
the Congressional Budget Act of 1974 has been requested, but
had not been prepared as of the filing of Part I of this
report. The estimate will be included in Part II of this report
to be filed at a future date.
Advisory Committee Statement
No advisory committees within the meaning of Section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Congressional Accountability Act
The reporting requirement under Section 102(b)(3) of the
Congressional Accountability Act (P.L. 104-1) is inapplicable
because this legislation does not relate to terms and
conditions of employment or access to public services or
accommodations.
Congressional Budget Office Federal Mandate Cost Estimate
The cost estimate pursuant to Section 424 of the Unfunded
Mandates Reform Act (P.L. 104-4) has been requested, but had
not been prepared as of the filing of this report. The estimate
will be filed in Part II of this report to be filed at a future
date.
Section-by-Section
Section 1--Short title and table of contents
This Act may be cited as the ``Housing Opportunity and
Responsibility Act of 1997.''
Section 2--Declaration of policy to renew American neighborhoods
States that the federal government:
(1) has a responsibility to promote the general welfare of
the nation (a) by using federal resources to aid families and
individuals seeking affordable homes that are safe, clean, and
healthy, and in particular, assisting responsible, deserving
citizens who cannot provide fully for themselves because of
temporary circumstances or factors beyond their control; (b) by
working to ensure a thriving national economy and a strong
private housing market; and (c) by developing effective
partnerships among the federal government, state and local
governments, and private entities that allow government to
accept responsibility for fostering the development of a
healthy marketplace, and allow families to prosper and thrive
without government involvement in their day-to-day activities;
(2) cannot through its direct action or involvement provide
for the housing of every American citizen, or even a majority
of its citizens, but it is the responsibility of government to
promote and protect the independent and collective actions of
private citizens to develop housing and strengthen their own
neighborhoods;
(3) should act only where there is a serious need that
private citizens or groups cannot or are not addressing
responsibly, and that by merely providing physical structures
to house the poor, will not pull generations up from poverty.
This section also states that it is the goal of our Nation
that all citizens have decent and affordable housing.
TITLE I--GENERAL PROVISIONS
Section 101--statement of purpose.
States that the purpose of the Housing Opportunity and
Responsibility Act of 1997 (the ``Act'') is to promote safe,
clean and healthy housing, and affordable housing opportunities
to low-income families by (1) deregulating public housing
agencies (``PHAs''); (2) providing for more flexible use of
Federal assistance; (3) facilitating mixed income communities;
(4) increasing accountability and rewarding effective
management of PHAs; (5) creating incentives to work for
residents of dwelling unitsassisted by PHAs; and (6) recreating
the existing rental assistance voucher program to more closely resemble
the private housing market.
section 102--definitions
Defines various terms for the purpose of this Act.
section 103--organization of public housing agencies
Defines ``public housing agency'' and ``agency.'' Requires
that the board of directors of a PHA include at least one
elected public housing resident, except where the PHA: (1) is a
State or local governing body; (2) oversees less than 250
public housing dwelling units; or (3) is required by State law
to have a salaried, full-time Board of Directors.
section 104--determination of adjusted income and median income
Defines ``adjusted income'' as the difference between the
income of the members of the family residing in a dwelling unit
(or the person on the lease) and the amount of any income
exclusions--some of which are mandatory. Mandatory exclusions
are for: (1) $400 for elderly or disabled families; (2)
unreimbursed medical expenses over 3 percent of the family's
annual income; (3) reasonable child care expenses necessary for
enabling a person to work; (4) any earned income of minors
residing in the household; and (5) certain child support
payments.
section 105--community work and family self-sufficiency agreements
Requires adult residents of public housing or choice-based
assistance to enter into a self-sufficiency program, contribute
no less than eight hours of work per month within the community
in which the adult resides or participate on an ongoing basis
in a program designed to promote economic self-sufficiency, and
set a target date by which the family hopes to move out of
public housing. Exceptions to this requirement include working
families, senior citizens, disabled families, persons attending
school or vocational training, or physically impaired persons.
In addition, persons complying with work or economic self-
sufficiency program requirements, under welfare or public
assistance programs, are exempt from the work requirement.
Compliance with target date requirements shall not be construed
by a PHA as grounds for eviction.
Ensures that a resident whose public assistance was
decreased as a result of inability to find work despite
compliance with welfare requirements will receive a rent
reduction according to current calculations of residential
rental payments. However, those who do not comply with welfare
regulations will not receive a reduction in rent if their
public assistance is decreased.
section 106--local housing management plans
Requires each PHA to submit a local housing management
plan, composed of an initial five-years showing the PHA's
statement of needs and goals for that period (updated every
five years), and a more detailed operating plan, which shall be
submitted annually. The contents of the plan (which may be
submitted as part of a comprehensive housing affordability
strategy) must include, among other things, information on the
housing needs of the locality, population served, method of
rent determination, operations, capital improvements, unmet
housing needs of families with incomes less than 30 percent of
median, homeownership efforts, and efforts to coordinate the
program with local welfare agencies and providers. The plan
must also establish safety measures in consultation with police
officers. The plan must be submitted to local elected officials
for review and approval. Each PHA must also make its plan and
any amendment thereto available to the public in a manner that
affords affected public housing residents, assisted families,
and other interested parties an opportunity to examine its
content and to submit comments. The Secretary may grant waivers
from some of these requirements for PHAs managing less than 250
units.
section 107--review of plans
Discusses standards by which the Secretary may review Local
Housing Management Plans.
section 108--reporting requirements
Each PHA is required to submit annually a performance and
evaluation report on the use of funds provided under this Act
and how such use coincides with the needs of the community as
identified in the PHA's plan.
section 109--pet ownership
Allows ownership of pets in federally-assisted housing
pursuant to Section 227 of the Housing and Urban-Rural Recovery
Act of 1983 (see Section 622).
section 110--administrative grievance procedure
Requires each PHA to establish a grievance procedure that
provides due process for residents, except that a PHA does not
need to use such grievance procedure involving an eviction or
termination of tenancy wherein the tenant is entitled to a
court hearing which affords due process.
section 111--headquarters reserve fund
Authorizes the Secretary to retain not more than 2 percent
of funds appropriated under Title II for use in connection with
the provision of assistance in the case of natural disasters,
emergencies, settlement of litigation, or actions taken by the
Secretary regarding PHAs that are designated as ``troubled'' or
``at risk'' PHAs (as defined in Section 533 of this Act).
section 112--labor standards
Provides that grants or sales under the Act are subject to
prevailing wages under Davis-Bacon, except for volunteers.
Section 113--Nondiscrimination
Requires PHAs and their contractors to comply with
nondiscrimination and civil rights laws.
Section 114--Prohibition on use of funds
Prohibits use of funds for indemnification of contractors
or subcontractors for losses associated with judgments
involving infringement of intellectual property rights.
Section 115--Inapplicability to Indian housing
Makes the Act inapplicable to Indian PHAs, which are now
subject to the provisions of the Native American Housing
Assistance and Self-Determination Act of 1996 (Public Law: 104-
330).
Section 116--Regulations
Permits the Secretary to issue appropriate regulations.
TITLE II--PUBLIC HOUSING
Subtitle A--Block Grants
Section 201--Block Grant Contracts
Provides general parameters for block grant contracts to be
entered into between the Secretary and the PHAs. The PHAs must
agree to provide safe, clean, and healthy housing that is
affordable in return for assistance.
Section 202--Grant authority, amount, and eligibility
Requires the Secretary to establish two funds for provision
of block grants to PHAs: a capital fund for capital
improvements, and an operating fund for the costs of PHA
operations. A PHA shall have the ability to use up to 20
percent of its capital grant for PHA operations. In return for
receiving federal assistance, the PHA is required to have
entered into a local cooperation agreement with the local
government. Allows the Secretary to provide grants to an
ineligible PHA, but only for a period necessary to secure an
alternative management entity.
Allows a PHA that owns or operates less than 250 units
flexibility to use amounts from grants under this Title for any
eligible activities under Section 203. Allows the Secretary to
recapture grants from PHA's capital funds if the amounts are
not used or obligated 24 months after distribution. Allows a
governor to request 50 percent of the capital funds for PHAs
with less than 100 units be directed to the state for
distribution by the governor.
The amount of the grant is to be determined pursuant to a
formula, developed pursuant to Section 204.
Section 203--Eligible and required activities
Authorizes capital grant uses for production and
modernization of public housing, and operating grant uses for
the costs of administering the program and certain other
activities.
Contains a mandatory conversion provision requiring PHAs to
provide housing assistance in the form of vouchers in lieu of
continuing to subsidize certain distressed developments under
certain circumstances, including where a cost analysis shows
that using vouchers would be less expensive than continuing to
operate the development as public housing. Requires
notification of tenants in public housing developments subject
to conversion and provides them choice-based housing assistance
or occupancy in a unit operated or assisted by the PHA.
Authorizes the Secretary to determine whether a PHA has
failed to comply with this subsection and, in such case, to
withdraw funding from the development.
Section 204--Determination of grant allocation
Provides for interim allocations to PHAs pending the
development of a permanent grant formula for allocating capital
funds and a permanent grant formula for allocating operating
funds. Each formula is to be developed using a negotiated
rulemaking procedure and should reward performance.
Prescribes that chronically vacant (six months or more)
units are ineligible to receive subsidy except to the extent of
paying utilities. Provides incentives to encourage PHAs to
increase nonrental income. Allows that any benefit of increase
in income will not result in a decrease of grants provided
under this Title. An agency may retain full benefit of income,
except in specific circumstances.
Section 205--Sanctions for improper use of amounts
Allows the Secretary to terminate, withhold, reduce, or
limit the availability of payments under this Act if the PHA
does not comply with its requirements.
Subtitle B--Admissions and Occupancy Requirements
Section 221--Low-income housing requirements
Requires public housing produced under this Act (or the
1937 Act) to be operated as public housing for a 40-year period
and limits the sale or disposition of any public housing if the
property has received an operating subsidy within 10 years of
the sale date. Permits the use of assistance for creating
mixed-income developments.
Section 222--Family eligibility
Limits occupancy of public housing to families who, at the
time of the initial occupancy, qualify as low-income. PHAs may
create a selection criteria for incoming residents that are
aimed at creating an income mix that reflects the eligible
population of that jurisdiction provided at least 35 percent of
the units made available for incoming occupancy are occupied by
families whose income does not exceed 30 percent of area median
income. PHAs are prohibited from concentrating or restricting
very-low income families in particular developments. Certain
income and eligibility restrictions may be waived by the PHA in
order to provide units to police officers, law enforcement, and
security personnel. Allows fungibility for choice-based housing
assistance such that a PHA may meet the targeting level of 35
percent by providing choice-based certificates to residents
with income levels below 30 percent of median income.
Section 223--Preferences for occupancy
Authorizes PHAs to establish local preferences based on
local housing needs and priorities. Provides a sense of the
Congress that PHAs should adopt preferences for individuals who
are victims of domestic violence.
Section 224--Admission procedures
Authorizes a PHA to ensure that each family residing in a
public housing development owned or managed by the PHA has been
admitted in accordance with this Title. Applicants who are
denied admission must be granted a hearing. Allows PHAs to
create site-based waiting lists for admissions to individual
developments. Requires PHAs to maintain the confidentiality of
victims of domestic violence. Requires procedures to comply
with applicable civil rights laws.
Section 225--Family choice of rental payment
A family will be given a choice, to be exercised annually,
of paying as rent either (1) an amount that shall not exceed 30
percent of their adjusted income, or (2) a flat rent, which the
PHA is to determine for each unit in its inventory. In making
these rent determinations, PHAs shall strive to develop rent
structures that do not create disincentives to work and self-
sufficiency. Regardless of income, every family shall pay a
minimum monthly rental which shall be determined by the PHA in
an amount between $25 and $50, except in cases of severe
financial hardship and certain other circumstances. The amount
a tenant pays for utilities will be included as payment toward
the minimum rent. The income of newly employed individuals is
disallowed for an 18-month period after the beginning date of
employment.
Any monthly contribution increase greater than 30 percent
of the monthly contribution amount that would have been paid by
a family for an assisted housing unit under the provisions of
the Housing Act of 1937 immediately prior to the effective date
of this Title, unless resulting from the requirement to pay the
minimum rent, shall be phased in equally over a period of three
years.
Section 226--Lease requirements
Requires a PHA to utilize leases that do not contain
unreasonable terms or conditions, that require the PHA to
comply with housing quality standards, and that obligate the
PHA to give adequate written notice of termination. Leases must
also grant residents the right to review relevant documents
related to any termination or eviction procedures instituted
against them.
Section 227--Designated housing for elderly and disabled families
Permits a PHA to designate all or part of a development as
being for only elderly, only disabled, or only elderly and
disabled, provided the designation is part of the PHA's Local
Housing Management Plan. A PHA must establish that designation
of a development is necessary to meet certain goals and needs,
and must include information regarding the supportive services
and other assets that will be provided to serve the residents,
including those adversely affected by the designation.
Allows a PHA to admit ``near-elderly'' applicants (those
who are aged 55 years or more) to elderly developments with
excessive vacancies. A PHA may not evict a resident because of
the designation under this section of a development where that
resident's unit is located. A resident who agrees to relocate
as a result of the designation, however, shall receive notice
of and an explanation of available relocation benefits as soon
as practicable, access to comparable housing, and payment of
actual, reasonable moving expenses.
Subtitle C--Management
Section 231--Management procedures
Requires PHAs to ensure sound management and authorizes
them to contract with other entities to perform management
functions.
Section 232--Housing quality requirements
Requires PHAs to maintain public housing pursuant to the
local jurisdiction's laws, regulations, standards, or codes
regarding habitability or, in the absence of such local codes,
in accordance with the housing quality standards promulgated by
the Secretary pursuant to subparagraph (b) of this Section.
Requires annual inspections by the PHAs. Inspection results
must be retained and submitted upon request to the Secretary,
to the HUD Inspector General, or to any auditor conducting an
audit pursuant to Section 541.
Section 233--Employment of residents
Sets forth conforming amendments to Section 3 of the
Housing and Urban Development Act of 1968, which allows PHAs to
employ residents in any capacity and requires that contractors
and subcontractors must use their best efforts to employ and
train residents of public housing.
Section 234--Resident councils and resident management corporations
Authorizes formation of resident councils by residents of a
public housing development to consider issues relating to
resident interests and to consult with the PHA. A council shall
be representative of the residents, adopt written procedures
for the election of officers, and have a democratically elected
governing board.
Authorizes residents to create resident management
corporations (RMC) for purposes of assuming management
functions or purchasing developments. A RMC must be organized
under state law, have as its sole voting members the residents
of the development, and be supported by the resident council
or, in the absence of a resident council, by a majority of the
households of the development.
Section 235--Management by resident management corporation
Allows a PHA to contract with a RMC to manage one or more
developments. The contract must require the corporation to
follow the relevant rules and laws of this Act, and may include
specific terms relevant to all other management issues. The RMC
must provide the PHA with bonding or insurance related to loss,
theft, embezzlement, or fraudulent acts on the part of the RMC
or its employees. Sets forth the requirements for each contract
regarding funding of the RMC by the PHA.
Section 236--Transfer of management of certain housing to independent
manager at request of residents
Permits the Secretary, at the request of the residents, to
transfer the management of any portion of a development,
including an entire development, to an independent management
entity in certain, specified circumstances. Requires that
transfers of management be approved by a majority of the
resident council.
Section 237--Resident opportunity program
Reauthorizes for one year at $15 million the Resident
Opportunity Program which encourages, among other things, the
formation of resident management entities. Requires a report
from the Secretary assessing the program three years after the
date of enactment of this Act.
Subtitle D--Homeownership
Section 251--Resident homeownership programs
Authorizes PHAs to design homeownership programs for sale
of public housing units to public housing residents, to
entities for resale to residents or other low-income persons,
or directly to low-income persons. There is a downpayment
requirement of one percent of the purchase price of any unit,
to be provided by the purchasing family. Resale restrictions
are imposed on purchasers for five years after sale to prevent
purely speculative purchases. Homeownership programs under this
section are not subject to the demolition or disposition
requirements of Section 261 of this Act. Allows high-performing
PHAs to use proceeds from disposition of scatter-site public
housing to purchase replacement scattered-site housing which
will be considered public housing.
Subtitle E--Disposition, Demolition, and Revitalization of Developments
Section 261--Requirements for demolition and disposition of
developments
Eliminates the requirement that a PHA replace, on a one-
for-one basis, every unit of public housing that the PHA
disposes of or demolishes. However, if housing units are
provided in property that was previously public housing and
subsequently was demolished, the PHA shall seek to ensure that
25 percent of the new units will be reserved for low-income
families.
Provides PHAs with the parameters by which they may
demolish or dispose of certain nonviable or nonmarketable
developments consistent with their community improvement plan.
Included are developments that are located in unsuitable
locations, severely distressed or obsolete, financially
infeasible for rehabilitation or operation, and developments
retention of which are not in the best interests of the PHA.
Parameters exist for partial disposition of demolition of a
development, as well as for disposition of undeveloped
property.
Requires the Local Housing Management Plan to include
details relating to most aspects of any proposal to demolish or
dispose of property, including the purpose of the action, how
proceeds will be used, and plans for relocation of any
displaced residents. Requires 2 independent appraisals for land
valued over $100,000 before demolition or disposition of public
housing development. In emergency circumstances PHAs may
demolish or dispose of units not included in the plan.
Requires the PHA to consult with local officials and
residents of the development. Resident organizations and
resident management organizations are given special notice of
disposition and a special right to purchase the project.
Requires notification to tenants in public housing developments
subject to demolition or disposition, and requires counseling
for displaced families. Other relocation procedures for
displaced families are defined.
The permitted uses of any proceeds from disposition include
payment of project costs and other obligations, providing
additional housing assistance, job training, child care, or
supportive services, and inducing private commercial
enterprises on public housing sites.
Section 262--Demolition, site revitalization, replacement housing, and
choice-based assistance grants for developments
Authorizes grants for fiscal years 1998, 1999, and 2000 of
$500 million for each year, to be used to demolish obsolete or
severely distressed public housing developments, to revitalize
sites, to decrease overdue concentrations of poverty, and to
provide choice-based housing in connection with any of these
efforts. A PHA must contribute 5 percent of the grant amount.
Eligible activities include provision of services to residents,
butexpenditures for services must not exceed 10 percent of the
grant amount. The Secretary is to issue cost limits on eligible
activities. If a PHA does not use the funds provided in a timely
manner, the Secretary has the power to withdraw the funds and redirect
the amounts to other entities. The Secretary is required to provide an
annual report on activities taken under this section.
Section 263--Voluntary voucher system for public housing
Enables a PHA, in its discretion, to convert a public
housing development to a housing voucher system. The PHA must
submit a conversion assessment plan which shows the consistency
of such conversion with the local housing management plan,
describes the future use of the public housing development, and
shows that the cost of such conversion is less expensive than
continuing assistance as public housing. The Secretary has
discretionary authority to waive these requirements or provide
for a streamlined assessment. Requires tenant notification and
counseling for displaced families. Provides choice-based
assistance and reasonable relocation expenses to displaced
families.
Subtitle F--Mixed-Finance Public Housing
Section 265--Authority
Allows the Secretary to authorize a PHA to use grant
amounts under Section 262 or amounts from the capital fund to
produce mixed-finance housing developments or replace or
revitalize existing public housing units connected with mixed-
finance housing developments.
Section 266--Mixed-finance housing developments
Provides definition of mixed-finance housing. Allows mixed-
finance housing developments to be produced, or revitalized and
owned by (1) a PHA or entity affiliated with a PHA, (2) a
partnership, a limited liability company or entity in which the
PHA is a general partner, managing member or participant in
activities of the entity or (3) any entity that grants to the
PHA the option to purchase the project under certain
provisions.
Section 267--Mixed-finance housing plan
Provides that the Secretary only approve a mixed-finance
housing plan if the PHA or approved entity has the ability to
use the amounts provided under the plan effectively, the plan
provides permanent financing commitments from a sufficient
number of sources, the plan provides for use of amounts
provided under Section 265 for financing mixed-income housing,
and the plan complies with any other criteria set forth by the
Secretary.
Section 268--Rent levels for housing financed with low-income housing
tax credit
With respect to any dwelling unit in a mixed-finance
housing development that is assisted pursuant to the Low-Income
Housing Tax Credit, the rents charged to residents of such unit
shall not exceed rents allowed under laws governing Low-Income
Housing Tax Credit.
Section 269--Carry-over of assistance for replaced housing
Provides that in the case of a mixed-finance housing
development that is replacement housing for public housing
demolished or disposed of, or is the result of the
revitalization of existing public housing, the share of
assistance received from the capital and operating funds by the
PHA that owner or operated the demolished, disposed, or
revitalized housing shall not be reduced due to such actions,
except in certain circumstances.
Subtitle G--General Provisions
Section 271--Payment of non-Federal share
Allows that the use value of public housing buildings
developed or maintained by federal assistance may be used as
the non-federal share of federal programs requiring non-federal
participation in programs assisting residents.
Section 272--Authorization of appropriations for block grants
Allocates grants for each fiscal year up to and including
2002 of $2.5 billion for the capital fund and $2.9 billion for
the operating fund.
Section 273--Funding for operation safe home
Allows not more than $20 million of the amounts made
available for each fiscal year 1998 and 1999 for carrying out
the Community Partnerships Against Crime Act of 1997be
available each fiscal year for use under the Operating Safe
Home Program.
Section 274--Funding for relocation of victims of domestic violence
Allows not more than $700,000 of the amounts made available
each fiscal year up to and including 2002 for choice-based
housing assistance under Title III be made available for
relocating residents of public housing who have been subject to
domestic violence and for whom the assistance is likely to
reduce or eliminate the threat of subsequent violence to
members of the family.
TITLE III--CHOICE-BASED RENTAL HOUSING AND HOMEOWNERSHIP ASSISTANCE FOR
LOW-INCOME FAMILIES
Subtitle A--Allocation
Section 301--Authority to provide housing assistance amounts
Authorizes the Secretary to enter into contracts with PHAs
to provide assistance under this Title.
Section 302--Contracts with PHA's
Authorizes contracts with PHAs for one fiscal year. PHAs
are required to enforce the relevant housing quality standards
pursuant to Section 351(c)(4)and to establish a grievance
procedure for residents who allege non-compliance with such
quality standards.
Section 303--Eligibility of PHA's for assistance amounts
Provides that assistance may be allocated pursuant to a
formula (Section 304) only to those PHAs that: (1) have
submitted a Local Housing Management Plan for the fiscal year;
(2) have not received any notification from the Secretary that
such plan is not in compliance with all requirements; (3) have
no members on the Board that have been convicted of a felony;
and (4) have not been disqualified for assistance under Title
IV of this Act.
Section 304--Allocation of amounts
Requires the Secretary to develop a formula, pursuant to
negotiated rulemaking, for allocating assistance based, in
part, on census data, the various needs of the community, and
its comprehensive housing affordability strategy. The Secretary
may recapture up to 50 percent of any funds that remain
unobligated by a PHA for a period of eight months or more after
receipt of the funds.
Requires the Secretary to determine the set-aside for an
Indian tenant-based program.
Section 305--Administrative fees
Sets administrative fees for PHAs at 7.5 percent of their
grant amount for the first 600 units and 7.0 percent of the
grant amount for all units in excess of 600. The Secretary may
increase this fee in certain circumstances.
The Secretary shall ensure that, in cases where more than
one PHA has jurisdiction over an area where a recipient of
choice-based assistance resides, the PHA actually administering
the assistance shall receive the fee.
Section 306--Authorizations of appropriations
Authorizes $1,861,668,000 grant under this Title as the
appropriation level for each fiscal year through 2002,
including $50 million for nonelderly, disabled families for
each fiscal year. The Secretary and Inspector General shall
make money available out of choice-based housing assistance for
relocation of witnesses in connection with efforts to combat
crime in public and assisted housing.
Section 307--Conversion of section 8 assistance
Requires conversion of section 8 assistance that remains
unused as of the effective date of this Act to choice-based
assistance under this Title, unless the Secretary determines
such conversion would be inconsistent with existing
commitments.
Section 308--Recapture and reuse of annual contract project reserves
under choice-based housing assistance and section 8 tenant-based
assistance programs
Requires the HUD Secretary to recapture excess Section 8
contract reserves, from both project-based and tenant-based
assistance contracts, to hold until needed to enter into,
amend, or renew Section 8 contracts.
Subtitle B--Choice-Based Housing Assistance for Eligible Families
Section 321--Eligible families and preferences for assistance
Requires that assistance under this Title be provided to
families who are low-income families or otherwise qualified by
federal law. Not less than 40 percent of the families receiving
assistance under this Title shall have incomes not exceeding 30
percent of area median income. Income reviews shall take place
annually. Local preferences may be established by a PHA after a
public hearing and an opportunity for interested parties to
comment.
Assistance is portable on a national scale. Families may
not receive assistance, however, if they have moved as a result
of an eviction due to a lease violation. A PHA may, for a
family applying for assistance under this Title that does not
at the time of application live in that PHA's jurisdiction,
require such family to live in the jurisdiction of the PHA for
twelve months after beginning assistance to the family.
Confidentiality is provided for victims of domestic violence.
Provides a sense of the Congress that PHAs should adopt
preferences for individuals who are victims of domestic
violence.
Section 322--Resident contribution
Provides that an assisted family shall pay as rent no more
than (i) 30 percent of the adjusted income of the family, (ii)
10 percent of the monthly income of the family, or (iii) that
portion of a welfare payment designated as housing assistance,
provided, however, that every family shall pay a minimum rental
amount to be established by the PHA. Minimum rent shall not be
less than $25 nor more than $50, with certain hardship
exemptions provided. Monthly contribution increases for a
family greater than $15 per month which result from provisions
of this Act (except as a result of imposition of the minimum
rent requirement) shall be implemented in phases.
Section 323--Rental indicators
Requires the Secretary to establish and to publish annually
rental indicators for a market area that may vary depending on
the size and type of the dwelling unit. The rental indicators
shall be adjusted annually based on the most recent available
data.
Section 324--Lease terms
Allows the owner of property to utilize leases that are of
twelve months duration, restricted only in accordance with
Section 325 (concerning termination), and that are in the
standard form of leases used in the local housing market.
Section 325--Termination of tenancy
Allows owners to terminate leases for any criminal activity
on the part of the tenants, including drug crimes. Requires
that leases include provisions notifying residents that cause
for termination includes any such acts within a resident's
unit. An owner must terminate tenancy in accordance with
applicable State or local laws, including any notice provisions
as required by law.
Section 326--Eligible owners
Prescribes that eligible owners include individuals or
entities that have not been debarred from participating in
Federal programs.
Section 327--Selection of dwelling units
Permits the assisted family to make the determination of
which dwelling unit they will lease provided the dwelling unit
does not violate local deed restrictions.
Section 328--Eligible dwelling units
Limits eligible dwelling units to those that are not
located in a nursing home, penal, reformatory, medical, mental,
or similar public or private institution. Each unit must be
maintained to the extent required by the local jurisdiction's
laws, regulations, standards, or codes regarding habitability
or, if the local jurisdiction does not have such laws,
regulations, standards, or codes, than the unit must be
maintained at a standard to be set by the Secretary.
Requires the PHA to inspect each dwelling unit at least
annually and to retain records or inspection by the Secretary,
the Inspector General, or any auditor conducting an audit under
Section 541 of this Act.
Section 329--Homeownership option
Allows a PHA to use funds under this Title to assist low-
income families in achieving homeownership. Eligible families
must have sufficient income from employment or sources other
than public assistance and must meet initial and continuing
requirements established by the PHA. A PHA may establish a
minimum downpayment requirement, with certain restrictions.
Section 330--Assistance for rental of manufactured homes
Provides that a PHA may provide assistance to low-income
families under this Title for rental of manufactured housing.
Sets forth requirements for entering into housing assistance
contracts for those families who own the manufactured home but
pay rent to the owner of land on which the home is located.
Subtitle C--Payment of Housing Assistance on Behalf of Assisted
Families
Section 351--Housing assistance payments contracts
Allows PHAs to enter into contracts with owners by which
owners screen residents and provide units for eligible
families, and for which the PHAs make payments directly to the
owners on behalf of eligible families. A PHA may enter into a
contract with itself for units it manages or owns. The term of
the contract shall be not more than 12 months, and a lease
pursuant to such a contract must conform with Sections 324,
325, 328(a)(2), 642 and 643 of this Act.
Section 352--Amount of monthly assistance payment
Provides that the monthly payment for assistance under this
Title shall be (a) in the case of a unit with gross rent that
exceeds the payment standard under section 353, the payment
standard less the resident's contribution, and (b) in the case
of a unit with gross rent that is less than the payment
standard under section 353, the amount by which the gross rent
exceeds the resident's contribution (gross rent less the
resident's contribution). In the case of (b), 50 percent of the
difference between the payment standard and the gross rent
shall be escrowed on behalf of the tenant; the remainder is
returned to the U.S. Treasury.
Section 353--Payment standards
Permits each PHA providing assistance under this Title to
establish payment standards for varying size and type dwelling
units in their local market areas. The payment standard shall
be an amount that is not less than 80 percent and not greater
than 120 percent of the rental indicators for the area as
established under Section 323 of this Title.
Section 354--Reasonable rents
Permits the rent to be set at levels based upon a
negotiation between the owner and the renter. The PHA, however,
shall determine whether the rent negotiated exceeds the rent
charged for comparable units. If the PHA determines that the
rent negotiated exceeds comparable rents, it shall notify the
renter and may refuse to provide the payments for such units.
Section 355--Prohibition of assistance for vacant rental units
Prohibits payments to units vacated by residents, beginning
on the first month after the resident vacates the unit.
Subtitle D--General and Miscellaneous Provisions
Section 371--Definitions
Sets forth definitions of terms used in the Act.
Section 372--Rental assistance fraud recoveries
Permits PHAs to retain the greater of 50 percent of the
amounts recaptured from renters who abuse the program or
expenses of the collection effort. The PHAs must use the
proceeds within the assistance program.
Section 373--Study regarding geographic concentration of assisted
families
Requires the Secretary to conduct a study which addresses
and resolves the problems associated with the concentration of
assisted families in Cook County, Illinois.
Section 374--Study regarding rental assistance
Requires the HUD Secretary to conduct a nationwide study of
the choice-based housing assistance program and the Section 8
tenant-based rental assistance regarding: housing providers,
the physical and demographic conditions of assisted housing,
total number of units for which assistance is provided,
duration families remain on waiting lists before receiving
assistance, and an assessment of the extent and quality of
housing owners participation in relation to local housing
market including availability and quality of housing. The
Secretary shall submit the report to Congress no later than two
years from date of enactment of this Act.
TITLE IV--HOME RULE FLEXIBLE GRANT OPTION
section 401--purpose
States purpose as providing local governments with greater
flexibility in designing and administering federal housing
assistance so that they may give incentives for self-
sufficiency, cost reduction, expansion of housing choices, or
reduction of geographic concentrations of poverty.
section 402--flexible grant program
Provides that a jurisdiction may, upon review and approval
of the Secretary, combine federal housing assistance that would
otherwise have gone to the jurisdiction (public housing,
choice-based). The jurisdiction is required to enter into a
performance contract with HUD upon approval of the proposed
program. Provides that the amount of assistance to a
jurisdiction shall not be decreased because of its
participation under this Title.
section 403--covered housing assistance
Assistance available to be combined includes operating
assistance provided to a PHA (operating subsidy), modernization
funds, choice-based rental assistance under Title III, and
Section 8 housing vouchers (Section 8 project-based assistance,
which is subject to existing contracts, is not included).
section 404--program requirements
Assistance must be provided to low-income families. Rental
policies must be reasonable and designed to encourage
employment and self-sufficiency. Not less than substantially
the same number of families must be assisted, and the provision
of assistance must be consistent with local welfare reform
efforts.
section 405--applicability of certain provisions
Retains applicability of provisions governing demolition
and disposition of public housing (Section 261) and labor
standards (Section 112).
section 406--application
Jurisdictions wishing to participate must submit
applications to the Secretary, and shall be limited to periods
of one to five years. The PHA is to provide for citizen
participation in the development of the plan, to propose
performance standards that would enable HUD to monitor the
PHA's performance, and to show how the goals set forth by the
jurisdiction in the plan are to be achieved. The Secretary
shall review each application, establish performance standards,
and be responsible for approving or disapproving each
jurisdiction's proposal. The application must also include
information so the Secretary can determine that the
jurisdiction has the management capacity, the plan does not
lead to excessive duplication of administrative efforts, and
that the housing funds will remain separate for other city
funds to ensure that they are used for the purpose intended.
Allows affected PHAs to review application and submit written
comments.
section 407--training
The Secretary shall, in consultation with industry groups,
provide for technical assistance. Detailed evaluations of
thirty jurisdictions shall be conducted for purposes of
providing program models that can be replicated.
section 408--accountability
The Secretary shall monitor the performance of each
jurisdiction under its plan. Sets forth reporting requirements
for participating jurisdictions.
section 409--definitions.
Provides definitions for terms used in this Title,
including ``participating jurisdictions''.
TITLE V--ACCOUNTABILITY AND OVERSIGHT OF PUBLIC HOUSING AUTHORITIES
Subtitle A--Study of Alternative Methods for Evaluating Public Housing
Agencies
section 501--In general
States that the Secretary shall provide that a study be
conducted regarding various alternative methods of evaluating
the performance of PHAs.
section 502--purposes
States that the purpose of the study is to identify
ineffective or inefficient evaluation methods currently used by
HUD and to identify and examine various methods of evaluating
and improving the performance of PHAs as alternatives to HUD
oversight.
section 503--evaluation of various performance evaluation systems
Lists several approaches and methods of evaluating PHA
performance that the study must assess and for which it must
provide conclusions. These include the current system of HUD
monitoring, accreditation models, performance-based models,
local review options, and the use of private contractors to
conduct evaluations.
section 504--consultation
The entity chosen to conduct the study shall consult with
individuals and organizations knowledgeable about public
housing, representatives of State and local governments, and
others.
section 505--contract to conduct study
Authorizes the Secretary to enter into a contract with a
private entity capable of conducting this study, preferably the
National Academy of Public Administration.
section 506--report
An interim report to Congress is due six months after the
date of enactment of this Act, and a final report is due twelve
months after enactment.
section 507--funding
Authorizes $500,000 for the study from funds appropriated
for HUD's Office of Policy Development and Research.
section 508--effective date
This subtitle takes effect upon date of enactment of the
Act.
Subtitle B--Housing Evaluation and Accreditation Board
section 521--establishment
Establishes a Housing Evaluation and Accreditation Board
(the ``Board''). The Board is without power to act until
Congress repeals this section and provides the Board with
specific powers. This section is intended to allow Congress
time to review the evaluation study conducted pursuant to
Sections 501-508 regarding accreditation models, while creating
a duty to take future action regarding the already established
Board--either abolishing it if appropriate or setting forth its
powers.
section 522--membership
Requires the President, not later than 180 days after
enactment, to appoint 12 members to the Board: four individuals
of 10 recommended by the Secretary; four individuals of 10
recommended by the Chairman and Ranking Minority Member of the
Committee on Banking, Housing, and Urban Affairs of the Senate;
and four individuals of 10 recommended by the Chairman and
Ranking Minority Member of the Committee on Banking and
Financial Services of the House of Representatives.
Requires the membership of the Board to include two members
of Section 8 or public housing, two members who are executive
directors of PHAs, one who is a member of the Institute of Real
Estate Managers, and one member who is the owner of a
multifamily housing project which receives assistance from HUD.
Moreover, the Board shall at all times have members with
extensive experience in the following areas: residential real
estate finance; the operations of a nonprofit involved in
providing affordable housing; construction of multifamily
housing; and management of community development corporations.
No more than six members of the Board may be of the same
political party.
Mandates that members will serve one four year term, that
is staggered, with the original appointees receiving terms of
one, two, three, or four years. Standard appointment,
resignation, election of a chairperson, and other governing
rules are stated. Provides only for expenses to be reimbursed.
section 523--functions
Requires the Board to establish performance benchmarks for
PHAs and to establish a procedure for the accreditation of
PHAs.
section 524--powers
Allows the Board to hold hearings when and where it deems
appropriate. The Board may determine and adopt rules governing
its operations. The Board shall have access to any information
it needs from other federal government sources and any
information from PHAs to the same extent as the Secretary. The
Administrator of the General Services Administration shall
provide necessary reimbursable support services. HUD shall
provide, at the discretion of the Secretary, nonreimbursable
personnel to the Board.
Provides the Board with authority to contract for services
with any entity. The staff of the Board shall include an
executive director and other personnel.
section 525--fees
The Board may charge PHAs reasonable accreditation fees for
their accreditation, which funds are to be used to pay the
costs of operation of the Board. The funds will be deposited in
the U.S. Treasury and shall be available to the Board to the
extent provided in appropriation Acts.
section 526--gao audit
Activities of the Board are subject to audit by the General
Accounting Office of the United States.
Subtitle C--Interim Applicability of Public Housing Management
Assessment Program
section 531--interim applicability
The Public Housing Management Assessment Program (PHMAP)
set forth in this subtitle C shall be effective until standards
are issued by the Board pursuant to Section 523.
section 532--management assessment indicators
Requires the Secretary to publish in the Federal Register
performance measurements or indicators to assess the management
of PHAs. Included shall be indicators on vacancies, unexpended
obligated funds, housing conditions, percentage of rent
collections, energy consumption, and other such performance
measures. Sets forth certain specific considerations to be
taken into account by HUD in evaluating PHAs (such as the level
of management difficulty of particular developments).
section 533--designation of pha's
Requires designation of PHAs as: (a) troubled; (b) troubled
only in terms of their capital or modernization programs; (c)
agencies at risk of becoming troubled (``at-risk PHAs''), and
(d) exemplary PHAs. Requires designation of troubled to any PHA
that does not provide acceptable basic housing conditions. The
Secretary shall establish appeal procedures for PHAs designated
as troubled.
section 534--on-site inspection of troubled pha's
Upon designation of a PHA as troubled, an independent, on-
site assessment of the agency shall be conducted by a team of
knowledgeable individuals chosen by the Secretary.
section 535--administration
To be administered in substantially the same manner as the
Public Housing Management Assessment Program established under
Section 6(j) of the Housing Act of 1937, as in effect
immediately before the passage of this Act.
Subtitle D--Accountability and Oversight Standards and Procedures
section 541--audits
Provides certain government auditing agencies with access
to a PHA's books and records. Requires an annual audit of each
PHA with over 250 units in its inventory. The Secretary may
withhold funds if a PHA fails to comply with this requirement.
section 542--performance agreements for authorities at risk of becoming
troubled
Requires the Secretary, upon designation of a PHA as an
``at-risk'' agency, to seek to enter into an agreement with the
PHA providing for the improvement of the management of the
agency.
Authorizes the Secretary to prevent the PHA from falling
into troubled status by soliciting competitive proposals from
other PHAs or private management entities to take over
management of certain functions or developments.
Section 543--Performance agreements and CDBG sanctions for troubled
PHAs
Requires the Secretary, upon designation of a PHA as
troubled, to enter into a ``performance agreement'' with the
PHA for improving the management of the agency. Such
performance agreement shall contain specific performance
targets to be achieved by the PHA. If after twelve months the
PHA has failed to comply with the performance agreement, in the
determination of the Secretary, then the Secretary shall take
action under Section 545 governing removal of ineffective PHAs.
Authorizes the Secretary to redirect or withhold CDBG funds
for the geographical jurisdiction of the troubled PHA if the
Secretary determines that the local government has
substantially contributed to the PHA's status as troubled.
Section 544--Option to demand conveyance of title to or possession of
public housing
Contracts under Title II may provide that, upon a
substantial default by a PHA under the contract, the Secretary
may obligate the PHA to convey title of any development, in any
case necessary to achieve the purposes of this Act, or to
deliver to the Secretary possession of the development to which
such contract relates. If the contract permits the preceding
action, it also shall provide that the Secretary shall be
obligated to reconvey the asset to the PHA, or its successor-
in-interest, as soon as practicable after (1) the Secretary is
satisfied that all defaults under the contract have been cured
and (2) the PHA is able to operate in accordance with all
provisions of the contract.
Section 545--Removal of ineffective PHA's
Authorizes the Secretary to (a) solicit proposals from
other entities to manage all or part of the PHA's assets, (b)
take possession of all or part of the PHA's assets, (c) require
the PHA to make other arrangements to manage its assets, or (d)
petition for the appointment of a receiver for the PHA. Any
such action can be taken only upon a substantial default by the
PHA under its contract, or under an agreement entered into
pursuant to Section 543 of this Title, or submission to the
Secretary of a petition by the residents. The Secretary may
provide emergency assistance to a successor entity of a PHA.
Authorizes the Secretary to abrogate contracts, demolish
and dispose of assets pursuant to this Title, provide for the
establishment of additional PHAs to manage the assets, or
consolidate the assets into another consenting PHA's inventory.
When a contract is abrogated, the determination and basis for
determination shall be made public. The Secretary shall have
the maximum amount of authority and scope of powers as
available to a receiver appointed by a federal district court.
Section 546--Mandatory takeover of chronically troubled PHA's
Requires the Secretary to take-over each chronically
troubled PHA not later than 180 days after the effective date
of this Act. A ``chronically troubled public housing agency''
is defined as a PHA that has been classified as troubled for
three years or more. The Secretary may either solicit proposals
and take the necessary actions to replace management of the
agency pursuant to section 535(b)(1), take possession of the
agency pursuant to section 545(b)(2), or petition for
appointment of a receiver for the agency pursuant to Section
545(b)(5).
Section 547--Treatment of troubled PHA's
Requires the local government with jurisdiction over a
troubled PHA to describe in its comprehensive housing
affordability strategy or consolidated plan how it intends to
assist the agency.
Section 548--Maintenance of records
Requires each PHA to maintain appropriate records. The
Secretary and the Comptroller General of the United States
shall have access to such records.
Section 549--Annual reports regarding troubled PHA's
Requires the Secretary to submit a report to Congress that
identifies PHAs that are troubled or at-risk of becoming
troubled and any action taken pursuant to Sections 542, 543,
544, and 545.
Section 550--Applicability to resident management corporations
Applies this subtitle's provisions to resident management
corporations.
Section 551--Advisory council for the Housing Authority of New Orleans
Establishes an advisory council for the Housing Authority
of New Orleans (HANO) composed of the Inspector General of HUD
(or a designee) and not more than seven appointed members.
Provides payment of expenses but not compensation for council
members.
The council shall provide advice, expertise and
recommendations to HANO. In addition, the council shall
establish standards and guidelines for assessing the
performance of HANO in carrying out operational, asset
management and financial functions for quarterly reports and a
final findings report submitted to Congress and the Secretary
after 18 months of enactment of this Act. The final finding
report shall assess whether HANO should continue to operate as
manager of public housing given the progress it has made in
performance and overall conditions.
TITLE VI--REPEALS AND RELATED AMENDMENTS
Subtitle A--Repeals, Effective Date, and Savings Provision
Section 601--Effective date and repeal of United States Housing Act of
1937
The effective date of the Act is the date which is six
months after the date of enactment of the Act. This is done so
that any unforeseen consequences arising from the repeal of the
1937 Act may be addressed. In addition, the Secretary may, by
notice to Congress, delay the effective date of any provision
of this Act until a later date (no later than October 1, 1998)
in order to avoid hardship or if necessary for program
administration. A savings provision is included to govern prior
obligations made under the provisions of the 1937 Act. Excludes
Section 8 project-based assistance from the provisions of this
Act. Eliminates the requirement that owners grant one year
notice to tenants prior to termination of a Section 8 contract.
Section 602--Other repeals
Repeals specific provisions of various housing legislation
(i.e. Public Housing One-Stop Perinatal Services Demonstration,
Public Housing Energy Efficiency Demonstration, etc.).
Subtitle B--Other Provisions Relating to Public Housing and Rental
Assistance Programs
Section 621--Allocation of elderly housing amounts
Amends Section 202(l) of the Housing Act of 1959, to
require that funds available under such section shall be
allocated so that the awards go to projects of sufficient size
to accommodate facilities for supportive services for the frail
elderly.
Section 622--Pet ownership
Provides that a resident of a federally-assisted dwelling
unit may own common household pets, subject to reasonable
requirements of the owner of the facility. Provides that a PHA
may not exempt any resident from paying any deposit required in
connection with the resident's ownership of a pet. This section
applies to public housing, Section 8 project-based housing
under the 1937 Act, elderly housing under Section 202 of the
Housing Act of 1959, and certain other housing programs. The
Secretary shall issue regulations to carry out this section
within one year of enactment.
Section 623--Review of drug elimination program contracts
The Secretary is to review all security contracts awarded
under the Public Housing and Assisted Housing Drug Elimination
Act of 1990 to determine whether the contractors under such
contracts have complied with federal anti-discrimination laws
and other requirements.
Section 624--Amendments to Public and Assisted Housing Drug Elimination
Act of 1990
Amends certain provisions of the Anti-Drug Abuse Act of
1988, and inserts a new chapter entitled the ``Community
Partnerships Against Crime Act of 1997,'' which broadens the
scope of the Public Housing Drug Elimination Act of 1990 to
apply to all types of crime, and not simply drug-related
crimes. The Secretary may make grants for use in eliminating
crime in and around public housing and other federally assisted
low-income housing projects.
Requires that the Secretary provide a grant for each PHA
with over 250 units that applies, as long as in the
application, the PHA demonstrates that it has need of the grant
amounts based on crime statistics showing (I) the crime rate in
or around the public housing development is higher than for the
jurisdiction in which the agency operates, (II) the crime rate
for the development is increasing over a period to indicate a
general trend, and (III) the operation of the program under
this chapter contributes to the reduction in crime.
A five-year crime deterrence and reduction plan must be
included with each grant application. The amount of the grant
shall be a pro rata amount of the funds appropriated, to be
determined based on the number of units of the PHA as compared
to the total number of units of all PHAs over 250 units which
apply for the grants. PHAs with less than 250 units and owners
of federally-assisted low-income housing are subject to
different requirements.
An authorization of $290 million is provided for each of
fiscal years 1998 through 2002, to be used as follows: 85
percent for PHAs with 250 units or more; 10 percent for PHAs
with less than 250 units; and 5 percent for owners of
federally-assisted housing. Requires proceeds of forfeiture
that are transferred to the Office of the IG of HUD to be
credited to Operation Safe Home activities.
Subtitle C--Limitations Relating to Occupancy in Federally Assisted
Housing
Section 641--Screening of applicants
Provides that a family is ineligible for federally-assisted
housing for three years if evicted by reason of drug-related
criminal activity or for a reasonable time (as may be
determined by the PHA) for other criminal activity. A PHA or
owner of federally-assisted housing shall establish standards
prohibiting admission of persons or families who the PHA
reasonably determines to be using an illegal substance or whose
use of illegal substances or alcohol would interfere with the
health, safety, or right to peaceful enjoyment of the premises
by other residents.
A PHA or owner of federally-assisted housing may deny
admission to any applicant household that, during a reasonable
period prior to applying for housing assistance, had engaged in
any criminal activity. A PHA or federally-assisted housing
owner may require that an applicant household prior to
admission authorize the PHA to obtain any relevant criminal
records from the National Crime Information Center, police
departments, and other law enforcement agencies.
For purposes of determining eligibility for housing
assistance, a person shall not be considered to have a
disability or handicap solely because of the prior or current
use of an illegal substance or alcohol.
Section 642--Termination of tenancy and assistance for illegal drug
users and alcohol abusers
Requires a PHA or owner of federally-assisted housing to
establish safeguards and lease provisions allowing termination
of assistance to residents who the PHA or owner determines to
be engaging in the use of a controlled substance or whose
illegal use of a controlled substance interferes with the
health, safety, or right to peaceful enjoyment of the premises
by other residents.
Section 643--Lease requirements
Provides that leases shall contain provisions setting forth
grounds for termination that include criminal activity and
activity which threaten the health and safety of other
residents.
Section 644--Availability of criminal records for tenant screening and
eviction
Provides that the National Crime Information Center, police
departments, state law enforcement agencies designated as
registration agencies under a state registration program, or
other law enforcement agencies shall provide to the PHA upon
its request information regarding the criminal background of an
adult applicant for housing assistance. An applicant must be
given an opportunity to dispute any such information. PHAs may
be charged a reasonable fee for provision of the information.
Section 645--Definitions
Sets forth definitions of certain terms used in this
subtitle.
TITLE VII--AFFORDABLE HOUSING AND MISCELLANEOUS PROVISIONS
Section 701--Rural housing assistance
Designates the city of Altus, Oklahoma as a rural area
until receipt of data from the decennial census in the year
2000.
Section 702--Treatment of occupancy standards
Prohibits HUD from establishing, directly or indirectly, a
national occupancy standard.
Section 703--Implementation of plan
Orders the Secretary to implement the Ida Barbour
Revitalization Plan of the City of Portsmouth, Virginia, within
120 days after the date of enactment of this Act.
Section 704--Income eligibility for HOME and CDBG programs
Amends the National Affordable Housing Act to prevent HUD
from lowering income eligibility levels for individual
communities.
Section 705--Prohibition of use of CDBG grants for employment
relocation activities
Amends Section 105 of the Housing and Community Development
Act to prevent a locality from using CDBG funds to facilitate
relocation of a business to that locality from another
community.
Section 706--Use of American products
States a sense of the Congress that all equipment and
products purchased with funds made available under this Act be
American made.
Section 707--Consultation with affected areas in settlement of
litigation
Requires HUD to consult with the unit of local government
before entering into a settlement agreement regarding public
housing or rental assistance within the jurisdiction of that
unit of local government.
Section 708--Use of assisted housing by aliens
Makes certain technical drafting corrections to the Illegal
Immigration Reform and Immigrant Responsibility Act of 1996
(the Immigration Reform Act). The corrections are necessary to
prevent a PHA from having the option not to enforce the
provisions of the Immigration Reform Act contrary to the intent
of Congress.
Section 709--Effective date
The effective date of this Title is upon enactment of the
Act.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3 of rule XIII of the Rules of the
House of Representatives, changes in existing law made by the
bill, as reported, are shown as follows (existing law proposed
to be omitted is enclosed in black brackets, new matter is
printed in italics, existing law in which no change is proposed
is shown in roman):
SECTION 3 OF THE HOUSING AND URBAN DEVELOPMENT ACT OF 1968
SEC. 3. ECONOMIC OPPORTUNITIES FOR LOW- AND VERY LOW-INCOME PERSONS.
(a) Findings.--The Congress finds that--
* * * * * * *
(c) Employment.--
(1) Public and indian housing program.--
(A) In general.--The Secretary shall require
that [public and Indian housing agencies]
public housing agencies and recipients of
grants under the Native American Housing
Assistance and Self-Determination Act of 1996,
and their contractors and subcontractors, make
their best efforts, consistent with existing
Federal, State, and local laws and regulations,
to give to low- and very low-income persons the
training and employment opportunities generated
by [development assistance provided pursuant to
section 5 of the United States Housing Act of
1937, operating assistance provided pursuant to
section 9 of that Act, and modernization grants
provided pursuant to section 14 of that Act.]
assistance provided under title II of the
Housing Opportunity and Responsibility Act of
1997 and used for the housing production,
operation, or capital needs.
(B) Priority.--The efforts required under
subparagraph (A) shall be directed in the
following order of priority:
(i) * * *
(ii) To residents of other
developments [managed by the public or
Indian housing agency] assisted by the
public housing agency or the recipient
of a grant under the Native American
Housing Assistance and Self-
Determination Act of 1996 that is
expending the assistance.
* * * * * * *
(d) Contracting.--
(1) Public and indian housing program.--
(A) In general.--The Secretary shall require
that [public and Indian housing agencies]
public housing agencies and recipients of
grants under the Native American Housing
Assistance and Self-Determination Act of 1996,
and their contractors and subcontractors, make
their best efforts, consistent with existing
Federal, State, and local laws and regulations,
to award contracts for work to be performed in
connection with [development assistance
provided pursuant to section 5 of the United
States Housing Act of 1937, operating
assistance provided pursuant to section 9 of
that Act, and modernization grants provided
pursuant to section 14 of that Act] assistance
provided under title II of the Housing
Opportunity and Responsibility Act of 1997 and
used for the housing production, operation, or
capital needs, to business concerns that
provide economic opportunities for low- and
very low-income persons.
(B) Priority.--The efforts required under
subparagraph (A) shall be directed in the
following order of priority:
(i) * * *
(ii) To business concerns that
provide economic opportunities for
residents of other housing developments
[operated by the public and Indian
housing agency] assisted by the public
housing agency or the recipient of a
grant under the Native American Housing
Assistance and Self-Determination Act
of 1996 that is providing the
assistance.
* * * * * * *
----------
UNITED STATES HOUSING ACT OF 1937
[TITLE I--GENERAL PROGRAM OF ASSISTED HOUSING
[short title
[Section 1. This Act may be cited as the ``United States
Housing Act of 1937''.
[declaration of policy
[Sec. 2. It is the policy of the United States to promote the
general welfare of the Nation by employing its funds and
credit, as provided in this Act, to assist the several States
and their political subdivisions to remedy the unsafe and
unsanitary housing conditions and the acute shortage of decent,
safe, and sanitary dwellings for families of lower income and,
consistent with the objectives of this Act, to vest in local
public housing agencies the maximum amount of responsibility in
the administration of their housing programs. No person should
be barred from serving on the board of directors or similar
governing body of a local public housing agency because of his
tenancy in a low-income housing project.
[rental payments; definitions
[Sec. 3. (a)(1) Dwelling units assisted under this Act shall
be rented only to families who are low-income families at the
time of their initial occupancy of such units. Reviews of
family income shall be made at least annually. Except as
provided in paragraph(2), a family shall pay as rent for a
dwelling unit assisted under this Act (other than a family assisted
under section 8(o) or (y) or paying rent under section 8(c)(3)(B)) the
highest of the following amounts, rounded to the nearest dollar:
[(A) 30 per centum of the family's monthly adjusted
income;
[(B) 10 per centum of the family's monthly income; or
[(C) if the family is receiving payments for welfare
assistance from a public agency and a part of such
payments, adjusted in accordance with the family's
actual housing costs, is specifically designated by
such agency to meet the family's housing costs, the
portion of such payments which is so designated.
[(2) Notwithstanding paragraph (1), a public housing
agency may--
[(A) adopt ceiling rents that reflect the
reasonable market value of the housing, but
that are not less than the monthly costs--
[(i) to operate the housing of the
agency; and
[(ii) to make a deposit to a
replacement reserve (in the sole
discretion of the public housing
agency); and
[(B) allow families to pay ceiling rents
referred to in subparagraph (A), unless, with
respect to any family, the ceiling rent
established under this paragraph would exceed
the amount payable as rent by that family under
paragraph (1).
[(b) When used in this Act:
[(1) The term ``low-income housing'' means decent, safe, and
sanitary dwellings assisted under this Act. The term ``public
housing'' means low-income housing, and all necessary
appurtenances thereto, assisted under this Act other than under
section 8. When used in reference to public housing, the term
``low-income housing project'' or ``project'' means (A) housing
developed, acquired, or assisted by a public housing agency
under this Act, and (B) the improvement of any such housing.
[(2) The term ``low-income families'' means those families
whose incomes do not exceed 80 per centum of the median income
for the area, as determined by the Secretary with adjustments
for smaller and larger families, except that the Secretary may
establish income ceilings higher or lower than 80 per centum of
the median for the area on the basis of the Secretary's
findings that such variations are necessary because of
prevailing levels of construction costs or unusually high or
low family incomes. The term ``very low-income families'' means
low-income families whose incomes do not exceed 50 per centum
of the median family income for the area, as determined by the
Secretary with adjustments for smaller and larger families,
except that the Secretary may establish income ceilings higher
or lower than 50 per centum of the median for the area on the
basis of the Secretary's findings that such variations are
necessary because of unusually high or low family incomes. Such
ceilings shall be established in consultation with the
Secretary of Agriculture for any rural area, as defined in
section 520 of the Housing Act of 1949, taking into account the
subsidy characteristics and types of programs to which such
ceilings apply. In determining median incomes (of persons,
families, or households) for an area or establishing any
ceilings or limits based on income under this Act, the
Secretary shall determine or establish area median incomes and
income ceilings and limits for Westchester County, in the State
of New York, as if such county were an area not contained
within the metropolitan statistical area in which it is
located. In determining such area median incomes or
establishing such income ceilings or limits for the portion of
such metropolitan statistical area that does not include
Westchester County, the Secretary shall determine or establish
area median incomes and income ceilings and limits as if such
portion included Westchester County.
[(3) Persons and families.--
[(A) Single persons.--The term ``families'' includes
families consisting of a single person in the case of
(i) an elderly person, (ii) a disabled person, (iii) a
displaced person, (iv) the remaining member of a tenant
family, and (v) any other single persons. In no event
may any single person under clause (v) of the first
sentence be provided a housing unit assisted under this
Act of 2 or more bedrooms. In determining priority for
admission to housing under this Act, the Secretary
shall give preference to single persons who are
elderly, disabled, or displaced persons before single
persons who are eligible under clause (v) of the first
sentence.
[(B) Families.--The term ``families'' includes
families with children and, in the cases of elderly
families, near-elderly families, and disabled families,
means families whose heads (or their spouses), or whose
sole members, are elderly, near-elderly, or persons
with disabilities, respectively. The term includes, in
the cases of elderly families, near-elderly families,
and disabled families, 2 or more elderly persons, near-
elderly persons, or persons with disabilities living
together, and 1 or more such persons living with 1 or
more persons determined under the regulations of the
Secretary to be essential to their care or well-being.
[(C) Absence of children.--The temporary absence of a
child from the home due to placement in foster care
shall not be considered in determining family
composition and family size.
[(D) Elderly person.--The term ``elderly person''
means a person who is at least 62 years of age.
[(E) Person with disabilities.--The term ``person
with disabilities'' means a person who--
[(i) has a disability as defined in section
223 of the Social Security Act,
[(ii) is determined, pursuant to regulations
issued by the Secretary, to have a physical,
mental, or emotional impairment which (I) is
expected to be of long-continued and indefinite
duration, (II) substantially impedes his or her
ability to live independently, and (III) is of
such a nature that such ability could be
improved by more suitable housing conditions,
or
[(iii) has a developmental disability as
defined in section 102 of the Developmental
Disabilities Assistance and Bill of Rights Act.
Such term shall not exclude persons who have the
disease of acquired immunodeficiency syndrome or any
conditions arising from the etiologic agent for
acquired immunodeficiency syndrome.
[(F) Displaced person.--The term ``displaced person''
means a person displaced by governmental action, or a
person whose dwelling has been extensively damaged or
destroyed as a result of a disaster declared or
otherwise formally recognized pursuant to Federal
disaster relief laws.
[(G) Near-elderly person.--The term ``near-elderly
person'' means a person who is at least 50 years of age
but below the age of 62.
[(4) The term ``income'' means income from all sources of
each member of the household, as determined in accordance with
criteria prescribed by the Secretary, in consultation with the
Secretary of Agriculture, except that any amounts not actually
received by the family and any amounts which would be eligible
for exclusion under section 1613(a)(7) of the Social Security
Act (42 U.S.C. 1382b(a)(7)) may not be considered as income
under this paragraph.
[(5) The term ``adjusted income'' means the income which
remains after excluding--
[(A) $550 for each member of the family
residing in the household (other than the head
of the household or his spouse) who is under 18
years or age or who is 18 years of age or older
and is disabled or handicapped or a full-time
student;
[(B) $400 for any elderly or disabled family;
[(C) the amount by which the aggregate of the
following expenses of the family exceeds 3
percent of annual family income: (i) medical
expenses for any family; and (ii) reasonable
attendant care and auxiliary apparatus expenses
for each handicapped member of any family, to
the extent necessary to enable any member of
such family (including such handicapped member)
to be employed;
[(D) child care expenses to the extent
necessary to enable another member of the
family to be employed or to further his or her
education;
[(E) 10 percent of the earned income of the
family;
[(F) any payment made by a member of the
family for the support and maintenance of any
child, spouse, or former spouse who does not
reside in the household, except that the amount
excluded under this subparagraph shall not
exceed the lesser of (i) the amount that such
family member has a legal obligation to pay; or
(ii) $550 for each individual for whom such
payment is made;
[(G) excessive travel expenses, not to exceed
$25 per family per week, for employment- or
education-related travel, except that this
subparagraph shall apply only to families
assisted by Indian housing authorities.
[(H) for public housing, any other
adjustments to earned income established by the
public housing agency. If a public housing
agency adopts other adjustments to income
pursuant to subparagraph (H), the Secretary
shall not take into account any reduction of or
increase in the public housing agency's per
unit dwelling rental income resulting from
those adjustments when calculating the
contributions under section 9 for the public
housing agency for the operation of the public
housing.
[(6) The term ``public housing agency'' means any State,
county, municipality, or other governmental entity or public
body (or agency or instrumentality thereof) which is authorized
to engage in or assist in the development or operation of low-
income housing. The term includes any Indian housing authority.
[(7) The term ``State'' includes the several States, the
District of Columbia, the Commonwealth of Puerto Rico, the
territories and possessions of the United States, the Trust
Territory of the Pacific Islands, and Indian tribes.
[(8) The term ``Secretary'' means the Secretary of Housing
and Urban Development.
[(9) The term ``Indian'' means any person recognized as being
an Indian or Alaska Native by an Indian tribe, the Federal
Government, or any State.
[(10) The term ``Indian area'' means the area within which an
Indian housing authority is authorized to provide low-income
housing.
[(11) The term ``Indian housing authority'' means any entity
that--
[(A) is authorized to engage in or assist in the
development or operation of low-income housing for
Indians; and
[(B) is established--
[(i) by exercise of the power of self-
government of an Indian tribe independent of
State law; or
[(ii) by operation of State law providing
specifically for housing authorities for
Indians, including regional housing authorities
in the State of Alaska.
[(12) The term ``Indian tribe'' means any tribe, band,
pueblo, group, community, or nation of Indians or Alaska
Natives.
[(c) When used in reference to public housing:
[(1) The term ``development'' means any or all undertakings
necessary for planning, land acquisition, demolition,
construction, or equipment, in connection with a low-income
housing project. The term ``development cost'' comprises the
costs incurred by a public housing agency in such undertakings
and their necessary financing (including the payment of
carrying charges), and in otherwise carrying out the
development of such project. Construction activity in
connection with a low-income housing project may be confined to
the reconstruction, remodeling, or repair of existing
buildings.
[(2) The term ``operation'' means any or all undertakings
appropriate for management, operation, services, maintenance,
security (including the cost of security personnel), or
financing in connection with a low-income housing project. The
term also means the financing of tenant programs and services
for families residing in low-income housing projects,
particularly where there is maximum feasible participation of
the tenants in the development and operation of such tenant
programs and services. As used in this paragraph, the term
``tenant programs and services'' includes the development and
maintenance of tenant organizations which participate in the
management of low-income housing projects; the training of
tenants to manage and operate such projects and the utilization
of their services in project management and operation;
counseling on household management, housekeeping, budgeting,
money management, child care, and similar matters; advice as to
resources for job training and placement, education, welfare,
health, and other community services; services which are
directly related to meeting tenant needs and providing a
wholesome living environment; and referral to appropriate
agencies in the community when necessary for the provision of
such services. To the maximum extent available and appropriate,
existing public and private agencies in the community shall be
used for the provision of such services.
[(3) The term ``acquisition cost'' means the amount prudently
required to be expended by a public housing agency in acquiring
property for a low-income housing project.
[The earnings of and benefits to any public housing resident
resulting from participation in a program providing employment
training and supportive services in accordance with the Family
Support Act of 1988, section 22 of this Act, or any comparable
Federal, State, or local law shall not be considered as income
for the purposes of determining a limitation on the amount of
rent paid by the resident during--
[(1) the period that the resident participates in
such program; and
[(2) the period that--
[(A) begins with the commencement of
employment of the resident in the first job
acquired by the person after completion of such
program that is not funded by assistance under
this Act; and
[(B) ends on the earlier of--
[(i) the date the resident ceases to
continue employment without good cause
as the Secretary shall determine; or
[(ii) the expiration of the 18-month
period beginning on the date referred
to in subparagraph (A).
[loans for lower income housing projects
[Sec. 4. (a) The Secretary may make loans or commitments to
make loans to public housing agencies to help finance or
refinance the development, acquisition, or operation of low-
income housing projects by such agencies. Any contract for such
loans and any amendment to a contract for such loans shall
provide that such loans shall bear interest at a rate specified
by the Secretary which shall not be less than a rate determined
by the Secretary of the Treasury taking into consideration the
current average market yield on outstanding marketable
obligations of the United States with remaining periods to
maturity comparable to the average maturities of such loans,
plus one-eighth of 1 per centum. Such loans shall be secured in
such manner and shall be repaid within suchperiod not exceeding
forty years, or not exceeding forty years from the date of the bonds
evidencing the loan, as the Secretary may determine. The Secretary may
require loans or commitments to make loans under this section to be
pledged as security for obligations issued by a public housing agency
in connection with a low-income housing project.
[(b) The Secretary may issue and have outstanding at any one
time notes and other obligations for purchase by the Secretary
of the Treasury in an amount which will not, unless authorized
by the President, exceed $1,500,000,000. For the purpose of
determining obligations incurred to make loans pursuant to this
Act against any limitation otherwise applicable with respect to
such loans, the Secretary shall estimate the maximum amount to
be loaned at any one time pursuant to loan agreements then
outstanding with public housing agencies. Such notes or other
obligations shall be in such forms and denominations and shall
be subject to such terms and conditions as may be prescribed by
the Secretary with the approval of the Secretary of the
Treasury. The notes or other obligations issued under this
subsection shall have such maturities and bear such rate or
rates of interest as shall be determined by the Secretary of
the Treasury. The Secretary of the Treasury is authorized and
directed to purchase any notes or other obligations of the
Secretary issued hereunder and for such purpose is authorized
to use as a public debt transaction the proceeds from the sale
of any securities issued under chapter 31 of title 31, United
States Code, and the purposes for which securities may be
issued under such chapter are extended to include any purchases
of such obligations. The Secretary of the Treasury may at any
time sell any of the notes or other obligations acquired by him
under this section. All redemptions, purchases, and sales by
the Secretary of the Treasury of such notes or other
obligations shall be treated as public debt transactions of the
United States.
[(c)(1) At such times as the Secretary may determine, and in
accordance with such accounting and other procedures as the
Secretary may prescribe, each loan made by the Secretary under
subsection (a) that has any principal amount outstanding or any
interest amount outstanding or accrued shall be forgiven; and
the terms and conditions of any contract, or any amendment to a
contract, for such loan with respect to any promise to repay
such principal and interest shall be canceled. Such
cancellation shall not affect any other terms and conditions of
such contract, which shall remain in effect as if the
cancellation had not occurred. This paragraph shall not apply
to any loan the repayment of which was not to be made using
annual contributions, or to any loan all or part of the
proceeds of which are due a public housing agency from
contractors or others.
[(2)(A) On the date of the enactment of the Housing and
Community Development Reconciliation Amendments of 1985, each
note or other obligation issued by the Secretary to the
Secretary of the Treasury pursuant to subsection (b), together
with any promise to repay the principal and unpaid interest
that has accrued on each note or obligation, shall be forgiven;
and any other term or condition specified by each such
obligation shall be canceled.
[(B) On September 30, 1986, and on any subsequent September
30, each such note or other obligation issued by the Secretary
to the Secretary of the Treasury pursuant to subsection (b)
during the fiscal year ending on such date, together with any
promise to repay the principal and unpaid interest that has
accrued on each note or obligation, shall be forgiven; and any
other term or condition specified by each such obligation shall
be canceled.
[(3) Any amount of budget authority (and contract authority)
that becomes available during any fiscal year as a result of
the forgiveness of any loan, note, or obligation under this
subsection shall be rescinded.
[contributions for lower income housing projects
[Sec. 5. (a)(1) The Secretary may make annual contributions
to public housing agencies to assist in achieving and
maintaining the lower income character of their projects. The
Secretary shall embody the provisions for such annual
contributions in a contract guaranteeing their payment. The
contribution payable annually under this section shall in no
case exceed a sum equal to the annual amount of principal and
interest payable on obligations issued by the public housing
agency to finance the development or acquisition cost of the
lower income project involved. Annual contributions payable
under this section shall be pledged, if the Secretary so
requires, as security for obligations issued by a public
housing agency to assist the development or acquisition of the
project to which annual contributions relate and shall be paid
over a period not to exceed 40 years.
[(2) The Secretary may make contributions (in the form of
grants) to public housing agencies to cover the development
cost of public housing projects. The contract under which such
contributions shall be made shall specify the amount of capital
contributions required for each project to which the contract
pertains, and that the terms and conditions of such contract
shall remain in effect for a 40-year period.
[(3) The amount of contributions that would be established
for a newly constructed project by a public housing agency
designed to accommodate a number of families of a given size
and kind may be established under this section for a project by
such public housing agency that would provide housing for the
comparable number, sizes, and kinds of families through the
acquisition and rehabilitation, or use under lease, of
structures that are suitable for low-income housing use and
obtained in the local market.
[(b) The Secretary may prescribe regulations fixing the
maximum contributions available under different circumstances,
giving consideration to cost, location, size, rent-paying
ability of prospective tenants, or other factors bearing upon
the amounts and periods of assistance needed to achieve and
maintain low rentals. Such regulations may provide for rates of
contribution based upon development, acquisition, or operation
costs, number of dwelling units, number of persons housed,
interest charges, or other appropriate factors.
[(c)(1) The Secretary may enter into contracts for annual
contributions aggregating not more than $7,875,049,000 per
annum, which amount shall be increased by $1,494,400,000 on
October 1, 1980, and by $906,985,000 on October 1, 1981. The
additional authority to enter into such contracts provided on
or after October 1, 1980, shall be effective only in such
amounts as may be approved in appropriation Acts. In addition,
the aggregate amount which may be obligated over the duration
of the contracts may not exceed $31,200,000 with respect to the
additional authority provided on October 1, 1980, and
$18,087,370,000 with respect to the additional authority
provided on October 1, 1981.
[(2) The Secretary shall enter into only such new contracts
for preliminary loans as are consistent with the number of
dwelling units for which contracts for annual contributions may
be entered into.
[(3) The full faith and credit of the United States is
solemnly pledged to the payment of all annual contributions
contracted for pursuant to this section, and there are hereby
authorized to be appropriated in each fiscal year, out of any
money in the Treasury not otherwise appropriated, the amounts
necessary to provide for such payments.
[(4) All payments of annual contributions pursuant to this
section shall be made out of any funds available for purposes
of this Act when such payments are due, except that funds
obtained through the issuance of obligations pursuant to
section 4(b) (including repayments or other realizations of the
principal of loans made out of such funds) shall not be
available for the payment of such annual contributions.
[(5) During such period as the Secretary may prescribe for
starting construction, the Secretary may approve the conversion
of public housing development authority for use under section
14 or for use for the acquisition and rehabilitation of
property to be used in public housing, if the public housing
agency, after consultation with the unit of local government,
certifies that such assistance would be more effectively used
for such purpose, and if the total number of units assisted
will not be less than 90 per centum of the units covered by the
original reservation.
[(6) The aggregate amount of budget authority which may be
obligated for contracts for annual contributions and for grants
under section 17 is increased by $9,912,928,000 on October 1,
1983, and by such sums as may be approved in appropriation Acts
on October 1, 1984. The aggregate amount of budget authority
that may be obligated for contracts for annual contributions
for assistance under section 8, for contracts referred to in
paragraphs (7)(A)(iv) and (7)(B)(iv), for grants for public
housing, for comprehensive improvement assistance, and for
amendments to existing contracts, is increased (to the extent
approved in appropriation Acts) by $7,167,000,000 on October 1,
1987, and by $7,300,945,000 on October 1, 1988. The aggregate
amount of budget authority that may be obligated for assistance
referred to in paragraph (7) is increased (to the extent
approved in appropriation Acts) by $16,194,000,000 on October
1, 1990, and by $14,709,400,000 on October 1, 1991. The
aggregate amount of budget authority that may be obligated for
assistance referred to in paragraph (7) is increased (to the
extent approved in appropriation Acts) by $14,710,990,520 on
October 1, 1992, and by $15,328,852,122 on October 1993.
[(7)(A) Using the additional budget authority provided under
paragraph (6) and the balances of budget authority that become
available during fiscal year 1993, the Secretary shall, to the
extent approved in appropriation Acts, reserve authority to
enter into obligations aggregating--
[(i) for public housing grants under subsection
(a)(2), not more than $830,900,800, of which amount not
more than $257,320,000 shall be available for Indian
housing;
[(ii) for assistance under section 8, not more than
$1,977,662,720, of which $20,000,000 shall be available
for 15-year contracts for project-based assistance to
be used for a multicultural tenant empowerment and
homeownership project located in the District of
Columbia, except that assistance provided for such
project shall not be considered for purposes of the
percentage limitations under section 8(i)(2); except
that not more than 49 percent of any amounts
appropriated under this clause may be used for vouchers
under section 8(o);
[(iii) for comprehensive improvement assistance
grants under section 14(k), not more than
$3,100,000,000;
[(iv) for assistance under section 8 for property
disposition, not more than $93,032,000;
[(v) for assistance under section 8 for loan
management, not more than $202,000,000;
[(vi) for extensions of contracts expiring under
section 8, not more than $6,746,135,000, which shall be
for 5-year contracts for assistance under section 8 and
for loan management assistance under such section;
[(vii) for amendments to contracts under section 8,
not more than $1,350,000,000;
[(viii) for public housing lease adjustments and
amendments, not more than $83,055,000;
[(ix) for conversions from leased housing contracts
under section 23 of this Act (as in effect immediately
before the enactment of the Housing and Community
Development Act of 1974) to assistance under section 8,
not more than $12,767,000; and
[(x) for grants under section 24 for revitalization
of severely distressed public housing, not more than
$300,000,000.
[(B) Using the additional budget authority provided under
paragraph (6) and the balances of budget authority that become
available during fiscal year 1994, the Secretary shall, to the
extent approved in appropriation Acts, reserve authority to
enter into obligations aggregating--
[(i) for public housing grants under subsection
(a)(2), not more than $865,798,634, of which amount not
more than $268,127,440 shall be available for Indian
housing;
[(ii) for assistance under section 8, not more than
$2,060,724,554, of which $20,000,000 shall be available
for 15-year contracts for project-based assistance to
be used for a multicultural tenant empowerment and
homeownership project located in the District of
Columbia, except that assistance provided for such
project shall not be considered for purposes of the
percentage limitations under section 8(i)(2); except
that not more than 49 percent of any amounts
appropriated under this clause may be used for vouchers
under section 8(o);
[(iii) for comprehensive improvement assistance
grants under section 14(k), not more than
$3,230,200,000;
[(iv) for assistance under section 8 for property
disposition, not more than $96,939,344;
[(v) for assistance under section 8 for loan
management, not more than $210,484,000;
[(vi) for extensions of contracts expiring under
section 8, not more than $7,029,472,670, which shall be
for 5-year contracts for assistance under section 8 and
for loan management assistance under such section;
[(vii) for amendments to contracts under section 8,
not more than $1,406,700,000;
[(viii) for public housing lease adjustments and
amendments, not more than $86,543,310;
[(ix) for conversions from leased housing contracts
under section 23 of this Act (as in effect immediately
before the enactment of the Housing and Community
Development Act of 1974) to assistance under section 8,
not more than $13,303,214; and
[(x) for grants under section 24 for revitalization
of severely distressed public housing, not more than
$312,600,000.
[(C)(i) Any amount available for the conversion of a project
to assistance under section 8(b)(1), if not required for such
purpose, shall be used for assistance under section 8(b)(1).
[(ii) Any amount available for assistance under section 8 for
property disposition, if not required for such purpose, shall
be used for assistance under section 8(b)(1).
[(8) Any amount available for Indian housing under subsection
(a) that is recaptured shall be used only for such housing.
[(d) Any contract for loans or annual contributions, or both,
entered into by the Secretary with a public housing agency, may
cover one or more than one low-income housing project owned by
such public housing agency; in the event the contract covers
two or more projects, such projects may, for any of the
purposes of this Act and of such contract (including, but not
limited to, the determination of the amount of the loan, annual
contributions, or payments in lieu of taxes, specified in such
contract), be treated collectively as one project.
[(e) In recognition that there should be local determination
of the need for low-income housing to meet needs not being
adequately met by private enterprise--
[(1) the Secretary shall not make any contract with a
public housing agency for preliminary loans (all of
which shall be repaid out of any moneys which become
available to such agency for the development of the
projects involved) for surveys and planning in respect
to any low-income housing projects (i) unless the
governing body of the locality involved has by
resolution approved the application of the public
housing agency for such preliminary loan; and (ii)
unless the public housing agency has demonstrated to
the satisfaction of the Secretary that there is need
for such low-income housing which is not being met by
private enterprise; and
[(2) the Secretary shall not make any contract for
loans (other than preliminary loans) or for
contributions pursuant to this Act unless the governing
body of the locality involved has entered into an
agreement with the public housing agency providing for
the local cooperation required by the Secretary
pursuant to this Act.
[(f) Subject to the specific limitations or standards in this
Act governing the terms of sales, rentals, leases, loans,
contracts for annual contributions, or other agreements, the
Secretary may, whenever he deems it necessary or desirable in
the fulfillment of the purposes of this Act, consent to the
modification, with respect to rate of interest, time of payment
of any installment of principal or interest, security, amount
of annual contribution, or any other term, of any contract or
agreement of any kind to which the Secretary is a party. When
the Secretary finds that it would promote economy or be in the
financial interest of the Federal Government or is necessary to
assure or maintain the lower income character of the project or
projects involved, any contract heretofore or hereafter made
for annual contributions, loans, or both, may be amended or
superseded by a contract entered into by mutual agreement
between the public housing agency and the Secretary. Contracts
may not be amended or superseded in a manner which would impair
the rights of the holders of any outstanding obligations of the
public housing agency involved for which annual contributions
have been pledged. Any rule of law contrary to this provision
shall be deemed inapplicable.
[(g) In addition to the authority of the Secretary under
subsection (a) to pledge annual contributions as security for
obligations issued by a public housing agency, the Secretary is
authorized to pledge annual contributions as a guarantee of
payment by a public housing agency of all principal and
interest on obligations issued by it to assist the development
or acquisition of the project to which the annual contributions
relate, except that no obligation shall be guaranteed under
this subsection if the income thereon is exempt from Federal
taxation.
[(h) Notwithstanding any other provision of law, a public
housing agency may sell a low-income housing project to its
lower income tenants, on such terms and conditions as the
agency may determine, without affecting the Secretary's
commitment to pay annual contributions with respect to that
project, but such contributions shall not exceed the maximum
contributions authorized under subsection (a) of this section.
[(i) In entering into contracts for assistance with respect
to newly constructed or substantially rehabilitated projects
under this section (other than for projects assisted pursuant
to section 8), the Secretary shall require the installation of
a passive or active solar energy system in any such project
where the Secretary determines that such installation would be
cost effective over the estimated life of the system.
[(j)(1) After September 30, 1987, in providing assistance
under this Act to a public housing agency for public housing
(other than for Indian families), the Secretary shall reserve
funds for the development of public housing only if--
[(A) the Secretary determines that additional amounts
are required to complete the development of dwelling
units for which amounts are obligated on or before such
date;
[(B) the public housing agency certifies to the
Secretary that 85 percent of the public housing
dwelling units of the public housing agency--
[(i) are maintained in substantial compliance
with the housing quality standards established
by the Secretary under section 8(o)(6);
[(ii) will be so maintained upon completion
of modernization for which funding has been
awarded; or
[(iii) will be so maintained upon completion
of modernization for which applications are
pending that have been submitted in good faith
under section 14 (or a comparable State or
local government program) and that there is a
reasonable expectation, as determined by the
Secretary in writing, that the applications
would be approved;
[(C) the public housing agency certifies that such
development--
[(i) will replace dwelling units that are
disposed of or demolished by the public housing
agency, including dwelling units disposed of or
lost through sale to tenants or through units
redesign; or
[(ii) is required to comply with court orders
or directions of the Secretary;
[(D) the public housing agency certifies that it has
demands for family housing not satisfied by the rental
assistance programs established in subsection (b) or
(o) of section 8 for which it plans to construct or
acquire projects of not more than 100 units; or
[(E) the Secretary makes such reservation under
paragraph (2).
[(F) in the case of an application for development of
projects (or portions of projects) designated under
section 7(a)(1) for occupancy for elderly families,
only if the agency certifies to the Secretary that the
use of such assistance will assist in expanding the
housing available for eligible persons with
disabilities identified in the allocation plan for the
agency submitted under section 7(f); and
[(2)(A) Notwithstanding any other provision of law, the
Secretary may reserve not more than 20 percent of any amounts
appropriated for development of public housing in each fiscal
year for the substantial redesign, reconstruction, or
redevelopment of existing obsolete public housing projects or
buildings and for the costs of improving the management and
operation of projects undergoing redesign, reconstruction, or
redevelopment under this paragraph (to the extent that such
improvement is necessary to maintain the physical improvements
resulting from such redesign, reconstruction, or
redevelopment).
[(B) For purposes of this paragraph, the term ``obsolete
public housing project or building'' means a public housing
project or building (i) having design or marketability problems
resulting in vacancy in more than 25 percent of the units, or
(ii)(I) for which the costs for redesign, reconstruction, or
redevelopment (includingany costs for lead-based paint
abatement activities) exceed 70 percent of the total development cost
limits for new construction of similar units in the area, and (II)
which has an occupancy density or a building height that is
significantly in excess of that which prevails in the neighborhood in
which the project is located, a bedroom configuration that could be
altered to better serve the needs of families seeking occupancy to
dwellings of the public housing agency, significant security problems
in and around the project, or significant physical deterioration or
inefficient energy and utility systems.
[(C) The Secretary shall allocate amounts reserved under this
section to public housing agencies on the basis of a
competition among public housing agencies applying for such
amounts. The competition shall be based on--
[(ii) the expected term of the useful life of the
project or building after redesign, reconstruction or
redevelopment; and
[(iii) the likelihood of achieving full occupancy
within the projects or buildings of the agency that are
to be assisted under this paragraph.
[(D) The Secretary shall establish limitations on the total
costs of any project or building receiving amounts under this
paragraph for redesign, reconstruction, and redevelopment. The
cost limitations shall not be related to the total development
cost system for new development or to the cost limits for
modernization and shall recognize the higher direct costs of
such work.
[(E) Assistance may not be provided under this paragraph for
any project or building assisted under section 14.
[(F)(i) For each fiscal year for which amounts are reserved
or appropriated for the purposes of this paragraph, the
Secretary shall establish performance goals to evaluate the
effectiveness of the use of such amounts. The goals shall--
[(I) be designed to maximize the effectiveness of the
expenditures in a quantifiable manner; and
[(II) describe the number of units to be redesigned,
redeveloped, and reconstructed with such amounts and
improvements in the management of projects so assisted
to be accomplished with such amounts.
[(ii) Not later than 60 days after the end of each such
fiscal year, the Secretary shall submit a report to the
Congress, which shall describe the performance goals
established for the fiscal year, the activities carried out
with such amounts, and a statement of whether the performance
goals were met. If the performance goals were not met, the
report shall t shall contain--
[(I) an explanation of why the goals were not met and
a description of any managerial deficiencies or legal
problems that contributed to not meeting such goals;
[(II) plans and a schedule for achieving the level of
performance under such performance goals;
[(III) recommendations for legislative or regulatory
changes necessary to achieve the performance goals or
improve performance; and
[(IV) a statement of whether the performance goals
established for the fiscal year were impractical or
infeasible, and, if so, the factors that contributed
and resulted in establishing such impractical or
infeasible goals and recommendations of actions to meet
such goals, which may include changing the goals or
altering or eliminating the program under this
paragraph for major reconstruction of projects.
[(G)(i) In fiscal years 1993 and 1994, the Secretary shall
commit for use under clause (ii) not less than 5 percent of any
amounts reserved under subparagraph (A) for each such fiscal
year.
[(ii) The amounts referred to in clause (i) shall be
available to public housing agencies only for use for projects
(or portions of projects) designated for occupancy under
section 7(a)(1) and (e) by disabled families.
[(iii) In allocating amounts reserved under this subparagraph
among public housing agencies, the Secretary shall consider the
need for any such amounts as identified in the allocation plans
submitted by agencies under section 7(f).
[(3)(A) In fiscal years 1993 and 1994, the Secretary shall
reserve for use under subparagraph (B) not less than 5 percent
of any amounts approved in appropriation Acts for each such
fiscal year for public housing grants under subsection (a)(2)
that are not designated under such Acts for use under paragraph
(2) of this subsection for the substantial redesign,
reconstruction, or redevelopment of existing public housing
projects, buildings, or units.
[(B) Any amount reserved under subparagraph (A) shall be
available only to public housing agencies that have designated
projects (or portions of projects) for occupancy under section
7(a)(1) for use only for the costs of development or
acquisition of public housing projects or buildings designated
for occupancy under section 7(a)(1) and (e) by disabled
families. A building so assisted may not contain more than 25
dwelling units, except that the Secretary may (in the
discretion of the Secretary) waive such limitation for a
building.
[(C) The Secretary shall carry out a competition for budget
authority reserved under subparagraph (A) among eligible public
housing agencies and shall allocate such budget authority to
public housing agencies pursuant to the competition, based on
(i) the need of the agency for such assistance (taking into
consideration the allocation plans submitted under section 7(f)
by agencies), and (ii) the extent to which the public housing
projects and buildings to be developed or assisted meet the
requirements of section 7(e).
[(k) After the reservation of public housing development
funds to a public housing agency, the Secretary may not
recapture any of the amounts included in such reservation due
to the failure of a public housing agency to begin construction
or rehabilitation, or to complete acquisition, during the 30-
month period following the date of such reservation. During
such 30-month period, the public housing agency shall be
permitted to change the site of the public housing project or
reformulate the project, if not less than the original number
of dwelling units are to be constructed, rehabilitated, or
acquired. There shall be excluded from the computation of such
30-month period any delay in the beginning of construction or
rehabilitation of such project caused by (1) the failure of the
Secretary to process such project within a reasonable period of
time; (2) any environmental review requirement; (3) any legal
action affectingsuch project; or (4) any other factor beyond
the control of the public housing agency.
[(l) The Secretary may not use as a criterion for
distributing assistance under this section the progress made by
an Indian public housing agency in collecting rents owed by
tenants unless--
[(1) such criterion is used as 1 of several criteria
that are weighted proportionally and is established by
regulations issued after public notice and opportunity
to comment in accordance with section 553 of title 5,
United States Code; or
[(2) the Secretary determines that the Indian public
housing agency has demonstrated a pattern of
substantial noncompliance with requirements governing
the collection of rents.
[contract provisions and requirements
[Sec. 6. (a) The Secretary may include in any contract for
loans, contributions, sale, lease, mortgage, or any other
agreement or instrument made pursuant to this Act, such
covenants, conditions, or provisions as he may deem necessary
in order to insure the lower income character of the project
involved. Any such contract may contain a condition requiring
the maintenance of an open space or playground in connection
with the housing project involved if deemed necessary by the
Secretary for the safety or health of children. Any such
contract shall require that, except in the case of housing
predominantly for elderly or disabled families, high-rise
elevator projects shall not be provided for families with
children unless the Secretary makes a determination that there
is no practical alternative.
[(b)(1) Each contract for loans (other than preliminary
loans) or contributions for the development, acquisition, or
operation of public housing and public housing for Indians and
Alaska Natives in accordance with the Indian Housing Act of
1988 shall provide that the total development cost of the
project on which the computation of any annual contributions
under this Act may be based may not exceed the amount
determined under paragraph (2) (for the appropriate structure
type) unless the Secretary provides otherwise, and in any case
may not exceed 110 per centum of such amount unless the
Secretary for good cause determines otherwise.
[(2) For purposes of paragraph (1), the Secretary shall
determine the total development cost by multiplying the
construction cost guideline for the project (which shall be
determined by averaging the current construction costs, as
listed by not less than 2 nationally recognized residential
construction cost indices, for publicly bid construction of a
good and sound quality) by--
[(A) in the case of elevator type structures, 1.6;
and
[(B) in the case of nonelevator type structures,
1.75.
[(c) Every contract for contributions shall provide that--
[(1) the Secretary may require the public housing
agency to review and revise its maximum income limits
if the Secretary determines that changed conditions in
the locality make such revision necessary in achieving
the purposes of this Act;
[(2) the public housing agency shall determine, and
so certify to the Secretary, that each family in the
project was admitted in accordance with duly adopted
regulations and approved income limits; and the public
housing agency shall review the incomes of families
living in the project no less frequently than annually;
[(3) the public housing agency shall promptly notify
(i) any applicant determined to be ineligible for
admission to the project of the basis for such
determination and provide the applicant upon request,
within a reasonable time after the determination is
made, with an opportunity for an informal hearing on
such determination, and (ii) any applicant determined
to be eligible for admission to the project of the
approximate date of occupancy insofar as such date can
be reasonably determined;
[(4) the public housing agency shall comply with such
procedures and requirements as the Secretary may
prescribe to assure that sound management practices
will be followed in the operation of the project,
including requirements pertaining to--
[(A) the establishment, after public notice
and an opportunity for public comment, of a
written system of preferences for admission to
public housing, if any, that is not
inconsistent with the comprehensive housing
affordability strategy under title I of the
Cranston-Gonzalez National Affordable Housing
Act;
[(E) except in the case of agencies not
receiving operating assistance under section 9,
the establishment and maintenance of a system
of accounting for rental collections and costs
(including administrative, utility,
maintenance, repair and other operating costs)
for each project or operating cost center (as
determined by the Secretary), which collections
and costs shall be made available to the
general public and submitted to the appropriate
local public official (as determined by the
Secretary); except that the Secretary may
permit agencies owning or operating less than
500 units to comply with the requirements of
this subparagraph by accounting on an agency-
wide basis; and
[(F) requiring the public housing agency to
ensure and maintain compliance with subtitle C
of title VI of the Housing and Community
Development Act of 1992 and any regulations
issued under such subtitle.
[(d) Every contract for contributions with respect to a low-
income housing project shall provide that no contributions by
the Secretary shall be made available for such project unless
such project (exclusive of any portion thereof which is not
assisted by contributions under this Act) is exempt from all
real and personal property taxes levied or imposed by the
State, city, county, or other political subdivision; and such
contract shall require the public housing agency to make
payments in lieu of taxes equal to 10 per centum of the sum of
the shelter rents charged in such project, or such lesser
amount as (i) is prescribed by State law, or (ii) is agreed to
by the local governing body in its agreement for local
cooperation with the public housing agency required under
section 5(e)(2) of this Act, or (iii) is due to failure of a
local public body or bodies other than the public housing
agency to perform any obligation under such agreement. If any
such project is not exempt from all real and personal property
taxes levied or imposed by the State,city, county, or other
political subdivision, such contract shall provide, in lieu of the
requirement for tax exemption and payments in lieu of taxes, that no
contributions by the Secretary shall be made available for such project
unless and until the State, city, county, or other political
subdivision in which such project is situated shall contribute, in the
form of cash or tax remission, the amount by which the taxes paid with
respect to the project exceed 10 per centum of the shelter rents
charged in such project.
[(e) Every contract for contributions shall provide that
whenever in any year the receipts of a public housing agency in
connection with a low-income housing project exceed its
expenditures (including debt service, operation, maintenance,
establishment of reserves, and other costs and charges), an
amount equal to such excess shall be applied, or set aside for
application, to purposes which, in the determination of the
Secretary, will effect a reduction in the amount of subsequent
annual contributions.
[(g) Every contract for contributions (including contracts
which amend or supersede contracts previously made) may provide
that--
[(1) upon the occurrence of a substantial default in
respect to the covenants or conditions to which the
public housing agency is subject (as such substantial
default shall be defined in such contract), the public
housing agency shall be obligated at the option of the
Secretary either to convey title in any case where, in
the determination of the Secretary (which determination
shall be final and conclusive), such conveyance of
title is necessary to achieve the purposes of this Act,
or to deliver to the Secretary possession of the
project, as then constituted, to which such contract
relates; and
[(2) the Secretary shall be obligated to reconvey or
redeliver possession of the project, as constituted at
the time of reconveyance or redelivery, to such public
housing agency or to its successor (if such public
housing agency or a successor exists) upon such terms
as shall be prescribed in such contract, and as soon as
practicable (i) after the Secretary is satisfied that
all defaults with respect to the project have been
cured, and that the project will, in order to fulfill
the purposes of this Act, thereafter be operated in
accordance with the terms of such contract; or (ii)
after the termination of the obligation to make annual
contributions available unless there are any
obligations or covenants of the public housing agency
to the Secretary which are then in default. Any prior
conveyances and reconveyances or deliveries and
redeliveries of possession shall not exhaust the right
to require a conveyance or delivery of possession of
the project to the Secretary pursuant to subparagraph
(1) upon the subsequent occurrence of a substantial
default.
Whenever such a contract for annual contributions includes
provisions which the Secretary in such contract determines are
in accordance with this subsection, and the portion of the
annual contribution payable for debt service requirements
pursuant to such contract has been pledged by the public
housing agency as security for the payment of the principal and
interest on any of its obligations, the Secretary
(notwithstanding any other provisions of this Act) shall
continue to make such annual contributions available for the
project so long as any of such obligations remain outstanding,
and may covenant in such contract that in any event such annual
contributions shall in each year be at least equal to an amount
which, together with such income or other funds as are actually
available from the project for the purpose at the time such
annual contribution is made, will suffice for the payment of
all installments, falling due within the next succeeding twelve
months, of principal and interest on the obligations for which
the annual contributions provided for in the contract shall
have been pledged as security. In no case shall such annual
contributions be in excess of the maximum sum specified in the
contract involved, nor for longer than the remainder of the
maximum period fixed by the contract.
[(h) On or after October 1, 1983, the Secretary may enter
into a contract involving new construction only if the public
housing agency demonstrates to the satisfaction of the
Secretary that the cost of new construction in the neighborhood
where the public housing agency determines the housing is
needed is less than the cost of acquisition or acquisition and
rehabilitation in such neighborhood, including any reserve fund
under subsection (i), would be.
[(i) The Secretary may, upon application by a public housing
agency in connection with the acquisition of housing for use as
public housing, establish and set aside a reserve fund in an
amount not to exceed 30 per centum of the acquisition cost
which shall be available for use for major repairs to such
housing.
[(j)(1) The Secretary shall develop and publish in the
Federal Register indicators to assess the management
performance of public housing agencies and resident management
corporations. The indicators shall be established by rule under
section 553 of title 5, United States Code. Such indicators
shall enable the Secretary to evaluate the performance of
public housing agencies and resident management corporations in
all major areas of management operations. The Secretary shall,
in particular, use the following indicators:
[(A) The number and percentage of vacancies within an
agency's inventory, including the progress that an
agency has made within the previous 3 years to reduce
such vacancies.
[(B) The amount and percentage of funds obligated to
the public housing agency under section 14 of this Act
which remain unexpended after 3 years.
[(C) The percentage of rents uncollected.
[(D) The energy consumption (with appropriate
adjustments to reflect different regions and unit
sizes).
[(E) The average period of time that an agency
requires to repair and turn-around vacant units.
[(F) The proportion of maintenance work orders
outstanding, including any progress that an agency has
made during the preceding 3 years to reduce the period
of time required to complete maintenance work orders.
[(G) The percentage of units that an agency fails to
inspect to ascertain maintenance or modernization needs
within such period of time as the Secretary deems
appropriate (with appropriate adjustments, if any, for
large and small agencies).
[(H) Any other factors as the Secretary deems
appropriate.
[(2)(A)(i) The Secretary shall, under the rulemaking
procedures under section 553 of title 5, United States Code,
establish procedures for designating troubled public housing
agencies, which procedures shall include identification of
serious and substantial failure to perform as measured by the
performance indicators specified under paragraph (1) and such
other factors as the Secretary may deem to be appropriate. The
Secretary shall also designate, by rule under section 553 of
title 5, United States Code, agencies that are troubled with
respect to the program under section 14.
[(ii) The Secretary may also, in consultation with national
organizations representing public housing agencies and public
officials (as the Secretary determines appropriate), identify
and commend public housing agencies that meet the performance
standards established under paragraph (1) in an exemplary
manner.
[(iii) The Secretary shall establish procedures for public
housing agencies to appeal designation as a troubled agency
(including designation as a troubled agency for purposes of the
program under section 14), to petition for removal of such
designation, and to appeal any refusal to remove such
designation.
[(B)(i) Upon designating a public housing agency as troubled
pursuant to subparagraph (A) and determining that an assessment
under this subparagraph will not duplicate any review conducted
under section 14(p), the Secretary shall provide for an on-
site, independent assessment of the management of the agency.
[(ii) To the extent the Secretary deems appropriate (taking
into account an agency's performance under the indicators
specified under paragraph (1)), the assessment team shall also
consider issues relating to the agency's resident population
and physical inventory, including the extent to which (I) the
agency's comprehensive plan prepared pursuant to section 14
adequately and appropriately addresses the rehabilitation needs
of the agency's inventory, (II) residents of the agency are
involved in and informed of significant management decisions,
and (III) any projects in the agency's inventory are severely
distressed and eligible for assistance pursuant to section 24.
[(iii) An independent assessment under this subparagraph
shall be carried out by a team of knowledgeable individuals
selected by the Secretary (referred to in this section as the
``assessment team'') with expertise in public housing and real
estate management. In conducting an assessment, the assessment
team shall consult with the residents and with public and
private entities in the jurisdiction in which the public
housing is located. The assessment team shall provide to the
Secretary and the public housing agency a written report, which
shall contain, at a minimum, recommendations for such
management improvements as are necessary to eliminate or
substantially remedy existing deficiencies.
[(C) The Secretary shall seek to enter into an agreement with
each troubled public housing agency, after reviewing the report
submitted pursuant to subparagraph (B) and consulting with the
agency's assessment team.
To the extent the Secretary deems appropriate (taking into
account an agency's performance under the indicators specified
under paragraph (1)), such agreement shall also set forth a
plan for enhancingresident involvement in the management of the
public housing agency. Such agreement shall set forth--
[(i) targets for improving performance as measured by
the performance indicators specified under paragraph
(1) and other requirements within a specified period of
time;
[(ii) strategies for meeting such targets, including
a description of the technical assistance that the
Secretary will make available to the agency; and
[(iii) incentives or sanctions for effective
implementation of such strategies, which may include
any constraints on the use of funds that the Secretary
determines are appropriate.
The Secretary and the public housing agency shall, to the
maximum extent practicable, seek the assistance of local public
and private entities in carrying out the agreement.
[(D) The Secretary shall apply the provisions
of this paragraph to resident management
corporations as well as public housing
agencies.
[(3)(A) Notwithstanding any other provision of law or of any
contract for contributions, upon the occurrence of events or
conditions that constitute a substantial default by a public
housing agency with respect to the covenants or conditions to
which the public housing agency is subject or an agreement
entered into under paragraph (2), the Secretary may--
[(i) solicit competitive proposals from other public
housing agencies and private housing management agents
(which may be selected by existing tenants through
administrative procedures established by the Secretary)
in the eventuality that these agents may be needed for
managing all, or part, of the housing administered by a
public housing agency;
[(ii) petition for the appointment of a receiver
(which may be another public housing agency or a
private management corporation) of the public housing
agency to any district court of the United States or to
any court of the State in which the real property of
the public housing agency is situated, that is
authorized to appoint a receiver for the purposes and
having the powers prescribed in this subsection;
[(iii) solicit competitive proposals from other
public housing agencies and private entities with
experience in construction management in the
eventuality that such agencies or firms may be needed
to oversee implementation of assistance made available
under section 14 for the housing; and
[(iv) require the agency to make other arrangements
acceptable to the Secretary and in the best interests
of the public housing residents for managing all, or
part of, such housing.
Residents of a public housing agency designated as troubled
pursuant to paragraph (2)(A) may petition the Secretary in
writing to take 1 or more of the actions referred to in this
subparagraph. The Secretary shall respond to such petitions in
a timely manner with a written description of the actions, if
any, the Secretary plans to take and, where applicable, the
reasons why such actions differ from the course proposed by the
residents.
[(B) The Secretary may make available to receivers and other
entities selected or appointed pursuant to this paragraph such
assistance as is necessary to remedy the substantial
deterioration of living conditions in individual public housing
developments or other related emergencies that endanger the
health, safety and welfare of the residents.
[(C) In any proceeding under subparagraph (A)(ii), upon a
determination that a substantial default has occurred, and
without regard to the availability of alternative remedies, the
court shall appoint a receiver to conduct the affairs of the
public housing agency in a manner consistent with this Act and
in accordance with such further terms and conditions as the
court may provide. The court shall have power to grant
appropriate temporary or preliminary relief pending final
disposition of the petition by the Secretary.
[(D) The appointment of a receiver pursuant to this
subsection may be terminated, upon the petition of any party,
when the court determines that all defaults have been cured and
the housing operated by the public housing agency will
thereafter be operated in accordance with the covenants and
conditions to which the public housing agency is subject.
[(4) The Secretary shall submit to the Congress annually, as
a part of the report of the Secretary under section 8 of the
Department of Housing and Urban Development Act, a report
that--
[(A) identifies the public housing agencies that have
been designated as troubled under paragraph (2);
[(B) describes the grounds on which such public
housing agencies were designated as troubled and
continue to be so designated;
[(C) describes the agreements that have been entered
into with such agencies under such paragraph;
[(D) describes the status of progress under such
agreements;
[(E) describes any action that has been taken in
accordance with paragraph (3); and
[(F) describes the status of any public housing
agency designated as troubled with respect to the
program under section 14 and specifies the amount of
assistance the agency received under section 14 and any
credits accumulated by the agency under section
14(k)(5)(D).
[(k) The Secretary shall by regulation require each public
housing agency receiving assistance under this Act to establish
and implement an administrative grievance procedure under which
tenants will--
[(1) be advised of the specific grounds of any
proposed adverse public housing agency action;
[(2) have an opportunity for a hearing before an
impartial party upon timely request within any period
applicable under subsection (l);
[(3) have an opportunity to examine any documents or
records or regulations related to the proposed action;
[(4) be entitled to be represented by another person
of their choice at any hearing;
[(5) be entitled to ask questions of witnesses and
have others make statements on their behalf; and
[(6) be entitled to receive a written decision by the
public housing agency on the proposed action.
For any grievance concerning an eviction or termination of
tenancy that involves any activity that threatens the health,
safety, or right to peaceful enjoyment of the premises of other
tenants or employees of the public housing agency or any drug-
related criminal activity on or off such premises, the agency
may (A) establish an expedited grievance procedure as the
Secretary shall provide by rule under section 553 of title 5,
United States Code, or (B) exclude from its grievance procedure
any such grievance, in any jurisdiction which requires that
prior to eviction, a tenant be given a hearing in court which
the Secretary determines provides the basic elements of due
process (which the Secretary shall establish by rule under
section 553 of title 5, United States Code). Such elements of
due process shall not include a requirement that the tenant be
provided an opportunity to examine relevant documents within
the possession of the public housing agency. The agency shall
provide to the tenant a reasonable opportunity, prior to
hearing or trial, to examine any relevant documents, records,
or regulations directly related to the eviction or termination.
[(l) Each public housing agency shall utilize leases which--
[(1) do not contain unreasonable terms and
conditions;
[(2) obligate the public housing agency to maintain
the project in a decent, safe, and sanitary condition;
[(3) require the public housing agency to give
adequate written notice of termination of the lease
which shall not be less than--
[(A) a reasonable time, but not to exceed 30
days, when the health or safety of other
tenants or public housing agency employees is
threatened;
[(B) 14 days in the case of nonpayment of
rent; and
[(C) 30 days in any other case;
[(4) require that the public housing agency may not
terminate the tenancy except for serious or repeated
violation of the terms or conditions of the lease or
for other good cause;
[(5) provide that any criminal activity that
threatens the health, safety, or right to peaceful
enjoyment of the premises by other tenants or any drug-
related criminal activity on or off such premises,
engaged in by a public housing tenant, any member of
the tenant's household, or any guest or other person
under the tenant's control, shall be cause for
termination of tenancy;
[(6) specify that with respect to any notice of
eviction or termination, notwithstanding any State law,
a public housing tenant shall be informed of the
opportunity, prior to any hearing or trial, to examine
any relevant documents, records or regulations directly
related to the eviction or termination; and
[(7) provide that it shall be cause for immediate
termination of the tenancy of a public housing tenant
if such tenant--
[(A) is fleeing to avoid prosecution, or
custody or confinement after conviction, under
the laws of the place from which the individual
flees, for a crime, or attempt to commit a
crime, which is a felony under the laws of the
place from which the individual flees, or
which, in the case of the State of New Jersey,
is a high misdemeanor under the laws of such
State; or
[(2) is violating a condition of probation or parole
imposed under Federal or State law.
For purposes of paragraph (5), the term ``drug-related criminal
activity'' means the illegal manufacture, sale, distribution,
use, or possession with intent to manufacture, sell,
distribute, or use, of a controlled substance (as defined in
section 102 of the Controlled Substances Act (21 U.S.C. 802)).
[(m) The Secretary shall not impose any unnecessarily
duplicative or burdensome reporting requirements on tenants or
public housing agencies assisted under this Act.
[(n) When a public housing agency evicts an individual or
family from a dwelling unit for engaging in criminal activity,
including drug-related criminal activity, the public housing
agency shall notify the local post office serving that dwelling
unit that such individual or family is no longer residing in
the dwelling unit.
[(o) Subject to the written system of preferences for
selection established pursuant to subsection (c)(4)(A), in
providing housing in low-income housing projects, each public
housing agency may coordinate with any local public agencies
involved in providing for the welfare of children to make
available dwelling units to--
[(1) families identified by the agencies as having a
lack of adequate housing that is a primary factor--
[(A) in the imminent placement of a child in
foster care; or
[(B) in preventing the discharge of a child
from foster care and reunification with his or
her family; and
[(2) youth, upon discharge from foster care, in cases
in which return to the family or extended family or
adoption is not available.
[(p) With respect to amounts available for obligation on or
after October 1, 1991, the criteria established under section
213(d)(5)(B) of the Housing and Community Development Act of
1974 for any competition for assistance for new construction,
acquisition, or acquisition and rehabilitation of public
housing shall give preference to applications for housing to be
located in a local market area that has an inadequate supply of
housing available for use by very low-income families. The
Secretary shall establish criteria for determining that the
housing supply of a local market area is inadequate, which
shall require--
[(1)(A) information regarding housing market
conditions showing that the supply of rental housing
affordable by very low-income families is inadequate,
taking into account vacancy rates in such housing and
other market indicators; and
[(B) evidence that significant numbers of families in
the local market area holding certificates and vouchers
under section 8 are experiencing significant difficulty
in leasing housing meeting program and family-size
requirements; or
[(2) evidence that the proposed development would
provide increased housing opportunities for minorities
or address special housing needs.
[(q) Availability of Records.--
[(1) In general.--
[(A) Provision of information.--
Notwithstanding any other provision of law,
except as provided in subparagraph (B), the
National Crime Information Center, police
departments, and other law enforcement agencies
shall, upon request, provide information to
public housing agencies regarding the criminal
conviction records of adult applicants for, or
tenants of, public housing for purposes of
applicant screening, lease enforcement, and
eviction.
[(B) Exception.--A law enforcement agency
described in subparagraph (A) shall provide
information under this paragraph relating to
any criminal conviction of a juvenile only to
the extent that the release of such information
is authorized under the law of the applicable
State, tribe, or locality.
[(2) Opportunity to dispute.--Before an adverse
action is taken with regard to assistance under this
title on the basis of a criminal record, the public
housing agency shall provide the tenant or applicant
with a copy of the criminal record and an opportunity
to dispute the accuracy and relevance of that record.
[(3) Fee.--A public housing agency may be charged a
reasonable fee for information provided under paragraph
(1).
[(4) Records management.--Each public housing agency
shall establish and implement a system of records
management that ensures that any criminal record
received by the public housing agency is--
[(A) maintained confidentially;
[(B) not misused or improperly disseminated;
and
[(C) destroyed, once the purpose for which
the record was requested has been accomplished.
[(5) Definition.--For purposes of this subsection,
the term ``adult'' means a person who is 18 years of
age or older, or who has been convicted of a crime as
an adult under any Federal, State, or tribal law.
[(r) Ineligibility Because of Eviction for Drug-Related
Activity.--Any tenant evicted from housing assisted under this
title by reason of drug-related criminal activity (as that term
is defined in section 8(f)) shall not be eligible for housing
assistance under this title during the 3-year period beginning
on the date of such eviction, unless the evicted tenant
successfully completes a rehabilitation program approved by the
public housing agency (which shall include a waiver of this
subsection if the circumstances leading to eviction no longer
exist).
[designated housing for elderly and disabled families
[Sec. 7. (a) Authority To Provide Designated Housing.--
[(1) In general.--Subject only to provisions of this
section and notwithstanding any other provision of law,
a public housing agency for which a plan under
subsection (d) is in effect may provide public housing
projects (or portions of projects) designated for
occupancy by (A) only elderly families, (B) only
disabled families, or (C) elderly and disabled
families.
[(2) Priority for occupancy.--In determining priority
for admission to public housing projects (or portions
of projects) that are designated for occupancy as
provided in paragraph (1), the public housing agency
may make units in such projects (or portions) available
only to the types of families for whom the project is
designated.
[(3) Eligibility of near-elderly families.--If a
public housing agency determines that there are
insufficient numbers of elderly families to fill all
the units in a project (or portion of a project)
designated under paragraph (1) for occupancy by only
elderly families, the agency may provide that near-
elderly families may occupy dwelling units in the
project (or portion).
[(b) Standards Regarding Evictions.--Except as provided in
section 16(e)(1)(B), any tenant who is lawfully residing in a
dwelling unit in a public housing project may not be evicted or
otherwise required to vacate such unit because of the
designation of the project (or portion of a project) pursuant
to this section or because of any action taken by the Secretary
or any public housing agency pursuant to this section.
[(c) Relocation Assistance.--A public housing agency that
designates any existing project or building, or portion
thereof, for occupancy as provided under subsection (a)(1)
shall provide, to each person and family who agrees to be
relocated in connection with such designation--
[(1) notice of the designation and an explanation of
available relocation benefits, as soon as is
practicable for the agency and the person or family;
[(2) access to comparable housing (including
appropriate services and design features), which may
include tenant-based rental assistance under section 8,
at a rental rate paid by the tenant that is comparable
to that applicable to the unit from which the person or
family has vacated; and
[(3) payment of actual, reasonable moving expenses.
[(d) Required Plan.--A plan under this subsection for
designating a project (or portion of a project) for occupancy
under subsection (a)(1) is a plan, prepared by the public
housing agency for the project and submitted to the Secretary,
that--
[(1) establishes that the designation of the project
is necessary--
[(A) to achieve the housing goals for the
jurisdiction under the comprehensive housing
affordability strategy under section 105 of the
Cranston-Gonzalez National Affordable Housing
Act; and
[(B) to meet the housing needs of the low-
income population of the jurisdiction; and
[(2) includes a description of--
[(A) the project (or portion of a project) to
be designated;
[(B) the types of tenants for which the
project is to be designated;
[(C) any supportive services to be provided
to tenants of the designated project (or
portion);
[(D) how the design and related facilities
(as such term is defined in section 202(d)(8)
of the Housing Act of 1959) of the project
accommodate the special environmental needs of
the intended occupants; and
[(E) any plans to secure additional resources
or housing assistance to provide assistance to
families that may have been housed if occupancy
in the project were not restricted pursuant to
this section.
For purposes of this subsection, the term ``supportive
services'' means services designed to meet the special needs of
residents.
[(e) Review of Plans.--
[(1) Review and notification.--The Secretary shall
conduct a limited review of each plan under subsection
(d) that is submitted to the Secretary to ensure that
the plan is complete and complies with the requirements
of subsection (d). The Secretary shall notify each
public housing agency submitting a plan whether the
plan complies with such requirements not later than 60
days after receiving the plan. If the Secretary does
not notify the public housing agency, as required under
this paragraph or paragraph (2), the plan shall be
considered, for purposes of this section, to comply
with the requirements under subsection (d) and the
Secretary shall be considered to have notified the
agency of such compliance upon the expiration of such
60-day period.
[(2) Notice of reasons for determination of
noncompliance.--If the Secretary determines that a
plan, as submitted, does not comply with the
requirements under subsection (d), the Secretary shall
specify in the notice under paragraph (1) the reasons
for the noncompliance and any modifications necessary
for the plan to meet such requirements.
[(3) Standards for determination of noncompliance.--
The Secretary may determine that a plan does not comply
with the requirements under subsection (d) only if--
[(A) the plan is incomplete in significant
matters required under such subsection; or
[(B) there is evidence available to the
Secretary that challenges, in a substantial
manner, any information provided in the plan.
[(4) Treatment of existing plans.--Notwithstanding
any other provision of this section, a public housing
agency shall be considered to have submitted a plan
under this subsection if the agency has submitted to
the Secretary an application and allocation plan under
this section (as in effect before the date of the
enactment of the Housing Opportunity Program Extension
Act of 1996) that have not been approved or disapproved
before such date of enactment.
[(f) Effectiveness.--
[(1) 5-year effectiveness of original plan.--A plan
under subsection (d) shall be in effect for purposes of
this section during the 5-year period that begins upon
notification under subsection (e)(1) of the public
housing agency that the plan complies with the
requirements under subsection (d).
[(2) Renewal of plan.--Upon the expiration of the 5-
year period under paragraph (1) or any 2-year period
under this paragraph, an agency may extend the
effectiveness of the designation and plan for an
additional 2-year period (that begins upon such
expiration) by submitting to the Secretary any
information needed to update the plan. The Secretary
may not limit the number of times a public housing
agency extends the effectiveness of a designation and
plan under this paragraph.
[(3) Transition provision.--Any application and
allocation plan approved under this section (as in
effect before the date of the enactment of the Housing
Opportunity Program Extension Act of 1996) before such
date of enactment shall be considered to be a plan
under subsection (d) that is in effect for purposes of
this section for the 5-year period beginning upon such
approval.
[(g) Inapplicability of Uniform Relocation Assistance and
Real Property Acquisitions Policy Act of 1970.--No tenant of a
public housing project shall be considered to be displaced for
purposes of the Uniform Relocation Assistance and Real Property
Acquisitions Policy Act of 1970 because of the designation of
any existing project or building, or portion thereof, for
occupancy as provided under subsection (a) of this section.
[(h) Inapplicability to Indian Housing.--The provisions of
this section shall not apply with respect to low-income housing
developed or operated pursuant to a contract between the
Secretary and an Indian housing authority.
[lower income housing assistance
[Sec. 8. (a) For the purpose of aiding lower-income families
in obtaining a decent place to live and of promoting
economically mixed housing, assistance payments may be made
with respect to existing housing in accordance with the
provisions of this section. A public housing agency may
contract to make assistance payments to itself (or any agency
or instrumentality thereof) as the owner of dwelling units if
such agency is subject to the same program requirements as are
applied to other owners. In such cases, the Secretary may
establish initial rents within applicable limits.
[(b) Rental Certificates and Other Existing Housing
Programs.--(1) The Secretary is authorized to enter into annual
contributions contracts with public housing agenices pursuant
to which such agencies may enter into contracts to make
assistance payments to owners of existing dwelling units in
accordance with this section. The Secretary shall enter into a
separate annual contributions contract with each public housing
agency to obligate the authority approved each year, beginning
with the authority approved in appropriations Acts for fiscal
year 1988 (other than amendment authority to increase
assistance payments being made using authority approved prior
to the appropriations Acts for fiscal year 1988), and such
annual contributions contract (other than for annual
contributions under subsection (o)) shall bind the Secretary to
make such authority, and any amendments increasing such
authority, available to the public housing agency for a
specified period. In areas where no public housing agency has
been organized or where the Secretary determines that a public
housing agency is unable to implement the provisions of this
section, the Secretary is authorized to enter into such
contracts and to perform the other functions assigned to a
public housing agency by this section.
[(2) The Secretary is authorized to enter into annual
contributions contracts with public housing agencies for the
purpose of replacing public housing transferred in accordance
with title III ofthis Act. Each contract entered into under
this subsection shall be for a term of not more than 60 months.
[(c)(1) An assistance contract entered into pursuant to this
section shall establish the maximum monthly rent (including
utilities and all maintenance and management charges) which the
owner is entitled to receive for each dwelling unit with
respect to which such assistance payments are to be made. The
maximum monthly rent shall not exceed by more than 10 per
centum the fair market rental established by the Secretary
periodically but not less than annually for existing or newly
constructed rental dwelling units of various sizes and types in
the market area suitable for occupancy by persons assisted
under this section, except that the maximum monthly rent may
exceed the fair market rental (A) by more than 10 but not more
than 20 per centum where the Secretary determines that special
circumstances warrant such higher maximum rent or that such
higher rent is necessary to the implementation of a housing
strategy as defined in section 105 of the Cranston-Gonzalez
National Affordable Housing Act, or (B) by such higher amount
as may be requested by a tenant and approved by the public
housing agency in accordance with paragraph (3)(B). In the case
of newly constructed and substantially rehabilitated units, the
exception in the preceding sentence shall not apply to more
than 20 per centum of the total amount of authority to enter
into annual contributions contracts for such units which is
allocated to an area and obligated with respect to any fiscal
year beginning on or after October 1, 1980. Proposed fair
market rentals for an area shall be published in the Federal
Register with reasonable time for public comment, and shall
become effective upon the date of publication in final form in
the Federal Register. Each fair market rental in effect under
this subsection shall be adjusted to be effective on October 1
of each year to reflect changes, based on the most recent
available data trended so the rentals will be current for the
year to which they apply, of rents for existing or newly
constructed rental dwelling units, as the case may be, of
various sizes and types in the market area suitable for
occupancy by persons assisted under this section.
Notwithstanding any other provision of this section, after the
date of enactment of the Housing and Community Development Act
of 1977, the Secretary shall prohibit high-rise elevator
projects for families with children unless there is no
practical alternative. The Secretary shall establish separate
fair market rentals under this paragraph for Westchester County
in the State of New York. The Secretary shall also establish
separate fair market rentals under this paragraph for Monroe
County in the Commonwealth of Pennsylvania. In establishing
fair market rentals for the remaining portion of the market
area in which Monroe County is located, the Secretary shall
establish the fair market rentals as if such portion included
Monroe County. If units assisted under this section are exempt
from local rent control while they are so assisted or
otherwise, the maximum monthly rent for such units shall be
reasonable in comparison with other units in the market area
that are exempt from local rent control.
[(2)(A) The assistance contract shall provide for adjustment
annually or more frequently in the maximum monthly rents for
units covered by the contract to reflect changes in the fair
marketrentals established in the housing area for similar types
and sizes of dwelling units or, if the Secretary determines, on the
basis of a reasonable formula. However, where the maximum monthly rent,
for a unit in a new construction, substantial rehabilitation, or
moderate rehabilitation project, to be adjusted using an annual
adjustment factor exceeds the fair market rental for an existing
dwelling unit in the market area, the Secretary shall adjust the rent
only to the extent that the owner demonstrates that the adjusted rent
would not exceed the rent for an unassisted unit of similar quality,
type, and age in the same market area, as determined by the Secretary.
The immediately foregoing sentence shall be effective only during
fiscal year 1995, fiscal year 1996 prior to April 26, 1996, and fiscal
year 1997. Except for assistance under the certificate program, for any
unit occupied by the same family at the time of the last annual rental
adjustment, where the assistance contract provides for the adjustment
of the maximum monthly rent by applying an annual adjustment factor and
where the rent for a unit is otherwise eligible for an adjustment based
on the full amount of the factor, 0.01 shall be subtracted from the
amount of the factor, except that the factor shall not be reduced to
less than 1.0. In the case of assistance under the certificate program,
0.01 shall be subtracted from the amount of the annual adjustment
factor (except that the factor shall not be reduced to less than 1.0),
and the adjusted rent shall not exceed the rent for a comparable
unassisted unit of similar quality, type, and age in the market area.
The immediately foregoing two sentences shall be effective only during
fiscal year 1995, fiscal year 1996 prior to April 26, 1996, and fiscal
year 1997.
[(B) The contract shall further provide for the Secretary to
make additional adjustments in the maximum monthly rent for
units under contract to the extent he determines such
adjustments are necessary to reflect increases in the actual
and necessary expenses of owning and maintaining the units
which have resulted from substantial general increases in real
property taxes, utility rates, or similar costs which are not
adequately compensated for by the adjustment in the maximum
monthly rent authorized by subparagraph (A). The Secretary
shall make additional adjustments in the maximum monthly rent
for units under contract (subject to the availability of
appropriations for contract amendments) to the extent the
Secretary determines such adjustments are necessary to reflect
increases in the actual and necessary expenses of owning and
maintaining the units that have resulted from the expiration of
a real property tax exemption. Where the Secretary determines
that a project assisted under this section is located in a
community where drug-related criminal activity is generally
prevalent and the project's operating, maintenance, and capital
repair expenses have been substantially increased primarily as
a result of the prevalence of such drug-related activity, the
Secretary may (at the discretion of the Secretary and subject
to the availability of appropriations for contract amendments
for this purpose), on a project by project basis, provide
adjustments to the maximum monthly rents, to a level no greater
than 120 percent of the project rents, to cover the costs of
maintenance, security, capital repairs, and reserves required
for the owner to carry out a strategy acceptable to the
Secretary for addressing the problem of drug-related criminal
activity. Any rent comparability standard required under this
paragraph may be waived by the Secretary to so implement the
preceding sentence. The Secretary may (at the discretion of the
Secretary and subject to the availability of appropriations for
contract amendments), on a project by project basis for
projects receiving project-based assistance, provide
adjustments to the maximum monthly rents to cover the costs of
evaluating and reducing lead-based paint hazards, as defined in
section 1004 of the Residential Lead-Based Paint Hazard
Reduction Act of 1992.
[(C) Adjustments in the maximum rents under subparagraphs (A)
and (B) shall not result in material differences between the
rents charged for assisted units and unassisted units of
similar quality, type, and age in the same market area, as
determined by the Secretary. In implementing the limitation
established under the preceding sentence, the Secretary shall
establish regulations for conducting comparability studies for
projects where the Secretary has reason to believe that the
application of the formula adjustments under subparagraph (A)
would result in such material differences. The Secretary shall
conduct such studies upon the request of any owner of any
project, or as the Secretary determines to be appropriate by
establishing, to the extent practicable, a modified annual
adjustment factor for such market area, as the Secretary shall
designate, that is geographically smaller than the applicable
housing area used for the establishment of the annual
adjustment factor under subparagraph (A). The Secretary shall
establish such modified annual adjustment factor on the basis
of the results of a study conducted by the Secretary of the
rents charged, and any change in such rents over the previous
year, for assisted units and unassisted units of similar
quality, type, and age in the smaller market area. Where the
Secretary determines that such modified annual adjustment
factor cannot be established or that such factor when applied
to a particular project would result in material differences
between the rents charged for assisted units and unassisted
units of similar quality, type, and age in the same market
area, the Secretary may apply an alternative methodology for
conducting comparability studies in order to establish rents
that are not materially different from rents charged for
comparable unassisted units. If the Secretary or appropriate
State agency does not complete and submit to the project owner
a comparability study not later than 60 days before the
anniversary date of the assistance contract under this section,
the automatic annual adjustment factor shall be applied. The
Secretary may not reduce the contract rents in effect on or
after April 15, 1987, for newly constructed, substantially
rehabilitated, or moderately rehabilitated projects assisted
under this section (including projects assisted under this
section as in effect prior to November 30, 1983), unless the
project has been refinanced in a manner that reduces the
periodic payments of the owner. Any maximum monthly rent that
has been reduced by the Secretary after April 14, 1987, and
prior to the enactment of this sentence shall be restored to
the maximum monthly rent in effect on April 15, 1987. For any
project which has had its maximum monthly rents reduced after
April 14, 1987, the Secretary shall make assistance payments
(from amounts reserved for the originalcontract) to the owner
of such project in an amount equal to the difference between the
maximum monthly rents in effect on April 15, 1987, and the reduced
maximum monthly rents, multiplied by the number of months that the
reduced maximum monthly rents were in effect.
[(3)(A) The amount of the monthly assistance payment with
respect to any dwelling unit shall be the difference between
the maximum monthly rent which the contract provides that the
owner is to receive for the unit and the rent the family is
required to pay under section 3(a) of this Act. Reviews of
family income shall be made no less frequently than annually.
[(B)(i) A family receiving tenant-based rental assistance
under subsection (b)(1) may pay a higher percentage of income
than that specified under section 3(a) of this Act if--
[(I) the family notifies the local public housing
agency of its interest in a unit renting for an amount
which exceeds the permissible maximum monthly rent
established for the market area under paragraph (1),
and
[(II) such agency determines that the rent for the
unit and the rental payments of the family are
reasonable, after taking into account other family
expenses (including child care, unreimbursed medical
expenses, and other appropriate family expenses).
[(ii) A public housing agency shall not approve such excess
rentals for more than 10 percent of its annual allocation of
incremental rental assistance under subsection (b)(1). A public
housing agency that approves such excess rentals for more than
5 percent of its annual allocation shall submit a report to the
Secretary not later than 30 days following the end of the
fiscal year. The report shall be submitted in such form and in
accordance with such procedures as the Secretary shall
establish and shall describe the public housing agency's
reasons for making the exceptions, including any available
evidence that the exceptions were made necessary by problems
with the fair market rent established for the area. The
Secretary shall ensure that each report submitted in accordance
with this clause is readily available for public inspection for
a period of not less than 3 years, beginning not less than 30
days following the date on which the report is submitted to the
Secretary.
[(iii) The Secretary shall, not later than 3 months following
the end of each fiscal year, submit a report to Congress that
identifies the public housing agencies that have submitted
reports for such fiscal year under clause (ii), summarizes and
assesses such reports, and includes recommendations for such
legislative or administrative actions that the Secretary deems
appropriate to correct problems identified in such reports.
[(4) The assistance contract shall provide that assistance
payments may be made only with respect to a dwelling unit under
lease for occupancy by a family determined to be a lower income
family at the time it initially occupied such dwelling unit or
by a family that qualifies to receive assistance under
subsection (b) pursuant to section 223 or 226 of the Low-Income
Housing Preservation and Resident Homeownership Act of 1990,
except that such payments may be made with respect to
unoccupied units for a period not exceeding sixty days (A) in
the event that a family vacates a dwelling unit before the
expiration date of the lease for occupancy or (B) where a good
faith effort is being made to fill an unoccupied unit, and,
subject to the provisions of the following sentence, such
payments may be made, in the case of a newly constructed or
substantially rehabilitated project, after such sixty-day
period in an amount equal to the debt service attributable to
such an unoccupied dwelling unit for a period not to exceed one
year, if a good faith effort is being made to fill the unit and
the unit provides decent, safe, and sanitary housing. No such
payment may be made after such sixty-day period if the
Secretary determines that the dwelling unit is in a project
which provides the owner with revenues exceeding the costs
incurred by such owner with respect to such project.
[(5) Assistance payments may be made with respect to up to
100 per centum of the dwelling units in any structure upon the
application of the owner or prospective owner. Within the
category of projects containing more than fifty units and
designed for use primarily for nonelderly and nonhandicapped
persons which are not subject to mortgages purchased under
section 305 of the National Housing Act, the Secretary may give
preference to applications for assistance involving not more
than 20 per centum of the dwelling units in a project. In
according any such preference, the Secretary shall compare
applications received during distinct time periods not
exceeding sixty days in duration.
[(6) The Secretary shall take such steps as may be necessary,
including the making of contracts for assistance payments in
amounts in excess of the amounts required at the time of the
initial renting of dwelling units, the reservation of annual
contributions authority for the purpose of amending housing
assistance contracts, or the allocation of a portion of new
authorizations for the purpose of amending housing assistance
contracts, to assure that assistance payments are increased on
a timely basis to cover increases in maximum monthly rents or
decreases in family incomes.
[(7) To the extent authorized in contracts entered into by
the Secretary with a public housing agency, such agency may
purchase any structure containing one or more dwelling units
assisted under this section for the purpose of reselling the
structure to the tenant or tenants occupying units aggregating
in value at least 80 per centum of the structure's total value.
Any such resale may be made on the terms and conditions
prescribed under section 5(h) and subject to the limitation
contained in such section.
[(8) Each contract under this section (other than a contract
for assistance under the certificate or voucher program) shall
provide that the owner will notify tenants at least 90 days
prior to the expiration of the contract of any rent increase
which may occur as a result of the expiration of such contract.
[(9) Not less than 1 year prior to terminating any contract
under which assistance payments are received under this
section, other than a contract under the certificate or voucher
program, an owner shall provide written notice to the Secretary
and the tenants involved of the proposed termination,
specifying the reasons for the termination with sufficient
detail to enable the Secretary to evaluate whether the
termination is lawful and whether there are additional actions
that can be taken by the Secretary to avoid the termination.The
owner's notice shall include a statement that the owner and the
Secretary may agree to a renewal of the contract, thus avoiding the
termination. The Secretary shall review the owner's notice, shall
consider whether there are additional actions that can be taken by the
Secretary to avoid the termination, and shall ensure a proper
adjustment of the contract rents for the project in conformity with the
requirements of paragraph (2). The Secretary shall issue a written
finding of the legality of the termination and the reasons for the
termination, including the actions considered or taken to avoid the
termination. Within 30 days of the Secretary's finding, the owner shall
provide written notice to each tenant of the Secretary's decision. For
purposes of this paragraph, the term ``termination'' means the
expiration of the assistance contract or an owner's refusal to renew
the assistance contract, and such term shall include termination of the
contract for business reasons.
[(10) If an owner provides notice of proposed termination
under paragraph (9) and the contract rent is lower than the
maximum monthly rent for units assisted under subsection
(b)(1), the Secretary shall adjust the contract rent based on
the maximum monthly rent for units assisted under subsection
(b)(1) and the value of the low-income housing after
rehabilitation.
[(d)(1) Contracts to make assistance payments entered into by
a public housing agency with an owner of existing housing units
shall provide (with respect to any unit) that--
[(A) the selection of tenants shall be the function
of the owner, subject to the provisions of the annual
contributions contract between the Secretary and the
agency, except that for the certificate and moderate
rehabilitation programs only, for the purpose of
selecting families to be assisted, the public housing
agency may establish, after public notice and an
opportunity for public comment, a written system of
preferences for selection that is not inconsistent with
the comprehensive housing affordability strategy under
title I of the Cranston-Gonzalez National Affordable
Housing Act;
[(B)(i) the lease between the tenant and the owner
shall be for at least one year or the term of such
contract, whichever is shorter, and shall contain other
terms and conditions specified by the Secretary;
[(ii) during the term of the lease, the owner shall
not terminate the tenancy except for serious or
repeated violation of the terms and conditions of the
lease, for violation of applicable Federal, State, or
local law, or for other good cause;
[(iii) during the term of the lease, any criminal
activity that threatens the health, safety, or right to
peaceful enjoyment of the premises by other tenants,
any criminal activity that threatens the health,
safety, or right to peaceful enjoyment of their
residences by persons residing in the immediate
vicinity of the premises, or any drug-related criminal
activity on or near such premises, engaged in by a
tenant of any unit, any member of the tenant's
household, or any guest or other person under the
tenant's control, shall be cause for termination of
tenancy;
[(iv) any termination of tenancy shall be preceded by
the owner's provision of written notice to the tenant
specifying the grounds for such action; and
[(v) it shall be cause for termination of the tenancy
of a tenant if such tenant--
[(I) is fleeing to avoid prosecution, or
custody or confinement after conviction, under
the laws of the place from which the individual
flees, for a crime, or attempt to commit a
crime, which is a felony under the laws of the
place from which the individual flees, or
which, in the case of the State of New Jersey,
is a high misdemeanor under the laws of such
State; or
[(II) is violating a condition of probation
or parole imposed under Federal or State law;
[(C) maintenance and replacement (including
redecoration) shall be in accordance with the standard
practice for the building concerned as established by
the owner and agreed to by the agency; and
[(D) the agency and the owner shall carry out such
other appropriate terms and conditions as may be
mutually agreed to by them.
[(2)(A) Each contract for an existing structure entered into
under this section shall be for a term of not less than one
month nor more than one hundred and eighty months. The
Secretary shall permit public housing agencies to enter into
contracts for assistance payments of less than 12 months
duration in order to avoid disruption in assistance to eligible
families if the annual contributions contract is within 1 year
of its expiration date. Where the Secretary enters into an
annual contributions contract with a public housing agency
pursuant to which the agency will enter into a contract for
assistance payments with respect to an existing structure, the
contract for assistance payments may not be attached to the
structure unless (i) the Secretary and the public housing
agency approve such action, and (ii) the owner agrees to
rehabilitate the structure other than with assistance under
this Act and otherwise complies with the requirements of this
section, except that the Secretary shall permit the public
housing agency to approve such attachment with respect to not
more than 15 percent of the assistance provided by the public
housing agency if the requirements of clause (ii) are met.
Notwithstanding any other provision of this section, a public
housing agency and an applicable State agency may, on a
priority basis, attach to structures not more than an
additional 15 percent of the assistance provided by the public
housing agency or the applicable State agency only with respect
to projects assisted under a State program that permits the
owner of the projects to prepay a State assisted or subsidized
mortgage on the structure, except that attachment of assistance
under this sentence shall be for the purpose of (i) providing
incentives to owners to preserve such projects for occupancy by
lower and moderate income families (for the period that
assistance under this sentence is available), and (ii) to
assist lower income tenants to afford any increases in rent
that may be required to induce the owner to maintain occupancy
in the project by lower and moderate income tenants.
[(B) The Secretary shall permit any public housing agency to
approve the attachment of assistance under subsection (b)(1)
with respect to any newly constructed structure if--
[(i) the owner or prospective owner agrees to
construct the structure other than with assistance
under this Act and otherwise complies with the
requirements of this section; and
[(ii) the aggregate assistance provided by the public
housing agency pursuant to this subparagraph and the
last sentence of subparagraph (A) does not exceed 15
percent of the assistance provided by the public
housing agency.
[(C) In the case of a contract for assistance payments that
is attached to a structure under this paragraph, a public
housing agency shall enter into a contract with an owner,
contingent upon the future availability of appropriations for
the purpose of renewing expiring contracts for assistance
payments as provided in appropriations Acts, to extend the term
of the underlying contract for assistance payments for such
period or periods as the Secretary determines to be appropriate
to achieve long-term affordability of the housing. The contract
shall obligate the owner to have such extensions of the
underlying contract for assistance payments accepted by the
owner and the owner's successors in interest. To the extent
assistance is used as provided in the penultimate sentence of
subparagraph (A), the contract for assistance may, at the
option of the public housing agency, have an initial term not
exceeding 15 years.
[(D) Where a contract for assistance payments is attached to
a structure, the owner shall adopt written tenant selection
procedures that are satisfactory to the Secretary as (i)
consistent with the purpose of improving housing opportunities
for very low-income families; and (ii) reasonably related to
program eligibility and an applicant's ability to perform the
obligations of the lease. An owner shall promptly notify in
writing any rejected applicant of the grounds for any
rejection.
[(E) The Secretary shall annually survey public housing
agencies to determine which public housing agencies have, in
providing assistance in such year, reached the 15 percent
limitations contained in subparagraphs (A) and (B), and shall
report to the Congress on the results of such survey.
[(F)(i) In determining the amount of assistance provided
under an assistance contract for project-based assistance under
this paragraph or a contract for assistance for housing
constructed or substantially rehabilitated pursuant to
assistance provided under section 8(b)(2) of this Act (as such
section existed immediately before October 1, 1983), the
Secretary may consider and annually adjust, with respect to
such project, for the cost of employing or otherwise retaining
the services of one or more service coordinators under section
661 of the Housing and Community Development Act of 1992 to
coordinate the provision of any services within the project for
residents of the project who are elderly or disabled families.
[(ii) The budget authority available under section 5(c) for
assistance under this section is authorized to be increased by
$15,000,000 on or after October 1, 1992, and by $15,000,000 on
or after October 1, 1993. Amounts made available under this
subparagraph shall be used to provide additional amounts under
annual contributions contracts for assistance under this
section which shall be made available through assistance
contracts only for the purpose of providing service
coordinators under clause (i) for projects receiving project-
based assistance under this paragraph and to provide additional
amounts under contracts for assistance for projects constructed
or substantially rehabilitated pursuant to assistance provided
under section 8(b)(2) of this Act (as such section existed
immediately before October 1, 1983) only for such purpose.
[(G) An assistance contract for project-based assistance
under this paragraph shall provide that the owner shall ensure
and maintain compliance with subtitle C of title VI of the
Housing and Community Development Act of 1992 and any
regulations issued under such subtitle.
[(H) An owner of a covered section 8 housing project (as such
term is defined in section 659 of the Housing and Community
Development Act of 1992) may give preference for occupancy of
dwelling units in the project, and reserve units for occupancy,
in accordance with subtitle D of title VI of the Housing and
Community Development Act of 1992.
[(3) Notwithstanding any other provision of law, with the
approval of the Secretary the public housing agency
administering a contract under this section with respect to
existing housing units may exercise all management and
maintenance responsibilities with respect to those units
pursuant to a contract between such agency and the owner of
such units.
[(4) A public housing agency that serves more than one unit
of general local government may, at the discretion of the
agency, in allocating assistance under this section, give
priority to disabled families that are not elderly families.
[(e)(1) Nothing in this Act shall be deemed to prohibit an
owner from pledging, or offering as security for any loan or
obligation, a contract for assistance payments entered into
pursuant to this section: Provided, That such security is in
connection with a project constructed or rehabilitated pursuant
to authority granted in this section, and the terms of the
financing or any refinancing have been approved by the
Secretary.
[(f) As used in this section--
[(1) the term ``owner'' means any private person or
entity, including a cooperative, an agency of the
Federal Government, or a public housing agency, having
the legal right to lease or sublease dwelling units;
[(2) the terms ``rent'' or ``rental'' mean, with
respect to members of a cooperative, the charges under
the occupancy agreements between such members and the
cooperative;
[(3) the term ``debt service'' means the required
payments for principal and interest made with respect
to a mortgage secured by housing assisted under this
Act;
[(4) the term ``participating jurisdiction'' means a
State or unit of general local government designated by
the Secretary to be a participating jurisdiction under
title II of the Cranston-Gonzalez National Affordable
Housing Act;
[(5) the term ``drug-related criminal activity''
means the illegal manufacture, sale, distribution, use,
or possession with intent to manufacture, sell,
distribute, or use, of a controlledsubstance (as
defined in section 102 of the Controlled Substances Act (21 U.S.C.
802));
[(6) the term ``project-based assistance'' means
rental assistance under subsection (b) that is attached
to the structure pursuant to subsection (d)(2); and
[(7) the term ``tenant-based assistance'' means
rental assistance under subsection (b) or (o) that is
not project-based assistance.
[(g) Notwithstanding any other provision of this Act,
assistance payments under this section may be provided, in
accordance with regulations prescribed by the Secretary, with
respect to some or all of the units in any project approved
pursuant to section 202 of the Housing Act of 1959.
[(h) Sections 5(e) and 6 and any other provisions of this Act
which are inconsistent with the provisions of this section
shall not apply to contracts for assistance entered into under
this section.
[(i) The Secretary may not consider the receipt by a public
housing agency of assistance under section 811(b)(1) of the
Cranston-Gonzalez National Affordable Housing Act, or the
amount received, in approving assistance for the agency under
this section or determining the amount of such assistance to be
provided.
[(j)(1) The Secretary may enter into contracts to make
assistance payments under this subsection to assist low-income
families by making rental assistance payments on behalf of any
such family which utilizes a manufactured home as its principal
place of residence. Such payments may be made with respect to
the rental of the real property on which there is located a
manufactured home which is owned by any such family or with
respect to the rental by such family of a manufactured home and
the real property on which it is located. In carrying out this
subsection, the Secretary may--
[(A) enter into annual contributions contracts with
public housing agencies pursuant to which such agencies
may enter into contracts to make such assistance
payments to the owners of such real property, or
[(B) enter into such contracts directly with the
owners of such real property.
[(2)(A) A contract entered into pursuant to this paragraph
shall establish the maximum monthly rent (including maintenance
and management charges) which the owner is entitled to receive
for the space on which a manufactured home is located and with
respect to which assistance payments are to be made. The
maximum monthly rent shall not exceed by more than 10 per
centum the fair market rental established by the Secretary
periodically (but not less than annually) with respect to the
market area for the rental of real property suitable for
occupancy by families assisted under this paragraph.
[(B) The amount of any monthly assistance payment with
respect to any family which rents real property which is
assisted under this paragraph, and on which is located a
manufactured home which is owned by such family shall be the
difference between the rent the family is required to pay under
section 3(a) of this Act and the sum of--
[(i) the monthly payment made by such family to
amortize the cost of purchasing the manufactured home;
[(ii) the monthly utility payments made by such
family, subject to reasonable limitations prescribed by
the Secretary; and
[(iii) the maximum monthly rent permitted with
respect to the real property which is rented by such
family for the purpose of locating its manufactured
home;
except that in no case may such assistance exceed the total
amount of such maximum monthly rent.
[(3)(A) Contracts entered into pursuant to this paragraph
shall establish the maximum monthly rent permitted with respect
to the manufactured home and the real property on which it is
located and with respect to which assistance payments are to be
made. The maximum monthly rent shall not exceed by more than 10
per centum the fair market rental established by the Secretary
periodically (but not less than annually) with respect to the
market area for the rental of a manufactured home and the real
property on which it is located suitable for occupancy by
families assisted under this paragraph, except that the maximum
monthly rent may exceed the fair market rental by more than 10
but not more than 20 per centum where the Secretary determines
that special circumstances warrant such higher maximum rent.
[(B) The amount of any monthly assistance payment with
respect to any family which rents a manufactured home and the
real property on which it is located and which is assisted
under this paragraph shall be the difference between the rent
the family is required to pay under section 3(a) of this Act
and the sum of--
[(i) the monthly utility payments made by such
family, subject to reasonable limitations prescribed by
the Secretary; and
[(ii) the maximum monthly rent permitted with respect
to the manufactured home and real property on which it
is located.
[(4) The provisions of subsection (c)(2) of this section
shall apply to the adjustments of maximum monthly rents under
the subsection.
[(5) Each contract entered into under the subsection shall be
for a term of not less than one month and not more than 180
months, except that in any case in which the manufactured home
park is substantially rehabilitated or newly constructed, such
term may not be less than 240 months, nor more than the maximum
term for a manufactured home loan permitted under section 2(b)
of the National Housing Act.
[(6) The Secretary may carry out this subsection without
regard to whether the manufactured home park is existing,
substantially rehabilitated, or newly constructed.
[(7) In the case of any substantially rehabilitated or newly
constructed manufactured home park containing spaces with
respect to which assistance is made under this subsection, the
principal amount of the mortgage attributable to the rental
spaces within the park may not exceed an amount established by
the Secretary which is equal to or less than the limitation for
manufactured home parks described in section 207(c)(3) of the
National Housing Act, and the Secretary may increase such
limitation in high cost areas in the manner described in such
section.
[(8) The Secretary may prescribe other terms and conditions
which are necessary for the purpose of carrying out the
provisions of this subsection and which are consistent with the
purposes of this subsection.
[(k) The Secretary shall establish procedures which are
appropriate and necessary to assure that income data provided
to public housing agencies and owners by families applying for
or receiving assistance under this section is complete and
accurate. In establishing such procedures, the Secretary shall
randomly, regularly, and periodically select a sample of
families to authorize the Secretary to obtain information on
these families for the purpose of income verification, or to
allow those families to provide such information themselves.
Such information may include, but is not limited to, data
concerning unemployment compensation and Federal income
taxation and data relating to benefits made available under the
Social Security Act, the Food Stamp Act of 1977, or title 38,
United States Code. Any such information received pursuant to
this subsection shall remain confidential and shall be used
only for the purpose of verifying incomes in order to determine
eligibility of families for benefits (and the amount of such
benefits, if any) under this section.
[(n) In making assistance available under subsections (b)(1)
and (e)(2), the Secretary may provide assistance with respect
to residential properties in which some or all of the dwelling
units do not contain bathroom or kitchen facilities, if--
[(1) the property is located in an area in which
there is a significant demand for such units, as
determined by the Secretary;
[(2) the unit of general local government in which
the property is located and the local public housing
agency approve of such units being utilized for such
purpose; and
[(3) in the case of assistance under subsection
(b)(1), the unit of general local government in which
the property is located and the local public housing
agency certify to the Secretary that the property
complies with local health and safety standards.
The Secretary may waive, in appropriate cases, the limitation
and preference described in the second and third sentences of
section 3(b)(3) with respect to the assistance made available
under this subsection.
[(o) Rental Vouchers.--(1) The Secretary may provide
assistance using a payment standard in accordance with this
subsection. The payment standard shall be used to determine the
monthly assistance which may be paid for any family, as
provided in paragraph (2) of this subsection, and shall be
based on the fair market rental established under subsection
(c).
[(2) The monthly assistance payment for any family shall be
the amount by which the payment standard for the area exceeds
30 per centum of the family's monthly adjusted income, except
that such monthly assistance payment shall not exceed the
amount by which the rent for the dwelling unit (including the
amount allowedfor utilities in the case of a unit with separate
utility metering) exceeds 10 per centum of the family's monthly income.
[(3)(A) Assistance payments may be made only for (i) a family
determined to be a very low-income family at the time it
initially receives assistance, (ii) a family previously
assisted under this Act, (iii) a family that is determined to
be a low-income family at the time it initially receives
assistance and that is displaced by activities under section
17(c), (iv) a family that qualifies to receive a voucher in
connection with a homeownership program approved under title IV
of the Cranston-Gonzalez National Affordable Housing Act, or
(v) a family that qualifies to receive a voucher under section
223 or 226 of the Low-Income Housing Preservation and Resident
Homeownership Act of 1990.
[(B) For the purpose of selecting families to be assisted
under this subsection, the public housing agency may establish,
after public notice and an opportunity for public comment, a
written system of preferences for selection that is not
inconsistent with the comprehensive housing affordability
strategy under title I of the Cranston-Gonzalez National
Affordable Housing Act.
[(4) If a family vacates a dwelling unit before the
expiration of a lease term, no assistance payment may be made
with respect to the unit after the month during which the unit
was vacated.
[(5) A contract with a public housing agency for annual
contributions under this subsection shall be for an initial
term of sixty months. The Secretary shall require (with respect
to any unit) that (A) the public housing agency inspect the
unit before any assistance payment may be made to determine
that it meets housing quality standards for decent, safe, and
sanitary housing established by the Secretary for the purpose
of this section, and (B) the public housing agency make annual
or more frequent inspections during the contract term. No
assistance payment may be made for a dwelling unit which fails
to meet such quality standards, unless any such failure is
promptly corrected by the owner and the correction verified by
the public housing agency.
[(6)(A) The amount of assistance payments under this
subsection may, in the discretion of the public housing agency,
be adjusted annually where necessary to assure continued
affordability. The aggregate amount of adjustments pursuant to
the preceding sentence may not exceed the amount of any excess
of the annual contributions provided for in the contract over
the amount of assistance payments actually paid (including
amounts which otherwise become available during the contract
period).
[(B) For the purpose of subparagraph (A), each contract with
a public housing agency for annual contributions under this
subsection shall provide annual contributions equal to 115 per
centum of the estimated aggregate amount of assistance required
during the first year of the contract.
[(C) Any amounts not needed for adjustments under
subparagraph (A) may be used to provide assistance payments for
additional families.
[(7) A public housing agency may utilize authority available
under this subsection to provide assistance with respect to
cooperative or mutual housing which has a resale structure
which maintains affordability for low-income families where the
agency determines such action will assist in maintaining the
affordability of such housing for such families.
[(8) The Secretary may set aside up to 5 percent of the
budget authority available under this subsection as an
adjustment pool. The Secretary shall use amounts in the
adjustment pool for adjustments pursuant to paragraph (6)(A) to
ensure continued affordability where the Secretary determines
additional assistance for this purpose is necessary, based on
documentation submitted by a public housing agency.
[(9) The Secretary is authorized to enter into contracts with
public housing agencies to provide rental vouchers for the
purpose of replacing public housing transferred in accordance
with title III of this Act. Each contract entered into under
this paragraph shall be for a term of not more than 60 months.
[(10)(A) The rent for units assisted under this subsection
shall be reasonable in comparison with rents charged for
comparable units in the private unassisted market or assisted
under section (b). A public housing agency shall, at the
request of a family assisted under this subsection, assist such
family in negotiating a reasonable rent with an owner. A public
housing agency shall review all rents for units under
consideration by families assisted under this subsection (and
all rent increases for units under lease by families assisted
under this subsection) to determine whether the rent (or rent
increase) requested by an owner is reasonable. If a public
housing agency determines that the rent (or rent increase) for
a unit is not reasonable, the agency may disapprove a lease for
such unit.
[(11)(A) The Secretary may enter into contracts to make
assistance payments under this paragraph to assist low-income
families by making rental assistance payments on behalf of any
such family which utilizes a manufactured home as its principal
place of residence. Such payments may be made with respect to
the rental of the real property on which there is located a
manufactured home which is owned by any such family. In
carrying out this paragraph the Secretary shall enter into
annual contributions contracts with public housing agencies
pursuant to which such agencies may enter into contracts to
make such assistance payments to the owners of such real
property.
[(B)(i) A contract entered into pursuant to this subparagraph
shall establish the rent (including maintenance and management
charges) for the space on which a manufactured home is located
and with respect to which assistance payments are to be made.
The public housing agency shall establish a payment standard
based on the fair market rental established by the Secretary
periodically (but not less than annually) with respect to the
market area for the rental of real property suitable for
occupancy by families assisted under this subparagraph.
[(ii) The amount of any monthly assistance payment with
respect to any family which rents real property which is
assisted under this subparagraph and on which is located a
manufactured home which is owned by such family shall be the
amount by which 30 percent of the family's monthly adjusted
income is exceeded by the sum of--
[(I) the monthly payment made by such family to
amortize the cost of purchasing the manufactured home;
[(II) the monthly utility payments made by such
family, subject to reasonable limitations prescribed by
the Secretary; and
[(III) the payment standard with respect to the real
property which is rented by such family for the purpose
of locating its manufactured home;
except that in no case may such assistance exceed the amount by
which the rent for the property exceeds 10 percent of the
family's monthly income.
[(C) The provisions of paragraph (6)(A) shall apply to the
adjustments of maximum monthly rents under this paragraph.
[(D) The Secretary may carry out this paragraph without
regard to whether the manufactured home park is existing,
substantially rehabilitated, or newly constructed.
[(E) In the case of any substantially rehabilitated or newly
constructed manufactured home park containing spaces with
respect to which assistance is made under this paragraph, the
principal amount of the mortgage attributable to the rental
spaces within the park may not exceed an amount established by
the Secretary which is equal to or less than the limitation for
manufactured home parks described in section 207(c)(3) of the
National Housing Act, and the Secretary may increase such
limitation in high cost areas in the manner described in such
section.
[(F) The Secretary may prescribe other terms and conditions
which are necessary for the purpose of carrying out the
provisions of this paragraph and which are consistent with the
purposes of this paragraph.
[(p) In order to assist elderly families (as defined in
section 3(b)(3)) who elect to live in a shared housing
arrangement in which they benefit as a result of sharing the
facilities of a dwelling with others in a manner that
effectively and efficiently meets their housing needs and
thereby reduces their costs of housing, the Secretary shall
permit assistance provided under the existing housing and
moderate rehabilitation programs to be used by such families in
such arrangements. In carrying out this subsection, the
Secretary shall issue minimum habitability standards for the
purpose of assuring decent, safe, and sanitary housing for such
families while taking into account the special circumstances of
shared housing.
[(q)(1) The Secretary shall establish a fee for the costs
incurred in administering the certificate and housing voucher
programs under subsections (b) and (o). The amount of the fee
for each month for which a dwelling unit is covered by an
assistance contract shall be 8.2 percent of the fair market
rental established under subsection (c)(1) for a 2-bedroom
existing rental dwelling unit in the market area of the public
housing agency. The Secretary may increase the fee if necessary
to reflect the higher costs of administering small programs and
programs operating over large geographic areas.
[(2)(A) The Secretary shall also establish reasonable fees
(as determined by the Secretary) for--
[(i) the costs of preliminary expenses (not to exceed
$275) that the public housing agency documents it has
incurred in connection with new allocations of
assistance under the certificate and housing voucher
programs under subsections (b) and (o);
[(ii) the costs incurred in assisting families who
experience difficulty (as determined by the Secretary)
in obtaining appropriate housing under the programs;
and
[(iii) extraordinary costs approved by the Secretary.
[(B) The method used to calculate fees under subparagraph (A)
shall be the same for the certificate and housing voucher
programs under subsections (b) and (o) and shall take into
account local cost differences.
[(3)(A) Fees under this subsection may be used for the costs
of employing or otherwise retaining the services of one or more
service coordinators under section 661 of the Housing and
Community Development Act of 1992 to coordinate the provision
of supportive services for elderly families and disabled
families on whose behalf tenant-based assistance is provided
under this section or section 811(b)(1). Such service
coordinators shall have the same responsibilities with respect
to such families as service coordinators of covered federally
assisted housing projects have under section 661 of such Act
with respect to residents of such projects.
[(B) To the extent amounts are provided in appropriation
Acts under subparagraph (C), the Secretary shall increase fees
under this subsection to provide for the costs of such service
coordinators for public housing agencies.
[(C) The budget authority available under section 5(c) for
assistance under this section is authorized to be increased by
$5,000,000 on or after October 1, 1992, and by $5,000,000 on or
after October 1, 1993. Amounts made available under this
subparagraph shall be used to provide additional amounts under
annual contributions contracts for increased fees under this
subsection, which shall be used only for the purpose of
providing service coordinators for public housing agencies
described in subparagraph (A).
[(4) The Secretary may establish or increase a fee in
accordance with this subsection only to such extent or in such
amounts as are provided in appropriation Acts.
[(r)(1) Any family assisted under subsection (b) or (o) may
receive such assistance to rent an eligible dwelling unit if
the dwelling unit to which the family moves is within the same
State, or the same or a contiguous metropolitan statistical
area as the metropolitan statistical area within which is
located the area of jurisdiction of the public housing agency
approving such assistance; except that any family not living
within the jurisdiction of a public housing agency at the time
that such family applies for assistance from such agency shall,
during the 12-month period beginning upon the receipt of any
tenant-based rental assistance made available on behalf of the
family, use such assistance to rent an eligible dwelling unit
located within the jurisdiction served by such public housing
agency.
[(2) The public housing agency having authority with respect
to the dwelling unit to which a family moves under this
subsection shall have the responsibility of carrying out the
provisions of this subsection with respect to the family. If no
public housing agency has authority with respect to the
dwelling unit to which a familymoves under this subsection, the
public housing agency approving the assistance shall have such
responsibility.
[(3) In providing assistance under subsection (b) or (o) for
any fiscal year, the Secretary shall give consideration to any
reduction in the number of resident families incurred by a
public housing agency in the preceding fiscal year as a result
of the provisions of this subsection.
[(4) The provisions of this subsection may not be construed
to restrict any authority of the Secretary under any other
provision of law to provide for the portability of assistance
under this section.
[(s) In selecting families for the provision of assistance
under this section (including subsection (o)), a public housing
agency may not exclude or penalize a family solely because the
family resides in a public housing project.
[(u) In the case of low-income families living in rental
projects rehabilitated under section 17 of this Act or section
533 of the Housing Act of 1949 before rehabilitation--
[(1) certificates or vouchers under this section
shall be made for families who are required to move out
of their units because of the physical rehabilitation
activities or because of overcrowding;
[(2) at the discretion of each public housing agency
or other agency administering the allocation of
assistance, certificates or vouchers under this section
may be made for families who would have to pay more
than 30 percent of their adjusted income for rent after
rehabilitation whether they choose to remain in, or to
move from, the project; and
[(3) the Secretary shall allocate assistance for
certificates or vouchers under this section to ensure
that sufficient resources are available to address the
physical or economic displacement, or potential
economic displacement, of existing tenants pursuant to
paragraphs (1) and (2).
[The Secretary may extend expiring contracts entered into
under this section for project-based loan management assistance
to the extent necessary to prevent displacement of low-income
families receiving such assistance as of September 30, 1996.
[(w) Renewal of Expiring Contracts.--Not later than 30 days
after the beginning of each fiscal year, the Secretary shall
publish in the Federal Register a plan for reducing, to the
extent feasible, year-to-year fluctuations in the levels of
budget authority that will be required over the succeeding 5-
year period to renew expiring rental assistance contracts
entered into under this section since the enactment of the
Housing and Community Development Act of 1974. To the extent
necessary to carry out such plan and to the extent approved in
appropriations Acts, the Secretary is authorized to enter into
annual contributions contracts with terms of less than 60
months.
[(x) Family Unification.--
[(1) Increase in budget authority.--The budget
authority available under section 5(c) for assistance
under section 8(b) is authorized to be increased by
$100,000,000 on or after October 1, 1992, and by
$104,200,000 on or after October 1, 1993.
[(2) Use of funds.--The amounts made available under
this subsection shall be used only in connection with
housing certificate assistance under section 8 on
behalf of any family (A) who is otherwise eligible for
such assistance, and (B) who the public child welfare
agency for the jurisdiction has certified is a family
for whom the lack of adequate housing is a primary
factor in the imminent placement of the family's child
or children in out-of-home care or the delayed
discharge of a child or children to the family from
out-of-home care.
[(3) Allocation.--The amounts made available under
this subsection shall be allocated by the Secretary
through a national competition among applicants based
on demonstrated need for assistance under this
subsection. To be considered for assistance, an
applicant shall submit to the Secretary a written
proposal containing a report from the public child
welfare agency serving the jurisdiction of the
applicant that describes how a lack of adequate housing
in the jurisdiction is resulting in the initial or
prolonged separation of children from their families,
and how the applicant will coordinate with the public
child welfare agency to identify eligible families and
provide the families with assistance under this
subsection.
[(4) Definitions.--For purposes of this subsection:
[(A) Applicant.--The term ``applicant'' means
a public housing agency or any other agency
responsible for administering assistance under
section 8.
[(B) Public child welfare agency.--The term
``public child welfare agency'' means the
public agency responsible under applicable
State law for determining that a child is at
imminent risk of placement in out-of-home care
or that a child in out-of-home care under the
supervision of the public agency may be
returned to his or her family.
[(y) Homeownership Option.--
[(1) Use of assistance for homeownership.--A family
receiving tenant-based assistance under this section
may receive assistance for occupancy of a dwelling
owned by one or more members of the family if the
family--
[(A) is a first-time homeowner;
[(B)(i) participates in the family self-
sufficiency program under section 23 of the
public housing agency providing the assistance;
or
[(ii) demonstrates that the family has income
from employment or other sources (other than
public assistance), as determined in accordance
with requirements of the Secretary, that is not
less than twice the payment standard
established by the public housing agency (or
such other amount as may be established by the
Secretary);
[(C) except as provided by the Secretary,
demonstrates at the time the family initially
receives tenant-based assistance under this
subsection that one or more adult members of
the family have achieved employment for the
period as the Secretary shall require;
[(D) participates in a homeownership and
housing counseling program provided by the
agency; and
[(E) meets any other initial or continuing
requirements established by the public housing
agency in accordance with requirements
established by the Secretary.
[(2) Monthly assistance payment.--
[(A) In general.--Notwithstanding any other
provisions of this section governing
determination of the amount of assistance
payments under this section on behalf of a
family, the monthly assistance payment for any
family assisted under this subsection shall be
the amount by which the fair market rental for
the area established under subsection (c)(1)
exceeds 30 percent of the family's monthly
adjusted income; except that the monthly
assistance payment shall not exceed the amount
by which the monthly homeownership expenses, as
determined in accordance with requirements
established by the Secretary, exceeds 10
percent of the family's monthly income.
[(B) Exclusion of equity from income.--For
purposes of determining the monthly assistance
payment for a family, the Secretary shall not
include in family income an amount imputed from
the equity of the family in a dwelling occupied
by the family with assistance under this
subsection.
[(3) Recapture of certain amounts.--Upon sale of the
dwelling by the family, the Secretary shall recapture
from any net proceeds the amount of additional
assistance (as determined in accordance with
requirements established by the Secretary) paid to or
on behalf of the eligible family as a result of
paragraph (2)(B).
[(4) Downpayment requirement.--Each public housing
agency providing assistance under this subsection shall
ensure that each family assisted shall provide from its
own resources not less than 80 percent of any
downpayment in connection with a loan made for the
purchase of a dwelling. Such resources may include
amounts from any escrow account for the family
established under section 23(d). Not more than 20
percent of the downpayment may be provided from other
sources, such as from nonprofit entities and programs
of States and units of general local government.
[(5) Ineligibility under other programs.--A family
may not receive assistance under this subsection during
any period when assistance is being provided for the
family under other Federal homeownership assistance
programs, as determined by the Secretary, including
assistance under the HOME Investment Partnerships Act,
the Homeownership and Opportunity Through HOPE Act,
title II of the Housing and Community Development Act
of 1987, and section 502 of the Housing Act of 1949.
[(6) Inapplicability of certain provisions.--
Assistance under this subsection shall not be subject
to the requirements of the following provisions:
[(A) Subsection (c)(3)(B) of this section.
[(B) Subsection (d)(1)(B)(i) of this section.
[(C) Any other provisions of this section
governing maximum amounts payable to owners and
amounts payable by assisted families.
[(D) Any other provisions of this section
concerning contracts between public housing
agencies and owners.
[(E) Any other provisions of this Act that
are inconsistent with the provisions of this
subsection.
[(7) Reversion to rental status.--
[(A) FHA-insured mortgages.--If a family
receiving assistance under this subsection for
occupancy of a dwelling defaults under a
mortgage for the dwelling insured by the
Secretary under the National Housing Act, the
family may not continue to receive rental
assistance under this section unless the family
(i) transfers to the Secretary marketable title
to the dwelling, (ii) moves from the dwelling
within the period established or approved by
the Secretary, and (iii) agrees that any
amounts the family is required to pay to
reimburse the escrow account under section
23(d)(3) may be deducted by the public housing
agency from the assistance payment otherwise
payable on behalf of the family.
[(B) Other mortgages.--If a family receiving
assistance under this subsection defaults under
a mortgage not insured under the National
Housing Act, the family may not continue to
receive rental assistance under this section
unless it complies with requirements
established by the Secretary.
[(C) All mortgages.--A family receiving
assistance under this subsection that defaults
under a mortgage may not receive assistance
under this subsection for occupancy of another
dwelling owned by one or more members of the
family.
[(8) Definition of first-time homeowner.--For
purposes of this subsection, the term ``first-time
homeowner'' means--
[(A) a family, no member of which has had a
present ownership interest in a principal
residence during the 3 years preceding the date
on which the family initially receives
assistance for homeownership under this
subsection; and
[(B) any other family, as the Secretary may
prescribe.
[(aa) Refinancing Incentive.--
[(1) In general.--The Secretary may pay all or a part
of the up front costs of refinancing for each project
that--
[(A) is constructed, substantially
rehabilitated, or moderately rehabilitated
under this section;
[(B) is subject to an assistance contract
under this section; and
[(C) was subject to a mortgage that has been
refinanced under section 223(a)(7) or section
223(f) of the National Housing Act to lower the
periodic debt service payments of the owner.
[(2) Share from reduced assistance payments.--The
Secretary may pay the up front cost of refinancing
only--
[(A) to the extent that funds accrue to the
Secretary from the reduced assistance payments
that results from the refinancing; and
[(B) after the application of amounts in
accordance with section 1012 of the Stewart B.
McKinney Homeless Assistance Amendments Act of
1988.
[(z) Termination of Section 8 Contracts and Reuse of
Recaptured Budget Authority.--
[(1) General authority.--The Secretary may reuse any
budget authority, in whole or part, that is recaptured
on account of termination of a housing assistance
payments contract (other than a contract for tenant-
based assistance) only for one or more of the
following:
[(A) Tenant-based assistance.--Pursuant to a
contract with a public housing agency, to
provide tenant-based assistance under this
section to families occupying units formerly
assisted under the terminated contract.
[(B) Project-based assistance.--Pursuant to a
contract with an owner, to attach assistance to
one or more structures under this section, for
relocation of families occupying units formerly
assisted under the terminated contract.
[(2) Families occupying units formerly assisted under
terminated contract.--Pursuant to paragraph (1), the
Secretary shall first make available tenant- or
project-based assistance to families occupying units
formerly assisted under the terminated contract. The
Secretary shall provide project-based assistance in
instances only where the use of tenant-based assistance
is determined to be infeasible by the Secretary.
[(3) Effective date.--This subsection shall be
effective for actions initiated by the Secretary on or
before September 30, 1995.
[(bb) Transfer of Budget Authority.--If an assistance
contract under this section, other than a contract for tenant-
based assistance, is terminated or is not renewed, or if the
contract expires, the Secretary shall, in order to provide
continued assistance to eligible families, including eligible
families receiving the benefit of the project-based assistance
at the time of the termination, transfer any budget authority
remaining in the contract to another contract. The transfer
shall be under such terms as the Secretary may prescribe.
[annual contributions for operation of lower income housing projects
[Sec. 9. (a)(1)(A) In addition to the contributions
authorized to be made for the purposes specified in section 5
of this Act, the Secretary may make annual contributions to
public housing agencies for the operation of low-income housing
projects. The contributions payable annually under this section
shall not exceed the amounts which the Secretary determines are
required (i) to assure the lower income character of the
projects involved, (ii) to achieve and maintain adequate
operating services and reserve funds, and (iii) with respect to
housing projects developed under the Indian and Alaskan Native
housing program assisted under this Act, to provide funds (in
addition to any other operating costs contributions approved by
the Secretary under this section) as determined by the
Secretary to be required to cover the administrative costs to
an Indian housing authority during the development period of a
project approved pursuant to section 5 and until such time as
the project is occupied. The Secretary shall embody the
provisions for such annual contributions in a contract
guaranteeing their payment subject to the availability of
funds, and such contract shall provide that no disposition of
the low-income housing project, with respect to which the
contract is entered into, shall occur during and for ten years
after the period when contributions were made pursuant to such
contract unless approved by the Secretary. If the Secretary
determines that a public housing agency has failed to take the
actions required to submit an acceptable audit on a timely
basis in accordance with chapter 75 of title 31, United States
Code, the Secretary may arrange for, and pay the costs of, the
audit. In such circumstances, the Secretary may withhold, from
assistance otherwise payable to the agency under this section,
amounts sufficient to pay for the reasonable costs of
conducting an acceptable audit, including, when appropriate,
the reasonable costs of accounting services necessary to place
the agency's books and records in auditable condition.
[(B)(i) Annual contributions under this section to any public
housing agency for any project with a sufficient number of
residents who are frail elderly or persons with disabilities
may be used, with respect to such project, for (I) the cost of
a management staff member to coordinate the provision of any
services within the project provided through any agency of the
Federal Government or any other public or private department,
agency, or organization to residents of the project who are
frail elderly or persons with disabilities to enable such
residents to live independently and prevent placement in
nursing homes or institutions; and (II) expenses for the
provision of services for such residents of the project to
enable such residents to live independently and prevent
placement in nursing homes or institutions, which may include
meal services, housekeeping and chore assistance, personal
care, laundry assistance, transportation services, and health-
related services, except that not more than 15 percent of the
cost of the provision of such services may be provided under
this section. For purposes of this clause, the term ``frail
elderly'' shall have the meaning given the term under section
202(d) of the Housing Act of 1959, except that such term does
not include any person receiving assistance provided under the
Congregate Housing Services Act of 1978 or section 802 of the
Cranston-Gonzalez National Affordable Housing Act, and the term
``persons with disabilities'' shall have the meaning given the
term under section 811 of the Cranston-Gonzalez National
Affordable Housing Act.
[(ii) Annual contributions under this section to any public
housing agency for any project may be used, with respect to
such project, for (I) the cost of employing or otherwise
retaining the services of one or more service coordinators
under section 661 of the Housing and Community Development Act
of 1992 to coordinate the provision of any supportive services
within the project forresidents of the project who are elderly
families and disabled families, and (II) expenses for the provision of
such services for such residents of the project. Not more than 15
percent of the cost of the provision of such services may be provided
under this section. Services may not be provided under this clause for
any person receiving assistance under the Congregate Housing Services
Act of 1978 or section 802 of the Cranston-Gonzalez National Affordable
Housing Act. The budget authority available under section 5(c) for
assistance under this section is authorized to be increased by
$30,000,000 on or after October 1, 1992, and by $30,000,000 on or after
October 1, 1993. Amounts made available under this clause shall be used
to provide additional annual contributions to public housing agencies
only for the purpose of providing service coordinators and services
under this clause for public housing projects.
[(2) The Secretary may not make assistance available under
this section for any low-income housing project unless such
project is one developed pursuant to a contributions contract
authorized by section 5 but not subject to section 8, except
that after the duration of any such contributions contract with
respect to a low-income housing project, the Secretary may
provide assistance under this section with respect to such
project as long as the lower income nature of such project is
maintained.
[(3)(A) For purposes of making payments under this section
(except for payments under paragraph (1)(B)), the Secretary
shall utilize a performance funding system that is
substantially based on the system defined in regulations and in
effect on the date of the enactment of the Housing and
Community Development Act of 1987 (as modified by this
paragraph), and that establishes standards for costs of
operation and reasonable projections of income, taking into
account the character and location of the project and the
characteristics of the families served, in accordance with a
formula representing the operations of a prototype well-managed
project. Such performance funding system shall be established
in consultation with public housing agencies and their
associations, be contained in a regulation promulgated by the
Secretary prior to the start of any fiscal year to which it
applies, and remain in effect for the duration of such fiscal
year without change. Notwithstanding the preceding sentences,
the Secretary shall revise the performance funding system by
June 15, 1988, to accurately reflect the increase in insurance
costs incurred by public housing agencies. Notwithstanding
sections 583(a) and 585(a) of title 5, United States Code (as
added by section 3(a) of the Negotiated Rulemaking Act of
1990), any proposed regulation providing for amendment,
alteration, adjustment, or other change to the performance
funding system relating to vacant public housing units shall be
issued pursuant to a negotiated rulemaking procedure under
subchapter IV of chapter 5 of such title (as added by section
3(a) of the Negotiated Rulemaking Act of 1990), and the
Secretary shall establish a negotiated rulemaking committee for
development of any such proposed regulations.
[(B) Under the performance funding system established under
this paragraph--
[(i) in the first year that the reductions occur, any
public housing agency shall share equally with the
Secretary any cost reductions due to the differences
between projected and actual utility rates attributable
to actions taken by the agency which lead to such
reductions, and in subsequent years, if the energy
savings are cost-effective, the Secretary may continue
the sharing arrangement with the public housing agency;
[(ii) in the case of any public housing agency that
receives financing (from a person other than the
Secretary) or enters into a performance contract to
undertake energy conservation improvements in a public
housing project, under which payment does not exceed
the cost of the energy saved as a result of the
improvements during a negotiated contract period of not
more than 12 years that is approved by the Secretary--
[(I) the public housing agency shall retain
100 percent of any cost avoidance due to
differences between projected and actual
utility consumption (adjusted for heating
degree days) attributable to the improvements,
until the term of the financing agreement is
completed, at which time the annual utility
expense level 3-year rolling base procedures
shall be applied using--
[(a) in the first year following the
end of the contract period, the energy
use during the 2 years prior to
installation of the energy conservation
improvements and the last contract
year;
[(b) in the second year following the
end of the contract period, the energy
use during the 1 year prior to
installation of the energy conservation
improvements and the 2 years following
the end of the contract period; and
[(c) in the third year following the
end of the contract period, the energy
use in the 3 years following the end of
the contract period; or
[(II) the Secretary shall provide an
additional operating subsidy above the current
allowable utility expense level equivalent to
the cost of the energy saved as a result of the
improvements and sufficient to cover payments
for the improvements through the term of the
contract or agreement;
[(iii) there shall be a formal review process for the
purpose of providing such revisions (either increases
or reductions) to the allowable expense level of a
public housing agency as necessary--
[(I) to correct inequities and abnormalities
that exist in the base year expense level of
such public housing agency;
[(II) to accurately reflect changes in
operating circumstances since the initial
determination of such base year expense level;
and
[(III) to ensure that the allowable expense
limit accurately reflects the higher cost of
operating the project in an economically
distressed unit of local government and the
lower cost of operating the project in an
economically prosperous unit of local
government;
[(iv) if a public housing agency redesigns or
substantially rehabilitates a public housing project so
that 2 or more dwellingunits are combined to create a
single larger dwelling unit, the payments received under this section
shall not be reduced solely because of the resulting reduction in the
number of dwelling units if not less than the same number of
individuals will reside in the new larger dwelling unit as resided in
the dwelling units that were combined to form such larger dwelling
unit; and
[(v) if a public housing agency renovates, converts,
or combines one or more dwelling units in a public
housing project to create congregate space to
accommodate the provision of supportive services in
accordance with section 22 of this Act and section 802
of the Cranston-Gonzalez National Affordable Housing
Act, the payments received under this section shall not
be reduced because of the resulting reduction in the
number of dwelling units.
[(4) Adjustments to a public housing agency's operating
subsidy made by the Secretary under this section shall reflect
actual changes in rental income collections resulting from the
application of section 904 of the Stewart B. McKinney Homeless
Assistance Amendments Act of 1988.
[(b) The aggregate rentals required to be paid in any year by
families residing in the dwelling units administered by a
public housing agency receiving annual contributions under this
section shall not be less than an amount equal to one-fifth of
the sum of the incomes of all such families.
[(c)(1) There are authorized to be appropriated for purposes
of providing annual contributions under this section
$2,282,436,000 for fiscal year 1993 and $2,378,298,312 for
fiscal year 1994.
[(2) There are also authorized to be appropriated to provide
annual contributions under this section, in addition to amounts
under paragraph (1), such sums as may be necessary for each of
fiscal years 1993 and 1994, to provide each public housing
agency with the difference between (A) the amount provided to
the agency from amounts appropriated pursuant to paragraph (1),
and (B) all funds for which the agency is eligible under the
performance funding system without adjustments for estimated or
unrealized savings.
[(3) In addition to amounts under paragraphs (1) and (2),
there are authorized to be appropriated for annual
contributions under this section to provide for the costs of
the adjustments to income and adjusted income under the
amendments made by sections 573(b) and (c) of the Cranston-
Gonzalez National Affordable Housing Act such sums as may be
necessary for fiscal years 1993 and 1994.
[(d) If, in any fiscal year beginning after September 30,
1979, any funds which have been appropriated for such year
remain after applying the provisions of the second and fourth
sentences of subsection (a)(1), the Secretary shall distribute
such funds to low-income housing projects which incurred
excessive costs which were beyond their control and the full
extent of which was not taken into account in the original
distribution of funds for such fiscal year.
[(e) In the case of any public housing agency that submits
its budget for any fiscal year of such agency to the Secretary
in a timely manner in accordance with the regulations issued by
the Secretary under this section, assistance to be provided to
such agency under this section for such fiscal year shall
commence not later than the 1st month of such fiscal year, and
shall be paid in accordance with such payment schedule as may
be agreed upon by the Secretary and such agency.
[general provisions
[Sec. 10. (a) In the performance of, and with respect to, the
functions, powers, and duties vested in him by this Act, the
Secretary, notwithstanding the provisions of any other law,
shall--
[(1) prepare annually and submit a budget program as
provided for wholly owned Government corporations by
chapter 91 of title 31, United States Code; and
[(2) maintain an integral set of accounts which may
be audited by the General Accounting Office as provided
by chapter 91 of title 31, United States Code.
[(b) All receipts and assets of the Secretary under this Act
shall be available for the purposes of this Act until expended.
[(c) The Federal Reserve banks are authorized and directed to
act as depositories, custodians, and fiscal agents for the
Secretary in the general exercise of his powers under this Act,
and the Secretary may reimburse any such bank for its services
in such manner as may be agreed upon.
[financing lower income housing projects
[Sec. 11. (a) Obligations issued by a public housing agency
in connection with low-income housing projects which (1) are
secured (A) by a pledge of a loan under any agreement between
such public housing agency and the Secretary, or (B) by a
pledge of annual contributions under an annual contributions
contract between such public housing agency and the Secretary,
or (C) by a pledge of both annual contributions under an annual
contributions contract and a loan under an agreement between
such public housing agency and the Secretary, and (2) bear, or
are accompanied by, a certificate of the Secretary that such
obligations are so secured, shall be incontestable in the hands
of a bearer and the full faith and credit of the United States
is pledged to the payment of all amounts agreed to be paid by
the Secretary as security for such obligations.
[(b) Except as provided in section 5(g), obligations,
including interest thereon, issued by public housing agencies
in connection with low-income housing projects shall be exempt
from all taxation now or hereafter imposed by the United States
whether paid by such agencies or by the Secretary. The income
derived by such agencies from such projects shall be exempt
from all taxation now or hereafter imposed by the United
States.
[labor standards
[Sec. 12. (a) Any contract for loans, contributions, sale, or
lease pursuant to this Act shall contain a provision requiring
that not less than the wages prevailing in the locality, as
determined or adopted (subsequent to a determination under
applicable State or local law) by the Secretary, shall be paid
to all architects, technical engineers, draftsmen, and
technicians employed in the development,and all maintenance
laborers and mechanics employed in the operation, of the low-income
housing project involved; and shall also contain a provision that not
less than the wages prevailing in the locality, as predetermined by the
Secretary of Labor pursuant to the Davis-Bacon Act (49 Stat. 1011),
shall be paid to all laborers and mechanics employed in the development
of the project involved (including a project with nine or more units
assisted under section 8 of this Act, where the public housing agency
or the Secretary and the builder or sponsor enter into an agreement for
such use before construction or rehabilitation is commenced), and the
Secretary shall require certification as to compliance with the
provisions of this section prior to making any payment under such
contract.
[(b) Subsection (a) and the provisions relating to wages
(pursuant to subsection (a)) in any contract for loans, annual
contributions, sale, or lease pursuant to this Act, shall not
apply to any individual that--
[(1) performs services for which the individual
volunteered;
[(2)(A) does not receive compensation for such
services; or
[(B) is paid expenses, reasonable benefits, or a
nominal fee for such services; and
[(3) is not otherwise employed at any time in the
construction work.
[energy conservation
[Sec. 13. The Secretary shall, to the maximum extent
practicable, require that newly constructed and substantially
rehabilitated projects assisted under this Act with authority
provided on or after October 1, 1979, shall be equipped with
heating and cooling systems selected on the basis of criteria
which include a life-cycle cost analysis of such systems.
[public and indian housing modernization
[Sec. 14. (a) It is the purpose of this section to provide
assistance--
[(1) to improve the physical condition of existing
public housing projects; and
[(2) to upgrade the management and operation of such
projects;
in order to assure that such projects continue to be available
to serve low-income families.
[(b)(1) The Secretary may make available and contract to make
available financial assistance (in such amounts as are
authorized pursuant to section 5(c) and as may be approved in
appropriations Acts) to public housing agencies for the purpose
of improving the physical condition of existing low-rent public
housing projects and for upgrading the management and operation
of such projects to the extent necessary to maintain such
physical improvements.
[(2) The Secretary may make contributions (in the form of
grants) to public housing agencies under this section. The
contract under which the contributions shall be made shall
specify that the terms and conditions of the contract shall
remain in effect for a 20-year period for any project receiving
the benefit of a grant under the contract.
[(c) Assistance under subsection (b) may be made available
only for buildings of low-rent housing projects--
[(1) which projects are owned by public housing
agencies;
[(2) which projects are operated as rental housing
projects and assisted under section 5 or section 9 of
this Act;
[(3) which projects are not assisted under section 8
of this Act;
[(4) which buildings are not assisted under section
5(j)(2); and
[(5) which projects meet such other requirements
consistent with the purposes of this section as the
Secretary may prescribe.
[(d) Except as provided in subsection (f)(4), no assistance
may be made available under subsection (b) to a public housing
agency that owns or operates less than 250 public housing
dwelling units unless the Secretary has approved an application
from the public housing agency which has been developed in
consultation with appropriate local officials and with tenants
of the housing projects for which assistance is requested. Such
application shall contain at least--
[(1) a comprehensive assessment of (A) the current
physical condition of each project for which assistance
is requested, and (B) the physical improvements
necessary for each such project to meet the standards
established by the Secretary pursuant to subsection
(j);
[(2) a comprehensive assessment of the improvements
needed to upgrade the management and operation of each
such project so that decent, safe, and sanitary living
conditions will be provided in such projects; such
assessment shall include at least an identification of
needs related to--
[(A) the management, financial, and
accounting control systems of the public
housing agency which are related to each
project eligible for assistance under this
section;
[(B) the adequacy and qualifications of
personnel employed by such public housing
agency (in the management and operation of such
projects) for each category of employment; and
[(C) the adequacy and efficacy of--
[(i) tenant programs and services in
such projects;
[(ii) the security of each such
project and its tenants;
[(iii) policies and procedures of the
public housing agency for the selection
and eviction of tenants in such
projects; and
[(iv) other policies and procedures
of such agency relating to such
projects, as specified by the
Secretary; and
[(3) a plan for making the improvements and for
meeting the needs, described in paragraphs (1) and (2);
such plan shall include at least--
[(A) a schedule of those actions which are to
be completed, over a period of not greater than
5 years from thedate of approval of such
application by the Secretary, within each 12-month period covered by
such plan and which are necessary--
[(i) to make the improvements,
described in paragraph (1)(B), for each
project for which assistance is
requested, and
[(ii) to upgrade the management and
operation of such projects as described
in paragraph (3); and
[(B) the estimated cost of each of the
actions described in subparagraph (A).
[(e)(1) No financial assistance may be made available under
this section to a public housing agency that owns or operates
250 or more public housing dwelling units unless the Secretary
approves (or has approved before the effective date of this
subsection) a 5-year comprehensive plan submitted by the public
housing agency, except that the Secretary may provide such
assistance if it is necessary to correct conditions that
constitute an immediate threat to the health or safety of
tenants. The comprehensive plan shall contain--
[(A) a comprehensive assessment of--
[(i) the current physical condition of each
public housing project owned or operated by the
public housing agency;
[(ii) the physical improvements necessary for
each such project to permit the project--
[(I) to be rehabilitated to a level
at least equal to the modernization
standards specified in the
Modernization Handbook of the
Department of Housing and Urban
Development in effect on the date of
the enactment of the Housing and
Community Development Act of 1987, as
well as the modernization standards
established by the Secretary and in
effect at the time of the preparation
of the comprehensive plan; and
[(II) to comply with life-cycle cost-
effective energy conservation
performance standards established by
the Secretary to reduce operating costs
over the estimated life of the
building; and
[(iii) the replacement needs of equipment
systems and structural elements that will be
required to be met (assuming routine and timely
maintenance is performed) during the 5-year
period covered by the comprehensive plan;
[(B) a comprehensive assessment of the improvements
needed to upgrade the management and operation of the
public housing agency and of each such project so that
decent, safe, and sanitary living conditions will be
provided such projects, which assessment shall include
at least an identification of needs related to--
[(i) the management, financial, and
accounting control systems of the public
housing agency that are related to such
projects;
[(ii) the adequacy and qualifications of
personnel appropriate to be employed by the
public housing agency (in the management and
operation of such projects) for each
significant category of employment; and
[(iii) the improvement of the efficacy of--
[(I) tenant programs and services in
such projects;
[(II) the security of each such
project and its tenants;
[(III) policies and procedures of the
public housing agency for the selection
and eviction of tenants in such
projects; and
[(IV) other policies and procedures
of the public housing agency relating
to such projects, as specified by the
Secretary;
[(C) an analysis, made on a project-by-project basis
in accordance with standards and criteria prescribed by
the Secretary, demonstrating that completion of the
improvements and replacements identified under
subparagraphs (A) and (B) will reasonably ensure the
long-term physical and social viability of each such
project at a reasonable cost;
[(D) an action plan for making the improvements and
replacements identified under subparagraphs (A) and (B)
that are determined under the analysis described in
subparagraph (C) to reasonably ensure long-term
viability of each such project at a reasonable cost,
which action plan shall include at least a schedule, in
order of priority established by the public housing
agency, of the actions that are to be completed over a
period of 5 years from the date of approval of the
comprehensive plan by the Secretary (or any longer
period reasonably needed to make the improvements and
replacements, considering the scope of the improvements
and replacements and the amount of funding provided)
and that are necessary--
[(i) to make the improvements and
replacements identified under subparagraph (A)
for each project expected to receive capital
improvements or replacements (with priority to
improvements and replacements required to
correct any life threatening condition); and
[(ii) to upgrade the management and operation
of the public housing agency and its public
housing projects as described in subparagraph
(B);
[(E) a statement, to be signed by the chief local
government official (or Indian tribal official, if
appropriate), certifying that--
[(i) the comprehensive plan was developed by
the public housing agency in consultation with
appropriate local government officials (or
Indian tribal officials) and with tenants of
the housing projects (or tenants of the Indian
housing projects) eligible for assistance under
this section, which shall include at least one
public hearing that shall be held prior to the
initial adoption of any plan by the public
housing agency for use of such assistance, and
afford tenants and interested parties an
opportunity to summarize their priorities and
concerns, to ensure their due consideration in
the planning process of the public housing
agency; and
[(ii) the comprehensive plan is consistent
with the assessment of the community of its
low-income housing needs and that the unit of
general local government (or Indian tribe) will
cooperate in the provision of tenant programs
and services (as defined in section 3(c)(2));
[(F) a statement, to be signed by the chief public
housing official, certifying that the public housing
agency will carry out the comprehensive plan in
conformity with title VI of the Civil Rights Act of
1964, title VIII of the Act of April 11, 1968 (commonly
known as the Civil Rights Act of 1968), and section 504
of the Rehabilitation Act of 1973;
[(G) a preliminary estimate of the total cost of the
items identified in subparagraphs (A) and (B),
including a preliminary estimate of the funds that will
be required during each year covered by the
comprehensive plan to accomplish the work pursuant to
the action plan; and
[(H) such other information as the Secretary may
require.
[(2)(A) The Secretary shall approve a comprehensive plan
unless--
[(i) the comprehensive plan is incomplete in
significant matters;
[(ii) on the basis of available significant facts and
data pertaining to the physical and operational
condition of the public housing projects of the public
housing agency or the management and operations of the
public housing agency, the Secretary determines that
the identification by the public housing agency of
needs is plainly inconsistent with such facts and data;
[(iii) on the basis of the comprehensive plan, the
Secretary determines that the action plan described in
paragraph (1)(D) is plainly inappropriate to meeting
the needs identified in the comprehensive plan, or that
the public housing agency has failed to demonstrate
that completion of improvements and replacements
identified under subparagraphs (A) and (B) of paragraph
(1) will reasonably ensure long-term viability of one
or more public housing projects to which they relate at
a reasonable cost; or
[(iv) there is evidence available to the Secretary
that tends to challenge in a substantial manner any
certification contained in the comprehensive plan.
[(B) The comprehensive plan shall be considered to be
approved, unless the Secretary notifies the public housing
agency in writing within 75 calendar days of submission that
the Secretary has disapproved the comprehensive plan as
submitted, indicating the reasons for disapproval and
modifications required to make the comprehensive plan
approvable.
[(3)(A) Each public housing agency that owns or operates 250
or more public housing dwelling units shall, after being
advised by the Secretary of the estimated assistance it will
receive under this section in any fiscal year, submit to the
Secretary, at a date determined by the Secretary, an annual
statement of the activities and expenditures projected to be
undertaken, in whole or in part, by such assistance during the
12-month period immediately following the execution of the
contract for such assistance. As long as the activities and
expenditures are consistent with the approved plan, the public
housing agency shall have total discretion in expending
assistance for any activity or work set forth in the plan. The
annual statement shall include a certification by the public
housing agency that the proposed activities and expenditures
are consistent with the approved comprehensive plan of the
public housing agency. The annual statement also shall include
a certification that the public housing agency has provided the
tenants of the public housing affected by the planned
activities the opportunity to review the annual statement and
comment on it, and that such comments have been taken into
account in formulating the annual statement as submitted to the
Secretary.
[(B) A public housing agency may propose an amendment to its
comprehensive plan under paragraph (1) in any annual statement.
Any such proposed amendment shall be reviewed in accordance
with paragraph (2), and shall include a certification that (i)
the proposed amendment has been made publicly available for
comment prior to its submission; (ii) affected tenants have
been given sufficient time to review and comment on it; and
(iii) such comments have been taken into consideration in the
preparation and submission of the amendment. A public housing
agency shall have a right to amend its comprehensive plan and
related statements to extend the time for performance whenever
the Secretary has not provided the amount of assistance set
forth in the plan or has not provided the assistance in a
timely manner.
[(C) The Secretary shall approve the annual statement and any
amendment to it or the comprehensive plan unless the Secretary
determines that the statement or amendment is plainly
inconsistent with the activities specified in the comprehensive
plan. The statement or amendment shall be considered to be
approved, unless the Secretary notifies the public housing
agency in writing before the expiration of the 75-day period
following its submission that the Secretary has disapproved it
as submitted, indicating the reasons for disapproval and the
modifications required to make it approvable.
[(4)(A) Each public housing agency that owns or operates 250
or more public housing dwelling units shall submit to the
Secretary, on a date determined by the Secretary, a performance
and evaluation report concerning the use of funds made
available under this section. The report of the public housing
agency shall include an assessment by the public housing agency
of the relationship of such use of funds made available under
this section, as well as the use of other funds, to the needs
identified in the comprehensive plan of the public housing
agency and to the purposes of this section. The public housing
agency shall certify that the report has been made available
for review and comment by affected tenants prior to its
submission to the Secretary.
[(B) The Secretary shall, at least on an annual basis, make
such reviews as may be necessary or appropriate to determine
whether each public housing agency receiving assistance under
this section--
[(i) has carried out its activities under this
section in a timely manner and in accordance with its
comprehensive plan;
[(ii) has a continuing capacity to carry out its
comprehensive plan in a timely manner;
[(iii) has satisfied, or has made reasonable progress
towards satisfying, such performance standards as shall
be prescribed by the Secretary, and has made reasonable
progress in carrying out modernization projects
approved under this section.
[(C) Each public housing agency that owns or operates 250 or
more public housing dwelling units and receives assistance
under this section shall have an audit made in accordance with
chapter 75 of title 31, United States Code. The Secretary, the
Inspector General of the Department of Housing and Urban
Development, and the Comptroller General of the United States
shall have access to all books, documents, papers, or other
records that are pertinent to the activities carried out under
this section in order to make audit examinations, excerpts, and
transcripts.
[(D) The comprehensive plan, any amendments to the
comprehensive plan, and the annual statement shall, once
approved by the Secretary, be binding upon the Secretary and
the public housing agency. The Secretary may order corrective
action only if the public housing agency does not comply with
subparagraph (A) or (B) or if an audit under subparagraph (C)
reveals findings that the Secretary reasonably believes require
such corrective action. The Secretary may withhold funds under
this section only if the public housing agency fails to take
such corrective action after notice and a reasonable
opportunity to do so. In administering this section, the
Secretary shall, to the greatest extent possible, respect the
professional judgment of the administrators of the public
housing agency.
[(f)(1) The amount of financial assistance made available
under subsection (b) to any public housing agency that owns or
operates less than 250 public housing dwelling units with
respect to any year may not exceed the sum of--
[(A) an amount determined by the Secretary to be
necessary to undertake the actions specified for such
year in the schedule submitted pursuant to subsection
(d)(3)(A);
[(B) the amount determined necessary by the Secretary
to reimburse the public housing agency for the cost of
developing the plan described pursuant to subsection
(d)(3), less any amount which has been provided such
public housing agency with respect to such year under
paragraph (4); and
[(C) in the case of a public housing agency which
meets such criteria of financial distress as are
established by the Secretary and which has submitted
the information described in paragraphs (1) and (2) of
subsection (d), the amount determined necessary by the
Secretary to enable such agency to develop the plan
described pursuant to subsection (d)(3);
except that not more than 5 per centum of the total amount
utilized for contributions contracts under subsection (b) in
any year shall be made available for the purposes described in
paragraphs (3) and (4).
[(2) A public housing agency that owns or operates 250 or
more public housing dwelling units may use financial assistance
received under subsection (b) only--
[(A) to undertake activities described in its
approved comprehensive plan under subsection (e)(1) or
its annual statement under subsection (e)(3);
[(B) to correct conditions that constitute an
immediate threat to the health or safety of tenants,
whether or not the need for such correction is
indicated in its comprehensive plan or annual
statement; and
[(C) to prepare a comprehensive plan under subsection
(e)(1), including reasonable costs that may be
necessary to assist tenants in participating in the
planning process in a meaningful way, an annual
statement under subsection (e)(3), an annual
performance and evaluation report under subsection
(e)(4)(A), and an audit under subsection (e)(4)(C).
[(g) No assistance shall be made available to a public
housing agency pursuant to subsection (b) for any year
subsequent to the first year for which such assistance is made
available to such agency unless the Secretary has determined
that such agency has made substantial efforts to meet the
objectives for the preceding year under the plan described in
subsection (d)(3) or (e) and approved by the Secretary.
[(h) In making assistance available under subsection (b) to a
public housing agency that owns or operates fewer than 250
public housing dwelling units, the Secretary shall give
preference to public housing agencies--
[(1) which request assistance for projects (A) having
conditions which threaten the health or safety of the
tenants, or (B) having a significant number of vacant,
substandard units; and
[(2) which have demonstrated a capability of carrying
out the activities proposed in the plan submitted by
the agency pursuant to subsection (d)(3) and approved
by the Secretary.
[(i)(1) In addition to assistance made available under
subsection (b) to a public housing agency that owns or operates
fewer than 250 public housing dwelling units, the Secretary
may, without regard to the requirements of subsection (c), (d),
(f), (g), or (h), make available and contract to make available
financial assistance (in such amounts as are authorized
pursuant to section 5(c) and as approved in appropriation Acts)
to any public housing agency in an amount which the Secretary
determines is necessary to meet emergency or special purpose
needs, especially emergency and special purpose needs which
relate to fire safety standards. Such needs shall be limited
to--
[(A) correcting conditions which threaten the health
or safety of the tenants of any project (i) which is
described in subsection (c), and (ii) with respect to
which an application for assistance pursuant to
subsection (d) has not been approved by the Secretary;
[(B) correcting conditions (i) which threaten the
health or safety of the tenants of any project with
respect to which an application for assistance pursuant
to subsection (d) has been approved, and (ii) which
were unanticipated at the time of the development of
such application;
[(C) correcting conditions which threaten the health
or safety of the occupants of any low-income housing
project not described in subsection (c) and not
assisted pursuant to section 8;
[(D)(i) physical improvements needs which (I) would
not otherwise be eligible for assistance under this
section, and (II) pertain to any low-income housing
project other than a project assisted under section 8;
and
[(ii) physical improvement needs eligible under this
subparagraph shall include replacing or repairing major
equipment systems or structural elements, upgrading
security, increasing accessibility for elderly and
disabled families (as such terms are defined in section
3(b)(3)), reducing the number of vacant substandard
units, and increasing the energy efficiency of the
units, except that the Secretary may make financial
assistance available under this clause only if the
Secretary determines that the physical improvements are
necessary and sufficient to extend substantially the
useful life of the project; or
[(E) management improvement needs which (i) would not
otherwise be eligible for assistance under this
section, and (ii) pertain to any low-income housing
project other than a project assisted under section 8.
[(2) The Secretary may issue such rules and regulations as
may be necessary to carry out this subsection.
[(j)(1) The Secretary may issue such rules and regulations as
may be necessary to carry out the provisions and purposes of
this section.
[(2) The Secretary shall issue rules and regulations
establishing standards which provide for decent, safe, and
sanitary living conditions in low-rent public housing projects
and for energy conserving improvements in such projects and
which, to the extent practicable, are consistent with the
Minimum Property Standards for Multi-Family Housing as they
reasonably would be applied to existing housing, except that
the Secretary may establish higher standards on a project-by-
project basis in such cases where the Secretary deems such
higher standards appropriate for furthering the purposes of
this section.
[(k)(1) From amounts approved in appropriation Acts for
grants under this section for fiscal year 1992 and each fiscal
year thereafter, and to the extent provided by such Acts, the
Secretary shall reserve not more than $75,000,000 (including
unused amounts reserved during previous fiscal years), which
shall be available for modernization needs resulting from
natural and other disasters and from emergencies. Amounts
provided for emergencies shall be repaid by public housing
agencies from future allocations of assistance under paragraph
(2), where available.
[(2)(A) After determining the amounts to be reserved under
paragraphs (1) and (5)(D)(iv), the Secretary shall allocate the
amount remaining pursuant to a formula contained in a
regulation prescribed by the Secretary, which shall be designed
to measure the relative needs of public housing agencies. The
formula shall take into account amounts previously made
available by the Secretary for modernization under this section
and for major reconstruction of obsolete projects, to the
extent determined appropriate by the Secretary.
[(B) The Secretary shall allocate half of the amount
allocated under this paragraph based on the relative backlog
needs of public housing agencies, determined--
[(i) for individual public housing agencies with 250
or more units and for the aggregate of agencies with
fewer than 250 units, where the data are statistically
reliable, on the basis of the most recently available,
statistically reliable data regarding the (I) backlog
of needed repairs and replacements of existing physical
systems in public housing projects, (II) items that
must be added to projects to meet the modernization
standards of the Secretary (referred to in subsection
(e)(1)(A)(ii)(I)) and State and local codes, and (III)
items that are necessary or highly desirable for the
long-term viability of a project; or
[(ii) for individual public housing agencies with 250
or more units, where such data are not statistically
reliable, on the basis of estimates of the categories
of backlog specified in clause (i) using the most
recently available data on the backlog, and objectively
measurable data on public housing agency, community,
and project characteristics regarding--
[(I) the average number of bedrooms in the
units in a project;
[(II) the proportion of units in a project
available for occupancy by very large families;
[(III) the extent to which units for families
are in high-rise elevator projects;
[(IV) the age of the projects;
[(V) in the case of a large agency, as
determined by the Secretary, the number of
units with 2 or more bedrooms;
[(VI) the cost of rehabilitating property in
the area;
[(VII) for family projects, the extent of
population decline in the unit of general local
government determined on the basis of the 1970
and 1980 censuses; and
[(VIII) any other factors the Secretary
determines are appropriate.
The Secretary may not establish or amend any criteria
regarding the backlog needs of public housing agencies
under this subparagraph, except by rule as provided
under section 553 of title 5, United States Code.
[(C) The Secretary shall allocate the other half of the
amount allocated under this paragraph based on the relative
accrued needs of public housing agencies for the categories of
need specified in subparagraphs (B)(i) (I) and (II),
determined--
[(i) for individual public housing agencies with 250
or more units and for the aggregate of agencies with
fewer than 250 units, where the data are statistically
reliable, on the basis of the needs that are estimated
to have accrued since the date of the last objective
measurement of backlog needs under subparagraph (B); or
[(ii) for individual public housing agencies with 250
or more units, where the estimates under clause (i) are
not statistically reliable, on the basis of estimates
of accrued need using the most recently available data
on the backlog, and objectively measurable data on
public housing agency, community, and project
characteristics regarding--
[(I) the average number of bedrooms of the
units in a project;
[(II) the proportion of units in a project
available for occupancy by very large families;
[(III) the age of the projects;
[(IV) the extent to which the buildings in
projects of an agency average fewer than 5
units;
[(V) the cost of rehabilitating property in
the area;
[(VI) the total number of units of each
agency that owns or operates 250 or more units;
and
[(VII) any other factors the Secretary
determines are appropriate.
The Secretary may not establish or amend any criteria
regarding the accrual needs of public housing agencies
under this subparagraph, except by rule as provided
under section 553 of title 5, United States Code.
[(D)(i) In determining how many units an agency owns or
operates and the relative modernization needs of agencies, the
Secretary shall, except as otherwise agreed by the Secretary
and the agency, count each existing unit under the annual
contributions contract, except that an existing unit under the
turnkey III and the mutual help programs may be counted as less
than one unit, to take into account the responsibility of
families for the costs of certain maintenance and repair. For
purposes of this section, an agency that qualifies to receive a
formula grant under paragraph (4) may elect to continue to
qualify to receive a formula grant if it owns or operates at
least 200 public housing units.
[(ii) Where an existing unit under a contract is demolished
or disposed of, the Secretary shall not adjust the amount the
agency receives under the formula unless more than one percent
of the units are affected on a cumulative basis. Where more
than one percent of the units are demolished or disposed of,
the Secretary shall reduce the formula amount for the agency
over a 3-year period to reflect removal of the units from the
contract.
[(iii) The Secretary shall determine whether the data under
subparagraphs (B) and (C) are statistically reliable.
[(3) The amount determined under the formula for agencies
with fewer than 250 units shall be allocated in accordance with
subsection (d).
[(4) The amount determined under the formula for each agency
that owns or operates 250 or more units shall be allocated to
each qualifying agency in accordance with subsection (e).
[(5)(A) With respect to any agency that is designated as a
troubled agency with respect to the program under this section
upon the initial designation of such troubled agencies under
section 6(j)(2)(A)(i), the Secretary shall limit the total
amount of funding under this section for the agency for fiscal
year 1992 and any fiscal year thereafter, if the agency remains
designated as a troubled agency, to the sum of--
[(i) the average of the amount that the troubled
agency received for modernization activities under this
section and for major reconstruction of obsolete
projects for each of fiscal years1989, 1990, and 1991,
which average shall be adjusted to take into account changes in the
cost of rehabilitating property; plus
[(ii) 25 percent of the difference between the amount
determined under clause (i) and the amount that would
be allocated to the agency in such fiscal year if the
agency were not designated as a troubled agency.
[(B) In any fiscal year the Secretary may, pursuant to the
request of a troubled agency, increase the amount allocated to
the agency under subparagraph (A) to an amount not exceeding
the amount that would be allocated to the agency in such fiscal
year if the agency were not a troubled agency. An increase
under this subparagraph shall be based on the agency's progress
toward meeting the performance indicators under section
6(j)(1). The Secretary shall render a decision in writing on
each such request not later than 75 days after receipt of the
request and any necessary supporting documentation.
[(C) For any fiscal year, any amounts that would have been
allocated to an agency under the formula under paragraph (2)
that are not allocated to the agency because the agency
receives the amount provided under subparagraph (A) of this
paragraph, shall be allocated in such year pursuant to the
formula to other agencies with 500 or more units.
[(D) The Secretary shall carry out a credit system under this
subparagraph to provide agencies that receive allocations under
subparagraph (A) with additional assistance under this section
after the agency is determined not to be a troubled agency, to
compensate for amounts not received because of the
troubled agency designation. The credit system shall be
subject to the following requirements:
[(i) Any agency that receives assistance pursuant to
subparagraph (A) for any fiscal year shall receive
credits for the difference between the amount that the
agency would have been allocated in such year if it
were not designated a troubled agency and the amount
allocated for the agency for such year under
subparagraph (A).
[(ii) An agency may not receive credits under this
subparagraph for more than 3 consecutive fiscal years.
[(iii) After a 3-year period during which an agency
has accrued credits, the credits accrued by the agency
shall be--
[(I) decreased by 10 percent of the total
credits accumulated if the designation as a
troubled agency is not removed before the
conclusion of the first fiscal year after
such 3-year period of accrual of credits;
[(II) decreased by an additional 20 percent
of the original total accumulated credits if
the designation as a troubled agency is not
removed before the conclusion of the second
fiscal year after such 3-year accrual period;
[(III) decreased by an additional 30 percent
of the original total accumulated credits if
the designation as a troubled agency is not
removed before the conclusion of the third
fiscal year after such 3-year accrual period;
and
[(IV) eliminated if the designation as a
troubled agency is not removed before the
conclusion of the fourth fiscal year after such
3-year accrual period.
[(iv) After a determination by the Secretary that an
agency is not a troubled agency, the Secretary shall
provide the agency with amounts made available under
this clause in accordance with the amount of credits
accumulated by the agency (subject to the reductions
under clause (iii)). Such amounts shall be provided in
addition to the amounts allocated to the agency
pursuant to the formula under paragraph (2). In each
fiscal year, the Secretary shall reserve from amounts
available for allocation under paragraph (2)(A) the
amount necessary to provide assistance pursuant to such
credits, except that the reserved amount may not exceed
5 percent of the total amount available for allocation
under such paragraph.
[(v) In making payments for accrued credits in
accordance with clause (iv), the Secretary may take
into account the ability of the agency to expeditiously
expend amounts received for credits.
[(E) The Secretary shall, by regulation, establish
special rules for limiting the amount of assistance provided
under this section to agencies that become troubled after the
date of the initial designation of troubled agencies under
section 6(j)(2)(A)(i). The rules may provide for a credit
system based on the system established under this paragraph.
[(6) Any amounts (A) allocated under paragraph (4) that
become available for reallocation because an agency does not
qualify to receive all or a part of its formula allocation due
to failure to comply with the requirements of this section
(other than because of designation as a troubled agency), and
(B) recaptured by the Secretary for good cause, shall (subject
to approval in appropriations Acts) be reallocated by the
Secretary in the next fiscal year to other housing agencies
that own or operate 250 or more units, based on their relative
needs. The relative needs of agencies shall be measured by the
formula established pursuant to paragraph (2)(A).
[(7) A public housing agency may appeal the amount of its
allocation determined under the formula on the basis of unique
circumstances or on the basis that the objectively measurable
data regarding the agency, community, and project
characteristics used for determining the formula amount were
not correct.
[(8) Amounts allocated to a public housing agency under
paragraph (3) or (4) may be used for any eligible activity in
accordance with this section, notwithstanding that the
allocation amount is determined by allocating half based on
relative backlog needs and half based on relative accrued needs
of agencies.
[(l) The Secretary shall include in the annual report under
section 8 of the Department of Housing and Urban Development
Act--
[(1) a description of the allocation, distribution,
and use of assistance under this section on a regional
basis and on the basis of public housing agency size;
and
[(2) a national compilation of the total funds
requested in comprehensive plans for all public housing
agencies owning or operating 250 or more public housing
dwelling units.
[(m) Subject to subsection (k)(1), the Secretary may issue
any regulations that are necessary to carry out this section.
[(n) Limitation.--The Secretary shall not make assistance
under this section available with respect to a property
transferred under title III.
[(o) Any amount that the Secretary has obligated to a public
housing agency under this section other than pursuant to the
program established under subsection (e), shall be used for the
purposes for which such amount was provided, or for purposes
consistent with an action plan submitted by the agency under
subsection (e) and approved by the Secretary, as the agency
determines to be appropriate.
[(p)(1) The Secretary shall require any public housing agency
that has a vacancy rate among dwelling units owned or operated
by the agency that exceeds twice the average vacancy rate among
all agencies, that is designated as a troubled agency under
section 6(j), or for which a receiver has been appointed
pursuant to section 6(j)(3), to participate in the vacancy
reduction program under this subsection.
[(2) Each public housing agency participating in the program
under this subsection shall develop and submit to the Secretary
a vacancy reduction plan regarding vacancies in units
owned or operated by the agency. The plan shall include
statements (A) identifying vacant dwelling units administered
by the agency and explaining the reasons for the vacancies, (B)
describing the actions to be taken by the agency during the
following 5 years to eliminate the vacancies, (C) identifying
any impediments that will prevent elimination of the vacancies
within the 5-year period, (D) identifying any vacant units
subject to comprehensive modernization, major reconstruction,
demolition, and disposition activities that have been funded or
approved, (E) identifying any vacant dwelling units that are
eligible for comprehensive modernization, major reconstruction,
demolition, or disposition but have not been funded or approved
for such activities and are not likely to be funded or approved
for at least 3 years and estimating the amount of assistance
necessary to complete the comprehensive modernization, major
reconstruction, demolition, or disposition of such units, (F)
identifying any vacant units not identified under subparagraphs
(E) and (F) and describing any appropriate activities relating
to elimination of the vacancies in such units and estimating
the amount of assistance necessary to carry out the activities,
and (G) setting forth an agenda for implementation of
management improvements (including, as appropriate,
improvements recommended by the assessment team pursuant to
paragraph (3)(C)) during the first fiscal year beginning after
submission of the plan and including an estimate of the amount
of assistance necessary to implement the improvements.
[(3)(A) Upon the expiration of the 24-month period beginning
upon the receipt of assistance under paragraph (5) by a public
housing agency, the Secretary shall, after reviewing the
progress made in complying with the plan, reserve from the
annual contribution attributable to each unit vacant for the
24-month period an amount determined by the Secretary but not
exceeding 80 percent of such contribution. The Secretary may
not reserve any amounts under this subparagraph for any vacant
dwelling unit that is vacant because of modernization,
reconstruction, or lead-based paint reduction activities.
[(B) The Secretary shall deposit any amounts reserved under
subparagraph (A) in a separate account established on behalf of
the public housing agency, and such amounts shall be available
to the agency only for the purpose of carrying out activities
in compliance with the vacancy reduction plan of the agency.
[(C) If, after the expiration of the 24-month period
beginning upon the reservation under subparagraph (A) of
amounts for a public housing agency, the Secretary determines
that the agency has not made significant progress to comply
with the provisions of the vacancy reduction plan of the
agency, the amount remaining in the account for the agency
established under subparagraph (B) shall be recaptured by the
Secretary.
[(4)(A) In cooperation with each agency participating in the
program under this subsection, the Secretary shall provide for
onsite assessment of the vacancy situation of the agency by a
team of knowledgeable observers. The assessment team shall
include representatives of the Department of Housing and Urban
Development, an equal number of independent experts
knowledgeable with respect to vacancy problems and management
issues relating to public housing, and officials of the public
housing agency, all of whom shall be selected by the Secretary.
The assessment team shall assess the vacancy situation of the
agency to determine the causes of the vacancies, including any
management deficiencies or modernization activities.
[(B) The assessment team shall also examine indicators of the
management performance of the agency relating to vacancy, which
shall include consideration of the performance of the agency as
measured by the indicators under subparagraphs (A) and (E) of
section 6(j)(1).
[(C) The assessment team shall submit to the agency and the
Secretary written recommendations for management improvements
to eliminate or alleviate management deficiencies, and may
assist the agency in preparing the vacancy reduction plan under
paragraph (2), including determining appropriate actions to
eliminate vacancies.
[(D) The Secretary may use amounts made available under
paragraph (6) for any travel and administrative expenses of
assessment teams under this paragraph.
[(5) The Secretary shall, subject to the availability of
amounts under paragraph (6), provide assistance under this
subsection to public housing agencies submitting vacancy
reduction plans for reasonable costs of--
[(A) implementing management improvements;
[(B) rehabilitating vacant dwelling units identified
in the statement under paragraph (2), except that the
Secretary may provide assistance to a public housing
agency designated as a troubled agency for the purposes
under this subparagraph only if the Secretary
determines that the agency is making substantial
progress in remedying management deficiencies, if any,
or that the agency has provided reasonable assurances
that such progress will be made; and
[(C) carrying out vacancy reduction activities
described in the statement under paragraph (2).
[(6)(A) Of any amounts available under this section in each
of fiscal years 1993 and 1994 (after amounts are reserved
pursuant to subsection (k)(1)), an amount equal to 4 percent of
such remaining funds shall be available in each such fiscal
year for the purposes under subparagraph (B).
[(B) Of such amounts available under subparagraph (A) in each
such fiscal year--
[(i) 20 percent shall be available only for carrying
out activities under section 6(j); and
[(ii) 80 percent shall be available for carrying out
this subsection.
[(q)(1) In addition to the purposes enumerated in subsections
(a) and (b), a public housing agency may use modernization
assistance provided under section 14, and development
assistance provided under section 5(a) that was not allocated,
as determined by the Secretary, for priority replacement
housing, for any eligible activity authorized by this section,
by section 5, or by applicable Appropriations Acts for a public
housing agency, including the demolition, rehabilitation,
revitalization, and replacement of existing units and projects
and, for up to 10 percent of its allocation of such funds in
any fiscal year, for any operating subsidy purpose authorized
in section 9. Except for assistance used for operating subsidy
purposes under the preceding sentence, assistance provided to a
public housing agency under this section shall principally be
used for the physical improvement, replacement of public
housing, other capital purposes, and for associated management
improvements, and such other extraordinary purposes as may be
approved by the Secretary. Low-income and very low-income units
assisted under this paragraph shall be eligible for operating
subsidies, unless the Secretary determines that such units or
projects do not meet other requirements of this Act.
[(2) A public housing agency may provide assistance to
developments that include units, other than units assisted
under this Act (except for units assisted under section 8
hereof) (``mixed income developments''), in the form of a
grant, loan, operating assistance, or other form of investment
which may be made to--
[(A) a partnership, a limited liability company, or
other legal entity in which the public housing agency
or its affiliate is a general partner, managing member,
or otherwise participates in the activities of such
entity; or
[(B) any entity which grants to the public housing
agency the option to purchase the development within 20
years after initial occupancy in accordance with
section 42(i)(7) of the Internal Revenue Code of 1986,
as amended.
[Units shall be made available in such developments
for periods of not less than 20 years, by master
contract or by individual lease, for occupancy by low-
income and very low-income families referred from time
to time by the public housing agency. The number of
such units shall be:
[(i) in the same proportion to the total
number of units in such development that the
total financial commitment provided by the
public housing agency bears to the value of the
total financial commitment in the development,
or
[(ii) not be less than the number of units
that could have been developed under the
conventional public housing program with the
assistance involved, or
[(iii) as may otherwise be approved by the
Secretary.
[(3) A mixed income development may elect to have all units
subject only to the applicable local real estate taxes,
notwithstanding that the low-income units assisted by public
housing funds would otherwise be subject to section 6(d) of the
Housing Act of 1937.
[(4) If an entity that owns or operates a mixed-income
project under this subsection enters into a contract with a
public housing agency, the terms of which obligate the entity
to operate and maintain a specified number of units in the
project as public housing units in accordance with the
requirements of this Act for the period required by law, such
contractual terms may provide that, if, as a result of a
reduction in appropriations under section 9, or any other
change in applicable law, the public housing agency is unable
to fulfill its contractual obligations with respect to those
public housing units, that entity may deviate, under procedures
and requirements developed through regulations by the
Secretary, from otherwise applicable restrictions under this
Act regarding rents, income eligibility, and other areas of
public housing management with respect to a portion or all of
those public housing units, to the extent necessary to preserve
the viability of those units while maintaining the low-income
character of the units, to the maximum extent practicable.
[payment of nonfederal share
[Sec. 15. Any of the following may be used as the non-Federal
share required in connection with activities undertaken under
Federal grant-in-aid programs which provide social,
educational, employment, and other services to the tenants in a
project assisted under this Act, other than under section 8:
[(1) annual contributions under this Act for
operation of the project; or
[(2) rental or use-value of buildings or facilities
paid for, in whole or in part, from development,
modernization, or operation cost financed under this
Act.
[eligibility for assisted housing6
[Sec. 16. (a) Not more than 25 per centum of the dwelling
units which were available for occupancy under public housing
annual contributions contracts and section 8 housing assistance
payments contracts under this Act before the effective date of
the Housing and Community Development Amendments of 1981, and
which will be leased on or after such effective date shall be
available for leasing by low-income families other than very
low-income families.
[(b)(1) Not more than 15 percent of the dwelling units which
become available for occupancy under public housing
contributions contracts and section 8 housing assistance
payments contracts under this Act on or after the effective
date of the Housing andCommunity Development Amendments of 1981
shall be available for leasing by low-income families other than very
low-income families.
[(2) Not more than 25 percent of the dwelling units in any
project of any agency shall be available for occupancy by low-
income families other than very low-income families. The
limitation shall not apply in the case of any project in which,
before the date of the enactment of the Cranston-Gonzalez
National Affordable Housing Act, such low-income families
occupy more than 25 percent of the dwelling units.
[(c) In developing admission procedures implementing
subsection (b), the Secretary may not totally prohibit
admission of low-income families other than very low-income
families and shall establish an appropriate specific percentage
of low-income families other than very-low-income families that
may be assisted in each assisted housing program that, when
aggregated, will achieve the overall percentage limitation
contained in subsection (b). In developing such admission
procedures, the Secretary shall prohibit project owners from
selecting families for residence in an order different from the
order on the waiting list for the purpose of selecting
relatively higher income families for residence; except that
such prohibition shall not apply with respect to families
selected for occupancy in public housing under the written
system of preferences for selection established by the public
housing agency pursuant to section 6(c)(4)(A). The Secretary
shall issue regulations to carry out this subsection not later
than 60 days after the date of the enactment of the Housing and
Community Development Act of 1987.
[(d)(1) The limitations established in subsection (b) shall
not apply to dwelling units made available under section 8
housing assistance contracts for the purpose of preventing
displacement, or ameliorating the effects of displacement,
including displacement caused by rents exceeding 30 percent of
monthly adjusted family income, of low-income families from
projects being rehabilitated with assistance from
rehabilitation grants under section 17 and the Secretary shall
not otherwise unduly restrict the use of payments under section
8 housing assistance contracts for this purpose.
[(2) The limitations established in subsections (a) and (b)
shall not apply to dwelling units assisted by Indian public
housing agencies, to scattered site public housing dwelling
units sold or intended to be sold to public housing tenants
under section 5(h) of this title..
[(e) Ineligibility of Illegal Drug Users and Alcohol
Abusers.--
[(1) In general.--Notwithstanding any other provision
of law, a public housing agency shall establish
standards for occupancy in public housing dwelling
units and assistance under section 8--
[(A) that prohibit occupancy in any public
housing dwelling unit by, and assistance under
section 8 for, any person--
[(i) who the public housing agency
determines is illegally using a
controlled substance; or
[(ii) if the public housing agency
determines that it has reasonable cause
to believe that such person's illegal
use (or pattern of illegal use) of a
controlled substance, or abuse (or
pattern of abuse) of alcohol, may
interfere with the health, safety, or
right to peaceful enjoyment of the
premises by other residents of the
project; and
[(B) that allow the public housing agency to
terminate the tenancy in any public housing
unit of, and the assistance under section 8
for, any person--
[(i) who the public housing agency
determines is illegally using a
controlled substance; or
[(ii) whose illegal use of a
controlled substance, or whose abuse of
alcohol, is determined by the public
housing agency to interfere with the
health, safety, or right to peaceful
enjoyment of the premises by other
residents of the project.
[(2) Consideration of rehabilitation.--In determining
whether, pursuant to paragraph (1), to deny occupancy
or assistance to any person based on a pattern of use
of a controlled substance or a pattern of abuse of
alcohol, a public housing agency may consider whether
such person--
[(A) has successfully completed a supervised
drug or alcohol rehabilitation program (as
applicable) and is no longer engaging in the
illegal use of a controlled substance or abuse
of alcohol (as applicable);
[(B) has otherwise been rehabilitated
successfully and is no longer engaging in the
illegal use of a controlled substance or abuse
of alcohol (as applicable); or
[(C) is participating in a supervised drug or
alcohol rehabilitation program (as applicable)
and is no longer engaging in the illegal use of
a controlled substance or abuse of alcohol (as
applicable).
[(3) Inapplicability to indian housing.--This
subsection does not apply to any dwelling unit assisted
by an Indian housing authority.
[demolition and disposition of public housing
[Sec. 18. (a) The Secretary may not approve an application by
a public housing agency for permission, with or without
financial assistance under this Act, to demolish or dispose of
a public housing project or a portion of a public housing
project unless the Secretary has determined that--
[(1) in the case of an application proposing
demolition of a public housing project or a portion of
a public housing project, the project or portion of the
project is obsolete as to physical condition, location,
or other factors, making it unusable for housing
purposes, and no reasonable program of modifications is
feasible to return the project or portion of the
project to useful life; or in the case of an
application proposing the demolition of only a portion
of a project, the demolition will help to assure the
useful life of the remaining portion of the project;
[(2) in the case of an application proposing
disposition of real property of a public housing agency
by sale or other transfer--
[(A)(i) the property's retention is not in
the best interests of the tenants or the public
housing agency because developmental changes in
the area surrounding the project adversely
affect the health or safety of the tenants or
the feasible operation of the project by the
public housing agency, because disposition
allows the acquisition, development, or
rehabilitation of other properties which will
be more efficiently or effectively operated as
low-income housing projects and which will
preserve the total amount of low-income housing
stock available in the community, or because of
other factors which the Secretary determines
are consistent with the best interests of the
tenants and public housing agency and which are
not inconsistent with other provisions of this
Act; and
[(ii) for property other than dwelling units,
the property is excess to the needs of a
project or the disposition is incidental to, or
does not interfere with, continued operation of
a project; and
[(B) the net proceeds of the disposition will
be used for (i) the payment of development cost
for the project and for the retirement of
outstanding obligations issued to finance
original development or modernization of the
project, which, in the case of scattered-site
housing of a public housing agency, shall be in
an amount that bears the same ratio to the
total of such costs and obligations as the
number of units disposed of bears to the total
number of units of the project at the time of
disposition, and (ii) to the extent that any
proceeds remain after the application of
proceeds in accordance with clause (i), the
provision of housing assistance for low-income
families through such measures as modernization
of low-income housing, or the acquisition,
development, or rehabilitation of other
properties to operate as low-income housing; or
[(3) in the case of an application proposing
demolition or disposition of any portion of a public
housing project, assisted at any time under section
5(j)(2)--
[(A) such assistance has not been provided
for the portion of the project to be demolished
or disposed within the 10-year period ending
upon submission of the application; or
[(B) the property's retention is not in the
best interest of the tenants or the public
housing agency because of extraordinary changes
in the area surrounding the project or other
extraordinary circumstances of the project.
[(b) The Secretary may not approve an application or furnish
assistance under this section or under this Act unless--
[(1) the application from the public housing agency
has been developed in consultation with tenants and
tenant councils, if any, who will be affected by the
demolition or disposition, and the tenant councils,
resident management corporation, and tenant cooperative
of the project or portion of the project covered by the
application, if any, have been given appropriate
opportunities to purchase the project or portion of the
project covered by the application, and contains a
certification by appropriate local government officials
that the proposed activity is consistent with the
applicable housing assistance plan; and
[(2) all tenants to be displaced as a result of the
demolition or disposition will be given assistance by
the public housing agency and are relocated to other
decent, safe, sanitary, and affordable housing, which
is, to the maximum extent practicable, housing of their
choice, including housing assisted under section 8 of
this Act, and the public housing agency provides for
the payment of the relocation expenses of each tenant
to be displaced, ensures that the rent paid by the
tenant following relocation will not exceed the amount
permitted under this Act and shall not commence
demolition or disposition of any unit until the tenant
of the unit is relocated.
[(c) Notwithstanding any other provision of law, the
Secretary is authorized to make available financial assistance
for applications approved under this section using available
contributions authorized under section 5.
[(d) A public housing agency shall not take any action to
demolish or dispose of a public housing project or a portion of
a public housing project without obtaining the approval of the
Secretary and satisfying the conditions specified in
subsections (a) and (b): Provided, That nothing in this section
shall prevent a public housing agency from consolidating
occupancy within or among buildings of a public housing
project, or among projects, or with other housing for the
purpose of improving the living conditions of or providing more
efficient services to its tenants.
[(e)(1) In each of fiscal years 1993 and 1994, the Secretary
may reserve from any budget authority appropriated for such
year for assistance under section 8 that is available for
families not currently receiving such assistance not more than
10 percent of such budget authority for providing replacement
housing under subsection (b)(3)(A) for units demolished or
disposed of pursuant to this section.
[(2) In each of fiscal years 1993 and 1994, the Secretary may
reserve from any budget authority appropriated for such year
for development of public housing under section 5(a)(2) not
more than the lesser of 30 percent of such budget authorization
or $150,000,000, for providing replacement housing under
subsection (b)(3)(A) for units demolished or disposed of
pursuant to this section.
[(f) Notwithstanding any other provision of law, replacement
housing units for public housing units demolished may be built
on the original public housing site or in the same neighborhood
if the number of such replacement units is significantly fewer
than the number of units demolished. No one may rely on the
preceding sentence as the basis for reconsidering a final order
of a court issued, or a settlement approved, by a court.
[(g) The provisions of this section shall not apply to the
disposition of a public housing project in accordance with an
approved homeownership program under title III of this Act.
[financing limitations
[Sec. 19. On and after October 1, 1983, the Secretary--
[(1) may only enter into contracts for annual
contributions regarding obligations financing public
housing projects authorized by section 5(c) if such
obligations are exempt from taxation under section
11(b), or if such obligations are issued under section
4 and such obligations are exempt from taxation; and
[(2) may not enter into contracts for periodic
payments to the Federal Financing Bank to offset the
costs to the Bank of purchasing obligations (as
described in the first sentence of section 16(b) of the
Federal Financing Bank Act of 1973) issued by local
public housing agencies for purposes of financing
public housing projects authorized by section 5(c) of
this Act.
[public housing resident management
[Sec. 20. (a) Purpose.--The purpose of this section is to
encourage increased resident management of public housing
projects, as a means of improving existing living conditions in
public housing projects, by providing increased flexibility for
public housing projects that are managed by residents by--
[(1) permitting the retention, and use for certain
purposes, of any revenues exceeding operating and
project costs; and
[(2) providing funding, from amounts otherwise
available, for technical assistance to promote
formation and development of resident management
entities.
For purposes of this section, the term ``public housing
project'' includes one or more contiguous buildings or an area
of contiguous row houses the elected resident councils of which
approve the establishment of a resident management corporation
and otherwise meet the requirements of this section.
[(b) Program Requirements.--
[(1) Resident council.--As a condition of entering
into a resident management program, the elected
resident council of a public housing project shall
approve the establishment of a resident management
corporation. When such approval is made by the elected
resident council of a building or row house area, the
resident management program shall not interfere with
the rights of other families residing in the project or
harm the efficient operation of the project. The
resident management corporation and the resident
council may be the same organization, if the
organization complies with the requirements applicable
to both the corporation and council. The corporation
shall be a nonprofit corporation organized under the
laws of the State in which the project is located, and
the tenants of the project shall be the sole voting
members of the corporation. If there is no elected
resident council, a majority of the households of the
public housing project shall approve the establishment
of a resident council to determine the feasibility of
establishing a resident management corporation to
manage the project.
[(2) Public housing management specialist.--The
resident council of a public housing project, in
cooperation with the public housing agency, shall
select a qualified public housing management specialist
to assist in determining the feasibility of, and to
help establish, a resident management corporation and
to provide training and other duties agreed to in the
daily operations of the project.
[(3) Bonding and insurance.--Before assuming any
management responsibility for a public housing project,
the resident management corporation shall provide
fidelity bonding and insurance, or equivalent
protection, in accordance with regulations and
requirements of the Secretary and the public housing
agency. Such bonding and insurance, or its equivalent,
shall be adequate to protect the Secretary and the
public housing agency against loss, theft,
embezzlement, or fraudulent acts on the part of the
resident management corporation or its employees.
[(4) Management responsibilities.--A resident
management corporation that qualifies under this
section, and that supplies insurance and bonding or
equivalent protection sufficient to the Secretary and
the public housing agency, shall enter into a contract
with the public housing agency establishing the
respective management rights and responsibilities of
the corporation and the public housing agency. Such
contract shall be consistent with the requirements of
this Act applicable to public housing projects and may
include specific terms governing management personnel
and compensation, access to public housing project
records, submission of and adherence to budgets, rent
collection procedures, tenant income verification,
tenant eligibility determinations, tenant eviction, the
acquisition of supplies and materials and such other
matters as may be appropriate. The contract shall be
treated as a contracting out of services and shall be
subject to any provision of a collective bargaining
agreement regarding contracting out to which the public
housing agency is subject.
[(5) Annual audit.--The books and records of a
resident management corporation operating a public
housing project shall be audited annually by a
certified public accountant. A written report of each
audit shall be forwarded to the public housing agency
and the Secretary.
[(c) Comprehensive Improvement Assistance.--Public housing
projects managed by resident management corporations may be
provided with comprehensive improvement assistance under
section 14 for purposes of renovating such projects in
accordance with such section. If such renovation activities
(including the planning and architectural design of the
rehabilitation) are administered by a resident management
corporation, the public housing agency involved may not retain,
for any administrative or other reason, any portion of the
assistance provided pursuant to this subsection unless
otherwise provided by contract.
[(d) Waiver of Federal Requirements.--
[(1) Waiver of regulatory requirements.--Upon the
request of any resident management corporation and
public housing agency, and after notice and an
opportunity to comment is afforded to the affected
tenants, the Secretary may waive (for both the resident
management corporation and the public housing agency)
any requirement established by the Secretary (and not
specified in any statute) that the Secretarydetermines
to unnecessarily increase the costs or restrict the income of a public
housing project.
[(2) Waiver to permit employment.--Upon the request
of any resident management corporation, the Secretary
may, subject to applicable collective bargaining
agreements, permit residents of such project to
volunteer a portion of their labor.
[(3) Report on additional waivers.--Not later than 6
months after the date of the enactment of the Housing
and Community Development Act of 1987, the Secretary
shall submit to the Congress a report setting forth any
additional waivers of Federal law that the Secretary
determines are necessary or appropriate to carry out
the provisions of this section. In preparing the
report, the Secretary shall consult with resident
management corporations and public housing agencies.
[(4) Exceptions.--The Secretary may not waive under
this subsection any requirement with respect to income
eligibility for purposes of section 16, rental payments
under section 3(a), tenant or applicant protections,
employee organizing rights, or rights of employees
under collective bargaining agreements.
[(e) Operating Subsidy and Project Income.--
[(1) Calculation of operating subsidy.--
Notwithstanding any provision of section 9 or any
regulation under such section, and subject to the
exception provided in paragraph (3), the portion of the
operating subsidy received by a public housing agency
under section 9 that is allocated to a public housing
project managed by a resident management corporation
shall not be less than the public housing agency per
unit monthly amount provided in the previous year as
determined on an individual project basis.
[(2) Contract requirements.--Any contract for
management of a public housing project entered into by
a public housing agency and a resident management
corporation shall specify the amount of income expected
to be derived from the project itself (from sources
such as rents and charges) and the amount of income
funds to be provided to the project from the other
sources of income of the public housing agency (such as
operating subsidy under section 9, interest income,
administrative fees, and rents).
[(3) Calculation of total income.--
[(A) Subject to subparagraph (B), the amount
of funds provided by a public housing agency to
a public housing project managed by a resident
management corporation may not be reduced
during the 3-year period beginning on the date
of enactment of the Housing and Community
Development Act of 1987 or on any later date on
which a resident management corporation is
first established for the project.
[(B) If the total income of a public housing
agency (including the operating subsidy
provided to the public housing agency under
section 9) is reduced or increased, the income
provided by the public housing agency to a
public housing project managed by a resident
management corporation shall be reduced or
increased in proportion to the reduction or
increase in the total income of the public
housing agency, except that any reduction in
operating subsidy that occurs as a result of
fraud, waste, or mismanagement by the public
housing agency shall not affect the funds
provided to the resident management
corporation.
[(4) Retention of excess revenues.--
[(A) Any income generated by a resident
management corporation of a public housing
project that exceeds the income estimated for
purposes of this subsection shall be excluded
in subsequent years in calculating (i) the
operating subsidies provided to the public
housing agency under section 9; and (ii) the
funds provided by the public housing agency to
the resident management corporation.
[(B) Any revenues retained by a resident
management corporation under subparagraph (A)
shall be used for purposes of improving the
maintenance and operation of the public housing
project, for establishing business enterprises
that employ residents of public housing, or for
acquiring additional dwelling units for low-
income families.
[(f) Resident Management Technical Assistance and Training.--
[(1) Financial assistance.--To the extent budget
authority is available for section 14, the Secretary
shall provide financial assistance to resident
management corporations or resident councils that
obtain, by contract or otherwise, technical assistance
for the development of resident management entities,
including the formation of such entities, the
development of the management capability of newly
formed or existing entities, the identification of the
social support needs of residents of public housing
projects, and the securing of such support.
[(2) Limitation on assistance.--The financial
assistance provided under this subsection with respect
to any public housing project may not exceed $100,000.
[(3) Authorization of appropriations.--There are
authorized to be appropriated to carry out this
subsection $4,750,000 for fiscal year 1993 and
$4,949,500 for fiscal year 1994.
[(4) Limitation regarding assistance under hope grant
program.--The Secretary may not provide financial
assistance under this subsection to any resident
management corporation or resident council with respect
to which assistance for the development or formation of
such entity is provided under title III.
[(g) Assessment and Report by the Secretary.--Not later than
3 years after the date of the enactment of the Housing and
Community Development Act of 1987, the Secretary shall--
[(1) conduct an evaluation and assessment of resident
management, and particularly of the effect of resident
management on living conditions in public housing; and
[(2) submit to the Congress a report setting forth
the findings of the Secretary as a result of the
evaluation and assessmentand including any
recommendations the Secretary determines to be appropriate.
[(h) Applicability.--Any management contract between a public
housing agency and a resident management corporation that is
entered into after the date of the enactment of the Stewart B.
McKinney Homeless Assistance Amendments Act of 1988 shall be
subject to this section and the regulations issued to carry out
this section.
[public housing homeownership and management opportunities
[Sec. 21. (a) Homeownership Opportunities in General.--Lower
income families residing in a public housing project shall be
provided with the opportunity to purchase the dwelling units in
the project through a qualifying resident management
corporation as follows:
[(1) Formation of resident management corporation.--
As a condition for public housing homeownership--
[(A) the adult residents of a public housing
project shall have formed a resident management
corporation in accordance with regulations and
requirements of the Secretary prescribed under
this section and section 20;
[(B) the resident management corporation
shall have entered into a contract with the
public housing agency establishing the
respective management rights and
responsibilities of the resident management
corporation and the public housing agency; and
[(C) the resident management corporation
shall have demonstrated its ability to manage
public housing effectively and efficiently for
a period of not less than 3 years.
[(2) Homeownership assistance.--
[(A) The Secretary may provide comprehensive
improvement assistance under section 14 to a
public housing project in which homeownership
activities under this section are conducted.
[(B) The Secretary may provide financial
assistance to public housing agencies, resident
management corporations, or resident councils
that obtain, by contract or otherwise,
training, technical assistance, and educational
assistance as the Secretary determines to be
necessary to promote homeownership
opportunities under this section.
[(C) This paragraph shall not have effect
after February 4, 1991. The Secretary may not
provide financial assistance under subparagraph
(B), after such date, unless the Secretary
determines that such assistance is necessary
for the development of a homeownership program
that was initiated, as determined by the
Secretary, before the date of the enactment of
the Cranston-Gonzalez National Affordable
Housing Act.
[(3) Conditions of purchase by a resident management
corporation.--
[(A) A resident management corporation may
purchase from a public housing agency one or
more multifamily buildings in a public housing
project following a determination by the
Secretary that--
[(i) the resident management
corporation has met the conditions of
paragraph (1);
[(ii) the resident management
corporation has applied for and is
prepared to undertake the ownership,
management, and maintenance of the
building or buildings with continued
assistance from the Secretary;
[(iii) the public housing agency has
held one or more public hearings to
obtain the views of citizens regarding
the proposed purchase and, in
consultation with the Secretary, has
certified that the purchase will not
interfere with the rights of other
families residing in public housing,
will not harm the efficient operation
of other public housing, and is in the
interest of the community;
[(iv) the public housing agency has
certified that it has and will
implement a plan to replace public
housing units sold under this section
within 30 months of the sale, which
plan shall provide for replacement of
100 percent of the units sold under
this section by--
[(I) production, acquisition,
or rehabilitation of vacant
public housing units by the
public housing agency; and
[(II) acquisition by the
resident management corporation
of nonpublicly owned, decent,
and affordable housing units,
which the resident management
corporation shall operate as
rental housing subject to
tenant income and rent
limitations comparable to the
limitations applicable to
public housing; and
[(v) the building or buildings meet
the minimum safety and livability
standards applicable under section 14,
and the physical condition, management,
and operation of the building or
buildings are sufficient to permit
affordable homeownership by the
families residing in the project.
[(B) The price of a building purchased under
the preceding sentence shall be approved by the
Secretary, in consultation with the public
housing agency and resident management
corporation, taking into account the fair
market value of the property, the ability of
resident families to afford and maintain the
property, and such other factors as the
Secretary determines to be consistent with
increasing the supply of dwelling units
affordable to very low income families.
[(C) This paragraph shall not have effect
after February 4, 1991. The authority for a
resident management corporation to purchase 1
or more multifamily buildings in a public
housing project from a public housing agency
shall terminate after such date, unless the
Secretary determines that such purchase is
necessary for the development of ahomeownership
program that was initiated, as determined by the Secretary, before the
date of the enactment of the Cranston-Gonzalez National Affordable
Housing Act.
[(4) Conditions of resale.--
[(A)(i) A resident management corporation may
sell a dwelling unit or ownership rights in a
dwelling unit only to a lower income family
residing in, or eligible to reside in, public
housing and only if the Secretary determines
that the purchase will not interfere with the
rights of other families residing in the
housing project or harm the efficient operation
of the project, and the family will be able to
purchase and maintain the property.
[(ii) The sale of dwelling units or ownership
rights in dwelling units under clause (i) shall
be made to families in the following order of
priority:
[(I) a lower income family residing
in the public housing project in which
the dwelling unit is located;
[(II) a lower income family residing
in any public housing project within
the jurisdiction of the public housing
agency having jurisdiction with respect
to the project in which the dwelling
unit is located;
[(III) a lower income family
receiving Federal housing assistance
and residing in the jurisdiction of
such public housing agency; and
[(IV) a lower income family on the
waiting list of such public housing
agency for public housing or assistance
under section 8, with priority given in
the order in which the family appears
on the waiting list.
[(iii) Each resident management corporation
shall provide each family described in clause
(ii) with a notice of the eligibility of the
family to purchase a dwelling unit under this
paragraph.
[(B) A purchase under subparagraph (A) may be
made under any of the following arrangements:
[(i) Limited dividend cooperative
ownership.
[(ii) Condominium ownership.
[(iii) Fee simple ownership.
[(iv) Shared appreciation with a
public housing agency providing
financing under paragraph (6).
[(v) Any other arrangement determined
by the Secretary to be appropriate.
[(C) Property purchased under this section
shall be resold only to the resident management
corporation, a lower income family residing in
or eligible to reside in public housing or
housing assisted under section 8, or to the
public housing agency.
[(D) In no case may the owner receive
consideration for his or her interest in the
property that exceeds the total of--
[(i) the contribution to equity paid
by the owner;
[(ii) the value, as determined by
such means as the Secretary shall
determine through regulation, of any
improvements installed at the expense
of the owner during the owner's tenure
as owner; and
[(iii) the appreciated value
determined by an inflation allowance at
a rate which may be based on a cost of
living index, an income index, or
market index as determined by the
Secretary through regulation and agreed
to by the purchaser and the resident
management corporation or the public
housing agency, whichever is
appropriate, at the time of initial
sale, and applied against the
contribution to equity; the resident
management corporation or the public
housing agency may, at the time of
initial sale, enter into an agreement
with the owner to set a maximum amount
which this appreciation may not exceed.
[(E) Upon sale, the resident management
corporation or the public housing agency,
whichever is appropriate, shall ensure that
subsequent owners are bound by the same
limitations on resale and further restrictions
on equity appreciation.
[(5) Use of proceeds.--Notwithstanding any other
provision of this Act or other law to the contrary,
proceeds from the sale of a building or buildings under
paragraph (3) and amounts recaptured under paragraph
(4) shall be paid to the public housing agency and
shall be retained and used by the public housing agency
only to increase the number of public housing units
available for occupancy. The resident management
corporation shall keep and make available to the public
housing agency and the Secretary all records necessary
to calculate accurately payments due the local housing
agency under this section. The Secretary shall not
reduce or delay payments under other provisions of law
as a result of amounts made available to the local
housing agency under this section.
[(6) Financing.--When financing for the purchase of
the property is not otherwise available for purposes of
assisting any purchase by a family or resident
management corporation under this section, the public
housing agency involved may make a loan on the security
of the property involved to the family or resident
management corporation at a rate of interest that shall
not be lower than 70 percent of the market interest
rate for conventional mortgages on the date on which
the loan is made.
[(7) Annual contributions.--Notwithstanding the
purchase of a building in a public housing project
under this section, the Secretary shall continue to pay
annual contributions with respect to the project. Such
contributions may not exceed the maximum contributions
authorized in section 5(a).
[(8) Operating subsidies.--Operating subsidies shall
not be available with respect to a building after the
date of its sale by the public housing agency.
[(b) Protection of Nonpurchasing Families.--
[(1) Eviction prohibition.--No family residing in a
dwelling unit in a public housing project may be
evicted by reason of the sale of the project to a
resident management corporation under this section.
[(2) Tenants rights.--Families renting a dwelling
unit purchased by a resident management corporation
shall have all rights provided to tenants of public
housing under this Act.
[(3) Rental assistance.--If any family resides in a
dwelling unit in a building purchased by a resident
management corporation, and the family decides not to
purchase the dwelling unit, the Secretary shall offer
to provide to the family (at the option of the family)
a certificate under section 8(b)(1) or a housing
voucher under section 8(o) for as long as the family
continues to reside in the building. The Secretary may
adjust the fair market rent for such certificate to
take into account conditions under which the building
was purchased.
[(4) Rental and relocation assistance.--If any family
resides in a dwelling unit in a public housing project
in which other dwelling units are purchased under this
section, and the family decides not to purchase the
dwelling unit, the Secretary shall offer (to be
selected by the family, at its option)--
[(A) to assist the family in relocating to a
comparable appropriate sized dwelling unit in
another public housing project, and to
reimburse the family for their cost of
relocation; and
[(B) to provide to the family the financial
assistance necessary to permit the family to
stay in the dwelling unit or to move to another
comparable dwelling unit and to pay no more for
rent than required under subparagraph (A), (B),
or (C) of section 3(a)(1).
[(c) Financial Assistance for Public Housing Agencies.--The
Secretary shall provide to public housing agencies such
financial assistance as is necessary to permit such agencies to
carry out the provisions of this section.
[(d) Additional Homeownership and Management Opportunities.--
This section shall not apply to the turnkey III, the mutual
help, or any other homeownership program established under
section 5(h) or section 6(c)(4)(D) and in existence before the
date of the enactment of the Housing and Community Development
Act of 1987.
[(e) Regulations.--The Secretary shall issue such regulations
as may be necessary to carry out the provisions of this
section. Such regulations may establish any additional terms
and conditions for homeownership or resident management under
this section that are determined by the Secretary to be
appropriate.
[(g) Limitation.--Any authority of the Secretary under this
section to provide financial assistance, or to enter into
contracts to provide financial assistance, shall be effective
only to such extent or in such amounts as are or have been
provided in advance in an appropriation Act.
[family investment centers
[Sec. 22. (a) Purpose.--The purpose of this section is to
provide families living in public housing with better access to
educational and employment opportunities to achieve self-
sufficiency and independence by--
[(1) developing facilities in or near public housing
for training and support services;
[(2) mobilizing public and private resources to
expand and improve the delivery of such services;
[(3) providing funding for such essential training
and support services that cannot otherwise be funded;
and
[(4) improving the capacity of management to assess
the training and service needs of families with
children, coordinate the provision of training and
services that meet such needs, and ensure the longterm
provision of such training and services.
[(b) Grant Authority.--
[(1) In general.--The Secretary may make grants to
public housing agencies to adapt public housing to help
families living in the public housing gain better
access to educational and job opportunities to achieve
self-sufficiency and independence. Assistance under
this section may be made available only to public
housing agencies that demonstrate to the satisfaction
of the Secretary that supportive services (as such term
is defined under subsection (j)) will be made
available. Facilities assisted under this section shall
be in or near the premises of public housing.
[(2) Supplemental grant set-aside.--The Secretary may
reserve not more than 5 percent of the amounts
available in each fiscal year under this section to
supplement grants awarded to public housing agencies
under this section when, in the determination of the
Secretary, such supplemental adjustments are required
to maintain adequate levels of services to eligible
residents.
[(c) Use of Amounts.--Amounts received from a grant under
this section may only be used for--
[(1) the renovation, conversion, or combination of
vacant dwelling units in a public housing project to
create common areas to accommodate the provision of
supportive services;
[(2) the renovation of existing common areas in a
public housing project to accommodate the provision of
supportive services;
[(3) the renovation of facilities located near the
premises of 1 or more public housing projects to
accommodate the provision of supportive services;
[(4) the provision of not more than 15 percent of the
cost of any supportive services (which may be provided
directly to eligible residents by the public housing
agency or by contract or lease through other
appropriate agencies or providers) only if the public
housing agency demonstrates to the satisfaction of the
Secretary that--
[(A) the supportive services are appropriate
to improve the access of eligible residents to
employment and educational opportunities; and
[(B) the public housing agency has made
diligent efforts to use or obtain other
available resources to fund or provide such
services; and
[(5) the employment of service coordinators subject
to such minimum qualifications and standards that the
Secretary may establish to ensure sound management, who
may be responsible for--
[(A) assessing the training and service needs
of eligible residents;
[(B) working with service providers to
coordinate the provision of services and tailor
such services to the needs and characteristics
of eligible residents;
[(C) mobilizing public and private resources
to ensure that the supportive services
identified pursuant to subsection (e)(1) can be
funded over the time period identified under
such subsection;
[(B) monitoring and evaluating the impact and
effectiveness of any supportive service program
receiving capital or operating assistance under
this section; and
[(V) performing such other duties and
functions that the Secretary determines are
appropriate to provide families living in
public housing with better access to
educational and employment opportunities.
[(d) Allocation of Grant Amounts.--Assistance under this
section shall be allocated by the Secretary among approvable
applications submitted by public housing agencies.
[(e) Applications.--Applications for assistance under this
section shall be submitted in such form and in accordance with
such procedures as the Secretary shall establish. Each
application for assistance shall contain--
[(1) a description of the supportive services that
are to be provided over a 5-year period (or such longer
period that the Secretary determines to be appropriate
if assistance is provided for activities under
subsection (c) that involve substantial
rehabilitation);
[(2) a firm commitment of assistance from 1 or more
sources ensuring that the supportive services will be
provided for not less than 1 year following the
completion of activities assisted under subsection (c);
[(3) a description of public or private sources of
assistance that can reasonably be expected to fund or
provide supportive services for the entire period
specified under paragraph (1), including evidence of
any intention to provide assistance expressed by State
and local governments, private foundations, and other
organizations (including profit and nonprofit
organizations);
[(4) certification from the appropriate State or
local agency (as determined by the Secretary) that--
[(A) the provision of supportive services
described in paragraph (1) is well designed to
provide resident families better access to
educational and employment opportunities; and
[(B) there is a reasonable likelihood that
such services will be funded or provided for
the entire period specified in paragraph (1);
[(5) a description of assistance for which the public
housing agency is applying under this section; and
[(6) any other information or certifications that the
Secretary determines are necessary or appropriate to
achieve the purposes of this section.
[(f) Selection.--The Secretary shall establish selection
criteria for grants under this section, which shall take into
account--
[(1) the ability of the public housing agency or a
designated service provider to provide the supportive
services identified under subsection (e)(1);
[(2) the need for such services in the public housing
project;
[(3) the extent to which the envisioned renovation,
conversion, and combination activities are appropriate
to facilitate the provision of such services;
[(4) the extent to which the public housing agency
has demonstrated that such services will be provided
for the period identified under subsection (e)(1);
[(5) the extent to which the public housing agency
has a good record of maintaining and operating public
housing; and
[(6) any other factors that the Secretary determines
to be appropriate to ensure that amounts made available
under this section are used effectively.
[(g) Reports.--
[(1) To secretary.--Each public housing agency
receiving a grant under this section shall submit to
the Secretary, in such form and at such time as the
Secretary shall prescribe, an annual progress report
describing and evaluating the use of grant amounts
received under this section.
[(2) To congress.--The Secretary shall submit to the
Congress annually, as a part of the report of the
Secretary under section 8 of the Department of Housing
and Urban Development Act, an evaluation of the
effectiveness of activities carried out with grants
under this section in such fiscal year. Such report
shall summarize the progress reports submitted pursuant
to paragraph (1).
[(h) Employment of Public Housing Residents.--Each public
housing agency shall, to the maximum extent practicable, employ
public housing residents to provide the services assisted under
this section or from other sources. Such persons shall be paid
at a rate not less than the highest of--
[(1) the minimum wage that would be applicable to the
employee under the Fair Labor Standards Act of 1938, if
section 6(a)(1) of such Act applied to the resident and
if the resident were not exempt under section 13 of
such Act;
[(2) the State or local minimum wage for the most
nearly comparable covered employment; or
[(3) the prevailing rates of pay for persons employed
in similar public occupations by the same employer.
[(i) Treatment of Income.--No service provided to a public
housing resident under this section may be treated as income
for the purpose of any other program or provision of State or
Federal law.
[(j) Definition of Supportive Services.--For purpose of this
section, the term ``supportive services'' means new or
significantly expanded services that the Secretary determines
are essential to providing families living with children in
public housing with better access to educational and employment
opportunities. Such services may include--
[(1) child care;
[(2) employment training and counseling;
[(3) literacy training;
[(4) computer skills training;
[(5) assistance in the attainment of certificates of
high school equivalency; and
[(6) other appropriate services.
[(k) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $25,000,000 for
fiscal year 1993 and $26,050,000 for fiscal year 1994.
SEC. 23. FAMILY SELF-SUFFICIENCY PROGRAM.
[(a) Purpose.--The purpose of the Family Self-Sufficiency
program established under this section is to promote the
development of local strategies to coordinate use of public
housing and assistance under the certificate and voucher
programs under section 8 with public and private resources, to
enable eligible families to achieve economic independence and
self-sufficiency.
[(b) Establishment of Program.--
[(1) Required programs.--Except as provided in
paragraph (2), the Secretary shall carry out a program
under which each public housing agency that administers
assistance under subsection (b) or (o) of section 8 or
makes available new public housing dwelling units--
[(A) may, during fiscal years 1991 and 1992,
carry out a local Family Self-Sufficiency
program under this section; and
[(B) effective on October 1, 1992, the
Secretary shall require each such agency to
carry out a local Family Self-Sufficiency
program under this section.
Each local program shall, subject to availability of
supportive services, include an action plan under
subsection (g) and shall provide comprehensive
supportive services for families electing to
participate in the program. In carrying out the self-
sufficiency program under this section, the Secretary
shall consult with the heads of other appropriate
Federal agencies and provide for cooperative actions
and funding agreements with such agencies. Each public
housing agency administering an approved local program
may employ a service coordinator to administer the
local program.
[(2) Exception.--The Secretary shall not require a
public housing agency to carry out a local program
under subsection (a) if the public housing agency
provides certification (as such term is defined under
title I of the Cranston-Gonzalez National Affordable
Housing Act) to the Secretary, that the establishment
and operation of the program is not feasible because of
local circumstances, which may include--
[(A) lack of supportive services accessible
to eligible families, which shall include
insufficient availability of resources for
programs under the Job Training Partnerships
Act or the Job Opportunities and Basic Skills
Training Program under part F of title IV of
the Social Security Act;
[(B) lack of funding for reasonable
administrative costs;
[(C) lack of cooperation by other units of
State or local government; or
[(D) any other circumstances that the
Secretary may consider appropriate.
In allocating assistance available for reservation
under this Act, the Secretary may not refuse to provide
assistance or decrease the amount of assistance that
would otherwise be provided to any public housing
agency because the agency has provided a certification
under this paragraph or because, pursuant to a
certification, the agency has failed to carry out a
self-sufficiency program.
[(3) Scope.--Each public housing agency required to
carry out a local program under this section shall make
the following housing assistance available under the
program in each fiscal year:
[(A) Certificate and voucher assistance under
section 8(b) and (o), in an amount equivalent
to the increase for such year in the number of
families so assisted by the agency (as compared
to the preceding year).
[(B) Public housing dwelling units, in the
number equal to the increase for such year in
units made available by the agency (as compared
to the preceding year).
[Each such public housing agency shall continue to
operate a local program for the number of families
determined under this paragraph subject only to the
availability under appropriations Acts of sufficient
amounts for assistance.
[(4) Nonparticipation.--Assistance under the
certificate or voucher programs under section 8 for a
family that elects not to participate in a local
program shall not be delayed by reason of such
election.
[(c) Contract of Participation.--
[(1) In general.--Each public housing agency carrying
out a local program under this section shall enter into
a contract with each leaseholder receiving assistance
under the certificate and voucher programs of the
public housing agency under section 8 or residing in
public housing administered by the agency, that elects
to participate in the self-sufficiency program under
this section. The contract shall set forth the
provisions of the local program, shall establish
specific interim and final goals by which compliance
with and performance of the contract may be measured,
and shall specify the resources and supportive services
to be made available to the participating family
pursuant to paragraph (2) and the responsibilities of
the participating family. The contract shall provide
that the public housing agency may terminate or
withhold assistance under section 8 and services under
paragraph (2) of this subsection if the public housing
agency determines, through an administrative grievance
procedure in accordance with the requirements of
section 6(k), that the family has failed to comply with
the requirements of the contract without good cause
(which may include a loss or reduction in access to
supportive services, or a change in circumstances that
makes the family or individual unsuitable for
participation).
[(2) Supportive services.--A local program under this
section shall provide appropriate supportive services
under this paragraph to each participating family
entering into a contract of participation under
paragraph (1). The supportive services shall be
provided during the period the family is receiving
assistance under section 8 or residing in public
housing, and may include--
[(A) child care;
[(B) transportation necessary to receive
services;
[(C) remedial education;
[(D) education for completion of high school;
[(E) job training and preparation;
[(F) substance abuse treatment and
counseling;
[(G) training in homemaking and parenting
skills;
[(H) training in money management;
[(I) training in household management; and
[(J) any other services and resources
appropriate to assist eligible families to
achieve economic independence and self-
sufficiency.
[(3) Term and extension.--Each family participating
in a local program shall be required to fulfill its
obligations under the contract of participation not
later than 5 years after entering into the contract.
The public housing agency shall extend the term of the
contract for any family that requests an extension,
upon a finding of the agency of good cause.
[(4) Employment and counseling.--The contract of
participation shall require the head of the
participating family to seek suitable employment during
the term of the contract. The public housing agency
may, during such period, provide counseling for the
family with respect to affordable rental and
homeownership opportunities in the private housing
market and money management counseling.
[(d) Incentives for Participation.--
[(1) Maximum rents.--During the term of the contract
of participation, the amount of rent paid by any
participating family whose monthly adjusted income does
not exceed 50 percent of the area median income for
occupancy in the public housing unit or dwelling unit
assisted under section 8 may not be increased on the
basis of any increase in the earned income of the
family, unless the increase results in an income
exceeding 50 percent of the area median income. The
Secretary shall provide for increased rents for
participating families whose incomes are between 50 and
80 percent of the area median income, so that any
family whose income increases to 80 percent or more of
the area median income pays 30 percent of the family's
monthly adjusted income for rent. Upon completion of
the contract of participation, if the participating
family continues to qualify for and reside in a
dwelling unit in public housing or housing assisted
under section 8, the rent charged the participating
family shall be increased (if applicable) to 30 percent
of the monthly adjusted income of the family.
[(2) Escrow savings accounts.--For each participating
family whose monthly adjusted income is less than 50
percent of the area median income, the difference
between 30 percent of the adjusted income of the
participating family and the amount of rent paid by a
participating family shall be placed in an interest-
bearing escrow account established by the public
housing agency on behalf of the participating family.
For families with incomes between 50 and 80 percent of
the area median income, the Secretary shall provide for
escrow of the difference between 30 percent of the
family income and the amount paid by the family for
rent as determined by the Secretary under paragraph
(1). The Secretary shall not escrow any amounts for any
family whose adjusted income exceeds 80 percent of the
area median income. Amounts in the escrow account may
be withdrawn by the participating family after the
family ceases to receive income assistance under
Federal or State welfare programs, upon successful
performance of the obligations of the family under the
contract of participation entered into by the family
under subsection (c), as determined according to the
specific goals and terms included in the contract, and
under other circumstances in which the Secretary
determines an exception for good cause is warranted. A
public housing agency establishing such escrow accounts
may make certain amounts in the accounts available to
the participating families before full performance of
the contract obligations based on compliance with, and
completion of, specific interim goals included in the
contract; except that any such amounts shall be used by
the participating families for purposes consistent with
the contracts of participation, as determined by the
public housing agency.
[(3) Plan.--Each public housing agency carrying out a
local program under this section shall establish a plan
to offer incentives to families to encourage families
to participate in the program. The plan shall require
the establishment of escrow savings accounts under
paragraph (2) and may include any other incentives
designed by the public housing agency.
[(3) Use of escrow savings accounts for section 8
homeownership.--Notwithstanding paragraph (3), a family
that uses assistance under section 8(y) to purchase a
dwelling may use up to 50 percent of the amount in its
escrow account established under paragraph (3) for a
downpayment on the dwelling. In addition, after the
family purchases the dwelling, the family may use any
amounts remaining in the escrow account to cover the
costs of major repair and replacement needs of the
dwelling. If a family defaults in connection with the
loan to purchase a dwelling and the mortgage is
foreclosed, the remaining amounts in the escrow account
shall be recaptured by the Secretary.
[(e) Effect of Increases in Family Income.--Any increase in
the earned income of a family during the participation of the
family in a local program established under this section may
not be considered as income or a resource for purposes of
eligibility of the family for other benefits, or amount of
benefits payable to the family, under any program administered
by the Secretary, unless the income of the family equals or
exceeds 80 percent of the median income of the area (as
determined by the Secretary with adjustments for smaller and
larger families).
[(f) Program Coordinating Committee.--
[(1) Functions.--Each public housing agency shall, in
consultation with the chief executive officer of the
unit of general local government, develop an action
plan under subsection (g), carry out activities under
the local program, and secure commitments of public and
private resources through a program coordinating
committee established by the public housing agency
under this subsection.
[(2) Membership.--The program coordinating committee
may consist of representatives of the public housing
agency, the unit of general local government, the local
agencies (if any) responsible for carrying out programs
under the Job Training Partnership Act and the Job
Opportunities and Basic Skills Training Program under
part F of title IV of the Social Security Act, and
other organizations, such as other State and local
welfare and employment agencies, public and private
education or training institutions, nonprofit service
providers, and private businesses. The public housing
agency may, in consultation with the chief executive
officer of the unit of general local government,
utilize an existing entity as the program coordinating
committee if it meets the requirements of this
subsection.
[(g) Action Plan.--
[(1) Required submission.--The Secretary shall
require each public housing agency participating in the
self-sufficiency program under this section to submit
to the Secretary, for approval by the Secretary, an
action plan under this subsection in such form and in
accordance with such procedures as the Secretary shall
require.
[(2) Development of plan.--In developing the plan,
the public housing agency shall consult with the chief
executive officer of the applicable unit of general
local government, the program coordinating committee
established under subsection (f), representatives of
residents of the public housing, any local agencies
responsible for programs under the Job Training
Partnership Act and the Job Opportunities and Basic
Skills Training Program under part F of title IV of the
Social Security Act, other appropriate organizations
(such as other State and local welfare and employment
or training institutions, child care providers,
nonprofit service providers, and private businesses),
and any other public and private service providers
affected by the operation of the local program.
[(3) Contents of plan.--The Secretary shall require
that the action plan contain at a minimum--
[(A) a description of the size,
characteristics, and needs of the population of
the families expected to participate in the
local self-sufficiency program;
[(B) a description of the number of eligible
participating families who can reasonably be
expected to receive supportive services under
the program, based on available and anticipated
Federal, State, local, and private resources;
[(C) a description of the services and
activities under subsection (c)(2) to be
provided to families receiving assistance under
this section through the section 8 and public
housing programs, which shall be provided by
both public and private resources;
[(D) a description of the incentives pursuant
to subsection (d) offered by the public housing
agency to families to encourage participation
in the program;
[(E) a description of how the local program
will deliver services and activities according
to the needs of the families participating in
the program;
[(F) a description of both the public and
private resources that are expected to be made
available to provide the activities and
services under the local program;
[(G) a timetable for implementation of the
local program;
[(H) assurances satisfactory to the Secretary
that development of the services and activities
under the local program has been coordinated
with the Job Opportunities and Basic Skills
Training Program under part F of title IV of
the Social Security Act and program under the
Job Training Partnership Act and any other
relevant employment, child care,
transportation, training, and education
programs in the applicable area, and that
implementation will continue to be coordinated,
in order to avoid duplication of services and
activities; and
[(I) assurances satisfactory to the Secretary
that nonparticipating families will retain
their rights to public housing or section 8
assistance notwithstanding the provisions of
this section.
[(h) Allowable Public Housing Agency Administrative Fees and
Costs.--
[(1) Section 8 fees.--The Secretary shall establish a
fee under section 8(q) for the costs incurred in
administering the provision of certificate and voucher
assistance under section 8 through the self-sufficiency
program under this section. The fee shall be the fee in
effect under such section on June 1, 1990, except that
for purposes of the fee under this paragraph the
applicable dollar amount for preliminary expenses under
section 8(q)(2)(A)(i) shall, subject to approval in
appropriations Acts, be $300. Upon the submission by
the Comptroller General of the United States of the
report required under section 554(b) of the Cranston-
Gonzalez National Affordable Housing Act, the Secretary
shall revise the fee under this paragraph, taking into
consideration the report of the Comptroller General.
[(2) Performance funding system.--Notwithstanding any
provision of section 9, the Secretary shall provide for
inclusion under the performance funding system under
section 9 of reasonable and eligible administrative
costs (including the costs of employing a full-time
service coordinator) incurred by public housing
agencies carrying out local programs under this
section. The Secretary shall include an estimate of the
administrative costs likely to be incurred by
participating public housing agencies in the annual
budget request for the Department of Housing and Urban
Development for public housing operating assistance
under section 9 and shall include a request for such
amounts in the budget request. Of any amounts
appropriated under section 9(c) for fiscal year 1993,
$25,000,000 is authorized to be used for costs under
this paragraph, and of any amounts appropriated under
such section for fiscal year 1994, $25,900,000 is
authorized to be used for costs under this paragraph.
[(i) Public Housing Agency Incentive Award Allocation.--
[(1) In general.--The Secretary shall carry out a
competition for budget authority for certificate and
voucher assistance under section 8 and public housing
development assistance under section 5(a)(2) reserved
under paragraph (4) and shall allocate such budget
authority to public housing agencies pursuant to the
competition.
[(2) Criteria.--The competition shall be based on
successful and outstanding implementation by public
housing agencies of a local self-sufficiency program
under this section. The Secretary shall establish
perfomance criteria for public housing agencies
carrying out such local programs and the Secretary
shall cause such criteria to be published in the
Federal Register.
[(3) Use.--Each public housing agency that receives
an allocation of budget authority under this subsection
shall use such authority to provide assistance under
the local self-sufficiency program established by the
public housing agency under this section.
[(4) Reservation of budget authority.--
Notwithstanding section 213(d) of the Housing and
Community Development Act of 1974, the Secretary shall
reserve for allocation under this subsection not less
than 10 percent of the portion of budget authority
appropriated in each of fiscal years 1991 and 1992 for
section 8 that is available for purposes of providing
assistance under the existing housing certificate and
housing voucher programs for families not currently
receiving assistance, and not less than 10 percent of
the public housing development assistance available in
such fiscal years for the purpose under section 5(a)(2)
(excluding amounts for major reconstruction of obsolete
projects).
[(j) On-Site Facilities.--Each public housing agency carrying
out a local program may, subject to the approval of the
Secretary, make available and utilize common areas or
unoccupied public housing units in public housing projects
administered by the agency for the provision of supportive
services under the local program. The use of the facilities of
a public housing agency under this subsection shall not affect
the amount of assistance provided to the agency under section
9.
[(k) Flexibility.--In establishing and carrying out the self-
sufficiency program under this section, the Secretary shall
allow public housing agencies, units of general local
government, and other organizations discretion and flexibility,
to the extent practicable, in developing and carrying out local
programs.
[(l) Reports.--
[(1) To secretary.--Each public housing agency that
carries out a local self-sufficiency program approved
by the Secretary under this section shall submit to the
Secretary, not less than annually a report regarding
the program. The report shall include--
[(A) a description of the activities carried
out under the program;
[(B) a description of the effectiveness of
the program in assisting families to achieve
economic independence and self-sufficiency;
[(C) a description of the effectiveness of
the program in coordinating resources of
communities to assist families to achieve
economic independence and self-sufficiency; and
[(D) any recommendations of the public
housing agency or the appropriate local program
coordinating committee for legislative or
administrative action that would improve the
self-sufficiency program carried out by the
Secretary and ensure the effectiveness of the
program.
[(2) HUD annual report.--The Secretary shall submit
to the Congress annually, as a part of the report of
the Secretary under section 8 of the Department of
Housing and Urban Development Act, a report summarizing
the information submitted by public housing agencies
under paragraph (1). The report under this paragraph
shall also include any recommendations of the Secretary
for improving the effectiveness of the self-sufficiency
program under this section.
[(m) GAO Report.--The Comptroller General of the United
States may submit to the Congress reports under this subsection
evaluating and describing the Family Self-Sufficiency program
carried out by the Secretary under this section.
[(n) Definitions.--As used in this section:
[(1) The term ``contract of participation'' means a
contract under subsection (c) entered into by a public
housing agency carrying out a local program under this
section and a participating family.
[(2) The term ``earned income'' means income from
wages, tips, salaries, and other employee compensation,
and any earnings from self-employment. The term does
not include any pension or annuity, transfer payments,
or any cash or in-kind benefits.
[(3) The term ``eligible family'' means a family
whose head of household is not elderly, disabled,
pregnant, a primary caregiver for children under the
age of 3, or for whom the family self-sufficiency
program would otherwise be unsuitable. Notwithstanding
the preceding sentence, a public housing agency may
enroll such families if they choose to participate in
the program.
[(4) The term ``local program'' means a program for
providing supportive services to participating families
carried out by a public housing agency within the
jurisdiction of the public housing agency.
[(5) The term ``participating family'' means a family
that resides in public housing or housing assisted
under section 8 and elects to participate in a local
self-sufficiency program under this section.
[(6) The term ``vacant unit'' means a dwelling unit
that has been vacant for not less than 9 consecutive
months.
[(o) Effective Date and Regulations.--
[(1) Regulations.--Not later than the expiration of
the 180-day period beginning on the date of the
enactment of the Cranston-Gonzalez National Affordable
Housing Act, the Secretary shall by notice establish
any requirements necessary to carry out this section.
Such requirements shall be subject to section 553 of
title 5, United States Code. The Secretary shall issue
final regulations based on the notice not later than
the expiration of the 8-month period beginning on the
date of the notice. Such regulations shall become
effective upon the expiration of the 1-year period
beginning on the date of the publication of the final
regulations.
[(2) Applicability to indian public housing
authorities.--Notwithstanding any other provision of
law, the provisions of this section shall be optional
for Indian housing authorities.
[SEC. 24. REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING.
[(a) Program Authority.--The Secretary may make--
[(1) planning grants under subsection (c) to enable
applicants to develop revitalization programs for
severely distressed public housing in accordance with
this section; and
[(2) implementation grants under subsection (d) to
carry out revitalization programs for severely
distressed public housing in accordance with this
section.
[(b) Designation of Eligible Projects.--
[(1) Identification.--Not later than 90 days after
the date of enactment of the Housing and Community
Development Act of 1992, public housing agencies shall
identify, in such form and manner as the Secretary may
prescribe, any public housing projects that they
consider to be severely distressed public housing for
purposes of receiving assistance under this section.
[(2) Review by secretary.--The Secretary shall review
the projects identified pursuant to paragraph (1) to
ascertain whether the projects are severely distressed
housing (as such item is defined in subsection (h)).
Not later than 180 days after the date of enactment of
this section, the Secretary shall publish a list of
those projects that the Secretary determines are
severely distressed public housing.
[(3) Appeal of secretary's determination.--The
Secretary shall establish procedures for public housing
agencies to appeal the Secretary's determination that a
project identified by a public housing agency is not
severely distressed.
[(c) Planning Grants.--
[(1) In general.--The Secretary may make planning
grants under this subsection to applicants for the
purpose of developing revitalization programs for
severely distressed public housing under this section.
[(2) Amount.--The amount of a planning grant under
this subsection may not exceed $200,000 per project,
except that the Secretary may for good cause approve a
grant in a higher amount.
[(3) Eligible activities.--A planning grant may be
used for activities to develop revitalization programs
for severely distressed public housing, including--
[(A) studies of the different options for
revitalization, including the feasibility,
costs and neighborhood impact of such options;
[(B) providing technical or organizational
support to ensure resident involvement in all
phases of the planning and implementation
processes;
[(C) improvements to stabilize the
development, including security investments;
[(D) conducting workshops to ascertain the
attitudes and concerns of the neighboring
community;
[(E) preliminary architectural and
engineering work;
[(F) planning for economic development, job
training and self-sufficiency activities that
promote the economic self-sufficiency of
residents under the revitalization program;
[(G) designing a suitable replacement housing
plan, in situations where partial or total
demolition is considered;
[(H) planning for necessary management
improvements; and
[(I) preparation of an application for an
implementation grant under this section.
[(4) Applications.--An application for a planning
grant shall be submitted in such form and in accordance
with such procedures as the Secretary shall establish.
The Secretary shall require that an application contain
at a minimum--
[(A) a request for a planning grant,
specifying the activities proposed, the
schedule for completing the activities, the
personnel necessary to complete the activities
and the amount of the grant requested;
[(B) a description of the applicant and a
statement of its qualifications;
[(C) identification and description of the
project involved, and a description of the
composition of the tenants, including family
size and income;
[(D) a certification by the public official
responsible for submitting the comprehensive
housing affordability strategy under section
105 of the Cranston-Gonzalez National
Affordable Housing Act that the proposed
activities are consistent with the approved
housing strategy of the State or unit of
general local government within which the
project is located; and
[(E) a certification that the applicant will
comply with the requirements of the Fair
Housing Act, title VI of the Civil Rights Act
of 1964, section 504 of the Rehabilitation Act
of 1973, and the Age Discrimination Act of
1975, and will affirmatively further fair
housing.
[(5) Selection criteria.--The Secretary shall, by
regulation, establish selection criteria for a national
competition for assistance under this subsection, which
shall include--
[(A) the qualities or potential capabilities
of the applicant;
[(B) the extent of resident interest and
involvement in the development of a
revitalization program for the project;
[(C) the extent of involvement of local
public and private entities in the development
of a revitalization program for the project and
in the provision of supportive services to
project residents;
[(D) the potential of the applicant for
developing a successful and affordable
revitalization program and the suitability of
the project for such a program;
[(E) national geographic diversity among
housing for which applicants are selected to
receive assistance;
[(F) the extent of the need for and potential
impact of the revitalization program; and
[(G) such other factors that the Secretary
determines are appropriate for purposes of
carrying out the program established by this
section in an effective and efficient manner.
[(6) Notification.--The Secretary shall notify each
applicant, not later than 6 months after the date of
the submission of the application, whether the
application is approved or disapproved.
[(d) Implementation Grants.--
[(1) In general.--The Secretary may make
implementation grants under this subsection to
applicants for the purpose of carrying out
revitalization programs for severely distressed public
housing under this section.
[(2) Eligible activities.--Implementation grants may
be used for activities to carry out revitalization
programs for severely distressed public housing,
including--
[(A) architectural and engineering work;
[(B) the redesign, reconstruction, or
redevelopment of the severely distressed public
housing development, including the site on
which the development is located;
[(C) covering the administrative costs of the
applicant, which may not exceed such portion of
the assistance provided under this subsection
as the Secretary may prescribe;
[(D) any necessary temporary relocation of
tenants during the activity specified under
subparagraph (B);
[(E) payment of legal fees;
[(F) economic development activities that
promote the economic self-sufficiency of
residents under the revitalization program;
[(G) necessary management improvements;
[(H) transitional security activities; and
[(I) any necessary support services, except
that not more than 15 percent of any grant
under this subsection may be used for such
purpose.
[(3) Application.--An application for a
implementation grant shall be submitted by an applicant
in such form and in accordance with such procedures as
the Secretary shall establish. The Secretary shall
require that an application contain at a minimum--
[(A) a request for an implementation grant,
specifying the amount of the grant requested
and its proposed uses;
[(B) a description of the applicant and a
statement of its qualifications;
[(C) identification and description of the
project involved, and a description of the
composition of the tenants, including family
size and income;
[(D) a certification by the public official
responsible for submitting the comprehensive
housing affordability strategy under section
105 of the Cranston-Gonzalez National
Affordable Housing Act that the proposed
activities are consistent with the approved
housing strategy of the State or unit of
general local government within which the
project is located; and
[(E) a certification that the applicant will
comply with the requirements of the Fair
Housing Act, title VI of the Civil Rights Act
of 1964, section 504 of the Rehabilitation Act
of 1973, and the Age Discrimination Act of
1975, and will affirmatively further fair
housing.
[(4) Selection criteria.--The Secretary shall, by
regulation, establish selection criteria for a national
competition for assistance under this subsection, which
shall include--
[(A) the qualities or potential capabilities
of the applicant;
[(B) the extent of resident involvement in
the development of a revitalization program for
the project;
[(C) the extent of involvement of local
public and private entities in the development
of a revitalization program for the project and
in the provision of supportive services to
project residents;
[(D) the potential of the applicant for
developing a successful and affordable
revitalization program and the suitability of
the project for such a program;
[(E) national geographic diversity among
housing for which applicants are selected to
receive assistance;
[(F) the extent of the need for and potential
impact of the revitalization program; and
[(G) such other factors that the Secretary
determines are appropriate for purposes of
carrying out the program established by this
subtitle in an effective and efficient manner.
[(5) Notification.--The Secretary shall notify each
applicant, not later than 6 months after the date of
the submission of the application, whether the
application is approved or disapproved.
[(e) Exception to General Program Requirements.--The
Secretary may waive or revise rules established under this
title governing rents, income eligibility, and other areas of
public housing management, to permit a public housing agency to
undertake measures that enhance the long-term viability of a
severely distressed public housing project revitalized under
this section.
[(f) Other Program Requirements.--
[(1) Cost limitations.--Subject to the provisions of
this section, the Secretary--
[(A) shall establish cost limitations on
eligible activities under this section
sufficient to provide for effective
revitalization programs; and
[(B) may establish other cost limitations on
eligible activities under this section.
[(2) Economic development.--Not more than an
aggregate of $250,000 from amounts made available under
subsections (c) and (d) may be used for economic
development activities under subsections (c) and (d)
for any project, except that the Secretary may for good
cause waive the applicability of this paragraph for a
project.
[(g) Administration.--For the purpose of carrying out the
revitalization of severely distressed public housing in
accordance with this section, the Secretary shall establish
within the Department of Housing and Urban Development an
Office of Severely Distressed Public Housing Revitalization.
[(h) Definitions.--For the purposes of this section:
[(1) Applicant.--The term ``applicant'' means--
[(A) any public housing agency that is not
designated as troubled pursuant to section
6(j)(2);
[(B) any public housing agency or private
housing management agent selected, or receiver
appointed pursuant, to section 6(j)(3);
[(C) any public housing agency that is
designated as troubled pursuant to section
6(j)(2), if such agency acts in concert with a
private nonprofit organization, another public
housing agency that is not designated as a
troubled agency, resident management
corporation or other entity approved by the
Secretary; and
[(D) any public housing agency that is
designated as troubled pursuant to section
6(j)(2) that--
[(i) is so designated principally for
reasons that will not affect the
capacity of the agency to carry out a
revitalization program;
[(ii) is making substantial progress
toward eliminating the deficiencies of
the agency; or
[(iii) is otherwise determined by the
Secretary to be capable of carrying out
a revitalization program.
[(2) Private nonprofit corporation.--The term
``private nonprofit organization'' means any private
nonprofit organization (including a State or locally
chartered nonprofit organization) that--
[(A) is incorporated under State or local
law;
[(B) has no part of its net earnings inuring
to the benefit of any member, founder,
contributor, or individual;
[(C) complies with standards of financial
accountability acceptable to the Secretary; and
[(D) has among its purposes significant
activities related to the provision of decent
housing that is affordable to very low-income
families.
[(3) Public housing agency.--The term ``public
housing agency'' has the meaning given the term in
section 3(b), except that it does not include any
Indian housing authority.
[(4) Resident management corporation.--The term
``resident management corporation'' means a resident
management corporation established in accordance with
the requirements of the Secretary under section 20.
[(5) Severely distressed public housing.--The term
``severely distressed public housing'' means a public
housing project--
[(A) that--
[(i) requires major redesign,
reconstruction or redevelopment, or
partial or total demolition, to correct
serious deficiencies in the original
design (including appropriately high
population density), deferred
maintenance, physical deterioration or
obsolescence of major systems and other
deficiencies in the physical plant of
the project;
[(ii) is occupied predominantly by
families with children who are in a
severe state of distress, characterized
by such factors as high rates of
unemployment, teenage pregnancy,
single-parent households, long-term
dependency on public assistance and
minimal educational achievement;
[(iii) is in a location for recurrent
vandalism and criminal activity
(including drug-related criminal
activity); and
[(iv) cannot remedy the elements of
distress specified in clauses (i)
through (iii) through assistance under
other programs, such as the programs
under section 9 or 14, or through other
administrative means; or
[(B) that--
[(i) is owned by a public housing
agency designated as troubled pursuant
to section 6(j)(2);
[(ii) has a vacancy rate, as
determined by the Secretary, of 50
percent or more, unless the project or
building is vacant because it is
awaiting rehabilitation under a
modernization program under section 14
that--
[(I) has been approved and
funded; and
[(II) as determined by the
Secretary, is on schedule and
is expected to result in full
occupancy of the project or
building upon completion of the
program; and
[(iii) in the case of individual
buildings, the building is, in the
Secretary's determination, sufficiently
separable from the remainder of the
project to make use of the building
feasible for purposes of this subtitle.
[(i) Annual Report.--The Secretary shall submit to the
Congress an annual report setting forth--
[(1) the number, type, and cost of public housing
units revitalized pursuant to this section;
[(2) the status of projects identified as severely
distressed public housing pursuant to subsection (b);
[(3) the amount and type of financial assistance
provided under and in conjunction with this section;
and
[(4) the recommendations of the Secretary for
statutory and regulatory improvements to the program
established by this section.
[SEC. 25. CHOICE IN PUBLIC HOUSING MANAGEMENT.
[(a) Short Title.--This section may be cited as the ``Choice
in Public Housing Management Act of 1992''.
[(b) Funding.--
[(1) Rehabilitation and redevelopment grants.--From
amounts reserved under section 14(k)(2) for each of
fiscal years 1993 and 1994, the Secretary may reserve
not more than $50,000,000 in each such fiscal year for
activities under this section (which may include
funding operating reserves for eligible housing
transferred under this section). The Secretary may make
grants to managers and ownership entities to
rehabilitate eligible housing in accordance with this
section, as appropriate.
[(2) Technical assistance.--The Secretary may use up
to 5 percent of the total amount reserved under
paragraph (1) for any fiscal year to provide, by
contract, technical assistance to residents of public
housing and resident councils to help such residents
and councils make informed choices about options for
alternative management under this section.
[(c) Program Authority.--
[(1) Transfer of management.--
[(A) In general.--The Secretary may approve
not more than 25 applications submitted for
fiscal years 1993 and 1994 by resident councils
for the transfer of the management of
distressed public housing projects, or one or
more buildings within projects, that are owned
or operated by troubled public housing
agencies, from public housing agencies to
alternative managers.
[(B) Required votes.--An application for such
transfer may be submitted and approved only if
a majority of the members of the board of the
resident council has voted in favor of the
proposed transfer of management
responsibilities, and a majority of the
residents has also voted in favor of the
transfer in an election supervised by a
disinterested third party.
[(C) Assistance of management specialist.--
Any resident council seeking to transfer
management of distressed public housing under
this section shall, in cooperation with the
public housing agency for such housing, select
a qualified public housing management
specialist to assist in identifying and
acquiring a capable manager for the housing.
[(2) Rehabilitation and capital improvements.--The
Secretary may make rehabilitation grants and provide
capital improvement funding under subsection (e) in
connection with the transfer of eligible housing to a
manager under this section.
[(d) Operating Subsidies.--
[(1) Authority to provide.--The Secretary may make
operating subsidies under section 9 available to
managers under this section.
[(2) Amount of subsidy.--The Secretary shall
establish the amount of the operating subsidies made
available to a manager based on the share for the
housing under section 9 as determined by the Secretary.
[(3) Effect on pha grant.--Operating subsidies for
any public housing agency transferring management under
this section shall be reduced in accordance with the
requirements of section 9.
[(e) Rehabilitation Grants and Capital Improvement Funding.--
[(1) Rehabilitation grants.--An application under
subsection (f) may request approval of amounts set
aside under subsection (b) for the rehabilitation of
eligible housing. The manager and the Secretary shall
enter into a contract governing the use of any such
assistance provided.
[(2) Annual capital improvement funding.--
[(A) Authority to provide.--The Secretary may
make funding for capital improvements available
annually from amounts under section 14 to
managers of eligible housing. In accordance
with the contract entered into pursuant to
subsection (h), each manager receiving such
funding shall establish a capital improvements
reserve account and deposit in the account each
year an amount not less than the annual amount
of comprehensive grant funds it receives.
Amounts in the reserve account may be used only
for capital improvements and replacements.
[(B) Amount of subsidy.--The Secretary shall
establish the amount made available to a
manager under paragraph (1) for capital
improvements based on the share for the housing
under the comprehensive grant formula and, to
the extent practicable, the public housing
agency's comprehensive grant plan, in
accordance with section 14, as determined by
the Secretary.
[(C) Limitation in the case of recent
rehabilitation.--Where eligible housing has
received rehabilitation funding under paragraph
(1) or has otherwise been comprehensively
modernized within 3 years before the effective
date of the contract between the Secretary and
the manager for management of the eligible
housing, only the accrual portion of the
comprehensive grant formula amount shall be
available for payment to the manager.
[(D) Effect on pha grant.--The formula amount
of a comprehensive grant for a public housing
agency transferring the housing under this
section shall be reduced in accordance with the
requirements of section 14.
[(3) Relationship to section 14.--The provisions of
section 14 shall apply with respect to rehabilitation
grants under paragraph (1) or capital improvement
funding under paragraph (2); except that the Secretary
may waive the applicability of any of the provisions of
such section where such provisions are not appropriate
to the assistance under this subsection.
[(f) Application.--
[(1) Form and procedures.--
[(A) In general.--To be eligible for approval
for transfer of management from a public
housing agency to a manager and for a grant
under subsection (e), a resident council shall
submit an application to the Secretary in such
form and in accordance with such procedures as
the Secretary shall establish.
[(B) PHA comment on application.--A resident
council submitting an application shall provide
the public housing agency that owns or operates
the housing involved a reasonable opportunity
to comment on the application, as the Secretary
shall prescribe.
[(C) PHA proposal.--The public housing agency
may present to the resident council a proposal
for the continued management of the housing by
the agency, and the resident council shall give
reasonable consideration to any such proposal.
[(2) Minimum requirements.--The Secretary shall
require that an application contain--
[(A) a description of the resident council
and documentation of its authority;
[(B) documentation of the votes required
under subsection (c)(1)(B);
[(C) a description of the proposed manager
selected by the applicant (in accordance with
procedures established or approved by the
Secretary) and documentation of its capacity to
manage the eligible housing;
[(D) a plan for carrying out the manager's
responsibilities for managing the eligible
housing;
[(E) documentation that the project (or
building or buildings) for which management
transfer is proposed is eligible housing;
[(F) documentation that each of the
requirements under paragraph (1)(B) have been
fulfilled;
[(G)(i) if the application includes a request
for a rehabilitation grant under subsection (e)
(which shall be included in any application
involving eligible housing that is 50 percent
or more vacant), the basis for the estimate of
the amount requested, including--
[(I) the estimate of the eligible
housing's need under the public housing
agency's comprehensive plan (under
section 14(e)(1)); and
[(II) an explanation, where
appropriate, if an amount higher than
the amount planned by the agency is
being requested; or
[(ii) if the application does not include a
request for a rehabilitation grant under
subsection (e), a demonstration that needs for
capital improvements and replacement for the
housing can reasonably be expected to be funded
from funding for capital improvements under
subsection (e);
[(H) if the manager proposes to administer a
program to enable residents to achieve economic
independence and self-sufficiency, a
description of the program and evidence of
commitment of resources to the program;
[(I) an analysis showing that the planned
rehabilitation will result in the long-term
viability of the housing at a reasonable cost;
[(J) a certification that the manager will
comply with the requirements of the Fair
Housing Act, title VI of the Civil Rights Act
of 1964, section 504 of the Rehabilitation Act
of 1973, and the Age Discrimination Act of
1975, and will affirmatively further fair
housing; and
[(K) such other information that the
Secretary considers appropriate.
[(g) Review and Approval by the Secretary.--
[(1) Applications not requesting rehabilitation
assistance.--In the case of applications for the
transfer of management of public housing that do not
include a request for rehabilitation assistance under
subsection (e), the Secretary may approve an
application that meets the requirements of subsection
(f)(2) and this section.
[(2) Applications requesting rehabilitation grants.--
In the case of applications that include a request for
rehabilitation assistance under subsection (e), the
Secretary shall select applicants for approval based on
a national competition. The Secretary shall, by
regulation, establish selection criteria for the
competition which provide for separate rating of
applicants under this paragraph and of applicants under
this section, and for selections from a single list of
all applicants. The criteria shall include--
[(A) the quality of the plan for
rehabilitating the eligible housing;
[(B) the extent of the capacity or potential
capacity of the proposed manager to manage the
housing and to carry out the rehabilitation
program;
[(C) the extent to which a program is
proposed to enable residents to achieve
economic independence and self-sufficiency;
[(D) the extent to which the planned
rehabilitation will result in the long-term
viability of the housing at a reasonable cost;
and
[(E) such other criteria as the Secretary may
require.
[(h) Contract Between Secretary and Manager.--
[(1) Terms.--After the Secretary approves an
application, the Secretary shall enter into a contract
with the manager for transfer of management of the
eligible housing. In addition to other contract
provisions required under this section, the contract
shall--
[(A) give the manager the right to receive
operating subsidies under subsection (d) and
capital improvement funding under subsection
(e);
[(B) require the manager to carry out all
management responsibilities for the eligible
housing, as provided in or required by the
contract;
[(C) require the manager to carry out, for
the eligible housing, all management
responsibilities applicable to public housing
agencies owning or operating public housing
projects, including (i) maintaining the units
in decent, safe, and sanitary condition in
accordance with any standards for public
housing established or adopted by the
Secretary, (ii) determining eligibility of
applicants for occupancy of units subject to
the requirements of this Act, (iii) terminating
tenancy in accordance with the procedures
applicable to the section 8 new construction
program, and (iv) determining the amount of
rent paid for units in accordance with this
Act; and
[(D) permit, but not require, the manager to
select applicants from the public housing
waiting list maintained by the public housing
agency.
[(2) Extension, expiration, and termination.--
[(A) In general.--The Secretary shall provide
for a resident council that has entered into a
contract under this subsection to--
[(i) approve the renewal of the
contract between the Secretary and the
manager; or
[(ii) disapprove renewal and submit
an application to the Secretary, in
accordance with subsection (f),
proposing another manager, which may be
the public housing agency.
[(B) Default.--If the Secretary determines
that a manager is in default of its
responsibilities under the contract, the
Secretary may require the resident council to
submit another application proposing a
different manager, which may be the public
housing agency.
[(i) Other Program Requirements.--
[(1) Cost limitations.--The Secretary may establish
cost limitations on activities under this section. The
amount of rehabilitation funds under subsection (e)(1)
that may be approved may not exceed the per unit cost
limit applicable to the comprehensive grant program
under section 14.
[(2) Demolition and disposition not permitted.--A
manager may not demolish or dispose of eligible housing
under this section.
[(3) Capability of resident management
corporations.--To be eligible to become a manager under
this section, a resident management corporation--
[(A) shall demonstrate to the Secretary its
ability to manage public housing effectively
and efficiently, as determined by the
Secretary, which shall include evidence of its
most recent financial audit; or
[(B) shall arrange for operation of the
housing by a qualified management entity.
[(4) Limitations on pha liability.--A public housing
agency shall not be liable for any act or failure to
act by the manager or resident council.
[(5) Bonding and insurance.--Before assuming any
management responsibility for eligible housing, a
manager shall obtain fidelity bonding and insurance, or
equivalent protection, in accordance with regulations
and requirements established by the Secretary. Such
bonding and insurance, or its equivalent, shall be
adequate to protect the Secretary and the public
housing agency against loss, theft, embezzlement, or
fraudulent acts on the part of the manager or its
employees.
[(6) Restriction on displacement before transfer.--A
public housing agency may not involuntarily displace,
as determined by the Secretary, any resident of
eligible housing during the period beginning on the
date that an application under subsection (f) is
submitted by a resident council, and ending upon
transfer of management of the housing or, if the
application is disapproved, the date of the
disapproval.
[(j) Performance Review and Compliance.--
[(1) Monitoring.--The Secretary shall monitor the
performance of managers under this section and shall
assess their management performance using the
performance indicators established under section
6(j)(1).
[(2) Records, reports, and audits of managers.--
[(A) Keeping of records.--Each manager and
resident council under this subtitle shall keep
such records as may be reasonably necessary to
disclose the amount and the disposition by the
manager of the proceeds of assistance received
under this section and to ensure compliance
with the requirements of this section.
[(B) Access to documents.--
[(i) Secretary.--The Secretary shall
have access for the purpose of audit
and examination to any books,
documents, papers, and records of a
manager, resident council, and public
housing agency that are pertinent to
assistance received under, and to the
requirements of, this section.
[(ii) GAO.--The Comptroller General
of the United States, and any duly
authorized representatives of the
Comptroller General, shall have access
for the purpose of audit and
examination to any books, documents,
papers, and records of a manager and
resident council that are pertinent to
assistance received under, and to the
requirements of, this section.
[(C) Reporting requirements.--Each manager
shall submit to the Secretary such reports as
the Secretary determines appropriate to carry
out the Secretary's responsibilities under this
section, including an annual financial audit.
[(D) Annual report.--The Secretary shall
submit an annual report to the Congress
evaluating management transfers under this
section compared to other methods of dealing
with severely distressed public housing.
[(k) Nondiscrimination.--No person in the United States
shall, on the grounds of race, color, national origin,
religion, or sex, be excluded from participation in, be denied
the benefits of, or be subjected to discrimination under, any
program or activity funded in whole or in part with funds made
available under this section. Any prohibition against
discrimination on the basis of age under the Age Discrimination
Act of 1975 or with respect to an otherwise qualified
handicapped individual as provided in section 504 of the
Rehabilitation Act of 1973 shall also apply to any such program
or activity.
[(l) Relationship to Other Programs.--
[(1) Homeownership.--After a transfer of management
in accordance with this section, the eligible housing
shall remain eligible for assistance under title III
and for sale under section 5(h). Participation in a
homeownership program shall be consistent with a
contract between the Secretary and a manager.
[(2) Self-sufficiency.--Where an application under
subsection (f) proposes a program to enable residents
to achieve economic independence and self-sufficiency,
consistent with the objectives of the program under
section 23, and demonstrates that the manager has the
capacity to carry out a self-sufficiency program, the
Secretary may approve such a program. Where such a
program is approved, the Secretary shall authorize the
manager to adopt policies consistent with section 23(d)
(relating to maximum rents and escrow savings accounts)
and section 23(e) (relating to effect of increases in
family income).
[(m) Definitions.--For purposes of this section:
[(1) The term ``eligible housing'' means a public
housing project, or one or more buildings within a
project, that--
[(A) is owned or operated by a troubled
public housing agency; and
[(B) has been identified as severely
distressed under section 24 of this Act.
In the case of an individual building, the building
shall, in the determination of the Secretary, be
sufficiently separable from the remainder of the
project to make use of the building feasible for
purposes of this section.
[(2) The term ``manager'' means one of the following
entities that has entered into a contract with the
Secretary for the management of eligible housing under
this section:
[(A) A public or private nonprofit
organization (including, as determined by the
Secretary, such an organization sponsored by
the public housing agency).
[(B) A for-profit entity, if it has (i)
demonstrated experience in providing low-income
housing, and (ii) is participating in joint
venture with an organization described in
paragraph (3).
[(C) A State or local government, including
an agency or instrumentality thereof.
[(D) A public housing agency (other than the
public housing agency that owns the project).
The term does not include a resident council.
[(3) The term ``private nonprofit organization''
means any private nonprofit organization (including a
State or locally chartered nonprofit organization)
that--
[(A) is incorporated under State or local
law;
[(B) has no part of its net earnings inuring
to the benefit of any member, founder,
contributor, or individual;
[(C) complies with standards of financial
accountability acceptable to the Secretary; and
[(D) has among its purposes significant
activities related to the provision of decent
housing that is affordable to low-income
families.
The term includes resident management corporations.
[(4) The term ``public housing agency'' has the
meaning given such term in section 3(b), except that it
does not include Indian housing authorities.
[(5) The term ``public nonprofit organization'' means
any public nonprofit entity, except the public housing
agency that owns the eligible housing.
[(6) The term ``resident council'' means any
nonprofit organization or association that--
[(A) is representative of the residents of
the eligible housing;
[(B) adopts written procedures providing for
the election of officers on a regular basis;
and
[(C) has a democratically elected governing
board, elected by the residents of the eligible
housing.
[(7) The term ``resident management corporation''
means a resident management corporation established in
accordance with the requirements of the Secretary under
section 20.
[(8) The term ``troubled public housing agency''
means a public housing agency with 250 or more units
that--
[(A) has been designated as a troubled public
housing agency for the current Federal fiscal
year, and for the 2 preceding Federal fiscal
years--
[(i) under section 6(j)(2)(A)(i); or
[(ii) before the implementation of
such authority, under any other
procedure for designating troubled
public housing agencies that was used
by the Secretary and is determined by
the Secretary to be appropriate for
purposes of this section; and
[(B) has not met targets for improved
performance under section 6(j)(2)(C).
[SEC. 26. ENVIRONMENTAL REVIEWS.
[(a) In General.--
[(1) Release of funds.--In order to assure that the
policies of the National Environmental Policy Act of
1969 and other provisions of law which further the
purposes of such Act (as specified in regulations
issued by the Secretary) are most effectively
implemented in connection with the expenditure of funds
under this title, and to assure to the public
undiminished protection of the environment, the
Secretary may, under such regulations, in lieu of the
environmental protection procedures otherwise
applicable, provide for the release of funds for
projects or activities under this title, as specified
by the Secretary upon the request of a public housing
agency (including an Indian housing authority) under
this section, if the State or unit of general local
government, as designated by the Secretary in
accordance with regulations, assumes all of the
responsibilities for environmental review,
decisionmaking, and action pursuant to such Act, and
such other provisions of law as the regulations of the
Secretary may specify, which would otherwise apply to
the Secretary with respect to the release of funds.
[(2) Implementation.--The Secretary, after
consultation with the Council on Environmental Quality,
shall issue such regulations as may be necessary to
carry out this section. Such regulations shall specify
the programs to be covered.
[(b) Procedure.--The Secretary shall approve the release of
funds subject to the procedures authorized by this section only
if, not less than 15 days prior to such approval and prior to
any commitment of funds to such projects or activities, the
public housing agency (including an Indian housing authority)
has submitted to the Secretary a request for such release
accompanied by a certification of the State or unit of general
local government which meets the requirements of subsection
(c). The Secretary's approval of any such certification shall
be deemed to satisfy the Secretary's responsibilities under the
National Environmental Policy Act of 1969 and such other
provisions of law as the regulations of the Secretary specify
insofar as those responsibilities relate to the release of
funds which are covered by such certification.
[(c) Certification.--A certification under the procedures
authorized by this section shall--
[(1) be in a form acceptable to the Secretary;
[(2) be executed by the chief executive officer or
other officer of the State or unit of general local
government who qualifies under regulations of the
Secretary;
[(3) specify that the State or unit of general local
government under this section has fully carried out its
responsibilities as described under subsection (a); and
[(4) specify that the certifying officer--
[(A) consents to assume the status of a
responsible Federal official under the National
Environmental Policy Act of 1969 and each
provision of law specified in regulations
issued by the Secretary insofar as the
provisions of such Act or other such provision
of law apply pursuant to subsection (a); and
[(B) is authorized and consents on behalf of
the State or unit of general local government
and himself or herself to accept the
jurisdiction of the Federal courts for the
purpose of enforcement of his or her
responsibilities as such an official.
[(d) Approval by States.--In cases in which a unit of general
local government carries out the responsibilities described in
subsection (c), the Secretary may permit the State to perform
those actions of the Secretary described in subsection (b) and
the performance of such actions by the State, where permitted
by the Secretary, shall be deemed to satisfy the Secretary's
responsibilities referred to in the second sentence of
subsection (b).
[SEC. 27. PROVISION OF INFORMATION TO LAW ENFORCEMENT AND OTHER
AGENCIES.
[Notwithstanding any other provision of law, the Secretary
shall, at least 4 times annually and upon request of the
Immigration and Naturalization Service (hereafter in this
section referred to as the ``Service''), furnish the Service
with the name and address of, and other identifying information
on, any individual who the Secretary knows is unlawfully in the
United States, and shall ensure that each contract for
assistance entered into under section 6 or 8 of this Act with a
public housing agency provides that the public housing agency
shall furnish such information at such times with respect to
any individual who the public housing agency knows is
unlawfully in the United States.
[SEC. 27. EXCHANGE OF INFORMATION WITH LAW ENFORCEMENT AGENCIES.
[Notwithstanding any other provision of law, each public
housing agency that enters into a contract for assistance under
section 6 or 8 of this Act with the Secretary shall furnish any
Federal, State, or local law enforcement officer, upon the
request of the officer, with the current address, Social
Security number, and photograph (if applicable) of any
recipient of assistance under this Act, if the officer--
[(1) furnishes the public housing agency with the
name of the recipient; and
[(2) notifies the agency that--
[(A) such recipient--
[(i) is fleeing to avoid prosecution,
or custody or confinement after
conviction, under the laws of the place
from which the individual flees, for a
crime, or attempt to commit a crime,
which is a felony under the laws of the
place from which the individual flees,
or which, in the case of the State of
New Jersey, is a high misdemeanor under
the laws of such State; or
[(ii) is violating a condition of
probation or parole imposed under
Federal or State law; or
[(iii) has information that is
necessary for the officer to conduct
the officer's official duties;
[(B) the location or apprehension of the
recipient is within such officer's official
duties; and
[(C) the request is made in the proper
exercise of the officer's official duties.
[TITLE II--ASSISTED HOUSING FOR INDIANS AND ALASKA NATIVES
[SEC. 201. ESTABLISHMENT OF SEPARATE PROGRAM OF ASSISTED HOUSING FOR
INDIANS AND ALASKA NATIVES.01
[(a) General Authority.--The Secretary shall carry out
programs to provide low-income housing on Indian reservations
and other Indian areas in accordance with the provisions of
this title.
[(b) Applicability of Title I.--
[(1) In general.--Except as otherwise provided in
this title, the provisions of title I shall apply to
low-income housing developed or operated pursuant to a
contract between the Secretary and an Indian housing
authority.
[(2) Public housing.--No provision of title I (or of
any other law specifically modifying the public housing
program under title I) that is enacted after the date
of the enactment of the Indian Housing Act of 1988
shall apply to public housing developed or operated
pursuant to a contract between the Secretary and an
Indian housing authority, unless the provision
explicitly provides for such applicability.
[(c) Inapplicability of Certain Requirements.--Lower income
housing developed or operated pursuant to a contract between
the Secretary and an Indian housing authority shall not be
subject to section 227 of the Housing and Urban-Rural Recovery
Act of 1983 (relating to pet ownership in assisted housing for
the elderly or handicapped) or section 6(h) of the United
States Housing Act of 1937 (relating to a limitation on
contracts involving new construction).
[SEC. 202. MUTUAL HELP HOMEOWNERSHIP OPPORTUNITY PROGRAM.
[(a) Establishment.--The Secretary shall carry out a mutual
help homeownership opportunity program for Indian families in
accordance with this section. The program shall be designed to
meet the homeownership needs of Indian families on Indian
reservations and other Indian areas, including Indian families
whose incomes exceed the levels established for low-income
families.
[(b) Financial Assistance.--
[(1) In general.--The Secretary may, to the extent
provided in appropriation Acts, enter into contracts
with Indian housing authorities under title I to
provide financial assistance for the development,
acquisition, operation, and improvement of housing
projects under this section.
[(2) Eligibility for ciap.--Notwithstanding the
provisions of section 14(c), the Secretary may provide
assistance provided for comprehensive modernization
under section 14 for the housing projects under this
section for the purposes under section 14. Any
assistance shall be provided under this paragraph only
in the form of a grant for each housing project (or
unit within a project) selected for such assistance.
[(c) Eligible Projects.--
[(1) Project types.--Projects for which assistance
may be provided under this section may include single-
family detached dwellings and other single-family
dwellings (including row houses).
[(2) Forms of ownership.--In addition to fee simple
ownership and other forms of ownership, the Secretary
may permit and facilitate cooperative ownership for any
project assisted under this section, if the Indian
housing authority requests cooperative ownership and
the Secretary determines such ownership to be
appropriate for the project.
[(3) Property standards.--Property standards for
projects assisted under this section shall be
established by regulation, in accordance with section
205. The standards shall--
[(A) provide sufficient flexibility to permit
the use of different designs and materials; and
[(B) include cost-effective energy
conservation performance standards designed to
ensure the lowest total construction and
operating costs.
[(d) Eligible Families.--
[(1) In general.--Except as provided in paragraph
(2), assistance under this section shall be limited to
Indian low-income families on Indian reservations and
other Indian areas.
[(2) Exception.--
[(A) Demonstrated need.--An Indian housing
authority may provide assistance under this
section to families on Indian reservations and
other Indian areas whose incomes exceed the
levels established for low-income families, if
the Indian housing authority demonstrates to
the satisfaction of the Secretary that there is
a need for housing for such families that
cannot reasonably be met without such
assistance. An Indian housing authority may
provide assistance under this section to any
non-Indian family on an Indian reservation or
other Indian area if the Indian housing
authority determines that the presence of the
family on the Indian reservation or other
Indian area is essential to the well-being of
Indian families and the need for housing for
the family cannot reasonably be met without
such assistance.
[(B) Limitation on number of units.--The
number of dwelling units in any project
assisted under this section that may be
occupied by or reserved for families on Indian
reservations and other Indian areas whose
incomes exceed the levels established for low-
income families may not exceed whichever of the
following is higher:
[(i) 10 percent.--10 percent of the
dwelling units in the project.
[(ii) 5 units.--5 dwelling units.
[(e) Mutual Help and Occupancy Agreement.--Each Indian
housing authority operating a program under this section shall
require each family selected for housing under this section to
enter into a mutual help and occupancy agreement. The agreement
shall provide the following:
[(1) Family contribution.--
[(A) General requirement.--The family shall
agree to contribute toward the development cost
of a project in the form of land, labor, cash,
or materials or equipment. The value of the
contribution of each family shall not be less
than $1,500.
[(B) Contribution by indian tribe.--
Contributions other than labor may be made by
an Indian tribe on behalf of a family.
[(2) Monthly payment.--
[(A) Calculation.--The family shall agree to
make a monthly payment to the Indian housing
authority that is equal to whichever of the
following is higher:
[(i) Percentage of adjusted income.--
An amount computed by--
[(I) multiplying the monthly
adjusted income of the family
by a percentage that is not
less than 15 percent and not
more than 30 percent, as
determined by the Indian
housing authority to be
appropriate; and
[(II) subtracting the
estimated monthly payments of
the family for the reasonable
use of utilities (excluding
telephone service).
[(ii) Administration charge.--The
amount budgeted by the Indian housing
authority for monthly operating
expenses on the dwelling of the family,
excluding any operating cost for which
operating assistance is provided by the
Secretary under section 9.
[(B) Other applicable law.--Monthly payments
under this section shall be subject to section
203 of the Housing and Community Development
Act of 1974.
[(3) Maintenance and utilities.--The family shall be
responsible for the maintenance and monthly utility
expenses of the dwelling. The Indian housing authority
shall have in effect procedures determined by the
Secretary to be sufficient for ensuring the timely
periodic maintenance of the dwelling by the family.
[(4) Homeownership opportunities.--The Indian housing
authority shall afford the family an opportunity to
purchase the dwelling under a lease-purchase, mortgage,
or loan agreement with the Indian housing authority or
any other qualified entity, if the Indian housing
authority determines (in accordance with objective
standards and procedures established by the Secretary
after consultation with Indian housing authorities)
that the family is able to meet the obligations of
homeownership.
[(f) Self-Help Housing Program.--
[(1) Establishment.--The Secretary shall establish a
self-help housing program for projects assisted under
this section.
[(2) Requirements.--In the case of any project
approved by the Secretary for participation in the
self-help housing program--
[(A) each family shall make a contribution
under subsection (e)(1) in the form of labor in
accordance with labor contribution requirements
similar to the requirements applicable under
the mutual self-help housing program
established in section 523 of the Housing Act
of 1949; and
[(B) the Secretary shall provide each family
with technical and supervisory assistance
similar to the assistance available under the
mutual self-help housing program established in
section 523 of the Housing Act of 1949.
[(3) Applications.--Any Indian housing authority may
submit an application to the Secretary for inclusion of
a project assisted under this section in the self-help
housing program.
[SEC. 203. ADDITIONAL PROVISIONS.
[(a) Public Housing Maximum Contributions.--In determining
the maximum contributions that may be made by the Secretary to
an Indian housing authority for development of a public housing
project (including a mutual help homeownership opportunity
project under this title), the Secretary shall consider all
relevant factors, including--
[(1) the logistical problems associated with projects
of remote location, low density, or scattered sites;
and
[(2) the availability of skilled labor and acceptable
materials.
[(b) Related Facilities and Services.--The Secretary shall
take such actions as may be necessary to ensure the timely and
efficient provision, through the Interdepartmental Agreement on
Indian Housing, of any roads, water supply and sewage
facilities, and electrical and fuel distribution systems that
are required for completion and occupancy of public housing
projects assisted under this title (including mutual help
homeownership opportunity projects). Notwithstanding any other
provision of this Act, the Secretary shall make annual payments
from funds appropriated under section 9(c) to municipalities
providing such roads, facilities, and systems in a amount equal
to--
[(1) 10 percent of the applicable shelter rent, minus
the utility allowance; or
[(2) $150,
whichever is greater, for each rental housing unit covered by
this subsection.
[(c) Accessibility to Physically Handicapped Persons.--The
Secretary shall, in accordance with Public Law 90-480 (42
U.S.C. 4151 et seq.; commonly known as the Architectural
Barriers Act of 1968) and other applicable law, require each
Indian housing authority to give proper consideration to the
needs of physically handicapped persons for ready access to,
and use of, low-income housing assisted under this title.
[SEC. 204. ANNUAL REPORT.
[The Secretary shall include in the annual report under
section 8 of the Department of Housing and Urban Development
Act--
[(1) a description of the actions taken to carry out
the provisions of the Housing and Community Development
Act of 1987 that relate to Indian housing;
[(2) an evaluation of the status of the program of
single-family mortgage insurance for Indians and Alaska
Natives under section 248 of the National Housing Act;
[(3) an assessment of the housing needs of native
Hawaiians and an evaluation of current Federal programs
designed to meet the needs, including programs of
housing assistance for low-income families and the
program of single-family mortgage insurance for native
Hawaiians under section 247 of the National Housing
Act;
[(4) recommendations for resolving concerns relating
to Indian housing authorities that are authorized to
serve both Indians and non-Indians; and
[(5) a description of actions taken to ensure the
timely and efficient provision, through the
Interdepartmental Agreement on Indian Housing, of any
roads, water supply and sewage facilities, and
electrical and fuel distribution systems that are
required for completion and occupancy of public housing
projects assisted under this title (including mutual
help homeownership opportunity projects).
[SEC. 205. REGULATIONS.
[(a) Issuance.--The Secretary shall issue regulations to
carry out this title and the amendments made by the Indian
Housing Act of 1988. The regulations shall be issued in
accordance with subsections (b) through (e) of section 553 of
title 5, United States Code.
[(b) Consultation With Indian Housing Authorities.--In
formulating proposed regulations under this section, the
Secretary shall consult with Indian housing authorities.
[(c) Effective Date.--The Secretary shall issue regulations
under this section to become effective before the expiration of
the 90-day period beginning on the date of the enactment of the
Indian Housing Act of 1988.
[TITLE III--HOPE FOR PUBLIC AND INDIAN HOUSING HOMEOWNERSHIP
[SEC. 301. PROGRAM AUTHORITY.
[(a) In General.--The Secretary is authorized to make--
[(1) planning grants to help applicants to develop
homeownership programs in accordance with this title;
and
[(2) implementation grants to carry out homeownership
programs in accordance with this title.
[(b) Authority To Reserve Housing Assistance.--In connection
with a grant under this title, the Secretary may reserve
authority to provide assistance under section 8 of this Act to
the extent necessary to provide replacement housing and rental
assistance for a nonpurchasing tenant who resides in the
project on the date the Secretary approves the application for
an implementation grant, for use by the tenant in another
project.
[SEC. 302. PLANNING GRANTS.
[(a) Grants.--The Secretary is authorized to make planning
grants to applicants for the purpose of developing
homeownership programs under this title. The amount of a
planning grant under this section may not exceed $200,000,
except that the Secretary may for good cause approve a grant in
a higher amount.
[(b) Eligible Activities.--Planning grants may be used for
activities to develop homeownership programs (which may include
programs for cooperative ownership), including--
[(1) development of resident management corporations
and resident councils;
[(2) training and technical assistance for applicants
related to development of a specific homeownership
program;
[(3) studies of the feasibility of a homeownership
program;
[(4) inspection for lead-based paint hazards, as
required by section 302(a) of the Lead-Based Paint
Poisoning Prevention Act;
[(5) preliminary architectural and engineering work;
[(6) tenant and homebuyer counseling and training;
[(7) planning for economic development, job training,
and self-sufficiency activities that promote economic
self-sufficiency of homebuyers and homeowners under the
homeownership program;
[(8) development of security plans; and
[(9) preparation of an application for an
implementation grant under this title.
[(c) Application.--
[(1) Form and procedures.--An application for a
planning grant shall be submitted by an applicant in
such form and in accordance with such procedures as
the Secretary shall establish.
[(2) Minimum requirements.--The Secretary shall
require that an application contain at a minimum--
[(A) a request for a planning grant,
specifying the activities proposed to be
carried out, the schedule for completing the
activities, the personnel necessary to complete
the activities, and the amount of the grant
requested;
[(B) a description of the applicant and a
statement of its qualifications;
[(C) identification and description of the
public housing project or projects involved,
and a description of the composition of the
tenants, including family size and income;
[(D) a certification by the public official
responsible for submitting the comprehensive
housing affordability strategy under section
105 of the Cranston-Gonzalez National
Affordable Housing Act that the proposed
activities are consistent with the approved
housing strategy of the State or unit of
general local government within which the
project is located (or, during the first 12
months after enactment of the Cranston-Gonzalez
National Affordable Housing Act, that the
application is consistent with such other
existing State or local housing plan or
strategy that the Secretary shall determine to
be appropriate); and
[(E) a certification that the applicant will
comply with the requirements of the Fair
Housing Act, title VI of the Civil Rights Act
of 1964, section 504 of the Rehabilitation Act
of 1973, and the Age Discrimination Act of
1975, and will affirmatively further fair
housing.
[(d) Selection Criteria.--The Secretary shall, by regulation,
establish selection criteria for a national competition for
assistance under this section, which shall include--
[(1) the qualifications or potential
capabilities of the applicant;
[(2) the extent of tenant interest in the development
of a homeownership program for the project;
[(3) the potential of the applicant for developing a
successful and affordable homeownership program and the
suitability of the project for homeownership;
[(4) national geographic diversity among projects for
which applicants are selected to receive assistance;
and
[(5) such other factors that the Secretary shall
require that (in the determination of the Secretary)
are appropriate for purposes of carrying out the
program established by this title in an effective and
efficient manner.
[SEC. 303. IMPLEMENTATION GRANTS.
[(a) Grants.--The Secretary is authorized to make
implementation grants to applicants for the purpose of carrying
out homeownership programs approved under this title.
[(b) Eligible Activities.--Implementation grants may be used
for activities to carry out homeownership programs (including
programs for cooperative ownership) that meet the requirements
under this subtitle, including the following activities:
[(1) Architectural and engineering work.
[(2) Implementation of the homeownership program,
including acquisition of the public housing project
from a public housing agency for the purpose of
transferring ownership to eligible families in
accordance with a homeownership program that meets the
requirements under this title.
[(3) Rehabilitation of any public housing project
covered by the homeownership program, in accordance
with standards established by the Secretary.
[(4) Abatement of lead-based paint hazards, as
required by section 302(a) of the Lead-Based Paint
Poisoning Prevention Act.
[(5) Administrative costs of the applicant, which may
not exceed 15 percent of the amount of assistance
provided under this section.
[(6) Development of resident management corporations
and resident management councils, but only if the
applicant has not received assistance under section 302
for such activities.
[(7) Counseling and training of homebuyers and
homeowners under the homeownership program.
[(8) Relocation of tenants who elect to move.
[(9) Any necessary temporary relocation of tenants
during rehabilitation.
[(10) Funding of operating expenses and replacement
reserves of the project covered by the homeownership
program, except that the amount of assistance for
operating expenses shall not exceed the amount the
project would have received if it had continued to
receive such assistance under section 9, with
adjustments comparable to those that would have been
made under section 9.
[(11) Implementation of a replacement housing plan.
[(12) Legal fees.
[(13) Defraying costs for the ongoing training needs
of the recipient that are related to developing and
carrying out the homeownership program.
[(14) Economic development activities that promote
economic self-sufficiency of homebuyers, residents, and
homeowners under the homeownership program.
[(c) Matching Funding.--
[(1) In general.--Each recipient shall assure that
contributions equal to not less than 25 percent of the
grant amount made available under this section,
excluding any amounts provided for post-sale operating
expenses and replacement housing, shall be provided
from non-Federal sources to carry out the homeownership
program.
[(2) Form.--Such contributions may be in the form
of--
[(A) cash contributions from non-Federal
resources, which may not include Federal tax
expenditures or funds from a grant made under
section 106(b) or section 106(d) of the Housing
and Community Development Act of 1974;
[(B) payment of administrative expenses, as
defined by the Secretary, from non-Federal
resources, including funds from a grant made
under section 106(b) or section 106(d) of the
Housing and Community Development Act of 1974;
[(C) the value of taxes, fees, or other
charges that are normally and customarily
imposed but are waived, foregone, or deferred
in a manner that facilitates the implementation
of a homeownership program assisted under this
subtitle;
[(D) the value of land or other real property
as appraised according to procedures acceptable
to the Secretary;
[(E) the value of investment in on-site and
off-site infrastructure required for a
homeownership program assisted under this
subtitle; or
[(F) such other in-kind contributions as the
Secretary may approve.
Contributions for administrative expenses shall be
recognized only up to an amount equal to 7 percent of
the total amount of grants made available under this
section.
[(3) Reduction of requirement.--The Secretary shall
reduce the matching requirement for homeownership
programs carried out under this section in accordance
with the formula established under section 220(d) of
the Cranston-Gonzalez National Affordable Housing Act.
[(d) Application.--
[(1) Form and procedure.--An application for an
implementation grant shall be submitted by an applicant
in such form and in accordance with such procedures as
the Secretary shall establish.
[(2) Minimum requirements.--The Secretary shall
require that an application contain at a minimum--
[(A) a request for an implementation grant,
specifying the amount of the grant requested
and its proposed uses;
[(B) if applicable, an application for
assistance under section 8 of this Act, which
shall specify the proposed uses of such
assistance and the period during which the
assistance will be needed;
[(C) a description of the qualifications and
experience of the applicant in providing
housing for low-income families;
[(D) a description of the proposed
homeownership program, consistent with section
304 and the other requirements of this title,
which shall specify the activities proposed to
be carried out and their estimated costs,
identifying reasonable schedules for carrying
it out, and demonstrating that the program will
comply with the affordability requirements
under section 304(b);
[(E) identification and description of the
public housing project or projects involved,
and a description of the composition of the
tenants, including family size and income;
[(F) a description of and commitment for the
resources that are expected to be made
available to provide the matching funding
required under subsection (c) and of other
resources that are expected to be made
available in support of the homeownership
program;
[(G) identification and description of the
financing proposed for any (i) rehabilitation
and (ii) acquisition (I) of the property, where
applicable, by a resident council or other
entity for transfer to eligible families, and
(II) by eligible families of ownership
interests in, or shares representing, units in
the project;
[(H) if the applicant is not a public housing
agency, the proposed sales price, if any, the
basis for such price determination, and terms
to the applicant;
[(I) the estimated sales prices, if any, and
terms to eligible families;
[(J) any proposed restrictions on the resale
of units under a homeownership program;
[(K) identification and description of the
entity that will operate and manage the
property;
[(L) a certification by the public official
responsible for submitting the comprehensive
housing affordability strategy under section
105 of the Cranston-Gonzalez National
Affordable Housing Act that the proposed
activities are consistent with the approved
housing strategy of the State or unit of
general local government within which the
project is located (or, during the first 12
months after enactment of the Cranston-Gonzalez
National Affordable Housing Act, that the
application is consistent with such other
existing State or local housing plan or
strategy that the Secretary shall determine to
be appropriate); and
[(M) a certification that the applicant will
comply with the requirements of the Fair
Housing Act, title VI of the Civil Rights Act
of 1964, section 504 of the Rehabilitation Act
of 1973, and the Age Discrimination Act of
1975, and will affirmatively further fair
housing.
[(e) Selection Criteria.--The Secretary shall establish
selection criteria for a national competition for assistance
under this section, which shall include--
[(1) the ability of the applicant to develop and
carry out the proposed homeownership program, taking
into account the quality of any related ongoing program
of the applicant, and the extent of tenant interest in
the development of a homeownership program and
community support;
[(2) the feasibility of the homeownership program;
[(3) the extent to which current tenants and other
eligible families will be able to afford the purchase;
[(4) the quality and viability of the proposed
homeownership program, including the viability of the
economic self-sufficiency plan;
[(5) the extent to which funds for activities that do
not qualify as eligible activities will be provided in
support of the homeownership program;
[(6) whether the approved comprehensive housing
affordability strategy for the jurisdiction within
which the public housing project is located includes
the proposed homeownership program as one of the
general priorities identified pursuant to section
105(b)(7) of the Cranston-Gonzalez National Affordable
Housing Act;
[(7) national geographic diversity among housing for
which applicants are selected to receive assistance;
and
[(8) the extent to which a sufficient supply of
affordable rental housing exists in the locality, so
that the implementation of the homeownership program
will not reduce the number of such rental units
available to residents currently residing in such units
or eligible for residency in such units.
[(f) Location Within Participating Jurisdictions.--The
Secretary may approve applications for grants under this
title only for public housing projects located within the
boundaries of jurisdictions--
[(1) which are participating jurisdictions under
title III of the Cranston-Gonzalez National Affordable
Housing Act; or
[(2) on behalf of which the agency responsible for
affordable housing has submitted a housing strategy or
plan.
[(g) Approval.--The Secretary shall notify each applicant,
not later than 6 months after the date of the submission of the
application, whether the application is approved or not
approved. The Secretary may approve the application for an
implementation grant with a statement that the application for
the section 8 assistance for replacement housing and for
residents of the project not purchasing units is conditionally
approved, subject to the availability of appropriations in
subsequent fiscal years.
[SEC. 304. HOMEOWNERSHIP PROGRAM REQUIREMENTS.
[(a) In General.--A homeownership program under this title
shall provide for acquisition by eligible families of ownership
interests in, or shares representing, at least one-half of the
units in a public housing project under any arrangement
determined by the Secretary to be appropriate, such as
cooperative ownership (including limited equity cooperative
ownership) and fee simple ownership (including condominium
ownership), for occupancy by the eligible families.
[(b) Affordability.--A homeownership program under this title
shall provide for the establishment of sales prices (including
principal, insurance, taxes, and interest and closing costs)
for initial acquisition of the property from the public housing
agency if the applicant is not a public housing agency, and for
sales to eligible families, such that an eligible family shall
not be required to expend more than 30 percent of the adjusted
income of the family per month to complete a sale under the
homeownership program.
[(c) Plan.--A homeownership program under this title shall
provide, and include a plan, for--
[(1) identifying and selecting eligible families to
participate in the homeownership program;
[(2) providing relocation assistance to families who
elect to move;
[(3) ensuring continued affordability by tenants,
homebuyers, and homeowners in the project;
[(4) providing ongoing training and counseling for
homebuyers and homeowners; and
[(5) replacing units in eligible projects covered by
a homeownership program.
[(d) Acquisition and Rehabilitation Limitations.--Acquisition
or rehabilitation of public housing projects under a
homeownership program under this title may not consist of
acquisition or rehabilitation of less than the whole public
housing project in a project consisting of more than 1
building. The provisions of this subsection may be waived upon
a finding by the Secretary that the sale of less than all the
buildings in a project is feasible and will not result in a
hardship to any tenants of the project who are not included in
the homeownership program.
[(e) Financing.--
[(1) In general.--The application shall identify and
describe the proposed financing for (A) any
rehabilitation, and (B) acquisition (i) of the project,
where applicable, by an entity other than the public
housing agency for transfer to eligible families, and
(ii) by eligible families of ownership interests in, or
shares representing, units in the project. Financing
may include use of the implementation grant, sale for
cash, or other sources of financing (subject to
applicable requirements), including conventional
mortgage loans and mortgage loans insured under title
II of the National Housing Act.
[(2) Prohibition against pledges.--Property
transferred under this title shall not be pledged as
collateral for debt or otherwise encumbered except when
the Secretary determines that--
[(A) such encumbrance will not threaten the
long-term availability of the property for
occupancy by low-income families;
[(B) neither the Federal Government nor the
public housing agency will be exposed to undue
risks related to action that may have to be
taken pursuant to paragraph (3);
[(C) any debt obligation can be serviced from
project income, including operating assistance;
and
[(D) the proceeds of such encumbrance will be
used only to meet housing standards in
accordance with subsection (f) or to make such
additional capital improvements as the
Secretary determines to be consistent with the
purposes of this title.
[(3) Opportunity to cure.--Any lender that provides
financing in connection with a homeownership program
under this subtitle shall give the public housing
agency, resident management corporation, individual
owner, or other appropriate entity a reasonable
opportunity to cure a financial default before
foreclosing on the property, or taking other action as
a result of the default.
[(f) Housing Quality Standards.--The application shall
include a plan ensuring that the unit--
[(1) will be free from any defects that pose a danger
to health or safety before transfer of an ownership
interest in, or shares representing, a unit to an
eligible family; and
[(2) will, not later than 2 years after the transfer
to an eligible family, meet minimum housing standards
established by the Secretary for the purposes of this
title.
[(h) Protection of Non-Purchasing Families.--
[(1) In general.--No tenant residing in a dwelling
unit in a public housing project on the date the
Secretary approves an application for an implementation
grant may be evicted by reason of a homeownership
program approved under this title.
[(2) Replacement assistance.--If the tenant decides
not to purchase a unit, or is not qualified to do so,
the recipient shall, during the term of any operating
assistance under the implementation grant, permit each
otherwise qualified tenant to continue to reside in the
project at rents that do not exceed levels consistent
with section 3(a) of this Act or, if an otherwise
qualified tenant chooses to move (at any time during
the term of such operating assistance contract), the
public housing agency shall, to the extent approved in
appropriations Acts, offer such tenant (A) a unit in
another public housing project, or (B) section 8
assistance for use in other housing.
[(3) Relocation assistance.--The recipient shall also
inform each such tenant that if the tenant chooses to
move, the recipient will pay relocation assistance in
accordance with the approved homeownership program.
[(4) Other rights.--Tenants renting a unit in a
project transferred under this title shall have all
rights provided to tenants of public housing under this
Act.
[SEC. 305. OTHER PROGRAM REQUIREMENTS.
[(a) Sale by Public Housing Agency To Applicant or Other
Entity Required.--Where the Secretary approves an application
providing for the transfer of the eligible project from the
public housing agency to another applicant, the public housing
agency shall transfer the project to such other applicant, in
accordance with the approved homeownership program.
[(b) Preferences.--In selecting eligible families for
homeownership, the recipient shall give a first preference to
otherwise qualified current tenants and a second preference to
otherwise qualified eligible families who have completed
participation in an economic self-sufficiency program specified
by the Secretary.
[(c) Cost Limitations.--The Secretary may establish cost
limitations on eligible activities under this title, subject to
the provisions of this title.
[(d) Annual Contributions.--Notwithstanding the purchase of a
public housing project under this section, or the purchase of a
unit in a public housing project by an eligible family, the
Secretary shall continue to pay annual contributions with
respect to the project. Such contributions may not exceed the
maximum contributions authorized in section 5(a).
[(e) Operating Subsidies.--Operating subsidies under section
9 of this Act shall not be available with respect to a public
housing project after the date of its sale by the public
housing agency.
[(f) Use of Proceeds From Sales to Eligible Families.--The
entity that transfers ownership interests in, or shares
representing, units to eligible families, or another entity
specified in the approved application, shall use the proceeds,
if any, from the initial sale for costs of the homeownership
program, including operating expenses, improvements to the
project, business opportunities for low-income families,
supportive services related to the homeownership program,
additional homeownership opportunities, and other activities
approved by the Secretary.
[(g) Restrictions on Resale by Homeowners.--
[(1) In general.--
[(A) Transfer permitted.--A homeowner under a
homeownership program may transfer the
homeowner's ownership interest in, or shares
representing, the unit, except that a
homeownership program may establish
restrictions on the resale of units under the
program.
[(B) Right to purchase.--Where a resident
management corporation, resident council, or
cooperative has jurisdiction over the unit, the
corporation, council, or cooperative shall have
the right to purchase the ownership interest
in, or shares representing, the unit from the
homeowner for the amount specified in a firm
contract between the homeowner and a
prospective buyer. If such an entity does not
have jurisdiction over the unit or elects not
to purchase and if the prospective buyer is not
a low-income family, the public housing agency
or the implementation grant recipient shall
have the right to purchase the ownership
interest in, or shares representing, the unit
for the same amount.
[(C) Promissory note required.--The homeowner
shall execute a promissory note equal to the
difference between the market value and the
purchase price, payable to the public housing
agency or other entity designated in the
homeownership plan, together with a mortgage
securing the obligation of the note.
[(2) 6 years or less.--In the case of a transfer
within 6 years of the acquisition under the program,
the homeownership program shall provide for appropriate
restrictions to assure that an eligible family may not
receive any undue profit. The plan shall provide for
limiting the family's consideration for its interest in
the property to the total of--
[(A) the contribution to equity paid by the
family;
[(B) the value, as determined by such means
as the Secretary shall determine through
regulation, of any improvements installed at
the expense of the family during the family's
tenure as owner; and
[(C) the appreciated value determined by an
inflation allowance at a rate which may be
based on a cost-of-living index, an income
index, or market index as determined by the
Secretary through regulation and agreed to by
the purchaser and the entity that transfers
ownership interests in, or shares representing,
units to eligible families (or another entity
specified in the approved application), at the
time of initial sale, and applied against the
contribution to equity.
Such an entity may, at the time of initial sale, enter
into an agreement with the family to set a maximum
amount which this appreciation may not exceed.
[(3) 6-20 years.--In the case of a transfer during
the period beginning 6 years after the acquisition and
ending 20 years after the acquisition, the
homeownership program shall provide for the recapture
by the Secretary or the program of an amount equal to
the amount of the declining balance on the note
described in paragraph (1)(C).
[(4) Use of recaptured funds.--Fifty percent of any
portion of the net sales proceeds that may not be
retained by the homeowner under the plan approved
pursuant to this subsection shall be paid to the entity
that transferred ownership interests in, or shares
representing, units to eligible families, or another
entity specified in the approved application, for use
for improvements to the project, business opportunities
for low-income families, supportive services related to
the homeownership program, additional homeownership
opportunities, and other activities approved by the
Secretary. The remaining 50 percent shall be returned
to the Secretary for use under this subtitle, subject
to limitations contained in appropriations Acts. Such
entity shall keep and make available to the Secretary
all records necessary to calculate accurately payments
due the Secretary under this subsection.
[(h) Third Party Rights.--The requirements under this title
regarding quality standards, resale, or transfer of the
ownership interest of a homeowner shall be judicially
enforceable against the grant recipient with respect to actions
involving rehabilitation, and against purchasers of property
under this subsection or their successors in interest with
respect to other actions by affected low-income families,
resident management corporations, resident councils, public
housing agencies, and any agency, corporation, or authority of
the United States Government. The parties specified in the
preceding sentence shall be entitled to reasonable attorney
fees upon prevailing in any such judicial action.
[(i) Dollar Limitation on Economic Development Activities.--
Not more than an aggregate of $250,000 from amounts made
available under sections 302 and 303 may be used for economic
development activities under sections 302(b)(6) and 303(b)(9)
for any project.
[(j) Timely Homeownership.--Recipients shall transfer
ownership of the property to tenants within a specified period
of time that the Secretary determines to be reasonable. During
the interim period when the property continues to be operated
and managed as rental housing, the recipient shall utilize
written tenant selection policies and criteria that are
consistent with the public housing program and that are
approved by the Secretary as consistent with the purpose of
improving housing opportunities for low-income families. The
recipient shall promptly notify in writing any rejected
applicant of the grounds for any rejection.
[(k) Capability of Resident Management Corporations and
Resident Councils.--To be eligible to receive a grant under
section 303, a resident management corporation or resident
council shall demonstrate to the Secretary its ability to
manage public housing by having done so effectively and
efficiently for a period of not less than 3 years or by
arranging for management by a qualified management entity.
[(l) Records and Audit of Recipients of Assistance.--
[(1) In general.--Each recipient shall keep such
records as may be reasonably necessary to fully
disclose the amount and the disposition by such
recipient of the proceeds of assistance received under
this title (and any proceeds from financing obtained in
accordance with subsection (b) or sales under
subsections (f) and (g)(4)), the total cost of the
homeownership program in connection with which such
assistance is given or used, and the amount and nature
of that portion of the program supplied by other
sources, and such other sources as will facilitate an
effective audit.
[(2) Access by the secretary.--The Secretary shall
have access for the purpose of audit and examination to
any books, documents, papers, and records of the
recipient that are pertinent to assistance received
under this title.
[(3) Access by the comptroller general.--The
Comptroller General of the United States, or any of the
duly authorized representatives of the Comptroller
General, shall also have access for the purpose of
audit and examination to any books, documents, papers,
and records of the recipient that are pertinent to
assistance received under this title.
[SEC. 306. DEFINITIONS.
[For purposes of this title:
[(1) The term ``applicant'' means the following
entities that may represent the tenants of the project:
[(A) A public housing agency (including an
Indian housing authority).
[(B) A resident management corporation,
established in accordance with requirements of
the Secretary under section 20.
[(C) A resident council.
[(D) A cooperative association.
[(E) A public or private nonprofit
organization.
[(F) A public body, including an agency or
instrumentality thereof.
[(2) The term ``eligible family'' means--
[(A) a family or individual who is a tenant
in the public or Indian housing project on the
date the Secretary approves an implementation
grant;
[(B) a low-income family; or
[(C) a family or individual who is assisted
under a housing program administered by the
Secretary or the Secretary of Agriculture (not
including any non-low income families assisted
under any mortgage insurance program
administered by either Secretary).
[(3) The term ``homeownership program'' means a
program for homeownership meeting the requirements
under this title.
[(4) The term ``recipient'' means an applicant
approved to receive a grant under this title or such
other entity specified in the approved application that
will assume the obligations of the recipient under this
title.
[(5) The term ``resident council'' means any
incorporated nonprofit organization or association
that--
[(A) is representative of the tenants of the
housing;
[(B) adopts written procedures providing for
the election of officers on a regular basis;
and
[(C) has a democratically elected governing
board, elected by the tenants of the housing.
[SEC. 307. RELATIONSHIP TO OTHER HOMEOWNERSHIP OPPORTUNITIES.
[The program authorized under this title shall be in addition
to any other public housing homeownership and management
opportunities, including opportunities under section 5(h) and
title II of this Act.
[SEC. 308. LIMITATION ON SELECTION CRITERIA.
[In establishing criteria for selecting applicants to receive
assistance under this title, the Secretary may not establish
any selection criterion or criteria that grant or deny such
assistance to an applicant (or have the effect of granting or
denying assistance) based on the implementation, continuation,
or discontinuation of any public policy, regulation, or law of
any jurisdiction in which the applicant or project is located.
[SEC. 309. ANNUAL REPORT.
[The Secretary shall annually submit to the Congress a report
setting forth--
[(1) the number, type, and cost of public housing
units sold pursuant to this title;
[(2) the income, race, gender, children, and other
characteristics of families participating (or not
participating) in homeownership programs funded under
this title;
[(3) the amount and type of financial assistance
provided under and in conjunction with this title;
[(4) the amount of financial assistance provided
under this title that was needed to ensure continued
affordability and meet future maintenance and repair
costs; and
[(5) the recommendations of the Secretary for
statutory and regulatory improvements to the program.]
----------
HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974
* * * * * * *
TITLE I--COMMUNITY DEVELOPMENT
* * * * * * *
definitions
Sec. 102. (a) As used in this title--
(1) * * *
* * * * * * *
(20)(A) * * *
[(B) The Secretary may establish percentages of
median income for any area that are higher or lower
than the percentages set forth in subparagraph (A), if
the Secretary finds such variations to be necessary
because of unusually high or low family incomes in such
area.]
(B) The Secretary may--
(i) with respect to any reference in
subparagraph (A) to 50 percent of the median
income of the area involved, establish
percentages of median income for any area that
are higher or lower than 50 percent if the
Secretary finds such variations to be necessary
because of unusually high or low family incomes
in such area; and
(ii) with respect to any reference in
subparagraph (A) to 80 percent of the median
income of the area involved, establish a
percentage of median income for any area that
is higher than 80 percent if the Secretary
finds such variation to be necessary because of
unusually low family incomes in such area.
* * * * * * *
eligible activities
Sec. 105. (a) * * *
* * * * * * *
(h) Prohibition of Use of Assistance for Employment
Relocation Activities.--Notwithstanding any other provision of
law, no amount from a grant under section 106 made in fiscal
year 1997 or any succeeding fiscal year may be used for any
activity (including any infrastructure improvement) that is
intended, or is likely, to facilitate the relocation or
expansion of any industrial or commercial plant, facility, or
operation, from one area to another area, if the relocation or
expansion will result in a loss of employment in the area from
which the relocation or expansion occurs.
* * * * * * *
TITLE II--ASSISTED HOUSING
* * * * * * *
[low-income housing for the elderly or handicapped
[Sec. 209. The Secretary shall consult the Secretary of
Health and Human Services to insure that special projects for
elderly or disabled families authorized pursuant to United
States Housing Act of 1937 shall meet acceptable standards of
design and shall provide quality services and management
consistent with the needs of the occupants. Such projects shall
be specifically designed and equipped with such ``related
facilities'' (as defined in section 202(d)(8) of the Housing
Act of 1959) as may be necessary to accommodate the special
environmental needs of the intended occupants and shall be in
support of and supported by the applicable State plans for
comprehensive services pursuant to section 134 of the Mental
Retardation Facilities and Community Mental Health Center
Construction Act of 1963 or State and area plans pursuant to
title III of the Older Americans Act of 1965.]
* * * * * * *
[local housing assistance plans; allocation of housing funds
[Sec. 213. (a)(1) The Secretary of Housing and Urban
Development, upon receiving an application for housing
assistance under the United States Housing Act of 1937, section
101 of the Housing and Urban Development Act of 1965, or if the
unit of general local government in which the proposed
assistance is to be provided has an approved housing assistance
plan, shall--
[(A) not later than ten days after receipt of the
application, notify the chief executive officer of such
unit of general local government that such application
is under consideration; and
[(B) afford such unit of general local government,
the opportunity, during the thirty-day period beginning
on the date of such notification, to object to the
approval of the application on the grounds that the
application is inconsistent with its housing assistance
plan.
Upon receiving an application for such housing assistance, the
Secretary shall assure that funds made available under this
section shall be utilized to the maximum extent practicable to
meet the needs and goals identified in the unit of local
government's housing assistance plan.
[(2) If the unit of general local government objects to the
application on the grounds that it is inconsistent with its
housing assistance plan, the Secretary may not approve the
application unless he determines that the application is
consistent with such housing assistant plan. If the Secretary
determines, that such application is consistent with the
housing assistance plan, he shall notify the chief executive
officer of the unit of general local government of his
determination and the reasons therefor in writing. If the
Secretary concurs with the objection of the unit of local
government, he shall notify the applicant stating the reason
therefor in writing.
[(3) If the Secretary does not receive an objection by the
close of the period referred to in paragraph (1)(B), he may
approve the application unless he finds it inconsistent with
the housing assistance plan. If the Secretary determines that
an application is inconsistent with a housing assistance plan,
he shall notify the applicant stating the reasons therefor in
writing.
[(4) The Secretary shall make the determinations referred to
in paragraphs (2) and (3) within thirty days after he receives
an objection pursuant to paragraph (1)(B) or within thirty days
after the close of the period referred to in paragraph (1)(B),
whichever is earlier.
[(5) As used in this section, the term ``housing assistance
plan'' means a housing assistance plan submitted and approved
under section 104 of this Act or, in the case of a unit of
general local government not participating under title I of
this Act, a housing planapproved by the Secretary as meeting
the requirements of this section. In developing a housing assistance
plan under this paragraph a unit of general local government shall
consult with local public agencies involved in providing for the
welfare of children to determine the housing needs of (A) families
identified by the agencies as having a lack of adequate housing that is
a primary factor in the imminent placement of a child in foster care or
in preventing the discharge of a child from foster care and
reunification with his or her family; and (B) children who, upon
discharge of the child from foster care, cannot return to their family
or extended family and for which adoption is not available. The unit of
general local government shall include in the housing assistance plan
needs and goals with respect to such families and children.
[(b) The provisions of subsection (a) shall not apply to--
[(1) applications for assistance involving 12 or
fewer units in a single project or development;
[(2) applications for assistance with respect to
housing in new community developments approved under
title IV of the Housing and Urban Development Act of
1968 or title VII of the Housing and Urban Development
Act of 1970 which the Secretary determines are
necessary to meet the housing requirements under such
title; or
[(3) applications for assistance with respect to
housing financed by loans or loan guarantees from a
State or agency thereof, except that the provisions of
subsection (a) shall apply where the unit of general
local government in which the assistance is to be
provided objects in its housing assistance plan to the
exemption provided by this paragraph.
[(c) For areas in which an approved local housing assistance
plan is not applicable, the Secretary shall not approve an
application for housing assistance unless he determines that
there is a need for such assistance, taking into consideration
any applicable State housing plans, and that there is or will
be available in the area public facilities and services
adequate to serve the housing proposed to be assisted. The
Secretary shall afford the unit of general local government in
which the assistance is to be provided an opportunity, during a
30-day period following receipt of an application by him, to
provide comments or information relevant to the determination
required to be made by the Secretary under this subsection.
[(d)(1)(A)(i) Except as provided by subparagraph (B), the
Secretary shall allocate assistance referred to in subsection
(a)(1) the first time it is available for reservation on the
basis of a formula that is contained in a regulation prescribed
by the Secretary, and that is based on the relative needs of
different States, areas, and communities, as reflected in data
as to population, poverty, housing overcrowding, housing
vacancies, amount of substandard housing, and other objectively
measurable conditions specified in the regulation. The
Secretary may allocate assistance under the preceding sentence
in such a manner that each State shall receive not less than
one-half of one percent of the amount of funds available for
each program referred to in subsection (a)(1) in each fiscal
year. In allocating assistance under this paragraph for each
program of housing assistance under subsection (a)(1), the
Secretary shall apply the formula, to the extent practicable,
in a manner so that the assistance under the program is
allocated according to the particular relative needs under the
preceding sentence that are characteristic of and related to
the particular type of assistance provided under the program.
Assistance under section 202 of the Housing Act of 1959 shall
be allocated in a manner that ensures that awards of the
assistance under such section are made for projects of
sufficient size to accommodate facilities for supportive
services appropriate to the needs of frail elderly residents.
[(ii) Assistance under section 8(b)(1) of the United States
Housing Act of 1937 shall be allocated in a manner that enables
participating jurisdictions to carry out, to the maximum extent
practicable, comprehensive housing affordability strategies
approved in accordance with section 105 of the Cranston-
Gonzalez National Affordable Housing Act. Such jurisdictions
shall submit recommendations for allocating assistance under
such section 8(b)(1) to the Secretary in accordance with
procedures that the Secretary determines to be appropriate to
permit allocations of such assistance to be made on the basis
of timely and complete information. This clause may not be
construed to prevent, alter, or otherwise affect the
application of the formula established pursuant to clause (i)
for purposes of allocating such assistance. For purposes of
this clause, the term ``participating jurisdiction'' means a
State or unit of general local government designated by the
Secretary to be a participating jurisdiction under title II of
the Cranston-Gonzalez National Affordable Housing Act. The
preceding sentence shall not apply to projects acquired from
the Resolution Trust Corporation under section 21A(c) of the
Federal Home Loan Bank Act.
[(B) The formula allocation requirements of subparagraph (A)
shall not apply to--
[(i) assistance that is approved in appropriation
Acts for use under sections 9 or 14, or the rental
rehabilitation grant program under section 17, of the
United States Housing Act of 1937, except that the
Secretary shall comply with section 102 of the
Department of Housing and Urban Development Reform Act
of 1989 with respect to such assistance; or
[(ii) other assistance referred to in subsection (a)
that is approved in appropriation Acts for uses that
the Secretary determines are incapable of geographic
allocation, including amendments of existing contracts,
renewal of assistance contracts, assistance to families
that would otherwise lose assistance due to the
decision of the project owner to prepay the project
mortgage or not to renew the assistance contract,
assistance to prevent displacement or to provide
replacement housing in connection with the demolition
or disposition of public and Indian housing, and
assistance in support of the property disposition and
loan management functions of the Secretary.
[(C) Any allocation of assistance under subparagraph (A)
shall, as determined by the Secretary, be made to the smallest
practicable area, consistent with the delivery of assistance
through a meaningful competitive process designed to serve
areas with greater needs.
[(D) Any amounts allocated to a State or areas or communities
within a State that are not likely to be used within a fiscal
year shall not be reallocated for use in another State, unless
the Secretary determines that other areas or communities (that
are eligible for assistance under the program) within the same
State cannot use the amounts within that same fiscal year.
[(2) Not later than sixty days after approval in an
appropriation Act, the Secretary shall allocate from the
amounts available for use in nonmetropolitan areas an amount of
authority for assistance under section 8(d) of the United
States Housing Act of 1937 determined in consultation with the
Secretary of Agriculture for use in connection with section 533
of the Housing Act of 1949 during the fiscal year for which
such authority is approved. The amount of assistance allocated
to nonmetropolitan areas pursuant to this section in any fiscal
year shall not be less than 20 nor more than 25 per centum of
the total amount of the assistance that is subject to
allocation under paragraph (1)(A).
[(3) The Secretary may reserve such housing assistance funds
as he deems appropriate for use by a State or agency thereof.
[(4)(A) Notwithstanding any other provision of law, with
respect to fiscal years beginning after September 30, 1990, the
Secretary may retain not more than 5 percent of the financial
assistance that becomes available under programs described in
subsection (a)(1) during any fiscal year. Any such financial
assistance that is retained shall be available for subsequent
allocation to specific areas and communities, and may only be
used for--
[(i) unforeseen housing needs resulting from natural
and other disasters;
[(ii) housing needs resulting from emergencies, as
certified by the Secretary, other than such disasters;
[(iii) housing needs resulting from the settlement of
litigation; and
[(iv) housing in support of desegregation efforts.
[(B) Any amounts retained in any fiscal year under
subparagraph (A) that are unexpended at the end of such fiscal
year shall remain available for the following fiscal year under
the program under subsection (a)(1) from which the amount was
retained. Such amounts shall be allocated on the basis of the
formula under subsection (d)(1).
[(5)(A) The Secretary shall not reserve or obligate
assistance subject to allocation under paragraph (1)(A) to
specific recipients, unless the assistance is first allocated
on the basis of the formula contained in that paragraph and
then is reserved and obligated pursuant to a competition.
[(B) Any competition referred to in subparagraph (A) shall be
conducted pursuant to specific criteria; for the selection of
recipients of assistance. The criteria shall be contained in--
[(i) a regulation promulgated by the Secretary after
notice and public comment; or
[(ii) to the extent authorized by law, a notice
published in the Federal Register.
[(C) Subject to the times at which appropriations for
assistance subject to paragraph (1)(A) may become available for
reservation in any fiscal year, the Secretary shall take such
steps as the Secretary deems appropriate to ensure that, to the
maximum extent practicable, the process referred to in
subparagraph (A) is carried out with similar frequency and at
similar times for each fiscal year.
[(D) This paragraph shall not apply to assistance referred to
in paragraph (4).
[(e) From budget authority made available in appropriation
Acts for fiscal year 1988, the Secretary shall enter into an
annual contributions contract for a term of 180 months to
obligate sufficient funds to provide assistance payments
pursuant to section 8(b)(1) of the United States Housing Act of
1937 on behalf of 500 lower income families from budget
authority made available for fiscal year 1988, so long as such
families occupy properties in the Park Central New Community
Project or in adjacent areas that are recognized by the unit of
general local government in which such Project is located as
being included within the Park Central New Town In Town
Project. If a lower income family receiving assistance payments
pursuant to this subsection ceases to qualify for assistance
payments pursuant to the provisions of section 8 of such Act or
of this subsection during the 180-month term of the annual
contributions contract, assistance payments shall be made on
behalf of another lower income family who occupies a unit
identified in the previous sentence.]
* * * * * * *
----------
CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT
* * * * * * *
TITLE I--GENERAL PROVISIONS AND POLICIES
* * * * * * *
SEC. 104. DEFINITIONS.
As used in this title and in title II:
(1) * * *
* * * * * * *
(10) The term ``low-income families'' means families
whose incomes do not exceed 80 percent of the median
income for the area, as determined by the Secretary
with adjustments for smaller and larger families,
except that the Secretary may establish [income
ceilings higher or lower] an income ceiling higher than
80 percent of the median for the area on the basis of
the Secretary's findings that such [variations are]
variation is necessary because of prevailing levels of
construction costs or fair market rents, or unusually
[high or] low family incomes.
* * * * * * *
TITLE II--INVESTMENT IN AFFORDABLE HOUSING
* * * * * * *
Subtitle A--HOME Investment Partnerships
* * * * * * *
SEC. 214. INCOME TARGETING.
Each participating jurisdiction shall invest funds made
available under this subtitle within each fiscal year so that--
(1) with respect to rental assistance and rental
units--
(A) not less than 90 percent of (i) the
families receiving such rental assistance are
families whose incomes do not exceed 60 percent
of the median family income for the area, as
determined by the Secretary with adjustments
for smaller and larger families, (except that
the Secretary may establish [income ceilings
higher or lower] an income ceiling higher than
60 percent of the median for the area on the
basis of the Secretary's findings that such
[variations are] variation is necessary because
of prevailing levels of construction cost or
fair market rent, or unusually [high or] low
family income) at the time of occupancy or at
the time funds are invested, whichever is
later, or (ii) the dwelling units assisted with
such funds are occupied by families having such
incomes; and
* * * * * * *
SEC. 215. QUALIFICATION AS AFFORDABLE HOUSING.
(a) Rental Housing.--
(1) Qualification.--Housing that is for rental shall
qualify as affordable housing under this title only if
the housing--
(A) bears rents not greater than the lesser
of (i) the existing fair market rent for
comparable units in the area as established by
the Secretary under section 8 of the United
States Housing Act of 1937, or (ii) a rent that
does not exceed 30 percent of the adjusted
income of a family whose income equals 65
percent of the median income for the area, as
determined by the Secretary, with adjustment
for number of bedrooms in the unit, except that
the Secretary may establish [income ceilings
higher or lower] an income ceiling higher than
65 percent of the median for the area on the
basis of the Secretary's findings that such
[variations are] variation is necessary because
of prevailing levels of construction costs or
fair market rents, or unusually [high or] low
family incomes;
* * * * * * *
TITLE V--HOUSING ASSISTANCE
Subtitle A--Public and Indian Housing
* * * * * * *
[SEC. 518. INDIAN PUBLIC HOUSING EARLY CHILDHOOD DEVELOPMENT
DEMONSTRATION PROGRAM.
[(a) Funding.--To the extent provided in appropriation Acts,
of any amounts appropriated under section 5(c) of the United
States Housing Act of 1937 for fiscal year 1993 for public
housing grants for Indian housing, $5,200,000 may be used to
carry out the demonstration program under this section. To the
extent provided in appropriation Acts, of any amounts
appropriated under section 5(c) of the United States Housing
Act of 1937 for fiscal year 1994 for public housing grants for
Indian housing, $5,418,400 may be used to carry out the
demonstration program under this section. Under the
demonstration, the Secretary shall make grants to nonprofit
organizations, Indian housing authorities, and Indian tribes to
assist such organizations, housing authorities, and tribes in
providing early childhood development services in or near low-
income housing developed or operated pursuant to a contract
between the Secretary of Housing and Urban Development and an
Indian housing authority for low-income families who reside in
such Indian public housing.
[(b) Operation of Demonstration.--Except as provided in this
section, the Secretary of Housing and Urban Development shall
carry out the demonstration program under this section in low-
income housing developed or operated pursuant to a contract
between the Secretary and an Indian housing authority in the
same manner as the demonstration program under section 222 of
the Housing and Urban-Rural Recovery Act of 1983 is carried
out. For purposes of this section, any reference to ``public
housing'' or a ``low income housing project'' in section 222 of
such Act is deemed to refer to low-income housing developed or
operated pursuant to a contract between the Secretary and an
Indian housing authority.
[(c) Limitations.--
[(1) Tribal diversity.--The Secretary of Housing and
Urban Development shall provide that the demonstration
program under this section is carried out in not more
than 1 Indian public housing project for any single
Indian tribe.
[(2) Geographic diversity.--The Secretary of Housing
and Urban Development shall carry out the demonstration
program under this section through various Indian
housing authorities and provide for geographic
distribution among such housing authorities.
[(d) Report.--
[(1) In general.--Not later than the expiration of
the 3-year period beginning on the date of the
enactment of this Act, the Secretary of Housing and
Urban Development shall prepare and submit to the
Congress a detailed report setting forth the findings
and conclusions of the Secretary as a result of
carrying out the demonstration program established in
this section. Such report shall include any
recommendations of the Secretary with respect to the
establishment of a permanent program of assisting early
childhood development services in or near low-income
housing developed or operated pursuant to a contract
between the Secretary and an Indian housing authority.
[(2) Conforming provision.--Notwithstanding
subsection (b) of this section, section 222(e) of the
Housing and Urban-Rural Recovery Act of 1983 (regarding
submission of a report) shall not apply to this section
and the demonstration program carried out under this
section.
[SEC. 519. PUBLIC HOUSING RENT WAIVER FOR POLICE OFFICERS.
[(a) Authority.--Notwithstanding any other provision of law,
the Secretary of Housing and Urban Development may permit
public housing agencies to allow police officers and other
security personnel (who are not otherwise eligible for
residence in public housing) to reside in public housing
dwelling units in accordance with this section.
[(b) Plan.--To be eligible to utilize dwelling units as
provided under this section, a public housing agency shall
submit to the Secretary a plan identifying the projects in
which the police officers or security personnel will reside and
describing the anticipated benefits from such residence.
[(c) Approval.--The Secretary may approve a plan and
authorize the use of dwelling units under this section only if
the Secretary determines that such use will--
[(1) increase security for other public housing
residents;
[(2) result in a limited loss of income to the public
housing agency; and
[(3) not result in a significant reduction of units
available for residence by families eligible for such
residence under the provisions of the United States
Housing Act of 1937.
The Secretary shall notify each public housing agency
submitting a plan under subsection (b) of approval or
disapproval of the plan not later than 30 days after the
Secretary receives the plan.
[(d) Terms.--Upon approving a plan under subsection (b),
the Secretary shall waive the applicability of any occupancy
requirements with respect to the officers or other personnel,
and may permit the public housing agency submitting the plan to
establish such special rent requirements and other terms and
conditions of occupancy that the Secretary considers
appropriate.
[SEC. 520. PUBLIC AND ASSISTED HOUSING YOUTH SPORTS PROGRAMS.
[(a) Public Housing Youth Sports Program Grants.--From
amounts provided for public and assisted housing drug
elimination grants under section 5130(a) of the Anti-Drug Abuse
Act of 1988, the Secretary of Housing and Urban Development may
make grants to qualified entities under subsection (b) to carry
out youth sports programs for residents of projects of public
housing agencies with substantial drug problems.
[(b) Entities Qualified To Receive Grants.--Grants under this
section may be made only to--
[(1) States;
[(2) units of general local government;
[(3) local park and recreation districts and
agencies;
[(4) public housing agencies;
[(5) nonprofit organizations and institutions of
higher learning providing youth sports services
programs;
[(6) Indian tribes;
[(7) Indian housing authorities; and
[(8) institutions of higher learning that have never
participated in a youth sports program assisted under
this section.
[(c) Use of Grants.--
[(1) Public housing sites with substantial drug
problems.--Grants under this section shall be used for
youth sports programs only with respect to public
housing sites that the Secretary determines have a
substantial problem regarding the use or sale of
illegal drugs.
[(2) Youth sports program eligibility.--To be
eligible to receive assistance from a grant under this
section, a youth sports program shall be designed and
organized as follows:
[(A) The sports program shall serve primarily
youths from the public housing project in which
the program assisted by the grant is operated.
[(B) The sports program shall provide
positive sports activities or positive
cultural, recreational, or other activities,
designed to appeal to youths as alternatives to
the drug environment in the public housing
project.
[(C) The sports program shall be operated as,
in conjunction with, or in furtherance of, an
organized program or plan designed to eliminate
drugs and drug-related problems in the public
housing project or projects within the public
housing agency.
[(3) Midnight basketball league programs.--
Notwithstanding any other provision of this subsection
and subsection (d), a grant under this section may be
used to carry out any youth sports program that meets
the requirements of a midnight basketball league
program under subsection (l)(4) (not including
subparagraph (B) of such subsection) if the program
serves primarily youths and young adults from the
public housing project in which the program assisted by
the grant is operated.
[(d) Eligible Activities.--Any qualified entity that receives
a grant under this section may use amounts from the grant to
assist in carrying out a youth sports program in any of
the following manners:
[(1) Acquisition, construction, or rehabilitation of
community centers, parks, or playgrounds.
[(2) Redesigning or modifying public spaces in public
housing projects to provide increased utilization of
the areas by youth sports programs.
[(3) Provision of public services, including salaries
and expenses for staff of youth sports programs,
cultural activities, transportation costs, educational
programs relating to drug abuse, and sports and
recreation equipment.
[(4) In the case only of an eligible entity described
in subsection (b)(8), any transportation costs in
connection with the program.
[(e) Grant Amount Limitations.--
[(1) Matching amount.--The Secretary may not make a
grant to any qualified entity that applies for a grant
under subsection (f) unless the applicant entity
certifies to the Secretary, as the Secretary shall
require, that the applicant will supplement the amount
provided by the grant with an amount of funds from non-
Federal sources equal to or greater than 50 percent of
the amount provided by the grant.
[(2) Non-federal funds.--For purposes of this
subsection, the term ``funds from non-Federal sources''
includes funds from States, units of general local
governments, or agencies of such governments, Indian
tribes, private contributions, any salary paid to staff
to carry out the youth sports program of the recipient,
the value of the time and services contributed by
volunteers to carry out the program of the recipient at
a rate determined by the Secretary, the value of any
donated material, equipment, or building, and the value
of any lease on a building.
[(3) Prohibition of substitution of funds.--Neither
amounts received from grants under this section nor any
State or local government funds used to supplement such
amounts may be used to replace other public funds
previously used, or designated for use, for the
purposes under this Act.
[(4) Maximum annual grant amount.--For any single
fiscal year, the Secretary may not award grants under
this section for carrying out a youth sports program
with respect to any single public housing project in an
amount exceeding $125,000.
[(f) Applications.--To be eligible to receive a grant under
this section, a qualified entity under subsection (b) shall
submit to the Secretary an application as the Secretary may
require, which shall include the following:
[(1) A description of the organization of the youth
sports program.
[(2) A description of the nature of services provided
by the youth sports program.
[(3) An estimate of the number of youth involved.
[(4) A description of the extent of involvement of
local sports organizations or sports figures.
[(5) A description of the facilities used.
[(6) A description of plans to continue the youth
sports program in the future.
[(7) A statement regarding the extent to which the
youth sports program meets the criteria for selection
under subsection (g).
[(8) A description of the planned schedule and
activities of the youth sports program and the
financial and other resources committed to each
activity and service of the program.
[(9) A budget describing the share of the costs of
the youth sports program provided by the grant under
this section and other sources of funds, including
funds required under subsection (e)(1).
[(10) Any other information that the Secretary may
require.
[(g) Selection Criteria.--The Secretary shall select
qualified entities that have applied under subsection (f) to
receive grants under this section pursuant to a competition
based on the following criteria:
[(1) The extent to which the youth sports program to
be assisted with the grant addresses the particular
needs of the area to be served by the program and
employs methods, approaches, or ideas in the design or
implementation of the program particularly suited to
fulfilling such needs (whether such methods are
conventional or unique and innovative).
[(2) The technical merit of the application of the
qualified entity.
[(3) The qualifications, capabilities, and experience
of the personnel and staff of the sports program who
are critical to achieving the objectives of the program
as described in the application.
[(4) The capabilities, related experience,
facilities, techniques of the applicant for carrying
out the youth sports program and achieving the
objectives of the program as described in the
application and the potential of the applicant for
continuing the youth sports program.
[(5) The severity of the drug problem at the local
public housing site for the youth sports program and
the extent of any planned or actual efforts to rid the
site of the problem.
[(6) The extent to which local sports organizations
or sports figures are involved.
[(7) The extent of the support of the public housing
agency for the program, coordination of proposed
activities with local resident management groups or
associations (where such groups exist) and coordination
of proposed activities with ongoing programs of the
applicant that further the purposes of this section.
[(8) The extent of non-Federal contributions that
exceed the amount of such funds required under
subsection (e)(1).
[(9) In the case of a qualified entity under
paragraph (3) or (4) of subsection (b), the extent to
which the applicant has demonstrated local government
support for the program.
[(h) Report.--Each qualified entity that receives a grant
under this section shall submit to the Secretary, not later
than the expiration of the 90-day period beginning on the date
on which the grant amounts provided under this section are
fully expended, a report describing the activities carried out
with the grant.
[(i) Definitions.--For purposes of this section:
[(1) Indian tribe.--The term ``Indian tribe'' has the
meaning given such term in section 102(a)(17) of the
Housing and Community Development Act of 1974.
[(2) Public housing agency.--The term ``public
housing agency'' has the meaning given the term in
section 3(b) of the United States Housing Act of 1937
(42 U.S.C. 1437a(b)).
[(3) Public housing project.--The terms ``project''
and ``public housing'' have the meanings given the
terms in section 3(6) of the United States Housing Act
of 1937 (42 U.S.C. 1437a(b)).
[(4) Qualified entity.--The term ``qualified entity''
means an entity eligible under subsection (b) to apply
for and receive a grant under this section.
[(5) State.--The term ``State'' means the States of
the United States, the District of Columbia, the
Commonwealth of Puerto Rico, the Commonwealth of the
Northern Mariana Islands, Guam, the Virgin Islands,
American Samoa, the Trust Territory of the Pacific
Islands, and any other territory or possession of the
United States.
[(6) Unit of general local government.--The term
``unit of general local government'' means any city,
town, township, county, parish, village, or other
general purpose political subdivision of a State.
[(7) Secretary.--The term ``Secretary'' means the
Secretary of Housing and Urban Development.
[(j) Regulations.--The Secretary shall issue any regulations
necessary to carry out this section.
[(k) Authorization of Appropriations.--Section 5129 of the
Anti-Drug Abuse Act of 1988 (42 U.S.C. 11908), as amended by
the preceding provisions of this Act, is further amended by
inserting after the first sentence the following new sentence:
* * *
[(l) Midnight Basketball League Training and Partnership
Programs.--
[(1) Authority.--The Secretary shall make grants, to
the extent that amounts are approved in appropriations
Acts under paragraph (13), to--
[(A) eligible entities to assist such
entities in carrying out midnight basketball
league programs meeting the requirements of
paragraph (4); and
[(B) eligible advisory entities to provide
technical assistance to eligible entities in
establishing and operating such midnight
basketball league programs.
[(2) Eligible entities.--
[(A) In general.--Subject to subparagraph
(B), grants under paragraph (1)(A) may be made
only to the following eligible entities:
[(i) Entities eligible under
subsection (b) for a grant under
subsection (a).
[(ii) Nonprofit organizations
providing employment counseling, job
training, or other educational
services.
[(iii) Nonprofit organizations
providing federally assisted low-income
housing.
[(B) Prohibition on second grants.--A grant
under paragraph (1)(A) may not be made to an
eligible entity if the entity has previously
received a grant under such paragraph, except
that the Secretary may exempt an eligible
advisory entity from the prohibition under this
subparagraph in extraordinary circumstances.
[(3) Use of grant amounts.--Any eligible entity that
receives a grant under paragraph (1)(A) may use such
amounts only--
[(A) to establish or carry out a midnight
basketball league program under paragraph (4);
[(B) for salaries for administrators and
staff of the program;
[(C) for other administrative costs of the
program, except that not more than 5 percent of
the grant amount may be used for such
administrative costs; and
[(D) for costs of training and assistance
provided under paragraph (4)(I).
[(4) Program requirements.--Each eligible entity
receiving a grant under paragraph (1)(A) shall
establish a midnight basketball league program as
follows:
[(A) The program shall establish a basketball
league of not less than 8 teams having 10
players each.
[(B) Not less than 50 percent of the players
in the basketball league shall be residents of
federally assisted low-income housing or
members of low-income families (as such term is
defined in section 3(b) of the United States
Housing Act of 1937).
[(C) The program shall be designed to serve
primarily youths and young adults from a
neighborhood or community whose population has
not less than 2 of the following
characteristics (in comparison with national
averages):
[(i) A substantial problem regarding
use or sale of illegal drugs.
[(ii) A high incidence of crimes
committed by youths or young adults.
[(iii) A high incidence of persons
infected with the human
immunodeficiency virus or sexually
transmitted diseases.
[(iv) A high incidence of pregnancy
or a high birth rate, among
adolescents.
[(v) A high unemployment rate for
youths and young adults.
[(vi) A high rate of high school
drop-outs.
[(D) The program shall require each player in
the league to attend employment counseling, job
training, and other educational classes
provided under the program, which shall be held
immediately following the conclusion of league
basketball games at or near the site of the
games and at other specified times.
[(E) The program shall serve only youths and
young adults who demonstrate a need for such
counseling, training, and education provided by
the program, in accordance with criteria for
demonstrating need, which shall be established
by the Secretary, in consultation with the
Advisory Committee.
[(F) The majority of the basketball games of
the league shall be held between the hours of
10:00 p.m. and 2:00 a.m. at a location in the
neighborhood or community served by the
program.
[(G) The program shall obtain sponsors for
each team in the basketball league. Sponsors
shall be private individuals or businesses in
the neighborhood or community served by the
program who make financial contributions to the
program and participate in or supplement the
employment,job training, and educational
services provided to the players under the program with additional
training or educational opportunities.
[(H) The program shall comply with any
criteria established by the Secretary, in
consultation with the Advisory Committee
established under paragraph (9).
[(I) Administrators or organizers of the
program shall receive training and technical
assistance provided by eligible advisory
entities receiving grants under paragraph (8).
[(5) Grant amount limitations.--
[(A) Private contributions.--The Secretary
may not make a grant under paragraph (1)(A) to
an eligible entity that applies for a grant
under paragraph (6) unless the applicant entity
certifies to the Secretary that the entity will
supplement the grant amounts with amounts of
funds from non-Federal sources, as follows:
[(i) In each of the first 2 years
that amounts from the grant are
disbursed (under subparagraph (E)), an
amount sufficient to provide not less
than 35 percent of the cost of carrying
out the midnight basketball league
program.
[(ii) In each of the last 3 years
that amounts from the grant are
disbursed, an amount sufficient to
provide not less than 50 percent of the
cost of carrying out the midnight
basketball league program.
[(B) Non-federal funds.--For purposes of this
paragraph, the term ``funds from non-Federal
sources'' includes amounts from nonprofit
organizations, public housing agencies, States,
units of general local government, and Indian
housing authorities, private contributions, any
salary paid to staff (other than from grant
amounts under paragraph (1)(A)) to carry out
the program of the eligible entity, in-kind
contributions to carry out the program (as
determined by the Secretary after consultation
with the Advisory Committee), the value of any
donated material, equipment, or building, the
value of any lease on a building, the value of
any utilities provided, and the value of any
time and services contributed by volunteers to
carry out the program of the eligible entity.
[(C) Prohibition on substitution of funds.--
Grant amounts under paragraph (1)(A) and
amounts provided by States and units of general
local government to supplement grant amounts
may not be used to replace other public funds
previously used, or designated for use, under
this section.
[(D) Maximum and minimum grant amounts.--
[(i) In general.--The Secretary may
not make a grant under paragraph (1)(A)
to any single eligible entity in an
amount less than $55,000 or exceeding
$130,000, except as provided in clause
(ii).
[(ii) Exception for large leagues.--
In the case of a league having more
than 80 players, a grant under
paragraph (1)(A) may exceed $130,000,
but may not exceed the amount equal to
35 percent of the cost of carrying out
the midnight basketball league program.
[(E) Disbursement.--Amounts provided under a
grant under paragraph (1)(A) shall be disbursed
to the eligible entity receiving the grant over
the 5-year period beginning on the date that
the entity is selected to receive the grant, as
follows:
[(i) In each of the first 2 years of
such 5-year period, 23 percent of the
total grant amount shall be disbursed
to the entity.
[(ii) In each of the last 3 years of
such 5-year period, 18 percent of the
total grant amount shall be disbursed
to the entity.
[(6) Applications.--To be eligible to receive a grant
under paragraph (1)(A), an eligible entity shall submit
to the Secretary an application in the form and manner
required by the Secretary (after consultation with the
Advisory Committee), which shall include--
[(A) a description of the midnight basketball
league program to be carried out by the entity,
including a description of the employment
counseling, job training, and other educational
services to be provided;
[(B) letters of agreement from service
providers to provide training and counseling
services required under paragraph (4) and a
description of such service providers;
[(C) letters of agreement providing for
facilities for basketball games and counseling,
training, and educational services required
under paragraph (4) and a description of the
facilities;
[(D) a list of persons and businesses from
the community served by the program who have
expressed interest in sponsoring, or have made
commitments to sponsor, a team in the midnight
basketball league; and
[(E) evidence that the neighborhood or
community served by the program meets the
requirements of paragraph (4)(C).
[(7) Selection.--The Secretary, in consultation with
the Advisory Committee, shall select eligible entities
that have submitted applications under paragraph (6) to
receive grants under paragraph (1)(A). The Secretary,
in consultation with the Advisory Committee, shall
establish criteria for selection of applicants to
receive such grants. The criteria shall include a
preference for selection of eligible entities carrying
out midnight basketball league programs in suburban and
rural areas.
[(8) Technical assistance grants.--Technical
assistance grants under paragraph (1)(B) shall be made
as follows:
[(A) Eligible advisory entities.--Technical
assistance grants may be made only to entities
that--
[(i) are experienced and have
expertise in establishing, operating,
or administering successful and
effective programs for midnight
basketball and employment, job
training, and educational services
similar to the programs under paragraph
(4); and
[(ii) have provided technical
assistance to other entities regarding
establishment and operation of such
programs.
[(B) Use.--Amounts received under technical
assistance grants shall be used to establish
centers for providing technical assistance to
entities receiving grants under paragraph
(1)(A) of this subsection and subsection (a)
regarding establishment, operation, and
administration of effective and successful
midnight basketball league programs under this
subsection and subsection (c)(3).
[(C) Number and amount.--To the extent that
amounts are provided in appropriations Acts
under paragraph (13)(B) in each fiscal year,
the Secretary shall make technical assistance
grants under paragraph (1)(B). In each fiscal
year that such amounts are available the
Secretary shall make 4 such grants, as follows:
[(i) 2 grants shall be made to
eligible advisory entities for
development of midnight basketball
league programs in public housing
projects.
[(ii) 2 grants shall be made to
eligible advisory entities for
development of midnight basketball
league programs in suburban or rural
areas.
[(iii) Each grant shall be in an
amount not exceeding $25,000.
[(9) Advisory committee.--The Secretary of Housing
and Urban Development shall appoint an Advisory
Committee to assist the Secretary in providing grants
under this subsection. The Advisory Committee shall be
composed of not more than 7 members, as follows:
[(A) Not less than 2 individuals who are
involved in managing or administering midnight
basketball programs that the Secretary
determines have been successful and effective.
Such individuals may not be involved in a
program assisted under this subsection or a
member or employee of an eligible advisory
entity that receives a technical assistance
grant under paragraph (1)(B).
[(B) A representative of the Center for
Substance Abuse Prevention of the Public Health
Service, Department of Health and Human
Services, who is involved in administering the
grant program for prevention, treatment, and
rehabilitation model projects for high risk
youth under section 509A of the Public Health
Service Act (42 U.S.C. 290aa-8), who shall be
selected by the Secretary of Health and Human
Services.
[(C) A representative of the Department of
Education, who shall be selected by the
Secretary of Education.
[(D) A representative of the Department of
Health and Human Services, who shall be
selected by the Secretary of Health and Human
Services from among officers and employees of
such Department involved in issues relating to
high-risk youth.
[(10) Reports.--The Secretary shall require each
eligible entity receiving a grant under paragraph
(1)(A) and each eligible advisory entity receiving a
grant under paragraph (1)(B) to submit to the
Secretary, for each year in which grant amounts are
received by the entity, a report describing the
activities carried out with such amounts.
[(11) Study.--To the extent amounts are provided
under appropriation Acts pursuant to paragraph (13)(C),
the Secretary shall make a grant to one entity
qualified to carry out a study under this paragraph.
The entity shall use such grant amounts to carry out a
scientific study of the effectiveness of midnight
basketball league programs under paragraph (4) of
eligible entities receiving grants under paragraph
(1)(A). The Secretary shall require such entity to
submit a report describing the study and any
conclusions and recommendations resulting from the
study to the Congress and the Secretary not later than
the expiration of the 2-year period beginning on the
date that the grant under this paragraph is made.
[(12) Definitions.--For purposes of this subsection:
[(A) The term ``Advisory Committee'' means
the Advisory Committee established under
paragraph (9).
[(B) The term ``eligible advisory entity''
means an entity meeting the requirements under
paragraph (8)(A).
[(C) The term ``eligible entity'' means an
entity described under paragraph (2)(A).
[(D) The term ``federally assisted low-income
housing'' has the meaning given the term in
section 5126 of the Public and Assisted Housing
Drug Elimination Act of 1990.
[(E) The term ``Secretary'' unless otherwise
specified, means the Secretary of Housing and
Urban Development.
[(13) Authorization of appropriations.--There are
authorized to be appropriated--
[(A) for grants under paragraph (1)(A),
$2,650,000 in each of fiscal years 1994 and
1995;
[(B) for technical assistance grants under
paragraph (1)(B), $100,000 in each of fiscal
years 1994 and 1995; and
[(C) for a study grant under paragraph (11),
$250,000 in fiscal year 1994.
[SEC. 521. PUBLIC HOUSING ONE-STOP PERINATAL SERVICES DEMONSTRATION.
[(a) Establishment of Demonstration Program.--
[(1) In general.--The Secretary of Housing and Urban
Development, in consultation with the Secretary of
Health and Human Services, shall carry out a program to
demonstrate the effectiveness of providing grants to
public housing agencies to assist such agencies in
providing facilities for making one-stop perinatal
services programs (as defined in subsection (e)(1))
available for pregnant women who reside in public
housing. Under the demonstration program, the Secretary
shall make grants to not more than 10 public housing
agencies.
[(2) Consultation requirements.--In carrying out the
demonstration program under this section, the Secretary
shall consult with the heads of other appropriate
Federal agencies.
[(b) Allocation of Assistance.--
[(1) Preferences.--In selecting public housing
agencies for grants under this section, the Secretary
shall give preference to the following public housing
agencies:
[(A) Areas with high infant mortality
rates.--Public housing agencies serving areas
with high infant mortality rates.
[(B) Secure facilities.--Public housing
agencies that demonstrate, to the satisfaction
of the Secretary, that security will be
provided so that women are safe when
participating in the one-stop perinatal
services program carried out at the facilities
provided or assisted under this section.
[(2) Limitation on grant amount.--The aggregate
amount provided under this section for any public
housing project may not exceed $15,000.
[(c) Demonstration Program Requirements.--
[(1) Applications.--Applications for grants under
this section shall be made by public housing agencies
in accordance with procedures established by the
Secretary and shall include a description of the one-
stop perinatal services program to be provided in the
facilities provided or assisted under this section.
[(2) Use of grants.--Any public housing agency
receiving a grant under this section may use the grant
only for the costs of providing facilities and minor
renovations of facilities necessary to make one-stop
perinatal services programs available to pregnant women
who reside in public housing.
[(3) Reports to secretary.--Each public housing
agency receiving a grant under this section for any
fiscal year shall submit to the Secretary, not later
than 3 months after the end of such fiscal year, a
report describing the facilities provided by the public
housing agency under this section and the one-stop
perinatal services program carried out in such
facilities. The report shall include data on the size
of the facilities, the costs and extent of any
renovations, the previous use of the facilities, the
number of women assisted by the program, the trimester
of the pregnancy of the women at the time of initial
assistance, infant birthweight, infant mortality rate,
and other relevant information.
[(4) Applicable standards.--No provision of this
section may be construed to authorize the Secretary to
establish any health, safety, or other standards with
respect to the services provided by the one-stop
perinatal services program or facilities provided or
assisted with grants received under this section. Such
services and facilities shall comply with all
applicable State and local laws, regulations, and
ordinances, and all requirements established by the
Secretary of Health and Human Services for such
services and facilities.
[(d) Report to Congress.--Not later than 1 year after the
date that amounts to carry out this section are first made
available under appropriations Acts, the Secretary shall
prepare and submit to the Congress a comprehensive report
setting forth the findings and conclusions of the Secretary as
a result of carrying out the demonstration program under this
section. The report shall include any recommendations of the
Secretary with respect to the establishment of a permanent
program of providing facilities in public housing for making
perinatal services available to pregnant women who reside in
the public housing.
[(e) Definitions.--For purposes of this section:
[(1) One-stop perinatal services program.--The term
``one-stop perinatal services program'' means a program
to provide a wide range of services for pregnant and
new mothers in a coordinated manner at a drop-in
center, which may include any of the following:
[(A) Information and education.--Information
and education for pregnant women regarding
perinatal care services, and related services
and resources, necessary to decrease infant
mortality and disability.
[(B) Health care services.--Basic health care
services that can be provided without a
physician present.
[(C) Referral.--Basic health screening of
pregnant women and referrals for health care
services.
[(D) Followup.--Followup assessment of women
and infants (including measurement of weight)
and referrals for health care services and
related services and resources.
[(E) Social worker.--Information and
assistance regarding Federal and State social
services provided by a social worker.
[(F) Other.--Any other services to assist
pregnant or new mothers.
[(2) Public housing.--The terms ``public housing''
and ``public housing agency'' have the meanings given
such terms in section 3(b) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(b)).
[(3) Secretary.--The term ``Secretary'' means the
Secretary of Housing and Urban Development.
[(f) Regulations.--The Secretary shall issue any regulations
necessary to carry out this section.
[(g) Authorization of Appropriations.--There are authorized
to be appropriated for carrying out the demonstration program
under this section $200,000 for fiscal year 1993 and $208,400
for fiscal year 1994.
[SEC. 522. PUBLIC HOUSING MIXED INCOME NEW COMMUNITIES STRATEGY
DEMONSTRATION.
[(a) Establishment of Demonstration Program.--
[(1) In general.--The Secretary of Housing and Urban
Development shall carry out a program to demonstrate
the effectiveness of promoting the revitalization of
troubled urban communities through the provision of
public housing in socio-economically mixed settings
combined with the innovative use of public housing
operating subsidies to stimulate the development of new
affordable housing in such communities.
[(2) Comprehensive services.--Housing units provided
under the demonstration program under this section
shall be made available in connection with a
comprehensive program of services and incentives under
subsections (h) and (i), in order to prepare
participating families for successful transition to
theprivate rental housing market and homeownership within a reasonable
period of time.
[(b) Coordinating Committee.--
[(1) Establishment.--For a public housing agency to
be eligible for designation or selection under
subsection (d) for participation in the demonstration
program, the chief executive officer of each unit of
general local government in which the public housing
agency is located shall appoint a coordinating
committee under this paragraph. The coordinating
committee shall participate in developing a plan for
implementing the demonstration program, review,
monitor, and make recommendations for improvements in
activities under the demonstration program, and ensure
the coordination and delivery of services under
subsection (h).
[(2) Membership.--Each coordinating committee shall
be composed of 12 members, who shall include, but may
not be limited to, the following individuals:
[(A) A representative of the chief executive
officer of the applicable unit of general local
government.
[(B) A representative of the applicable
public housing agency.
[(C) A representative of the regional
administrator of the Department of Housing and
Urban Development.
[(D) A representative of a local resident
management corporation.
[(E) Not less than 1 individual affiliated
with a local agency that administers programs
in 1 of the following areas: health, human
services, substance abuse, education, economic
and business development, law enforcement, and
housing.
[(F) A representative from among local
businesses engaged in housing and real estate.
[(G) A representative from among business
engaged in real estate financing.
[(3) Social service committees.--Each coordinating
committee established under this subsection shall
establish a subcommittee on social services, which
shall, before any action is taken under subsection
(e)(1) (with respect to the demonstration program as
carried out by the applicable public housing agency),
identify the specific services that are required to
successfully carry out the demonstration program.
[(c) Interagency Cooperation.--The Secretary shall coordinate
with the appropriate heads of other Federal agencies as
necessary to coordinate the implementation of the demonstration
program and endeavor to ensure the delivery of supportive
services required under subsection (h).
[(d) Scope of Demonstration Program.--
[(1) Participating public housing agencies.--The
Secretary shall carry out the demonstration program
with respect to public housing for families
administered by the Housing Authority of the City of
Chicago, in the State of Illinois. The Secretary may
also carry out the demonstration program with respect
to public housing administered by not more than 3 other
public housing agencies.
[(2) Participating public housing units.--Over the
term of the demonstration, the demonstration may be
applied to not more than 15 percent of the total number
of public housing units for families administered by
each participating public housing agency.
[(3) Nondisplacement.--No person who is a tenant of
public housing during the term of the demonstration
program may be involuntarily relocated or displaced
under the demonstration program.
[(e) Housing Development.--
[(1) Use of public housing operating subsidies.--For
the purpose of providing reasonable and necessary
operating costs in connection with the development of
additional affordable housing, under the demonstration
program the Secretary shall amend the annual
contributions contract between the Secretary and each
participating public housing agency as the Secretary
determines appropriate to permit the public housing
agency to utilize operating subsidy amounts allocated
to the agency under section 9 of the United States
Housing Act of 1937 with respect to newly constructed
or rehabilitated housing units that are privately
developed and owned. Such units shall be reserved for
use under the demonstration program for occupancy by
very low-income families as provided under this
subsection and subsection (g).
[(2) Lease terms.--Operating subsidy amounts shall be
provided for the operation of housing under paragraph
(1) pursuant to a lease contract between the owner of
the housing and the public housing agency, which shall
specify--
[(A) the number of units to be leased
exclusively to the public housing agency for
the term of the demonstration program, subject
only to the availability of amounts under
paragraph (1) or other funds for such purposes;
and
[(B) the requirements under subsection
(f)(6).
[(3) Transfer of amounts.--Operating subsidy amounts
may be provided for a unit of housing under paragraph
(1) only after the execution of a lease under
subsection (f)(5) for 1 corresponding public housing
unit.
[(4) Rental terms.--Units leased by a participating
public housing agency under this subsection shall be
available only to very low-income families that reside,
or have been offered a unit, in public housing
administered by the public housing agency and that
enter into a voluntary contract under subsection
(g)(1). The rental charge for each unit shall be the
amount equal to 30 percent of the adjusted income of
the resident family (as determined under section 3(b)
of the United States Housing Act of 1937), except that
the rental charge may not exceed a ceiling rent
determined by the public housing agency in the manner
that monthly rent is determined under section
3(a)(2)(A) of such Act.
[(5) Income mix.--Not more than 25 percent of the
units in each privately developed housing project under
the demonstration program may be leased by a public
housing agency pursuant to a lease contract under
paragraph (2). The number of units under each such
lease may not be less than the number of public housing
units that, notwithstanding the demonstration program,
would have been assisted with the operating subsidy
amounts made available under such contract, to ensure
that there shall be no loss of public housing units.
[(6) Coordination with other entities for development
of housing.--A participating public housing agency may
seek the cooperation and receive assistance from State,
county, and local governments and the private sector to
develop housing for use under this subsection. Such
assistance may include, but is not limited to--
[(A) donations of land and write-downs and
discounts on land by local governments;
[(B) abatement of real estate taxes for
specified periods by local, county, or State
governments;
[(C) assignment of community development
block grant funds and loan guarantees made
available under title I of the Housing and
Community Development Act of 1974;
[(D) low interest rate financing through
Federal Home Loan Bank programs, State or
Federal programs, and private lenders;
[(E) low-income housing tax credits from
State and local governments; and
[(F) mortgage revenue bonds from State or
local governments.
[(7) Determination of location and number of units.--
[(A) In general.--A participating public
housing agency and the applicable unit of
general local government shall jointly
determine the location of any newly constructed
or rehabilitated housing to be utilized under
the demonstration program carried out by the
public housing agency and the number of units
to be developed annually, with approval of the
legislative body of the local government.
[(B) Limitation on number of units.--The
total number of newly constructed or
rehabilitated units that may be used under this
subsection in the demonstration program may not
exceed--
[(i) for any participating public
housing agency with not more than 5,000
public housing units, 15 percent of the
number of units administered by the
agency;
[(ii) for any participating agency
with more than 5,000 but not more than
25,000 units, 10 percent of the number
of units administered by the agency;
and
[(iii) for any participating agency
with more than 25,000 units, 4 percent
of the number of units administered by
the agency.
[(f) Existing Public Housing.--
[(1) In general.--To facilitate the establishment of
socioeconomically mixed communities within existing
public housing developments, under the demonstration
program the Secretary shall authorize participating
public housing agenciesto lease units in existing
public housing projects, as provided in this subsection, to low-income
families who are not very low-income families, notwithstanding the
provisions of section 16(b) of the United States Housing Act of 1937.
[(2) Limitations on public housing residents.--
[(A) In general.--Except as provided in
subparagraph (B), not more than 25 percent of
the units in each public housing project in
which units are utilized under the
demonstration program may be occupied by low-
income families who are not very low-income
families. Not less than 75 percent of the units
in each such public housing project shall be
occupied by very low-income families.
[(B) Exception.--Upon determining that a
public housing agency has a special need, the
Secretary may provide for not more than 50
percent of the units in a public housing
project utilized under the demonstration
program to be occupied by low-income families
who are not very low-income families, and the
remainder of the units to be occupied by very
low-income families. Such special need may
include the need to ensure the successful
revitalization of troubled public housing
through establishing a socioeconomically mixed
resident population.
[(3) Number of units.--The number of such units made
available under this subsection by a public housing
agency may not exceed the number of units provided
under subsection (e) to participating families.
[(4) Rental terms.--The rent charged any family
occupying a unit made available under this subsection
may not, at any time during the demonstration period,
exceed the ceiling rent level determined by the public
housing agency in the manner that monthly rent is
determined under section 3(a)(2)(A) of the United
States Housing Act of 1937.
[(5) Lease.--A participating public housing agency
shall enter into a lease with each family occupying a
public housing unit made available under this
subsection. The term of each lease shall be 1 year.
Each lease shall be renewable upon expiration for a
period not to exceed 7 years. A public housing agency
may extend the period as provided under subsection
(j)(1).
[(6) Vacancy.--If, at any time, a participating
public housing agency is unable to rent a unit made
available under this subsection and the unit has been
vacant for a period of 6 months, the agency may--
[(A) cancel a lease for 1 unit of housing
provided under subsection (e) and recapture any
operating subsidy amounts associated with the
unit for use with respect to the vacant public
housing unit, upon which such public housing
unit shall be removed from participation in the
demonstration program and made generally
available for occupancy as provided under the
United States Housing Act of 1937; and
[(B) provide the family residing in the
housing unit provided under subsection (e)
(from which operating subsidy amounts have been
recaptured) with assistance under section 8(b)
of such Act, subject to the availability of
such assistance pursuant to appropriations Acts
and notwithstanding any preferences for such
assistance under section 8(d)(1)(A)(i) of such
Act, and permit the family to remain in the
unit.
[(g) Contracts With Participating Families.--
[(1) In general.--Under the demonstration program, a
participating public housing agency shall enter into a
contract with each family that will reside in a unit of
privately developed housing leased to the agency under
subsection (e). Such family shall voluntarily enter
into the contract and shall meet the criteria
established under paragraph (2). The contract shall be
made part of the lease executed between the family and
the public housing agency for such unit, shall set
forth the provisions of the demonstration program, and
shall specify the resources to be made available to the
participating family and the responsibilities of the
participating family under the program. The lease shall
be for a term of 1 year and shall be renewable upon
expiration for a period not to exceed 7 years, except
as provided under subsection (j)(1).
[(2) Establishment of criteria.--Each public housing
agency shall establish criteria for participation of
families in the demonstration program. The criteria
shall be based on factors that may
[SEC. 523. ENERGY EFFICIENCY DEMONSTRATION.
[(a) Establishment.--The Secretary of Housing and Urban
Development shall carry out a demonstration program to
encourage the use of private energy service companies in
accordance with section 118(a) of the Housing and Community
Development Act of 1987. The Secretary shall provide technical
assistance to 5 public housing agencies to demonstrate the
opportunities for energy cost reduction in 5 public housing
projects through energy services contracts. Not later than 90
days after the date of the enactment of this Act, the Secretary
shall establish such selection criteria for this demonstration
as the Secretary deems appropriate after consultation with
representatives of public housing agencies and energy
efficiency organizations.
[(b) Report.--As soon as practicable after the expiration of
the 1-year period beginning on the date of the enactment of
this Act, the Secretary of Housing and Urban Development shall
submit to the Congress a report setting forth the findings and
recommendations of the Secretary as a result of the
demonstration under this section. The Secretary shall
disseminate such report, to the extent practicable, to other
public housing agencies.]
* * * * * * *
Subtitle B--Low-Income Rental Assistance
* * * * * * *
SEC. 550. REVISIONS TO VOUCHER PROGRAM
(a) * * *
* * * * * * *
[(b) Documentation of Excessive Rent Burdens.--
[(1) Data.--The Secretary of Housing and Urban
Development shall collect and maintain, in an automated
system, data describing the characteristics of families
assisted under the certificate and voucher programs
established under section 8 of the United States
Housing Act of 1937, which data shall include the share
of family income paid toward rent.
[(2) Report.--Not less than annually, the Secretary
shall submit a report to the Congress setting forth,
for each of the certificate program and the voucher
program, the percentage of families participating in
the program who are paying for rent more than the
amount determined under section 3(a)(1) of such Act.
The report shall set forth data in appropriate
categories, such as various areas of the country, types
and sizes of public housing agencies, types of
families, and types of markets. The data shall identify
the jurisdictions in which more than 10 percent of the
families assisted under section 8 of such Act pay for
rent more than the amount determined under section
3(a)(1) of such Act and the report shall include an
examination of whether the fair market rent for such
areas is appropriate. The report shall also include any
recommendations of the Secretary for legislative and
administrative actions appropriate as a result of
analysis of the data.
[(3) Availability of data.--The Secretary shall make
available to each public housing agency administering
assistance under the certificate or voucher program any
data maintained under this subsection that relates to
the public housing agency.]
* * * * * * *
----------
HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1987
TITLE I--HOUSING ASSISTANCE
Subtitle A--Programs Under United States Housing Act of 1937
* * * * * * *
PART 2--PUBLIC HOUSING
* * * * * * *
[SEC. 126. PUBLIC HOUSING COMPREHENSIVE TRANSITION DEMONSTRATION.
[(a) Establishment of Demonstration Program.--The Secretary
of Housing and Urban Development (in this section referred to
as the ``Secretary'') shall carry out a program to demonstrate
the effectiveness of providing a comprehensive program of
services to participating public housing residents in order to
ensure the successful transition of such residents to private
housing. In carrying out the demonstration program, the
Secretary shall consult with the heads of other appropriate
Federal agencies to design and implement procedures to carry
out the transition from public housing.
[(b) Scope of Demonstration Program.--The Secretary shall
carry out the demonstration program with respect to public
housing administered by the Housing Authority of the City of
Charlotte, in the State of North Carolina. The Secretary may
also carry out the demonstration program with respect to public
housing administered by not more than 10 additional public
housing agencies.
[(c) Requirements of Demonstration Program.--The
demonstration program shall consist of the following
requirements:
[(1) Contract of participation.--Each participating
public housing agency may enter into a voluntary
contract with any family that is to commence residence
in a public housing project administered by the public
housing agency. The contract shall be made part of the
lease, shall set forth the provisions of the
demonstration program, and shall specify the resources
to be made available to the participating family and
the responsibilities of the participating family.
[(2) Remediation phase.--
[(A) During not to exceed the first 2 years
of residence of a participating family in
public housing, the public housing agency shall
ensure the provisions of remediation services
to the family in accordance with the terms and
conditions of the contract of participation,
which may include--
[(i) remedial education;
[(ii) completion of high school;
[(iii) job training and preparation;
[(iv) substance abuse treatment and
counseling;
[(v) training in homemaking skills
and parenting; and
[(vi) training in money management.
[(B) During the remediation phase, the amount
of rent charged the family may not be increased
on the basis of any increase in earned income
of the family.
[(3) Transition phase.--
[(A) During not to exceed a 5-year period
following completion of the remediation stage--
[(i) the head of the family shall be
required to have full-time employment;
and
[(ii) the public housing agency shall
ensure the provision of counseling for
the family with respect to
homeownership, money management, and
problem solving.
[(B) During the transition phase, the amount
of rent charged the family--
[(i) may be increased on the basis of
any increase in family income; and
[(ii) may not be decreased on the
basis of any decrease in earned income
due to voluntary termination of
employment.
[(4) Encouragement of savings.--The public housing
agency shall take appropriate actions (including the
establishment of an escrow savings account) to
encourage each participatingfamily to save funds during
the remediation and transition phases.
[(5) Effect of increases in family income.--
[(A) Any increase in the earned income of a
family during participation in the
demonstration program under this section may
not be considered as income or a resource for
the purpose of denying the eligibility of, or
reducing the amount of benefits payable to, the
family under any other Federal law, unless the
income of the family increases at any time to
not less than 50 percent of the median income
of the area (as determined by the Secretary
with adjustments for small and larger
families).
[(B) If at any time during the participation
of a family in the demonstration program the
income of the family increases to not less than
80 percent of the median income of the area (as
determined by the Secretary with adjustments
for smaller and larger families), the
participation of the family in the
demonstration program shall terminate.
[(6) Completion of transition.--Each family
participating in the demonstration program shall be
required to complete the transition out of public
housing during a period of not more than 7 years. The
public housing agency shall extend the period for any
family that requests an extension for good cause.
[(d) Reports to Congress--
[(1) Interim report.--Not later than 2 years after
the date of the enactment of this Act, the Secretary
shall submit to the Congress an interim report
evaluating the effectiveness of the demonstration
program under this section.
[(2) Final report.--Not later than 60 days after the
termination of the demonstration program under
subsection (f), the Secretary shall submit to the
Congress a final report evaluating the effectiveness of
the demonstration program under this section.
[(e) Regulations.--The Secretary shall issue such regulations
as may be necessary to carry out this section.
[(f) Termination of Demonstration Program.--The demonstration
program under this section shall terminate upon the expiration
of the 7-year period beginning on the date of the enactment of
this Act.]
* * * * * * *
Subtitle C--Multifamily Housing Management and Preservation
* * * * * * *
SEC. 183. TENANT PARTICIPATION IN MULTIFAMILY HOUSING PROJECTS.
(a) * * *
* * * * * * *
[(c) Nondiscrimination Against Section 8 Certificate Holders
and Voucher Holders.--No owner of a subsidized project (as
defined in section 203(i)(2) of the Housing and Community
Development Amendments of 1978, as amended by section 181(h) of
this Act) shall refuse--
[(1) to lease any available dwelling unit in any such
project of such owner that rents for an amount not
greater than the fair market rent for a comparable
unit, as determined by the Secretary under section 8 of
the United States Housing Act of 1937, to a holder of a
certificate of eligibility under such section, a
proximate cause of which is the status of such
prospective tenant as a holder of such certificate, and
to enter into a housing assistance payments contract
respecting such unit; or
[(2) to lease any available dwelling unit in any such
project of such owner to a holder of a voucher under
section 8(o) of such Act, and to enter into a voucher
contract respecting such unit, a proximate cause of
which is the status of such prospective tenant as
holder of such voucher.]
* * * * * * *
----------
HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1992
* * * * * * *
TITLE I--HOUSING ASSISTANCE
* * * * * * *
Subtitle B--Public and Indian Housing
* * * * * * *
[SEC. 132. HOMEOWNERSHIP DEMONSTRATION PROGRAM IN OMAHA, NEBRASKA.
[(a) Establishment.--The Secretary shall carry out a program
to facilitate self-sufficiency and homeownership of single-
family homes administered by the Housing Authority of the city
of Omaha, in the State of Nebraska (in this section referred to
as the ``Housing Authority''), to demonstrate the effectiveness
of promoting homeownership and providing support services.
[(b) Participating Public Housing Units.--For purposes of the
demonstration program, the Secretary shall authorize the
Housing Authority to designate single-family housing units for
eventual homeownership. Over the term of the demonstration, the
demonstration program may be applied to not more than 20
percent of the total number of public housing units
administered by the Housing Authority. In conducting the
demonstration, the Housing Authority shall affirmatively
further fair housing objectives.
[(c) Nondisplacement.--No person who is a tenant of public
housing may be involuntarily relocated or displaced as a result
of the demonstration program.
[(d) Economic Self-Sufficiency.--
[(1) Establishment of participation criteria.--The
Housing Authority shall establish criteria for the
participationof families in the demonstration program.
Such criteria shall be based on factors that may reasonably be expected
to predict a family's ability to succeed in the homeownership program
established by this section.
[(2) Contents of participation criteria.--The
criteria referred to in paragraph (1) shall include
evidence of interest by the family in homeownership,
the employment status and history of employment of
family members, and maintenance by the family of the
family's previous dwelling.
[(e) Provision of Supportive Services.--The Housing Authority
shall ensure the availability of supportive services to each
family participating in the demonstration program through its
own resources and through coordination with Federal, State, and
local agencies and private entities. Supportive services
available under the demonstration program may include
counseling, remedial education, education for completion of
high school, job training and preparation, financial counseling
emphasizing planning for homeownership, and any other
appropriate services.
[(f) Reports to Congress.--
[(1) Biennial report.--Upon the expiration of the 2-
year period beginning on the date of enactment of this
Act, and each 2-year period thereafter, the Secretary
of Housing and Urban Development shall submit to the
Congress a report evaluating the effectiveness of the
demonstration program established under this section.
[(2) Final report.--Not later than 60 days after
termination of the demonstration program pursuant to
subsection (h), the Secretary shall submit to the
Congress a final report evaluating the effectiveness of
the demonstration program.
[(g) Regulations.--Not later than the expiration of the 90-
day period beginning on the date of the enactment of this Act
\1\, the Secretary shall issue interim regulations to carry out
this section, which shall take effect upon issuance. The
Secretary shall issue final regulations to carry out this
subtitle after notice and opportunity for public comment
regarding the interim regulations, pursuant to the provisions
of section 553 of title 5, United States Code (notwithstanding
subsections (a)(2), (b)(B), and (d)(3) of such section). The
duration of the period for public comment shall not be less
than 60 days, and the final regulations shall be issued not
later than the expiration of the 60-day period beginning upon
the conclusion of the comment period and shall take effect upon
issuance.
[(h) Termination.--The demonstration program established
under this section shall terminate 10 years after the date of
the enactment of this Act.]
* * * * * * *
Subtitle C--Section 8 Assistance
* * * * * * *
[SEC. 152. MOVING TO OPPORTUNITY FOR FAIR HOUSING.
[(a) Authority.--Using any amounts available under subsection
(e), the Secretary of Housing and Urban Development shall carry
out a demonstration program to provide tenant-based assistance
under section 8 of the United States Housing Act of 1937 to
assist very low-income families with children who reside in
public housing or housing receiving project-based assistance
under section 8 of the United States Housing Act of 1937 to
move out of areas with high concentrations of persons living in
poverty to areas with low concentrations of such persons. The
demonstration program carried out under this section shall
compare and contrast the costs associated with implementing
such a program (including the costs of counseling, supportive
services, housing assistance payments and other relevant
program elements) with the costs associated with the routine
implementation of the section 8 tenant-based rental assistance
programs. The Secretary shall enter into annual contributions
contracts with public housing agencies to administer housing
assistance payments contracts under the demonstration.
[(b) Eligible Cities.--
[(1) In general.--The Secretary shall carry out the
demonstration only in cities with populations exceeding
350,000 that are located in consolidated metropolitan
statistical areas (as designated by the Director of the
Office of Management and Budget) having populations
exceeding 1,500,000.
[(2) 1993.--Notwithstanding paragraph (1), in fiscal
year 1993, only the 5 cities selected for the
demonstration under the item relating to ``Housing
Programs--annual contributions for assisted housing
(including rescission of funds)'' of title II of the
Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations
Act, 1992 (105 Stat. 745), and the City of Los Angeles,
California, shall be eligible for the demonstration
under this section.
[(c) Services.--The Secretary shall enter into contracts with
nonprofit organizations to provide counseling and services in
connection with the demonstration.
[(d) Reports.--
[(1) Biennial.--Not later than the expiration of the
2-year period beginning on the date of the enactment of
this Act (and biennially thereafter), the Secretary
shall submit interim reports to the Congress evaluating
the effectiveness of the demonstration program under
this section. The interim reports shall include a
statement of the number of persons served, the level of
counseling and the types of services provided, the cost
of providing such counseling and services, updates on
the employment record of families assisted under the
program, and any other information the Secretary
considers appropriate in evaluating the demonstration.
[(2) Final.--Not later than September 30, 2004, the
Secretary shall submit a final report to the Congress
describing the long-term housing, employment, and
educational achievements of the families assisted under
the demonstration program. Such report shall also
contain an assessment of such achievements for a
comparable population of section 8 recipients who have
not received assistance under the demonstration
program.
[(e) Funding.--The budget authority available under section
5(c) of the United States Housing Act of 1937 for tenant-based
assistance under section 8 of such Act is authorized to be
increased by $50,000,000, on or after October 1, 1992, and by
$165,000,000, on or after October 1, 1993, to carry out the
demonstration under this section. Any amounts made available
under this paragraph shall be used in connection with the
demonstration under this section.
[(f) Implementation.--The Secretary may, by notice published
in the Federal Register, establish any requirements necessary
to carry out the demonstration under this section and the
amendment made by this section. The Secretary shall publish
such notice not later than the expiration of the 90-day period
beginning on the date of the enactment of this Act and shall
submit a copy of such notice to the Congress not less than 15
days before publication.
[SEC. 153. DIRECTIVE TO FURTHER FAIR HOUSING OBJECTIVES UNDER
CERTIFICATE AND VOUCHER PROGRAMS.
[Not later than 2 years after the date of the enactment of
this Act, the Secretary of Housing and Urban Development, in
consultation with individuals representing fair housing
organizations, low-income tenants, public housing agencies, and
other interested parties, shall--
[(1) review and comment upon the study prepared by
the Comptroller General of the United States pursuant
to section 558(3) of the Cranston-Gonzalez National
Affordable Housing Act;
[(2) evaluate the implementation and effects of
existing demonstration and judicially mandated programs
that help minority families receiving section 8
certificates and vouchers move out of areas with high
concentrations of minority persons living in poverty to
areas with low concentrations, including how such
programs differ from the routine implementation of the
section 8 certificate and voucher programs;
[(3) independently assess factors (including the
adequacy of section 8 fair market rentals, the level of
counseling provided by public housing agencies, the
existence of racial and ethnic discrimination by
landlords) that may impede the geographic dispersion of
families receiving section 8 certificates and vouchers;
[(4) identify and implement any administrative
revisions that would enhance geographic dispersion and
tenant choice and incorporate the positive elements of
various demonstration and judicially mandated mobility
programs; and
[(5) submit to the Congress a report describing its
findings under paragraphs (1), (2), and (3), the
actions taken under paragraph (4), and any
recommendations for additional demonstration, research,
or legislative action.]
* * * * * * *
----------
SECTION 816 OF THE HOUSING ACT OF 1954
[audits under public housing act of 1937; comptroller general
[Sec. 816. Every contract for loans or annual contributions
under the United States Housing Act of 1937, as amended, shall
provide that the Secretary of Housing and Urban Development and
the Comptroller General of the United States, or any of their
duly authorized representatives, shall, for the purpose of
audit and examination, have access to any books, documents,
papers, and records of the public housing agency entering into
such contract that are pertinent to its operations with respect
to financial assistance under the United States Housing Act of
1937, as amended.]
----------
SECTION 302 OF THE NATIONAL HOUSING ACT
creation of association
Sec. 302. (a) * * *
(b)(1) * * *
(2) For the purposes set forth in section 301(a), the
corporation is authorized, pursuant to commitments or
otherwise, to purchase, service, sell, lend on the security of,
or otherwise deal in mortgages which are not insured or
guaranteed as provided in paragraph (1) (such mortgages
referred to hereinafter as ``conventional mortgages''). No such
purchase of a conventional mortgage secured by a property
comprising one- to four-family dwelling units shall be made if
the outstanding principal balance of the mortgage at the time
of purchase exceeds 80 per centum of the value of the property
securing the mortgage, unless (A) the seller retains a
participation of not less than 10 per centum in the mortgage;
(B) for such period and under such circumstances as the
corporation may require, the seller agrees to repurchase or
replace the mortgage upon demand of the corporation in the
event that the mortgage is in default; or (C) that portion of
the unpaid principal balance of the mortgage which is in excess
of such 80 per centum is guaranteed or insured by a qualified
insurer as determined by the corporation. The corporation shall
not issue a commitment to purchase a conventional mortgage
prior to the date the mortgage is originated, if such mortgage
is eligible for purchase under the preceding sentence only by
reason of compliance with the requirements of clause (A) of
such sentence. The corporation may purchase a conventional
mortgage which was originated more than one year prior to the
purchase date only if the seller is the Federal Deposit
Insurance Corporation, the Resolution Trust Corporation, the
National Credit Union Administration, or any other seller
currently engaged in mortgage lending or investing activities.
For the purpose of this section, the term ``conventional
mortgages'' shall include a mortgage, lien, or other security
interest on the stock or membership certificate issued to a
tenant-stockholder or resident-member of a cooperative housing
corporation, as defined in section 216 of the Internal Revenue
Code of 1954, and on the proprietary lease, occupancy
agreement, or right of tenancy in the dwelling unit of the
tenant-stockholder or resident-member in such cooperative
housing corporation. The corporation shall establish
limitations governing the maximum original principal obligation
of conventional mortgages that are purchased by it; in any case
in which the corporation purchases a participation interest in
such a mortgage, the limitation shall be calculated with
respect to the total original principal obligation of the
mortgage and not merely with respect to the interest purchased
by the corporation. Such limitations shall not exceed $93,750
for a mortgage secured by a single-family residence, $120,000
for a mortgage secured by a two-family residence, $145,000 for
a mortgage secured by a three-family residence, and $180,000
for a mortgage secured by a four-family residence, except that
such maximum limitations shall be adjusted effective January 1
of each year beginning with 1981. Each such adjustment shall be
made by adding to each such amount (as it may have been
previously adjusted) a percentage thereof equal to the
percentage increase during the twelve-month period ending with
the previous October in the national average one-family house
price in the monthly survey of all major lenders conducted by
the Federal Housing Finance Board. [With respect to mortgages
secured by property comprising five or more family dwelling
units, such limitations shall not exceed 125 per centum of the
dollar amounts set forth in section 207(c)(3) of this Act,
except that such limitations may be increased by the
corporation (taking into account construction costs) to not to
exceed 240 per centum of such dollar amounts in any
geographical area for which the Secretary of Housing and Urban
Development determines under such section that cost levels
require any increase in the dollar amount limitations under
such section.] The foregoing limitations may be increased by
not to exceed 50 per centum with respect to properties located
in Alaska, Guam, Hawaii, and the Virgin Islands.
* * * * * * *
----------
SECTION 305 OF THE EMERGENCY HOME FINANCE ACT OF 1979
mortgage operations
Sec. 305. (a)(1) * * *
(2) No conventional mortgages secured by a property
comprising one- to four-family dwelling units shall be
purchased under this section if the outstanding principal
balance of the mortgage at the time of purchase exceeds 80 per
centum of the value of the property securing the mortgage,
unless (A) the seller retains a participation of not less than
10 per centum in the mortgage; (B) for such period and under
such circumstances as the Corporation may require, the seller
agrees to repurchase or replace the mortgage upon demand of the
Corporation in the event that the mortgage is in default; or
(C) that portion of the unpaid principal balance of the
mortgage which is in excess of such 80 per centum is guaranteed
or insured by a qualified insurer as determined by the
Corporation. The Corporation shall not issue a commitment to
purchase a conventional mortgage prior to the date the mortgage
is originated, if such mortgage is eligible for purchase under
the preceding sentence only by reason of compliance with the
requirements of clause (A) of such sentence. The Corporation
may purchase a conventional mortgage which was originated more
than one year prior to the purchase date only if the seller is
the Federal Deposit Insurance Corporation, the Resolution Trust
Corporation, the National Credit Union Administration, or any
other seller currently engaged in mortgage lending or investing
activities. With respect to any transaction in which a seller
contemporaneously sells mortgages originated more than one year
old prior to the date of sale to the Corporation and receives
in payment for such mortgages securities representing undivided
interests only in those mortgages, the Corporation shall not
impose any fee or charge upon an eligible seller which is not a
member of a Federal Home Loan Bank which differs from that
imposed upon an eligible seller which is such a member. The
Corporation shall establish limitations governing the maximum
original principal obligation of conventional mortgages that
are purchased by it; in any case in which the Corporation
purchases a participation interest in such a mortgage, the
limitation shall be calculated with respect to the total
original principal obligation of the mortgage and not merely
with respect to the interest purchased by the Corporation. Such
limitations shall not exceed $93,750 for a mortgage secured by
a single-family residence, $120,000 for a mortgage secured by a
two-family residence, and $180,000 for a mortgage secured by a
three-family residence, and $180,000 for a mortgage secured by
a four-family residence, except that such maximum limitations
shall be adjusted effective January 1 of each year beginning
with 1981. Each such adjustment shall be made by adding to each
such amount (as it may have been previously adjusted) a
percentage thereof equal to the percentage increase during the
twelve-month period ending with the previous October in the
national average one-family house price in the monthly survey
of all major lenders conducted by the Federal Housing Finance
Board. [With respect to mortgages secured by property
comprising five or more family dwelling units, such limitations
shall not exceed 125 per centum of the dollar amounts set forth
in section 207(c)(3) of the National Housing Act, except that
such limitations may be increased by the Corporation (taking
into account construction costs) to not to exceed 240 per
centum of such dollar amounts in any geographical area for
which the Secretary of Housing and Urban Development determines
under such section that cost levels require any increase in the
dollar amount limitations under such section.] The foregoing
limitations may be increased by not to exceed 50 per centum
with respect to properties located in Alaska, Guam, Hawaii, and
the Virgin Islands.
* * * * * * *
----------
HOUSING AND COMMUNITY DEVELOPMENT AMENDMENTS OF 1981
* * * * * * *
TITLE III--BANKING, HOUSING, AND RELATED PROGRAMS
Subtitle A--Housing and Community Development
* * * * * * *
PART 2--HOUSING ASSISTANCE PROGRAMS
* * * * * * *
miscellaneous housing assistance provisions
Sec. 326. (a) * * *
* * * * * * *
[(b)(1) Within one year after the date of enactment of this
Act, the Secretary of Housing and Urban Development shall
conduct a survey to determine the number of projects which are
assisted under section 8 of the United States Housing Act of
1937 and are owned by developers or sponsors with five-year
annual contributions contracts who plan to withdraw from the
section 8 program when their contracts expire and who will
increase rents in those projects to levels that the current
residents of those projects will not be able to afford. Where
such survey indicates that an owner intends to withdraw from
the program, the Secretary shall notify affected residents of
possible rent increases.]
* * * * * * *
[(c) The Secretary of Housing and Urban Development, after
consultation with the Attorney General, shall develop
regulations to prevent possible conflicts of interest on the
part of Federal, State, and local government officials with
regard to participation in projects assisted under section 8 of
the United States Housing Act of 1937, and shall make such
regulations effective not later than 180 days after the date of
enactment of this Act.
[(d) Rental Assistance Fraud Recoveries.--
[(1) Authority to retain recovered amounts.--The
Secretary of Housing and Urban Development shall permit
public housing agencies administering the housing
assistance payments program under section 8 of the
United States Housing Act of 1937 to retain, out of
amounts obtained by the agencies from tenants that are
due as a result of fraud and abuse, an amount
(determined in accordance with regulations issued by
the Secretary) equal to the greater of--
[(A) 50 percent of the amount actually
collected, or
[(B) the actual, reasonable, and necessary
expenses related to the collection, including
costs of investigation, legal fees, and
collection agency fees.
[(2) Use.--Amounts retained by an agency shall be
made available for use in support of the affected
program or project, in accordance with regulations
issued by the Secretary. Where the Secretary is the
principal party initiating or sustaining an action to
recover amounts from families or owners, the provisions
of this section shall not apply.
[(3) Recovery.--Amounts may be recovered under this
paragraph--
[(A) by an agency through a lawsuit
(including settlement of the lawsuit) brought
by the agency or through court-ordered
restitution pursuant to a criminal proceeding
resulting from an agency's investigation where
the agency seeks prosecution of a family or
where an agency seeks prosecution of an owner;
or
[(B) through administrative repayment
agreements with a family or owner entered into
as a result of an administrative grievance
procedure conducted by an impartial
decisionmaker in accordance with section 6(k)
of the United States Housing Act of 1937.]
* * * * * * *
[Sec. 329A. The Secretary of Housing and Urban Development
shall develop and implement a revised fee schedule for
development managers of lower income housing projects assisted
under the United States Housing Act of 1937 so that the
percentage limitation applicable to fees chargeable in
connection with smaller projects is increased to a minimum
level which is practicable.]
* * * * * * *
----------
DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND URBAN DEVELOPMENT, AND
INDEPENDENT AGENCIES APPROPRIATIONS ACT, 1991
* * * * * * *
TITLE II
DEPARTMENT OF HOUSING AND URBAN
DEVELOPMENT
* * * * * * *
Management and Administration
* * * * * * *
administrative provisions
* * * * * * *
[Notwithstanding any other provision of law, regulation or
other requirement, the Secretary shall not require any public
housing agency or Indian housing authority to seek competitive
bids for the procurement of any line of insurance when such
public housing agency or Indian housing authority purchases
such line of insurance from a nonprofit insurance entity, owned
and controlled by public housing agencies or Indian housing
authorities, and approved by the Secretary. In establishing
standards for approval of such nonprofit insurance entities,
the Secretary shall be assured that such entities have
sufficient surplus capital to meet reasonably expected losses,
reliable accounting systems, sound actuarial projections, and
employees experienced in the insurance industry. The Secretary
shall not place restrictions on the investment of funds of any
such entity that is regulated by the insurance department of
any State that describes the types of investments insurance
companies licensed in such State may make. With regard to such
entities that are not so regulated, the Secretary may establish
investment guidelines that are comparable to State law
regulating the investments of insurance companies.]
* * * * * * *
----------
HOUSING AND URBAN-RURAL RECOVERY ACT OF 1983
* * * * * * *
TITLE II--HOUSING ASSISTANCE PROGRAMS
* * * * * * *
[PUBLIC HOUSING EARLY CHILDHOOD DEVELOPMENT PROGRAM
[Sec. 222. (a) Program Authority.--
[(1) The Secretary of Housing and Urban Development
shall, to the extent approved in appropriation Acts,
carry out a demonstration program of making grants to
nonprofit organizations to assist such organizations in
providing early childhood development services in or
near lower income housing projects for lower income
families who reside in public housing.
[(2) The Secretary shall design the program described
in paragraph (1) to determine the extent to which the
availability of early childhood development services in
or near lower income housing projects facilitates the
employability of the parents or guardians of children
residing in public housing.
[(b) Eligibility for Assistance.--The Secretary may make a
grant to a nonprofit organization for early childhood
development services in or near a lower income housing project
only if--
[(1) prior to receipt of assistance under this
section, an early childhood development program is not
in operation for the project;
[(2) the public housing agency agrees to provide
suitable facilities in or near the project for the
provision of early childhood development services;
[(3) the early childhood development program for the
project will serve preschool children during the day,
school children after school, or both, in order to
permit the parents orguardians of such children to
obtain, retain, or train for employment;
[(4) the early childhood development program for the
project is designed, to the extent practicable, to
involve the participation of the parents of children
benefiting from such program;
[(5) the early childhood development program for the
project is designed, to the extent practicable, to
employ in part-time positions elderly individuals who
reside in the lower income housing project involved;
and
[(6) the early childhood development program for the
project complies with all applicable State and local
laws, regulations, and ordinances.
[(c) Allocation of Assistance.--In providing grants under
this section, the Secretary shall--
[(1) give priority to nonprofit organizations
providing early childhood development services in or
near lower income housing projects in which reside the
largest number of preschool and school children of
lower income families;
[(2) seek to ensure a reasonable distribution of such
grants between urban and rural areas and among
nonprofit organizations providing early childhood
development services in or near lower income housing
projects of varying sizes; and
[(3) seek to provide such grants to the largest
number of nonprofit organizations practicable,
considering the amount of funds available under this
section and the financial requirements of the
particular early childhood development programs to be
established for the lower income housing projects for
which applications are submitted under this section.
[(d) Administrative Provisions.--
[(1) Applications for grants under this section shall
be made by nonprofit organizations (in consultation
with public housing agencies) in such form, and
according to such procedures, as the Secretary may
prescribe.
[(2) Any nonprofit organization receiving a grant
under this section may use such grant only for
operating expenses and minor renovations of facilities
necessary to the provision of early childhood
development services under this section.
[(3) The Secretary shall conduct periodic evaluations
of each early childhood development program assisted
under this section for purposes of--
[(A) determining the effectiveness of such
program in providing early childhood
development services and permitting the parents
or guardians of children residing in public
housing to obtain, retain, or train for
employment; and
[(B) ensuring compliance with the provisions
of this section.
[(4) No provision of this section may be construed to
authorize the Secretary to establish any health,
safety, educational, or other standards with respect to
early childhood development services or facilities
assisted with grants received under this section. Such
services and facilities shall comply with all
applicable State and local laws, regulations, and
ordinances, and all requirements established by the
Secretary of Health and Human Services for early
childhood development services and facilities.
[(e) Report to Congress.--Not later than the expiration of
the 3-year period following the date of the enactment of the
Housing and Community Development Act of 1987, the Secretary
shall prepare and submit to the Congress a detailed report
setting forth the findings and conclusions of the Secretary as
a result of carrying out the demonstration program established
in this section. Such report shall include any recommendations
of the Secretary with respect to the establishment of a
permanent program of assisting early childhood development
services in or near lower income housing projects.
[(f) Definitions.--For purposes of this section:
[(1) The term ``lower income families'' has the
meaning given such term in section 3(b)(2) of the
United States Housing Act of 1937.
[(2) The terms ``lower income housing project'' and
``public housing'' have the meanings given such terms
in section 3(b)(1) of the United States Housing Act of
1937.
[(3) The term ``public housing agency'' has the
meaning given such term in section 3(b)(6) of the
United States Housing Act of 1937.
[(4) The term ``Secretary'' means the Secretary of
Housing and Urban Development.
[(g) Authorization of Appropriations.--To the extent provided
in appropriation Acts, of any amounts appropriated for fiscal
year 1993 under section 103 of the Housing and Community
Development Act of 1974, $5,000,000 shall be available to carry
out this section. To the extent approved in appropriation Acts,
of any amounts appropriated for fiscal year 1994 under section
5(c) of the United States Housing Act of 1937 for grants for
the development of public housing, $5,210,000 shall be
available to carry out this section. Any such amounts shall
remain available until expended.]
* * * * * * *
[pet ownership in assisted rental housing for the elderly or
handicapped
[Sec. 227. (a) No owner or manager of any federally
assisted rental housing for the elderly or handicapped may--
[(1) as a condition of tenancy or otherwise, prohibit
or prevent any tenant in such housing from owning
common household pets or having common household pets
living in the dwelling accommodations of such tenant in
such housing; or
[(2) restrict or discriminate against any person in
connection with admission to, or continued occupancy
of, such housing by reason of the ownership of such
pets by, or the presence of such pets in the dwelling
accommodations of, such person.
[(b)(1) Not later than the expiration of the twelve-month
period following the date of the enactment of this Act, the
Secretary of Housing and Urban Development and the Secretary of
Agriculture shall each issue such regulations as may be
necessary to ensure (A) compliance with the provisions of
subsection (a) with respectto any program of assistance
referred to in subsection (d) that is administered by such Secretary;
and (B) attaining the goal of providing decent, safe, and sanitary
housing for the elderly or handicapped.
[(2) Such regulations shall establish guidelines under
which the owner or manager of any federally assisted rental
housing for the elderly or handicapped (A) may prescribe
reasonable rules for the keeping of pets by tenants in such
housing; and (B) shall consult with the tenants of such housing
in prescribing such rules. Such rules may consider factors such
as density of tenants, pet size, types or pets, potential
financial obligations of tenants, and standards of pet care.
[(c) Nothing in this section may be construed to prohibit
any owner or manager of federally assisted rental housing for
the elderly or handicapped, or any local housing authority or
other appropriate authority of the community where such housing
is located, from requiring the removal from any such housing of
any pet whose conduct or condition is duly determined to
constitute a nuisance or a threat to the health or safety of
the other occupants of such housing or of other persons in the
community where such housing is located.
[(d) For purposes of this section, the term ``federally
assisted rental housing for the elderly or handicapped'' means
any rental housing project that--
[(1) is assisted under section 202 of the Housing Act
of 1959; or
[(2) is assisted under the United States Housing Act
of 1937, the National Housing Act, or title V of the
Housing Act of 1949, and is designated for occupancy by
elderly or handicapped families, as such term is
defined in section 202(d)(4) of the Housing Act of
1959.]
SEC. 227. PET OWNERSHIP IN FEDERALLY ASSISTED RENTAL HOUSING.
(a) Right of Ownership.--A resident of a dwelling unit in
federally assisted rental housing may own common household pets
or have common household pets present in the dwelling unit of
such resident, subject to the reasonable requirements of the
owner of the federally assisted rental housing and providing
that the resident maintains the animals responsibly and in
compliance with applicable local and State public health,
animal control, and anticruelty laws. Such reasonable
requirements may include requiring payment of a nominal fee and
pet deposit by residents owning or having pets present, to
cover the operating costs to the project relating to the
presence of pets and to establish an escrow account for
additional such costs not otherwise covered, respectively.
Notwithstanding section 225(d) of the Housing Opportunity and
Responsibility Act of 1997, a public housing agency may not
grant any exemption under such section from payment, in whole
or in part, of any fee or deposit required pursuant to the
preceding sentence.
(b) Prohibition Against Discrimination.--No owner of
federally assisted rental housing may restrict or discriminate
against any person in connection with admission to, or
continued occupancy of, such housing by reason of the ownership
of common household pets by, or the presence of such pets in
the dwelling unit of, such person.
(c) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Federally assisted rental housing.--The term
``federally assisted rental housing'' means any
multifamily rental housing project that is--
(A) public housing (as such term is defined
in section 103 of the Housing Opportunity and
Responsibility Act of 1997);
(B) assisted with project-based assistance
pursuant to section 601(f) of the Housing
Opportunity and Responsibility Act of 1997 or
under section 8 of the United States Housing
Act of 1937 (as in effect before the effective
date of the repeal under section 601(b) of the
Housing Opportunity and Responsibility Act of
1997);
(C) assisted under section 202 of the Housing
Act of 1959 (as amended by section 801 of the
Cranston-Gonzalez National Affordable Housing
Act);
(D) assisted under section 202 of the Housing
Act of 1959 (as in effect before the enactment
of the Cranston-Gonzalez National Affordable
Housing Act);
(E) assisted under title V of the Housing Act
of 1949; or
(F) insured, assisted, or held by the
Secretary or a State or State agency under
section 236 of the National Housing Act.
(2) Owner.--The term ``owner'' means, with respect to
federally assisted rental housing, the entity or
private person, including a cooperative or public
housing agency, that has the legal right to lease or
sublease dwelling units in such housing (including a
manager of such housing having such right).
(d) Regulations.--This section shall take effect upon the
date of the effectiveness of regulations issued by the
Secretary to carry out this section. Such regulations shall be
issued not later than the expiration of the 1-year period
beginning on the date of the enactment of the Housing
Opportunity and Responsibility Act of 1997 and after notice and
opportunity for public comment in accordance with the procedure
under section 553 of title 5, United States Code, applicable to
substantive rules (notwithstanding subsections (a)(2), (b)(B),
and (d)(3) of such section).
* * * * * * *
----------
SECTION 415 OF THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT--
INDEPENDENT AGENCIES APPROPRIATIONS ACT, 1988
[Sec. 415. None of the funds appropriated by this Act or any
other Act for any fiscal year shall be used for demolishing
George Loving Place, at 3320 Rupert Street, Edgar Ward Place,
at 3901Holystone, Elmer Scott Place, at 2600 Morris, in Dallas,
Texas, or Allen Parkway Village, 1600 Allen Parkway, in Houston,
Texas.]
----------
SECTION 202 OF THE DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND
URBAN DEVELOPMENT, AND INDEPENDENT AGENCIES APPRORIATIONS ACT, 1996
[conversion of certain public housing to vouchers
[Sec. 202. (a) Identification of Units.--Each public housing
agency shall identify any public housing developments--
[(1) that are on the same or contiguous sites;
[(2) that total more than 300 dwelling units;
[(3) that have a vacancy rate of at least 10 percent
for dwelling units not in funded, on-schedule
modernization programs;
[(4) identified as distressed housing that the public
housing agency cannot assure the long-term viability as
public housing through reasonable revitalization,
density reduction, or achievement of a broader range of
household income; and
[(5) for which the estimated cost of continued
operation and modernization of the developments as
public housing exceeds the cost of providing tenant-
based assistance under section 8 of the United States
Housing Act of 1937 for all families in occupancy,
based on appropriate indicators of cost (such as the
percentage of total development cost required for
modernization).
[(b) Implementation and Enforcement.--
[(1) Standards for implementation.--The Secretary
shall establish standards to permit implementation of
this section in fiscal year 1996.
[(2) Consultation.--Each public housing agency shall
consult with the applicable public housing tenants and
the unit of general local government in identifying any
public housing developments under subsection (a).
[(3) Failure of phas to comply with subsection (a).--
Where the Secretary determines that--
[(A) a public housing agency has failed under
subsection (a) to identify public housing
developments for removal from the inventory of
the agency in a timely manner;
[(B) a public housing agency has failed to
identify one or more public housing
developments which the Secretary determines
should have been identified under subsection
(a); or
[(C) one or more of the developments
identified by the public housing agency
pursuant to subsection (a) should not, in the
determination of the Secretary, have been
identified under that subsection;
the Secretary may designate the developments to be
removed from the inventory of the public housing agency
pursuant to this section.
[(c) Removal of Units From the Inventories of Public Housing
Agencies.--
[(1) Each public housing agency shall develop and
carry out a plan in conjunction with the Secretary for
the removal of public housing units identified under
subsection (a) or subsection (b)(3), over a period of
up to five years, from the inventory of the public
housing agency and the annual contributions contract.
The plan shall be approved by the relevant local
official as not inconsistent with the Comprehensive
Housing Affordability Strategy under title I of the
Housing and Community Development Act of 1992,
including a description of any disposition and
demolition plan for the public housing units.
[(2) The Secretary may extend the deadline in
paragraph (1) for up to an additional five years where
the Secretary makes a determination that the deadline
is impracticable.
[(3) The Secretary shall take appropriate actions to
ensure removal of developments identified under
subsection (a) or subsection (b)(3) from the inventory
of a public housing agency, if the public housing
agency fails to adequately develop a plan under
paragraph (1), or fails to adequately implement such
plan in accordance with the terms of the plan.
[(4) To the extent approved in appropriations Acts,
the Secretary may establish requirements and provide
funding under the Urban Revitalization Demonstration
program for demolition and disposition of public
housing under this section.
[(5) Notwithstanding any other provision of law, if a
development is removed from the inventory of a public
housing agency and the annual contributions contract
pursuant to paragraph (1), the Secretary may authorize
or direct the transfer of--
[(A) in the case of an agency receiving
assistance under the comprehensive improvement
assistance program, any amounts obligated by
the Secretary for the modernization of such
development pursuant to section 14 of the
United States Housing Act of 1937;
[(B) in the case of an agency receiving
public and Indian housing modernization
assistance by formula pursuant to section 14 of
the United States Housing Act of 1937, any
amounts provided to the agency which are
attributable pursuant to the formula for
allocating such assistance to the development
removed from the inventory of that agency; and
[(C) in the case of an agency receiving
assistance for the major reconstruction of
obsolete projects, any amounts obligated by the
Secretary for the major reconstruction of the
development pursuant to section 5 of such Act,
to the tenant-based assistance program or appropriate
site revitalization of such agency.
[(6) Cessation of unnecessary spending.--
Notwithstanding any other provision of law, if, in the
determination of the Secretary, a development meets or
is likely to meet the criteria set forth in subsection
(a), the Secretary may direct the public housing agency
to cease additional spending in connection with the
development, except to the extent that
additionalspending is necessary to ensure decent, safe, and sanitary
housing until the Secretary determines or approves an appropriate
course of action with respect to such development under this section.
[(d) Conversion to Tenant-Based Assistance.--
[(1) The Secretary shall make authority available to
a public housing agency to provide tenant-based
assistance pursuant to section 8 to families residing
in any development that is removed from the inventory
of the public housing agency and the annual
contributions contract pursuant to subsection (b).
[(2) Each conversion plan under subsection (c)
shall--
[(A) require the agency to notify families
residing in the development, consistent with
any guidelines issued by the Secretary
governing such notifications, that the
development shall be removed from the inventory
of the public housing agency and the families
shall receive tenant-based or project-based
assistance, and to provide any necessary
counseling for families; and
[(B) ensure that all tenants affected by a
determination under this section that a
development shall be removed from the inventory
of a public housing agency shall be offered
tenant-based or project-based assistance and
shall be relocated, as necessary, to other
decent, safe, sanitary, and affordable housing
which is, to the maximum extent practicable,
housing of their choice.
[(e) In General.--
[(1) The Secretary may require a public housing
agency to provide such information as the Secretary
considers necessary for the administration of this
section.
[(2) As used in this section, the term
``development'' shall refer to a project or projects,
or to portions of a project or projects, as
appropriate.
[(3) Section 18 of the United States Housing Act of
1937 shall not apply to the demolition of developments
removed from the inventory of the public housing agency
under this section.]
----------
SECTION 202 OF THE HOUSING ACT OF 1959
SEC. 202. SUPPORTIVE HOUSING FOR THE ELDERLY.
(a) * * *
* * * * * * *
(l) Allocation of Funds.--
(1) * * *
* * * * * * *
(4) Consideration in allocating assistance.--
Assistance under this section shall be allocated in a
manner that ensures that the awards of the assistance
are made for projects of sufficient size to accommodate
facilities for supportive services appropriate to the
needs of frail elderly residents.
* * * * * * *
----------
ANTI-DRUG ABUSE ACT OF 1988
* * * * * * *
TITLE V--USER ACCOUNTABILITY
SEC. 5001. TABLE OF CONTENTS.
The table of contents for this title is as follows:
TITLE V--USER ACCOUNTABILITY
Sec. 5001. Table of contents.
Subtitle A--Opposition to Legalization and Public Awareness
* * * * * * *
Subtitle C--Preventing Drug Abuse in Public Housing
Chapter 1--Regulatory and Enforcement Provisions
* * * * * * *
[Chapter 2--Public and Assisted Housing Drug Elimination]
Chapter 2--Community Partnerships Against Crime
Sec. 5121. Short title.
[Sec. 5122. Congressional findings.]
Sec. 5122. Purposes.
* * * * * * *
[Sec. 5125. Applications.]
Sec. 5125. Grant procedures.
* * * * * * *
[Sec. 5130. Authorization of appropriations.]
Sec. 5130. Funding.
* * * * * * *
Subtitle C--Preventing Drug Abuse in Public Housing
* * * * * * *
[CHAPTER 2--PUBLIC AND ASSISTED HOUSING DRUG ELIMINATION
[SEC. 5121. SHORT TITLE.
[This chapter may be cited as the ``Public and Assisted
Housing Drug Elimination Act of 1990''.
[SEC. 5122. CONGRESSIONAL FINDINGS.
[The Congress finds that--
[(1) the Federal Government has a duty to provide
public and other federally assisted low-income housing
that is decent, safe, and free from illegal drugs;
[(2) public and other federally assisted low-income
housing in many areas suffers from rampant drug-related
crime;
[(3) drug dealers are increasingly imposing a reign
of terror on public and other federally assisted low-
income housing tenants;
[(4) the increase in drug-related crime not only
leads to murders, muggings, and other forms of violence
against tenants, but also to a deterioration of the
physical environment that requires substantial
government expenditures; and
[(5) local law enforcement authorities often lack the
resources to deal with the drug problem in public and
other federally assisted low-income housing,
particularly in light of the recent reductions in
Federal aid to cities.
[SEC. 5123. AUTHORITY TO MAKE GRANTS.
[The Secretary of Housing and Urban Development, in
accordance with the provisions of this chapter, may make grants
to public housing agencies (including Indian Housing
Authorities), public housing resident management corporations
that are principally managing, as determined by the Secretary,
public housing projects owned by public housing agencies, and
private, for-profit and nonprofit owners of federally assisted
low-income housing for use in eliminating drug-related crime.]
CHAPTER 2--COMMUNITY PARTNERSHIPS AGAINST CRIME
SEC. 5121. SHORT TITLE.
This chapter may be cited as the ``Community Partnerships
Against Crime Act of 1997''.
SEC. 5122. PURPOSES.
The purposes of this chapter are to--
(1) improve the quality of life for the vast majority
of law-abiding public housing residents by reducing the
levels of fear, violence, and crime in their
communities;
(2) broaden the scope of the Public and Assisted
Housing Drug Elimination Act of 1990 to apply to all
types of crime, and not simply crime that is drug-
related; and
(3) reduce crime and disorder in and around public
housing through the expansion of community-oriented
policing activities and problem solving.
SEC. 5123. AUTHORITY TO MAKE GRANTS.
The Secretary of Housing and Urban Development may make
grants in accordance with the provisions of this chapter for
use in eliminating crime in and around public housing and other
federally assisted low-income housing projects to (1) public
housing agencies, and (2) private, for-profit and nonprofit
owners of federally assisted low-income housing.
SEC. 5124. ELIGIBLE ACTIVITIES.
(a) Public and Assisted Housing.--Grants under this chapter
may be used in and around public housing or other federally
assisted low-income housing projects for--
(1) the employment of security personnel;
(2) reimbursement of local law enforcement agencies
for additional security and protective services;
(3) physical improvements which are specifically
designed to enhance security, including fencing,
lighting, locking, and surveillance systems;
(4) the employment of one or more individuals--
[(A) to investigate drug-related crime on or
about the real property comprising any public
or other federally assisted low-income housing
project; and]
(A) to investigate crime; and
(B) to provide evidence relating to such
crime in any administrative or judicial
proceeding;
(5) the provision of training, communications
equipment, and other related equipment for use by
voluntary tenant patrols acting in cooperation with
local law enforcement officials;
(6) programs designed to reduce use of drugs [in and
around public or other federally assisted low-income
housing projects], including drug-abuse prevention,
intervention, referral, and treatment programs; [and]
[(7) where a public housing agency receives a grant,
providing funding to nonprofit public housing resident
management corporations and resident councils to
develop security and drug abuse prevention programs
involving site residents.]
(7) providing funding to nonprofit public housing
resident management corporations and resident councils
to develop security and crime prevention programs
involving site residents;
(8) the employment or utilization of one or more
individuals, including law enforcement officers, made
available by contract or other cooperative arrangement
with State or local law enforcement agencies, to engage
in community- and problem-oriented policing involving
interaction with members of the community in proactive
crime control and prevention activities;
(9) programs and activities for or involving youth,
including training, education, recreation and sports,
career planning, and entrepreneurship and employment
activities and after school and cultural programs; and
(10) service programs for residents that address the
contributing factors of crime, including programs for
job training, education, drug and alcohol treatment,
and other appropriate social services.
(b) Other PHA-Owned Housing.--Notwithstanding any other
provision of this chapter, grants under this chapter may be
used to eliminate [drug-related crime in housing owned by
public housing agencies] crime in and around housing owned by
local housing and management authorities that is not public
housing assisted under the United States Housing Act of 1937
and is not otherwise federally assisted, for the activities
described in paragraphs (1) through [(7)] 10 of subsection (a),
but only if--
(1) the housing is located in a high intensity drug
trafficking area designated pursuant to section 1005 of
this Act; and
(2) the local housing and management authority owning
the housing demonstrates, to the satisfaction of the
Secretary, that [drug-related] criminal activity at the
housing has adetrimental effect on or about the real
property comprising any public or other federally assisted low-income
housing.
[SEC. 5125. APPLICATIONS.
[(a) In General.--To receive a grant under this chapter, a
public housing agency, a public housing resident management
corporation, or an owner of federally assisted low-income
housing shall submit an application to the Secretary, at such
time, in such manner, and accompanied by such additional
information as the Secretary may reasonably require. Such
application shall include a plan for addressing the problem of
drug-related crime on the premises of the housing administered
or owned by the applicant for which the application is being
submitted.
[(b) Criteria.--Except as provided by subsections (c) and (d)
the Secretary shall approve applications under this chapter
based exclusively on--
[(1) the extent of the drug-related crime problem in
the public or federally assisted low-income housing
project or projects proposed for assistance;
[(2) the quality of the plan to address the crime
problem in the public or federally assisted low-income
housing project or projects proposed for assistance,
including the extent to which the plan includes
initiatives that can be sustained over a period of
several years;
[(3) the capability of the applicant to carry out the
plan; and
[(4) the extent to which tenants, the local
government and the local community support and
participate in the design and implementation of the
activities proposed to be funded under the application.
[(c) Federally Assisted Low-Income Housing.--In addition to
the selection criteria specified in subsection (b), the
Secretary may establish other criteria for the evaluation of
applications submitted by owners of federally assisted low-
income housing, except that such additional criteria shall be
designed only to reflect--
[(1) relevant differences between the financial
resources and other characteristics of public housing
authorities and owners of federally assisted low-income
housing, or
[(2) relevant differences between the problem of
drug-related crime in public housing and the problem of
drug-related crime in federally assisted low-income
housing.
[(d) High Intensity Drug Trafficking Areas.--In evaluating
the extent of the drug-related crime problem pursuant to
subsection (b), the Secretary may consider whether housing
projects proposed for assistance are located in a high
intensity drug trafficking area designated pursuant to section
1005 of the Anti-Drug Abuse Act of 1988.]
SEC. 5125. GRANT PROCEDURES.
(a) PHA's With 250 or More Units.--
(1) Grants.--In each fiscal year, the Secretary shall
make a grant under this chapter from any amounts
available under section 5***(b)(1) for the fiscal year
to each of the following public housing agencies:
(A) New applicants.--Each public housing
agency that owns or operates 250 or more public
housing dwelling units and has--
(i) submitted an application to the
Secretary for a grant for such fiscal
year, which includes a 5-year crime
deterrence and reduction plan under
paragraph (2); and
(ii) had such application and plan
approved by the Secretary.
(B) Renewals.--Each public housing agency
that owns or operates 250 or more public
housing dwelling units and for which--
(i) a grant was made under this
chapter for the preceding Federal
fiscal year;
(ii) the term of the 5-year crime
deterrence and reduction plan
applicable to such grant includes the
fiscal year for which the grant under
this subsection is to be made; and
(iii) the Secretary has determined,
pursuant to a performance review under
paragraph (4), that during the
preceding fiscal year the agency has
substantially fulfilled the
requirements under subparagraphs (A)
and (B) of paragraph (4).
Notwithstanding subparagraphs (A) and (B), the
Secretary may make a grant under this chapter to a
public housing agency that owns or operates 250 or more
public housing dwelling units only if the agency
includes in the application for the grant information
that demonstrates, to the satisfaction of the
Secretary, that the agency has a need for the grant
amounts based on generally recognized crime statistics
showing that (I) the crime rate for the public housing
developments of the agency (or the immediate
neighborhoods in which such developments are located)
is higher than the crime rate for the jurisdiction in
which the agency operates, (II) the crime rate for the
developments (or such neighborhoods) is increasing over
a period of sufficient duration to indicate a general
trend, or (III) the operation of the program under this
chapter substantially contributes to the reduction of
crime.
(2) 5-year crime deterrence and reduction plan.--Each
application for a grant under this subsection shall
contain a 5-year crime deterrence and reduction plan.
The plan shall be developed with the participation of
residents and appropriate law enforcement officials.
The plan shall describe, for the public housing agency
submitting the plan--
(A) the nature of the crime problem in public
housing owned or operated by the public housing
agency;
(B) the building or buildings of the public
housing agency affected by the crime problem;
(C) the impact of the crime problem on
residents of such building or buildings; and
(D) the actions to be taken during the term
of the plan to reduce and deter such crime,
which shall include actions involving
residents, law enforcement, and service
providers.
The term of a plan shall be the period consisting of 5
consecutive fiscal years, which begins with the first
fiscal year for which funding under this chapter is
provided to carry out the plan.
(3) Amount.--In any fiscal year, the amount of the
grant for a public housing agency receiving a grant
pursuant to paragraph (1) shall be the amount that
bears the same ratio to the total amount made available
under section 5***(b)(1) as the total number of public
dwelling units owned or operated by such agency bears
to the total number of dwelling units owned or operated
by all public housing agencies that own or operate 250
or more public housing dwelling units that are approved
for such fiscal year.
(4) Performance review.--For each fiscal year, the
Secretary shall conduct a performance review of the
activities carried out by each public housing agency
receiving a grant pursuant to this subsection to
determine whether the agency--
(A) has carried out such activities in a
timely manner and in accordance with its 5-year
crime deterrence and reduction plan; and
(B) has a continuing capacity to carry out
such plan in a timely manner.
(5) Submission of applications.--The Secretary shall
establish such deadlines and requirements for
submission of applications under this subsection.
(6) Review and determination.--The Secretary shall
review each application submitted under this subsection
upon submission and shall approve the application
unless the application and the 5-year crime deterrence
and reduction plan are inconsistent with the purposes
of this chapter or any requirements established by the
Secretary or the information in the application or plan
is not substantially complete. Upon approving or
determining not to approve an application and plan
submitted under this subsection, the Secretary shall
notify the public housing agency submitting the
application and plan of such approval or disapproval.
(7) Disapproval of applications.--If the Secretary
notifies an agency that the application and plan of the
agency is not approved, not later than the expiration
of the 15-day period beginning upon such notice of
disapproval, the Secretary shall also notify the
agency, in writing, of the reasons for the disapproval,
the actions that the agency could take to comply with
the criteria for approval, and the deadlines for such
actions.
(8) Failure to approve or disapprove.--If the
Secretary fails to notify an agency of approval or
disapproval of an application and plan submitted under
this subsection before the expiration of the 60-day
period beginning upon the submission of the plan or
fails to provide notice under paragraph (7) within the
15-day period under such paragraph to an agency whose
application has been disapproved, the application and
plan shall be considered to have been approved for
purposes of this section.
(b) PHA's With Fewer Than 250 Units and Owners of Federally
Assisted Low-Income Housing.--
(1) Applications and plans.--To be eligible to
receive a grant under this chapter, a public housing
agency that owns or operates fewer than 250 public
housing dwelling units or an owner of federally
assisted low-income housing shall submit an application
to the Secretary at such time, in such manner, and
accompanied by such additional information as the
Secretary may require. The application shall include a
plan for addressing the problem of crime in and around
the housing for which the application is submitted,
describing in detail activities to be conducted during
the fiscal year for which the grant is requested.
(2) Grants for pha's with fewer than 250 units.--In
each fiscal year the Secretary may, to the extent
amounts are available under section 5***(b)(2), make
grants under this chapter to public housing agencies
that own or operate fewer than 250 public housing
dwelling units and have submitted applications under
paragraph (1) that the Secretary has approved pursuant
to the criteria under paragraph (4).
(3) Grants for federally assisted low-income
housing.--In each fiscal year the Secretary may, to the
extent amounts are available under section 5***(b)(3),
make grants under this chapter to owners of federally
assisted low-income housing that have submitted
applications under paragraph (1) that the Secretary has
approved pursuant to the criteria under paragraphs (4)
and (5).
(4) Criteria for approval of applications.--The
Secretary shall determine whether to approve each
application under this subsection on the basis of--
(A) the extent of the crime problem in and
around the housing for which the application is
made;
(B) the quality of the plan to address the
crime problem in the housing for which the
application is made;
(C) the capability of the applicant to carry
out the plan; and
(D) the extent to which the tenants of the
housing, the local government, local community-
based nonprofit organizations, local tenant
organizations representing residents of
neighboring projects that are owned or assisted
by the Secretary, and the local community
support and participate in the design and
implementation of the activities proposed to be
funded under the application.
In each fiscal year, the Secretary may give preference
to applications under this subsection for housing made
by applicants who received a grant for such housing for
the preceding fiscal year under this subsection or
under the provisions of this chapter as in effect
immediately before the date of the enactment of the
Housing Opportunity and Responsibility Act of 1997.
(5) Additional criteria for federally assisted low-
income housing.--In addition to the selection criteria
under paragraph (4), the Secretary may establish other
criteria for evaluating applications submitted by
owners of federally assisted low-income housing, except
that such additional criteria shall be designed only to
reflect--
(A) relevant differences between the
financial resources and other characteristics
of public housing agencies and owners of
federally assisted low-income housing; or
(B) relevant differences between the problem
of crime in public housing administered by such
authorities and the problem of crime in
federally assisted low-income housing.
SEC. 5126. DEFINITIONS.
For the purposes of this chapter:
[(1) Controlled substance.--The term ``controlled
substance'' has the meaning given such term in section
102 of the Controlled Substance Act (21 U.S.C. 802).
[(2) Drug-related crime.--The term ``drug-related
crime'' means the illegal manufacture, sale,
distribution, use, or possession with intent to
manufacture, sell, distribute, or use a controlled
substance.]
[(3)] (1) Secretary.--The term ``Secretary'' means
the Secretary of Housing and Urban Development.
[(4)] (2) Federally assisted low-income housing.--The
term ``federally assisted low-income housing'' means
housing assisted under--
(A) section 221(d)(3), [section] 221(d)(4),
or 236 of the National Housing Act;
(B) section 101 of the Housing and Urban
Development Act of 1965; or
(C) section 8 of the United States Housing
Act of 1937.
(3) Public housing agency.--The term ``public housing
agency'' has the meaning given the term in section 103
of the Housing Opportunity and Responsibility Act of
1997.
SEC. 5127. IMPLEMENTATION.
The Secretary shall issue regulations to implement this
chapter within 180 days after the date of enactment of the
[Cranston-Gonzalez National Affordable Housing Act] Housing
Opportunity and Responsibility Act of 1997.
SEC. 5128. REPORTS.
The Secretary shall require grantees to provide periodic
reports that include the obligation and expenditure of grant
funds, the progress made by the grantee in implementing the
plan [described in section 5125(a)] for the grantee submitted
under subsection (a) or (b) of section 5125, as applicable, and
any change in the incidence of [drug-related crime in] crime in
and around projects assisted under this chapter.
* * * * * * *
[SEC. 5130. AUTHORIZATION OF APPROPRIATIONS.
[(a) In General.--There are authorized to be appropriated to
carry out this chapter $175,000,000 for fiscal year 1993 and
$182,350,000 for fiscal year 1994. Any amount appropriated
under this section shall remain available until expended.
[(b) Set-Asides.--Of any amount made available in any fiscal
year to carry out this chapter, not more than 6.25 percent of
such amount shall be available for grants for federally
assisted, low-income housing. Notwithstanding any other
provision of law, of any amounts appropriated for drug
elimination grants under this chapter for fiscal years 1993 and
1994, not more than 6.25 percent shall be available for grants
for federally assisted low-income housing and 5.0 percent shall
be available for public housing youth sports program grants
under section 520 of the Cranston-Gonzalez National Affordable
Housing Act.
[(c) Set-Aside for Youth Sports Programs.--Of any amount made
available in any fiscal year to carry out this chapter, 5
percent of such amount shall be available for public housing
youth sports program grants under section 520 of the Cranston-
Gonzalez National Affordable Housing Act for such fiscal year.]
SEC. 5130. FUNDING.
(a) Authorization of Appropriations.--There are authorized to
be appropriated to carry out this chapter $290,000,000 for each
of fiscal years 1998, 1999, 2000, 2001, and 2002.
(b) Allocation.--Of any amounts available, or that the
Secretary is authorized to use, to carry out this chapter in
any fiscal year--
(1) 85 percent shall be available only for assistance
pursuant to section 5125(a) to public housing agencies
that own or operate 250 or more public housing dwelling
units;
(2) 10 percent shall be available only for assistance
pursuant to section 5125(b)(2) to public housing
agencies that own or operate fewer than 250 public
housing dwelling units; and
(3) 5 percent shall be available only for assistance
to federally assisted low-income housing pursuant to
section 5125(b)(3).
(c) Retention of Proceeds of Asset Forfeitures by Inspector
General.--Notwithstanding section 3302 of title 31, United
States Code, or any other provision of law affecting the
crediting of collections, the proceeds of forfeiture
proceedings and funds transferred to the Office of Inspector
General of the Department of Housing and Urban Development, as
a participating agency, from the Department of Justice Assets
Forfeiture Fund or the Department of the Treasury Forfeiture
Fund, as an equitable share from the forfeiture of property in
investigations in which the Office of Inspector General
participates, shall be deposited to the credit of the Office of
Inspector General for Operation Safe Home activities authorized
under the Inspector General Act of 1978, as amended, to remain
available until expended.
* * * * * * *
----------
SECTION 520 OF THE HOUSING ACT OF 1949
definition of rural area
Sec. 520. As used in this title, the terms ``rural'' and
``rural area'' mean any open country, or any place, town,
village, or city which is not (except in the cases of Pajaro,
in the State of California, and Guadalupe, in the State of
Arizona) part of or associated with an urban area and which (1)
has a population not in excess of 2,500 inhabitants, or (2) has
a population in excess of 2,500 but not in excess of 10,000 if
it is rural in character, or (3) has a population in excess of
10,000 but not in excess of 20,000, and (A) is notcontained
within a standard metropolitan statistical area, and (B) has a serious
lack of mortgage credit for lower and moderate-income families, as
determined by the Secretary and the Secretary of Housing and Urban
Development. For purposes of this title, any area classifed as
``rural'' or a ``rural area'' prior to October 1, 1990, and determined
not to be ``rural'' or a ``rural area'' as a result of data received
from or after the 1990 decennial census shall continue to be so
classified until the receipt of data from the decennial census in the
year 2000, if such area has a population in excess of 10,000 but not in
excess of 25,000, is rural in character, and has a serious lack of
mortgage credit for lower and moderate-income families. Notwithstanding
any other provision of this section, the city of Plainview, Texas,
shall be considered a rural area for purposes of this title, and the
city of Altus, Oklahoma, shall be considered a rural area for purposes
of this title until the receipt of data from the decennial census in
the year 2000.
----------
SECTION 214 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1980
restriction on use of assisted housing
Sec. 214. (a) * * *
(b)(1) * * *
(2) If the eligibility for financial assistance of at least
one member of a family has been affirmatively established under
the program of financial assistance and under this section, and
the ineligibility of one or more family members has not been
affirmatively established under this section, any financial
assistance made available to that family by the [Secretary of
Housing and Urban Development] applicable Secretary shall be
prorated, based on the number of individuals in the family for
whom eligibility has been affirmatively established under the
program of financial assistance and under this section, as
compared with the total number of individuals who are members
of the family.
(c)(1) If, following completion of the applicable hearing
process, financial assistance for any individual receiving such
assistance on the date of the enactment of the Housing and
Community Development Act of 1987 is to be terminated, the
public housing agency or other local governmental entity
involved (in the case of public housing or assistance under
section 8 of the United States Housing Act of 1937) or the
applicable Secretary (in the case of any other financial
assistance) shall take one of the following actions:
(A) * * *
(B)(i) Defer the termination of financial assistance,
if necessary to permit the orderly transition of the
individual and any family members involved to other
affordable housing.
(ii) Except as provided in clause (iii), any deferral
under this subparagraph shall be for a 6-month period
and may be renewed by the public housing agency or
other entity involved for an aggregate period of 18
months. At the beginning of each deferral period, the
public housing agency or other entity involved shall
inform the individual and family members of their
ineligibility for financial assistance and offer them
other assistance in finding other affordable housing.
(iii) The time period described in clause (ii) shall
not apply in the case of a refugee under section 207 of
the Immigration and Nationality Act or an individual
seeking asylum under section 208 of that Act.
* * * * * * *
(d) The following conditions apply with respect to
financial assistance being or to be provided for the benefit of
an individual:
(1)(A) There must be a declaration in writing by the
individual (or, in the case of an individual who is a
child, by another on the individual's behalf), under
penalty of perjury, stating whether or not the
individual is a citizen or national of the United
States, and, if that individual is not a citizen or
national of the United States, that the individual is
in a satisfactory immigration status. If the
declaration states that the individual is not a citizen
or national of the United States and that the
individual is younger than 62 years of age, the
declaration shall be verified by the Immigration and
Naturalization Service. If the declaration states that
the individual is a citizen or national of the United
States, the [Secretary of Housing and Urban
Development] applicable Secretary, or the agency
administering assistance covered by this section, may
request verification of the declaration by requiring
presentation of documentation that the applicable
Secretary considers appropriate, including a United
States passport, resident alien card, alien
registration card, social security card, or other
documentation.
(2) If such an individual is not a citizen or
national of the United States, is not 62 years of age
or older, and is receiving financial assistance on the
date of enactment of the Use of Assisted Housing by
Aliens Act of 1996 or applying for financial assistance
on or after that date, there must be presented either--
(A) alien registration documentation or other
proof of immigration registration from the
Immigration and Naturalization Service that
contains the individual's alien admission
number or alien file number (or numbers if the
individual has more than one number), or
(B) such other documents as the applicable
Secretary determines constitutes reasonable
evidence indicating a satisfactory immigration
status.
In the case of an individual applying for financial
assistance on or after the date of enactment of the Use
of Assisted Housing by Aliens Act of 1996, the
applicable Secretary may not provide any such
assistance for the benefit of that individual before
documentation is presented and verified under paragraph
(3) or (4).
* * * * * * *
(4) In the case of such an individual who is not a
citizen or national of the United States, is not 62
years of age or older, and is receiving financial
assistance on the date of enactment of the Use of
Assisted Housing by Aliens Act of 1996 or applyingfor
financial assistance on or after that date, if, at the time of
application or recertification for financial assistance, the statement
described in paragraph (1) is submitted but the documentation required
under paragraph (2) is not presented or if the documentation required
under paragraph (2)(A) is presented but such documentation is not
verified under paragraph (3)--
(A) * * *
* * * * * * *
(B) if any documents or additional
information are submitted as evidence under
subparagraph (A), or if appeal is made to the
Immigration and Naturalization Service with
respect to the verification determination of
the Service under paragraph (3)--
(i) the applicable Secretary shall
transmit to the Immigration and
Naturalization Service photostatic or
other similar copies of such documents
or additional information for official
verification,
(ii) pending such verification or
appeal, the applicable Secretary may
not--
(I) * * *
* * * * * * *
(5) If the applicable Secretary determines, after
complying with the requirements of paragraph (4), that
such an individual is not in a satisfactory immigration
status, the applicable Secretary shall--
(A) * * *
* * * * * * *
(6) The applicable Secretary shall terminate the
eligibility for financial assistance of an individual
and the members of the household of the individual, for
a period of not less than 24 months, upon determining
that such individual has knowingly permitted another
individual who is not eligible for such assistance to
reside in the public or assisted housing unit of the
individual. This provision shall not apply to a family
if the ineligibility of the ineligible individual at
issue was considered in calculating any proration of
assistance provided for the family.
For purposes of this subsection, the term ``applicable
Secretary'' means the applicable Secretary, a public housing
agency, or another entity that determines the eligibility of an
individual for financial assistance.
* * * * * * *
[(h)] (i) Verification of Eligibility.--
(1) In general.--[Except in the case of an election
under paragraph (2)(A), no] No individual or family
applying for financial assistance may receive such
financial assistance prior to the affirmative
establishment and verification of eligibility of at
least the individual or one family member under [this
section] subsection (d) by the applicable Secretary or
other appropriate entity.
(2) Rules applicable to public housing agencies.--A
public housing agency (as that term is defined in
section 3 of the United States Housing Act of 1937)--
[(A) may elect not to comply with this
section; and]
(A) may, notwithstanding paragraph (1) of
this subsection, elect not to affirmatively
establish and verify eligibility before
providing financial assistance; and
(B) [in complying with this section] in
carrying out subsection (d)--
(i) may initiate procedures to
affirmatively establish or verify the
eligibility of an individual or family
under this section at any time at which
the public housing agency determines
that such eligibility is in question,
regardless of whether or not that
individual or family is at or near the
top of the waiting list of the public
housing agency;
(ii) may affirmatively establish or
verify the eligibility of an individual
or family under this section in
accordance with the procedures set
forth in section 274A(b)(1) of the
Immigration and Nationality Act; and
(iii) shall have access to any
relevant information contained in the
SAVE system (or any successor thereto)
that relates to any individual or
family applying for financial
assistance.
(3) Eligibility of families.--For purposes of this
subsection, with respect to a family, the term
``eligibility'' means the eligibility of each family
member.
ADDITIONAL VIEWS OF HON. BERNIE SANDERS
One of the arguments being used to cut back on affordable
housing in this country is that we have a large federal
deficit, a five trillion dollars national debt, and that to
move toward a balanced budget we have to make cuts in
programs--no matter how useful or important those programs may
be. This of course has included massive cuts in affordable
housing programs.
While the Banking Committee was considering H.R. 2, I
introduced an amendment which addressed this issue
forthrightly. This amendment asked the Members of the Banking
Committee to agree that we need to cut back on an outrageous
housing program which benefits almost exclusively upper income
people--and that is continuing the policy by which the United
States government allows for an income tax deduction for
interest paid on mortgages up to one million dollars. Clearly,
as a number of organizations from very different political
perspective agree, one million dollars is an excessive amount
and constitutes a very large and generous housing welfare
program for some of the richest people in America.
First, let me clearly state that I support the home
interest mortgage deduction program. I believe it is a useful
and important program for the middle class and working families
of this country and I will fight hard to see that it is
maintained for the overwhelming majority of the people that
utilize the program. On the other hand, when we are cutting
back on programs for people desperately in need of affordable
housing, and when we have a five trillion dollar national debt,
I do not believe that we can afford to maintain a subsidy which
benefits the wealthiest five percent of Americans.
My amendment stated a ``Sense of the Banking Committee''
that this deduction should be lowered from $1,000,000 to
$300,000 and that the savings, estimated by the C.B.O. at 12.7
billion over a five year period should be divided and allocated
for the following purposes--(A) One half shall go toward
increased spending in affordable housing, including public
housing, senior citizen housing, Section 8 housing and programs
which encourage home ownership; and (B) One half shall go
toward reduction of the federal deficit. In other words, if
this amendment became law, this Committee would have an
additional six billion to invest in affordable housing and six
billion dollars for deficit reduction.
This concept is supported by progressives, moderates, and
conservatives--by the Progressive Caucus, the Progressive
Policy Institute and the Concord Coalition. Additionally,
Senator Bob Packwood spoke out in favor of reducing the
mortgage limit to between $250,000 and $300,000 when he was
Chairman of the Senate Finance Committee. The Concord Coalition
in its ``Zero Deficit Plan'' takes a slightly different
approach which in fact saves even more money than the proposal
I offer. They would limit the mortgage interest tax deduction
to $12,000 per year and $20,000 per year for couples. And, in
the process, save $19 billion in revenue by the year 2002. The
Concord Coalition says, ``The current high limit on mortgage
interest deductibility subsidizes expensive homes and provides
a loophole through which tax payers with substantial home
equity can get around limits on deductibility on consumer
investment interest.''
Let me explain why I think it is outrageous and unwise to
maintain this tax deduction at the $1,000,000 level. First of
all, although 63 million American families own their homes,
only 27 million, fewer than half, claimed any mortgage interest
deduction in 1994. This is probably because it isn't worth it
for most nonwealthy taxpayers to itemize their deductions.
Secondly, according to the Progressive Policy Institute, only 5
percent of home mortgages are over $300,000. Therefore, this
change in tax policy would affect only a small minority of
homeowners--some of the wealthiest people in the nation who own
multi million dollar mansions. And frankly, the United States
Congress should not be providing a housing subsidy to these
people.
I believe that lowering the mortgage interest deduction is
of critical importance for two basic reasons. One, it allows
those of us who believe that the federal government should
spend more on affordable housing to raise over $6 billion more
for that purpose. Secondly, it allows those members who want to
move toward a balanced budget rapidly to lower the deficit by 6
billion dollars. Clearly these are laudable goals which should
be embraced by all Members of Congress.
Bernie Sanders.
ADDITIONAL VIEWS OF HON. TOM BARRETT
Our nation's public housing system is in need of reform,
and our federal government is in the best position to establish
a national housing policy that places housing as a top priority
for all levels of government. Moreover, it is the
responsibility of our government to promote the general welfare
of our nation by using federal resources to aid families and
individuals who are seeking safe, clean and affordable housing.
Congress should pass a comprehensive housing reform bill
that is responsive to Americans who are in need of housing
assistance. These reforms should encourage the States and
localities to find solutions to housing and community
development problems. Moreover, these reforms should grant
local housing authorities broader decisionmaking powers given
the pressures they are facing as a result of declining funding
for federal housing programs.
I have concerns, however, with H.R. 2, and in particular
the bill's provisions dealing with the Brooke Amendment, rent
setting, minimum rents, income targeting, self-sufficiency
contracts and the repeal of the 1937 Housing Act. The need to
house the very lowest income households has never been more
acute with so many residents and applicants facing reduced SSI
and welfare payments. H.R. 2 removes important safeguards
designed to protect the most vulnerable among us and abandons
our commitment to serving our poorest families who critically
need housing assistance.
Chairman Lazio has agreed to some constructive changes in
the Manager's Amendment including adding my amendment deleting
the section of the bill exempting residents of public housing
employed by a public housing authority from prevailing wage
requirements. The original version of H.R. 2 required that the
prevailing wage be paid to all contractors, laborers and
mechanics employed by a local housing authority. But it
exempted residents of public housing, such as non-union
maintenance workers, from these important labor protections.
Why should workers at the same worksite, living in the same
community, doing the same job make less than their fellow
workers? The changes made in the Manager's Amendment will
ensure that American citizens who happen to live in public or
assisted housing are guaranteed equal rights under the labor
standards section of the bill. We should not be penalizing
American citizens simply because they happen to live in public
or assisted housing.
In addition, I am especially pleased that Chairman Lazio
added a provision in H.R. 2 that is virtually identical to a
bill I have been working to enact into law for the past few
years. My legislation, the Prohibition of Incentives for
Relocation Act, would prohibit federal block grant funds from
being used to move jobs from one part of the country to
another.
Under the current law governing the Community Development
Block Grant (CDBG) program, there is no restriction on the use
of funds to assist a business in relocating jobs from one
community to another. Unfortunately, this happened in my
hometown of Milwaukee when a major employer announced that it
would move 2,000 jobs to other parts of the country using CDBG
funds. This should never happen again in Wisconsin or any other
state in the country.
The need for Congress to pass this legislation is crucial.
When one state uses federal funds to literally steal jobs from
another state, we all lose. We must end the despair of the men
and women who lose their jobs only to discover that their
federal tax dollars are directly linked to their unemployment.
Robbing Peter to pay Paul is not good business and should not
be the business of the federal government.
Although I have concerns with H.R. 2, as it is currently
written, some of the amendments adopted in committee move in a
positive direction. I remain hopeful that the full House of
Representatives will make further improvements to the bill and
that the conferees who are appointed to reconcile the
differences between the House and Senate versions will each a
bipartisan agreement on a housing reform bill that is
acceptable to all of us.
Public housing has many successes to its credit. But it is
clear that we need to take additional steps to improve it in
many areas. Such reforms would improve the management and
development of public housing. More importantly, these reforms
would help to ensure public housing programs are responsive to
our communities and the needs of its residents, especially our
children.
Tom Barrett.
ADDITIONAL VIEWS OF HON. JESSE L. JACKSON, JR.
While we are all in agreement that our public housing
system is in great need of comprehensive reform, H.R. 2, as
passed by the Committee fails drastically to meet the critical
housing needs of millions of Americans. The Housing Act of 1937
established the fundamental right to safe, affordable, and
sanitary housing. H.R. 2 destroys this last remnant of the
safety net for the most vulnerable among us. At a time when our
nation is facing an affordable housing crisis in which 5.3
million people are living under ``worst case housing needs''
scenario--paying more than fifty percent of their income in
rent or living under substandard or deplorable conditions, this
amounts to an outright abandonment of our commitment to
adequate housing for poor and working class Americans.
H.R. 2, as reported out of committee, will exacerbate this
affordable housing crisis through making public housing
available to higher income residents who can pay higher rents
at the expense of thousands of low income families. Those
displaced will include full-time minimum wage workers whose
incomes fall well below 30% of area median income in major
metropolitan areas. As a result, low wage workers and Americans
who we are ostensibly encouraging to successfully make the
transition from welfare to work will either be forced into
homelessness or to forgo basic human necessities like medical
care, groceries, and clothing in order to find alternative
shelter.
We are deeply concerned by the community work provisions of
Section 105 and believe that the Jackson and Watt amendments
addressing this provision, if they had been adopted by the
committee, would have protected against one of the most onerous
and demeaning consequences of this bill. Section 105 creates
the contradictory requirement of ``mandated volunteerism.'' By
requiring public housing residents to perform eight hours of
community work or risk eviction from public housing, we are
imposing a burden on low-income recipients of housing
assistance that we do not similarly impose upon middle and
upper class recipients of housing subsidies, like the millions
of Americans who take advantage of homeownership deductions
each year.
The words ``community work hours'' invoke the type of
punishment imposed by judges on criminals for crimes committed
against society. Public housing residents have committed no act
against society, but are nonetheless subject to this mandate by
sheer virtue of attaining the unfortunate circumstance of their
poverty. Why must we vilify the disadvantaged and treat public
housing residents as if they have committed a crime by being
poor?
Furthermore, this provision creates the oxymoronic
predicament of ``mandating volunteerism'' which, in fact,
demeans true volunteerism. Community service provides an
invaluable benefit to a community and to the person
volunteering their time. By taking ``volunteer'' out of
volunteerism, however, we take from residents their sense of
personal responsibility over their efforts. We are saying that
we do not trust residents to take part in their own
communities, so we must force them to do so. There is no pride
in community service when it is mandated as if the resident is
lazy or has done something wrong.
We are equally concerned with the potential implications
this provision holds for low wage workers. Forcing public
housing residents to perform millions of uncompensated hours of
work will, no doubt, have the effect of displacing millions of
low wage workers who are currently, and will potentially be,
employed in these communities. The community work requirement
works directly against job creation for the very poor. Coupled
with the impact of the welfare reform law, and the anticipated
dearth of jobs to meet the great numbers of Americans
attempting to transition from welfare to work, we must not
implement policies which further displace our working poor
without providing for additional job creation.
This bill has been hailed by its sponsors as providing
housing authorities with the flexibility to manage themselves
efficiently. With this provision we are in essence
micromanaging their operations by forcing them to implement
work programs without regard to what they believe to be in the
best interests of their communities. While our Republican
colleagues are usually quite sensitive to the notion of
imposing costs upon jurisdictions without adequately funding
those costs, Republican committee members roundly rejected
efforts to protect against imposing such an undue burden in
H.R. 2. Virtually every housing authority in the nation agrees
that without additional funds to administer the community work
program, they will unduly be forced to accept this unfunded
mandate. The Jackson and Frank amendments offered during markup
would have ensured that public housing authorities are not
forced to comply with this additional requirement, absent
appropriations to cover administrative costs.
In light of these and additional reasons raised in the
minority views to this report, we believe that H.R. 2, as
reported out of committee, will add to the millions of
Americans currently facing severe housing needs or
homelessness. For these reasons, we opposed the bill in
committee and intend to vote against it on the floor if these
provisions remain incorporated in the legislation.
Jesse L. Jackson, Jr.
Lucille Roybal-Allard.
Carolyn B. Maloney.
Julia Carson.
Maxine Waters.
Carolyn Cheeks Kilpatrick.
Barney Frank.
Bernard Sanders.
Henry Gonzalez.
Nydia M. Velazquez.
ADDITIONAL VIEWS OF CONGRESSWOMAN CAROLYN C. KILPATRICK
Dear Colleagues, Friends and Citizens: As a new Member of
Congress, it is quite interesting and intriguing to note the
practical and empirical decimation of the many programs that
have provided a safety net for the poorest of the poor in our
nation. Last year, witnessed the overhaul of the 61-year-old
system of welfare. While many of us agree that welfare should
be reformed, we did not agree to the total purge of many of its
worthwhile programs on the backs of legal immigrants and
children.
The House Banking and Financial Affairs Committee has been
considering H.R. 2, the so called ``Housing Opportunity and
Responsibility Act of 1997.'' This bill would repeal the 1937
U.S. Housing Act, the law that established the majority of our
current public housing policies. H.R. 2's particularly onerous
income targeting requirements means that Congress has decided
to abandon our nation's poor and further fray what is left of
our social safety net. Current law dictates that the majority
of public housing residents earn no more than 30 percent of the
median income level in their region. Now, if you earn no more
than 30 percent--less than one-thirds--of what is considered to
be mid-range income, you are practically destitute. You simply
cannot afford to live anywhere else. For all intents and
purposes, your options are public housing or public
homelessness.
H.R. 2 turns current law on its head. Under H.R. 2, 65
percent of new tenants in public housing must have a job and
earn up to 80 percent of the median income of a region. Only 35
percent of new residents will be eligible to earn no more than
the current level of 30 percent of median income. Therefore, if
you are unable to find a job and earn up to 80 percent of the
median income of your neighborhood, you are stuck. You will not
have access to safe, affordable, or decent housing. In my
opinion, not only does H.R. 2 tacitly state that most people
cannot have safe, affordable, or decent housing; it also
implies that if you are poor, you do not deserve such housing.
During Committee consideration of this bill, my colleague
Maxine Waters of California and I offered an amendment that
would have retained current law that allowed for public housing
agencies to reconcile non-criminal, minor disputes without
having to resort to court. Although this method of resolution
offered a cost-effective, efficient, and effective way to deal
with minor infractions that did not involve a criminal
violation, health code infraction, or a disturbance of the
peace, it was rejected. Now, everyone--people who left their
trash out on the wrong day, persons illegally dealing drugs, to
people keeping cows in their apartments--will be included in
the same category. Everyone will have to go through the
expense, trouble and intimidation of a court hearing. This
simply makes no sense whatsoever and will increase the homeless
population.
The best way to measure how a person, a community, a
government, or a nation should be regarded is how that person,
community, government or nation treats the least powerful of
its citizens. H.R. 2 is a clear and manifest denigration of the
commitment that the Federal government has had to our nation's
poor, imposes more unfunded mandates to our nation's local and
state governments, and will increase the bureaucracy of
managing our already-dwindling public housing stock. I urge my
colleagues to vote against this legislation in its current
form.
Carolyn C. Kilpatrick.
MINORITY VIEWS
While there are many provisions and policy changes included
in H.R. 2 which are to be applauded, the overwhelming number of
Democratic members and the Independent member voted against
reporting the Housing Opportunity and Responsibility Act of
1997 from the Committee on Banking and Financial Services, as
they did the United States Housing Act of 1995 in the last
Congress. Like H.R. 2406, the reform bill of the last Congress,
H.R. 2 represents a dramatic restructuring of the public and
tenant based section 8 housing programs that will have
consequences, perhaps unintended, detrimental to the very
families the programs were intended to serve, the nation's most
vulnerable.
As reported, H.R. 2 virtually abandons the poor in favor of
the moderate income, all in the name of flexibility for the
local public housing authorities (PHAs). At the same time, it
requires new federal, duplicative responsibilities and vast new
PHA responsibilities for micormanaging the lives of residents
and complying with federal regulations.
Without compromises on the part of the Republican sponsors
of this legislation, few of which were reached during Committee
consideration, Democratic signatories to the minority views do
not believe that this bill should become law. Without
compromises H.R. 2 is destined to suffer the same fate as H.R.
2406 in the last Congress. That public housing reform bill
failed to become law because of the intransigence of the
Republican House majority and their failure to compromise on
many of the same issues that are included in H.R. 2.
Indeed, although symbolic, H.R. 2 repeals the basic
underpinnings of housing law, the U.S. Housing Act of 1937. The
bill establishes an entirely new statutory framework for the
public housing and tenant based rental assistance programs. In
many ways, we agree with the majority's assessment that the
public and section 8 housing programs need major and
significant reforms. In fact, in the 103rd Congress, the House
passed similar reforms by a broad bipartisan vote--deregulation
demonstrations for high performing public housing agencies,
rent reforms, reforms of the drug elimination grant program,
reform of the one for one replacement requirements,
streamlining the section 8 requirements modeled after the
conventional real estate market, and the merger of the section
8 certificate and voucher programs.
While H.R. 2 includes those reforms, the Committee bill
simply goes too far. Particularly troubling to Democrats are
unnecessarily loose and unfair targeting of scarce federal
housing resources; rent setting provisions; a new block grant
program with few federal standards that siphons funding from
public housing agencies; and unwieldy accreditation system; and
community work and self sufficiency contract requirements.
Community work and self sufficiency contracts
Committee Democrats are deeply concerned about both the
community work requirements and the self sufficiency contract
requirements in the bill. While community service is a noble
goal for all Americans, requiring or mandating volunteerism as
a condition of the lease from public and assisted housing
residents barely scrapping by is hardly community service. We
know of no other Federal benefit, where community work is
required, except the welfare workfare requirements. We would
point out that even the poorest resident of public and assisted
housing pays some rent under this bill; so they are not living
for free.
On a more practical note, it is unclear how this work
requirement will ever be enforced, much less families evicted
for failing to perform community work. Housing authorities have
enough to do without creating community work jobs and
monitoring residents in those jobs. And the courts are
sufficiently clogged without having to hear eviction cases of
residents who fail to complete their community work.
The self sufficiency contracts, although not binding lease
terms, are in many ways even more troubling to Committee
Democrats. They smack of social engineering and micro-managing
families' lives. For the first time, PHAs will be required to
ask families to set time limits on housing assistance, although
we are pleased that the majority agreed that families should
not be evicted if they fail to meet their stated time tables.
Such a requirement would have been contradictory to the stated
goal of mixed income communities.
More importantly, requiring PHAs to administer self
sufficiency contracts creates an administrative and financial
burden (an unfunded mandate) for PHAs. It requires PHAs to
duplicate the role of welfare agencies, a job for which they
are ill-prepared and ill-equipped. It micro-manages PHAs and
the lives of residents at the same time, placing new heavy
burdens on both.
Committee Democrats favor encouraging moving families from
welfare to work through job training, education, and job
placement programs administered by the agencies that know how
to administer such programs in cooperation with the PHAs, not
administered by the PHAs. The local housing management plan
should include ways in which the PHA is coordinating social
welfare and employment activities for families in public and
assisted housing. That should be appropriate and sufficient
without requiring PHAs to administer a self sufficiency
contract for each family.
Targeting of assistance
The Committee print establishes income eligibility for
public housing at below 80 percent of median with targeting of
35 percent of new admissions to very low income families, at or
below 30 percent of the area median income. However, it also
provides that the very low income targeting can be met by
admitting very low income families to the choice based housing
program in excess of the 40 percent very low income targeting
requirement for that program. This is known as ``fungibility.''
Committee Democrats fear that the targeting remains too
lax. Targeting 35 percent of the federal assistance to families
below 30 percent of median income is insufficient. And
fungibility further dilutes the targeting. There is every
possibility that no very low income families will be admitted
to the permanent housing resource of public housing with
fungibility. We know that these are the same families, many
elderly, disabled, or large families who have the greatest
difficulty finding housing under the rental assistance program
now and the same families who are intimidated by the
conventional housing market. So Committee Democrats are
particularly concerned about fungibility.
Current law requires that between 75 percent and 85 percent
of the families admitted to public and section 8 housing have
incomes below 50 percent of median. Further, current law
requires the housing agencies to admit mostly families with
federal preferences. This statutory requirement has had the
effect of housing mostly families who are among the ``poorest
of the poor.''
While we support the repeal of federal preferences, we
believe that this must be accompanied by deeper targeting than
is the case in H.R. 2. We understand that the majority's
objective is to give PHAs complete control of their operations
and to change the income mix of the residents of assisted
housing, but as Secretary Cuomo pointed out in his testimony
before the Committee and the Administration's public housing
bill indicates such lax targeting will alter the fundamental
mission of public housing: to serve low income Americans unable
to find decent and safe shelter in the private market.
Representative Kennedy offered an amendment which would
have targeted 40 percent of public housing units to households
with incomes with 30 percent of area median income or below,
and would have allowed no more than 10 percent of the units to
be made available to households with incomes between 60 percent
and 80 percent of median, which mirrors the Administration's
position.
HUD's statistics and economic modelling suggest that the
rental income earned by targeting assistance at or below 80
percent of median and providing assistance to families earning
between 60 percent and 80 percent of median would be negligible
with the authority to set ceiling rents. HUD's data suggests
that ceiling rents generally kick in when incomes are around 55
percent of an area's median. However, there could be other
benefits to public housing communities by allowing broader
participation in the program.
Targeting assistance so loosely, we fear will fundamentally
shift the focus of federal assistance too far from very low
income families, all in the name of mixed income developments,
reform, local control, and to make up the shortfall from the
loss of federal subsidies. Further we believe that it is an
unwise use of very scarce federal resources. Currently, the
median income for public housing residents is 17 percent of
area median income. We are concerned that the 35 percent target
will become a maximum for new admittants to public housing so
that the median income can increase more quickly. Fungibility
will only exacerbate that problem.
HUD estimates that if PHAs could simply raise the median
income to 30 percent as it had been in the early 1980s,
operating subsidies could be reduced by around $800 million,
nearly one-third. Moreover, PHAs could easily meet the goal of
making public housing available to working people and creating
mixed-income communities with the targeting in the Kennedy
amendment. Specifically, full time workers earning the minimum
wage still make under 30 percent of area median income in all
of the top 50 metropolitan areas in the country. Hence, the
deeper targeting of the Democratic amendment is wholly
consistent with the goal of encouraging work.
We believe that the increases in income can occur even if
the targeting of assistance is deeper. Even with some loosening
of targeting of current law, but greater than that in the
Committee bill, and the provision of rent caps, income to the
property from rents will increase. Higher income residents will
pay higher rents to offset the lower rents from lower income
families.
The targeting issue with respect to the rental assistance
program is very different. The intent of the rental assistance
program is to integrate and disperse low and very low income
families into neighborhoods and the conventional real estate
market where incomes are generally higher--the same mixed
income goal as in public housing, but the opposite problem.
We also recognize that the families with the most serious
housing needs are those with the lowest incomes. HUD data
indicates that of unassisted families with incomes below 20
percent of median more than 71 percent have severe housing
problems. These are the precise families who could be helped by
the rental assistance program that would integrate them into
mixed income neighborhoods.
Because tenant-based assistance is not tied to particular
housing projects, there is no inherent concentration of very
poor households. In fact, well run tenant-based assistance
programs ensure broader economic integration. Under these
circumstances, there is simply no justification for refusing to
target the maximum number of rental vouchers to those earning
under 30 percent of area median income. Yet, the Kennedy
amendment to require 75 percent of such assistance to this
population was defeated.
Therefore, we strongly believe that the targeting for the
rental assistance program should be considerably deeper than
the 40 percent included in the Committee bill, and deeper than
the targeting to very low income families for the public
housing program.
We also believe that the targeting in H.R. 2 will
exacerbate the problem of the lack of affordable housing,
particularly for very low income families. The Center for
Budget and Policy Priorities study, In Short Supply: The
Growing Affordable Housing Gap, determined that the number of
low income renters exceeded the number of affordable rental
units by 4.7 million low income renters. According to the
study, the nation has lost 43 percent of its affordable housing
supply, some 2.2 million housing units, over the last two
decades. Among renter households, at least 13 percent in every
state spent 50 percent or more of their income tocover the
rent. More than 5.6 million families today pay more than 50 percent of
their incomes for rent, or live in substandard housing. They have been
determined to be families with worst case housing needs.
Committee Democrats believe the Committee bill's targeting
may aggravate homelessness and harm the most vulnerable
residents. Families with very low incomes waiting for public
housing or rental assistance may simply be too poor for PHAs to
assist and they may remain homeless. It is ironic that public
housing is criticized for warehousing and concentrating the
poor, often in deplorable conditions while the policies in the
Committee bill may relegate those too poor for public housing
and rental assistance to homeless shelters, which are often no
more than barracks, dormitories, or warehouses.
Rent setting
From its enactment in 1969, the Brooke amendment named
after former Senator Edward Brooke (R-MA.), its sponsor, was
intended to protect the most vulnerable residents of public
housing and later those with section 8 assistance from paying
too high a percentage of their incomes for rent. The rent to
income ratio of first 25 percent and then 30 percent was
thought to be a reasonable contribution in relation to the
limited incomes of eligible residents. Last year's bill
eliminated the protection of an income based rent for any
family with an income above 30 percent of area median, although
the rent cap was retained for the elderly, disabled, veterans,
and families with incomes below 30 percent of median pursuant
to Democratic amendments during House consideration of the
bill.
This year under H.R. 2, there is a different approach.
While we applaud the majority for recognizing the necessity to
provide income based rents up to 30 percent of median income
for everyone, we are concerned about the rental choice
provision that requires a family to choose between an income
based rent and a market based or flat rent.
At its best, it would require PHAs to develop certain
market disciplines in estblishing flat rent schedules (as was
required prior to Brooke). However Committee Democrats believe
that the provisions of H.R. 2 would tend to encourage flat
rents set far higher than 30 percent of most public housing
tenants' incomes, because rents are to reflect market rents.
Currently the average monthly rent paid by all public housing
residents is $185, far less than operating costs or most market
rents; and 75 percent all current residents have annual incomes
that are less than $10,000. So the rent choice is hollow. No
residents will choose to pay more than 30 percent of income for
rent.
Committee Democrats believe that at its worst, over time,
the rent setting methods could end up segregating the very
poor. PHAs would direct families choosing to pay income based
rents to those properties with lower flat rents and where the
PHA would lose the least money. Those who would agree the
typically higher flat rents would be steered to the better
properties. We would urge PHAs not to seek only families with
greater rent paying ability and willing to pay flat rents. Such
practices will shut out those on the waiting lists who are very
low income until just the right income mix is achieved to
generate sufficient operating income.
Finally, the rental choice provision sets up an
administratively cumbersome system--an unnecessary and unwanted
administrative nightmare. Every year families will have to
decide which rent they will pay. Recertification of income
rules are different, depending on which rent families choose to
pay. Families are at a distinct disadvantage in changing rental
methods if a crisis occurs, the decision resting with the PHA
not the family, to switch rental payments.
Although Committee Democrats did not raise the rental
choice provisions during Committee consideration of the bill,
Mr. Frank will offer an amendment during House consideration of
H.R. 2 to simplify rent setting policies and procedures for
PHAs and families. His amendment will eliminate the choice
provisions and require that all rents be capped at 30 percent
of income. Unlike current law, it will not mandate a flat rent
of 30 percent of income. Adopting a flexible rent to income
ratio capped at 30 percent will permit very low income families
to pay less than 30 percent of their limited incomes for rent
and it will accommodate ceiling rents and income disallowances.
The Frank approach would tend to encourage setting flat rents
that were affordable to the overwhelming majority of public
housing residents, those with incomes that are 30 percent of
median income, unlike the flat rents proposed in the Committee
bill.
Committee Democrats believe that this is a simpler, fairer,
and more reasonable rent setting system. It will allow the PHA
the flexibility to establish flat rent schedules; it will
introduce market disciplines in setting rent schedules; and it
will eliminate the disincentive to earn additional income,
which appears to be the only argument that the majority has
offered for the rental choice provisions in the Committee bill.
We are pleased that the Committee bill includes provisions
for ceiling rents or maximum rents, another of the provisions
from the 103rd Congress's House passed housing bill. Like the
majority, we believe that ceiling rents are critical to rent
reform and to attracting and keeping families, especially the
``working poor'', in public housing. We are aware that more
than 25 percent of the residents of public housing have earned
income.
We believe it makes no sense to penalize families who earn
more by charging them higher rents. Indeed, we understand in
certain high cost areas like New York City, without ceiling
rents it would often be less expensive to move out of public
housing into private housing of a higher quality. Ceiling rents
will encourage mixed income communities which will help break
the destructive concentration of very poor families in public
housing. On this issue, we agree wholeheartedly with the
majority and H.R. 2. However, we do not agree with the majority
about the complete shift of incomes among residents in assisted
housing that is part of the design of H.R. 2 as reported.
Minimum rents
The Committee bill establishes a minimum rent of between
$25 and $50, with certain hardshipexemptions established by the
PHA. Committee Democrats believe that any requirement above $25.00 may
pose a genuine hardship on families with no or very little income, such
as those families who are unemployed, have lost their welfare benefits,
are in the transition between homelessness and having housing, who have
just lost their jobs, have unanticipated medical expenses, and are
awaiting determination of eligibility for public benefits.
Although we agree that families should pay some token
amount toward rent, $50.00 is simply too high. We know, that if
every PHA implemented a $50.00 minimum rent, as H.R. 2 would
permit, nearly 340,000 elderly and families with children would
be affected. Families would pay an average of $315.00 more per
year in rent.
About two thirds of the families affected by the new
minimum rent requirement would be families with children, many
of them in states with low welfare benefits and low wages.
Right now, 10 percent of all the residents of public housing
pay less than $50.00 in rent and 22 percent of all residents
earn less than $5000.
We also are aware that the imposition of the $50.00 minimum
rent would have different impacts depending on regions of the
country. While residents in high cost areas with high welfare
cash assistance may not be dramatically affected, those with
lower incomes and lower benefits would be. As an example, in
Texas, the welfare benefit for a 3 person household is only
$188.00 monthly. With a $50.00 minimum rent, a resident who had
been paying $32.00 monthly based on the Brooke cap and
applicable deductions from income would now be paying $50.00,
or 46 percent of income.
Committee Democrats are particularly concerned that
granting hardship exemptions is solely in the discretion of the
PHAs. We are pleased that the Committee adopted Representative
Roybal Allard's amendment which clarified that families can not
be evicted immediately if they are unable to pay a minimum
rent; however we believe that a major shortcoming of the
Committee bill is its failure to specify mandatory exemptions,
such as loss of job, death or illness, awaiting an eligibility
determination for benefits, from minimum rents.
One of the most troubling omissions is a mandatory
exemption for legal immigrants who will lose their welfare
benefits, supplemental security income benefits, and food
stamps as the result of the implementation of the welfare
reform legislation passed during the 104th Congress. These are
families, many of them elderly and disabled, who have been in
this country legally for many years or who have just come to
this country fleeing oppression. They have been and they are
playing by the rules for legal immigrants. Soon they will have
no income because of welfare reform. Representatives Vento and
Gutierrez offered an amendment which would have provided a
mandatory exemption from the minimum rent for these families.
It was defeated on a nearly party line vote like most
amendments.
Every day there is a new and agonizing story of the
emotional toll the fear of losing benefits is taking on legal
immigrants--even stories of suicides. In many cases these are
refugees from World War II and the Vietnam War who will be cut
off from benefits now because they are too old or sick to pass
the citizenship test. We believe that there is no valid reason
for not requiring a hardship exemption in these instances.
Committee Democrats believe that not granting this
mandatory exemption is simply a case of piling on for little
gain. When minimum rents for all public housing and section 8
families were instituted, CBO scored the savings at a mere $25
million. Legal immigrants represent only a fraction of that
very small savings. The Republican Congress last year took away
their income and their food stamps. This year, without a
mandatory exemption from minimum rents, the Committee bill will
charge them a minimum rent from their now empty pockets.
Funding
The Committee bill authorizes funding levels for public
housing and choice based housing that do not even equal level
appropriated for the same programs for fiscal year 1997. For
public housing, including the operating fund, the capital fund,
the COMPAC program, and the severely distressed housing
program, the bill authorizes $6.19 billion to be appropriated
for the term of the bill; the 1997 appropriations bill
appropriates $6.98 billion, nearly a billion dollars less. For
the choice based housing program, H.R. 2 simply plucks a number
out of the air; it seems to have no resemblance to the number
needed for incremental assistance and renewals. The Republican
appropriations bill for the last two fiscal years failed to
provide any incremental section 8 assistance or new choice
based housing certificates in the lexicon of H.R. 2; rather it
provides funding for replacement housing certificates and
renewals. H.R. 2 makes no such distinction.
Committee Democrats believe the numbers are woefully
inadequate. Committee Democrats also believe that it is
critical for the authorizing Committee to establish priorities
for spending on housing programs that the Budget Committee and
the Appropriations Committee can use as guideposts during their
deliberations. The Committee bill fails to do that.
Just as we argued in the Committee's deliberations over the
budget views, Committee Democrats, particularly, believe that
it is critical that this bill include full funding for
Operating Subsidies. Representative Frank offered an amendment,
defeated along party lines, that would have required Congress
to fully fund the operating subsidies needs pursuant to the
performance funding system and its successor formula for each
of the ensuing five years.
Public housing funding in recent years has suffered much
larger cuts than programs in the domestic discretionary budget,
including other HUD programs. The ability of PHAs to maintain
affordable rents and to serve poor people is tied to the level
of the operating subsidy. Because operating subsidies have
fallen below that called for by HUD's Performance Funding
System, pressures have been generated for raising tenant rents
above the 30 percent cap that has long been public policy, so
as to avoid having the $90 billion investment in public housing
deteriorate. This lack of operating subsidy--an estimated
shortfall of $5.3 billion between FY 1993 and FY 2002--is also
generating pressures of PHAs to seek tenants at the higher
income ranges of eligibility.
There are good reasons for changing the income mix in
public housing so it does not consist solely of the very poor,
but changes of this sort should be driven by the desire to
provide the best overall housing environment, not by a need for
funds to meet basic maintenance and operating needs. These
pressures will only mount as welfare and SSI changes take hold
and any new targeting requirements take effect.
Committee Democrats are concerned that the short-sighted
authorization levels and majority budget views are but one more
example of the Republican strategy of divining policy by the
numbers without considering the impact on very low income
families.
Choice based rental housing
Generally, we support many of the changes in the rental
assistance program. The provisions essentially merge the
section 8 certificate and voucher programs into one new
program, much as the House adopted in the 103rd Congress. The
new program includes requirements which bring the rental
assistance program more closely in line with the conventional
real estate market--reformed lease requirements, repeal of
``take one, take all'', repeal of the ``endless lease'', and
others. We believe that the program streamlining and merger
will make it more attractive to a broader range of landlords
and rental properties. However, the new program also includes a
number of provisions with which we strongly disagree.
The new rental assistance program provides for a minimum
rental share, rather than a capped family contribution; and
retains the concept of fair market rent, now called a rental
indicator, and a payment standard as under the current section
8 voucher program. It also relaxes targeting and repeals
federal preferences. As discussed above, we believe that
retaining a cap of the resident's share of rent is critical as
is deeper targeting of assistance to very low income families.
Home Rule Flexible Block Grant
The Committee bill establishes a housing block grant that
would permit HUD, at a local official's request, to re-direct
all public and choice based housing funds previously allocated
to the locality's PHA to the local official. The official, on
the other hand, is bound by few other restrictions like federal
rent restrictions, targeting requirements, resident
participation requirements, or resident protections. As a
result, we fear that the longstanding federal investment in
public and assisted housing will be abandoned, leaving many low
and moderate income families with severe housing needs unmet.
While we support partnering local and federal efforts to
increase affordable housing, we united in opposition to the
block grant approach because it creates an adversarial, rather
than cooperative, relationship between local and federal
entities. By permitting a locality to compete directly for all
of the PHA's funds, we will have stripped the locality and the
PHA of all incentives to work together. Yet it is crucial to
the success of these programs for the locality and PHA to
coordinate city services, such as policing, trash removal, and
community investment effort. By encouraging competition rather
than fostering cooperation, we believe that in the end those
who will suffer the reduction in services will be the
residents.
We also believe that the local block grant approach is a
resounding statement that despite the numerous policy reforms
included in the bill, housing authorities cannot adequately
meet the housing needs of the poor. We strongly disagree with
that notion, and believe that the Committee should continue
working to improve and strengthen that which we have invested
in for decades--public housing--and direct PHAs and localities
to work together in meeting the housing needs of the community.
We join with former Secretary Henry Cisneros who actively
opposed efforts to include a local block grant in the 1997 HUD
budget. He argued in a letter to OMB Director Raines that the
deregulation and transformation of public housing
transformation was on course and was successfully enabling PHAs
to better manage scarce resources and provide residents choice
and mobility. The block grant, he went on, would only frustrate
those advancements and achieve OMBs goal of blocking and
cutting our Nation's housing programs.
Without question the great majority of housing authorities
are successfully and efficiently providing an important and
basic need to our nation's lower income families. In order to
continue to do so, we believe that PHAs must continue as
autonomous, federally supported entities, partnering with
localities. A PHA's autonomy from the local political structure
increases the agency's accessibility and responsiveness to the
families they serve.
But if the locality were to run the grant program, the
nature of local bureaucracies would prohibit such accessibility
and responsiveness. Sunia Zaterman, Executive Director of the
Council of Large Public Housing Authorities, spoke persuasively
to this issue before the Banking Committee on March 6, 1997. In
her testimony she stated, ``The insertion of the city will
entail another layer of bureaucracy and (administrative) cost.
City Halls, often encumbered with archaic civil service
systems, are unaccustomed to the exigencies and urgencies of
real estate management.'' Obviously, autonomy is not only
important to the empowerment of public and assisted housing
residents but also to the success of our federally financed
housing programs.
We also believe that in this time of fiscal restraint,
federal housing dollars should be targeted to those with the
greatest need. According to HUD's study released in March of
1996, ``Rental Housing Assistance at a Crossroads,'' 70% of
families below 30% of the area median income have severe
housing needs. The block grant, however, would permit the
locality to neglect those families, forcing them to sustain
extreme rental costs, live in substandard housing, or live on
the streets.
In response to that concern, Republican Committee Members
argue that the block grant will give localities the flexibility
to implement innovative housing programs that meet those
families' needs. While that should be a locality's goal, there
are no requirements in the program to ensure that those
families are accommodated. In fact, we provide localities
federal assistance through direct grant programs such as HOME
and CDBG and encourage localities to be innovative in rehabilitating or
producing housing through such programs; yet those programs do not
reach out to the families that are served by the public and assisted
housing programs because the targeting requirements are broader.
Therefore, we strongly believe that the public and assisted housing
programs must be preserved to reach those in need.
Another fear in block granting these programs is that it is
a backdoor effort to reduce funds available for housing. As we
see many of the housing block grants targeted for budgetary
cuts, it is reasonable to expect that this block grant will be
at risk in the future as well. Once the majority of the public
and choice based housing funds are being diverted to the block
grant, it will be only a matter of time before the entire
program is turned into a block grant and the federal commitment
to housing further challenged.
Housing foundation and accreditation board
The Committee bill authorizes an independent study of the
possible advantages to implementing a board, or any other
system, to evaluate and accredit PHAs, but then absurdly
negates the value of such a study by imposing a federal
accreditation board upon the completion of the study regardless
of the study's results. While we recognize that the bill
improves the Public Housing Management and Assessment Program
(PHMAP) to include evaluations of a PHA's success in promoting
self sufficiency and in providing basic, acceptable housing
conditions and maintains PHMAP while the study is underway,
these improvements are more than offset by the fiscally
wasteful and intellectually irrational policy decision to
mandate a study but ignore the results. WE cannot support a
costly study that will have little to no value when the
Republican Congress is cutting social programs left and right.
With regard to the merits of establishing an accreditation
board, however, we acknowledge the critical need for more
accountability of PHAs and their performance. Notwithstanding,
we have numerous concerns about establishing this board with
such vast powers.
We believe that this new entity is duplicative of HUD and
its responsibilities. There seems to be no sense of where HUD's
responsibilities end and the board's begin. HUD's Inspector
General, Susan Gaffney, who testified before the Subcommittee
on Housing and Community Opportunity on March 11, 1997,
expounded on that point. In her tempered opposition to
establishing a Board, she stated, ``The Board could also become
a parallel and competing organization with HUD, potentially
resulting in turf battles and finger-pointing.'' We also find
it somewhat ironic that this board must be created, in part
according to the majority, because HUD is losing its staff and
its capacity to monitor housing authorities adequately.
Congress enacted PHMAP in 1992 precisely to monitor public
housing agency performance. While its measurement scales are
quantitative and objective, HUD staff is required to review
PHMAP scores to provide assistance to housing authorities which
receive low and failing scores. Certainly, the use of PHMAP can
be improved with HUD providing greater follow up on the scores
of PHAs. However, we believe it generally is a system that
works; yet the new board will use PHMAP only in transition.
The majority touts the new board for its critical role in
placing ``death penalties'' on poor performing housing
authorities. Yet, if such a penalty is imposed, HUD must impose
it. The entity responsible for making decisions about the
status of PHAs will be disassociated from those who are
responsible for implementing those decisions.
Finally, although the board will be responsible for
granting accreditation to PHAs, the board's chief
responsibility seems to be punitive--distinguishing PHAs that
are poor performers--yet the bill then requires HUD to blindly
step in and impose sanctions on the agency. We particularly are
concerned about one sanction--holding back Community
Development Block Grant (CDBG) funds if the Secretary
determines that the city substantially added to the PHA's poor
performance. We are concerned that the very cities sanctioned
by loss of CDBG are the cities with the greatest housing and
CDBG needs. The only ones who will lose are the low income
families. We are also concerned that HUD will lack the proper
information to accurately make an assessment, resulting in the
sanction being mis-used as a political tool. Therefore, we
would urge HUD to impose this sanction sparingly.
Notwithstanding the favorable outcome of improving the
status of PHAs in our communities, the new accreditation board
bureaucracy will simply add another layer of politics an
confusion. Even the model upon which the board was created, the
hospital accreditation board, has come under recent attack for
imposing meaningless standards and not enforcing them. We agree
that the Committee should thoughtfully address show to improve
the reputation and performance of PHAs, but the bill, once
again, goes too far.
COMPAC
An amendment offered by Representative Vento clarified that
the broadened the drug elimination grant program, the Community
Partnerships against Crime (COMPAC) program, would be available
on a formula basis, but only to those who demonstrate need with
respect to criminal activity in or around public housing. This
should address the concerns of large housing authorities in big
cities with such overwhelming crime problems.
We believe that COMPAC can and should continue to provide a
guaranteed resource for local authorities to enlist and retain
allied law enforcement, provide drug prevention and treatment,
engage in anti-gang activities, provide youth recreational
opportunities, and to hire security personnel. So we are
particularly pleased that another Vento amendment was accepted
to authorize the COMPAC program for the term of the bill.
Occupancy standards
In an effort to clarify HUD's role in establishing limits
on the number of occupants per bedroom for rental housing, the
Committee bill prohibits HUD from setting a national occupancy
standard. Because we believe this policy merely legislates what
is HUD's current practice, we support this provision in the
bill. In addition, we are encouraged that the Committee
overwhelminglydecided to preserve the Fair Housing Act's (FHA)
prohibition on discrimination against families with children, as well
as HUD's obligations under the FHA, and omit provisions that enforced a
national occupancy standard. We strongly believe that HUD plays an
integral and valuable role in enforcing the FHA and should not be
hamstrung in its efforts to do so. HUD must continue to direct its
field investigators, as it currently does under the Keating memorandum,
to consider certain criteria when investigating allegations of
discrimination under the FHA; and consider promulgating a rule guiding
housing providers on establishing occupancy limits that do not
discriminate against any persons based on race, color, religions,
handicap, sex, familial status, or national origin.
During the course of the debate regarding whether the
Congress should impose a national occupancy standard, the
Committee--with little exception--expressed strong and clear
opposition to setting a national limitation on the number of
occupants per bedroom. Members from both parties told of their
childhood experiences where three siblings shared one bedroom
or slept in living spaces because the bedrooms were full. They
recognized that those experiences did not diminish their health
and well-being or prohibit them from pursuing great things.
Instead they recognized that the imposition of a national
occupancy standard would worsen the shortage of housing for
families with children. In turn, we believe the Committee
acknowledged that the FHA is working in our communities by
allowing for reasonable occupancy standards that act to protect
the health and safety of residents, but prohibiting
discriminatory standards that merely keep families out.
Legislative process
The Committee bill represents a major restructuring of the
two housing programs that serve our nation's low income
families. It repeals the United States Housing Act of 1937,
which has stood with amendment through the years, as the basic
law governing the public housing program and the rental
assistance program since its enactment. However, this
Committee, in less than two months and with only three hearings
before the Subcommittee in Washington, marked up and reported
H.R. 2. The Subcommittee on Housing and Community Opportunity
was by-passed in favor of mark-up at the full Committee on
Banking. We believe an opportunity to air all the issues and
make important technical and policy refinements was lost.
We believe that such fundamental change demanded a more
thorough legislative process. The bill makes wholesale changes
in public policy, to current law, and to HUD program. Such
changes are certain to have broad impacts on current and future
residents of public and assisted housing, on local authorities,
on private landlords, on housing markets, and on HUD. By
trampling on the legislative process, we believe we are
reporting a bill with unintended, unknown, and adverse
consequences.
Henry B. Gonzalez.
Bruce F. Vento.
Luis V. Gutierrez.
Maurice D. Hinchey.
Paul E. Kanjorski.
Julia Carson.
Carolyn B. Maloney.
Tom Barrett.
Jim Maloney.
Carolyn C. Kilpatrick.
Barney Frank.
Joe Kennedy.
John J. LaFalce.
Lucille Roybal-Allard.
Maxine Waters.
Bernard Sanders.
Esteban E. Torres.
Melvin L. Watt.
Nydia M. Velazquez.
Floyd H. Flake.
Jesse L. Jackson, Jr.
Other Dissenting View
By Ron Paul
We, the Congress, are once again asked to re-enact federal
housing legislation that is unconstitutionally,
philosophically, economically and practically unsound.
Prior to the Constitution-circumventing New Deal policies
of the Fed-induced Depression era, such redistributionist
policies whereby government takes money from one citizen to pay
the housing costs (or some other cost) of another was
forbidden. Supreme Court Justice Samuel Chase, in Calder v.
Bull, opined that ``a law that takes property from A and gives
it to B: it is against all reason and justice, for a people to
intrust a legislature with such powers.'' Yet, this
redistributionary scheme, rather than the exception, has become
the rule as well as the rule of law in this twentieth-century,
special-interest-state.
But even setting aside the unconstitutionality of
government's twentieth century housing policy for the moment,
such redistributionary schemes are philosophically bankrupt as
well. A right to housing, as espoused by proponents of this
legislation, (or a right to more than the fruits of one's own
labor), by definition must deprive some other the right to keep
the fruit of his or her own labor. Moreover, such a ``right''
cannot be a right as it is not enjoyable by all simultaneously.
For if each is entitled by right to more than the fruit of
one's own labor, one must then ask from where this additional
production will come. It is this fallacy that prompted Frederic
Bastiat, the brilliant 18th Century political-economist to
remark: ``the state is that great fictitious entity by which
everyone seeks to live at the expense of everyone else.''
Bastiat understood that government was an agreement entered
into for the purpose of protecting one's own property rather
than the tool by which individuals could collectively band
together to deprive others of theirs.
The problems with government housing extends even beyond
these not-so-insignificant barriers. The economic and practical
aspects of such a policy warrant serious scrutiny as well. One
must not forget that individuals respond to incentives and
incremental measures moving this country further in the wrong
policy direction must be actively opposed.
There are those in this Congress who concede that there are
serious problems with our federal housing policy but argue that
we must ``reform'' it to correct these problems. By
incrementally moving in the right direction we can look out for
those affected (not just the tenants but the others dependent
upon the government miscreant as well).
This incrementalist approach has not worked in the past and
will not work in the future. This bill will NOT move us
incrementally in the right direction. The direction in which
this legislation will lead us could be referred to as a
continuation of ``mission creep.'' An idea for a small program
or expenditure, no matter how ``deserving'' or well meaning,
will only feed an ever-growing appetite for more government
money.
This bill will demonstrate yet again the innate nature of a
government subsidy to grow exponentially. Despite the confident
assurances of "flatlining" the HUD budget for a few years,
government subsidized housing will continue to grow. A GAO
report points out that there are an additional $18 billion in
FHA insured mortgages at risk. While not a part of H.R. 2
directly, the liabilities associated with the subsidized
mortgages on the housing projects and other factors virtually
assure it, even if it were not the nature of government's quest
to sate its ravenous consumption of our money.
The social reformers of the New Deal era persuaded a pliant
government to address the issue of unemployment and the needs
of the slum dwellers. Presumably, no one bothered to address
the responsibility issue. John Weicher of the Hudson Institute
explains well the logic that brought us the current situation.
The social reformers of that era chose to ignore market
forces, human nature and the nature of government. If
government spends enough of other people's money, government
can change lives. ``We know better for them than they do (and
just how to do it),'' was the condescending implication.
They claimed that poor tenement housing largely caused the
social ills of the urban dwellers. These so-identified breeding
grounds of crime, delinquency, disease, mental illness and
worse were regarded as the result of the poor living
conditions, not the cause. If government could give them decent
housing, government could eliminate these problems, they
dreamed. That dream has become a nightmare for all too many
people--both for the people trapped by the constraints of the
public dole and those forced through taxation to pay for it.
The erstwhile social reformers thought government could
eliminate the slums, create jobs in a depression and even
encourage home ownership. Through government, they could
realize their dreams. They were wrong.
The United States Housing Act of 1937 established public
housing, our oldest subsidy program, in order to create
affordable, Depression-era housing for those temporarily
unemployed or underemployed, eliminate slums and increase
employment through make-work construction jobs. The Great
Depression has long been over, but its misguided largesse and
Constitution-circumventing redistribution schemes continue. Of
course, we are still paying the deficit--with compound
interest--for those jobs despite having institutionalized slum
life.
The War on Poverty demonstrated the mission creep. In 1965
government created the Housing and Urban Development (HUD)
Agency following the beginning in 1961 of federally-subsidized
construction of privately-owned housing projects. Subsidized
housing has now mutated into three forms: public housing,
privately-owned projects and, Section 8 certificates and
vouchers for use in privately-owned housing. Each of these
three forms of government-subsidized housing makes up roughly
one-third of the subsidized housing stock.
Of the public housing projects, over 850,000 of the 1.4
million units were built between 1950 and 1975. Only about
100,000 new units were added to the public housing stock in the
last 10 years. These units are built entirely with public
funds, and the federal government pays part of the cost of
operation. Over time, the federal government has to pay to
modernize these developments too.
However, the local Public Housing Authorities (PHAs) run
the projects with such ineptitude in so many cases they are
literally run into the ground. Costs to operate the public
housing projects are comparable to private housing, according
to HUD numbers, only if one does not consider the cost of
building the units in the first place--as if the cost of the
mortgage on a private housing building should not be a factor
in setting the rent!
The federal government then picks up the tab for the so-
called modernization, or rehabilitation, of the projects as
they deteriorate. With this setup, there is no incentive for
the local PHA officials to reinvest the rental income back into
the units. As a consequence, the local PHA does not maintain
them sufficiently, and the tenants suffer a life in substandard
housing. Standards that are deemed unacceptable in private
housing are somehow good enough in the government's eyes for
those on the lower rungs of the socio-economic ladder.
The privately-owned projects also bilk taxpayers on a grand
scale, according to HUD Secretary Andrew Cuomo. He lambastes
the fact that the government is overpaying rents compared to
what his department considers Fair Market Rent. HUD is
subsidizing rents of $849 a month in Chicago neighborhoods
where the market rate is only $435 a month; paying $972 a month
in Oakland, Ca., against a market rate of $607 a month; and in
Boston, government is paying $1, 023 a month vis-a-vis $667
monthly in the private market, he says.
Mr. Cuomo attacks these abuses and decries the state of
subsidized housing, but he does not recognize that these abuses
are symptomatic of the system he is trying to preserve. ``For
years we have been trying to grapple with this issue,'' he
tells us and dangles promises of huge future savings if
government tinkers around the edges of an ill-conceived system
that tries to cheat the market, tries to circumvent human
nature, and ignores the nature of government subsidies.
His current promises are as false as the promises of his
predecessors. One of his successors will one day lament the
horrible state of subsidized housing he inherited and will
promise grandiose reforms that will save billions if government
only passes a future subsidized housing bill.
One of the worst complications of this approach is the
built-in disincentives to proper management. Under a convoluted
setup, these privately-owned projects rely on FHA insurance and
a federal subsidy paycheck to pay for it. Too often, these ill-
managed projects deteriorate so quickly that the units are torn
down before they pay for their own construction. Under Mr.
Cuomo's directives, HUD will decide the ``market'' rate
concerning its subsidies. The market distortions of the tax
code and FHA insurance make the situation worse.
Vouchers and certificates are the best of the inherently
flawed approaches. About 80% of people with vouchers find
suitable housing of their choice--very often at only 40-60% of
the cost of (less desirable) public housing. After enacting
certificates in 1974 and vouchers in 1983, about 1.5 million
households have been served by this approach--1.1 million
through certificates and 400,000 through vouchers.
The benefits of the tenant-based approach include the
reliance of a quasi-free market competition with the attendant
bonuses of lower costs, greater efficiency, rewards for
personal initiative, and individual choice. Under tenant-based
rental assistance, recipients are less likely to live in
concentrated poor urban communities that often lack basic
necessities: safety, good schools, employment opportunities,
access to financial services, etc. They have a way out of the
trap of project-based public housing units that have become a
way of life.
Market incentives through tenant choice put the renters in
charge of their housing decisions. They may find the housing of
their choice and even keep the difference between the rent and
the voucher if they find housing for less than their voucher
enabled them. (This is not the case with the certificates.)
Unfortunately, the household remains tied to the state with the
contingent constraints and perverse incentives that this
arrangement implies.
Unfortunately, H.R. 2 does not address these concerns. It
leaves uncertain the ``proper'' approach to subsidized housing
despite the fanfare of a ``new'' approach. While formally
repealing the 1937 housing act, the mentality remains along
with the compendium of problems inherently associated with it.
The bill leaves uncertain whether a ``tenant-based
approach'' or a ``project-based approach'' will be instituted.
In the Washington tradition, a compromise is offered. Again, in
the Washington tradition, this bill embraces the worst aspects
of both approaches and fuses them together.
This bill tries to ``target'' their social reforms now. By
this government attempts to force social reforms through
osmosis by luring better role models into the modern slums.
Perhaps the Ellen Wilson housing project in Washington, D.C.,
just blocks away from the Capitol, would reassure us as to the
benefits of incrementalism. In a city with a waiting list of
16,000 people, government is spending about $186,000 per unit
to build subsidized housing instead of spending less per unit
and housing more people.
One would hope that at least such incredible sums are going
to the most needy of the 16,000 people waiting for subsidized
housing. Yet even those earning up to $78,000 a year could
qualify. Incremental social reform is not cost efficient.
The Washington Post wrote on April 24, 1997 that Valley
Green, a Washington, D.C. housing project built in early 1960s,
was launched ``to house people displaced by `slum clearance,'
[and] soon became a slum itself, poisoned over the decades by a
toxic brew of poverty, rampant vandalism, violent drug dealing
and government neglect. * * * The resulting wasteland, which
stretches across 20 acres of silent concrete courtyards and
rutted city streets, has come to serve in recent years as a
convenient backdrop for politicians looking to cast blame for
decades of despair.''
This story is very indicative. It is one that has been
retold far too many times in too many places. This expenditure
has not even provided decent housing to those government was
trying to help. According to HUD inspection general reports, up
to 80% of the units fail inspections.
It is a story that will be retold again and again if this
bill passes. It is a testimony of the effects of government-
engineered social reform of housing. One must not forget the
lofty goal of slum elimination of the 1930s that spawned this
misadventure. That lofty goal of the 1960s spawned the dreamily
named Valley Green. One can only wonder what name government
shall bestow upon the next housing project born under H.R. 2's
new legislative regime.
Aside from the simple accounting costs associated with
government subsidized housing, there are other real costs.
Unfortunately even this simplicity eludes HUD which routinely
demonstrates that it is incapable of understanding basic
accounting and accountability. Just this month, a
Congressionally-instigated investigators of Section 8 contract
reserve accounts ``discovered'' $5 billion dollars in addition
to the $1.6 billion in excess reserve funds recaptured late
last year. I sincerely doubt that the residents of Valley
Green, other housing projects and taxpayers think this is a
well-run program.
Just since HUD was created, government has appropriated
over $572 billion to the agency. Of course, this figure does
not include rents and fees collected by the agency, so that it
could be argued that total funding for public housing has been
much higher. HUD is budgeted annually around $21.7 billion for
each of the next five years, but the figure for last year was
only $19.4 billion. More money will be wasted.
For fiscal years, 1965-1975, the agency's budget authority
totalled less than $40 billion. In other words, government has
spent over half a trillion dollars of taxpayers' hard-earned
money on subsidized housing in the last 20 years.
Nor has this half a trillion dollars increased the home
ownership rates of Americans. The fourth quarter averages of
home ownership between 1965-1974 averaged 64%. Despite such
governmental largesse, fourth quarter rates of home ownership
averaged 64% between 1965-1996. Certainly HUD has not made a
significantly positive contribution to the goal of home
ownership. They will be able to point to the easily identified
few who have been helped at the expense of the less easily
identified many who were negatively affected.
One must not forget that the increased government
expenditures derived through taxation have stifled the ability
of many would-be home owners to save for the down payment and
purchase the home of their dreams. Instead, they pay the taxes
to bankroll the dreams of the social reformers, past and
present.
They are paying not only the bills of today but the taxes
necessary to pay for the deficit spending dreamed up by
previous social reforms. There is a real economic cost to these
deficits. The distortions to the free market whereby the most
efficient allocations of resources are made. HUD shows us the
alternative (and considered enlightened) path to allocating
resources better. The HUD bureaucracy consumes valuable
resources that are best spent elsewhere. Even the new HUD
Secretary concedes very readily that HUD is inefficient and
wasteful. Government just needs to give it more time and more
money, the Secretary pleads. Of course more time and more money
have already cost us too much.
This irresponsible pipe dreaming has contributed to unsound
fiscal and monetary policies and introduced new iterations in
the business cycle. As the market tries to factor in these
government-spending-induced booms and busts, security against
its ravages of higher unemployment and higher interest rates
takes their toll. This added cost fuels the cycle which
exacerbates the problem.
Not only the taxpayers suffer under this approach. The
civil rights of the tenants of subsidized housing are discarded
as housing sweeps violative of the fourth amendment are
conducted in the name of a misdirected war on poverty and lack
of affordable housing.
Of course it is the middle class and working poor who pay
the cost most directly. The rich shelter their money from many
income taxes and have their FICA taxes for Social Security
capped. This regressive Social Security tax takes an unfair
toll on the working poor and middle class. Many more people
could afford better housing absent paying for the
inefficiencies of the government's approach to housing.
H.R. 2 is not the solution to our problems. Rather, it is
an illustration of the creeping mission of more government for
a longer period of time not fulfilling the dreams of its
engineers. This bill is more of the same incrementalism that
began in the 1930s. Despite proof that it was not working, we
are asked to vote again to throw more money at the problem,
give government more control of our lives and reap the rewards.
In the 1960s, government acknowledged again the failure of
the mission and expanded the reach of government exponentially.
With those promises demonstrably unfulfilled, government find
itself again at a crossroads. Continue creeping incrementally
towards more government spending and a loss of civil and
economic liberties OR the path of freedom. I urge government to
offer liberty.
I do not doubt the compassion and intentions of many of the
social reformers, then or now. They are indeed well-meaning
folks. The problem is that the effects of their good intentions
run counter to the aims of their endeavors.
Instead of a "safety net" that merely prevents a newly-
unemployed single mother from falling, the public housing
project traps her and her family in its net and holds them
hostage to the whims of the local Public Housing Authorities.
These PHAs are not accountable to her. She has sacrificed her
liberty to PHAs that are too often sinecures provided by
political cronyism. Tales of their abuse are legendary.
This corrupt scenario produces crime statistics
proportionately twice as high in and around subsidized housing
projects as in the communities as wholes, according to HUD's
Office of Public and Indian Housing. Without the accountability
inherent in a market situation, abuses are almost predictable.
The public housing projects are but one of the worst examples
of flouting the free market and the loss of accountability.
H.R. 2 attempts to improve the lot of those benefiting from
subsidized housing and make the bureaucracy less burdensome.
Unfortunately, by the time this proposal goes to the floor, so
many changes will have been made, compromises accepted and
political deals consummated that we end up with a bill in some
ways worse than the status quo, as bad as that is.
The end result of this well-meaning attempt to care for
those less fortunate is higher taxes (especially on the working
poor), slower economic growth, fewer job offers and a
reaffirmation of government's determination to keep tenants
trapped in substandard housing whose managers are not
accountable to them.
At the same time, those politically-astute suppliers of
government housing encourage the continuation of such programs
at the expense of the more productive suppliers whose political
polish does not place them in the ambit of those doling out the
grants.
We should end this misguided approach to such legislation.
It punishes all taxpayers with the future additional expense of
increased eligibility requirements while limiting further the
availability of subsidized housing for those who currently
qualify. It rewards special interest favors for the
politically-connected--both unaccountable subsidized housing
managers, department bureaucrats, politically-contributing
public construction businesses and the landlords cashing above
market government rent checks for substandard housing.
The opportunity that H.R. 2 provides is squandered in an
extension of more of the same. While consolidating programs
could make oversight easier and bureaucrats and local PHAs more
accountable, it is unlikely that this bill will go far enough
to address the problems with our subsidized housing programs.
New problems resulting from ``targeting'' are almost certain.
Many of the critics of the left are correct to point out this
mean misallocation of funds from the working poor and middle-
class to tenants with higher incomes than current tenants
despite the waiting list.
Only by rewarding individual initiative, choice,
responsibility and the resultant accountability can government
reforms better serve the recipients. Of course, only less
government and lower taxes will truly meet those aims.
Ron Paul.