[House Report 110-507]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    110-507

======================================================================



 
          HOPE VI IMPROVEMENT AND REAUTHORIZATION ACT OF 2007

                                _______
                                

January 3, 2008.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Frank of Massachusetts, from the Committee on Financial Services, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 3524]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Financial Services, to whom was referred the 
bill (H.R. 3524) to reauthorize the HOPE VI program for 
revitalization of severely distressed public housing, and for 
other purposes, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................    12
Background and Need for Legislation..............................    13
Hearings.........................................................    15
Committee Consideration..........................................    15
Committee Votes..................................................    15
Committee Oversight Findings.....................................    16
Performance Goals and Objectives.................................    16
New Budget Authority, Entitlement Authority, and Tax Expenditures    16
Committee Cost Estimate..........................................    16
Congressional Budget Office Estimate.............................    16
Federal Mandates Statement.......................................    17
Advisory Committee Statement.....................................    18
Constitutional Authority Statement...............................    18
Applicability to Legislative Branch..............................    18
Earmark Identification...........................................    18
Section-by-Section Analysis of the Legislation...................    18
Changes in Existing Law Made by the Bill, as Reported............    22
Additional Views.................................................    43

                               Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``HOPE VI Improvement 
and Reauthorization Act of 2007''.
  (b) References.--Except as otherwise expressly provided in this Act, 
wherever in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, a section or other provision, the reference 
shall be considered to be made to a section or other provision of the 
United States Housing Act of 1937 (42 U.S.C. 1437 et seq.).
  (c) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title; references; table of contents.
Sec. 2. Purposes of program.
Sec. 3. Authority to waive contribution requirement in cases of extreme 
distress or emergency.
Sec. 4. Prohibition of demolition-only grants.
Sec. 5. Repeal of main street projects grant authority.
Sec. 6. Eligible activities.
Sec. 7. Selection of proposals for grants.
Sec. 8. Requirements for mandatory core components.
Sec. 9. Planning and technical assistance grants.
Sec. 10. Annual report; availability of documents.
Sec. 11. Definitions.
Sec. 12. Conforming amendment.
Sec. 13. Authorization of appropriations.
Sec. 14. Extension of program.
Sec. 15. Review.
Sec. 16. Regulations.

SEC. 2. PURPOSES OF PROGRAM.

  Subsection (a) of section 24 of the United States Housing Act of 1937 
(42 U.S.C. 1437v(a)) is amended--
          (1) in paragraph (1), by inserting before ``through'' the 
        following: ``located in communities of all sizes, including 
        small- and medium-sized communities,'';
          (2) in paragraph (3)--
                  (A) by inserting ``low- and'' before ``very low-
                income''; and
                  (B) by striking ``and'' at the end;
          (3) in paragraph (4), by striking the period at the end and 
        inserting ``; and''; and
          (4) by adding at the end the following new paragraph:
          ``(5) promoting housing choice among low- and very low-income 
        families.''.

SEC. 3. AUTHORITY TO WAIVE CONTRIBUTION REQUIREMENT IN CASES OF EXTREME 
                    DISTRESS OR EMERGENCY.

  Subsection (c) of section 24 is amended by adding at the end the 
following new paragraph:
          ``(4) Waiver.--
                  ``(A) Authority.--The Secretary may waive the 
                applicability of paragraph (1) with respect to an 
                applicant or grantee if the Secretary determines that 
                circumstances of extreme distress or emergency, in the 
                area that the revitalization plan of the applicant is 
                to be carried out, directly affect the ability of the 
                applicant or grantee to comply with such requirement.
                  ``(B) Regulations.--The Secretary shall issue 
                regulations to carry out this paragraph, which shall--
                          ``(i) set forth such circumstances of extreme 
                        distress and emergency; and
                          ``(ii) provide that such circumstances shall 
                        include any instance in which the area in which 
                        a revitalization plan assisted with amounts 
                        from a grant under this section is to be 
                        carried out is subject to a declaration by the 
                        President of a major disaster or emergency 
                        under the Robert T. Stafford Disaster Relief 
                        and Emergency Assistance Act.''.

SEC. 4. PROHIBITION OF DEMOLITION-ONLY GRANTS.

  Section 24 is amended--
          (1) in subsection (c)(3), by striking ``or demolition of 
        public housing (without replacement)'';
          (2) in the first sentence of subsection (e)(3)--
                  (A) by striking ``demolition only,''; and
                  (B) by striking the last comma; and
          (3) in subsection (e), by adding at the end the following new 
        paragraph:
          ``(4) Prohibition of demolition-only grants.--The Secretary 
        may not make a grant under this section for a revitalization 
        plan that proposes to demolish public housing without 
        revitalization of any existing public housing dwelling 
        units.''.

SEC. 5. REPEAL OF MAIN STREET PROJECTS GRANT AUTHORITY.

  Section 24 is amended--
          (1) by striking subsection (n) (relating to grants for 
        assisting affordable housing developed through main street 
        projects in smaller communities);
          (2) in subsection (a), by striking the last sentence (that 
        appears after and below paragraph (5), as added by section 2(4) 
        of this Act);
          (3) in subsection (l)--
                  (A) in paragraph (3), by striking ``, including a 
                specification of the amount and type of assistance 
                provided under subsection (n);'' and inserting ``; 
                and''; and
                  (B) by striking paragraph (4); and
          (4) in subsection (m), by striking paragraph (3).

SEC. 6. ELIGIBLE ACTIVITIES.

  Paragraph (1) of section 24(d) is amended--
          (1) in the matter preceding subparagraph (A), by striking 
        ``programs'' and inserting ``plans'';
          (2) in subparagraph (G), by striking ``program'' and 
        inserting ``plan'';
          (3) by striking subparagraph (J) and inserting the following 
        new subparagraph:
                  ``(J) the acquisition and development of replacement 
                housing units in accordance with subsection (j);''.
          (4) in subparagraph (K), by striking ``and'' at the end;
          (5) in subparagraph (L)--
                  (A) by striking ``15 percent'' and inserting ``25 
                percent''; and
                  (B) by striking the period at the end and inserting a 
                semicolon; and
          (6) by adding at the end the following new subparagraphs:
                  ``(M) necessary costs of ensuring the effective 
                relocation of residents displaced as a result of the 
                revitalization of the project, including costs of 
                monitoring as required under subsection (k); and
                  ``(N) activities undertaken to comply with the 
                provisions of (B)(vii) and (C)(xiii) of subsection 
                (e)(2) and subsection (l) (relating to green 
                developments).''.

SEC. 7. SELECTION OF PROPOSALS FOR GRANTS.

  (a) Selection Criteria.--Section 24(e) is amended by striking 
paragraph (2) and inserting the following new paragraph:
          ``(2) Grant award criteria.--
                  ``(A) Establishment.--The Secretary shall establish 
                criteria for the award of grants under this section.
                  ``(B) Mandatory core components.--The criteria under 
                this paragraph shall require that a proposed 
                revitalization plan may not be selected for award of a 
                grant under this section unless the proposed plan meets 
                all of the following requirements:
                          ``(i) Evidence of severe distress.--The 
                        proposed plan shall contain evidence sufficient 
                        to demonstrate that the public housing project 
                        that is subject to the plan is severely 
                        distressed, which shall include--
                                  ``(I) a certification signed by an 
                                engineer or architect licensed by a 
                                State licensing board that the project 
                                meets the criteria for physical 
                                distress under subsection (t)(2); and
                                  ``(II) such other evidence that the 
                                project meets criteria for nonphysical 
                                distress under subsection (t)(2), such 
                                as census data, crime statistics, and 
                                past surveys of neighborhood stability 
                                conducted by the public housing agency.
                          ``(ii) Resident involvement and services.--
                        The proposed plan shall provide for 
                        opportunities for involvement of residents of 
                        the housing subject to the plan and the 
                        provision of services for such residents, in 
                        accordance with subsection (g).
                          ``(iii) Relocation plan.--The proposed plan 
                        shall provide a plan for relocation of 
                        households occupying the public housing project 
                        that is subject to the plan, in accordance with 
                        subsection (h), including a statement of the 
                        estimated number of vouchers for rental 
                        assistance under section 8 that will be needed 
                        for such relocation.
                          ``(iv) Resident right to expanded housing 
                        opportunities.--The proposed plan provides 
                        right of resident households to occupy housing 
                        provided under such revitalization plan in 
                        accordance with subsection (i).
                          ``(v) One-for-one replacement.--The proposed 
                        plan shall provide a plan that--
                                  ``(I) provides for replacement in 
                                accordance with subsection (j) of 100 
                                percent of all dwelling units 
                                demolished or disposed of under such 
                                revitalization plan, as of the date of 
                                the application for the grant, on the 
                                site of the original public housing or 
                                within the jurisdiction of the public 
                                housing agency;
                                  ``(II) identifies the type of 
                                replacement housing that will be 
                                offered to tenants displaced by the 
                                revitalization plan;
                                  ``(III) contains such agreements with 
                                or assurances by the Secretary, State 
                                and local governmental agencies, and 
                                other entities sufficient to ensure 
                                compliance with subsection (j) and the 
                                requirements of section 18 applicable 
                                pursuant to subsection (p)(1); and
                                  ``(IV) contains such assurances or 
                                agreements as the Secretary considers 
                                necessary to ensure compliance with 
                                subsection (i)(2).
                          ``(vi) Fair housing; limitation on 
                        exclusion.--The proposed plan shall be carried 
                        out in a manner that complies with section (m) 
                        (relating to affirmatively furthering fair 
                        housing and limitation on exclusion).
                          ``(vii) Green developments.--The proposed 
                        plan complies with the requirement under 
                        subsection (l) (relating to green 
                        developments).
                  ``(C) Mandatory graded components.--The criteria 
                under this paragraph shall provide that, in addition to 
                the requirements under subparagraph (B), the proposed 
                revitalization plan shall address and meet minimum 
                requirements with respect to, and shall provide 
                additional priority based on the extent to which the 
                plan satisfactorily addresses, each of the following 
                issues:
                          ``(i) Compliance with purposes.--The extent 
                        to which the proposed plan of an applicant 
                        achieves the purposes of this section set forth 
                        in subsection (a).
                          ``(ii) Capability and record.--The extent of 
                        the capability and record of the applicant 
                        public housing agency, public partners, 
                        proposed private development partners, or any 
                        alternative management entity for the agency, 
                        for managing redevelopment or modernization 
                        projects, meeting performance benchmarks, and 
                        obligating amounts in a timely manner, 
                        including any past performance of such entities 
                        under the HOPE VI program and any record of 
                        such entities of working with socially and 
                        economically disadvantaged businesses, as such 
                        term is defined in section 8(a)(4) of the Small 
                        Business Act (15 U.S.C. 637(a)(4)).
                          ``(iii) Diversity outreach.--The extent to 
                        which the proposed revitalization plan includes 
                        partnerships with socially and economically 
                        disadvantaged businesses, as such term is 
                        defined by section 8(a)(4) of the Small 
                        Business Act.
                          ``(iv) Effectiveness of relocation and one-
                        for-one replacement plans.--The extent of the 
                        likely effectiveness of the proposed 
                        revitalization plan for temporary and permanent 
                        relocation of existing residents, including the 
                        likely effectiveness of the relocation plan 
                        under subparagraph (B)(iii) and the one-for-one 
                        replacement plan under subparagraph (B)(v).
                          ``(v) Achievability of revitalization plan.--
                        The achievability of the proposed 
                        revitalization plan pursuant to subsection (o), 
                        with respect to the scope and scale of the 
                        project.
                          ``(vi) Leveraging.--The extent to which the 
                        proposed revitalization plan will leverage 
                        other public or private funds or assets for the 
                        project.
                          ``(vii) Need for additional funding.--The 
                        extent to which the applicant could undertake 
                        the activities proposed in the revitalization 
                        plan without a grant under this section.
                          ``(viii) Public and private involvement.--The 
                        extent of involvement of State and local 
                        governments, private service providers, 
                        financing entities, and developers, in the 
                        development and ongoing implementation of the 
                        revitalization plan.
                          ``(ix) Need for affordable housing.--The 
                        extent of need for affordable housing in the 
                        community in which the proposed revitalization 
                        plan is to be carried out.
                          ``(x) Affordable housing supply.--The extent 
                        of the supply of other housing available and 
                        affordable to families receiving tenant-based 
                        assistance under section 8.
                          ``(xi) Project-based housing.--The extent to 
                        which the proposed revitalization plan sustains 
                        or creates more project-based housing units 
                        available to persons eligible for residency in 
                        public housing in markets where the proposed 
                        plan shows there is demand for the maintenance 
                        or creation of such units.
                          ``(xii) Green developments compliance.--The 
                        extent to which the proposed revitalization 
                        plan--
                                  ``(I) in the case of residential 
                                construction, complies with the 
                                nonmandatory items of the national 
                                Green Communities criteria checklist 
                                identified in subsection (l)(1)(A), or 
                                any substantially equivalent standard 
                                as determined by the Secretary, but 
                                only to the extent such compliance 
                                exceeds the compliance necessary to 
                                accumulate the number of points 
                                required under such subsection; and
                                  ``(II) in the case of non-residential 
                                construction, includes non-mandatory 
                                components of version 2.2 of the 
                                Leadership in Energy and Environmental 
                                Design (LEED) green building rating 
                                system for New Construction and Major 
                                Renovations, version 2.0 of the LEED 
                                for Core and Shell rating system, or 
                                version 2.0 of the LEED for Commercial 
                                Interiors rating system, as applicable, 
                                or any substantially equivalent 
                                standard as determined by the 
                                Secretary, but only to the extent such 
                                inclusion exceeds the inclusion 
                                necessary to accumulate the number of 
                                points required under such system.
                          ``(xiii) Hard-to-house families.--The extent 
                        to which the one-for-one replacement plan under 
                        subparagraph (B)(v) for the revitalization plan 
                        provides replacement housing that is likely to 
                        be most appropriate and beneficial for families 
                        whose housing needs are difficult to fulfill, 
                        including individuals who are not ineligible 
                        for occupancy in public housing pursuant to 
                        subsection (m)(2), have been released from a 
                        State or Federal correctional facility, have 
                        not been arrested for or charged with any crime 
                        during the period beginning upon probation or 
                        parole and ending one year after completion of 
                        probation or parole, and for whom affordable 
                        housing is a critical need.
                          ``(xiv) Family-friendly housing.--The extent 
                        to which replacement housing units provided 
                        through the revitalization plan contain a 
                        sufficient number of bedrooms to prevent 
                        overcrowding.
                          ``(xv) Additional on-site mixed-income 
                        housing.--The extent to which the one-for-one 
                        replacement plan under subparagraph (B)(v) 
                        provides public housing units in addition to 
                        the number necessary to minimally comply with 
                        the requirement under subsection (j)(2)(A)(i), 
                        including the extent to which such plan 
                        provides sufficient housing for elderly and 
                        disabled residents who indicate a preference to 
                        return to housing provided on the site of the 
                        original public housing involved in the 
                        revitalization plan and complies with the 
                        requirements of subsection (j)(2)(A)(ii).
                          ``(xvi) Other.--Such other factors as the 
                        Secretary considers appropriate.''.
  (b) Treatment of Low-Income Housing Tax Credit Allocations; Mandatory 
Site Visits.--Section 24(e), as amended by the preceding provisions of 
this Act, is further amended by adding at the end the following new 
paragraphs:
          ``(5) Treatment of low-income housing tax credit 
        allocation.--In the case of any application for a grant under 
        this section that relies on the allocation of any low-income 
        housing tax credit provided pursuant to section 42 of the 
        Internal Revenue Code of 1986 as part of the revitalization 
        plan proposed in the application, the Secretary shall not 
        require that the first phase of any project to be developed 
        under the plan possess an allocation of such low-income housing 
        tax credits at the time of such application.
          ``(6) Mandatory site visits.--Notwithstanding any other 
        provision of law, the Secretary shall provide for appropriate 
        officers or employees of the Department of Housing and Urban 
        Development to conduct a visit to the site of the public 
        housing involved in the revitalization plan proposed under each 
        application for a grant under this section that is involved in 
        a final selection of applications to be funded under this 
        section. Site visits pursuant to this paragraph shall be used 
        only for the purpose of obtaining information to assist in 
        determining whether the public housing projects involved in the 
        application are severely distressed public housing.''.

SEC. 8. REQUIREMENTS FOR MANDATORY CORE COMPONENTS.

  Section 24 is amended--
          (1) by redesignating subsections (h) through (m) as 
        subsections (q) through (v), respectively;
          (2) by redesignating subsection (o) as subsection (w); and
          (3) by striking subsection (g) and inserting the following 
        new subsections:
  ``(g) Resident Involvement and Services.--
          ``(1) In general.--Each revitalization plan assisted under 
        this section shall provide opportunities for the active 
        involvement and participation of, and consultation with, 
        residents of the public housing that is subject to the 
        revitalization plan during the planning process for the 
        revitalization plan, including prior to submission of the 
        application, and during all phases of the planning and 
        implementation. Such opportunities for participation may 
        include participation of members of any resident council, but 
        may not be limited to such members, and shall include all 
        segments of the population of residents of the public housing 
        that is subject to the revitalization plan, including single 
        parent-headed households, the elderly, young employed and 
        unemployed adults, teenage youth, and disabled persons. Such 
        opportunities shall include a process that provides opportunity 
        for comment on specific proposals for redevelopment, any 
        demolition and disposition involved, and any proposed 
        significant amendments or changes to the revitalization plan.
          ``(2) Notices.--In carrying out a revitalization plan 
        assisted under this section, a public housing agency shall 
        provide the following written notices, in plain and 
        nontechnical language, to each household occupying a dwelling 
        unit in the public housing that is subject to, or to be subject 
        to, the plan:
                  ``(A) Notice of intent.--Not later than the 
                expiration of the 30-day period beginning upon 
                publication by the Secretary of a notice of funding 
                availability for a grant under this section for such 
                plan, notice of--
                          ``(i) the public housing agency's intent to 
                        submit such application;
                          ``(ii) the proposed implementation and 
                        management of the revitalized site;
                          ``(iii) residents' rights under this section 
                        to participate in the planning process for the 
                        plan, including opportunities for participation 
                        in accordance with paragraph (1), and to 
                        receive comprehensive relocation assistance and 
                        community and supportive services pursuant to 
                        paragraph (4); and
                          ``(iv) the public hearing pursuant to 
                        paragraph (3).
                  ``(B) Notice of grant award and relocation options.--
                Not later than 30 days after notice to the public 
                housing agency of the award of a grant under this 
                section, notice that--
                          ``(i) such grant has been awarded;
                          ``(ii) describes the process involved under 
                        the revitalization plan to temporarily relocate 
                        residents of the public housing that is subject 
                        to the plan;
                          ``(iii) provides the information required 
                        pursuant to subsection (h)(2) (relating to 
                        relocation options); and
                          ``(iv) informs residents of opportunities for 
                        participation in accordance with paragraph (1).
                  ``(C) Notice of grant agreement and relocation 
                options.--Not later than 30 days after execution of a 
                grant agreement under this section with a public 
                housing agency, notice that--
                          ``(i) specifically identifies the housing 
                        available for relocation of resident of the 
                        public housing subject to the revitalization 
                        plan;
                          ``(ii) sets forth the schedule for relocation 
                        of residents of the public housing subject to 
                        the revitalization plan, including the dates on 
                        which such housing will be available for such 
                        relocation; and
                          ``(iii) informs residents of opportunities 
                        for participation in accordance with paragraph 
                        (1).
                  ``(D) Notice of replacement housing.--Upon the 
                availability of replacement housing provided pursuant 
                to subsection (j), notice to each household described 
                in subsection (i)(1) of--
                          ``(i) such availability;
                          ``(ii) the process and procedure for 
                        exercising the right to expanded housing 
                        opportunities and preferences under subsection 
                        (i)(2); and
                          ``(iii) opportunities for participation in 
                        accordance with paragraph (1) of this 
                        subsection.
                  ``(E) Other.--Such other notices as the Secretary may 
                require.
          ``(3) Public hearing.--The Secretary may not make a grant 
        under this section to an applicant unless the applicant has 
        convened and conducted a public hearing regarding the 
        revitalization plan, including the one-for-one replacement to 
        occur under the plan, not later than 75 days before submission 
        of the application for the grant under this section for such 
        plan, at a time and location that is convenient for residents 
        of the public housing subject to the plan.
          ``(4) Services.--Each recipient of a grant under this section 
        shall--
                  ``(A) provide each household who is residing at the 
                site of the revitalization as of the date of the notice 
                of intent under subparagraph (A) with comprehensive 
                relocation assistance for a period that is the latter 
                of the two periods referred to in subparagraph (B) with 
                comprehensive relocation assistance; and
                  ``(B) offer, to each such displaced resident and each 
                low-income family provided housing under the 
                revitalization plan, community and supportive services 
                until the latter of--
                          ``(i) the expiration of the two-year period 
                        that begins upon the end of the development 
                        period under the plan; and
                          ``(ii) the date on which all funding under 
                        the grant for community and supportive services 
                        has been expended.
  ``(h) Relocation Program.--Each recipient of a grant under this 
section shall--
          ``(1) provide for each household displaced by the 
        revitalization plan for which the grant is made to be relocated 
        to a comparable replacement dwelling, as defined in section 101 
        of the Uniform Relocation Assistance and Real Property 
        Acquisition Policies Act of 1970 (42 U.S.C. 4601), and for 
        payment of actual and reasonable relocation expenses of each 
        such household and any replacement housing payments as are 
        required by the Uniform Relocation Assistance and Real Property 
        Acquisition Policies Act of 1970;
          ``(2) fully inform such households of all relocation options, 
        which may include relocating to housing in a neighborhood with 
        a lower concentration of poverty than their current residence 
        or remaining in the housing to which they relocate;
          ``(3) to the maximum extent possible, minimize academic 
        disruptions on affected children enrolled in school by 
        coordinating relocation with school calendars;
          ``(4) establish strategies and plans that assist such 
        displaced residents in utilizing tenant-based vouchers to 
        select housing opportunities, including in communities with a 
        lower concentration of poverty, that--
                  ``(A) will not result in a financial burden to the 
                family; and
                  ``(B) will promote long-term housing stability;
          ``(5) establish and comply with relocation benchmarks that 
        ensure successful relocation in terms of timeliness; and
          ``(6) notwithstanding any other provision of law, in the case 
        of any tenant-based assistance made available for relocation of 
        a household under this subsection, provide that the term during 
        which the household may lease a dwelling unit using such 
        assistance shall not be shorter than 150 days; if the household 
        is unable to lease a dwelling unit during such period, the 
        public housing agency shall either extend the period during 
        which the household may lease a dwelling unit using such 
        assistance or provide the tenant with the next available 
        dwelling unit owned by the public housing agency.
  ``(i) Right to Expanded Housing Opportunities for Resident 
Households.--
          ``(1) In general.--Subject only to paragraph (3), each 
        revitalization plan assisted with a grant under this section 
        shall make available, to each household occupying a dwelling 
        unit in the public housing subject to a revitalization plan 
        that is displaced as a result of the revitalization plan 
        (including any demolition or disposition of the unit), 
        occupancy for such household in a replacement dwelling unit 
        provided pursuant to subsection (j). To exercise such right 
        under this paragraph to occupancy in such a replacement 
        dwelling unit, the household shall respond in writing to the 
        notice provided pursuant to subsection (g)(2)(C) by the public 
        housing agency.
          ``(2) Preferences.--Such a replacement dwelling unit shall be 
        made available to each household displaced as a result of the 
        revitalization plan before any replacement dwelling unit is 
        made available to any other eligible household.
          ``(3) Reports to secretary.--The Secretary shall require each 
        public housing agency carrying out a revitalization plan 
        assisted under this section to submit to the Secretary such 
        reports as may be necessary to allow the Secretary to determine 
        the extent to which the public housing agency has complied with 
        this subsection and to which displaced residents occupy 
        replacement housing provided pursuant to subsection (j), which 
        shall include information describing the location of 
        replacement housing provided pursuant to subsection (j) and 
        statistical information on the characteristics of all 
        households occupying such replacement housing.
  ``(j) One-for-One Replacement.--Each revitalization plan assisted 
with a grant under this section under which any public housing dwelling 
unit is demolished or disposed of shall provide as follows:
          ``(1) Number.--For one hundred percent of all such dwelling 
        units in existence as of the date of the application for the 
        grant that are demolished or disposed under the revitalization 
        plan, the public housing agency carrying out the plan shall 
        provide an additional dwelling unit.
          ``(2) Location.--Such dwelling units shall be provided in the 
        following manner:
                  ``(A) On-site mixed-income housing.--
                          ``(i) One-third requirement.--A mixed-income 
                        housing development shall be provided on the 
                        site of the original public housing involved in 
                        the revitalization plan in which, except as 
                        provided in clause (iii), at least one-third of 
                        all dwelling units shall be public housing 
                        dwelling units and shall be provided through 
                        the development of additional public housing 
                        dwelling units.
                          ``(ii) Requirements for additional on-site 
                        units.--If the mixed-income housing development 
                        provided pursuant to clause (i) includes more 
                        public housing dwelling units at the site of 
                        the original public housing than is minimally 
                        necessary to comply with such clause, the 
                        public housing agency shall consult with 
                        residents, community leaders, and local 
                        government officials regarding such additional 
                        public housing dwelling units and shall ensure 
                        that such units are provided in a manner that 
                        affirmatively furthers fair housing.
                          ``(iii) Exception.--If, upon a showing by a 
                        public housing agency, the Secretary determines 
                        that it is infeasible to locate replacement 
                        dwelling units on the site of the original 
                        public housing involved in the revitalization 
                        plan in accordance with clause (i), all 
                        replacement units shall be located in areas 
                        within the jurisdiction of the public housing 
                        agency having low concentrations of poverty, 
                        except that at least one mixed-income housing 
                        development shall be provided in such an area 
                        within the jurisdiction of the public housing 
                        agency and that one-third of all units in such 
                        development shall be public housing dwelling 
                        units. The Secretary may make a finding of 
                        infeasibility under this clause only if--
                                  ``(I) such location on-site would 
                                result in the violation of a consent 
                                decree; or
                                  ``(II) the land on which the public 
                                housing is located is environmentally 
                                unsafe, geologically unstable, or 
                                otherwise unsuitable for the 
                                construction of housing, as evidenced 
                                by an independent environmental review 
                                or assessment.
                          ``(iv) Deconcentration of poverty.--All 
                        dwelling units provided pursuant to this 
                        subparagraph shall be provided in a manner that 
                        results in decreased concentrations of poverty, 
                        with respect to such concentrations existing on 
                        the date of the application for the grant under 
                        this section.
                  ``(B) Off-site mixed-income housing.--Any other 
                replacement housing units provided in addition to the 
                dwelling units provided pursuant to subparagraph (A) 
                shall be provided, in areas within the jurisdiction of 
                the public housing agency having low concentrations of 
                poverty, through--
                          ``(i) the acquisition or development of 
                        additional public housing dwelling units; or
                          ``(ii) the acquisition, development, or 
                        contracting (including through project-based 
                        assistance) of additional dwelling units that 
                        are subject to requirements regarding 
                        eligibility for occupancy, tenant contribution 
                        toward rent, and long-term affordability 
                        restrictions which are comparable to public 
                        housing units, except that subparagraphs (B) 
                        and (D) of section 8(o)(13) of the United 
                        States Housing Act of 1937 (42 U.S.C. 
                        1437f(o)(13); relating to percentage limitation 
                        and income-mixing requirement for project-based 
                        assistance) shall not apply with respect to 
                        vouchers used to comply with the requirements 
                        of this clause.
          ``(3) Timing.--All replacement dwelling units provided 
        pursuant to this subsection shall be provided not later than 
        the expiration of the 12-month period beginning upon the 
        demolition or disposition of the public housing dwelling units, 
        except that replacement dwelling units financed with a low-
        income housing tax credit under section 42 of the Internal 
        Revenue Code of 1986 in connection with the revitalization plan 
        shall be provided not later than the expiration of the 12-month 
        period beginning upon the allocation of such low-income housing 
        tax credit. To the greatest extent practicable, such 
        replacement or additional dwelling units, or redevelopment, 
        shall be accomplished in phases over time and, in each such 
        phase, the public housing dwelling units and the dwelling units 
        described in subparagraph (B)(ii) of paragraph (2) shall be 
        made available for occupancy before any nonassisted dwelling 
        unit is made available for occupancy.
          ``(4) Fair housing.--The demolition or disposition, 
        relocation, and provision of replacement housing units under 
        paragraph (2)(B) shall be carried out in a manner that 
        affirmatively furthers fair housing, as described in subsection 
        (e) of section 808 of the Civil Rights Act of 1968 (42 U.S.C. 
        3608(e)).
  ``(k) Monitoring of Displaced Households.--
          ``(1) PHA responsibilities.--To facilitate compliance with 
        the requirement under subsection (i) (relating to right to 
        expanded housing opportunities), the Secretary shall, by 
        regulation, require each public housing agency that receives a 
        grant under this section, during the period of the 
        revitalization plan assisted with the grant and until all 
        funding under the grant has been expended--
                  ``(A) to maintain a current address of residence and 
                contact information for each household affected by the 
                revitalization plan who was occupying a dwelling unit 
                in the housing that is subject to the plan; and
                  ``(B) to provide such updated information to the 
                Secretary on at least a quarterly basis.
          ``(2) Certification.--The Secretary may not close out any 
        grant made under this section to a public housing agency before 
        the agency has certified to the Secretary that the agency has 
        complied with subsection (i) (relating to a right to expanded 
        housing opportunities for resident households) with respect to 
        each resident displaced as a result of the revitalization plan, 
        including providing occupancy in a replacement dwelling unit 
        for each household who requested such a unit in accordance with 
        such subsection.
          ``(3) Reports by secretary.--Not less frequently than once 
        every six months, the Secretary shall submit a report to the 
        Congress that includes all information submitted to the 
        Secretary pursuant to paragraph (1) by all public housing 
        agencies and summarizes the extent of compliance by public 
        housing agencies with the requirements under this subsection 
        and subsection (i).
  ``(l) Green Developments Requirement.--
          ``(1) Requirement.--The Secretary may not make a grant under 
        this section to an applicant unless the proposed revitalization 
        plan of the applicant to be carried out with such grant amounts 
        meets the following requirements, as applicable:
                  ``(A) Green communities criteria checklist.--All 
                residential construction under the proposed plan 
                complies with the national Green Communities criteria 
                checklist for residential construction that provides 
                criteria for the design, development, and operation of 
                affordable housing, as such checklist is in effect for 
                purposes of this subsection pursuant to paragraph (3) 
                at the date of the application for the grant, or any 
                substantially equivalent standard as determined by the 
                Secretary, as follows:
                          ``(i) The proposed plan shall comply with all 
                        items of the national Green Communities 
                        criteria checklist for residential construction 
                        that are identified as mandatory.
                          ``(ii) The proposed plan shall comply with 
                        such other nonmandatory items of such national 
                        Green Communities criteria checklist so as to 
                        result in a cumulative number of points 
                        attributable to such nonmandatory items under 
                        such checklist of not less than--
                                  ``(I) 25 points, in the case of any 
                                proposed plan (or portion thereof) 
                                consisting of new construction; and
                                  ``(II) 20 points, in the case of any 
                                proposed plan (or portion thereof) 
                                consisting of rehabilitation.
                  ``(B) LEED ratings system.--All non-residential 
                construction under the proposed plan complies with 
                version 2.2 of the LEED for New Construction rating 
                system, version 2.0 of the LEED for Core and Shell 
                rating system, version 2.0 of the LEED for Commercial 
                Interiors rating system, as such systems are in effect 
                for purposes of this subsection pursuant to paragraph 
                (3) at the time of the application for the grant, at 
                least to the minimum extent necessary to be certified 
                to the Silver Level under such system, or any 
                substantially equivalent standard as determined by the 
                Secretary.
          ``(2) Verification.--
                  ``(A) In general.--The Secretary shall verify, or 
                provide for verification, sufficient to ensure that 
                each proposed revitalization plan carried out with 
                amounts from a grant under this section complies with 
                the requirements under paragraph (1) and that the 
                revitalization plan is carried out in accordance with 
                such requirements and plan.
                  ``(B) Timing.--In providing for such verification, 
                the Secretary shall establish procedures to ensure such 
                compliance with respect to each grantee, and shall 
                report to the Congress with respect to the compliance 
                of each grantee, at each of the following times:
                          ``(i) Not later than 60 days after execution 
                        of the grant agreement under this section for 
                        the grantee.
                          ``(ii) Upon completion of the revitalization 
                        plan of the grantee.
          ``(3) Applicability and updating of standards.--
                  ``(A) Applicability.--Except as provided in 
                subparagraph (B), the national Green Communities 
                criteria checklist and LEED rating systems referred to 
                in subparagraphs (A) and (B) that are in effect for 
                purposes of this subsection are such checklist and 
                systems as in existence upon the date of the enactment 
                of the HOPE VI Improvement and Reauthorization Act of 
                2007.
                  ``(B) Updating.--The Secretary may, by regulation, 
                adopt and apply, for purposes of this section, future 
                amendments and supplements to, and editions of, the 
                national Green Communities criteria checklist, the LEED 
                rating systems, and any standard that the Secretary has 
                determined to be substantially equivalent to such 
                checklist or systems.
  ``(m) Fair Housing; Limitation on Exclusion.--
          ``(1) Fair housing.--Each revitalization plan assisted under 
        this section shall affirmatively further fair housing, as 
        described in subsection (e) of section 808 of the Civil Rights 
        Act of 1968.
          ``(2) Limitation on exclusion.--Except to the extent 
        necessary to comply with the requirements of this section, 
        replacement housing provided pursuant to subsection (j) under a 
        revitalization plan of a public housing agency that is owned or 
        managed, or assisted, by the agency shall be subject to the 
        same policies, practices, standards, and criteria regarding 
        waiting lists, tenant screening (including screening criteria, 
        such as credit checks), and occupancy that apply to other 
        housing owned or managed, or assisted, respectively, by such 
        agency. A household may not be prevented from occupying a 
        replacement dwelling unit provided pursuant to subsection (j), 
        or from being provided a tenant-based voucher under the 
        revitalization plan, except to the extent specifically provided 
        by any other provision of Federal law (including subtitle F of 
        title V of the Quality Housing and Work Responsibility Act of 
        1998 (42 U.S.C. 13661 et seq.; relating to safety and security 
        in public and assisted housing and ineligibility of drug 
        criminals, illegal drug users, alcohol abusers, and dangerous 
        sex offenders), subtitle D of title VI of the Housing and 
        Community Development Act of 1992), (42 U.S.C. 13611 et seq.; 
        relating to preferences for elderly and disabled residents), 
        and section 16(f) of the United States Housing Act of 1937 (42 
        U.S.C. 1437n(f); relating to ineligibility of persons convicted 
        of methamphetamine offenses)).
  ``(n) Enforcement.--
          ``(1) Administrative enforcement.--If the Secretary 
        determines on the record after opportunity for an agency 
        hearing, pursuant to a request made by any member of household 
        described in subsection (i)(1) who is adversely affected or 
        aggrieved by a violation of subsection (g), (h), (i), (j), (k), 
        (m), or (o), that such a violation has occurred, the Secretary 
        shall issue an order requiring the public housing agency 
        committing such violation to cease and desist for such 
        violation and to take any affirmative action necessary to 
        correct or remedy the conditions resulting from such violation.
          ``(2) Availability of other remedies.--The remedy under 
        paragraph (1) shall be in addition to all other rights and 
        remedies provided by law.
  ``(o) Performance Benchmarks.--
          ``(1) In general.--Each public housing agency that receives a 
        grant under this section shall, in consultation with the 
        Secretary and residents of the public housing subject to the 
        revitalization plan for which the grant is made that are 
        displaced as a result of the revitalization plan, establish 
        performance benchmarks for each component of their 
        revitalization plan.
          ``(2) Failure to meet benchmarks.--If a public housing agency 
        fails to meet the performance benchmarks established pursuant 
        to paragraph (1), the Secretary shall impose appropriate 
        sanctions, including--
                  ``(A) appointment of an alternative administrator for 
                the revitalization plan;
                  ``(B) financial penalties;
                  ``(C) withdrawal of funding under subsection (j); or
                  ``(D) such other sanctions as the Secretary may deem 
                necessary.
          ``(3) Extension of benchmarks.--The Secretary shall extend 
        the period for compliance with performance benchmarks under 
        paragraph (1) for a public housing agency, for such period as 
        the Secretary determines to be necessary, if the failure of the 
        agency to meet such benchmarks is attributable to--
                  ``(A) litigation;
                  ``(B) obtaining approvals of the Federal Government 
                or a State or local government;
                  ``(C) complying with environmental assessment and 
                abatement requirements;
                  ``(D) relocating residents;
                  ``(E) resident involvement that leads to significant 
                changes to the revitalization plan; or
                  ``(F) any other reason established by the Secretary 
                by notice published in the Federal Register.
          ``(4) Authority of secretary.--In determining the amount of 
        each grant under this section and the closeout date for the 
        grant, the Secretary shall take into consideration the scope, 
        scale, and size of the revitalization plan assisted under the 
        grant.
  ``(p) Applicability of Other Laws.--
          ``(1) Section 18.--Any severely distressed public housing 
        demolished or disposed of pursuant to a revitalization plan and 
        any public housing developed in lieu of such severely 
        distressed housing shall be subject to the provisions of 
        section 18. To the extent the provisions of section 18 conflict 
        with or are duplicative of the provisions of this section, the 
        provisions of this section solely shall apply.
          ``(2) URA.--The Uniform Relocation and Real Property 
        Acquisition Policies Act of 1974 shall apply to all relocation 
        activities pursuant to a revitalization plan under this 
        section.''.

SEC. 9. PLANNING AND TECHNICAL ASSISTANCE GRANTS.

  Subsection (v) of section 24 (42 U.S.C. 1437v(v)), as so redesignated 
by section 8(1), is amended by striking paragraph (2) and inserting the 
following new paragraph:
          ``(2) Technical assistance grants.--Subject only to 
        approvable requests for grants pursuant to paragraph (1) for 
        any fiscal year, the Secretary shall use not less than two 
        percent for grants in such fiscal year to recipients of grants 
        under this section to assist such recipients in obtaining 
        technical assistance in carrying out revitalization 
        programs.''.

SEC. 10. ANNUAL REPORT; AVAILABILITY OF DOCUMENTS.

  Subsection (u) of section 24, as so redesignated by section 8(1) of 
this Act, is amended--
          (1) by inserting after paragraph (3) the following new 
        paragraph:
          ``(4) the extent to which public housing agencies carrying 
        out revitalization plans with grants under this section have 
        complied with the requirements under subsection (i) (relating 
        to right to expanded housing opportunities for resident 
        households); and''; and
          (2) by adding at the end the following:
``To the extent not inconsistent with any other provisions of law, the 
Secretary shall make publicly available through a World Wide Web site 
of the Department of Housing and Urban Development all documents of, or 
filed with, the Department relating to the program under this section, 
including applications, grant agreements, plans, budgets, reports, and 
amendments to such documents; except that in carrying out this 
sentence, the Secretary shall take such actions as may be necessary to 
protect the privacy of any residents and households displaced from 
public housing as a result of a revitalization plan assisted under this 
section.''.

SEC. 11. DEFINITIONS.

  Subsection (s) of section 24, as so redesignated by section 8(l) of 
this Act, is amended--
          (1) in clauses (i) and (iii) of paragraph (1)(C), by striking 
        ``program'' each place such term appears and inserting 
        ``plan'';
          (2) in paragraph (3)--
                  (A) by striking ``Supportive'' and inserting 
                ``Community and supportive'';
                  (B) by inserting ``community and'' before 
                ``supportive services'';
                  (C) by inserting before the period at the end the 
                following: ``, and such other services that, linked 
                with affordable housing, will improve the health and 
                residential stability of public housing residents''; 
                and
                  (D) by inserting after ``transportation,'' the 
                following: ``employment and vocational counseling, 
                financial counseling, life skills training,'';
          (3) by redesignating paragraph (3) as paragraph (6);
          (4) by inserting after paragraph (2), the following new 
        paragraph:
          ``(5) Significant amendment or change.--The term 
        `significant' means, with respect to an amendment or change to 
        a revitalization plan, that the amendment or change--
                  ``(A) changes the use of 10 percent or more of the 
                funds provided under the grant made under this section 
                for the plan from use for one activity to use for 
                another;
                  ``(B) eliminates an activity that, notwithstanding 
                the change, would otherwise be carried out under the 
                plan; or
                  ``(C) changes the scope, location, or beneficiaries 
                of the project carried out under the plan.'';
          (5) by redesignating paragraph (2) as paragraph (4); and
          (6) by inserting after paragraph (1) the following new 
        paragraphs:
          ``(2) Comprehensive relocation assistance.--The term 
        `comprehensive relocation assistance' means comprehensive 
        assistance necessary to relocate the members of a household, 
        and includes counseling, including counseling regarding housing 
        options and locations and use of tenant-based assistance, case 
        management services, assistance in locating a suitable 
        residence, site tours, and other assistance.
          ``(3) Development.--The term `development' has the same 
        meaning given such term in the first sentence of paragraph (1) 
        of section 3(c) (42 U.S.C. 1437a).''.

SEC. 12. CONFORMING AMENDMENT.

  Paragraph (1) of section 24(f) is amended by striking ``programs'' 
and inserting ``plans''.

SEC. 13. AUTHORIZATION OF APPROPRIATIONS.

  Subsection (v)(1) of section 24, as so redesignated by section 8(1) 
of this Act, is amended by striking all that follows ``section'' and 
inserting ``$800,000,000 for each of fiscal years 2008 through 2015.''.

SEC. 14. EXTENSION OF PROGRAM.

  Subsection (w) of section 24, (as so redesignated by section 8(2) of 
this Act) is amended by striking ``September 30, 2007'' and inserting 
``September 30, 2015''.

SEC. 15. REVIEW.

  The Comptroller General of the United States shall--
          (1) conduct a review of activities, actions, and methods used 
        in revitalization plans assisted under section 24 of the United 
        States Housing Act of 1937 to determine which may be 
        transferable to other federally-assisted housing programs; and
          (2) make recommendations to the Congress regarding the 
        activities, actions, and methods reviewed under paragraph (1) 
        not later than the expiration of the 3-year period beginning on 
        the date of the enactment of this Act.

SEC. 16. REGULATIONS.

  Section 24, as amended by the preceding provisions of this Act, is 
further amended by adding at the end the following new subsection:
  ``(x) Regulations.--Not later than the expiration of the 120-day 
period beginning on the date of the enactment of the HOPE VI 
Improvement and Reauthorization Act of 2007, the Secretary shall issue 
regulations to carry out this section, including the amendments made by 
such Act.''.

                          Purpose and Summary

    The purpose of H.R. 3524, the ``HOPE VI Improvement and 
Revitalization Act of 2007,'' is to re-authorize the HOPE VI 
program, which provides assistance to public housing agencies 
to improve the living environment for public housing residents 
of severely distressed public housing projects. The bill 
includes a number of important reforms to the program 
including: expanding the number of replacement housing units; 
ensuring that residents have access to revitalized sites; 
requiring monitoring and tracking of displaced residents; and 
greater resident involvement in the planning and re-development 
process. The bill also establishes green development standards 
for HOPE VI revitalizations activities.
    The bill is designed to accomplish these goals while 
protecting displaced tenants and ensuring that they are 
provided adequate services to obtain suitable replacement 
housing on a temporary and permanent basis.

                  Background and Need for Legislation

    In the 1970s, construction on new units of public housing 
effectively ended and existing units began to fall into 
disrepair and sink further into economic and social isolation 
from their surrounding communities. The HUD Reform Act of 1989 
authorized the creation of the National Commission on Severely 
Distressed Housing (the Commission) to conduct case studies and 
site examination of public housing developments that were 
believed to be severely distressed. As part of its work, the 
Commission was also charged to recommend strategies to Congress 
to improve the condition of severely distressed public housing 
units. The Commission found that six percent of the nation's 
public housing units, or 86,000 units, were severely 
distressed. In addition, the Commission noted that residents in 
these units were affected by high rates of crime, had high 
levels of unemployment, and lacked programs and services to 
help them attain self-sufficiency. Furthermore, due to the 
deterioration of the units, residents' health and safety were 
at risk.
    Based on the Commission's report, Congress created the HOPE 
VI program in 1992 to revitalize severely distressed public 
housing and transform them into safe, livable communities. 
Initially started as a demonstration program, HUD selected 
grantees for the first 15 cities based on need. This first 
group of grantees was awarded up to $50 million per grant, for 
a total of $300 million. The program operated through 
appropriations acts from Fiscal Year 1994 through Fiscal Year 
1998. Because the program was not initially established in 
authorizing legislation but through appropriation acts, HUD was 
not directed to issue any regulations for the administration of 
the program when it was first created. Instead, HUD 
administered the program, and continues to administer the 
program, through Notices of Funding Availability (NOFAs) that 
are published in the Federal Register each year. The NOFAs 
outlined the requirements for public housing agencies to apply 
for funding.
    The program was finally authorized by Congress in 1999 
through the Quality Housing and Work Responsibility Act of 1998 
(QHWRA) (Public Law 105-276). Under QHWRA, the purposes of the 
program were to improve the living environment of public 
housing residents, to revitalize the sites on which severely 
distressed public housing units were located, to decrease 
concentrations of poverty, and to build sustainable 
communities. QHWRA also defined ``severely distressed public 
housing'' as public housing that requires major design or 
rehabilitation; contributes significantly to the decline of the 
surrounding neighborhood; is occupied primarily by very low-
income families and the unemployed; has high rates of crime and 
vandalism; and cannot be revitalized through other forms of 
assistance.
    QHWRA authorized the program through Fiscal Year 2002. 
Succeeding appropriations acts have extended the authorization. 
The Consolidated Appropriations Act for 2003 reauthorized the 
program through Fiscal Year 2004. Through the American Dream 
Downpayment Act (Public Law 108-186), the program was 
reauthorized through Fiscal Year 2006. The most recent 
reauthorization was in the Fiscal Year 2007 Continuing 
Resolution (H.J. Res. 20), which extended the program through 
September 30, 2007.
    Through the combination of demolition and revitalization 
grants, HOPE VI grantees have demolished 134,572 units of 
severely distressed housing, exceeding HUD's initial goal of 
demolishing 100,000 units by 2003. Despite these successes, the 
program has directly contributed to a loss of hard public 
housing units. Because HUD repealed the one-for-one replacement 
requirement in 1996, some argue that there has been no 
incentive for public housing agencies to replace each unit 
taken down with another hard unit. According to HUD, over 
30,000 public housing units have been lost as a result of 
revitalization grants alone.
    The mixed-income communities that have resulted from the 
use of these grants have had positive results for many of the 
surrounding communities, with reports of increases in per 
capita incomes, decreases in unemployment rates, decreases in 
the number of households receiving public assistance, and 
declines in violent crime. However, some critics of the program 
maintain that the majority of the public housing residents have 
not benefited from the program because they either do not, or 
are not, allowed to return to the new developments.
    From 1993 to 1999, grantees estimated that 61 percent of 
residents would return to the development. By 2003, the 
estimate had fallen to 44 percent. There appear to be a number 
of factors leading to why residents have not returned to the 
original developments: lack of available units (due to no 
requirement for one-for-one replacement); re-screening criteria 
that restrict re-occupancy only to residents who meet 
employment, creditworthiness, and other criteria; and a desire 
on the part of residents to remain in their temporary 
replacement housing.
    HUD does not require public housing agencies to track 
displaced residents. Some public housing agencies are unable to 
provide information about what happens to these families after 
they have been displaced during the revitalization process. In 
Miami, for example, the public housing agency lost track of 612 
out of 1,178 residents it had temporarily relocated with 
housing choice vouchers when it demolished the Scott/Carver 
Homes development in 2001. Low-income housing advocates believe 
that as a result of losing their vouchers, many of these 
families may now be homeless.
    The transition from public housing to private housing (with 
vouchers) is difficult for former public housing residents as 
illustrated by an Urban Institute study.\1\ The study found 
that for more than half of public housing residents renting 
housing with a voucher experienced difficulty in paying their 
rent and utilities.
---------------------------------------------------------------------------
    \1\Susan J. Popkin, The HOPE VI Program--What about the Residents? 
(Washington: Urban Institute Press, Dec. 2002).
---------------------------------------------------------------------------
    Many public housing developments are racially and 
economically isolated from the surrounding community. A review 
of 92 census tracts in which projects that were denied HOPE VI 
grants are located reveals that the majority, or 62 percent, of 
these tracts have predominately minority populations. Within 
these tracts, up to 72 percent of the families live in poverty.

                                Hearings

    The Subcommittee on Housing and Community Opportunity held 
a hearing on June 21, 2007, on the reauthorization of the HOPE 
VI Program. The following witnesses testified:

                               PANEL ONE

           The Honorable Orlando J. Cabrera, Assistant 
        Secretary for Public and Indian Housing, U.S. 
        Department of Housing and Urban Development;

                               PANEL TWO

           Mr. Rudy Montiel, Executive Director, 
        Housing Authority of the City of Los Angeles;
           Mr. Charles Woodyard, Executive Director, 
        Charlotte Housing Authority;
           Mr. Richard Fox, Executive Director, 
        Stamford Housing Authority;
           Mr. Michael Kelly, Executive Director, 
        District of Columbia Housing Authority.

                              PANEL THREE

           Dr. Susan Popkin, Principal Research 
        Associate, The Urban Institute;
           Ms. Yvonne Stratford, former resident Scott/
        Carver Homes, Miami, FL;
           Mr. George Moses, President, Board of 
        Directors, National Low Income Housing Coalition, 
        Housing Alliance of Pennsylvania;
           Ms. Doris Koo, President and Chief Executive 
        Officer, Enterprise Community Partners, Inc.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
September 26, 2007, and ordered H.R. 3524, HOPE VI Improvement 
and Reauthorization Act of 2007, as amended, reported by a 
voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. No 
record votes were taken with in conjunction with the 
consideration of this legislation. A motion by Mr. Frank to 
report the bill, as amended, to the House with a favorable 
recommendation was agreed to by a voice vote.
    During the consideration of the bill, the following 
amendments were considered:
    An amendment by Ms. Waters, No. 1, a manager's amendment 
making various technical and substantive changes, was agreed to 
by a voice vote.
    An amendment by Mr. Gary G. Miller (CA), No. 2, regarding 
inclusion of nonprofit housing developments, was offered and 
withdrawn.
    An amendment by Mr. Cleaver, No. 3, providing tenant-based 
vouchers under a revitalization plan, was agreed to by a voice 
vote.
    An amendment by Mr. Shays, No. 4, changing the definition 
of significant amendment or change, was offered and withdrawn.
    An amendment by Mr. Shays, No. 5, dealing with one-for-one 
replacement, was not agreed to by a voice vote.
    An amendment by Mrs. Capito, No. 6, regarding green 
development compliance, was offered and withdrawn.
    An amendment by Mr. Hensarling, No. 7, authorizing 
appropriations for section 8 rental assistance, was ruled out 
of order for being not germane.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a hearing and made 
findings that are reflected in this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:
    The purpose of H.R. 3524 is to re-authorize the HOPE VI 
program, which provides assistance to public housing agencies 
to improve the living environment for public housing residents 
of severely distressed public housing projects. The bill 
includes a number of important reforms to the program 
including: expanding the number of replacement housing units; 
ensuring that residents have access to revitalized sites; 
requiring monitoring and tracking of displaced residents; and 
greater resident involvement in the planning and re-development 
process. The bill is designed to accomplish these goals while 
protecting displaced tenants and ensuring that they are 
provided adequate services to obtain suitable replacement 
housing on a temporary and permanent basis.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                  Washington, DC, October 11, 2007.
Hon. Barney Frank,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3524, the HOPE VI 
Improvement and Reauthorization Act of 2007.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Chad Chirico.
            Sincerely,
                                         Robert A. Sunshine
                                   (For Peter R. Orszag, Director).
    Enclosure.

H.R. 3524--HOPE VI Improvement and Reauthorization Act of 2007

    H.R. 3524 would authorize the appropriation of $800 million 
for the HOPE VI program for each of fiscal years 2008 through 
2015. The HOPE VI program provides grants to housing 
authorities to revitalize severely distressed public housing 
developments. In 2007, $99 million was appropriated for this 
program. Spending on the HOPE VI program has historically been 
slow due to the time it takes to award grants and complete 
revitalization projects.
    The estimated budgetary impact of H.R. 3524 is shown in the 
following table. For the purposes of this estimate, we assume 
that H.R. 3524 will be enacted near the beginning of fiscal 
year 2008, that the authorized amounts will be appropriated for 
each year, and that outlays will follow historical patterns. 
Assuming appropriation of the authorized amounts, CBO estimates 
that implementing this bill would cost $900 million through 
2012, with additional amounts spent in later years. Enacting 
H.R. 3524 would not affect direct spending or revenues. The 
costs of this legislation fall within budget function 600 
(income security).

------------------------------------------------------------------------
                                      By fiscal year, in millions of
                                                 dollars--
                                 ---------------------------------------
                                   2008    2009    2010    2011    2012
------------------------------------------------------------------------
              CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Authorization Level.............     800     800     800     800     800
Estimated Outlays...............       8      48     144     280     456
------------------------------------------------------------------------

    H.R. 3524 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act; any 
costs to State, local, or tribal governments would be incurred 
voluntarily.
    The CBO staff contact for this estimate is Chad Chirico. 
This estimate was approved by Keith Fontenot, Deputy Assistant 
Director for Health and Human Resources, Budget Analysis 
Division.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional Authority of Congress to enact this legislation 
is provided by Article 1, section 8, clause 1 (relating to the 
general welfare of the United States) and clause 3 (relating to 
the power to regulate interstate commerce).

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    H.R. 3524 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section establishes the short title of the bill, the 
``HOPE VI Improvement and Reauthorization Act of 2007.''

Section 2. Purposes of program

    Expands upon the current purposes of the program by 
clarifying that communities of all sizes can benefit from HOPE 
VI and by adding the promotion of housing choice among low- and 
very-low income families as a purpose of the program.

Section 3. Authority to waive contribution requirement in cases of 
        extreme distress or emergency

    Allows the Secretary to waive the 5 percent matching 
requirement for public housing agencies that experience extreme 
distress or emergencies. Gives the Secretary discretion to 
define the circumstances of an emergency, provided that these 
circumstances include disasters declared by the President or 
emergencies under the Robert T. Stafford Disaster Relief and 
Emergency Assistance Act.

Section 4. Prohibition of demolition only grants

    Prohibits the demolition of public housing units without 
replacement of those units through revitalization.

Section 5. Repeal of Main Street Projects Grant Authority

    Eliminates the Main Street Grant program.

Section 6. Eligible activities

    Expands upon which activities constitute a permissible use 
of grant funds to include costs associated with green 
developments, costs associated with the temporary and permanent 
relocation of residents, costs associated with the monitoring 
and tracking of displaced residents, and costs associated with 
the acquisition and development of public housing dwelling 
units to meet the one-for-one replacement requirement. Permits 
up to 25 percent of grant funds to be used for community and 
supportive services (CSS).

Section 7. Selection of proposals for grants

    Establishes selection criteria for HOPE VI grants. Provides 
minimum standards for grant consideration including physical 
and non-physical indicators of severe distress; opportunities 
for resident involvement and services to facilitate such 
involvement; a plan for the temporary relocation of households 
occupying the public housing project to be revitalized; 
expanded housing opportunities to relocated residents; one-for-
one replacement of all demolished or disposed units; and green 
building standards.
    Requires applications to minimally meet the following 
standards and provides additional consideration to the extent 
that applications comply with the purposes of the HOPE VI 
program; have a demonstrated record and capability of managing 
modernization projects in a timely manner; work with socially 
and economically disadvantaged businesses; contain an effective 
plan for relocation and one-for-one replacement; include an 
achievable and realistic revitalization plan; leverage public 
and private funds; involve state and local governments, private 
service providers, financing entities, and developers in the 
development and ongoing implementation of the revitalization 
plan; cannot be accomplished without a HOPE VI grant; address a 
need for affordable housing in the community; relate to the 
supply of affordable housing in the community; sustain or 
create more project-based housing units eligible for public 
housing eligible families; comply with residential and non-
residential green building standards; provide replacement 
housing for families whose housing needs are difficult to 
fulfill, including eligible ex-offenders who have been crime-
free for one year after completion of probation or parole and 
for whom housing is a critical need; provide replacement 
housing that contains a sufficient number of bedrooms to 
prevent overcrowding; provide on-site public housing units in 
excess of the one-third requirement, including housing for 
elderly and disabled residents who want to return to the public 
housing development; and address other factors as the Secretary 
considers appropriate.
    Allows the Secretary to consider grant applications that 
have not received an allocation of low-income tax credits at 
the time of application. Requires the Secretary to conduct site 
visits for grant finalists for the purpose of determining if 
the proposed public housing project is severely distressed.

Section 8. Requirements for mandatory core components

    Establishes the following requirements for HOPE VI grants:
    Resident Involvement and Services: Requires the active 
involvement and participation of residents in the planning 
process and requires public housing agencies to inform 
residents about all stages of the grant and application process 
through four written notices to residents on the public housing 
agency's intent to submit a HOPE VI application, award of a 
HOPE VI grant, completion of a grant agreement, and 
availability of replacement housing. Requires public housing 
agencies to hold a public hearing not later than 75 days before 
submission of the grant application. Requires public housing 
agencies to offer displaced residents comprehensive relocation 
assistance and community and supportive services until grant 
funding has been expended or two years after the end of the 
development period, whichever is longer.
    Relocation Program: Requires public housing agencies to 
provide for the successful and timely relocation of each 
displaced resident, including payment of actual and reasonable 
relocation expenses; provide information about relocation 
options, including the right to remain in the housing to which 
they relocate; minimize academic disruptions resulting from 
moves on children and coordinate resident relocation with 
school calendars; and provide assistance to residents with 
using a tenant-based voucher--including in communities with a 
lower concentration of poverty--in a manner that will not 
result in a financial burden and will promote long-term housing 
stability. In the event families are unable to lease up their 
voucher within 150 days, requires the public housing agency to 
either extend their search time or provide them with the next 
available unit assisted by the agency.
    Right to Expanded Housing Opportunities: Requires public 
housing agencies to make available to each displaced household 
a newly revitalized public housing unit, either on the original 
site, if available, or in the jurisdiction of the public 
housing agency. HOPE VI housing must be made available to 
displaced households prior to being offered to other eligible 
households.
    One-for-One Replacement--On-Site Housing: Requires public 
housing agencies to replace all units that are demolished or 
disposed of through the HOPE VI grant. Requires at least 33 
percent of units comprising the revitalized development built 
on site to be public housing units. Allows public housing 
agencies to build additional units on site, provided the number 
of units is determined in consultation with residents, 
community leaders, and local government officials, and such 
additional units affirmatively further fair housing. Provides 
exceptions from the on-site building requirement in cases of 
consent decrees or land unsuitability, with the requirement 
that at least one mixed-income housing development be provided 
in the jurisdiction of the public housing agency and that one-
third of the units in that development be public housing 
dwelling units. All on-site housing must be provided in a 
manner that results in decreased concentrations of poverty.
    One-for-One Replacement--Off-Site Housing: Requires 
remaining units be built throughout the jurisdiction of the 
public housing agency in areas with low concentrations of 
poverty and in a manner that affirmatively furthers fair 
housing. Provides that replacement housing can be provided 
through acquisition, development, and contracting of additional 
units as long as the units are comparable to public housing 
units in terms of eligibility for occupancy, tenant 
contribution toward rent, and long-term affordability. Exempts 
public housing agencies from project-based voucher statutory 
requirements on income-mixing and percentage limitation.
    Rebuilding: Requires units be replaced within 12 months and 
for those developments that use low-income housing tax credits, 
within 12 months following allocation of tax credits. Provides 
that to the greatest extent practicable, the HOPE VI 
development be built in phases and that assisted dwelling units 
should be provided for occupancy before unassisted dwelling 
units.
    Monitoring of Displaced Households: Requires public housing 
agencies to maintain a current address and contact information 
for each household affected by the revitalization plan and 
requires agencies to certify prior to close-out that they have 
complied with providing housing for families who requested it. 
Requires the Secretary to report to Congress biannually on 
grantee compliance with this section.
    Green Developments: Requires all residential construction 
to be built in compliance with the national Green Communities 
criteria checklist or a substantially equivalent standard as 
determined by the Secretary. Requires all non-residential 
construction to be certified to the Silver Level under the LEED 
ratings system, or any substantially equivalent standard as 
determined by the Secretary.
    Limitation on Exclusion: Prohibits public housing agencies 
from holding displaced residents or new residents to the HOPE 
VI development to a different eligibility standard than other 
households. Prohibits the use of any criteria, including credit 
checks, to limit the ability of public housing residents to re-
occupy HOPE VI units, or to receive housing choice vouchers, 
except to the extent that residents are otherwise ineligible 
under Federal law.
    Enforcement: Allows HUD to administratively enforce any 
violations of the following provisions of the Act: resident 
involvement and services, temporary relocation plan, right to 
expanded housing opportunities, one-for-one replacement, 
monitoring of displaced households, fair housing and limitation 
on exclusion, and performance benchmarks. Provides that such 
administrative enforcement shall be in addition to any other 
rights and remedies provided under law.
    Performance Benchmarks: Allows HUD to create performance 
benchmarks and to impose sanctions on public housing agencies 
that fail to meet such benchmarks. Sanctions include 
appointment of an alternative administrator; financial 
penalties; withdrawal of funding; or other sanctions as the 
Secretary may deem necessary. Allows for the extension of 
benchmarks in cases of litigation; delays from Federal, State, 
or local government; compliance with environmental assessment 
and abatements; relocation of residents; resident involvement 
that leads to significant changes to the revitalization plan; 
or other reasons established by the Secretary.
    Applicability of Other Laws: Clarifies that the Uniform 
Relocation and Real Property Acquisition Policies Act of 1970 
applies to the HOPE VI program.

Section 9. Planning and technical assistance grants

    Requires the Secretary to use not less than two percent of 
funds to assist grant recipients in obtaining planning and 
technical assistance to carry out their revitalization 
programs.

Section 10. Annual report and availability of documents

    Requires the Secretary to report to Congress on the 
progress of HOPE VI grants and to make all documents relating 
to such grants publicly available.

Section 11. Definitions

    Expands the definition of ``community and supportive 
services,'' to include employment and vocational counseling, 
financial counseling, life skills training, and services linked 
with housing that will improve the health and residential 
stability of public housing residents. Defines ``significant 
amendment or change,'' as an activity that changes the use of 
10 percent or more of the funds, eliminates an activity that 
otherwise would have been carried out, or changes the scope, 
location, or beneficiaries of the revitalization plan. Defines 
``comprehensive relocation assistance'' as comprehensive 
assistance necessary to relocate members of a household, 
includes counseling on housing options, use of a voucher, case 
management, housing location, site tours, and other assistance. 
Retains the current definition of ``development.''

Section 12. Conforming amendment

    Clarifies that the bill addresses revitalization plans.

Section 13. Authorization of appropriations

    Authorizes $800 million per year for fiscal years 2008 
through 2015.

Section 14. Extension of program

    Authorizes the program through September 30, 2015.

Section 15. Review

    Requires the Government Accountability Office to study HOPE 
VI programs to determine which methods employed by HOPE VI 
grantees may be transferable to other federally assisted 
housing programs and to make recommendations to Congress not 
later than three years after enactment of the Act.

Section 16. Regulations

    Requires HUD to issue implementing regulations within 120 
days of enactment.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) 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 italic, existing law in which no change is 
proposed is shown in roman):

                   UNITED STATES HOUSING ACT OF 1937


TITLE I--GENERAL PROGRAM OF ASSISTED HOUSING

           *       *       *       *       *       *       *


SEC. 24. DEMOLITION, SITE REVITALIZATION, REPLACEMENT HOUSING, AND 
                    TENANT-BASED ASSISTANCE GRANTS FOR PROJECTS.

  (a) Purposes.--The purpose of this section is to provide 
assistance to public housing agencies for the purposes of--
          (1) improving the living environment for public 
        housing residents of severely distressed public housing 
        projects located in communities of all sizes, including 
        small- and medium-sized communities, through the 
        demolition, rehabilitation, reconfiguration, or 
        replacement of obsolete public housing projects (or 
        portions thereof);

           *       *       *       *       *       *       *

          (3) providing housing that will avoid or decrease the 
        concentration of  low- and very low-income families; 
        [and]
          (4) building sustainable communities[.]; and
          (5) promoting housing choice among low- and very low-
        income families.
[It is also the purpose of this section to provide assistance 
to smaller communities for the purpose of facilitating the 
development of affordable housing for low-income families that 
is undertaken in connection with a main street revitalization 
or redevelopment project in such communities.]

           *       *       *       *       *       *       *

  (c) Contribution Requirement.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Exemption.--If assistance provided under this 
        title will be used only for providing tenant-based 
        assistance under section 8 [or demolition of public 
        housing (without replacement)], the Secretary may 
        exempt the applicant from the requirements under 
        paragraph (1)(A).
          (4) Waiver.--
                  (A) Authority.--The Secretary may waive the 
                applicability of paragraph (1) with respect to 
                an applicant or grantee if the Secretary 
                determines that circumstances of extreme 
                distress or emergency, in the area that the 
                revitalization plan of the applicant is to be 
                carried out, directly affect the ability of the 
                applicant or grantee to comply with such 
                requirement.
                  (B) Regulations.--The Secretary shall issue 
                regulations to carry out this paragraph, which 
                shall--
                          (i) set forth such circumstances of 
                        extreme distress and emergency; and
                          (ii) provide that such circumstances 
                        shall include any instance in which the 
                        area in which a revitalization plan 
                        assisted with amounts from a grant 
                        under this section is to be carried out 
                        is subject to a declaration by the 
                        President of a major disaster or 
                        emergency under the Robert T. Stafford 
                        Disaster Relief and Emergency 
                        Assistance Act.
  (d) Eligible Activities.--
          (1) In general.--Grants under this section may be 
        used for activities to carry out revitalization 
        [programs] plans for severely distressed public 
        housing, including--
                  (A)  * * *

           *       *       *       *       *       *       *

                  (G) economic development activities that 
                promote the economic self-sufficiency of 
                residents under the revitalization [program] 
                plan, including a Neighborhood Networks 
                initiative for the establishment and operation 
                of computer centers in public housing for the 
                purpose of enhancing the self-sufficiency, 
                employability, an economic self-reliance of 
                public housing residents by providing them with 
                onsite computer access and training resources;

           *       *       *       *       *       *       *

                  [(J) replacement housing (including 
                appropriate homeownership downpayment 
                assistance for displaced residents or other 
                appropriate replacement homeownership 
                activities) and rental assistance under section 
                8;]
                  (J) the acquisition and development of 
                replacement housing units in accordance with 
                subsection (j);
                  (K) transitional security activities; [and]
                  (L) necessary supportive services, except 
                that not more than [15 percent] 25 percent of 
                the amount of any grant may be used for 
                activities under this paragraph[.];
                  (M) necessary costs of ensuring the effective 
                relocation of residents displaced as a result 
                of the revitalization of the project, including 
                costs of monitoring as required under 
                subsection (k); and
                  (N) activities undertaken to comply with the 
                provisions of (B)(vii) and (C)(xiii) of 
                subsection (e)(2) and subsection (l) (relating 
                to green developments).

           *       *       *       *       *       *       *

  (e) Application and Selection.--
          (1) * * *
          [(2) Selection criteria.--The Secretary shall 
        establish criteria for the award of grants under this 
        section and shall include among the factors--
                  [(A) the relationship of the grant to the 
                public housing agency plan for the applicant 
                and how the grant will result in a revitalized 
                site that will enhance the neighborhood in 
                which the project is located and enhance 
                economic opportunities for residents;
                  [(B) the capability and record of the 
                applicant public housing agency, or any 
                alternative management entity for the agency, 
                for managing redevelopment or modernization 
                projects, meeting construction timetables, and 
                obligating amounts in a timely manner;
                  [(C) the extent to which the applicant 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 and ongoing implementation 
                of a revitalization program for the project, 
                except that the Secretary may not award a grant 
                under this section unless the applicant has 
                involved affected public housing residents at 
                the beginning and during the planning process 
                for the revitalization program, prior to 
                submission of an application;
                  [(E) the need for affordable housing in the 
                community;
                  [(F) the supply of other housing available 
                and affordable to families receiving tenant-
                based assistance under section 8;
                  [(G) the amount of funds and other resources 
                to be leveraged by the grant;
                  [(H) the extent of the need for, and the 
                potential impact of, the revitalization 
                program;
                  [(I) the extent to which the plan minimizes 
                permanent displacement of current residents of 
                the public housing site who wish to remain in 
                or return to the revitalized community and 
                provides for community and supportive services 
                to residents prior to any relocation;
                  [(J) the extent to which the plan sustains or 
                creates more project-based housing units 
                available to persons eligible for public 
                housing in markets where the plan shows there 
                is demand for the maintenance or creation of 
                such units;
                  [(K) the extent to which the plan gives to 
                existing residents priority for occupancy in 
                dwelling units which are public housing 
                dwelling units, or for residents who can afford 
                to live in other units, priority for those 
                units in the revitalized community; and
                  [(L) such other factors as the Secretary 
                considers appropriate.]
          (2) Grant award criteria.--
                  (A) Establishment.--The Secretary shall 
                establish criteria for the award of grants 
                under this section.
                  (B) Mandatory core components.--The criteria 
                under this paragraph shall require that a 
                proposed revitalization plan may not be 
                selected for award of a grant under this 
                section unless the proposed plan meets all of 
                the following requirements:
                          (i) Evidence of severe distress.--The 
                        proposed plan shall contain evidence 
                        sufficient to demonstrate that the 
                        public housing project that is subject 
                        to the plan is severely distressed, 
                        which shall include--
                                  (I) a certification signed by 
                                an engineer or architect 
                                licensed by a State licensing 
                                board that the project meets 
                                the criteria for physical 
                                distress under subsection 
                                (t)(2); and
                                  (II) such other evidence that 
                                the project meets criteria for 
                                nonphysical distress under 
                                subsection (t)(2), such as 
                                census data, crime statistics, 
                                and past surveys of 
                                neighborhood stability 
                                conducted by the public housing 
                                agency.
                          (ii) Resident involvement and 
                        services.--The proposed plan shall 
                        provide for opportunities for 
                        involvement of residents of the housing 
                        subject to the plan and the provision 
                        of services for such residents, in 
                        accordance with subsection (g).
                          (iii) Relocation plan.--The proposed 
                        plan shall provide a plan for 
                        relocation of households occupying the 
                        public housing project that is subject 
                        to the plan, in accordance with 
                        subsection (h), including a statement 
                        of the estimated number of vouchers for 
                        rental assistance under section 8 that 
                        will be needed for such relocation.
                          (iv) Resident right to expanded 
                        housing opportunities.--The proposed 
                        plan provides right of resident 
                        households to occupy housing provided 
                        under such revitalization plan in 
                        accordance with subsection (i).
                          (v) One-for-one replacement.--The 
                        proposed plan shall provide a plan 
                        that--
                                  (I) provides for replacement 
                                in accordance with subsection 
                                (j) of 100 percent of all 
                                dwelling units demolished or 
                                disposed of under such 
                                revitalization plan, as of the 
                                date of the application for the 
                                grant, on the site of the 
                                original public housing or 
                                within the jurisdiction of the 
                                public housing agency;
                                  (II) identifies the type of 
                                replacement housing that will 
                                be offered to tenants displaced 
                                by the revitalization plan;
                                  (III) contains such 
                                agreements with or assurances 
                                by the Secretary, State and 
                                local governmental agencies, 
                                and other entities sufficient 
                                to ensure compliance with 
                                subsection (j) and the 
                                requirements of section 18 
                                applicable pursuant to 
                                subsection (p)(1); and
                                  (IV) contains such assurances 
                                or agreements as the Secretary 
                                considers necessary to ensure 
                                compliance with subsection 
                                (i)(2).
                          (vi) Fair housing; limitation on 
                        exclusion.--The proposed plan shall be 
                        carried out in a manner that complies 
                        with section (m) (relating to 
                        affirmatively furthering fair housing 
                        and limitation on exclusion).
                          (vii) Green developments.--The 
                        proposed plan complies with the 
                        requirement under subsection (l) 
                        (relating to green developments).
                  (C) Mandatory graded components.--The 
                criteria under this paragraph shall provide 
                that, in addition to the requirements under 
                subparagraph (B), the proposed revitalization 
                plan shall address and meet minimum 
                requirements with respect to, and shall provide 
                additional priority based on the extent to 
                which the plan satisfactorily addresses, each 
                of the following issues:
                          (i) Compliance with purposes.--The 
                        extent to which the proposed plan of an 
                        applicant achieves the purposes of this 
                        section set forth in subsection (a).
                          (ii) Capability and record.--The 
                        extent of the capability and record of 
                        the applicant public housing agency, 
                        public partners, proposed private 
                        development partners, or any 
                        alternative management entity for the 
                        agency, for managing redevelopment or 
                        modernization projects, meeting 
                        performance benchmarks, and obligating 
                        amounts in a timely manner, including 
                        any past performance of such entities 
                        under the HOPE VI program and any 
                        record of such entities of working with 
                        socially and economically disadvantaged 
                        businesses, as such term is defined in 
                        section 8(a)(4) of the Small Business 
                        Act (15 U.S.C. 637(a)(4)).
                          (iii) Diversity outreach.--The extent 
                        to which the proposed revitalization 
                        plan includes partnerships with 
                        socially and economically disadvantaged 
                        businesses, as such term is defined by 
                        section 8(a)(4) of the Small Business 
                        Act.
                          (iv) Effectiveness of relocation and 
                        one-for-one replacement plans.--The 
                        extent of the likely effectiveness of 
                        the proposed revitalization plan for 
                        temporary and permanent relocation of 
                        existing residents, including the 
                        likely effectiveness of the relocation 
                        plan under subparagraph (B)(iii) and 
                        the one-for-one replacement plan under 
                        subparagraph (B)(v).
                          (v) Achievability of revitalization 
                        plan.--The achievability of the 
                        proposed revitalization plan pursuant 
                        to subsection (o), with respect to the 
                        scope and scale of the project.
                          (vi) Leveraging.--The extent to which 
                        the proposed revitalization plan will 
                        leverage other public or private funds 
                        or assets for the project.
                          (vii) Need for additional funding.--
                        The extent to which the applicant could 
                        undertake the activities proposed in 
                        the revitalization plan without a grant 
                        under this section.
                          (viii) Public and private 
                        involvement.--The extent of involvement 
                        of State and local governments, private 
                        service providers, financing entities, 
                        and developers, in the development and 
                        ongoing implementation of the 
                        revitalization plan.
                          (ix) Need for affordable housing.--
                        The extent of need for affordable 
                        housing in the community in which the 
                        proposed revitalization plan is to be 
                        carried out.
                          (x) Affordable housing supply.--The 
                        extent of the supply of other housing 
                        available and affordable to families 
                        receiving tenant-based assistance under 
                        section 8.
                          (xi) Project-based housing.--The 
                        extent to which the proposed 
                        revitalization plan sustains or creates 
                        more project-based housing units 
                        available to persons eligible for 
                        residency in public housing in markets 
                        where the proposed plan shows there is 
                        demand for the maintenance or creation 
                        of such units.
                          (xii) Green developments 
                        compliance.--The extent to which the 
                        proposed revitalization plan--
                                  (I) in the case of 
                                residential construction, 
                                complies with the nonmandatory 
                                items of the national Green 
                                Communities criteria checklist 
                                identified in subsection 
                                (l)(1)(A), or any substantially 
                                equivalent standard as 
                                determined by the Secretary, 
                                but only to the extent such 
                                compliance exceeds the 
                                compliance necessary to 
                                accumulate the number of points 
                                required under such subsection; 
                                and
                                  (II) in the case of non-
                                residential construction, 
                                includes non-mandatory 
                                components of version 2.2 of 
                                the Leadership in Energy and 
                                Environmental Design (LEED) 
                                green building rating system 
                                for New Construction and Major 
                                Renovations, version 2.0 of the 
                                LEED for Core and Shell rating 
                                system, or version 2.0 of the 
                                LEED for Commercial Interiors 
                                rating system, as applicable, 
                                or any substantially equivalent 
                                standard as determined by the 
                                Secretary, but only to the 
                                extent such inclusion exceeds 
                                the inclusion necessary to 
                                accumulate the number of points 
                                required under such system.
                          (xiii) Hard-to-house families.--The 
                        extent to which the one-for-one 
                        replacement plan under subparagraph 
                        (B)(v) for the revitalization plan 
                        provides replacement housing that is 
                        likely to be most appropriate and 
                        beneficial for families whose housing 
                        needs are difficult to fulfill, 
                        including individuals who are not 
                        ineligible for occupancy in public 
                        housing pursuant to subsection (m)(2), 
                        have been released from a State or 
                        Federal correctional facility, have not 
                        been arrested for or charged with any 
                        crime during the period beginning upon 
                        probation or parole and ending one year 
                        after completion of probation or 
                        parole, and for whom affordable housing 
                        is a critical need.
                          (xiv) Family-friendly housing.--The 
                        extent to which replacement housing 
                        units provided through the 
                        revitalization plan contain a 
                        sufficient number of bedrooms to 
                        prevent overcrowding.
                          (xv) Additional on-site mixed-income 
                        housing.--The extent to which the one-
                        for-one replacement plan under 
                        subparagraph (B)(v) provides public 
                        housing units in addition to the number 
                        necessary to minimally comply with the 
                        requirement under subsection 
                        (j)(2)(A)(i), including the extent to 
                        which such plan provides sufficient 
                        housing for elderly and disabled 
                        residents who indicate a preference to 
                        return to housing provided on the site 
                        of the original public housing involved 
                        in the revitalization plan and complies 
                        with the requirements of subsection 
                        (j)(2)(A)(ii).
                          (xvi) Other.--Such other factors as 
                        the Secretary considers appropriate.
          (3) Applicability of selection criteria.--The 
        Secretary may determine not to apply certain of the 
        selection criteria established pursuant to paragraph 
        (2) when awarding grants for [demolition only,] tenant-
        based assistance only[,] or other specific categories 
        of revitalization activities. This section may not be 
        construed to require any application for a grant under 
        this section to include demolition of public housing or 
        to preclude use of grant amounts for rehabilitation or 
        rebuilding of any housing on an existing site.
          (4) Prohibition of demolition-only grants.--The 
        Secretary may not make a grant under this section for a 
        revitalization plan that proposes to demolish public 
        housing without revitalization of any existing public 
        housing dwelling units.
          (5) Treatment of low-income housing tax credit 
        allocation.--In the case of any application for a grant 
        under this section that relies on the allocation of any 
        low-income housing tax credit provided pursuant to 
        section 42 of the Internal Revenue Code of 1986 as part 
        of the revitalization plan proposed in the application, 
        the Secretary shall not require that the first phase of 
        any project to be developed under the plan possess an 
        allocation of such low-income housing tax credits at 
        the time of such application.
          (6) Mandatory site visits.--Notwithstanding any other 
        provision of law, the Secretary shall provide for 
        appropriate officers or employees of the Department of 
        Housing and Urban Development to conduct a visit to the 
        site of the public housing involved in the 
        revitalization plan proposed under each application for 
        a grant under this section that is involved in a final 
        selection of applications to be funded under this 
        section. Site visits pursuant to this paragraph shall 
        be used only for the purpose of obtaining information 
        to assist in determining whether the public housing 
        projects involved in the application are severely 
        distressed public housing.
  (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] plans; and

           *       *       *       *       *       *       *

  [(g) Disposition and Replacement.--Any severely distressed 
public housing disposed of pursuant to a revitalization plan 
and any public housing developed in lieu of such severely 
distressed housing, shall be subject to the provisions of 
section 18. Severely distressed public housing demolished 
pursuant to a revitalization plan shall not be subject to the 
provisions of section 18.]
  (g) Resident Involvement and Services.--
          (1) In general.--Each revitalization plan assisted 
        under this section shall provide opportunities for the 
        active involvement and participation of, and 
        consultation with, residents of the public housing that 
        is subject to the revitalization plan during the 
        planning process for the revitalization plan, including 
        prior to submission of the application, and during all 
        phases of the planning and implementation. Such 
        opportunities for participation may include 
        participation of members of any resident council, but 
        may not be limited to such members, and shall include 
        all segments of the population of residents of the 
        public housing that is subject to the revitalization 
        plan, including single parent-headed households, the 
        elderly, young employed and unemployed adults, teenage 
        youth, and disabled persons. Such opportunities shall 
        include a process that provides opportunity for comment 
        on specific proposals for redevelopment, any demolition 
        and disposition involved, and any proposed significant 
        amendments or changes to the revitalization plan.
          (2) Notices.--In carrying out a revitalization plan 
        assisted under this section, a public housing agency 
        shall provide the following written notices, in plain 
        and nontechnical language, to each household occupying 
        a dwelling unit in the public housing that is subject 
        to, or to be subject to, the plan:
                  (A) Notice of intent.--Not later than the 
                expiration of the 30-day period beginning upon 
                publication by the Secretary of a notice of 
                funding availability for a grant under this 
                section for such plan, notice of--
                          (i) the public housing agency's 
                        intent to submit such application;
                          (ii) the proposed implementation and 
                        management of the revitalized site;
                          (iii) residents' rights under this 
                        section to participate in the planning 
                        process for the plan, including 
                        opportunities for participation in 
                        accordance with paragraph (1), and to 
                        receive comprehensive relocation 
                        assistance and community and supportive 
                        services pursuant to paragraph (4); and
                          (iv) the public hearing pursuant to 
                        paragraph (3).
                  (B) Notice of grant award and relocation 
                options.--Not later than 30 days after notice 
                to the public housing agency of the award of a 
                grant under this section, notice that--
                          (i) such grant has been awarded;
                          (ii) describes the process involved 
                        under the revitalization plan to 
                        temporarily relocate residents of the 
                        public housing that is subject to the 
                        plan;
                          (iii) provides the information 
                        required pursuant to subsection (h)(2) 
                        (relating to relocation options); and
                          (iv) informs residents of 
                        opportunities for participation in 
                        accordance with paragraph (1).
                  (C) Notice of grant agreement and relocation 
                options.--Not later than 30 days after 
                execution of a grant agreement under this 
                section with a public housing agency, notice 
                that--
                          (i) specifically identifies the 
                        housing available for relocation of 
                        resident of the public housing subject 
                        to the revitalization plan;
                          (ii) sets forth the schedule for 
                        relocation of residents of the public 
                        housing subject to the revitalization 
                        plan, including the dates on which such 
                        housing will be available for such 
                        relocation; and
                          (iii) informs residents of 
                        opportunities for participation in 
                        accordance with paragraph (1).
                  (D) Notice of replacement housing.--Upon the 
                availability of replacement housing provided 
                pursuant to subsection (j), notice to each 
                household described in subsection (i)(1) of--
                          (i) such availability;
                          (ii) the process and procedure for 
                        exercising the right to expanded 
                        housing opportunities and preferences 
                        under subsection (i)(2); and
                          (iii) opportunities for participation 
                        in accordance with paragraph (1) of 
                        this subsection.
                  (E) Other.--Such other notices as the 
                Secretary may require.
          (3) Public hearing.--The Secretary may not make a 
        grant under this section to an applicant unless the 
        applicant has convened and conducted a public hearing 
        regarding the revitalization plan, including the one-
        for-one replacement to occur under the plan, not later 
        than 75 days before submission of the application for 
        the grant under this section for such plan, at a time 
        and location that is convenient for residents of the 
        public housing subject to the plan.
          (4) Services.--Each recipient of a grant under this 
        section shall--
                  (A) provide each household who is residing at 
                the site of the revitalization as of the date 
                of the notice of intent under subparagraph (A) 
                with comprehensive relocation assistance for a 
                period that is the latter of the two periods 
                referred to in subparagraph (B) with 
                comprehensive relocation assistance; and
                  (B) offer, to each such displaced resident 
                and each low-income family provided housing 
                under the revitalization plan, community and 
                supportive services until the latter of--
                          (i) the expiration of the two-year 
                        period that begins upon the end of the 
                        development period under the plan; and
                          (ii) the date on which all funding 
                        under the grant for community and 
                        supportive services has been expended.
  (h) Relocation Program.--Each recipient of a grant under this 
section shall--
          (1) provide for each household displaced by the 
        revitalization plan for which the grant is made to be 
        relocated to a comparable replacement dwelling, as 
        defined in section 101 of the Uniform Relocation 
        Assistance and Real Property Acquisition Policies Act 
        of 1970 (42 U.S.C. 4601), and for payment of actual and 
        reasonable relocation expenses of each such household 
        and any replacement housing payments as are required by 
        the Uniform Relocation Assistance and Real Property 
        Acquisition Policies Act of 1970;
          (2) fully inform such households of all relocation 
        options, which may include relocating to housing in a 
        neighborhood with a lower concentration of poverty than 
        their current residence or remaining in the housing to 
        which they relocate;
          (3) to the maximum extent possible, minimize academic 
        disruptions on affected children enrolled in school by 
        coordinating relocation with school calendars;
          (4) establish strategies and plans that assist such 
        displaced residents in utilizing tenant-based vouchers 
        to select housing opportunities, including in 
        communities with a lower concentration of poverty, 
        that--
                  (A) will not result in a financial burden to 
                the family; and
                  (B) will promote long-term housing stability;
          (5) establish and comply with relocation benchmarks 
        that ensure successful relocation in terms of 
        timeliness; and
          (6) notwithstanding any other provision of law, in 
        the case of any tenant-based assistance made available 
        for relocation of a household under this subsection, 
        provide that the term during which the household may 
        lease a dwelling unit using such assistance shall not 
        be shorter than 150 days; if the household is unable to 
        lease a dwelling unit during such period, the public 
        housing agency shall either extend the period during 
        which the household may lease a dwelling unit using 
        such assistance or provide the tenant with the next 
        available dwelling unit owned by the public housing 
        agency.
  (i) Right to Expanded Housing Opportunities for Resident 
Households.--
          (1) In general.--Subject only to paragraph (3), each 
        revitalization plan assisted with a grant under this 
        section shall make available, to each household 
        occupying a dwelling unit in the public housing subject 
        to a revitalization plan that is displaced as a result 
        of the revitalization plan (including any demolition or 
        disposition of the unit), occupancy for such household 
        in a replacement dwelling unit provided pursuant to 
        subsection (j). To exercise such right under this 
        paragraph to occupancy in such a replacement dwelling 
        unit, the household shall respond in writing to the 
        notice provided pursuant to subsection (g)(2)(C) by the 
        public housing agency.
          (2) Preferences.--Such a replacement dwelling unit 
        shall be made available to each household displaced as 
        a result of the revitalization plan before any 
        replacement dwelling unit is made available to any 
        other eligible household.
          (3) Reports to secretary.--The Secretary shall 
        require each public housing agency carrying out a 
        revitalization plan assisted under this section to 
        submit to the Secretary such reports as may be 
        necessary to allow the Secretary to determine the 
        extent to which the public housing agency has complied 
        with this subsection and to which displaced residents 
        occupy replacement housing provided pursuant to 
        subsection (j), which shall include information 
        describing the location of replacement housing provided 
        pursuant to subsection (j) and statistical information 
        on the characteristics of all households occupying such 
        replacement housing.
  (j) One-for-One Replacement.--Each revitalization plan 
assisted with a grant under this section under which any public 
housing dwelling unit is demolished or disposed of shall 
provide as follows:
          (1) Number.--For one hundred percent of all such 
        dwelling units in existence as of the date of the 
        application for the grant that are demolished or 
        disposed under the revitalization plan, the public 
        housing agency carrying out the plan shall provide an 
        additional dwelling unit.
          (2) Location.--Such dwelling units shall be provided 
        in the following manner:
                  (A) On-site mixed-income housing.--
                          (i) One-third requirement.--A mixed-
                        income housing development shall be 
                        provided on the site of the original 
                        public housing involved in the 
                        revitalization plan in which, except as 
                        provided in clause (iii), at least one-
                        third of all dwelling units shall be 
                        public housing dwelling units and shall 
                        be provided through the development of 
                        additional public housing dwelling 
                        units.
                          (ii) Requirements for additional on-
                        site units.--If the mixed-income 
                        housing development provided pursuant 
                        to clause (i) includes more public 
                        housing dwelling units at the site of 
                        the original public housing than is 
                        minimally necessary to comply with such 
                        clause, the public housing agency shall 
                        consult with residents, community 
                        leaders, and local government officials 
                        regarding such additional public 
                        housing dwelling units and shall ensure 
                        that such units are provided in a 
                        manner that affirmatively furthers fair 
                        housing.
                          (iii) Exception.--If, upon a showing 
                        by a public housing agency, the 
                        Secretary determines that it is 
                        infeasible to locate replacement 
                        dwelling units on the site of the 
                        original public housing involved in the 
                        revitalization plan in accordance with 
                        clause (i), all replacement units shall 
                        be located in areas within the 
                        jurisdiction of the public housing 
                        agency having low concentrations of 
                        poverty, except that at least one 
                        mixed-income housing development shall 
                        be provided in such an area within the 
                        jurisdiction of the public housing 
                        agency and that one-third of all units 
                        in such development shall be public 
                        housing dwelling units. The Secretary 
                        may make a finding of infeasibility 
                        under this clause only if--
                                  (I) such location on-site 
                                would result in the violation 
                                of a consent decree; or
                                  (II) the land on which the 
                                public housing is located is 
                                environmentally unsafe, 
                                geologically unstable, or 
                                otherwise unsuitable for the 
                                construction of housing, as 
                                evidenced by an independent 
                                environmental review or 
                                assessment.
                          (iv) Deconcentration of poverty.--All 
                        dwelling units provided pursuant to 
                        this subparagraph shall be provided in 
                        a manner that results in decreased 
                        concentrations of poverty, with respect 
                        to such concentrations existing on the 
                        date of the application for the grant 
                        under this section.
                  (B) Off-site mixed-income housing.--Any other 
                replacement housing units provided in addition 
                to the dwelling units provided pursuant to 
                subparagraph (A) shall be provided, in areas 
                within the jurisdiction of the public housing 
                agency having low concentrations of poverty, 
                through--
                          (i) the acquisition or development of 
                        additional public housing dwelling 
                        units; or
                          (ii) the acquisition, development, or 
                        contracting (including through project-
                        based assistance) of additional 
                        dwelling units that are subject to 
                        requirements regarding eligibility for 
                        occupancy, tenant contribution toward 
                        rent, and long-term affordability 
                        restrictions which are comparable to 
                        public housing units, except that 
                        subparagraphs (B) and (D) of section 
                        8(o)(13) of the United States Housing 
                        Act of 1937 (42 U.S.C. 1437f(o)(13); 
                        relating to percentage limitation and 
                        income-mixing requirement for project-
                        based assistance) shall not apply with 
                        respect to vouchers used to comply with 
                        the requirements of this clause.
          (3) Timing.--All replacement dwelling units provided 
        pursuant to this subsection shall be provided not later 
        than the expiration of the 12-month period beginning 
        upon the demolition or disposition of the public 
        housing dwelling units, except that replacement 
        dwelling units financed with a low-income housing tax 
        credit under section 42 of the Internal Revenue Code of 
        1986 in connection with the revitalization plan shall 
        be provided not later than the expiration of the 12-
        month period beginning upon the allocation of such low-
        income housing tax credit. To the greatest extent 
        practicable, such replacement or additional dwelling 
        units, or redevelopment, shall be accomplished in 
        phases over time and, in each such phase, the public 
        housing dwelling units and the dwelling units described 
        in subparagraph (B)(ii) of paragraph (2) shall be made 
        available for occupancy before any nonassisted dwelling 
        unit is made available for occupancy.
          (4) Fair housing.--The demolition or disposition, 
        relocation, and provision of replacement housing units 
        under paragraph (2)(B) shall be carried out in a manner 
        that affirmatively furthers fair housing, as described 
        in subsection (e) of section 808 of the Civil Rights 
        Act of 1968 (42 U.S.C. 3608(e)).
  (k) Monitoring of Displaced Households.--
          (1) PHA responsibilities.--To facilitate compliance 
        with the requirement under subsection (i) (relating to 
        right to expanded housing opportunities), the Secretary 
        shall, by regulation, require each public housing 
        agency that receives a grant under this section, during 
        the period of the revitalization plan assisted with the 
        grant and until all funding under the grant has been 
        expended--
                  (A) to maintain a current address of 
                residence and contact information for each 
                household affected by the revitalization plan 
                who was occupying a dwelling unit in the 
                housing that is subject to the plan; and
                  (B) to provide such updated information to 
                the Secretary on at least a quarterly basis.
          (2) Certification.--The Secretary may not close out 
        any grant made under this section to a public housing 
        agency before the agency has certified to the Secretary 
        that the agency has complied with subsection (i) 
        (relating to a right to expanded housing opportunities 
        for resident households) with respect to each resident 
        displaced as a result of the revitalization plan, 
        including providing occupancy in a replacement dwelling 
        unit for each household who requested such a unit in 
        accordance with such subsection.
          (3) Reports by secretary.--Not less frequently than 
        once every six months, the Secretary shall submit a 
        report to the Congress that includes all information 
        submitted to the Secretary pursuant to paragraph (1) by 
        all public housing agencies and summarizes the extent 
        of compliance by public housing agencies with the 
        requirements under this subsection and subsection (i).
  (l) Green Developments Requirement.--
          (1) Requirement.--The Secretary may not make a grant 
        under this section to an applicant unless the proposed 
        revitalization plan of the applicant to be carried out 
        with such grant amounts meets the following 
        requirements, as applicable:
                  (A) Green communities criteria checklist.--
                All residential construction under the proposed 
                plan complies with the national Green 
                Communities criteria checklist for residential 
                construction that provides criteria for the 
                design, development, and operation of 
                affordable housing, as such checklist is in 
                effect for purposes of this subsection pursuant 
                to paragraph (3) at the date of the application 
                for the grant, or any substantially equivalent 
                standard as determined by the Secretary, as 
                follows:
                          (i) The proposed plan shall comply 
                        with all items of the national Green 
                        Communities criteria checklist for 
                        residential construction that are 
                        identified as mandatory.
                          (ii) The proposed plan shall comply 
                        with such other nonmandatory items of 
                        such national Green Communities 
                        criteria checklist so as to result in a 
                        cumulative number of points 
                        attributable to such nonmandatory items 
                        under such checklist of not less than--
                                  (I) 25 points, in the case of 
                                any proposed plan (or portion 
                                thereof) consisting of new 
                                construction; and
                                  (II) 20 points, in the case 
                                of any proposed plan (or 
                                portion thereof) consisting of 
                                rehabilitation.
                  (B) LEED ratings system.--All non-residential 
                construction under the proposed plan complies 
                with version 2.2 of the LEED for New 
                Construction rating system, version 2.0 of the 
                LEED for Core and Shell rating system, version 
                2.0 of the LEED for Commercial Interiors rating 
                system, as such systems are in effect for 
                purposes of this subsection pursuant to 
                paragraph (3) at the time of the application 
                for the grant, at least to the minimum extent 
                necessary to be certified to the Silver Level 
                under such system, or any substantially 
                equivalent standard as determined by the 
                Secretary.
          (2) Verification.--
                  (A) In general.--The Secretary shall verify, 
                or provide for verification, sufficient to 
                ensure that each proposed revitalization plan 
                carried out with amounts from a grant under 
                this section complies with the requirements 
                under paragraph (1) and that the revitalization 
                plan is carried out in accordance with such 
                requirements and plan.
                  (B) Timing.--In providing for such 
                verification, the Secretary shall establish 
                procedures to ensure such compliance with 
                respect to each grantee, and shall report to 
                the Congress with respect to the compliance of 
                each grantee, at each of the following times:
                          (i) Not later than 60 days after 
                        execution of the grant agreement under 
                        this section for the grantee.
                          (ii) Upon completion of the 
                        revitalization plan of the grantee.
          (3) Applicability and updating of standards.--
                  (A) Applicability.--Except as provided in 
                subparagraph (B), the national Green 
                Communities criteria checklist and LEED rating 
                systems referred to in subparagraphs (A) and 
                (B) that are in effect for purposes of this 
                subsection are such checklist and systems as in 
                existence upon the date of the enactment of the 
                HOPE VI Improvement and Reauthorization Act of 
                2007.
                  (B) Updating.--The Secretary may, by 
                regulation, adopt and apply, for purposes of 
                this section, future amendments and supplements 
                to, and editions of, the national Green 
                Communities criteria checklist, the LEED rating 
                systems, and any standard that the Secretary 
                has determined to be substantially equivalent 
                to such checklist or systems.
  (m) Fair Housing; Limitation on Exclusion.--
          (1) Fair housing.--Each revitalization plan assisted 
        under this section shall affirmatively further fair 
        housing, as described in subsection (e) of section 808 
        of the Civil Rights Act of 1968.
          (2) Limitation on exclusion.--Except to the extent 
        necessary to comply with the requirements of this 
        section, replacement housing provided pursuant to 
        subsection (j) under a revitalization plan of a public 
        housing agency that is owned or managed, or assisted, 
        by the agency shall be subject to the same policies, 
        practices, standards, and criteria regarding waiting 
        lists, tenant screening (including screening criteria, 
        such as credit checks), and occupancy that apply to 
        other housing owned or managed, or assisted, 
        respectively, by such agency. A household may not be 
        prevented from occupying a replacement dwelling unit 
        provided pursuant to subsection (j), or from being 
        provided a tenant-based voucher under the 
        revitalization plan, except to the extent specifically 
        provided by any other provision of Federal law 
        (including subtitle F of title V of the Quality Housing 
        and Work Responsibility Act of 1998 (42 U.S.C. 13661 et 
        seq.; relating to safety and security in public and 
        assisted housing and ineligibility of drug criminals, 
        illegal drug users, alcohol abusers, and dangerous sex 
        offenders), subtitle D of title VI of the Housing and 
        Community Development Act of 1992), (42 U.S.C. 13611 et 
        seq.; relating to preferences for elderly and disabled 
        residents), and section 16(f) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437n(f); relating to 
        ineligibility of persons convicted of methamphetamine 
        offenses)).
  (n) Enforcement.--
          (1) Administrative enforcement.--If the Secretary 
        determines on the record after opportunity for an 
        agency hearing, pursuant to a request made by any 
        member of household described in subsection (i)(1) who 
        is adversely affected or aggrieved by a violation of 
        subsection (g), (h), (i), (j), (k), (m), or (o), that 
        such a violation has occurred, the Secretary shall 
        issue an order requiring the public housing agency 
        committing such violation to cease and desist for such 
        violation and to take any affirmative action necessary 
        to correct or remedy the conditions resulting from such 
        violation.
          (2) Availability of other remedies.--The remedy under 
        paragraph (1) shall be in addition to all other rights 
        and remedies provided by law.
  (o) Performance Benchmarks.--
          (1) In general.--Each public housing agency that 
        receives a grant under this section shall, in 
        consultation with the Secretary and residents of the 
        public housing subject to the revitalization plan for 
        which the grant is made that are displaced as a result 
        of the revitalization plan, establish performance 
        benchmarks for each component of their revitalization 
        plan.
          (2) Failure to meet benchmarks.--If a public housing 
        agency fails to meet the performance benchmarks 
        established pursuant to paragraph (1), the Secretary 
        shall impose appropriate sanctions, including--
                  (A) appointment of an alternative 
                administrator for the revitalization plan;
                  (B) financial penalties;
                  (C) withdrawal of funding under subsection 
                (j); or
                  (D) such other sanctions as the Secretary may 
                deem necessary.
          (3) Extension of benchmarks.--The Secretary shall 
        extend the period for compliance with performance 
        benchmarks under paragraph (1) for a public housing 
        agency, for such period as the Secretary determines to 
        be necessary, if the failure of the agency to meet such 
        benchmarks is attributable to--
                  (A) litigation;
                  (B) obtaining approvals of the Federal 
                Government or a State or local government;
                  (C) complying with environmental assessment 
                and abatement requirements;
                  (D) relocating residents;
                  (E) resident involvement that leads to 
                significant changes to the revitalization plan; 
                or
                  (F) any other reason established by the 
                Secretary by notice published in the Federal 
                Register.
          (4) Authority of secretary.--In determining the 
        amount of each grant under this section and the 
        closeout date for the grant, the Secretary shall take 
        into consideration the scope, scale, and size of the 
        revitalization plan assisted under the grant.
  (p) Applicability of Other Laws.--
          (1) Section 18.--Any severely distressed public 
        housing demolished or disposed of pursuant to a 
        revitalization plan and any public housing developed in 
        lieu of such severely distressed housing shall be 
        subject to the provisions of section 18. To the extent 
        the provisions of section 18 conflict with or are 
        duplicative of the provisions of this section, the 
        provisions of this section solely shall apply.
          (2) URA.--The Uniform Relocation and Real Property 
        Acquisition Policies Act of 1974 shall apply to all 
        relocation activities pursuant to a revitalization plan 
        under this section.
  [(h)] (q) 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)] (r) Withdrawal of Funding.--If a grantee under this 
section does not proceed within a reasonable timeframe, 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 other 
applicants 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)] (s) Definitions.--For purposes of this section, the 
following definitions shall apply:
          (1) Applicant.--The term ``applicant'' means--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C) any public housing agency that is 
                designated as troubled pursuant to section 6( 
                j)(2) and that--
                          (i) is so designated principally for 
                        reasons that will not affect the 
                        capacity of the agency to carry out a 
                        revitalization [program] plan;

           *       *       *       *       *       *       *

                          (iii) is otherwise determined by the 
                        Secretary to be capable of carrying out 
                        a revitalization [program] plan.-
          (2) Comprehensive relocation assistance.--The term 
        ``comprehensive relocation assistance'' means 
        comprehensive assistance necessary to relocate the 
        members of a household, and includes counseling, 
        including counseling regarding housing options and 
        locations and use of tenant-based assistance, case 
        management services, assistance in locating a suitable 
        residence, site tours, and other assistance.
          (3) Development.--The term ``development'' has the 
        same meaning given such term in the first sentence of 
        paragraph (1) of section 3(c) (42 U.S.C. 1437a).
          [(2)] (4) Severely distressed public housing.--The 
        term ``severely distressed public housing'' means a 
        public housing project (or building in a project)--
                  (A) * * *

           *       *       *       *       *       *       *

          (5) Significant amendment or change.--The term 
        ``significant'' means, with respect to an amendment or 
        change to a revitalization plan, that the amendment or 
        change--
                  (A) changes the use of 10 percent or more of 
                the funds provided under the grant made under 
                this section for the plan from use for one 
                activity to use for another;
                  (B) eliminates an activity that, 
                notwithstanding the change, would otherwise be 
                carried out under the plan; or
                  (C) changes the scope, location, or 
                beneficiaries of the project carried out under 
                the plan.
          [(3) Supportive] (6) Community and supportive 
        services.--The term ``community and supportive 
        services'' includes all activities that will promote 
        upward mobility, self-sufficiency, and improved quality 
        of life for the residents of the public housing project 
        involved, including literacy training, job training, 
        day care, transportation, employment and vocational 
        counseling, financial counseling, life skills training, 
        and economic development activities, and such other 
        services that, linked with affordable housing, will 
        improve the health and residential stability of public 
        housing residents.
  [(k)] (t) Grantee Reporting.--The Secretary shall require 
grantees of assistance under this section to report the sources 
and uses of all amounts expended for revitalization plans.
  [(l)] (u) Annual Report.--The Secretary shall submit to the 
Congress an annual report setting forth--
          (1) * * *

           *       *       *       *       *       *       *

          (3) the amount and type of financial assistance 
        provided under and in conjunction with this section[, 
        including a specification of the amount and type of 
        assistance provided under subsection (n);]; and
          [(4) the types of projects funded, and number of 
        affordable housing dwelling units developed with, 
        grants under subsection (n); and]
          (4) the extent to which public housing agencies 
        carrying out revitalization plans with grants under 
        this section have complied with the requirements under 
        subsection (i) (relating to right to expanded housing 
        opportunities for resident households); and
          (5) the recommendations of the Secretary for 
        statutory and regulatory improvements to the program 
        established by this section.
To the extent not inconsistent with any other provisions of 
law, the Secretary shall make publicly available through a 
World Wide Web site of the Department of Housing and Urban 
Development all documents of, or filed with, the Department 
relating to the program under this section, including 
applications, grant agreements, plans, budgets, reports, and 
amendments to such documents; except that in carrying out this 
sentence, the Secretary shall take such actions as may be 
necessary to protect the privacy of any residents and 
households displaced from public housing as a result of a 
revitalization plan assisted under this section.
  [(m)] (v) Funding.--
          (1) Authorization of appropriations.--There are 
        authorized to be appropriated for grants under this 
        section [$574,000,000 for fiscal year 2007.] 
        $800,000,000 for each of fiscal years 2008 through 
        2015.
          [(2) Technical assistance and program oversight.--Of 
        the amount appropriated pursuant to paragraph (1) for 
        any fiscal year, the Secretary may use up to 2 percent 
        for technical assistance or contract expertise, 
        including assistance in connection with the 
        establishment and operation of computer centers in 
        public housing through the Neighborhoods Networks 
        initiative described in subsection (d)(1)(G). Such 
        assistance or contract expertise 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.
          [(3) Set-aside for main street housing grants.--Of 
        the amount appropriated pursuant to paragraph (1) for 
        any fiscal year, the Secretary shall provide up to 5 
        percent for use only for grants under subsection (n).]
          (2) Technical assistance grants.--Subject only to 
        approvable requests for grants pursuant to paragraph 
        (1) for any fiscal year, the Secretary shall use not 
        less than two percent for grants in such fiscal year to 
        recipients of grants under this section to assist such 
        recipients in obtaining technical assistance in 
        carrying out revitalization programs.
  [(n) Grants for Assisting Affordable Housing Developed 
Through Main Street Projects in Smaller Communities.--
          [(1) Authority and use of grant amounts.--The 
        Secretary may make grants under this subsection to 
        smaller communities. Such grant amounts shall be used 
        by smaller communities only to provide assistance to 
        carry out eligible affordable housing activities under 
        paragraph (4) in connection with an eligible project 
        under paragraph (2).
          [(2) Eligible project.--For purposes of this 
        subsection, the term ``eligible project'' means a 
        project that--
                  [(A) the Secretary determines, under the 
                criteria established pursuant to paragraph (3), 
                is a main street project;
                  [(B) is carried out within the jurisdiction 
                of a smaller community receiving the grant; and
                  [(C) involves the development of affordable 
                housing that is located in the commercial area 
                that is the subject of the project.
          [(3) Main street projects.--The Secretary shall 
        establish requirements for a project to be considered a 
        main street project for purposes of this section, which 
        shall require that the project--
                  [(A) has as its purpose the revitalization or 
                redevelopment of a historic or traditional 
                commercial area;
                  [(B) involves investment, or other 
                participation, by the government for, and 
                private entities in, the community in which the 
                project is carried out; and
                  [(C) complies with such historic preservation 
                guidelines or principles as the Secretary shall 
                identify to preserve significant historic or 
                traditional architectural and design features 
                in the structures or area involved in the 
                project.
          [(4) Eligible affordable housing activities.--For 
        purposes of this subsection, the activities described 
        in subsection (d)(1) shall be considered eligible 
        affordable housing activities, except that--
                  [(A) such activities shall be conducted with 
                respect to affordable housing rather than with 
                respect to severely distressed public housing 
                projects; and
                  [(B) eligible affordable housing activities 
                under this subsection shall not include the 
                activities described in subparagraphs (B) 
                through (E), (J), or (K) of subsection (d)(1).
          [(5) Maximum grant amount.--A grant under this 
        subsection for a fiscal year for a single smaller 
        community may not exceed $1,000,000.
          [(6) Contribution requirement.--A smaller community 
        applying for a grant under this subsection shall be 
        considered an applicant for purposes of subsection (c) 
        (relating to contributions by applicants), except 
        that--
                  [(A) such supplemental amounts shall be used 
                only for carrying out eligible affordable 
                housing activities; and
                  [(B) paragraphs (1)(B) and (3) shall not 
                apply to grants under this subsection.
          [(7) Applications and selection.--
                  [(A) Application.--Pursuant to subsection 
                (e)(1), the Secretary shall provide for smaller 
                communities to apply for grants under this 
                subsection, except that the Secretary may 
                establish such separate or additional criteria 
                for applications for such grants as may be 
                appropriate to carry out this subsection.
                  [(B) Selection criteria.--The Secretary shall 
                establish selection criteria for the award of 
                grants under this subsection, which shall be 
                based on the selection criteria established 
                pursuant to subsection (e)(2), with such 
                changes as may be appropriate to carry out the 
                purposes of this subsection.
          [(8) Cost limits.--The cost limits established 
        pursuant to subsection (f) shall apply to eligible 
        affordable housing activities assisted with grant 
        amounts under this subsection.
          [(9) Inapplicability of other provisions.--The 
        provisions of subsections (g) (relating to disposition 
        and replacement of severely distressed public housing), 
        and (h) (relating to administration of grants by other 
        entities), shall not apply to grants under this 
        subsection.
          [(10) Reporting.--The Secretary shall require each 
        smaller community receiving a grant under this 
        subsection to submit a report regarding the use of all 
        amounts provided under the grant.
          [(11) Definitions.--For purposes of this subsection, 
        the following definitions shall apply:
                  [(A) Affordable housing.--The term 
                ``affordable housing'' means rental or 
                homeownership dwelling units that--
                          [(i) are made available for initial 
                        occupancy to low-income families, with 
                        a subset of units made available to 
                        very- and extremely-low income 
                        families; and
                          [(ii) are subject to the same rules 
                        regarding occupant contribution toward 
                        rent or purchase and terms of rental or 
                        purchase as dwelling units in public 
                        housing projects assisted with a grant 
                        under this section.
                  [(B) Smaller community.--The term ``smaller 
                community'' means a unit of general local 
                government (as such term is defined in section 
                102 of the Housing and Community Development 
                Act of 1974 (42 U.S.C. 5302)) that--
                          [(i) has a population of 50,000 or 
                        fewer; and
                          [(ii)(I) is not served by a public 
                        housing agency; or
                          [(II) is served by a single public 
                        housing agency, which agency 
                        administers 100 or fewer public housing 
                        dwelling units.]
  [(o)] (w) Sunset.--No assistance may be provided under this 
section after September 30, [2007] 2015.
  (x) Regulations.--Not later than the expiration of the 120-
day period beginning on the date of the enactment of the HOPE 
VI Improvement and Reauthorization Act of 2007, the Secretary 
shall issue regulations to carry out this section, including 
the amendments made by such Act.

           *       *       *       *       *       *       *


                      REPUBLICAN ADDITIONAL VIEWS

    H.R. 3524, the HOPE VI Improvement and Reauthorization Act, 
reauthorizes the HOPE VI program through 2012 and makes several 
significant changes to the underlying program. It is our view 
that H.R. 3524 includes several very troubling provisions such 
as mandatory one-for-one replacement, mandatory compliance with 
the Green Communities rating system and the U.S. Green Building 
Council's Leadership in Energy and Environmental Design (LEED), 
and the elimination of demolition-only grants and tenant 
eligibility standards. We are concerned that these and other 
provisions will discourage participation in the HOPE VI program 
by developers and non-profits, thereby undermining the further 
development of affordable housing.

                               Background

    The HOPE VI program was created in 1992 with the express 
mission to eliminate and replace some of the most dangerous and 
dilapidated public housing in the country with livable mixed-
income communities. The creation of the program was the direct 
result of recommendations made in a report submitted to 
Congress by the National Commission on Severely Distressed 
Public Housing. In the report, the Commission reported that 
approximately 6 percent of the 1.4 million existing public 
housing apartments (86,000 units) were severely distressed, and 
recommended that they be removed from the housing stock. The 
HOPE VI program encourages public housing authorities (PHAs) to 
seek new partnerships with private entities to create mixed-
finance and mixed-income affordable housing that is developed 
and operated very differently from traditional public housing.
    The HOPE VI program was modified and extended by the FYs 
1994, 1995, 1996, 1997, 1998 and 1999 appropriations acts. HOPE 
VI was originally authorized through the end of FY 2002 by 
section 535 of the Quality Housing and Work Responsibility Act 
of 1998 (QHWRA). The 108th Congress initially extended the 
program through the end of FY 2004, but more recently Congress 
extended the HOPE VI program through FY 2006. The House passed 
a one-year reauthorization bill in the 109th Congress but the 
Senate did not take action.
    The purpose of the HOPE VI program is to revitalize 
severely distressed public housing developments and transform 
them into safe, livable environments. HOPE VI has been credited 
with eliminating and replacing some of the most dangerous and 
dilapidated public housing in the country with new mixed income 
communities. Local public housing authorities apply for grants 
and use the funds to leverage other private and/or public 
funds. The Department of Housing and Urban Development (HUD) 
seeks to meet the goals of the HOPE VI program by providing 
grants to PHAs for revitalization, or, if this is not 
economically feasible, for demolition of distressed public 
housing. The activities permitted under HOPE VI include:
          (1) The capital costs of demolition, major 
        reconstruction, rehabilitation and other physical 
        improvements;
          (2) Replacement housing and management improvements;
          (3) Planning and technical assistance; and
          (4) Implementation of community service programs and 
        supportive services, or the planning for such 
        activities.
    According to a report released in June 2007 by The Urban 
Institute's Metropolitan Housing and Communities Center, 
entitled ``HOPE VI'd and On the Move,''

          HUD has awarded 609 grants in 193 cities under the 
        $6.3 billion HOPE VI program, As of June 2006, HOPE VI 
        revitalization grants have supported the demolition of 
        78,100 severely distressed units, with another 10,400 
        units slated for redevelopment. Housing authorities 
        that receive HOPE VI grants must also develop 
        supportive services to help both original and new 
        residents attain self-sufficiency. HOPE VI funds will 
        support the construction of 103,600 replacement units, 
        but just 57,100 will be deeply subsidized public 
        housing units. The rest will receive shallower 
        subsidies or serve market-rate tenants or homebuyers.

    A study of eight HOPE VI sites undertaken by the Housing 
Research Foundation (HRF) found that in communities surrounding 
a recent HOPE VI revitalization project:
     Per capita incomes were up an average of 71 
percent (compared to only 14.5 percent for the cities as a 
whole).
     Neighborhood unemployment rates had fallen by an 
average of 8.4 percent.
     Only 11 percent of neighborhood households were 
receiving public assistance, down from an average of 39 percent 
in 1989.
     69 percent of households qualified as low-income, 
down from 81 percent in 1989.
     Commercial and residential lending rates increased 
at a faster rate than overall city increases.
     Violent crime and overall crime declined by an 
average of 46 percent and 68 percent respectively, compared to 
a decline of only 25 percent and 38 percent in the overall 
city.
    Despite its successes, the HOPE VI program is not without 
its shortcomings. The Bush Administration and other critics 
maintain that the program has accomplished its intended mission 
and should now be eliminated. They argue that grantees spend 
money too slowly and that the HOPE VI program is not an 
efficient method of meeting the current and future capital 
needs of public housing or for meeting the affordable housing 
needs of low-income families. In addition, tenant advocates 
claim that the program displaces more families than it houses 
in new developments.

   H.R. 3524, The HOPE VI Improvement and Reauthorization Act of 2007

    Participation by private sector developers and lenders is 
integral to the success of the HOPE VI program. However, H.R. 
3524 significantly complicates participation in the program and 
changes the risk profile for HOPE VI projects. Congressman 
Shays, an original cosponsor of the bill, and other Republican 
Members of the Committee worked with the Majority to address 
the bill's deficiencies, and while some changes were made 
through a manager's amendment during Committee consideration, 
there continue to be several areas of disagreement. 
Specifically, we remain concerned about provisions that 
eliminate the demolition-only grants; impose one-for-one 
replacement requirements; create a right of return for tenants 
displaced by HOPE VI projects; mandate Green Community/LEED 
building standards for all HOPE VI replacement buildings; 
eliminate the HOPE VI eligibility standards; require that units 
be replaced within 12 months after demolition; and impose 
multiple notice schedules.
    Elimination of Demolition-only Grants: Current law allows 
HUD to award demolition only grants, but H.R. 3524 eliminates 
that authority and prohibits the demolition of public housing 
units without replacement of those units through 
revitalization. Clearly, there may be instances when 
demolition-only grants are appropriate. For example, PHAs may 
have already assembled a financing package to fund 
redevelopment and replacement housing activities but are 
lacking the funds for the demolition itself. There may be 
severely distressed public housing sites that are not viable 
candidates for redevelopment--sites that may have been only 
partially occupied or completely vacant. In these instances, 
other forms of housing assistance, such as Section 8 vouchers, 
may be more appropriate in a community than public housing. For 
this reason, we support maintaining HUD's authority to make 
demolition-only grants.
    Mandatory One-for-One Replacement. H.R. 3524 stipulates 
that PHAs must replace every unit that is demolished or 
disposed of through a HOPE VI grant, including those units that 
were unoccupied prior to demolition. One-third of the 
replacement units must be placed on the site of the original 
housing and the remaining units within the jurisdiction of the 
PHA sponsoring the project. The one-for-one replacement 
requirement is inconsistent with the larger objective of the 
HOPE VI program, which is to demolish obsolete public housing 
units and develop sound strategies to redevelop not only the 
property but in many cases an entire community. The promotion 
of a mix of incomes for families that will reoccupy the site 
and the ``de-concentration'' of poverty are fundamental to the 
core mission of the HOPE VI program, and one-for-one 
replacement impedes the achievement of that mission.
    A one-for-one replacement requirement will affect both 
private and public funding and will pose a number of logistical 
challenges for private sector participants. Available land and 
site control issues are significant barriers to in-fill 
development in surrounding or adjacent neighborhoods, which 
would force housing agencies to focus construction of 
replacement units on the footprint of the development. However, 
the footprint is usually not large enough to accommodate both 
the replacement of most previous units on site and a mix of 
other housing types including market rate units. The end result 
would be reconcentration of poverty on the former site. This 
would undermine the mixed income model of the HOPE VI program 
and could return the development to a state similar to that 
before revitalization. The HOPE VI program has met its goal of 
providing an improved living environment for many residents of 
public housing and that improved quality of life is frequently 
due to a move to private market housing with the help of a 
Housing Choice Voucher or other federal assistance. The June 
2007 Urban Institute report states:

          For most residents of the original HOPE VI sites, 
        relocation is the major program. Our findings show that 
        for the majority of residents who have moved to the 
        private market, moving has meant improvements in 
        neighborhood poverty rates, neighborhood unemployment 
        rates and housing quality.

    H.R. 3524 assumes that families will move from the HOPE VI 
site, be temporarily relocated, and then return to the 
replacement housing constructed with HOPE VI funds.
    While this will be true for some families, it will not be 
for all. Some residents will choose to remain in the housing to 
which they relocated, or may choose to keep a Section 8 Housing 
Choice voucher which empowers the family to make choices about 
where and when they wish to move. Implementing the one-for-one 
replacement mandate for HOPE VI projects will increase the 
overall cost of the program, reduce the number and size of 
grants made available and discourage participation by the 
private market, which will lead to fewer families receiving 
assistance.
    Mandated Green Communities and LEED Compliance: H.R. 3524 
mandates that developers comply with the criteria of the Green 
Communities rating system, operated by Enterprise Community 
Partners, for residential projects, and the U.S. Green Building 
Council's Leadership in Energy and Environmental Design (LEED) 
rating system for mixed-use commercial projects, to the 
exclusion of other viable or accredited green building 
standards and programs. Green Communities and LEED requirements 
in residential and non-residential construction are important 
variables that will impact both time and cost estimates for a 
development. H.R. 3524 requires HOPE VI grantees to comply with 
both mandatory and non-mandatory elements of the Green 
Communities and LEED criteria which will inevitably increase 
the cost per unit for constructing public housing.
    HUD works closely with PHAs to keep total development costs 
(TDC) for public housing units in line with federal standards, 
and these new mandatory green building requirements could put 
many developments over the TDC thresholds. While we agree with 
the goal of building greener and more energy and resource-
efficient affordable housing, we question the wisdom of 
codifying a specific privately-developed rating tool such as 
Green Communities or LEED for a government program. Many 
credible and accredited green building standards and programs 
exist in the marketplace today or are in the process of being 
developed. Codifying green targets to the proprietary 
preference of one organization in lieu of other viable 
standards is misguided. Not only will it stifle innovation, but 
it will also artificially inflate costs for green building 
materials. In addition, it creates a profit monopoly for one 
organization through commissioning fees that have no 
environmental benefit. In a December 26 article in Slate 
Magazine by Daniel Brook entitled, ``It's Way Too Easy Being 
Green, The Decidedly Dupable System for Rating a Building's 
Greenness,'' it is estimated that LEED certification can cost 
more than $100,000. A 2006 Home Depot Foundation study found 
that incorporating green building elements into residential 
construction increases per unit costs by 3-5 percent, and the 
United States Green Building Council has estimated that 
complying with its forthcoming residential green building 
standard will add $12,000 to $15,000 in costs per unit, which 
may not be affordable for the mainstream builder.
    The National Association of Homebuilders (NAHB) is 
currently in the process of establishing the first residential 
green building standard accredited by the American National 
Standards Institute (ANSI). The ANSI accreditation credential 
certifies that the standard has met key criteria in the areas 
of balance, openness, consensus, and proper appeals protocols. 
The certification process ensures that no stakeholder receives 
any undue influence in the development of the benchmarks that 
must be environmentally rigorous, as agreed upon by both 
industry experts and by the regulatory community (state, local, 
and/or federal government) that enforces them. ANSI 
accreditation also authenticates an approved standard's ability 
to comply with national policy on the use of voluntary 
consensus standards (see OMB Circular A-119 (Revised)). For 
this reason, the NAHB has stated it will oppose this 
legislation if this provision remains in the bill. In a letter 
dated September 26, 2007, NAHB said:

          NAHB is extremely concerned about the impacts that 
        the mandatory language in Section 8 for Green 
        Communities and the LEED rating system will have on 
        being able to deliver HOPE VI projects. Because other 
        affordable alternatives exist in the marketplace, and 
        others are likely to emerge in response to addressing 
        the challenges of climate changes, the explicit 
        reference to one rating system in this legislation is 
        overly restrictive, costly and could limit the number 
        of projects that can be undertaken within the HOPE VI 
        program.

    The Committee has not been afforded adequate opportunity to 
fully investigate the ramifications of mandating green 
standards for the HOPE VI program, much less the implications 
of mandating a private label green standard such as Green 
Communities or LEED in statute. Congresswoman Capito, the 
Ranking Republican on the Subcommittee on Housing and Community 
Opportunity, offered an amendment during Committee 
consideration of H.R. 3524 to modify the costly mandatory green 
building standards for the HOPE VI program included in the 
bill. Mrs. Capito withdrew her amendment from consideration 
after receiving assurances that the Majority would continue to 
work toward a consensus on this issue. We are disappointed that 
the Majority has not followed through on that commitment.
    Elimination of HOPE VI Eligibility Standards. H.R. 3524 
would prohibit housing owners and managers (who are generally 
private actors, not PHAs) from using eligibility and occupancy 
standards that are used in other federally-subsidized housing 
programs. Specifically, the bill prohibits PHAs from holding 
displaced residents or new residents to the HOPE VI development 
to a different eligibility standard than other households. 
Specifically, it prohibits the use of any criteria, including 
credit checks, to limit the ability of public housing residents 
to re-occupy HOPE VI units, or to receive housing choice 
vouchers, except to the extent that the residents are otherwise 
ineligible by Federal law. In addition, the bill includes 
language providing preferences for the ``hard to house,'' which 
includes convicted felons. In its analysis of the bill, HUD 
questioned why former prisoners should be given preferential 
treatment through the HOPE VI program over other vulnerable 
households. Furthermore, HUD noted that across most HOPE VI 
developments, resident leaders request very strict return 
criteria to address these issues in the hope of establishing 
new standards for their community. The HOPE VI program has led 
the way in revitalizing not only the physical characteristics 
of distressed housing but in terms of management and housing 
policy in general. The continued success of the HOPE VI program 
and its ability to create mixed income communities depends on 
the ability of the private partners of public housing 
authorities, which include developers, lenders, investors and 
management companies, to be able to use fair and reasonable 
screening and occupancy policies as a condition for 
participation. Prohibiting PHAs and private partners from using 
eligibility standards may deter future participation in the 
HOPE VI program, which could ultimately impact the future 
construction and availability of affordable housing.
    Replacement of Units within 12 Month after Demolition. H.R. 
3524 includes a requirement to provide all replacement dwelling 
units within 12 months after the demolition of the original 
project. While we support the goal of increasing the spend out 
rate of HOPE VI funds and reducing the time it takes to 
complete a HOPE VI project, we share the concern previously 
articulated by HUD that this 12-month replacement requirement 
may be unworkable. As pointed out in the joint letter to 
Chairwoman Waters on September 24, 2007 by the executive 
directors of the Council of Large Public Housing Authorities, 
National Association of Housing and Redevelopment Officials, 
and Public Housing Authorities Directors Association, this 
requirement is inconsistent with the financing and development 
of newly constructed rental housing:

          The requirement does not take into account the 
        specific circumstances of a community, local building 
        conditions, or unforeseen setbacks and delays in 
        financing, construction and redevelopment process. The 
        assembly and preparation of building sites, the 
        allocation of low-income housing tax credits and the 
        availability of financing can be a multi-year effort. 
        If housing authorities are expected to provide 
        replacement dwelling units, the statue must provide 
        scheduling flexibility to structure the phases of their 
        projects while taking into account the availability of 
        building sites, financing, types of units and other 
        local market factors.

    Multiple Notice Schedules. H.R. 3524 imposes additional 
tenant involvement and participation requirements in the 
planning process for a HOPE VI redevelopment project. The bill 
requires public housing agencies to inform residents during all 
stages of the grant and application process through four 
written notices regarding the application, award of the grant, 
completion of the grant, and availability of replacement 
housing. It is important to note that current law requires 
housing agencies to involve residents in the grant application 
process, development efforts, relocation and community and 
supportive services. Under additional requirements in the 
Uniform Relocation Act (URA), which all HOPE VI grantees are 
obligated to follow, PHAs must issue a notice of intention to 
redevelop a site and of the right of residents to relocation 
benefits. Tenant input and participation is essential to the 
success of a revitalization program. However, it is important 
that the processes and procedures put in place do not impede 
the ability to effectively and efficiently implement the 
revitalization program. While H.R. 3524 includes many tenant 
protections and participation requirements, it does not include 
any level of protection for private and public entities 
administering or participating in the HOPE VI program. The 
absence of adequate safeguards ensuring an orderly and fair 
planning and development process for public housing authorities 
and private entities may serve as a deterrent to their 
participation in the program.

                               Conclusion

    The HOPE VI program is not a cure-all for the 
rehabilitation and capital improvement needs of public housing. 
However, it has been a program that has worked. Through public-
private partnerships, many severely distressed public housing 
developments have been transformed into safe, livable 
environments by establishing positive incentives for tenant 
self-sufficiency and comprehensive services that empower 
residents. Because the overly prescriptive and potentially 
burdensome reforms contained in H.R. 3524 threaten to do more 
harm than good to the HOPE VI program, we intend to seek 
substantial changes to the legislation when it is considered by 
the full House.

                                   Shelly Moore Capito.
                                   Peter Roskam.
                                   Ginny Brown-Waite.
                                   Randy Neugebauer.
                                   Kenny Marchant.
                                   Adam H. Putnam.
                                   John Campbell.
                                   Spencer Bachus, III.
                                   Geoff Davis.
                                   Christopher Shays.
                                   Mike Castle.

                                  
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