[House Report 115-1023]
[From the U.S. Government Publishing Office]


115th Congress    }                                 {        Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                 {        115-1023

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



 
           FOSTERING STABLE HOUSING OPPORTUNITIES ACT OF 2018

                                _______
                                

 November 14, 2018.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

Mr. Hensarling, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 2069]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 2069) to provide priority under certain 
federally assisted housing programs to assist youths who are 
aging out of foster care, and for other purposes, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.
    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Fostering Stable Housing Opportunities 
Act of 2018''.

SEC. 2. DEFINITION OF FAMILY.

  Subparagraph (A) of section 3(b)(3) of the United States Housing Act 
of 1937 (42 U.S.C. 1437a(b)(3)(A)) is amended--
          (1) in the first sentence--
                  (A) by striking ``(v)'' and inserting ``(vi)''; and
                  (B) by inserting after ``tenant family,'' the 
                following: ``(v) a child who is in foster care and has 
                attained an age such that the provision of foster care 
                for such child will end by reason of the age of the 
                child within 6 months,''; and
          (2) in the second sentence, by inserting ``or (vi)'' after 
        ``clause (v)''.

SEC. 3. PRIORITY FOR PUBLIC HOUSING OCCUPANCY AND SECTION 8 ASSISTANCE.

  (a) Public Housing.--Subparagraph (A) of section 6(c)(4) of the 
United States Housing Act of 1937 (42 U.S.C. 1437d(c)(4)(A)) is 
amended--
          (1) by striking ``may establish a system for making dwelling 
        units available that provides preference'' and inserting the 
        following: ``shall establish a system for making dwelling units 
        available that--
                          ``(i) shall provide preferences'';
          (2) by striking ``each system of preferences established 
        pursuant to this subparagraph shall be based'' and inserting 
        the following:
                          ``(ii) except as provided in clause (iii), 
                        shall be based'';
          (3) by adding at the end the following new clause:
                          ``(iii) except for projects or portions of 
                        projects designated for occupancy pursuant to 
                        section 7(a), shall provide that the highest 
                        preference for occupancy shall be given to 
                        otherwise eligible children who are in foster 
                        care, have attained an age such that the 
                        provision of foster care for such child will 
                        end by reason of the age of the child within 6 
                        months, meet the requirements under clauses (i) 
                        and (ii) of paragraph (1) of the definition of 
                        `at risk of homelessness' in section 91.5 of 
                        the Secretary's regulations (24 C.F.R. 91.5), 
                        as in effect on September 1, 2016, and have 
                        agreed to comply with the requirements under 
                        section 39(c); and
                          ``(iv) may provide highest preference for 
                        occupancy to, in addition to eligible children 
                        described in clause (iii), not more than two 
                        other types of families.''.
  (b) Voucher Assistance.--Subparagraph (A) of section 8(o)(6) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(o)(6)(A)) is 
amended--
          (1) in clause (i), by striking ``may'' the first place such 
        term appears and inserting ``shall'';
          (2) by redesignating clause (ii) as clause (iii);
          (3) by inserting before clause (iii), as so redesignated by 
        paragraph (1) of this subsection, the following new clause:
                          ``(ii) Highest preference.--Each system of 
                        preferences established pursuant to this 
                        subparagraph--
                                  ``(I) shall provide that the highest 
                                preference for assistance shall be 
                                given to otherwise eligible children 
                                who are in foster care, have attained 
                                an age such that the provision of 
                                foster care for such child will end by 
                                reason of the age of the child within 6 
                                months, meet the requirements under 
                                clauses (i) and (ii) of paragraph (1) 
                                of the definition of `at risk of 
                                homelessness' in section 91.5 of the 
                                Secretary's regulations (24 C.F.R. 
                                91.5), as in effect on September 1, 
                                2016, and have agreed to comply with 
                                the requirements under section 39(c); 
                                and
                                  ``(II) may provide highest preference 
                                for assistance to, in addition to 
                                eligible children described in 
                                subclause (I), not more than two other 
                                types of eligible families.''; and
          (4) in clause (iii), as so redesignated by paragraph (2) of 
        this subsection, by striking ``Each system'' and inserting 
        ``Except as provided in clause (ii)(I), each system''.
  (c) PHA Project-based Voucher Assistance.--Subparagraph (J) of 
section 8(o)(13) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(13)(J)) is amended--
          (1) by striking ``(J) Tenant selection.--A public'' and 
        inserting the following:
                  ``(J) Tenant selection.--
                          ``(i) Selection and eligibility.--A public'';
          (2) by striking ``The agency or owner may establish 
        preferences or criteria for selection for a unit assisted under 
        this paragraph that'' and inserting the following:
                          ``(ii) Preferences for occupancy.--The agency 
                        or owner shall establish a system of 
                        preferences or criteria for selection for a 
                        unit assisted under this section that--
                                  ``(I) shall provide that the highest 
                                preference shall be given to otherwise 
                                eligible children who are in foster 
                                care, have attained an age such that 
                                the provision of foster care for such 
                                child will end by reason of the age of 
                                the child within 6 months, meet the 
                                requirements under clauses (i) and (ii) 
                                of paragraph (1) of the definition of 
                                `at risk of homelessness' in section 
                                91.5 of the Secretary's regulations (24 
                                C.F.R. 91.5), as in effect on September 
                                1, 2016, and have agreed to comply with 
                                the requirements under section 39(c); 
                                and
                                  ``(II) may provide highest preference 
                                to, in addition to eligible children 
                                described in subclause (I), not more 
                                than two other types of eligible 
                                families; and
                                  ``(III) except as provided under 
                                subclause (I),''; and
          (3) by striking ``Any family that'' and inserting the 
        following:
                          ``(iii) Waiting lists.--Any family that''.
  (d) Project-based Section 8 Rental Assistance.--Subparagraph (A) of 
section 8(d)(1) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(d)(1)(A)) is amended--
          (1) by realigning such subparagraph so as to be indented 2 
        ems from the left margin;
          (2) by striking ``except that with respect'' and inserting 
        the following: ``except that--
                  ``(i) with respect to assisted dwelling units in a 
                project assisted with project-based assistance under 
                this section, the tenant selection criteria used by the 
                owner--
                          ``(I) shall provide that the highest 
                        preference shall be given to otherwise eligible 
                        children who are in foster care, have attained 
                        an age such that the provision of foster care 
                        for such child will end by reason of the age of 
                        the child within 6 months, meet the 
                        requirements under clauses (i) and (ii) of 
                        paragraph (1) of the definition of `at risk of 
                        homelessness' in section 91.5 of the 
                        Secretary's regulations (24 C.F.R. 91.5), as in 
                        effect on September 1, 2016, and have agreed to 
                        comply with the requirements under section 
                        39(c); and
                          ``(II) may provide highest preference to, in 
                        addition to eligible children described in 
                        subclause (I), not more than two other types of 
                        eligible families; and
                  ``(ii) with respect''; and
          (3) by inserting ``who are not eligible for highest 
        preference pursuant to clause (i)(I)'' after ``to be 
        assisted''.
  (e) Terms and Conditions on Priority.--Title I of the United States 
Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at 
the end the following new section:

``SEC. 39. TERMS AND CONDITIONS ON PREFERENCE FOR ASSISTANCE FOR 
                    CHILDREN AGING OUT OF FOSTER CARE.

  ``(a) Preference.--For purposes of this section, the term `preference 
for housing assistance' means preference, for an otherwise eligible 
child in foster care, for--
          ``(1) occupancy in a public housing dwelling unit, pursuant 
        to section 6(c)(4)(A)(iii);
          ``(2) tenant-based assistance under section 8(o), pursuant to 
        paragraph (6)(A)(ii)(I) of such section;
          ``(3) project-based assistance under section 8(o)(13), 
        pursuant to subparagraph (J)(ii)(I) of such section; and
          ``(4) occupancy in a dwelling unit in a project assisted with 
        project-based assistance under section 8, pursuant to 
        subsection (d)(1)(A)(i)(I) of such section.
  ``(b) Early Application for Assistance.--Notwithstanding the period 
during which a preference for housing assistance is provided for a 
person, an otherwise eligible person may apply for such occupancy or 
assistance at any time after such person attains 16 years of age.
  ``(c) Requirement for Education or Training.--
          ``(1) Requirement.--Except as provided in paragraph (2), each 
        person occupying a dwelling unit pursuant to a preference for 
        housing assistance shall, not later than 30 months after such 
        initial occupancy, comply with the requirements under one of 
        the following subparagraphs, as selected by the public housing 
        agency for or project owner of the assisted housing dwelling 
        unit involved, in consultation with relevant public child 
        welfare agencies:
                  ``(A) Option 1.--The requirements under this 
                subparagraph are--
                          ``(i) obtaining a recognized postsecondary 
                        credential or a secondary school diploma or its 
                        recognized equivalent;
                          ``(ii) enrollment in an institution of higher 
                        education, as such term is defined in section 
                        101(a) of the Higher Education Act of 1965 (20 
                        U.S.C. 1001(a)) and including the institutions 
                        described in subparagraphs (A) and (B) of 
                        section 102(a)(1) of such Act (20 U.S.C. 
                        1002(a)(1)); or
                          ``(iii) participation in a career pathway, as 
                        such term is defined in section 3 of the 
                        Workforce Innovation and Opportunity Act (29 
                        U.S.C. 3102).
                Notwithstanding any other provision of this paragraph, 
                a public housing agency or project owner may consider 
                employment as satisfying the requirements under this 
                subparagraph.
                  ``(B) Option 2.--The requirements under this 
                subparagraph are compliance with the terms and 
                conditions applicable under section 23 of the United 
                States Housing Act of 1937 (42 U.S.C. 1437u) and the 
                regulations implementing such section to a person 
                participating in a family self-sufficiency program 
                under such section, except that--
                          ``(i) a public housing agency may select the 
                        option under this subparagraph only if the 
                        agency is participating in such self-
                        sufficiency program or has made such 
                        commitments to commence participation as the 
                        Secretary considers sufficient; and
                          ``(ii) a project owner of assisted housing 
                        may select the option under this subparagraph 
                        only if the public housing agency in whose 
                        jurisdiction the project is located is 
                        participating in such self-sufficiency program 
                        or has made such commitments to commence 
                        participation as the Secretary considers 
                        sufficient.
                  ``(C) Option 3.--The requirements under this 
                subparagraph are compliance with any combination of the 
                terms, conditions, and requirements under subparagraphs 
                (A) and (B), as may be established by the public 
                housing agency, except that a project owner of assisted 
                housing may select the option under this subparagraph 
                only if the public housing agency in whose jurisdiction 
                the project is located has selected the option under 
                this subparagraph and has established such terms, 
                conditions, and requirements. In designing such terms, 
                conditions, and requirements, the public housing agency 
                may consult with local workforce development agencies 
                and other organizations and entities with expertise and 
                experience in this field.
          ``(2) Exceptions.--The requirement under paragraph (1) shall 
        not apply to--
                  ``(A) a parent or other household member responsible 
                for the care of a dependent child under the age of 6 or 
                for the care of an incapacitated person;
                  ``(B) a person who is regularly and actively 
                participating in a drug addiction or alcohol treatment 
                and rehabilitation program; and
                  ``(C) a person who is incapable of complying with the 
                requirement under paragraph (1) due to a documented 
                medical condition.
          ``(3) Verification of compliance.--The Secretary shall 
        require the public housing agency or project owner, as 
        applicable, to verify compliance with the requirement under 
        paragraph (1) by each person occupying a dwelling unit assisted 
        or administered by such agency or owner, as applicable, 
        pursuant to a preference for housing assistance annually in 
        conjunction with reviews of income for purposes of determining 
        eligibility for assistance described in subsection (a).
  ``(d) Limitation on Bedrooms.--A dwelling unit that is occupied by a 
person, or assisted with assistance made available on behalf of a 
person, pursuant to a preference for housing assistance may contain 
more than one bedroom only if such additional bedrooms are occupied 
only by other persons who occupy such dwelling unit, or receive 
assistance made available, pursuant to a preference for housing 
assistance.
  ``(e) Supportive Services.--
          ``(1) Eligibility.--Each person occupying a dwelling unit 
        pursuant to a preference for housing assistance shall be 
        eligible for any supportive services (as such term is defined 
        in section 103 of the Workforce Innovation and Opportunity Act 
        (29 U.S.C. 3102)) made available, in connection with any 
        housing assistance program of the agency, by or through the 
        public housing agency providing such preference or, in the case 
        of a preference for housing assistance for housing not assisted 
        by such agency, by or through the public housing agency in 
        whose jurisdiction the housing is located, including any 
        services provided under a family self-sufficiency program under 
        section 23 of this Act.
          ``(2) Information.--Upon the initial provision of housing 
        assistance for any person pursuant to a preference for such 
        assistance, the public housing agency or owner, as applicable, 
        shall inform such person of the existence of any programs or 
        services referred to in paragraph (1) and of their eligibility 
        for such programs and services.
  ``(f) Termination of Assistance.--The public housing agency or 
project owner, as applicable, shall terminate any occupancy of, or 
assistance on behalf of, a person pursuant to any preference for 
housing assistance upon the person attaining 25 years of age or upon 
substantial noncompliance with the requirement under subsection (c), 
except that nothing in this subsection may be construed to prohibit the 
occupancy of housing assisted under this title by, or the provision of 
rental assistance under section 8 for, any person, or to affect the 
eligibility of any person for such occupancy or assistance, other than 
pursuant to a preference for housing assistance.
  ``(g) Applicability to Moving to Work Agencies.--Notwithstanding any 
other provision of law, the preferences for housing assistance 
identified in subsection (a) of this section shall apply to assistance 
made available by each public housing agency participating in the 
Moving to Work Program under section 204 of the Departments of Veterans 
Affairs and Housing and Urban Development, and Independent Agencies 
Appropriations Act, 1996 (42 U.S.C. 1437f note), except that in lieu of 
compliance with one of the options under subsection (c)(1) of this 
section, such an agency may comply with the requirement under such 
subsection by complying with such terms, conditions, and requirements 
as may be established by the agency for persons occupying dwelling 
units pursuant to a preference for housing assistance.
  ``(h) Reports.--The Secretary of Housing and Urban Development shall 
require each public housing agency that provides any preference for 
housing assistance pursuant to this section in any fiscal year to 
submit a report to the Secretary for such fiscal year that--
          ``(1) specifies the number of applications for such 
        preferences received during such fiscal year disaggregated by--
                  ``(A) the number received by persons who have 
                attained 16 years of age but have not attained an age 
                such that the provision of foster care for such child 
                will end by reason of the age of the child within 6 
                months; and
                  ``(B) the number received by persons who have 
                attained an age such that the provision of foster care 
                for such child will end by reason of the age of the 
                child within 6 months;
          ``(2) specifies the number of persons provided a preference 
        for housing assistance during such fiscal year; and
          ``(3) describes how the public housing agency communicated or 
        collaborated with public child welfare agencies to collect such 
        data.''.

SEC. 4. PRIORITY FOR RURAL RENTAL ASSISTANCE.

  Paragraph (2) of section 521(a) of the Housing Act of 1949 (42 U.S.C. 
1490a(a)(2)) is amended by adding at the end the following new 
subparagraph:
  ``(F)(i) In making occupancy in a project assisted under this 
paragraph, and rental assistance under this paragraph, available on 
behalf of eligible families, the project owner--
          ``(I) shall provide that the highest preference shall be 
        given to otherwise eligible children who--
                  ``(aa) are in foster care;
                  ``(bb) have attained an age such that the provision 
                of foster care for such child will end by reason of the 
                age of the child within 6 months;
                  ``(cc) meet the requirements under clauses (i) and 
                (ii) of paragraph (1) of the definition of `at risk of 
                homelessness' in section 91.5 of the Secretary of 
                Housing and Urban Development's regulations (24 C.F.R. 
                91.5), as in effect on September 1, 2016; and
                  ``(dd) have agreed to comply with the requirements 
                under clause (iii); and
          ``(II) may provide highest preference to, in addition to 
        eligible children described in subclause (I), not more than two 
        other types of eligible families.
  ``(ii) Notwithstanding the period during which a preference pursuant 
to clause (i)(I) for occupancy in project assisted under this paragraph 
or for rental assistance under this paragraph is provided for a person, 
an otherwise eligible person may apply for such occupancy or assistance 
at any time after the person attains 16 years of age.
  ``(iii)(I) Except as provided in subclause (II), each person 
occupying a dwelling unit pursuant to a preference under clause (i)(I) 
shall, not later than 30 months after such initial occupancy, be--
          ``(aa) obtaining a recognized postsecondary credential or a 
        secondary school diploma or its recognized equivalent;
          ``(bb) enrolled in an institution of higher education, as 
        such term is defined in section 101(a) of the Higher Education 
        Act of 1965 (20 U.S.C. 1001(a)) and including the institutions 
        described in subparagraphs (A) and (B) of section 102(a)(1) of 
        such Act (20 U.S.C. 1002(a)(1)); or
          ``(cc) participating in a career pathway, as such term is 
        defined in section 3 of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3102).
Notwithstanding any other provision of this subclause, a project owner 
may consider employment as satisfying the requirements under this 
subclause.
  ``(II) The requirement under subclause (I) shall not apply to--
          ``(aa) a parent or other household member responsible for the 
        care of a dependent child under the age of 6 or for the care of 
        an incapacitated person;
          ``(bb) a person who is regularly and actively participating 
        in a drug addiction or alcohol treatment and rehabilitation 
        program; and
          ``(cc) a person who is incapable of complying with the 
        requirement under subclause (I) due to a documented medical 
        condition.
  ``(III) The Secretary shall require a project owner to verify 
compliance with the requirement under this clause by each person 
occupying a dwelling unit pursuant to a preference under clause (i)(I) 
annually in conjunction with reviews of income for purposes of 
determining eligibility for assistance described in clause (i).
  ``(iv) A dwelling unit that is occupied by a person pursuant to a 
preference under clause (i)(I) may contain more than one bedroom only 
if such additional bedrooms are occupied only by other persons who 
occupy such dwelling unit pursuant to a preference under clause (i)(I).
  ``(v) The project owner shall terminate any occupancy of a person 
pursuant to the preference under clause (i)(I) upon the person 
attaining 25 years of age or upon substantial noncompliance with the 
requirement under clause (iii), except that nothing in this clause may 
be construed to prohibit the occupancy in a project assisted under this 
paragraph by, or the provision of rental assistance under this 
paragraph for, any person, or to affect the eligibility of any person 
for such occupancy or assistance, other than pursuant to a preference 
under clause (i)(I).''.

SEC. 5. EXCEPTIONS TO LIMITATIONS FOR PROJECT-BASED VOUCHER ASSISTANCE.

  (a) Percentage Limitation.--The first sentence of clause (ii) of 
section 8(o)(13)(B) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(13)(B)(ii)) is amended by inserting before ``or that'' the 
following: ``that house eligible children described in section 
6(c)(4)(A)(iii) who comply with the requirements under section 
39(c),''.
  (b) Income-mixing Requirement.--Subclause (I) of section 
8(o)(13)(D)(ii) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(13)(D)(ii)(I)) is amended by inserting after ``elderly 
families'' the following: ``, to eligible children described in section 
6(c)(4)(A)(iii),''.

SEC. 6. GUIDANCE REGARDING IMPLEMENTATION.

  (a) In General.--The Secretary of Housing and Urban Development 
jointly with the Secretary of Agriculture, in consultation with the 
Secretary of Health and Human Services, shall develop guidance for 
public housing agencies and owners of assisted housing regarding how to 
correctly and efficiently implement and comply with the requirements of 
this Act and the amendments made by this Act and shall make such 
guidance available to such agencies and owners.
  (b) Consultation With HHS.--The Secretary of Housing and Urban 
Development jointly with the Secretary of Agriculture shall consult 
with the Secretary of Health and Human Services to provide such 
information and guidance to the Secretary of Health and Human Services 
as may be necessary to facilitate such Secretary in informing States 
and public child welfare agencies on how to correctly and efficiently 
implement and comply with the requirements of this Act and the 
amendments made by this Act.

                          Purpose and Summary

    On April 6, 2017, Rep. Mike Turner introduced H.R. 2069, 
the ``Fostering Stable Housing Opportunities Act of 2018.'' 
H.R. 2069 amends the United States Housing Act of 1937 to 
include within the definition of ``families'' a child who is in 
foster care and who has attained an age such that the provision 
of foster care for such child will end by reason of the age of 
the child within six months. H.R. 2069 authorizes Public 
Housing Agencies (PHAs) to give preferences, subject to certain 
terms and conditions, for public housing occupancy and section 
8 housing assistance to eligible foster youth who are aging out 
of foster care and are at-risk for homelessness. In addition to 
foster youth aging out of care and at-risk of homelessness, 
PHAs may also provide the highest preference for housing 
assistance to two other types of eligible families, selected at 
their discretion. H.R. 2069 also amends the Housing Act of 1949 
to give similar preference for rural rental assistance to 
eligible foster youth who are aging out of foster care and are 
at-risk of homelessness.

                  Background and Need for Legislation

    In Fiscal Year 2015, the U.S. Department of Health and 
Human Services' Administration for Children and Families 
estimated that nearly 21,000 youth across the country 
emancipated (``aged out'') from foster care. Because the 
government assumes the role of parent for these youth, and also 
determines when they age out of care, it is equally responsible 
to provide and supply adequate support as they make the 
overnight transition into adulthood, so as to prevent 
government-triggered homelessness. Homeless individuals face 
extraordinary difficulties across a broad range of life 
activities, and being homeless is associated with a host of 
negative outcomes, often straining America's social safety net 
and financial resources.
    Unfortunately, foster care alumni are one of the most 
vulnerable, high-risk groups to succumb to homelessness. 
Studies show that the sudden and permanent transition from 
foster care to adulthood is a key driver behind homelessness. 
Nearly one-in-five foster youth initially surveyed at age 17 
reported that by age 19--at which point 80 percent were no 
longer in foster care--they had experienced homelessness during 
the previous two years. In another study, more than two-in-five 
youth endured housing challenges during the two years after 
exiting foster care, with 20 percent struggling through chronic 
homelessness. Former foster children are also 
disproportionately represented among homeless adult 
populations. Overall, as many as 37 percent of foster care 
alumni have experienced homelessness. A May 2014 U.S. 
Department of Housing and Urban Development analysis confirmed 
that, ``current research on the outcomes of youth aging out of 
foster care points to a real need for policy and programs to 
assist them in maintaining housing. . . .''
    Section 8(o) of the United States Housing Act of 1937 (42 
U.S.C. 1437f (o)) authorizes the Housing Choice Voucher (HCV) 
program and approximately 2,300 PHAs locally administers the 
program. A family who is issued a housing voucher is 
responsible for finding a suitable housing unit of the family's 
choice, including: single-family homes, townhouses, and 
apartments, in which the owner agrees to rent under the program 
(provided the rental unit passes a Housing Quality Standards 
(HQS) inspection performed by the PHA). Tenant-based housing 
assistance is provided on behalf of the family or individual as 
opposed to a subsidy tied to a particular unit or project. 
Participating families may subsequently choose to move to 
another unit, neighborhood, or community without losing their 
rental assistance. Of the families currently receiving HCV 
assistance, 76 percent are extremely low-income, with incomes 
at or below 30 percent of the area median income, 36 percent 
have a disabled head of household, and 24 percent are elderly.
    The PHA pays the housing subsidy directly to the owner of 
the unit on behalf of the participating family. The family is 
responsible for paying the difference between the gross rent of 
the unit and the amount subsidized by the program. The family 
must pay a minimum of 30 percent of their adjusted monthly 
income toward rent and utilities. The amount of the subsidy is 
capped by the payment standard established by the PHA, which 
may be between 90 and 110 percent of the Fair Market Rent (FMR) 
for the area. If families rent units with rents above the 
payment standard, for instance units located in more desirable 
areas with greater opportunity, the family pays the difference 
between the gross rent and the payment standard in addition to 
the 30 percent of monthly adjusted income. Funding for the HCV 
program consists of two main cost components: (1) Housing 
Assistance Payments (HAP) made to owners to cover the 
difference between a tenant's rent contribution and the unit 
rent, and (2) administrative fees paid to PHAs to cover the 
cost of administering the program.
    Since the demand for housing assistance often exceeds the 
limited resources available to HUD and the local housing 
agencies, long waiting periods are common. In fact, a PHA may 
close its waiting list when it has more families on the list 
than can be assisted in the near future.
    PHAs may establish local preferences for selecting 
applicants from its waiting list. For example, PHAs may give a 
preference to a family who is (1) homeless or living in 
substandard housing, (2) paying more than 50 percent of its 
income for rent, or (3) involuntarily displaced. Families who 
qualify for any such local preferences move ahead of other 
families on the lists that do not qualify for any preference. 
Each PHA has the discretion to establish local preferences to 
reflect the housing needs and priorities of its particular 
community.
    Government plays the role of parent for foster youth, and 
it determines when they age out and must take on adult 
responsibilities. Government also has an obligation to end the 
homelessness it creates by preventing foster youth from 
applying for assistance until adulthood--which frequently 
relegates them to the end of a long line for housing 
assistance--even though the government knows when these youth 
will age out of foster care. The Fostering Stable Housing 
Opportunities Act would help put an end to this barrier to 
access to housing assistance by ensuring that aging out of 
foster care would not mean aging into homelessness. H.R. 2069, 
provides eligible foster youth with the opportunity to apply 
for housing assistance before they age out of foster care and 
prioritizes them during this difficult transition period to 
adulthood and in doing so the legislation will provide a 
stronger foundation for stable, independent, and self-
sufficient lives.

                                Hearings

    The Committee on Financial Services, Subcommittee on 
Housing and Insurance held a hearing examining matters relating 
to H.R. 2069 on April 17, 2018.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
July 24, 2018, and ordered H.R. 2069 to be reported favorably 
to the House, as amended, by a recorded vote of 34 yeas to 23 
nays (recorded vote no. FC-196), a quorum being present.

                            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. A 
motion by Chairman Hensarling to report the bill favorably to 
the House, as amended, was agreed to by a recorded vote of 34 
ayes and 23 nays (FC-196), a quorum being present. An amendment 
in the nature of a substitute offered by Mr. Duffy was agreed 
to by a voice vote. An amendment to the amendment in the nature 
of a substitute offered by Ms. Waters was not agreed to by a 
recorded vote of 23 ayes and 34 nays (FC-195).





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                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the findings and recommendations of 
the Committee based on oversight activities under clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
are incorporated in the descriptive portions of this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee states that H.R. 5793 
authorizes the Secretary of Housing and Urban Development to 
carry out a housing choice voucher mobility demonstration to 
encourage families receiving such voucher assistance to move to 
lower-poverty areas and expand access to opportunity areas.

   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.

                 Congressional Budget Office Estimates

    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, September 11, 2018.
Hon. Jeb Hensarling,
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. 2069, the 
Fostering Stable Housing Opportunities Act of 2018.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Elizabeth 
Cove Delisle.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

H.R. 2069--Fostering Stable Housing Opportunities Act of 2018

    H.R. 2069 would require public housing authorities and 
property owners to give children who are aging out of foster 
care priority for federal housing assistance. Former foster 
children generally would be required to have a high-school 
diploma, be employed, be enrolled at an institution of higher 
education, or be participating in a career pathway within 30 
months of the time that they initially receive housing 
assistance. Housing assistance would terminate if the former 
foster child fails to meet the requirements, or once they turn 
25 years of age.
    Former foster children are eligible for housing assistance 
under current law--provided they meet income and other 
requirements--so the bill would not increase eligibility for 
housing assistance. The bill could increase the workload 
associated with verifying compliance with program requirements 
such as working or being enrolled in school. CBO estimates, 
that the cost of that increased workload would be insignificant 
over the 2019-2023 period because of the small number of former 
foster kids that would receive assistance and because the 
requirement to comply would be delayed by up to 30 months.
    Enacting the bill would not affect direct spending or 
revenues; therefore, pay-as-you-go procedures do not apply.
    CBO estimates that enacting H.R. 2069 would not increase 
net direct spending or on-budget deficits in any of the four 
consecutive 10-year periods beginning in 2029.
    H.R. 2069 contains no private-sector mandates as defined in 
the Unfunded Mandates Reform Act. The bill would impose an 
intergovernmental mandate by preempting state, local, and 
tribal laws governing the occupancy preferences used by public 
housing agencies participating in the Moving to Work Program. 
CBO estimates that the preemption would not affect the budgets 
of state, local, or tribal governments. Although it would limit 
the application of state laws, it would impose no duty on 
states that would result in additional spending or a loss of 
revenues.
    The CBO staff contacts for this estimate are Elizabeth Cove 
Delisle (for federal costs) and Rachel Austin (for mandates). 
The estimate was reviewed by H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

                       Federal Mandates Statement

    This information is provided in accordance with section 423 
of the Unfunded Mandates Reform Act of 1995.
    The Committee has determined that the bill does not contain 
Federal mandates on the private sector. The Committee has 
determined that the bill does not impose a Federal 
intergovernmental mandate on State, local, or tribal 
governments.

                      Advisory Committee Statement

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

                  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 the section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    With respect to clause 9 of rule XXI of the Rules of the 
House of Representatives, the Committee has carefully reviewed 
the provisions of the bill and states that the provisions of 
the bill do not contain any congressional earmarks, limited tax 
benefits, or limited tariff benefits within the meaning of the 
rule.

                    Duplication of Federal Programs

    In compliance with clause 3(c)(5) of rule XIII of the Rules 
of the House of Representatives, the Committee states that no 
provision of the bill establishes or reauthorizes: (1) a 
program of the Federal Government known to be duplicative of 
another Federal program; (2) a program included in any report 
from the Government Accountability Office to Congress pursuant 
to section 21 of Public Law 111-139; or (3) a program related 
to a program identified in the most recent Catalog of Federal 
Domestic Assistance, published pursuant to the Federal Program 
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No. 
98-169).

                   Disclosure of Directed Rulemaking

    Pursuant to section 3(i) of H. Res. 5, (115th Congress), 
the following statement is made concerning directed rule 
makings: The Committee estimates that the bill requires no 
directed rule makings within the meaning of such section.

             Section-by-Section Analysis of the Legislation


Section 1. Short title

    This section titles the bill as the ``Fostering Stable 
Housing Opportunities Act of 2018''.

Section 2. Definition of family

    Section 2 amends section 3(b)(3) of the United States 
Housing Act of 1937 by including within the definition of 
``families'' a child who is in foster care and has attained an 
age such that the provision of foster care for such child will 
end by reason of the age of the child within six months.

Section 3. Priority for public housing occupancy and section 8 
        assistance

    This section amends sections 6 and 8 of the United States 
Housing Act of 1937 to require Public Housing Authorities 
(PHAs) to provide the highest preference for occupancy in 
public housing units and project-based section 8 development, 
or for the provision of a voucher authorized under the Housing 
Choice Voucher (HCV) program, to those eligible children who 
are (1) in foster care, (2) will age-out of the foster care 
system with six months, (3) are at-risk of homelessness as 
defined in regulation, and (4) meet certain program and 
occupancy requirements. In addition to foster youth aging out 
of care and at-risk of homelessness, PHAs may also provide the 
highest preference for housing assistance to two other types of 
eligible families, selected at their discretion. Eligible 
foster youth are authorized to begin the application process at 
16 years of age.
            Education & workforce development requirements
    This section also requires eligible foster youth, within 
thirty months of receiving housing assistance authorized under 
this bill, to either: (1) be obtaining a recognized 
postsecondary credential or a secondary school diploma (or its 
equivalent); (2) be enrolled in an institution of higher 
education as defined by sections 101 and 102 of the Higher 
Education Act of 1965; (3) participate in a career pathway as 
defined in section 3 of the Workforce Innovation and 
Opportunity Act; (4) participate in the Department of Housing 
and Urban Development's (HUD) family self-sufficiency program, 
provided the local PHA is a program participant; or (5) a 
combination of the above criteria, as designed by the PHA in 
conjunction with local workforce development agencies. PHAs are 
authorized to consider employment as satisfying the education 
and workforce development requirements. In selecting which of 
the foregoing criteria will apply within the PHA's area of 
jurisdiction, PHAs shall consult with public child welfare 
agencies (PCWAs).
    Eligible foster youth are exempt from the education or 
workforce development requirements if they are: (1) a parent 
caring for a dependent child under six years of age or caring 
for an incapacitated person; (2) regularly and actively 
participating in a drug addiction or alcohol treatment and 
rehabilitation program; or (3) incapable of complying due to a 
documented medical condition. PHAs and private owners will 
verify compliance with these terms and conditions annually in 
conjunction with verifications of income for purposes of 
determining eligibility for housing assistance.
            Unit flexibility
    This section allows eligible foster youth to occupy a 
dwelling unit with more than one bedroom if such bedroom is 
occupied by another foster youth aging out of care who receives 
housing assistance pursuant to this Act.
            Supportive services
    This section also clarifies that eligible foster youth 
would be eligible for all available supportive services, as 
defined in section 103 of the Workforce Innovation and 
Opportunity Act. Upon initially furnishing housing assistance 
pursuant to this Act, PHAs and private owners shall inform 
recipients of all existing supportive services or associated 
programs.
            Termination of assistance
    Assistance authorized under this Act would be terminated 
when an eligible foster youth attains the age of 25 or upon 
substantial noncompliance with the education and workforce 
development requirements. This section also clarifies that, 
even upon termination, eligible foster youth are not prohibited 
from applying for housing assistance otherwise available to any 
individual outside of the preferences provided in this Act.
            Moving To Work
    This section clarifies that those PHAs that are designated 
Moving To Work agencies, as defined under section 204 of the 
Department of Veterans Affairs and Housing and Urban 
Development and Independent Agencies Appropriations Act, 1996, 
are exempt from complying with the education and workforce 
development requirements as set out by this Act.
            Reports
    This section requires PHAs to report annually on: (1) the 
number of applications for housing assistance pursuant to this 
Act received from foster youth who have attained 16 years of 
age but not yet aged-out of the foster care system; (2) the 
number of applications for housing assistance pursuant to this 
Act received from foster youth who will be eligible to receive 
a preference within 6 months; (3) the number of persons who 
received housing assistance pursuant to this Act; and (4) how 
the PHA communicated or collaborated with PCWAs to collect such 
data.

         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, and existing law in which no 
change is proposed is shown in roman):

         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, and 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

           *       *       *       *       *       *       *


                      rental payments; definitions

  Sec. 3. (a)(1) Dwelling units assisted under this Act shall 
be rented only to families who are low-income families at the 
time of their initial occupancy of such units. Reviews of 
family income shall be made pursuant to paragraph (6); except 
that, in the case of any family with a fixed income, as defined 
by the Secretary, after the initial review of the family's 
income, the public housing agency or owner shall not be 
required to conduct a review of the family's income for any 
year for which such family certifies, in accordance with such 
requirements as the Secretary shall establish, which shall 
include policies to adjust for inflation-based income changes, 
that 90 percent or more of the income of the family consists of 
fixed income, and that the sources of such income have not 
changed since the previous year, except that the public housing 
agency or owner shall conduct a review of each such family's 
income not less than once every 3 years. Except as provided in 
paragraph (2) and subject to the requirement under paragraph 
(3), a family shall pay as rent for a dwelling unit assisted 
under this Act (other than a family assisted under section 8(o) 
or (y) or paying rent under section 8(c)(3)(B)) the highest of 
the following amounts, rounded to the nearest dollar:
          (A) 30 per centum of the family's monthly adjusted 
        income;
          (B) 10 per centum of the family's monthly income; or
          (C) if the family is receiving payments for welfare 
        assistance from a public agency and a part of such 
        payments, adjusted in accordance with the family's 
        actual housing costs, is specifically designated by 
        such agency to meet the family's housing costs, the 
        portion of such payments which is so designated.
  (2) Rental payments for public housing families.--
          (A) Authority for family to select.--
                  (i) In general.--A family residing in a 
                public housing dwelling shall pay as monthly 
                rent for the unit the amount determined under 
                clause (i) or (ii) of subparagraph (B), subject 
                to the requirement under paragraph (3) 
                (relating to minimum rents). Each public 
                housing agency shall provide for each family 
                residing in a public housing dwelling unit 
                owned, assisted, or operated by the agency to 
                elect annually whether the rent paid by such 
                family shall be determined under clause (i) or 
                (ii) of subparagraph (B). A public housing 
                agency may not at any time fail to provide both 
                such rent options for any public housing 
                dwelling unit owned, assisted, or operated by 
                the agency.
                  (ii) Authority to retain flat and ceiling 
                rents.--Notwithstanding clause (i) or any other 
                provision of law, any public housing agency 
                that is administering flat rents or ceiling 
                rents pursuant to any authority referred to in 
                section 519(d) of the Quality Housing and Work 
                Responsibility Act of 1998 before the effective 
                day of such Act may continue to charge rent in 
                accordance with such rent provisions after such 
                effective date, except that the agency shall 
                provide for families residing in public housing 
                dwelling units owned or operated by the agency 
                to elect annually whether to pay rent under 
                such provisions or in accordance with one of 
                the rent options referred to in subparagraph 
                (A).
          (B) Allowable rent structures.--
                  (i) Flat rents.--Each public housing agency 
                shall establish, for each dwelling unit in 
                public housing owned or operated by the agency, 
                a flat rental amount for the dwelling unit, 
                which--
                          (I) shall not be lower than 80 
                        percent of--
                                  (aa) the applicable fair 
                                market rental established under 
                                section 8(c) of this Act; or
                                  (bb) at the discretion of the 
                                Secretary, such other 
                                applicable fair market rental 
                                established by the Secretary 
                                that the Secretary determines 
                                more accurately reflects local 
                                market conditions and is based 
                                on an applicable market area 
                                that is geographically smaller 
                                than the applicable market area 
                                used for purposes of the 
                                applicable fair market rental 
                                under section 8(c);
                                except that a public housing 
                                agency may apply to the 
                                Secretary for exception 
                                allowing for a flat rental 
                                amount for a property that is 
                                lower than the amount otherwise 
                                determined pursuant to item 
                                (aa) or (bb) and the Secretary 
                                may grant such exception if the 
                                Secretary determines that the 
                                fair market rental for the 
                                applicable market area pursuant 
                                to item (aa) or (bb) does not 
                                reflect the market value of the 
                                property and the proposed lower 
                                flat rental amount is based on 
                                a market analysis of the 
                                applicable market and complies 
                                with subclause (II) and
                          (II) shall be designed in accordance 
                        with subparagraph (D) so that the rent 
                        structures do not create a disincentive 
                        for continued residency in public 
                        housing by families who are attempting 
                        to become economically self-sufficient 
                        through employment or who have attained 
                        a level of self-sufficiency through 
                        their own efforts.
                If a new flat rental amount for a dwelling unit 
                will increase a family's existing rental 
                payment by more than 35 percent, the new flat 
                rental amount shall be phased in as necessary 
                to ensure that the family's existing rental 
                payment does not increase by more than 35 
                percent annually. The preceding sentence shall 
                not be construed to require establishment of 
                rental amounts equal to 80 percent of the fair 
                market rental in years when the fair market 
                rental falls from the prior year.
                  (ii) Income-based rents.--
                          (I) In general.--The monthly rental 
                        amount determined under this clause for 
                        a family shall be an amount, determined 
                        by the public housing agency, that does 
                        not exceed the greatest of the amounts 
                        (rounded to the nearest dollar) 
                        determined under subparagraphs (A), 
                        (B), and (C) of paragraph (1). This 
                        clause may not be construed to require 
                        a public housing agency to charge a 
                        monthly rent in the maximum amount 
                        permitted under this clause.
                          (II) Discretion.--Subject to the 
                        limitation on monthly rental amount 
                        under subclause (I), a public housing 
                        agency may, in its discretion, 
                        implement a rent structure under this 
                        clause requiring that a portion of the 
                        rent be deposited to an escrow or 
                        savings account, imposing ceiling 
                        rents, or adopting income exclusions 
                        (such as those set forth in section 
                        3(b)(5)(B)), or may establish another 
                        reasonable rent structure or amount.
          (C) Switching rent determination methods because of 
        hardship circumstances.--Notwithstanding subparagraph 
        (A), in the case of a family that has elected to pay 
        rent in the amount determined under subparagraph 
        (B)(i), a public housing agency shall immediately 
        provide for the family to pay rent in the amount 
        determined under subparagraph (B)(ii) during the period 
        for which such election was made upon a determination 
        that the family is unable to pay the amount determined 
        under subparagraph (B)(i) because of financial 
        hardship, including--
                  (i) situations in which the income of the 
                family has decreased because of changed 
                circumstances, loss of reduction of employment, 
                death in the family, and reduction in or loss 
                of income or other assistance;
                  (ii) an increase, because of changed 
                circumstances, in the family's expenses for 
                medical costs, child care, transportation, 
                education, or similar items; and
                  (iii) such other situations as may be 
                determined by the agency.
          (D) Encouragement of self-sufficiency.--The rental 
        policy developed by each public housing agency shall 
        encourage and reward employment and economic self-
        sufficiency.
          (E) Income reviews.--Notwithstanding the second 
        sentence of paragraph (1), in the case of families that 
        are paying rent in the amount determined under 
        subparagraph (B)(i), the agency shall review the income 
        of such family not less than once every 3 years.
  (3) Minimum rental amount.--
          (A) Requirement.--Notwithstanding paragraph (1) of 
        this subsection, the method for rent determination 
        elected pursuant to paragraph (2)(A) of this subsection 
        by a family residing in public housing, section 8(o)(2) 
        of this Act, or section 206(d) of the Housing and 
        Urban-Rural Recovery Act of 1983 (including paragraph 
        (5) of such section), the following entities shall 
        require the following families to pay a minimum monthly 
        rental amount (which amount shall include any amount 
        allowed for utilities) of not more than $50 per month, 
        as follows:
                  (i) Each public housing agency shall require 
                the payment of such minimum monthly rental 
                amount, which amount shall be determined by the 
                agency, by--
                          (I) each family residing in a 
                        dwelling unit in public housing by the 
                        agency;
                          (II) each family who is assisted 
                        under the certificate or moderate 
                        rehabilitation program under section 8; 
                        and
                          (III) each family who is assisted 
                        under the voucher program under section 
                        8, and the agency shall reduce the 
                        monthly assistance payment on behalf of 
                        such family as may be necessary to 
                        ensure payment of such minimum monthly 
                        rental amount.
                  (ii) The Secretary shall require each family 
                who is assisted under any other program for 
                rental assistance under section 8 to pay such 
                minimum monthly rental amount, which amount 
                shall be determined by the Secretary.
          (B) Exception for hardship circumstances.--
                  (i) In general.--Notwithstanding subparagraph 
                (A), a public housing agency (or the Secretary, 
                in the case of a family described in 
                subparagraph (A)(ii)) shall immediately grant 
                an exemption from application of the minimum 
                monthly rental under such subparagraph to any 
                family unable to pay such amount because of 
                financial hardship, which shall include 
                situations in which (I) the family has lost 
                eligibility for or is awaiting an eligibility 
                determination for a Federal, State, or local 
                assistance program, including a family that 
                includes a member who is an alien lawfully 
                admitted for permanent residence under the 
                Immigration and Nationality Act who would be 
                entitled to public benefits but for title IV of 
                the Personal Responsibility and Work 
                Opportunity Reconciliation Act of 1996; (II) 
                the family would be evicted as a result of the 
                imposition of the minimum rent requirement 
                under subparagraph (A); (III) the income of the 
                family has decreased because of changed 
                circumstance, including loss of employment; 
                (IV) a death in the family has occurred; and 
                (V) other situations as may be determined by 
                the agency (or the Secretary, in the case of a 
                family described in subparagraph (A)(ii)).
                  (ii) Waiting period.--If a resident requests 
                a hardship exemption under this subparagraph 
                and the public housing agency (or the 
                Secretary, in the case of a family described in 
                subparagraph (A)(ii)) reasonably determines the 
                hardship to be of a temporary nature, an 
                exemption shall not be granted during the 90-
                day period beginning upon the making of a 
                request for the exemption. A resident may not 
                be evicted during such 90-day period for 
                nonpayment of rent. In such a case, if the 
                resident thereafter demonstrates that the 
                financial hardship is of a long-term basis, the 
                agency (or the Secretary) shall retroactively 
                exempt the resident from the applicability of 
                the minimum rent requirement for such 90-day 
                period.
          (4) Occupancy by police officers.--
                  (A) In general.--Subject to subparagraph (B) 
                and notwithstanding any other provision of law, 
                a public housing agency may, in accordance with 
                the public housing agency plan for the agency, 
                allow a police officer who is not otherwise 
                eligible for residence in public housing to 
                reside in a public housing dwelling unit. The 
                number and location of units occupied by police 
                officers under this paragraph and the terms and 
                conditions of their tenancies shall be 
                determined by the public housing agency.
                  (B) Increased security.--A public housing 
                agency may take the actions authorized in 
                subparagraph (A) only for the purpose of 
                increasing security for the residents of a 
                public housing project.
                  (C) Definition.--In this paragraph, the term 
                ``police officer'' means any person determined 
                by a public housing agency to be, during the 
                period of residence of that person in public 
                housing, employed on a full-time basis as a 
                duly licensed professional police officer by a 
                Federal, State, or local government or by any 
                agency thereof (including a public housing 
                agency having an accredited police force).
          (5) Occupancy by over-income families in certain 
        public housing.--
                  (A) Authority.--Notwithstanding any other 
                provision of law, a public housing agency that 
                owns or operates less than 250 units may, on a 
                month-to-month basis, lease a dwelling unit in 
                a public housing project to an over-income 
                family in accordance with this paragraph, but 
                only if there are no eligible families applying 
                for housing assistance from the public housing 
                agency for that month and the agency provides 
                not less than 30-day public notice of the 
                availability of such assistance.
                  (B) Terms and conditions.--The number and 
                location of dwelling units of a public housing 
                agency occupied under this paragraph by over-
                income families, and the terms and conditions 
                of those tenancies, shall be determined by the 
                public housing agency, except that--
                          (i) notwithstanding paragraph (2), 
                        rent for a unit shall be in an amount 
                        that is not less than the costs to 
                        operate the unit;
                          (ii) if an eligible family applies 
                        for residence after an over-income 
                        family moves in to the last available 
                        unit, the over-income family shall 
                        vacate the unit in accordance with 
                        notice of termination of tenancy 
                        provided by the agency, which shall be 
                        provided not less than 30 days before 
                        such termination; and
                          (iii) if a unit is vacant and there 
                        is no one on the waiting list, the 
                        public housing agency may allow an 
                        over-income family to gain immediate 
                        occupancy in the unit, while 
                        simultaneously providing reasonable 
                        public notice and outreach with regard 
                        to availability of the unit.
                  (C) Definition.--For purposes of this 
                paragraph, the term ``over-income family'' 
                means an individual or family that is not a 
                low-income family at the time of initial 
                occupancy.
          (6) Reviews of family income.--
                  (A) Frequency.--Reviews of family income for 
                purposes of this section shall be made--
                          (i) in the case of all families, upon 
                        the initial provision of housing 
                        assistance for the family;
                          (ii) annually thereafter, except as 
                        provided in paragraph (1) with respect 
                        to fixed-income families;
                          (iii) upon the request of the family, 
                        at any time the income or deductions 
                        (under subsection (b)(5)) of the family 
                        change by an amount that is estimated 
                        to result in a decrease of 10 percent 
                        (or such lower amount as the Secretary 
                        may, by notice, establish, or permit 
                        the public housing agency or owner to 
                        establish) or more in annual adjusted 
                        income; and
                          (iv) at any time the income or 
                        deductions (under subsection (b)(5)) of 
                        the family change by an amount that is 
                        estimated to result in an increase of 
                        10 percent or more in annual adjusted 
                        income, or such other amount as the 
                        Secretary may by notice establish, 
                        except that any increase in the earned 
                        income of a family shall not be 
                        considered for purposes of this clause 
                        (except that earned income may be 
                        considered if the increase corresponds 
                        to previous decreases under clause 
                        (iii)), except that a public housing 
                        agency or owner may elect not to 
                        conduct such review in the last three 
                        months of a certification period.
                  (B) In general.--Reviews of family income for 
                purposes of this section shall be subject to 
                the provisions of section 904 of the Stewart B. 
                McKinney Homeless Assistance Amendments Act of 
                1988 (42 U.S.C. 3544).
          (7) Calculation of income.--
                  (A) Use of current year income.--In 
                determining family income for initial occupancy 
                or provision of housing assistance pursuant to 
                clause (i) of paragraph (6)(A) or pursuant to 
                reviews pursuant to clause (iii) or (iv) of 
                such paragraph, a public housing agency or 
                owner shall use the income of the family as 
                estimated by the agency or owner for the 
                upcoming year.
                  (B) Use of prior year income.--In determining 
                family income for annual reviews pursuant to 
                paragraph (6)(A)(ii), a public housing agency 
                or owner shall, except as otherwise provided in 
                this paragraph and paragraph (1), use the 
                income of the family as determined by the 
                agency or owner for the preceding year, taking 
                into consideration any redetermination of 
                income during such prior year pursuant to 
                clause (iii) or (iv) of paragraph (6)(A).
                  (C) Other income.--In determining the income 
                for any family based on the prior year's 
                income, with respect to prior year calculations 
                of income not subject to subparagraph (B), a 
                public housing agency or owner may make other 
                adjustments as it considers appropriate to 
                reflect current income.
                  (D) Safe harbor.--A public housing agency or 
                owner may, to the extent such information is 
                available to the public housing agency or 
                owner, determine the family's income prior to 
                the application of any deductions based on 
                timely income determinations made for purposes 
                of other means-tested Federal public assistance 
                programs (including the program for block 
                grants to States for temporary assistance for 
                needy families under part A of title IV of the 
                Social Security Act, a program for Medicaid 
                assistance under a State plan approved under 
                title XIX of the Social Security Act, and the 
                supplemental nutrition assistance program (as 
                such term is defined in section 3 of the Food 
                and Nutrition Act of 2008 (7 U.S.C. 2012))). 
                The Secretary shall, in consultation with other 
                appropriate Federal agencies, develop 
                electronic procedures to enable public housing 
                agencies and owners to have access to such 
                benefit determinations made by other means-
                tested Federal programs that the Secretary 
                determines to have comparable reliability. 
                Exchanges of such information shall be subject 
                to the same limitations and tenant protections 
                provided under section 904 of the Stewart B. 
                McKinney Homeless Assistance Act Amendments of 
                1988 (42 U.S.C. 3544) with respect to 
                information obtained under the requirements of 
                section 303(i) of the Social Security Act (42 
                U.S.C. 503(i)).
                  (E) Electronic income verification.--The 
                Secretary shall develop a mechanism for 
                disclosing information to a public housing 
                agency for the purpose of verifying the 
                employment and income of individuals and 
                families in accordance with section 
                453(j)(7)(E) of the Social Security Act (42 
                U.S.C. 653(j)(7)(E)), and shall ensure public 
                housing agencies have access to information 
                contained in the ``Do Not Pay'' system 
                established by section 5 of the Improper 
                Payments Elimination and Recovery Improvement 
                Act of 2012 (Public Law 112-248; 126 Stat. 
                2392).
                  (F) PHA and owner compliance.--A public 
                housing agency or owner may not be considered 
                to fail to comply with this paragraph or 
                paragraph (6) due solely to any de minimis 
                errors made by the agency or owner in 
                calculating family incomes.
  (b) When used in this Act:
  (1) The term ``low-income housing'' means decent, safe, and 
sanitary dwellings assisted under this Act. The term ``public 
housing'' means low-income housing, and all necessary 
appurtenances thereto, assisted under this Act other than under 
section 8. The term ``public housing'' includes dwelling units 
in a mixed finance project that are assisted by a public 
housing agency with capital or operating assistance. When used 
in reference to public housing, the term ``low-income housing 
project'' or ``project'' means (A) housing developed, acquired, 
or assisted by a public housing agency under this Act, and (B) 
the improvement of any such housing.
  (2)(A) The term low-income families means those families 
whose incomes do not exceed 80 per centum of the median income 
for the area, as determined by the Secretary with adjustments 
for smaller and larger families, except that the Secretary may 
establish income ceilings higher or lower than 80 per centum of 
the median for the area on the basis of the Secretary's 
findings that such variations are necessary because of 
prevailing levels of construction costs or unusually high or 
low family incomes.
  (B) The term very low-income families means low-income 
families whose incomes do not exceed 50 per centum of the 
median family income for the area, as determined by the 
Secretary with adjustments for smaller and larger families, 
except that the Secretary may establish income ceilings higher 
or lower than 50 per centum of the median for the area on the 
basis of the Secretary's findings that such variations are 
necessary because of unusually high or low family incomes.
          (C) The term extremely low-income families means very 
        low-income families whose incomes do not exceed the 
        higher of--
                  (i) the poverty guidelines updated 
                periodically by the Department of Health and 
                Human Services under the authority of section 
                673(2) of the Community Services Block Grant 
                Act applicable to a family of the size involved 
                (except that this clause shall not apply in the 
                case of public housing agencies or projects 
                located in Puerto Rico or any other territory 
                or possession of the United States); or
                  (ii) 30 percent of the median family income 
                for the area, as determined by the Secretary, 
                with adjustments for smaller and larger 
                families (except that the Secretary may 
                establish income ceilings higher or lower than 
                30 percent of the median for the area on the 
                basis of the Secretary's findings that such 
                variations are necessary because of unusually 
                high or low family incomes).
  (D) Such ceilings shall be established in consultation with 
the Secretary of Agriculture for any rural area, as defined in 
section 520 of the Housing Act of 1949, taking into account the 
subsidy characteristics and types of programs to which such 
ceilings apply. In determining median incomes (of persons, 
families, or households) for an area or establishing any 
ceilings or limits based on income under this Act, the 
Secretary shall determine or establish area median incomes and 
income ceilings and limits for Westchester and Rockland 
Counties, in the State of New York, as if each such county were 
an area not contained within the metropolitan statistical area 
in which it is located. In determining such area median incomes 
or establishing such income ceilings or limits for the portion 
of such metropolitan statistical area that does not include 
Westchester or Rockland Counties, the Secretary shall determine 
or establish area median incomes and income ceilings and limits 
as if such portion included Westchester and Rockland Counties. 
In determining areas that are designated as difficult 
development areas for purposes of the low-income housing tax 
credit, the Secretary shall include Westchester and Rockland 
Counties, New York, in the New York City metropolitan area.
  (3) Persons and families.--
          (A) Single persons.--The term ``families'' includes 
        families consisting of a single person in the case of 
        (i) an elderly person, (ii) a disabled person, (iii) a 
        displaced person, (iv) the remaining member of a tenant 
        family, (v) a child who is in foster care and has 
        attained an age such that the provision of foster care 
        for such child will end by reason of the age of the 
        child within 6 months,  and [(v)] (vi) any other single 
        persons. In no event may any single person under clause 
        (v) or (vi) of the first sentence be provided a housing 
        unit assisted under this Act of 2 or more bedrooms.
          (B) Families.--The term ``families'' includes 
        families with children and, in the cases of elderly 
        families, near-elderly families, and disabled families, 
        means families whose heads (or their spouses), or whose 
        sole members, are elderly, near-elderly, or persons 
        with disabilities, respectively. The term includes, in 
        the cases of elderly families, near-elderly families, 
        and disabled families, 2 or more elderly persons, near-
        elderly persons, or persons with disabilities living 
        together, and 1 or more such persons living with 1 or 
        more persons determined under the public housing agency 
        plan to be essential to their care or well-being.
          (C) Absence of children.--The temporary absence of a 
        child from the home due to placement in foster care 
        shall not be considered in determining family 
        composition and family size.
          (D) Elderly person.--The term ``elderly person'' 
        means a person who is at least 62 years of age.
          (E) Person with disabilities.--The term ``person with 
        disabilities'' means a person who--
                  (i) has a disability as defined in section 
                223 of the Social Security Act,
                  (ii) is determined, pursuant to regulations 
                issued by the Secretary, to have a physical, 
                mental, or emotional impairment which (I) is 
                expected to be of long-continued and indefinite 
                duration, (II) substantially impedes his or her 
                ability to live independently, and (III) is of 
                such a nature that such ability could be 
                improved by more suitable housing conditions, 
                or
                  (iii) has a developmental disability as 
                defined in section 102 of the Developmental 
                Disabilities Assistance and Bill of Rights Act 
                of 2000.
        Such term shall not exclude persons who have the 
        disease of acquired immunodeficiency syndrome or any 
        conditions arising from the etiologic agent for 
        acquired immunodeficiency syndrome. Notwithstanding any 
        other provision of law, no individual shall be 
        considered a person with disabilities, for purposes of 
        eligibility for low-income housing under this title, 
        solely on the basis of any drug or alcohol dependence. 
        The Secretary shall consult with other appropriate 
        Federal agencies to implement the preceding sentence.
          (F) Displaced person.--The term ``displaced person'' 
        means a person displaced by governmental action, or a 
        person whose dwelling has been extensively damaged or 
        destroyed as a result of a disaster declared or 
        otherwise formally recognized pursuant to Federal 
        disaster relief laws.
          (G) Near-elderly person.--The term ``near-elderly 
        person'' means a person who is at least 50 years of age 
        but below the age of 62.
          (4) Income.--The term ``income'' means, with respect 
        to a family, income received from all sources by each 
        member of the household who is 18 years of age or older 
        or is the head of household or spouse of the head of 
        the household, plus unearned income by or on behalf of 
        each dependent who is less than 18 years of age, as 
        determined in accordance with criteria prescribed by 
        the Secretary, in consultation with the Secretary of 
        Agriculture, subject to the following requirements:
                  (A) Included amounts.--Such term includes 
                recurring gifts and receipts, actual income 
                from assets, and profit or loss from a 
                business.
                  (B) Excluded amounts.--Such term does not 
                include--
                          (i) any imputed return on assets, 
                        except to the extent that net family 
                        assets exceed $50,000, except that such 
                        amount (as it may have been previously 
                        adjusted) shall be adjusted for 
                        inflation annually by the Secretary in 
                        accordance with an inflationary index 
                        selected by the Secretary;
                          (ii) any amounts that would be 
                        eligible for exclusion under section 
                        1613(a)(7) of the Social Security Act 
                        (42 U.S.C. 1382b(a)(7));
                          (iii) deferred disability benefits 
                        from the Department of Veterans Affairs 
                        that are received in a lump sum amount 
                        or in prospective monthly amounts;
                          (iv) any expenses related to aid and 
                        attendance under section 1521 of title 
                        38, United States Code, to veterans who 
                        are in need of regular aid and 
                        attendance; and
                          (v) exclusions from income as 
                        established by the Secretary by 
                        regulation or notice, or any amount 
                        required by Federal law to be excluded 
                        from consideration as income.
                  (C) Earned income of students.--Such term 
                does not include--
                          (i) earned income, up to an amount as 
                        the Secretary may by regulation 
                        establish, of any dependent earned 
                        during any period that such dependent 
                        is attending school or vocational 
                        training on a full-time basis; or
                          (ii) any grant-in-aid or scholarship 
                        amounts related to such attendance 
                        used--
                                  (I) for the cost of tuition 
                                or books; or
                                  (II) in such amounts as the 
                                Secretary may allow, for the 
                                cost of room and board.
                  (D) Educational savings accounts.--Income 
                shall be determined without regard to any 
                amounts in or from, or any benefits from, any 
                Coverdell education savings account under 
                section 530 of the Internal Revenue Code of 
                1986 or any qualified tuition program under 
                section 529 of such Code.
                  (E) Recordkeeping.--The Secretary may not 
                require a public housing agency or owner to 
                maintain records of any amounts excluded from 
                income pursuant to this subparagraph.
          (5) Adjusted income.--The term ``adjusted income'' 
        means, with respect to a family, the amount (as 
        determined by the public housing agency or owner) of 
        the income of the members of the family residing in a 
        dwelling unit or the persons on a lease, after any 
        deductions from income as follows:
                  (A) Elderly and disabled families.--$525 in 
                the case of any family that is an elderly 
                family or a disabled family.
                  (B) Minors, students, and persons with 
                disabilities.--$480 for each member of the 
                family residing in the household (other than 
                the head of the household or his or her spouse) 
                who is less than 18 years of age or is 
                attending school or vocational training on a 
                full-time basis, or who is 18 years of age or 
                older and is a person with disabilities.
                  (C) Child care.--Any reasonable child care 
                expenses necessary to enable a member of the 
                family to be employed or to further his or her 
                education.
                  (D) Health and medical expenses.--The amount, 
                if any, by which 10 percent of annual family 
                income is exceeded by the sum of--
                          (i) in the case of any elderly or 
                        disabled family, any unreimbursed 
                        health and medical care expenses; and
                          (ii) any unreimbursed reasonable 
                        attendant care and auxiliary apparatus 
                        expenses for each handicapped member of 
                        the family, if determined necessary by 
                        the public housing agency or owner to 
                        enable any member of such family to be 
                        employed.
                 The Secretary shall, by regulation, provide 
                hardship exemptions to the requirements of this 
                subparagraph and subparagraph (C) for impacted 
                families who demonstrate an inability to pay 
                calculated rents because of financial hardship. 
                Such regulations shall include a requirement to 
                notify tenants regarding any changes to the 
                determination of adjusted income pursuant to 
                such subparagraphs based on the determination 
                of the family's claim of financial hardship 
                exemptions required by the preceding sentence. 
                Such regulations shall be promulgated in 
                consultation with tenant organizations, 
                industry participants, and the Secretary of 
                Health and Human Services, with an adequate 
                comment period provided for interested parties.
                  (E) Permissive deductions.--Such additional 
                deductions as a public housing agency may, at 
                its discretion, establish, except that the 
                Secretary shall establish procedures to ensure 
                that such deductions do not materially increase 
                Federal expenditures.
        The Secretary shall annually calculate the amounts of 
        the deductions under subparagraphs (A) and (B), as such 
        amounts may have been previously calculated, by 
        applying an inflationary factor as the Secretary shall, 
        by regulation, establish, except that the actual 
        deduction determined for each year shall be established 
        by rounding such amount to the next lowest multiple of 
        $25.
  (6) Public housing agency.--
          (A) In general.--Except as provided in subparagraph 
        (B), the term ``public housing agency'' means any 
        State, county, municipality, or other governmental 
        entity or public body (or agency or instrumentality 
        thereof) which is authorized to engage in or assist in 
        the development or operation of public housing, or a 
        consortium of such entities or bodies as approved by 
        the Secretary.
          (B) Section 8 program.--For purposes of the program 
        for tenant-based assistance under section 8, such term 
        includes--
                  (i) a consortia of public housing agencies 
                that the Secretary determines has the capacity 
                and capability to administer a program for 
                assistance under such section in an efficient 
                manner;
                  (ii) any other public or private nonprofit 
                entity that, upon the effective date under 
                section 503(a) of the Quality Housing and Work 
                Responsibility Act of 1998, was administering 
                any program for tenant-based assistance under 
                section 8 of this Act (as in effect before the 
                effective date of such Act), pursuant to a 
                contract with the Secretary or a public housing 
                agency; and
                  (iii) with respect to any area in which no 
                public housing agency has been organized or 
                where the Secretary determines that a public 
                housing agency is unwilling or unable to 
                implement a program for tenant-based assistance 
                section 8, or is not performing effectively--
                          (I) the Secretary or another public 
                        or private nonprofit entity that by 
                        contract agrees to receive assistance 
                        amounts under section 8 and enter into 
                        housing assistance payments contracts 
                        with owners and perform the other 
                        functions of public housing agency 
                        under section 8; or
                          (II) notwithstanding any provision of 
                        State or local law, a public housing 
                        agency for another area that contracts 
                        with the Secretary to administer a 
                        program for housing assistance under 
                        section 8, without regard to any 
                        otherwise applicable limitations on its 
                        area of operation.
  (7) The term ``State'' includes the several States, the 
District of Columbia, the Commonwealth of Puerto Rico, the 
territories and possessions of the United States, and the Trust 
Territory of the Pacific Islands.
  (8) The term ``Secretary'' means the Secretary of Housing and 
Urban Development.
  (9) Drug-related criminal activity.--The term ``drug-related 
criminal activity'' means the illegal manufacture, sale, 
distribution, use, or possession with intent to manufacture, 
sell, distribute, or use, of a controlled substance (as such 
term is defined in section 102 of the Controlled Substances 
Act).
  (10) Mixed-finance project.--The term ``mixed-finance 
project'' means a public housing project that meets the 
requirements of section 35.
  (11) Public housing agency plan.--The term ``public housing 
agency plan'' means the plan of a public housing agency 
prepared in accordance with section 5A.
  (12) Capital fund.--The term ``Capital Fund'' means the fund 
established under section 9(d).
  (13) Operating fund.--The term ``Operating Fund'' mean the 
fund established under section 9(e).
  (c) When used in reference to public housing:
  (1) The term ``development'' means any or all undertakings 
necessary for planning, land acquisition, demolition, 
construction, or equipment, in connection with a low-income 
housing project. The term ``development cost'' comprises the 
costs incurred by a public housing agency in such undertakings 
and their necessary financing (including the payment of 
carrying charges), and in otherwise carrying out the 
development of such project, but does not include the costs 
associated with the demolition of or remediation of 
environmental hazards associated with public housing units that 
will not be replaced on the project site, or other 
extraordinary site costs as determined by the Secretary. 
Construction activity in connection with a low-income housing 
project may be confined to the reconstruction, remodeling, or 
repair of existing buildings.
  (2) The term ``operation'' means any or all undertakings 
appropriate for management, operation, services, maintenance, 
security (including the cost of security personnel), or 
financing in connection with a low-income housing project. The 
term also means the financing of tenant programs and services 
for families residing in low-income housing projects, 
particularly where there is maximum feasible participation of 
the tenants in the development and operation of such tenant 
programs and services. As used in this paragraph, the term 
``tenant programs and services'' includes the development and 
maintenance of tenant organizations which participate in the 
management of low-income housing projects; the training of 
tenants to manage and operate such projects and the utilization 
of their services in project management and operation; 
counseling on household management, housekeeping, budgeting, 
money management, child care, and similar matters; advice as to 
resources for job training and placement, education, welfare, 
health, and other community services; services which are 
directly related to meeting tenant needs and providing a 
wholesome living environment; and referral to appropriate 
agencies in the community when necessary for the provision of 
such services. To the maximum extent available and appropriate, 
existing public and private agencies in the community shall be 
used for the provision of such services.
  (3) The term ``acquisition cost'' means the amount prudently 
required to be expended by a public housing agency in acquiring 
property for a low-income housing project.
  (d) Availability of Income Matching Information.--
          (1) Disclosure to pha.--A public housing agency, or 
        the owner responsible for determining the participant's 
        eligibility or level of benefits, shall require any 
        family described in paragraph (2) who receives 
        information regarding income, earnings, wages, or 
        unemployment compensation from the Department of 
        Housing and Urban Development pursuant to income 
        verification procedures of the Department to disclose 
        such information, upon receipt of the information, to 
        the public housing agency that owns or operates the 
        public housing dwelling unit in which such family 
        resides or that provides the housing assistance under 
        this Act on behalf of such family, as applicable, or to 
        the owner responsible for determining the participant's 
        eligibility or level of benefits.
          (2) Families covered.--A family described in this 
        paragraph is a family that resides in a dwelling unit--
                  (A) that is a public housing dwelling unit;
                  (B) for which tenant-based assistance is 
                provided under section 8, or
          (C) for which project-based assistance is provided 
        under section 8, section 202, or section 811.

           *       *       *       *       *       *       *


                  contract provisions and requirements

  Sec. 6. (a) The Secretary may include in any contract for 
loans, contributions, sale, lease, mortgage, or any other 
agreement or instrument made pursuant to this Act, such 
covenants, conditions, or provisions as he may deem necessary 
in order to insure the lower income character of the project 
involved, in a manner consistent with the public housing agency 
plan. Any such contract shall require that, except in the case 
of housing predominantly for elderly or disabled families, 
high-rise elevator projects shall not be provided for families 
with children unless the Secretary makes a determination that 
there is no practical alternative.
  (b)(1) Each contract for loans (other than preliminary loans) 
or contributions for the development, acquisition, or operation 
of public housing shall provide that the total development cost 
of the project on which the computation of any annual 
contributions under this Act may be based may not exceed the 
amount determined under paragraph (2) (for the appropriate 
structure type) unless the Secretary provides otherwise, and in 
any case may not exceed 110 per centum of such amount unless 
the Secretary for good cause determines otherwise.
  (2) For purposes of paragraph (1), the Secretary shall 
determine the total development cost by multiplying the 
construction cost guideline for the project (which shall be 
determined by averaging the current construction costs, as 
listed by not less than 2 nationally recognized residential 
construction cost indices, for publicly bid construction of a 
good and sound quality) by--
          (A) in the case of elevator type structures, 1.6; and
          (B) in the case of nonelevator type structures, 1.75.
  (3) In calculating the total development cost of a project 
under paragraph (2), the Secretary shall consider only capital 
assistance provided by the Secretary to a public housing agency 
that are authorized for use in connection with the development 
of public housing, and shall exclude all other amounts, 
including amounts provided under--
          (A) the HOME investment partnerships program 
        authorized under title II of the Cranston-Gonzalez 
        National Affordable Housing Act; or
          (B) the community development block grants program 
        under title I of the Housing and Community Development 
        Act of 1974.
  (4) The Secretary may restrict the amount of capital funds 
that a public housing agency may use to pay for housing 
construction costs. For purposes of this paragraph, housing 
construction costs include the actual hard costs for the 
construction of units, builders' overhead and profit, utilities 
from the street, and finish landscaping.
  (c) Every contract for contributions shall provide that--
          (1) the Secretary may require the public housing 
        agency to review and revise its maximum income limits 
        if the Secretary determines that changed conditions in 
        the locality make such revision necessary in achieving 
        the purposes of this Act;
          (2) the public housing agency shall determine, and so 
        certify to the Secretary, that each family in the 
        project was admitted in accordance with duly adopted 
        regulations and approved income limits; and the public 
        housing agency shall review the incomes of families 
        living in the project no less frequently than annually;
          (3) the public housing agency shall promptly notify 
        (i) any applicant determined to be ineligible for 
        admission to the project of the basis for such 
        determination and provide the applicant upon request, 
        within a reasonable time after the determination is 
        made, with an opportunity for an informal hearing on 
        such determination, and (ii) any applicant determined 
        to be eligible for admission to the project of the 
        approximate date of occupancy insofar as such date can 
        be reasonably determined;
          (4) the public housing agency shall comply with such 
        procedures and requirements as the Secretary may 
        prescribe to assure that sound management practices 
        will be followed in the operation of the project, 
        including requirements pertaining to--
                  (A) making dwelling units in public housing 
                available for occupancy, which shall provide 
                that the public housing agency [may establish a 
                system for making dwelling units available that 
                provides preference] shall establish a system 
                for making dwelling units available that--
                          (i) shall provide preferences  for 
                        such occupancy to families having 
                        certain characteristics; [each system 
                        of preferences established pursuant to 
                        this subparagraph shall be based]
                          (ii) except as provided in clause 
                        (iii), shall be based  upon local 
                        housing needs and priorities, as 
                        determined by the public housing agency 
                        using generally accepted data sources, 
                        including any information obtained 
                        pursuant to an opportunity for public 
                        comment as provided under section 5A(f) 
                        and under the requirements applicable 
                        to the comprehensive housing 
                        affordability strategy for the relevant 
                        jurisdiction;
                          (iii) except for projects or portions 
                        of projects designated for occupancy 
                        pursuant to section 7(a), shall provide 
                        that the highest preference for 
                        occupancy shall be given to otherwise 
                        eligible children who are in foster 
                        care, have attained an age such that 
                        the provision of foster care for such 
                        child will end by reason of the age of 
                        the child within 6 months, meet the 
                        requirements under clauses (i) and (ii) 
                        of paragraph (1) of the definition of 
                        ``at risk of homelessness'' in section 
                        91.5 of the Secretary's regulations (24 
                        C.F.R. 91.5), as in effect on September 
                        1, 2016, and have agreed to comply with 
                        the requirements under section 39(c); 
                        and
                          (iv) may provide highest preference 
                        for occupancy to, in addition to 
                        eligible children described in clause 
                        (iii), not more than two other types of 
                        families.
                  (B) the establishment of satisfactory 
                procedures designed to assure the prompt 
                payment and collection of rents and the prompt 
                processing of evictions in the case of 
                nonpayment of rent;
                  (C) the establishment of effective tenant-
                management relationships designated to assure 
                the satisfactory standards of tenant security 
                and project maintenance are formulated and that 
                the public housing agency (together with tenant 
                councils where they exist) enforces those 
                standards fully and effectively;
                  (D) the development by local housing 
                authority managements of viable homeownership 
                opportunity programs for low-income families 
                capable of assuming the responsibilities of 
                homeownership;
                  (E) for each agency that receives assistance 
                under this title, the establishment and 
                maintenance of a system of accounting for 
                rental collections and costs (including 
                administrative, utility, maintenance, repair 
                and other operating costs) for each project or 
                operating cost center (as determined by the 
                Secretary), which collections and costs shall 
                be made available to the general public and 
                submitted to the appropriate local public 
                official (as determined by the Secretary); 
                except that the Secretary may permit agencies 
                owning or operating less than 500 units to 
                comply with the requirements of this 
                subparagraph by accounting on an agency-wide 
                basis; and
                  (F) requiring the public housing agency to 
                ensure and maintain compliance with subtitle C 
                of title VI of the Housing and Community 
                Development Act of 1992 and any regulations 
                issued under such subtitle.
  (d) Every contract for contributions with respect to a low-
income housing project shall provide that no contributions by 
the Secretary shall be made available for such project unless 
such project (exclusive of any portion thereof which is not 
assisted by contributions under this Act) is exempt from all 
real and personal property taxes levied or imposed by the 
State, city, county, or other political subdivision; and such 
contract shall require the public housing agency to make 
payments in lieu of taxes equal to 10 per centum of the sum of 
the shelter rents charged in such project, or such lesser 
amount as (i) is prescribed by State law, or (ii) is agreed to 
by the local governing body in its agreement for local 
cooperation with the public housing agency required under 
section 5(e)(2) of this Act, or (iii) is due to failure of a 
local public body or bodies other than the public housing 
agency to perform any obligation under such agreement. If any 
such project is not exempt from all real and personal property 
taxes levied or imposed by the State, city, county, or other 
political subdivision, such contract shall provide, in lieu of 
the requirement for tax exemption and payments in lieu of 
taxes, that no contributions by the Secretary shall be made 
available for such project unless and until the State, city, 
county, or other political subdivision in which such project is 
situated shall contribute, in the form of cash or tax 
remission, the amount by which the taxes paid with respect to 
the project exceed 10 per centum of the shelter rents charged 
in such project.
  (f) Housing Quality Requirements.--
          (1) In general.--Each contract for contributions for 
        a public housing agency shall require that the agency 
        maintain its public housing in a condition that 
        complies with standards which meet or exceed the 
        housing quality standards established under paragraph 
        (2).
          (2) Federal standards.--The Secretary shall establish 
        housing quality standards under this paragraph that 
        ensure that public housing dwelling units are safe and 
        habitable. Such standards shall include requirements 
        relating to habitability, including maintenance, health 
        and sanitation factors, condition, and construction of 
        dwellings, and shall, to the greatest extent 
        practicable, be consistent with the standards 
        established under section 8(o)(8)(B)(i). The Secretary 
        may determine whether the laws, regulations, standards, 
        or codes of any State or local jurisdiction meet or 
        exceed these standards, for purposes of this 
        subsection.
          (3) Annual inspections.--Each public housing agency 
        that owns or operates public housing shall make an 
        annual inspection of each public housing project to 
        determine whether units in the project are maintained 
        in accordance with the requirements under paragraph 
        (1). The agency shall retain the results of such 
        inspections and, upon the request of the Secretary, the 
        Inspector General for the Department of Housing and 
        Urban Development, or any auditor conducting an audit 
        under section 5(h), shall make such results available.
  (g) Every contract for contributions (including contracts 
which amend or supersede contracts previously made) may provide 
that--
          (1) upon the occurrence of a substantial default in 
        respect to the covenants or conditions to which the 
        public housing agency is subject (as such substantial 
        default shall be defined in such contract), the public 
        housing agency shall be obligated at the option of the 
        Secretary either to convey title in any case where, in 
        the determination of the Secretary (which determination 
        shall be final and conclusive), such conveyance of 
        title is necessary to achieve the purposes of this Act, 
        or to deliver to the Secretary possession of the 
        project, as then constituted, to which such contract 
        relates; and
          (2) the Secretary shall be obligated to reconvey or 
        redeliver possession of the project, as constituted at 
        the time of reconveyance or redelivery, to such public 
        housing agency or to its successor (if such public 
        housing agency or a successor exists) upon such terms 
        as shall be prescribed in such contract, and as soon as 
        practicable (i) after the Secretary is satisfied that 
        all defaults with respect to the project have been 
        cured, and that the project will, in order to fulfill 
        the purposes of this Act, thereafter be operated in 
        accordance with the terms of such contract; or (ii) 
        after the termination of the obligation to make annual 
        contributions available unless there are any 
        obligations or covenants of the public housing agency 
        to the Secretary which are then in default. Any prior 
        conveyances and reconveyances or deliveries and 
        redeliveries of possession shall not exhaust the right 
        to require a conveyance or delivery of possession of 
        the project to the Secretary pursuant to subparagraph 
        (1) upon the subsequent occurrence of a substantial 
        default.
Whenever such a contract for annual contributions includes 
provisions which the Secretary in such contract determines are 
in accordance with this subsection, and the portion of the 
annual contribution payable for debt service requirements 
pursuant to such contract has been pledged by the public 
housing agency as security for the payment of the principal and 
interest on any of its obligations, the Secretary 
(notwithstanding any other provisions of this Act) shall 
continue to make such annual contributions available for the 
project so long as any of such obligations remain outstanding, 
and may covenant in such contract that in any event such annual 
contributions shall in each year be at least equal to an amount 
which, together with such income or other funds as are actually 
available from the project for the purpose at the time such 
annual contribution is made, will suffice for the payment of 
all installments, falling due within the next succeeding twelve 
months, of principal and interest on the obligations for which 
the annual contributions provided for in the contract shall 
have been pledged as security. In no case shall such annual 
contributions be in excess of the maximum sum specified in the 
contract involved, nor for longer than the remainder of the 
maximum period fixed by the contract.
  (h) On or after October 1, 1983, the Secretary may enter into 
a contract involving new construction only if the public 
housing agency demonstrates to the satisfaction of the 
Secretary that the cost of new construction in the neighborhood 
where the public housing agency determines the housing is 
needed is less than the cost of acquisition or acquisition and 
rehabilitation in such neighborhood, including any reserve fund 
under subsection (i), would be.
  (i) The Secretary may, upon application by a public housing 
agency in connection with the acquisition of housing for use as 
public housing, establish and set aside a reserve fund in an 
amount not to exceed 30 per centum of the acquisition cost 
which shall be available for use for major repairs to such 
housing.
  (j)(1) The Secretary shall develop and publish in the Federal 
Register indicators to assess the management performance of 
public housing agencies and resident management corporations. 
The indicators shall be established by rule under section 553 
of title 5, United States Code. Such indicators shall enable 
the Secretary to evaluate the performance of public housing 
agencies and resident management corporations in all major 
areas of management operations. The Secretary shall, in 
particular, use the following indicators:
          (A) The number and percentage of vacancies within an 
        agency's inventory, including the progress that an 
        agency has made within the previous 3 years to reduce 
        such vacancies.
          (B) The amount and percentage of funds provided to 
        the public housing agency from the Capital Fund under 
        section 9(d) which remain unobligated by the public 
        housing agency after 3 years.
          (C) The percentage of rents uncollected.
          (D) The utility consumption (with appropriate 
        adjustments to reflect different regions and unit 
        sizes).
          (E) The average period of time that an agency 
        requires to repair and turn-around vacant units.
          (F) The proportion of maintenance work orders 
        outstanding, including any progress that an agency has 
        made during the preceding 3 years to reduce the period 
        of time required to complete maintenance work orders.
          (G) The percentage of units that an agency fails to 
        inspect to ascertain maintenance or modernization needs 
        within such period of time as the Secretary deems 
        appropriate (with appropriate adjustments, if any, for 
        large and small agencies).
          (H) The extent to which the public housing agency--
                  (i) coordinates, promotes, or provides 
                effective programs and activities to promote 
                the economic self-sufficiency of public housing 
                residents; and
                  (ii) provides public housing residents with 
                opportunities for involvement in the 
                administration of the public housing.
          (I) The extent to which the public housing agency--
                  (i) implements effective screening and 
                eviction policies and other anticrime 
                strategies; and
                  (ii) coordinates with local government 
                officials and residents in the project and 
                implementation of such strategies.
          (J) The extent to which the public housing agency is 
        providing acceptable basic housing conditions.
          (K) Any other factors as the Secretary deems 
        appropriate.
  (2)(A)(i) The Secretary shall, under the rulemaking 
procedures under section 553 of title 5, United States Code, 
establish procedures for designating troubled public housing 
agencies, which procedures shall include identification of 
serious and substantial failure to perform as measured by the 
performance indicators specified under paragraph (1) and such 
other factors as the Secretary may deem to be appropriate. Such 
procedures shall provide that an agency that fails on a 
widespread basis to provide acceptable basic housing conditions 
for its residents shall be designated as a troubled public 
housing agency. The Secretary may use a simplified set of 
indicators for public housing agencies with less than 250 
public housing units. The Secretary shall also designate, by 
rule under section 553 of title 5, United States Code, agencies 
that are troubled with respect to the program for assistance 
from the Capital Fund under section 9(d).
  (ii) The Secretary may also, in consultation with national 
organizations representing public housing agencies and public 
officials (as the Secretary determines appropriate), identify 
and commend public housing agencies that meet the performance 
standards established under paragraph (1) in an exemplary 
manner.
  (iii) The Secretary shall establish procedures for public 
housing agencies to appeal designation as a troubled agency 
(including designation as a troubled agency for purposes of the 
program for assistance from the Capital Fund under section 
9(d)), to petition for removal of such designation, and to 
appeal any refusal to remove such designation.
  (B)(i) Upon designating a public housing agency with more 
than 250 units as troubled pursuant to subparagraph (A) and 
determining that an assessment under this subparagraph will not 
duplicate any comparable and recent review, the Secretary shall 
provide for an on-site, independent assessment of the 
management of the agency.
  (ii) To the extent the Secretary deems appropriate (taking 
into account an agency's performance under the indicators 
specified under paragraph (1)), the assessment team shall also 
consider issues relating to the agency's resident population 
and physical inventory, including the extent to which (I) the 
agency's comprehensive plan prepared pursuant to section 14 
adequately and appropriately addresses the rehabilitation needs 
of the agency's inventory, (II) residents of the agency are 
involved in and informed of significant management decisions, 
and (III) any projects in the agency's inventory are severely 
distressed and eligible for assistance pursuant to section 24.
  (iii) An independent assessment under this subparagraph shall 
be carried out by a team of knowledgeable individuals selected 
by the Secretary (referred to in this section as the 
``assessment team'') with expertise in public housing and real 
estate management. In conducting an assessment, the assessment 
team shall consult with the residents and with public and 
private entities in the jurisdiction in which the public 
housing is located. The assessment team shall provide to the 
Secretary and the public housing agency a written report, which 
shall contain, at a minimum, recommendations for such 
management improvements as are necessary to eliminate or 
substantially remedy existing deficiencies.
  (C) The Secretary shall seek to enter into an agreement with 
each troubled public housing agency, after reviewing the report 
submitted pursuant to subparagraph (B) (if applicable) and 
consulting with the agency's assessment team.
To the extent the Secretary deems appropriate (taking into 
account an agency's performance under the indicators specified 
under paragraph (1)), such agreement shall also set forth a 
plan for enhancing resident involvement in the management of 
the public housing agency. Such agreement shall set forth--
          (i) targets for improving performance as measured by 
        the performance indicators specified under paragraph 
        (1) and other requirements within a specified period of 
        time;
          (ii) strategies for meeting such targets, including a 
        description of the technical assistance that the 
        Secretary will make available to the agency; and
          (iii) incentives or sanctions for effective 
        implementation of such strategies, which may include 
        any constraints on the use of funds that the Secretary 
        determines are appropriate.
The Secretary and the public housing agency shall, to the 
maximum extent practicable, seek the assistance of local public 
and private entities in carrying out the agreement.
          (D) The Secretary shall apply the provisions of this 
        paragraph to resident management corporations as well 
        as public housing agencies.
  (3)(A) Notwithstanding any other provision of law or of any 
contract for contributions, upon the occurrence of events or 
conditions that constitute a substantial default by a public 
housing agency with respect to the covenants or conditions to 
which the public housing agency is subject or an agreement 
entered into under paragraph (2), the Secretary may--
          (i) solicit competitive proposals from other public 
        housing agencies and private housing management agents 
        which (I) in the discretion of the Secretary, may be 
        selected by existing public housing residents through 
        administrative procedures established by the Secretary, 
        and (II) if appropriate, shall provide for such agents 
        to manage all, or part, of the housing administered by 
        the public housing agency or all or part of the other 
        programs of the agency;
          (ii) petition for the appointment of a receiver 
        (which may be another public housing agency or a 
        private management corporation) of the public housing 
        agency to any district court of the United States or to 
        any court of the State in which the real property of 
        the public housing agency is situated, that is 
        authorized to appoint a receiver for the purposes and 
        having the powers prescribed in this subsection;
          (iii) solicit competitive proposals from other public 
        housing agencies and private entities with experience 
        in construction management in the eventuality that such 
        agencies or firms may be needed to oversee 
        implementation of assistance made available from the 
        Capital Fund under section 9(d) for the housing; and
          (iv) take possession of all or part of the public 
        housing agency, including all or part of any project or 
        program of the agency, including any project or program 
        under any other provision of this title; and
          (v) require the agency to make other arrangements 
        acceptable to the Secretary and in the best interests 
        of the public housing residents and families assisted 
        under section 8 for managing all, or part, of the 
        public housing administered by the agency or of the 
        programs of the agency.
Residents of a public housing agency designated as troubled 
pursuant to paragraph (2)(A) may petition the Secretary in 
writing to take 1 or more of the actions referred to in this 
subparagraph. The Secretary shall respond to such petitions in 
a timely manner with a written description of the actions, if 
any, the Secretary plans to take and, where applicable, the 
reasons why such actions differ from the course proposed by the 
residents.
  (B)(i) If a public housing agency is identified as troubled 
under this subsection, the Secretary shall notify the agency of 
the troubled status of the agency.
  (ii)(I) Upon the expiration of the 1-year period beginning on 
the later of the date on which the agency receives initial 
notice from the Secretary of the troubled status of the agency 
under clause (i) and the date of the enactment of the Quality 
Housing and Work Responsibility Act of 1998, the agency shall 
improve its performance, as measured by the performance 
indicators established pursuant to paragraph (1), by at least 
50 percent of the difference between the most recent 
performance measurement and the measurement necessary to remove 
that agency's designation as troubled.
  (II) Upon the expiration of the 2-year period beginning on 
the later of the date on which the agency receives initial 
notice from the Secretary of the troubled status of the agency 
under clause (i) and the date of the enactment of the Quality 
Housing and Work Responsibility Act of 1998, the agency shall 
improve its performance, as measured by the performance 
indicators established pursuant to paragraph (1), such that the 
agency is no longer designated as troubled.
  (III) In the event that a public housing agency designated as 
troubled under this subsection fails to comply with the 
requirements set forth in subclause (I) or (II), the Secretary 
shall--
          (aa) in the case of a troubled public housing agency 
        with 1,250 or more units, petition for the appointment 
        of a receiver pursuant to subparagraph (A)(ii); or
          (bb) in the case of a troubled public housing agency 
        with fewer than 1,250 units, either petition for the 
        appointment of a receiver pursuant to subparagraph 
        (A)(ii), or take possession of the public housing 
        agency (including all or part of any project or program 
        of the agency) pursuant to subparagraph (A)(iv) and 
        appoint, on a competitive or noncompetitive basis, an 
        individual or entity as an administrative receiver to 
        assume the responsibilities of the Secretary for the 
        administration of all or part of the public housing 
        agency (including all or part of any project or program 
        of the agency).
This subparagraph shall not be construed to limit the courses 
of action available to the Secretary under subparagraph (A).
  (IV) During the period between the date on which a petition 
is filed under subclause (III)(aa) and the date on which a 
receiver assumes responsibility for the management of the 
public housing agency under such subclause, the Secretary may 
take possession of the public housing agency (including all or 
part of any project or program of the agency) pursuant to 
subparagraph (A)(iv) and may appoint, on a competitive or 
noncompetitive basis, an individual or entity as an 
administrative receiver to assume the responsibilities of the 
Secretary for the administration of all or part of the public 
housing agency (including all or part of any project or program 
of the agency).
  (C) If a receiver is appointed pursuant to subparagraph 
(A)(ii), in addition to the powers accorded by the court 
appointing the receiver, the receiver--
          (i) may abrogate any contract to which the United 
        States or an agency of the United States is not a party 
        that, in the receiver's written determination (which 
        shall include the basis for such determination), 
        substantially impedes correction of the substantial 
        default, but only after the receiver determines that 
        reasonable efforts to renegotiate such contract have 
        failed;
          (ii) may demolish and dispose of all or part of the 
        assets of the public housing agency (including all or 
        part of any project of the agency) in accordance with 
        section 18, including disposition by transfer of 
        properties to resident-supported nonprofit entities;
          (iii) if determined to be appropriate by the 
        Secretary, may seek the establishment, as permitted by 
        applicable State and local law, of 1 or more new public 
        housing agencies;
          (iv) if determined to be appropriate by the 
        Secretary, may seek consolidation of all or part of the 
        agency (including all or part of any project or program 
        of the agency), as permitted by applicable State and 
        local laws, into other well-managed public housing 
        agencies with the consent of such well-managed 
        agencies; and
          (v) shall not be required to comply with any State or 
        local law relating to civil service requirements, 
        employee rights (except civil rights), procurement, or 
        financial or administrative controls that, in the 
        receiver's written determination (which shall include 
        the basis for such determination), substantially 
        impedes correction of the substantial default.
  (D)(i) If, pursuant to subparagraph (A)(iv), the Secretary 
takes possession of all or part of the public housing agency, 
including all or part of any project or program of the agency, 
the Secretary--
          (I) may abrogate any contract to which the United 
        States or an agency of the United States is not a party 
        that, in the written determination of the Secretary 
        (which shall include the basis for such determination), 
        substantially impedes correction of the substantial 
        default, but only after the Secretary determines that 
        reasonable efforts to renegotiate such contract have 
        failed;
          (II) may demolish and dispose of all or part of the 
        assets of the public housing agency (including all or 
        part of any project of the agency) in accordance with 
        section 18, including disposition by transfer of 
        properties to resident-supported nonprofit entities;
          (III) may seek the establishment, as permitted by 
        applicable State and local law, of 1 or more new public 
        housing agencies;
          (IV) may seek consolidation of all or part of the 
        agency (including all or part of any project or program 
        of the agency), as permitted by applicable State and 
        local laws, into other well-managed public housing 
        agencies with the consent of such well-managed 
        agencies;
          (V) shall not be required to comply with any State or 
        local law relating to civil service requirements, 
        employee rights (except civil rights), procurement, or 
        financial or administrative controls that, in the 
        Secretary's written determination (which shall include 
        the basis for such determination), substantially 
        impedes correction of the substantial default; and
          (VI) shall, without any action by a district court of 
        the United States, have such additional authority as a 
        district court of the United States would have the 
        authority to confer upon a receiver to achieve the 
        purposes of the receivership.
  (ii) If, pursuant to subparagraph (B)(ii)(III)(bb), the 
Secretary appoints an administrative receiver to assume the 
responsibilities of the Secretary for the administration of all 
or part of the public housing agency (including all or part of 
any project or program of the agency), the Secretary may 
delegate to the administrative receiver any or all of the 
powers given the Secretary by this subparagraph, as the 
Secretary determines to be appropriate and subject to clause 
(iii).
  (iii) An administrative receiver may not take an action 
described in subclause (III) or (IV) of clause (i) unless the 
Secretary first approves an application by the administrative 
receiver to authorize such action.
  (E) The Secretary may make available to receivers and other 
entities selected or appointed pursuant to this paragraph such 
assistance as the Secretary determines in the discretion of the 
Secretary is necessary and available to remedy the substantial 
deterioration of living conditions in individual public housing 
projects or other related emergencies that endanger the health, 
safety, and welfare of public housing residents or families 
assisted under section 8. A decision made by the Secretary 
under this paragraph shall not be subject to review in any 
court of the United States, or in any court of any State, 
territory, or possession of the United States.
  (F) In any proceeding under subparagraph (A)(ii), upon a 
determination that a substantial default has occurred and 
without regard to the availability of alternative remedies, the 
court shall appoint a receiver to conduct the affairs of all or 
part of the public housing agency in a manner consistent with 
this Act and in accordance with such further terms and 
conditions as the court may provide. The receiver appointed may 
be another public housing agency, a private management 
corporation, or any other person or appropriate entity. The 
court shall have power to grant appropriate temporary or 
preliminary relief pending final disposition of the petition by 
the Secretary.
  (G) The appointment of a receiver pursuant to this paragraph 
may be terminated, upon the petition of any party, when the 
court determines that all defaults have been cured or the 
public housing agency is capable again of discharging its 
duties.
  (H) If the Secretary (or an administrative receiver appointed 
by the Secretary) takes possession of a public housing agency 
(including all or part of any project or program of the 
agency), or if a receiver is appointed by a court, the 
Secretary or receiver shall be deemed to be acting not in the 
official capacity of that person or entity, but rather in the 
capacity of the public housing agency, and any liability 
incurred, regardless of whether the incident giving rise to 
that liability occurred while the Secretary or receiver was in 
possession of all or part of the public housing agency 
(including all or part of any project or program of the 
agency), shall be the liability of the public housing agency.
  (4) Sanctions for improper use of amounts.--
          (A) In general.--In addition to any other actions 
        authorized under this Act, if the Secretary finds that 
        a public housing agency receiving assistance amounts 
        under section 9 for public housing has failed to comply 
        substantially with any provision of this Act relating 
        to the public housing program, the Secretary may--
                  (i) terminate assistance payments under this 
                section 9 to the agency;
                  (ii) withhold from the agency amounts from 
                the total allocations for the agency pursuant 
                to section 9;
                  (iii) reduce the amount of future assistance 
                payments under section 9 to the agency by an 
                amount equal to the amount of such payments 
                that were not expended in accordance with this 
                Act;
                  (iv) limit the availability of assistance 
                amounts provided to the agency under section 9 
                to programs, projects, or activities not 
                affected by such failure to comply;
                  (v) withhold from the agency amounts 
                allocated for the agency under section 8; or
                  (vi) order other corrective action with 
                respect to the agency.
          (B) Termination of compliance action.--If the 
        Secretary takes action under subparagraph (A) with 
        respect to a public housing agency, the Secretary 
        shall--
                  (i) in the case of action under subparagraph 
                (A)(i), resume payments of assistance amounts 
                under section 9 to the agency in the full 
                amount of the total allocations under section 9 
                for the agency at the time that the Secretary 
                first determines that the agency will comply 
                with the provisions of this Act relating to the 
                public housing program;
                  (ii) in the case of action under clause (ii) 
                or (v) of subparagraph (A), make withheld 
                amounts available as the Secretary considers 
                appropriate to ensure that the agency complies 
                with the provisions of this Act relating to 
                such program;
                  (iii) in the case of action under 
                subparagraph (A)(iv), release such restrictions 
                at the time that the Secretary first determines 
                that the agency will comply with the provisions 
                of this Act relating to such program; or
                  (iv) in the case of action under subparagraph 
                (vi), cease such action at the time that the 
                Secretary first determines that the agency will 
                comply with the provisions of this Act relating 
                to such program.
  (5) The Secretary shall submit to the Congress annually, as a 
part of the report of the Secretary under section 8 of the 
Department of Housing and Urban Development Act, a report 
that--
          (A) identifies the public housing agencies that have 
        been designated as troubled under paragraph (2);
          (B) describes the grounds on which such public 
        housing agencies were designated as troubled and 
        continue to be so designated;
          (C) describes the agreements that have been entered 
        into with such agencies under such paragraph;
          (D) describes the status of progress under such 
        agreements;
          (E) describes any action that has been taken in 
        accordance with paragraph (3); and
          (F) describes the status of any public housing agency 
        designated as troubled with respect to the program for 
        assistance from the Capital Fund under section 9(d) and 
        specifies the amount of assistance the agency received 
        under such program.
  (6)(A) To the extent that the Secretary determines such 
action to be necessary in order to ensure the accuracy of any 
certification made under this section, the Secretary shall 
require an independent auditor to review documentation or other 
information maintained by a public housing agency pursuant to 
this section to substantiate each certification submitted by 
the agency or corporation relating to the performance of that 
agency or corporation.
  (B) The Secretary may withhold, from assistance otherwise 
payable to the agency or corporation under section 9, amounts 
sufficient to pay for the reasonable costs of any review under 
this paragraph.
  (7) The Secretary shall apply the provisions of this 
subsection to resident management corporations in the same 
manner as applied to public housing agencies.
  (k) The Secretary shall by regulation require each public 
housing agency receiving assistance under this Act to establish 
and implement an administrative grievance procedure under which 
tenants will--
          (1) be advised of the specific grounds of any 
        proposed adverse public housing agency action;
          (2) have an opportunity for a hearing before an 
        impartial party upon timely request within any period 
        applicable under subsection (l);
          (3) have an opportunity to examine any documents or 
        records or regulations related to the proposed action;
          (4) be entitled to be represented by another person 
        of their choice at any hearing;
          (5) be entitled to ask questions of witnesses and 
        have others make statements on their behalf; and
          (6) be entitled to receive a written decision by the 
        public housing agency on the proposed action.
For any grievance concerning an eviction or termination of 
tenancy that involves any activity that threatens the health, 
safety, or right to peaceful enjoyment of the premises of other 
tenants or employees of the public housing agency or any 
violent or drug-related criminal activity on or off such 
premises, or any activity resulting in a felony conviction, the 
agency may (A) establish an expedited grievance procedure as 
the Secretary shall provide by rule under section 553 of title 
5, United States Code, or (B) exclude from its grievance 
procedure any such grievance, in any jurisdiction which 
requires that prior to eviction, a tenant be given a hearing in 
court which the Secretary determines provides the basic 
elements of due process (which the Secretary shall establish by 
rule under section 553 of title 5, United States Code). Such 
elements of due process shall not include a requirement that 
the tenant be provided an opportunity to examine relevant 
documents within the possession of the public housing agency. 
The agency shall provide to the tenant a reasonable 
opportunity, prior to hearing or trial, to examine any relevant 
documents, records, or regulations directly related to the 
eviction or termination.
  (l) Each public housing agency shall utilize leases which--
          (1) have a term of 12 months and shall be 
        automatically renewed for all purposes except for 
        noncompliance with the requirements under section 12(c) 
        (relating to community service requirements); except 
        that nothing in this title shall prevent a resident 
        from seeking timely redress in court for failure to 
        renew based on such noncompliance;
          (2) do not contain unreasonable terms and conditions;
          (3) obligate the public housing agency to maintain 
        the project in a decent, safe, and sanitary condition;
          (4) require the public housing agency to give 
        adequate written notice of termination of the lease 
        which shall not be less than--
                  (A) a reasonable period of time, but not to 
                exceed 30 days--
                          (i) if the health or safety of other 
                        tenants, public housing agency 
                        employees, or persons residing in the 
                        immediate vicinity of the premises is 
                        threatened; or
                          (ii) in the event of any drug-related 
                        or violent criminal activity or any 
                        felony conviction;
                  (B) 14 days in the case of nonpayment of 
                rent; and
                  (C) 30 days in any other case, except that if 
                a State or local law provides for a shorter 
                period of time, such shorter period shall 
                apply;
          (5) require that the public housing agency may not 
        terminate the tenancy except for serious or repeated 
        violation of the terms or conditions of the lease or 
        for other good cause;
          (6) provide that any criminal activity that threatens 
        the health, safety, or right to peaceful enjoyment of 
        the premises by other tenants or any drug-related 
        criminal activity on or off such premises, engaged in 
        by a public housing tenant, any member of the tenant's 
        household, or any guest or other person under the 
        tenant's control, shall be cause for termination of 
        tenancy;
          (7) specify that with respect to any notice of 
        eviction or termination, notwithstanding any State law, 
        a public housing tenant shall be informed of the 
        opportunity, prior to any hearing or trial, to examine 
        any relevant documents, records or regulations directly 
        related to the eviction or termination;
          (7) provide that any occupancy in violation of 
        section 576(b) of the Quality Housing and Work 
        Responsibility Act of 1998 (relating to ineligibility 
        of illegal drug users and alcohol abusers) or the 
        furnishing of any false or misleading information 
        pursuant to section 577 of such Act (relating to 
        termination of tenancy and assistance for illegal drug 
        users and alcohol abusers) shall be cause for 
        termination of tenancy;
          (9) provide that it shall be cause for immediate 
        termination of the tenancy of a public housing tenant 
        if such tenant--
                  (A) is fleeing to avoid prosecution, or 
                custody or confinement after conviction, under 
                the laws of the place from which the individual 
                flees, for a crime, or attempt to commit a 
                crime, which is a felony under the laws of the 
                place from which the individual flees, or 
                which, in the case of the State of New Jersey, 
                is a high misdemeanor under the laws of such 
                State; or
          (2) is violating a condition of probation or parole 
        imposed under Federal or State law.
For purposes of paragraph (5), the term ``drug-related criminal 
activity'' means the illegal manufacture, sale, distribution, 
use, or possession with intent to manufacture, sell, 
distribute, or use, of a controlled substance (as defined in 
section 102 of the Controlled Substances Act (21 U.S.C. 802)).
  (m) The Secretary shall not impose any unnecessarily 
duplicative or burdensome reporting requirements on tenants or 
public housing agencies assisted under this Act.
  (n) When a public housing agency evicts an individual or 
family from a dwelling unit for engaging in criminal activity, 
including drug-related criminal activity, the public housing 
agency shall notify the local post office serving that dwelling 
unit that such individual or family is no longer residing in 
the dwelling unit.
  (o) In providing housing in low-income housing projects, each 
public housing agency may coordinate with any local public 
agencies involved in providing for the welfare of children to 
make available dwelling units to--
          (1) families identified by the agencies as having a 
        lack of adequate housing that is a primary factor--
                  (A) in the imminent placement of a child in 
                foster care; or
                  (B) in preventing the discharge of a child 
                from foster care and reunification with his or 
                her family; and
          (2) youth, upon discharge from foster care, in cases 
        in which return to the family or extended family or 
        adoption is not available.
  (q) Availability of Records.--
          (1) In general.--
                  (A) Provision of information.--
                Notwithstanding any other provision of law, 
                except as provided in subparagraph (C), the 
                National Crime Information Center, police 
                departments, and other law enforcement agencies 
                shall, upon request, provide information to 
                public housing agencies regarding the criminal 
                conviction records of adult applicants for, or 
                tenants of, public housing for purposes of 
                applicant screening, lease enforcement, and 
                eviction.
                  (B) Requests by owners of project-based 
                section 8 housing.--A public housing agency may 
                make a request under subparagraph (A) for 
                information regarding applicants for, or 
                tenants of, housing that is provided project-
                based assistance under section 8 only if the 
                housing is located within the jurisdiction of 
                the agency and the owner of such housing has 
                requested that the agency obtain such 
                information on behalf of the owner. Upon such a 
                request by the owner, the agency shall make a 
                request under subparagraph (A) for the 
                information. The agency may not make such 
                information available to the owner but shall 
                perform determinations for the owner regarding 
                screening, lease enforcement, and eviction 
                based on criteria supplied by the owner.
                  (C) Exception.--A law enforcement agency 
                described in subparagraph (A) shall provide 
                information under this paragraph relating to 
                any criminal conviction of a juvenile only to 
                the extent that the release of such information 
                is authorized under the law of the applicable 
                State, tribe, or locality.
          (2) Opportunity to dispute.--Before an adverse action 
        is taken with regard to assistance under this title on 
        the basis of a criminal record, the public housing 
        agency shall provide the tenant or applicant with a 
        copy of the criminal record and an opportunity to 
        dispute the accuracy and relevance of that record.
          (3) Fees.--A public housing agency may be charged a 
        reasonable fee for information provided under paragraph 
        (1). In the case of a public housing agency obtaining 
        information pursuant to paragraph (1)(B) for another 
        owner of housing, the agency may pass such fee on to 
        the owner initiating the request and may charge 
        additional reasonable fees for making the request on 
        behalf of the owner and taking other actions for owners 
        under this subsection.
          (4) Records management.--Each public housing agency 
        shall establish and implement a system of records 
        management that ensures that any criminal record 
        received by the public housing agency is--
                  (A) maintained confidentially;
                  (B) not misused or improperly disseminated; 
                and
                  (C) destroyed, once the purpose for which the 
                record was requested has been accomplished.
          (5) Confidentiality.--A public housing agency 
        receiving information under this subsection may use 
        such information only for the purposes provided in this 
        subsection and such information may not be disclosed to 
        any person who is not an officer, employee, or 
        authorized representative of the agency and who has a 
        job-related need to have access to the information in 
        connection with admission of applicants, eviction of 
        tenants, or termination of assistance. For judicial 
        eviction proceedings, disclosures may be made to the 
        extent necessary. The Secretary shall, by regulation, 
        establish procedures necessary to ensure that 
        information provided under this subsection to a public 
        housing agency is used, and confidentiality of such 
        information is maintained, as required under this 
        subsection. The Secretary shall establish standards for 
        confidentiality of information obtained under this 
        subsection by public housing agencies on behalf of 
        owners.
          (6) Penalty.--Any person who knowingly and willfully 
        requests or obtains any information concerning an 
        applicant for, or tenant of, covered housing assistance 
        pursuant to the authority under this subsection under 
        false pretenses, or any person who knowingly and 
        willfully discloses any such information in any manner 
        to any individual not entitled under any law to receive 
        it, shall be guilty of a misdemeanor and fined not more 
        than $5,000. The term ``person'' as used in this 
        paragraph include an officer, employee, or authorized 
        representative of any public housing agency.
          (7) Civil Action.--Any applicant for, or tenant of, 
        covered housing assistance affected by (A) a negligent 
        or knowing disclosure of information referred to in 
        this subsection about such person by an officer, 
        employee, or authorized representative of any public 
        housing agency, which disclosure is not authorized by 
        this subsection, or (B) any other negligent or knowing 
        action that is inconsistent with this subsection, may 
        bring a civil action for damages and such other relief 
        as may be appropriate against any public housing agency 
        responsible for such unauthorized action. The district 
        court of the United States in the district in which the 
        affected applicant or tenant resides, in which such 
        unauthorized action occurred, or in which the officer, 
        employee, or representative alleged to be responsible 
        for any such unauthorized action resides, shall have 
        jurisdiction in such matters. Appropriate relief that 
        may be ordered by such district courts shall include 
        reasonable attorney's fees and other litigation costs.
          (8) Definitions.--For purposes of this subsection, 
        the following definitions shall apply:
                  (A) Adult.--The term ``adult'' means a person 
                who is 18 years of age or older, or who has 
                been convicted of a crime as an adult under any 
                Federal, State, or tribal law.
                  (B) Covered housing assistance.--The term 
                ``covered housing assistance'' means--
                          (i) a dwelling unit in public 
                        housing;
                          (ii) a dwelling unit in housing that 
                        is provided project-based assistance 
                        under section 8, including new 
                        construction and substantial 
                        rehabilitation projects; and
                          (iii) tenant-based assistance under 
                        section 8.
                  (C) Owner.--The term ``owner'' means, with 
                respect to covered housing assistance described 
                in subparagraph (B)(ii), the entity or private 
                person (including a cooperative or public 
                housing agency) that has the legal right to 
                lease or sublease dwelling units in the housing 
                assisted.
  (r) Site-Based Waiting Lists.--
          (1) Authority.--A public housing agency may establish 
        procedures for maintaining waiting lists for admissions 
        to public housing projects of the agency, which may 
        include (notwithstanding any other law, regulation, 
        handbook, or notice to the contrary) a system of site-
        based waiting lists under which applicants may apply 
        directly at or otherwise designate the project or 
        projects in which they seek to reside. All such 
        procedures shall comply with all provisions of title VI 
        of the Civil Rights Act of 1964, the Fair Housing Act, 
        and other applicable civil rights laws.
          (2) Notice.--Any system described in paragraph (1) 
        shall provide for the full disclosure by the public 
        housing agency to each applicant of any option 
        available to the applicant in the selection of the 
        project in which to reside.
  (s) Authority To Require Access to Criminal Records.--A 
public housing agency may require, as a condition of providing 
admission to the public housing program or assisted housing 
program under the jurisdiction of the public housing agency, 
that each adult member of the household provide a signed, 
written authorization for the public housing agency to obtain 
records described in subsection (q)(1) regarding such member of 
the household from the National Crime Information Center, 
police departments, and other law enforcement agencies.
  (t) Obtaining Information From Drug Abuse Treatment 
Facilities.--
          (1) Authority.--Notwithstanding any other provision 
        of law other than the Public Health Service Act (42 
        U.S.C. 201 et seq.), a public housing agency may 
        require each person who applies for admission to public 
        housing to sign one or more forms of written consent 
        authorizing the agency to receive information from a 
        drug abuse treatment facility that is solely related to 
        whether the applicant is currently engaging in the 
        illegal use of a controlled substance.
          (2) Confidentiality of applicant's records.--
                  (A) Limitation on information requested.--In 
                a form of written consent, a public housing 
                agency may request only whether the drug abuse 
                treatment facility has reasonable cause to 
                believe that the applicant is currently 
                engaging in the illegal use of a controlled 
                substance.
                  (B) Records management.--Each public housing 
                agency that receives information under this 
                subsection from a drug abuse treatment facility 
                shall establish and implement a system of 
                records management that ensures that any 
                information received by the public housing 
                agency under this subsection--
                          (i) is maintained confidentially in 
                        accordance with section 543 of the 
                        Public Health Service Act (12 U.S.C. 
                        290dd-2);
                          (ii) is not misused or improperly 
                        disseminated; and
                          (iii) is destroyed, as applicable--
                                  (I) not later than 5 business 
                                days after the date on which 
                                the public housing agency gives 
                                final approval for an 
                                application for admission; or
                                  (II) if the public housing 
                                agency denies the application 
                                for admission, in a timely 
                                manner after the date on which 
                                the statute of limitations for 
                                the commencement of a civil 
                                action from the applicant based 
                                upon that denial of admission 
                                has expired.
                  (C) Expiration of written consent.--In 
                addition to the requirements of subparagraph 
                (B), an applicant's signed written consent 
                shall expire automatically after the public 
                housing agency has made a final decision to 
                either approve or deny the applicant's 
                application for admittance to public housing.
          (3) Prohibition of discriminatory treatment of 
        applicants.--
                  (A) Forms signed.--A public housing agency 
                may only require an applicant for admission to 
                public housing to sign one or more forms of 
                written consent under this subsection if the 
                public housing agency requires all such 
                applicants to sign the same form or forms of 
                written consent.
                  (B) Circumstances of inquiry.--A public 
                housing agency may only make an inquiry to a 
                drug abuse treatment facility under this 
                subsection if--
                          (i) the public housing agency makes 
                        the same inquiry with respect to all 
                        applicants; or
                          (ii) the public housing agency only 
                        makes the same inquiry with respect to 
                        each and every applicant with respect 
                        to whom--
                                  (I) the public housing agency 
                                receives information from the 
                                criminal record of the 
                                applicant that indicates 
                                evidence of a prior arrest or 
                                conviction; or
                                  (II) the public housing 
                                agency receives information 
                                from the records of prior 
                                tenancy of the applicant that 
                                demonstrates that the 
                                applicant--
                                          (aa) engaged in the 
                                        destruction of 
                                        property;
                                          (bb) engaged in 
                                        violent activity 
                                        against another person; 
                                        or
                                          (cc) interfered with 
                                        the right of peaceful 
                                        enjoyment of the 
                                        premises of another 
                                        tenant.
          (4) Fee permitted.--A drug abuse treatment facility 
        may charge a public housing agency a reasonable fee for 
        information provided under this subsection.
          (5) Disclosure permitted by treatment facilities.--A 
        drug abuse treatment facility shall not be liable for 
        damages based on any information required to be 
        disclosed pursuant to this subsection if such 
        disclosure is consistent with section 543 of the Public 
        Health Service Act (42 U.S.C. 290dd-2).
          (6) Option to not request information.--A public 
        housing agency shall not be liable for damages based on 
        its decision not to require each person who applies for 
        admission to public housing to sign one or more forms 
        of written consent authorizing the public housing 
        agency to receive information from a drug abuse 
        treatment facility under this subsection.
          (7) Definitions.--For purposes of this subsection, 
        the following definitions shall apply:
                  (A) Drug abuse treatment facility.--The term 
                ``drug abuse treatment facility'' means an 
                entity that--
                          (i) is--
                                  (I) an identified unit within 
                                a general medical care 
                                facility; or
                                  (II) an entity other than a 
                                general medical care facility; 
                                and
                          (ii) holds itself out as providing, 
                        and provides, diagnosis, treatment, or 
                        referral for treatment with respect to 
                        the illegal use of a controlled 
                        substance.
                  (B) Controlled substance.--The term 
                ``controlled substance'' has the meaning given 
                the term in section 102 of the Controlled 
                Substances Act (21 U.S.C. 802).
                  (C) Currently engaging in the illegal use of 
                a controlled substance.--The term ``currently 
                engaging in the illegal use of a controlled 
                substance'' means the illegal use of a 
                controlled substance that occurred recently 
                enough to justify a reasonable belief that an 
                applicant's illegal use of a controlled 
                substance is current or that continuing illegal 
                use of a controlled substance by the applicant 
                is a real and ongoing problem.
          (8) Effective date.--This subsection shall take 
        effect upon enactment and without the necessity of 
        guidance from, or any regulation issued by, the 
        Secretary.

           *       *       *       *       *       *       *


                    lower income housing assistance

  Sec. 8. (a) For the purpose of aiding lower-income families 
in obtaining a decent place to live and of promoting 
economically mixed housing, assistance payments may be made 
with respect to existing housing in accordance with the 
provisions of this section.
  (b) Other Existing Housing Programs.--(1) In general.--The 
Secretary is authorized to enter into annual contributions 
contracts with public housing agencies pursuant to which such 
agencies may enter into contracts to make assistance payments 
to owners of existing dwelling units in accordance with this 
section. In areas where no public housing agency has been 
organized or where the Secretary determines that a public 
housing agency is unable to implement the provisions of this 
section, the Secretary is authorized to enter into such 
contracts and to perform the other functions assigned to a 
public housing agency by this section.
  (2) The Secretary is authorized to enter into annual 
contributions contracts with public housing agencies for the 
purpose of replacing public housing transferred in accordance 
with title III of this Act. Each contract entered into under 
this subsection shall be for a term of not more than 60 months.
  (c)(1)(A) An assistance contract entered into pursuant to 
this section shall establish the maximum monthly rent 
(including utilities and all maintenance and management 
charges) which the owner is entitled to receive for each 
dwelling unit with respect to which such assistance payments 
are to be made. The maximum monthly rent shall not exceed by 
more than 10 per centum the fair market rental established by 
the Secretary periodically but not less than annually for 
existing or newly constructed rental dwelling units of various 
sizes and types in the market area suitable for occupancy by 
persons assisted under this section, except that the maximum 
monthly rent may exceed the fair market rental (A) by more than 
10 but not more than 20 per centum where the Secretary 
determines that special circumstances warrant such higher 
maximum rent or that such higher rent is necessary to the 
implementation of a housing strategy as defined in section 105 
of the Cranston-Gonzalez National Affordable Housing Act, or 
(B) by such higher amount as may be requested by a tenant and 
approved by the public housing agency in accordance with 
paragraph (3)(B). In the case of newly constructed and 
substantially rehabilitated units, the exception in the 
preceding sentence shall not apply to more than 20 per centum 
of the total amount of authority to enter into annual 
contributions contracts for such units which is allocated to an 
area and obligated with respect to any fiscal year beginning on 
or after October 1, 1980. Each fair market rental in effect 
under this subsection shall be adjusted to be effective on 
October 1 of each year to reflect changes, based on the most 
recent available data trended so the rentals will be current 
for the year to which they apply, of rents for existing or 
newly constructed rental dwelling units, as the case may be, of 
various sizes and types in the market area suitable for 
occupancy by persons assisted under this section. 
Notwithstanding any other provision of this section, after the 
date of enactment of the Housing and Community Development Act 
of 1977, the Secretary shall prohibit high-rise elevator 
projects for families with children unless there is no 
practical alternative. If units assisted under this section are 
exempt from local rent control while they are so assisted or 
otherwise, the maximum monthly rent for such units shall be 
reasonable in comparison with other units in the market area 
that are exempt from local rent control.
  (B) Fair market rentals for an area shall be published not 
less than annually by the Secretary on the site of the 
Department on the World Wide Web and in any other manner 
specified by the Secretary. Notice that such fair market 
rentals are being published shall be published in the Federal 
Register, and such fair market rentals shall become effective 
no earlier than 30 days after the date of such publication. The 
Secretary shall establish a procedure for public housing 
agencies and other interested parties to comment on such fair 
market rentals and to request, within a time specified by the 
Secretary, reevaluation of the fair market rentals in a 
jurisdiction before such rentals become effective. The 
Secretary shall cause to be published for comment in the 
Federal Register notices of proposed material changes in the 
methodology for estimating fair market rentals and notices 
specifying the final decisions regarding such proposed 
substantial methodological changes and responses to public 
comments.
  (2)(A) The assistance contract shall provide for adjustment 
annually or more frequently in the maximum monthly rents for 
units covered by the contract to reflect changes in the fair 
market rentals established in the housing area for similar 
types and sizes of dwelling units or, if the Secretary 
determines, on the basis of a reasonable formula. However, 
where the maximum monthly rent, for a unit in a new 
construction, substantial rehabilitation, or moderate 
rehabilitation project, to be adjusted using an annual 
adjustment factor exceeds the fair market rental for an 
existing dwelling unit in the market area, the Secretary shall 
adjust the rent only to the extent that the owner demonstrates 
that the adjusted rent would not exceed the rent for an 
unassisted unit of similar quality, type, and age in the same 
market area, as determined by the Secretary. The immediately 
foregoing sentence shall be effective only during fiscal year 
1995, fiscal year 1996 prior to April 26, 1996, and fiscal 
years 1997 and 1998, and during fiscal year 1999 and 
thereafter. Except for assistance under the certificate 
program, for any unit occupied by the same family at the time 
of the last annual rental adjustment, where the assistance 
contract provides for the adjustment of the maximum monthly 
rent by applying an annual adjustment factor and where the rent 
for a unit is otherwise eligible for an adjustment based on the 
full amount of the factor, 0.01 shall be subtracted from the 
amount of the factor, except that the factor shall not be 
reduced to less than 1.0. In the case of assistance under the 
certificate program, 0.01 shall be subtracted from the amount 
of the annual adjustment factor (except that the factor shall 
not be reduced to less than 1.0), and the adjusted rent shall 
not exceed the rent for a comparable unassisted unit of similar 
quality, type, and age in the market area. The immediately 
foregoing two sentences shall be effective only during fiscal 
year 1995, fiscal year 1996 prior to April 26, 1996, and fiscal 
years 1997 and 1998, and during fiscal year 1999 and 
thereafter. In establishing annual adjustment factors for units 
in new construction and substantial rehabilitation projects, 
the Secretary shall take into account the fact that debt 
service is a fixed expense. The immediately foregoing sentence 
shall be effective only during fiscal year 1998.
  (B) The contract shall further provide for the Secretary to 
make additional adjustments in the maximum monthly rent for 
units under contract to the extent he determines such 
adjustments are necessary to reflect increases in the actual 
and necessary expenses of owning and maintaining the units 
which have resulted from substantial general increases in real 
property taxes, utility rates, or similar costs which are not 
adequately compensated for by the adjustment in the maximum 
monthly rent authorized by subparagraph (A). The Secretary 
shall make additional adjustments in the maximum monthly rent 
for units under contract (subject to the availability of 
appropriations for contract amendments) to the extent the 
Secretary determines such adjustments are necessary to reflect 
increases in the actual and necessary expenses of owning and 
maintaining the units that have resulted from the expiration of 
a real property tax exemption. Where the Secretary determines 
that a project assisted under this section is located in a 
community where drug-related criminal activity is generally 
prevalent and the project's operating, maintenance, and capital 
repair expenses have been substantially increased primarily as 
a result of the prevalence of such drug-related activity, the 
Secretary may (at the discretion of the Secretary and subject 
to the availability of appropriations for contract amendments 
for this purpose), on a project by project basis, provide 
adjustments to the maximum monthly rents, to a level no greater 
than 120 percent of the project rents, to cover the costs of 
maintenance, security, capital repairs, and reserves required 
for the owner to carry out a strategy acceptable to the 
Secretary for addressing the problem of drug-related criminal 
activity. Any rent comparability standard required under this 
paragraph may be waived by the Secretary to so implement the 
preceding sentence. The Secretary may (at the discretion of the 
Secretary and subject to the availability of appropriations for 
contract amendments), on a project by project basis for 
projects receiving project-based assistance, provide 
adjustments to the maximum monthly rents to cover the costs of 
evaluating and reducing lead-based paint hazards, as defined in 
section 1004 of the Residential Lead-Based Paint Hazard 
Reduction Act of 1992.
  (C) Adjustments in the maximum rents under subparagraphs (A) 
and (B) shall not result in material differences between the 
rents charged for assisted units and unassisted units of 
similar quality, type, and age in the same market area, as 
determined by the Secretary. In implementing the limitation 
established under the preceding sentence, the Secretary shall 
establish regulations for conducting comparability studies for 
projects where the Secretary has reason to believe that the 
application of the formula adjustments under subparagraph (A) 
would result in such material differences. The Secretary shall 
conduct such studies upon the request of any owner of any 
project, or as the Secretary determines to be appropriate by 
establishing, to the extent practicable, a modified annual 
adjustment factor for such market area, as the Secretary shall 
designate, that is geographically smaller than the applicable 
housing area used for the establishment of the annual 
adjustment factor under subparagraph (A). The Secretary shall 
establish such modified annual adjustment factor on the basis 
of the results of a study conducted by the Secretary of the 
rents charged, and any change in such rents over the previous 
year, for assisted units and unassisted units of similar 
quality, type, and age in the smaller market area. Where the 
Secretary determines that such modified annual adjustment 
factor cannot be established or that such factor when applied 
to a particular project would result in material differences 
between the rents charged for assisted units and unassisted 
units of similar quality, type, and age in the same market 
area, the Secretary may apply an alternative methodology for 
conducting comparability studies in order to establish rents 
that are not materially different from rents charged for 
comparable unassisted units. If the Secretary or appropriate 
State agency does not complete and submit to the project owner 
a comparability study not later than 60 days before the 
anniversary date of the assistance contract under this section, 
the automatic annual adjustment factor shall be applied. The 
Secretary may not reduce the contract rents in effect on or 
after April 15, 1987, for newly constructed, substantially 
rehabilitated, or moderately rehabilitated projects assisted 
under this section (including projects assisted under this 
section as in effect prior to November 30, 1983), unless the 
project has been refinanced in a manner that reduces the 
periodic payments of the owner. Any maximum monthly rent that 
has been reduced by the Secretary after April 14, 1987, and 
prior to the enactment of this sentence shall be restored to 
the maximum monthly rent in effect on April 15, 1987. For any 
project which has had its maximum monthly rents reduced after 
April 14, 1987, the Secretary shall make assistance payments 
(from amounts reserved for the original contract) to the owner 
of such project in an amount equal to the difference between 
the maximum monthly rents in effect on April 15, 1987, and the 
reduced maximum monthly rents, multiplied by the number of 
months that the reduced maximum monthly rents were in effect.
  (3) The amount of the monthly assistance payment with respect 
to any dwelling unit shall be the difference between the 
maximum monthly rent which the contract provides that the owner 
is to receive for the unit and the rent the family is required 
to pay under section 3(a) of this Act.
  (4) The assistance contract shall provide that assistance 
payments may be made only with respect to a dwelling unit under 
lease for occupancy by a family determined to be a lower income 
family at the time it initially occupied such dwelling unit, 
except that such payments may be made with respect to 
unoccupied units for a period not exceeding sixty days (A) in 
the event that a family vacates a dwelling unit before the 
expiration date of the lease for occupancy or (B) where a good 
faith effort is being made to fill an unoccupied unit, and, 
subject to the provisions of the following sentence, such 
payments may be made, in the case of a newly constructed or 
substantially rehabilitated project, after such sixty-day 
period in an amount equal to the debt service attributable to 
such an unoccupied dwelling unit for a period not to exceed one 
year, if a good faith effort is being made to fill the unit and 
the unit provides decent, safe, and sanitary housing. No such 
payment may be made after such sixty-day period if the 
Secretary determines that the dwelling unit is in a project 
which provides the owner with revenues exceeding the costs 
incurred by such owner with respect to such project.
  (5) The Secretary shall take such steps as may be necessary, 
including the making of contracts for assistance payments in 
amounts in excess of the amounts required at the time of the 
initial renting of dwelling units, the reservation of annual 
contributions authority for the purpose of amending housing 
assistance contracts, or the allocation of a portion of new 
authorizations for the purpose of amending housing assistance 
contracts, to assure that assistance payments are increased on 
a timely basis to cover increases in maximum monthly rents or 
decreases in family incomes.
  (8)(A) Not less than one year before termination of any 
contract under which assistance payments are received under 
this section, other than a contract for tenant-based assistance 
under this section, an owner shall provide written notice to 
the Secretary and the tenants involved of the proposed 
termination. The notice shall also include a statement that, if 
the Congress makes funds available, the owner and the Secretary 
may agree to a renewal of the contract, thus avoiding 
termination, and that in the event of termination the 
Department of Housing and Urban Development will provide 
tenant-based rental assistance to all eligible residents, 
enabling them to choose the place they wish to rent, which is 
likely to include the dwelling unit in which they currently 
reside. Any contract covered by this paragraph that is renewed 
may be renewed for a period of up to 1 year or any number or 
years, with payments subject to the availability of 
appropriations for any year.
  (B) In the event the owner does not provide the notice 
required, the owner may not evict the tenants or increase the 
tenants' rent payment until such time as the owner has provided 
the notice and 1 year has elapsed. The Secretary may allow the 
owner to renew the terminating contract for a period of time 
sufficient to give tenants 1 year of advance notice under such 
terms and conditions as the Secretary may require.
  (C) Any notice under this paragraph shall also comply with 
any additional requirements established by the Secretary.
  (D) For purposes of this paragraph, the term ``termination'' 
means the expiration of the assistance contract or an owner's 
refusal to renew the assistance contract, and such term shall 
include termination of the contract for business reasons.
  (d)(1) Contracts to make assistance payments entered into by 
a public housing agency with an owner of existing housing units 
shall provide (with respect to any unit) that--
          (A) the selection of tenants shall be the function of 
        the owner, subject to the annual contributions contract 
        between the Secretary and the agency, [except that with 
        respect] except that--
                  (i) with respect to assisted dwelling units 
                in a project assisted with project-based 
                assistance under this section, the tenant 
                selection criteria used by the owner--
                          (I) shall provide that the highest 
                        preference shall be given to otherwise 
                        eligible children who are in foster 
                        care, have attained an age such that 
                        the provision of foster care for such 
                        child will end by reason of the age of 
                        the child within 6 months, meet the 
                        requirements under clauses (i) and (ii) 
                        of paragraph (1) of the definition of 
                        ``at risk of homelessness'' in section 
                        91.5 of the Secretary's regulations (24 
                        C.F.R. 91.5), as in effect on September 
                        1, 2016, and have agreed to comply with 
                        the requirements under section 39(c); 
                        and
                          (II) may provide highest preference 
                        to, in addition to eligible children 
                        described in subclause (I), not more 
                        than two other types of eligible 
                        families; and
                  (ii) with respect to the certificate and 
                moderate rehabilitation programs only, for the 
                purpose of selecting families to be assisted 
                who are not eligible for highest preference 
                pursuant to clause (i)(I), the public housing 
                agency may establish local preferences, 
                consistent with the public housing agency plan 
                submitted under section 5A (42 U.S.C. 1437c-1) 
                by the public housing agency;
          (B)(i) the lease between the tenant and the owner 
        shall be for at least one year or the term of such 
        contract, whichever is shorter, and shall contain other 
        terms and conditions specified by the Secretary;
                  (ii) during the term of the lease, the owner 
                shall not terminate the tenancy except for 
                serious or repeated violation of the terms and 
                conditions of the lease, for violation of 
                applicable Federal, State, or local law, or for 
                other good cause;
                  (iii) during the term of the lease, any 
                criminal activity that threatens the health, 
                safety, or right to peaceful enjoyment of the 
                premises by other tenants, any criminal 
                activity that threatens the health, safety, or 
                right to peaceful enjoyment of their residences 
                by persons residing in the immediate vicinity 
                of the premises, or any drug-related criminal 
                activity on or near such premises, engaged in 
                by a tenant of any unit, any member of the 
                tenant's household, or any guest or other 
                person under the tenant's control, shall be 
                cause for termination of tenancy;
                  (iv) any termination of tenancy shall be 
                preceded by the owner's provision of written 
                notice to the tenant specifying the grounds for 
                such action; and
                  (v) it shall be cause for termination of the 
                tenancy of a tenant if such tenant--
                          (I) is fleeing to avoid prosecution, 
                        or custody or confinement after 
                        conviction, under the laws of the place 
                        from which the individual flees, for a 
                        crime, or attempt to commit a crime, 
                        which is a felony under the laws of the 
                        place from which the individual flees, 
                        or which, in the case of the State of 
                        New Jersey, is a high misdemeanor under 
                        the laws of such State; or
                          (II) is violating a condition of 
                        probation or parole imposed under 
                        Federal or State law;
          (C) maintenance and replacement (including 
        redecoration) shall be in accordance with the standard 
        practice for the building concerned as established by 
        the owner and agreed to by the agency; and
          (D) the agency and the owner shall carry out such 
        other appropriate terms and conditions as may be 
        mutually agreed to by them.
  (2)(A) Each contract for an existing structure entered into 
under this section shall be for a term of not less than one 
month nor more than one hundred and eighty months. The 
Secretary shall permit public housing agencies to enter into 
contracts for assistance payments of less than 12 months 
duration in order to avoid disruption in assistance to eligible 
families if the annual contributions contract is within 1 year 
of its expiration date.
  (B)(i) In determining the amount of assistance provided under 
an assistance contract for project-based assistance under this 
paragraph or a contract for assistance for housing constructed 
or substantially rehabilitated pursuant to assistance provided 
under section 8(b)(2) of this Act (as such section existed 
immediately before October 1, 1983), the Secretary may consider 
and annually adjust, with respect to such project, for the cost 
of employing or otherwise retaining the services of one or more 
service coordinators under section 661 of the Housing and 
Community Development Act of 1992 to coordinate the provision 
of any services within the project for residents of the project 
who are elderly or disabled families.
  (ii) The budget authority available under section 5(c) for 
assistance under this section is authorized to be increased by 
$15,000,000 on or after October 1, 1992, and by $15,000,000 on 
or after October 1, 1993. Amounts made available under this 
subparagraph shall be used to provide additional amounts under 
annual contributions contracts for assistance under this 
section which shall be made available through assistance 
contracts only for the purpose of providing service 
coordinators under clause (i) for projects receiving project-
based assistance under this paragraph and to provide additional 
amounts under contracts for assistance for projects constructed 
or substantially rehabilitated pursuant to assistance provided 
under section 8(b)(2) of this Act (as such section existed 
immediately before October 1, 1983) only for such purpose.
          (C) An assistance contract for project-based 
        assistance under this paragraph shall provide that the 
        owner shall ensure and maintain compliance with 
        subtitle C of title VI of the Housing and Community 
        Development Act of 1992 and any regulations issued 
        under such subtitle.
          (D) An owner of a covered section 8 housing project 
        (as such term is defined in section 659 of the Housing 
        and Community Development Act of 1992) may give 
        preference for occupancy of dwelling units in the 
        project, and reserve units for occupancy, in accordance 
        with subtitle D of title VI of the Housing and 
        Community Development Act of 1992.
  (3) Notwithstanding any other provision of law, with the 
approval of the Secretary the public housing agency 
administering a contract under this section with respect to 
existing housing units may exercise all management and 
maintenance responsibilities with respect to those units 
pursuant to a contract between such agency and the owner of 
such units.
  (4) A public housing agency that serves more than one unit of 
general local government may, at the discretion of the agency, 
in allocating assistance under this section, give priority to 
disabled families that are not elderly families.
          (5) Calculation of limit.--Any contract entered into 
        under section 514 of the Multifamily Assisted Housing 
        Reform and Affordability Act of 1997 shall be excluded 
        in computing the limit on project-based assistance 
        under this subsection.
  (6) Treatment of common areas.--The Secretary may not provide 
any assistance amounts pursuant to an existing contract for 
project-based assistance under this section for a housing 
project and may not enter into a new or renewal contract for 
such assistance for a project unless the owner of the project 
provides consent, to such local law enforcement agencies as the 
Secretary determines appropriate, for law enforcement officers 
of such agencies to enter common areas of the project at any 
time and without advance notice upon a determination of 
probable cause by such officers that criminal activity is 
taking place in such areas.
  (e)(1) Nothing in this Act shall be deemed to prohibit an 
owner from pledging, or offering as security for any loan or 
obligation, a contract for assistance payments entered into 
pursuant to this section: Provided, That such security is in 
connection with a project constructed or rehabilitated pursuant 
to authority granted in this section, and the terms of the 
financing or any refinancing have been approved by the 
Secretary.
  (f) As used in this section--
          (1) the term ``owner'' means any private person or 
        entity, including a cooperative, an agency of the 
        Federal Government, or a public housing agency, having 
        the legal right to lease or sublease dwelling units;
          (2) the terms ``rent'' or ``rental'' mean, with 
        respect to members of a cooperative, the charges under 
        the occupancy agreements between such members and the 
        cooperative;
          (3) the term ``debt service'' means the required 
        payments for principal and interest made with respect 
        to a mortgage secured by housing assisted under this 
        Act;
          (4) the term ``participating jurisdiction'' means a 
        State or unit of general local government designated by 
        the Secretary to be a participating jurisdiction under 
        title II of the Cranston-Gonzalez National Affordable 
        Housing Act;
          (5) the term ``drug-related criminal activity'' means 
        the illegal manufacture, sale, distribution, use, or 
        possession with intent to manufacture, sell, 
        distribute, or use, of a controlled substance (as 
        defined in section 102 of the Controlled Substances Act 
        (21 U.S.C. 802));
          (6) the term ``project-based assistance'' means 
        rental assistance under subsection (b) that is attached 
        to the structure pursuant to subsection (d)(2) or 
        (o)(13); and
          (7) the term ``tenant-based assistance'' means rental 
        assistance under subsection (o) that is not project-
        based assistance and that provides for the eligible 
        family to select suitable housing and to move to other 
        suitable housing.
  (g) Notwithstanding any other provision of this Act, 
assistance payments under this section may be provided, in 
accordance with regulations prescribed by the Secretary, with 
respect to some or all of the units in any project approved 
pursuant to section 202 of the Housing Act of 1959.
  (h) Sections 5(e) and 6 and any other provisions of this Act 
which are inconsistent with the provisions of this section 
shall not apply to contracts for assistance entered into under 
this section.
  (i) The Secretary may not consider the receipt by a public 
housing agency of assistance under section 811(b)(1) of the 
Cranston-Gonzalez National Affordable Housing Act, or the 
amount received, in approving assistance for the agency under 
this section or determining the amount of such assistance to be 
provided.
  (k) The Secretary shall establish procedures which are 
appropriate and necessary to assure that income data provided 
to public housing agencies and owners by families applying for 
or receiving assistance under this section is complete and 
accurate. In establishing such procedures, the Secretary shall 
randomly, regularly, and periodically select a sample of 
families to authorize the Secretary to obtain information on 
these families for the purpose of income verification, or to 
allow those families to provide such information themselves. 
Such information may include, but is not limited to, data 
concerning unemployment compensation and Federal income 
taxation and data relating to benefits made available under the 
Social Security Act, the Food and Nutrition Act of 2008, or 
title 38, United States Code. Any such information received 
pursuant to this subsection shall remain confidential and shall 
be used only for the purpose of verifying incomes in order to 
determine eligibility of families for benefits (and the amount 
of such benefits, if any) under this section.
  (o) Voucher Program.--
          (1) Authority.--
                  (A) In general.--The Secretary may provide 
                assistance to public housing agencies for 
                tenant-based assistance using a payment 
                standard established in accordance with 
                subparagraph (B). The payment standard shall be 
                used to determine the monthly assistance that 
                may be paid for any family, as provided in 
                paragraph (2).
                  (B) Establishment of payment standard.--
                Except as provided under subparagraph (D), the 
                payment standard for each size of dwelling unit 
                in a market area shall not exceed 110 percent 
                of the fair market rental established under 
                subsection (c) for the same size of dwelling 
                unit in the same market area and shall be not 
                less than 90 percent of that fair market 
                rental, except that no public housing agency 
                shall be required as a result of a reduction in 
                the fair market rental to reduce the payment 
                standard applied to a family continuing to 
                reside in a unit for which the family was 
                receiving assistance under this section at the 
                time the fair market rental was reduced. The 
                Secretary shall allow public housing agencies 
                to request exception payment standards within 
                fair market rental areas subject to criteria 
                and procedures established by the Secretary.
                  (C) Set-aside.--The Secretary may set aside 
                not more than 5 percent of the budget authority 
                made available for assistance under this 
                subsection as an adjustment pool. The Secretary 
                shall use amounts in the adjustment pool to 
                make adjusted payments to public housing 
                agencies under subparagraph (A), to ensure 
                continued affordability, if the Secretary 
                determines that additional assistance for such 
                purpose is necessary, based on documentation 
                submitted by a public housing agency.
                  (D) Approval.--The Secretary may require a 
                public housing agency to submit the payment 
                standard of the public housing agency to the 
                Secretary for approval, if the payment standard 
                is less than 90 percent of the fair market 
                rental or exceeds 110 percent of the fair 
                market rental, except that a public housing 
                agency may establish a payment standard of not 
                more than 120 percent of the fair market rent 
                where necessary as a reasonable accommodation 
                for a person with a disability, without 
                approval of the Secretary. A public housing 
                agency may use a payment standard that is 
                greater than 120 percent of the fair market 
                rent as a reasonable accommodation for a person 
                with a disability, but only with the approval 
                of the Secretary. In connection with the use of 
                any increased payment standard established or 
                approved pursuant to either of the preceding 
                two sentences as a reasonable accommodation for 
                a person with a disability, the Secretary may 
                not establish additional requirements regarding 
                the amount of adjusted income paid by such 
                person for rent.
                  (E) Review.--The Secretary--
                          (i) shall monitor rent burdens and 
                        review any payment standard that 
                        results in a significant percentage of 
                        the families occupying units of any 
                        size paying more than 30 percent of 
                        adjusted income for rent; and
                          (ii) may require a public housing 
                        agency to modify the payment standard 
                        of the public housing agency based on 
                        the results of that review.
          (2) Amount of monthly assistance payment.--Subject to 
        the requirement under section 3(a)(3) (relating to 
        minimum rental amount), the monthly assistance payment 
        for a family receiving assistance under this subsection 
        shall be determined as follows:
                  (A) Tenant-based assistance; rent not 
                exceeding payment standard.--For a family 
                receiving tenant-based assistance, if the rent 
                for the family (including the amount allowed 
                for tenant-paid utilities) does not exceed the 
                applicable payment standard established under 
                paragraph (1), the monthly assistance payment 
                for the family shall be equal to the amount by 
                which the rent (including the amount allowed 
                for tenant-paid utilities) exceeds the greatest 
                of the following amounts, rounded to the 
                nearest dollar:
                          (i) 30 percent of the monthly 
                        adjusted income of the family.
                          (ii) 10 percent of the monthly income 
                        of the family.
                          (iii) If the family is receiving 
                        payments for welfare assistance from a 
                        public agency and a part of those 
                        payments, adjusted in accordance with 
                        the actual housing costs of the family, 
                        is specifically designated by that 
                        agency to meet the housing costs of the 
                        family, the portion of those payments 
                        that is so designated.
                  (B) Tenant-based assistance; rent exceeding 
                payment standard.--For a family receiving 
                tenant-based assistance, if the rent for the 
                family (including the amount allowed for 
                tenant-paid utilities) exceeds the applicable 
                payment standard established under paragraph 
                (1), the monthly assistance payment for the 
                family shall be equal to the amount by which 
                the applicable payment standard exceeds the 
                greatest of amounts under clauses (i), (ii), 
                and (iii) of subparagraph (A).
                  (C) Families receiving project-based 
                assistance.--For a family receiving project-
                based assistance, the rent that the family is 
                required to pay shall be determined in 
                accordance with section 3(a)(1), and the amount 
                of the housing assistance payment shall be 
                determined in accordance with subsection (c)(3) 
                of this section.
                  (D) Utility allowance.--
                          (i) General.--In determining the 
                        monthly assistance payment for a family 
                        under subparagraphs (A) and (B), the 
                        amount allowed for tenant-paid 
                        utilities shall not exceed the 
                        appropriate utility allowance for the 
                        family unit size as determined by the 
                        public housing agency regardless of the 
                        size of the dwelling unit leased by the 
                        family.
                          (ii) Exception for families in 
                        including persons with disabilities.--
                        Notwithstanding subparagraph (A), upon 
                        request by a family that includes a 
                        person with disabilities, the public 
                        housing agency shall approve a utility 
                        allowance that is higher than the 
                        applicable amount on the utility 
                        allowance schedule if a higher utility 
                        allowance is needed as a reasonable 
                        accommodation to make the program 
                        accessible to and usable by the family 
                        member with a disability.
          (3)  40 percent limit.--At the time a family 
        initially receives tenant-based assistance under this 
        section with respect to any dwelling unit, the total 
        amount that a family may be required to pay for rent 
        may not exceed 40 percent of the monthly adjusted 
        income of the family.
          (4) Eligible families.--To be eligible to receive 
        assistance under this subsection, a family shall, at 
        the time a family initially receives assistance under 
        this subsection, be a low-income family that is--
                  (A) a very low-income family;
                  (B) a family previously assisted under this 
                title;
                  (C) a low-income family that meets 
                eligibility criteria specified by the public 
                housing agency;
                  (D) a family that qualifies to receive a 
                voucher in connection with a homeownership 
                program approved under title IV of the 
                Cranston-Gonzalez National Affordable Housing 
                Act; or
                  (E) a family that qualifies to receive a 
                voucher under section 223 or 226 of the Low-
                Income Housing Preservation and Resident 
                Homeownership Act of 1990.
          (5) Reviews of family income.--
                  (A) In general.--Reviews of family incomes 
                for purposes of this section shall be subject 
                to paragraphs (1), (6), and (7) of section 3(a) 
                and to section 904 of the Stewart B. McKinney 
                Homeless Assistance Amendments Act of 1988.
                  (B) Procedures.--Each public housing agency 
                administering assistance under this subsection 
                shall establish procedures that are appropriate 
                and necessary to ensure that income data 
                provided to the agency and owners by families 
                applying for or receiving assistance from the 
                agency is complete and accurate.
          (6) Selection of families and disapproval of 
        owners.--
                  (A) Preferences.--
                          (i) Authority to establish.--Each 
                        public housing agency [may] shall 
                        establish a system for making tenant-
                        based assistance under this subsection 
                        available on behalf of eligible 
                        families that provides preference for 
                        such assistance to eligible families 
                        having certain characteristics, which 
                        may include a preference for families 
                        residing in public housing who are 
                        victims of a crime of violence (as such 
                        term is defined in section 16 of title 
                        18, United States Code) that has been 
                        reported to an appropriate law 
                        enforcement agency.
                          (ii) Highest preference.--Each system 
                        of preferences established pursuant to 
                        this subparagraph--
                                  (I) shall provide that the 
                                highest preference for 
                                assistance shall be given to 
                                otherwise eligible children who 
                                are in foster care, have 
                                attained an age such that the 
                                provision of foster care for 
                                such child will end by reason 
                                of the age of the child within 
                                6 months, meet the requirements 
                                under clauses (i) and (ii) of 
                                paragraph (1) of the definition 
                                of ``at risk of homelessness'' 
                                in section 91.5 of the 
                                Secretary's regulations (24 
                                C.F.R. 91.5), as in effect on 
                                September 1, 2016, and have 
                                agreed to comply with the 
                                requirements under section 
                                39(c); and
                                  (II) may provide highest 
                                preference for assistance to, 
                                in addition to eligible 
                                children described in subclause 
                                (I), not more than two other 
                                types of eligible families.
                          [(ii)] (iii) Content.--[Each system] 
                        Except as provided in clause (ii)(I), 
                        each system of preferences established 
                        pursuant to this subparagraph shall be 
                        based upon local housing needs and 
                        priorities, as determined by the public 
                        housing agency using generally accepted 
                        data sources, including any information 
                        obtained pursuant to an opportunity for 
                        public comment as provided under 
                        section 5A(f) and under the 
                        requirements applicable to the 
                        comprehensive housing affordability 
                        strategy for the relevant jurisdiction.
                  (B) Selection of tenants.--Each housing 
                assistance payment contract entered into by the 
                public housing agency and the owner of a 
                dwelling unit) shall provide that the screening 
                and selection of families for those units shall 
                be the function of the owner. In addition, the 
                public housing agency may elect to screen 
                applicants for the program in accordance with 
                such requirements as the Secretary may 
                establish.
                  (C) PHA disapproval of owners.--In addition 
                to other grounds authorized by the Secretary, a 
                public housing agency may elect not to enter 
                into a housing assistance payments contract 
                under this subsection with an owner who 
                refuses, or has a history of refusing, to take 
                action to terminate tenancy for activity 
                engaged in by the tenant, any member of the 
                tenant's household, any guest, or any other 
                person under the control of any member of the 
                household that--
                          (i) threatens the health or safety 
                        of, or right to peaceful enjoyment of 
                        the premises by, other tenants or 
                        employees of the public housing agency, 
                        owner, or other manager of the housing;
                          (ii) threatens the health or safety 
                        of, or right to peaceful enjoyment of 
                        the residences by, persons residing in 
                        the immediate vicinity of the premises; 
                        or
                          (iii) is drug-related or violent 
                        criminal activity.
          (7) Leases and tenancy.--Each housing assistance 
        payment contract entered into by the public housing 
        agency and the owner of a dwelling unit--
                  (A) shall provide that the lease between the 
                tenant and the owner shall be for a term of not 
                less than 1 year, except that the public 
                housing agency may approve a shorter term for 
                an initial lease between the tenant and the 
                dwelling unit owner if the public housing 
                agency determines that such shorter term would 
                improve housing opportunities for the tenant 
                and if such shorter term is considered to be a 
                prevailing local market practice;
                  (B) shall provide that the dwelling unit 
                owner shall offer leases to tenants assisted 
                under this subsection that--
                          (i) are in a standard form used in 
                        the locality by the dwelling unit 
                        owner; and
                          (ii) contain terms and conditions 
                        that--
                                  (I) are consistent with State 
                                and local law; and
                                  (II) apply generally to 
                                tenants in the property who are 
                                not assisted under this 
                                section;
                  (C) shall provide that during the term of the 
                lease, the owner shall not terminate the 
                tenancy except for serious or repeated 
                violation of the terms and conditions of the 
                lease, for violation of applicable Federal, 
                State, or local law, or for other good cause, 
                and in the case of an owner who is an immediate 
                successor in interest pursuant to foreclosure 
                during the term of the lease vacating the 
                property prior to sale shall not constitute 
                other good cause, except that the owner may 
                terminate the tenancy effective on the date of 
                transfer of the unit to the owner if the 
                owner--
                          (i) will occupy the unit as a primary 
                        residence; and
                          (ii) has provided the tenant a notice 
                        to vacate at least 90 days before the 
                        effective date of such notice.;
                  (D) shall provide that during the term of the 
                lease, any criminal activity that threatens the 
                health, safety, or right to peaceful enjoyment 
                of the premises by other tenants, any criminal 
                activity that threatens the health, safety, or 
                right to peaceful enjoyment of their residences 
                by persons residing in the immediate vicinity 
                of the premises, or any violent or drug-related 
                criminal activity on or near such premises, 
                engaged in by a tenant of any unit, any member 
                of the tenant's household, or any guest or 
                other person under the tenant's control, shall 
                be cause for termination of tenancy;
                  (E) shall provide that any termination of 
                tenancy under this subsection shall be preceded 
                by the provision of written notice by the owner 
                to the tenant specifying the grounds for that 
                action, and any relief shall be consistent with 
                applicable State and local law; and
                  (F) may include any addenda required by the 
                Secretary to set forth the provisions of this 
                subsection. In the case of any foreclosure on 
                any federally-related mortgage loan (as that 
                term is defined in section 3 of the Real Estate 
                Settlement Procedures Act of 1974 (12 U.S.C. 
                2602)) or on any residential real property in 
                which a recipient of assistance under this 
                subsection resides, the immediate successor in 
                interest in such property pursuant to the 
                foreclosure shall assume such interest subject 
                to the lease between the prior owner and the 
                tenant and to the housing assistance payments 
                contract between the prior owner and the public 
                housing agency for the occupied unit, except 
                that this provision and the provisions related 
                to foreclosure in subparagraph (C) shall not 
                shall not affect any State or local law that 
                provides longer time periods or other 
                additional protections for tenants.
          (8) Inspection of units by pha's.--
                  (A) Initial inspection.--
                          (i) In general.--For each dwelling 
                        unit for which a housing assistance 
                        payment contract is established under 
                        this subsection, the public housing 
                        agency (or other entity pursuant to 
                        paragraph (11)) shall inspect the unit 
                        before any assistance payment is made 
                        to determine whether the dwelling unit 
                        meets the housing quality standards 
                        under subparagraph (B), except as 
                        provided in clause (ii) or (iii) of 
                        this subparagraph.
                          (ii) Correction of non-life-
                        threatening conditions.--In the case of 
                        any dwelling unit that is determined, 
                        pursuant to an inspection under clause 
                        (i), not to meet the housing quality 
                        standards under subparagraph (B), 
                        assistance payments may be made for the 
                        unit notwithstanding subparagraph (C) 
                        if failure to meet such standards is a 
                        result only of non-life-threatening 
                        conditions, as such conditions are 
                        established by the Secretary. A public 
                        housing agency making assistance 
                        payments pursuant to this clause for a 
                        dwelling unit shall, 30 days after the 
                        beginning of the period for which such 
                        payments are made, withhold any 
                        assistance payments for the unit if any 
                        deficiency resulting in noncompliance 
                        with the housing quality standards has 
                        not been corrected by such time. The 
                        public housing agency shall recommence 
                        assistance payments when such 
                        deficiency has been corrected, and may 
                        use any payments withheld to make 
                        assistance payments relating to the 
                        period during which payments were 
                        withheld.
                          (iii) Use of alternative inspection 
                        method for interim period.--In the case 
                        of any property that within the 
                        previous 24 months has met the 
                        requirements of an inspection that 
                        qualifies as an alternative inspection 
                        method pursuant to subparagraph (E), a 
                        public housing agency may authorize 
                        occupancy before the inspection under 
                        clause (i) has been completed, and may 
                        make assistance payments retroactive to 
                        the beginning of the lease term after 
                        the unit has been determined pursuant 
                        to an inspection under clause (i) to 
                        meet the housing quality standards 
                        under subparagraph (B). This clause may 
                        not be construed to exempt any dwelling 
                        unit from compliance with the 
                        requirements of subparagraph (D).
                  (B) Housing quality standards.--The housing 
                quality standards under this subparagraph are 
                standards for safe and habitable housing 
                established--
                          (i) by the Secretary for purposes of 
                        this subsection; or
                          (ii) by local housing codes or by 
                        codes adopted by public housing 
                        agencies that--
                                  (I) meet or exceed housing 
                                quality standards, except that 
                                the Secretary may waive the 
                                requirement under this 
                                subclause to significantly 
                                increase access to affordable 
                                housing and to expand housing 
                                opportunities for families 
                                assisted under this subsection, 
                                except where such waiver could 
                                adversely affect the health or 
                                safety of families assisted 
                                under this subsection; and
                                  (II) do not severely restrict 
                                housing choice
                  (C) Inspection.--The determination required 
                under subparagraph (A) shall be made by the 
                public housing agency (or other entity, as 
                provided in paragraph (11)) pursuant to an 
                inspection of the dwelling unit conducted 
                before any assistance payment is made for the 
                unit. Inspections of dwelling units under this 
                subparagraph shall be made before the 
                expiration of the 15-day period beginning upon 
                a request by the resident or landlord to the 
                public housing agency or, in the case of any 
                public housing agency that provides assistance 
                under this subsection on behalf of more than 
                1250 families, before the expiration of a 
                reasonable period beginning upon such request. 
                The performance of the agency in meeting the 
                15-day inspection deadline shall be taken into 
                consideration in assessing the performance of 
                the agency.
                  (D) Biennial inspections.--
                          (i) Requirement.--Each public housing 
                        agency providing assistance under this 
                        subsection (or other entity, as 
                        provided in paragraph (11)) shall, for 
                        each assisted dwelling unit, make 
                        inspections not less often than 
                        biennially during the term of the 
                        housing assistance payments contract 
                        for the unit to determine whether the 
                        unit is maintained in accordance with 
                        the requirements under subparagraph 
                        (A).
                          (ii) Use of alternative inspection 
                        method.--The requirements under clause 
                        (i) may be complied with by use of 
                        inspections that qualify as an 
                        alternative inspection method pursuant 
                        to subparagraph (E).
                          (iii) Records.--The public housing 
                        agency (or other entity) shall retain 
                        the records of the inspection for a 
                        reasonable time, as determined by the 
                        Secretary, and shall make the records 
                        available upon request to the 
                        Secretary, the Inspector General for 
                        the Department of Housing and Urban 
                        Development, and any auditor conducting 
                        an audit under section 5(h).
                          (iv) Mixed-finance properties.--The 
                        Secretary may adjust the frequency of 
                        inspections for mixed-finance 
                        properties assisted with vouchers under 
                        paragraph (13) to facilitate the use of 
                        the alternative inspections in 
                        subparagraph (E).
                  (E) Alternative inspection method.--An 
                inspection of a property shall qualify as an 
                alternative inspection method for purposes of 
                this subparagraph if--
                          (i) the inspection was conducted 
                        pursuant to requirements under a 
                        Federal, State, or local housing 
                        program (including the Home investment 
                        partnership program under title II of 
                        the Cranston-Gonzalez National 
                        Affordable Housing Act and the low-
                        income housing tax credit program under 
                        section 42 of the Internal Revenue Code 
                        of 1986); and
                          (ii) pursuant to such inspection, the 
                        property was determined to meet the 
                        standards or requirements regarding 
                        housing quality or safety applicable to 
                        properties assisted under such program, 
                        and, if a non-Federal standard or 
                        requirement was used, the public 
                        housing agency has certified to the 
                        Secretary that such standard or 
                        requirement provides the same (or 
                        greater) protection to occupants of 
                        dwelling units meeting such standard or 
                        requirement as would the housing 
                        quality standards under subparagraph 
                        (B).
                  (F) Interim inspections.--Upon notification 
                to the public housing agency, by a family (on 
                whose behalf tenant-based rental assistance is 
                provided under this subsection) or by a 
                government official, that the dwelling unit for 
                which such assistance is provided does not 
                comply with the housing quality standards under 
                subparagraph (B), the public housing agency 
                shall inspect the dwelling unit--
                          (i) in the case of any condition that 
                        is life-threatening, within 24 hours 
                        after the agency's receipt of such 
                        notification, unless waived by the 
                        Secretary in extraordinary 
                        circumstances; and
                          (ii) in the case of any condition 
                        that is not life-threatening, within a 
                        reasonable time frame, as determined by 
                        the Secretary.
                  (G) Enforcement of housing quality 
                standards.--
                          (i) Determination of noncompliance.--
                        A dwelling unit that is covered by a 
                        housing assistance payments contract 
                        under this subsection shall be 
                        considered, for purposes of 
                        subparagraphs (D) and (F), to be in 
                        noncompliance with the housing quality 
                        standards under subparagraph (B) if--
                                  (I) the public housing agency 
                                or an inspector authorized by 
                                the State or unit of local 
                                government determines upon 
                                inspection of the unit that the 
                                unit fails to comply with such 
                                standards;
                                  (II) the agency or inspector 
                                notifies the owner of the unit 
                                in writing of such failure to 
                                comply; and
                                  (III) the failure to comply 
                                is not corrected--
                                          (aa) in the case of 
                                        any such failure that 
                                        is a result of life-
                                        threatening conditions, 
                                        within 24 hours after 
                                        such notice has been 
                                        provided; and
                                          (bb) in the case of 
                                        any such failure that 
                                        is a result of non-
                                        life-threatening 
                                        conditions, within 30 
                                        days after such notice 
                                        has been provided or 
                                        such other reasonable 
                                        longer period as the 
                                        public housing agency 
                                        may establish.
                          (ii) Withholding of assistance 
                        amounts during correction.--The public 
                        housing agency may withhold assistance 
                        amounts under this subsection with 
                        respect to a dwelling unit for which a 
                        notice pursuant to clause (i)(II), of 
                        failure to comply with housing quality 
                        standards under subparagraph (B) as 
                        determined pursuant to an inspection 
                        conducted under subparagraph (D) or 
                        (F), has been provided. If the unit is 
                        brought into compliance with such 
                        housing quality standards during the 
                        periods referred to in clause (i)(III), 
                        the public housing agency shall 
                        recommence assistance payments and may 
                        use any amounts withheld during the 
                        correction period to make assistance 
                        payments relating to the period during 
                        which payments were withheld.
                          (iii) Abatement of assistance 
                        amounts.--The public housing agency 
                        shall abate all of the assistance 
                        amounts under this subsection with 
                        respect to a dwelling unit that is 
                        determined, pursuant to clause (i) of 
                        this subparagraph, to be in 
                        noncompliance with housing quality 
                        standards under subparagraph (B). Upon 
                        completion of repairs by the public 
                        housing agency or the owner sufficient 
                        so that the dwelling unit complies with 
                        such housing quality standards, the 
                        agency shall recommence payments under 
                        the housing assistance payments 
                        contract to the owner of the dwelling 
                        unit.
                          (iv) Notification.--If a public 
                        housing agency providing assistance 
                        under this subsection abates rental 
                        assistance payments pursuant to clause 
                        (iii) with respect to a dwelling unit, 
                        the agency shall, upon commencement of 
                        such abatement--
                                  (I) notify the tenant and the 
                                owner of the dwelling unit 
                                that--
                                          (aa) such abatement 
                                        has commenced; and
                                          (bb) if the dwelling 
                                        unit is not brought 
                                        into compliance with 
                                        housing quality 
                                        standards within 60 
                                        days after the 
                                        effective date of the 
                                        determination of 
                                        noncompliance under 
                                        clause (i) or such 
                                        reasonable longer 
                                        period as the agency 
                                        may establish, the 
                                        tenant will have to 
                                        move; and
                                  (II) issue the tenant the 
                                necessary forms to allow the 
                                tenant to move to another 
                                dwelling unit and transfer the 
                                rental assistance to that unit.
                          (v) Protection of tenants.--An owner 
                        of a dwelling unit may not terminate 
                        the tenancy of any tenant because of 
                        the withholding or abatement of 
                        assistance pursuant to this 
                        subparagraph. During the period that 
                        assistance is abated pursuant to this 
                        subparagraph, the tenant may terminate 
                        the tenancy by notifying the owner.
                          (vi) Termination of lease or 
                        assistance payments contract.--If 
                        assistance amounts under this section 
                        for a dwelling unit are abated pursuant 
                        to clause (iii) and the owner does not 
                        correct the noncompliance within 60 
                        days after the effective date of the 
                        determination of noncompliance under 
                        clause (i), or such other reasonable 
                        longer period as the public housing 
                        agency may establish, the agency shall 
                        terminate the housing assistance 
                        payments contract for the dwelling 
                        unit.
                          (vii) Relocation.--
                                  (I) Lease of new unit.--The 
                                agency shall provide the family 
                                residing in such a dwelling 
                                unit a period of 90 days or 
                                such longer period as the 
                                public housing agency 
                                determines is reasonably 
                                necessary to lease a new unit, 
                                beginning upon termination of 
                                the contract, to lease a new 
                                residence with tenant-based 
                                rental assistance under this 
                                section.
                                  (II) Availability of public 
                                housing units.--If the family 
                                is unable to lease such a new 
                                residence during such period, 
                                the public housing agency 
                                shall, at the option of the 
                                family, provide such family a 
                                preference for occupancy in a 
                                dwelling unit of public housing 
                                that is owned or operated by 
                                the agency that first becomes 
                                available for occupancy after 
                                the expiration of such period.
                                  (III) Assistance in finding 
                                unit.--The public housing 
                                agency may provide assistance 
                                to the family in finding a new 
                                residence, including use of up 
                                to two months of any assistance 
                                amounts withheld or abated 
                                pursuant to clause (ii) or 
                                (iii), respectively, for costs 
                                directly associated with 
                                relocation of the family to a 
                                new residence, which shall 
                                include security deposits as 
                                necessary and may include 
                                reimbursements for reasonable 
                                moving expenses incurred by the 
                                household, as established by 
                                the Secretary. The agency may 
                                require that a family receiving 
                                assistance for a security 
                                deposit shall remit, to the 
                                extent of such assistance, the 
                                amount of any security deposit 
                                refunds made by the owner of 
                                the dwelling unit for which the 
                                lease was terminated.
                          (viii) Tenant-caused damages.--If a 
                        public housing agency determines that 
                        any damage to a dwelling unit that 
                        results in a failure of the dwelling 
                        unit to comply with housing quality 
                        standards under subparagraph (B), other 
                        than any damage resulting from ordinary 
                        use, was caused by the tenant, any 
                        member of the tenant's household, or 
                        any guest or other person under the 
                        tenant's control, the agency may waive 
                        the applicability of this subparagraph, 
                        except that this clause shall not 
                        exonerate a tenant from any liability 
                        otherwise existing under applicable law 
                        for damages to the premises caused by 
                        such tenant.
                          (ix) Applicability.--This 
                        subparagraph shall apply to any 
                        dwelling unit for which a housing 
                        assistance payments contract is entered 
                        into or renewed after the date of the 
                        effectiveness of the regulations 
                        implementing this subparagraph.
                  (H) Inspection guidelines.--The Secretary 
                shall establish procedural guidelines and 
                performance standards to facilitate inspections 
                of dwelling units and conform such inspections 
                with practices utilized in the private housing 
                market. Such guidelines and standards shall 
                take into consideration variations in local 
                laws and practices of public housing agencies 
                and shall provide flexibility to authorities 
                appropriate to facilitate efficient provision 
                of assistance under this subsection.
          (9) Vacated units.--If an assisted family vacates a 
        dwelling unit for which rental assistance is provided 
        under a housing assistance payment contract before the 
        expiration of the term of the lease for the unit, 
        rental assistance pursuant to such contract may not be 
        provided for the unit after the month during which the 
        unit was vacated.
          (10) Rent.--
                  (A) Reasonableness.--The rent for dwelling 
                units for which a housing assistance payment 
                contract is established under this subsection 
                shall be reasonable in comparison with rents 
                charged for comparable dwelling units in the 
                private, unassisted local market.
                  (B) Negotiations.--A public housing agency 
                (or other entity, as provided in paragraph 
                (11)) shall, at the request of a family 
                receiving tenant-based assistance under this 
                subsection, assist that family in negotiating a 
                reasonable rent with a dwelling unit owner. A 
                public housing agency (or such other entity) 
                shall review the rent for a unit under 
                consideration by the family (and all rent 
                increases for units under lease by the family) 
                to determine whether the rent (or rent 
                increase) requested by the owner is reasonable. 
                If a public housing agency (or other such 
                entity) determines that the rent (or rent 
                increase) for a dwelling unit is not 
                reasonable, the public housing agency (or other 
                such entity) shall not make housing assistance 
                payments to the owner under this subsection 
                with respect to that unit.
                  (C) Units exempt from local rent control.--If 
                a dwelling unit for which a housing assistance 
                payment contract is established under this 
                subsection is exempt from local rent control 
                provisions during the term of that contract, 
                the rent for that unit shall be reasonable in 
                comparison with other units in the market area 
                that are exempt from local rent control 
                provisions.
                  (D) Timely payments.--Each public housing 
                agency shall make timely payment of any amounts 
                due to a dwelling unit owner under this 
                subsection. The housing assistance payment 
                contract between the owner and the public 
                housing agency may provide for penalties for 
                the late payment of amounts due under the 
                contract, which shall be imposed on the public 
                housing agency in accordance with generally 
                accepted practices in the local housing market.
                  (E) Penalties.--Unless otherwise authorized 
                by the Secretary, each public housing agency 
                shall pay any penalties from administrative 
                fees collected by the public housing agency, 
                except that no penalty shall be imposed if the 
                late payment is due to factors that the 
                Secretary determines are beyond the control of 
                the public housing agency.
                  (F) Tax credit projects.--In the case of a 
                dwelling unit receiving tax credits pursuant to 
                section 42 of the Internal Revenue Code of 1986 
                or for which assistance is provided under 
                subtitle A of title II of the Cranston Gonzalez 
                National Affordable Housing Act of 1990, for 
                which a housing assistance contract not subject 
                to paragraph (13) of this subsection is 
                established, rent reasonableness shall be 
                determined as otherwise provided by this 
                paragraph, except that--
                          (i) comparison with rent for units in 
                        the private, unassisted local market 
                        shall not be required if the rent is 
                        equal to or less than the rent for 
                        other comparable units receiving such 
                        tax credits or assistance in the 
                        project that are not occupied by 
                        families assisted with tenant-based 
                        assistance under this subsection; and
                          (ii) the rent shall not be considered 
                        reasonable for purposes of this 
                        paragraph if it exceeds the greater 
                        of--
                                  (I) the rents charged for 
                                other comparable units 
                                receiving such tax credits or 
                                assistance in the project that 
                                are not occupied by families 
                                assisted with tenant-based 
                                assistance under this 
                                subsection; and
                                  (II) the payment standard 
                                established by the public 
                                housing agency for a unit of 
                                the size involved.
          (11) Leasing of units owned by pha.--
                  (A) Inspections and rent determinations.--If 
                an eligible family assisted under this 
                subsection leases a dwelling unit (other than a 
                public housing dwelling unit) that is owned by 
                a public housing agency administering 
                assistance under this subsection, the Secretary 
                shall require the unit of general local 
                government or another entity approved by the 
                Secretary, to make inspections required under 
                paragraph (8) and rent determinations required 
                under paragraph (10). The agency shall be 
                responsible for any expenses of such 
                inspections and determinations.
                  (B) Units owned by pha.--For purposes of this 
                subsection, the term ``owned by a public 
                housing agency'' means, with respect to a 
                dwelling unit, that the dwelling unit is in a 
                project that is owned by such agency, by an 
                entity wholly controlled by such agency, or by 
                a limited liability company or limited 
                partnership in which such agency (or an entity 
                wholly controlled by such agency) holds a 
                controlling interest in the managing member or 
                general partner. A dwelling unit shall not be 
                deemed to be owned by a public housing agency 
                for purposes of this subsection because the 
                agency holds a fee interest as ground lessor in 
                the property on which the unit is situated, 
                holds a security interest under a mortgage or 
                deed of trust on the unit, or holds a non-
                controlling interest in an entity which owns 
                the unit or in the managing member or general 
                partner of an entity which owns the unit.
          (12) Assistance for rental of manufactured 
        housing.--
                  (A) In general.--A public housing agency may 
                make assistance payments in accordance with 
                this subsection on behalf of a family that 
                utilizes a manufactured home as a principal 
                place of residenceand rents the real property 
                on which the manufactured home owned by any 
                such family is located.
                  (B) Rent calculation.--
                          (i) Charges included.--For assistance 
                        pursuant to this paragraph, rent shall 
                        mean the sum of the monthly payments 
                        made by a family assisted under this 
                        paragraph to amortize the cost of 
                        purchasing the manufactured home, 
                        including any required insurance and 
                        property taxes, the monthly amount 
                        allowed for tenant-paid utilities, and 
                        the monthly rent charged for the real 
                        property on which the manufactured home 
                        is located, including monthly 
                        management and maintenance charges.
                          (ii) Monthly assistance payment.--The 
                        monthly assistance payment for a family 
                        assisted under this paragraph shall be 
                        determined in accordance with paragraph 
                        (2). If the amount of the monthly 
                        assistance payment for a family exceeds 
                        the monthly rent charged for the real 
                        property on which the manufactured home 
                        is located, including monthly 
                        management and maintenance charges, a 
                        public housing agency may pay the 
                        remainder to the family, lender or 
                        utility company, or may choose to make 
                        a single payment to the family for the 
                        entire monthly assistance amount.
          (13) PHA project-based assistance.--
                  (A) In general.--A public housing agency may 
                use amounts provided under an annual 
                contributions contract under this subsection to 
                enter into a housing assistance payment 
                contract with respect to an existing, newly 
                constructed, or rehabilitated project, that is 
                attached to the project, subject to the 
                limitations and requirements of this paragraph.
                  (B) Percentage limitation.--
                          (i) In general.--Subject to clause 
                        (ii), a public housing agency may use 
                        for project-based assistance under this 
                        paragraph not more than 20 percent of 
                        the authorized units for the agency.
                          (ii) Exception.--A public housing 
                        agency may use up to an additional 10 
                        percent of the authorized units for the 
                        agency for project-based assistance 
                        under this paragraph, to provide units 
                        that house individuals and families 
                        that meet the definition of homeless 
                        under section 103 of the McKinney-Vento 
                        Homeless Assistance Act (42 U.S.C. 
                        11302), that house families with 
                        veterans, that provide supportive 
                        housing to persons with disabilities or 
                        elderly persons, that house eligible 
                        children described in section 
                        6(c)(4)(A)(iii) who comply with the 
                        requirements under section 39(c), or 
                        that are located in areas where 
                        vouchers under this subsection are 
                        difficult to use, as specified in 
                        subparagraph (D)(ii)(II). Any units of 
                        project-based assistance that are 
                        attached to units previously subject to 
                        federally required rent restrictions or 
                        receiving another type of long-term 
                        housing subsidy provided by the 
                        Secretary shall not count toward the 
                        percentage limitation under clause (i) 
                        of this subparagraph. The Secretary 
                        may, by regulation, establish 
                        additional categories for the exception 
                        under this clause.
                  (C) Consistency with pha plan and other 
                goals.--A public housing agency may approve a 
                housing assistance payment contract pursuant to 
                this paragraph only if the contract is 
                consistent with--
                          (i) the public housing agency plan 
                        for the agency approved under section 
                        5A; and
                          (ii) the goal of deconcentrating 
                        poverty and expanding housing and 
                        economic opportunities.
                  (D) Income-mixing requirement.--
                          (i) In general.--Except as provided 
                        in clause (ii), not more than the 
                        greater of 25 dwelling units or 25 
                        percent of the dwelling units in any 
                        project may be assisted under a housing 
                        assistance payment contract for 
                        project-based assistance pursuant to 
                        this paragraph. For purposes of this 
                        subparagraph, the term ``project'' 
                        means a single building, multiple 
                        contiguous buildings, or multiple 
                        buildings on contiguous parcels of 
                        land.
                          (ii) Exceptions.--
                                  (I) Certain families.--The 
                                limitation under clause (i) 
                                shall not apply to dwelling 
                                units assisted under a contract 
                                that are exclusively made 
                                available to elderly families, 
                                to eligible children described 
                                in section 6(c)(4)(A)(iii), or 
                                to households eligible for 
                                supportive services that are 
                                made available to the assisted 
                                residents of the project, 
                                according to standards for such 
                                services the Secretary may 
                                establish.
                                  (II) Certain areas.--With 
                                respect to areas in which 
                                tenant-based vouchers for 
                                assistance under this 
                                subsection are difficult to 
                                use, as determined by the 
                                Secretary, and with respect to 
                                census tracts with a poverty 
                                rate of 20 percent or less, 
                                clause (i) shall be applied by 
                                substituting ``40 percent'' for 
                                ``25 percent'', and the 
                                Secretary may, by regulation, 
                                establish additional 
                                conditions.
                                  (III) Certain contracts.--The 
                                limitation under clause (i) 
                                shall not apply with respect to 
                                contracts or renewal of 
                                contracts under which a greater 
                                percentage of the dwelling 
                                units in a project were 
                                assisted under a housing 
                                assistance payment contract for 
                                project-based assistance 
                                pursuant to this paragraph on 
                                the date of the enactment of 
                                the Housing Opportunity Through 
                                Modernization Act of 2016.
                                  (IV) Certain properties.--Any 
                                units of project-based 
                                assistance under this paragraph 
                                that are attached to units 
                                previously subject to federally 
                                required rent restrictions or 
                                receiving other project-based 
                                assistance provided by the 
                                Secretary shall not count 
                                toward the percentage 
                                limitation imposed by this 
                                subparagraph (D).
                          (iii) Additional monitoring and 
                        oversight requirements.--The Secretary 
                        may establish additional requirements 
                        for monitoring and oversight of 
                        projects in which more than 40 percent 
                        of the dwelling units are assisted 
                        under a housing assistance payment 
                        contract for project-based assistance 
                        pursuant to this paragraph.
                  (E) Resident choice requirement.--A housing 
                assistance payment contract pursuant to this 
                paragraph shall provide as follows:
                          (i) Mobility.--Each low-income family 
                        occupying a dwelling unit assisted 
                        under the contract may move from the 
                        housing at any time after the family 
                        has occupied the dwelling unit for 12 
                        months.
                          (ii) Continued assistance.--Upon such 
                        a move, the public housing agency shall 
                        provide the low-income family with 
                        tenant-based rental assistance under 
                        this section or such other tenant-based 
                        rental assistance that is subject to 
                        comparable income, assistance, rent 
                        contribution, affordability, and other 
                        requirements, as the Secretary shall 
                        provide by regulation. If such rental 
                        assistance is not immediately available 
                        to fulfill the requirement under the 
                        preceding sentence with respect to a 
                        low-income family, such requirement may 
                        be met by providing the family priority 
                        to receive the next voucher or other 
                        tenant-based rental assistance amounts 
                        that become available under the program 
                        used to fulfill such requirement.
                  (F) Contract term.--
                          (i) Term.--A housing assistance 
                        payment contract pursuant to this 
                        paragraph between a public housing 
                        agency and the owner of a project may 
                        have a term of up to 20 years, subject 
                        to--
                                  (I) the availability of 
                                sufficient appropriated funds 
                                for the purpose of renewing 
                                expiring contracts for 
                                assistance payments, as 
                                provided in appropriation Acts 
                                and in the agency's annual 
                                contributions contract with the 
                                Secretary, provided that in the 
                                event of insufficient 
                                appropriated funds, payments 
                                due under contracts under this 
                                paragraph shall take priority 
                                if other cost-saving measures 
                                that do not require the 
                                termination of an existing 
                                contract are available to the 
                                agency; and
                                  (II) compliance with the 
                                inspection requirements under 
                                paragraph (8), except that the 
                                agency shall not be required to 
                                make biennial inspections of 
                                each assisted unit in the 
                                development.
                          (ii) Addition of eligible units.--
                        Subject to the limitations of 
                        subparagraphs (B) and (D), the agency 
                        and the owner may add eligible units 
                        within the same project to a housing 
                        assistance payments contract at any 
                        time during the term thereof without 
                        being subject to any additional 
                        competitive selection procedures.
                          (iii) Housing under construction or 
                        recently constructed.--An agency may 
                        enter into a housing assistance 
                        payments contract with an owner for any 
                        unit that does not qualify as existing 
                        housing and is under construction or 
                        recently has been constructed whether 
                        or not the agency has executed an 
                        agreement to enter into a contract with 
                        the owner, provided that the owner 
                        demonstrates compliance with applicable 
                        requirements prior to execution of the 
                        housing assistance payments contract. 
                        This clause shall not subject a housing 
                        assistance payments contract for 
                        existing housing under this paragraph 
                        to such requirements or otherwise limit 
                        the extent to which a unit may be 
                        assisted as existing housing.
                          (iv) Additional conditions.--The 
                        contract may specify additional 
                        conditions, including with respect to 
                        continuation, termination, or 
                        expiration, and shall specify that upon 
                        termination or expiration of the 
                        contract without extension, each 
                        assisted family may elect to use its 
                        assistance under this subsection to 
                        remain in the same project if its unit 
                        complies with the inspection 
                        requirements under paragraph (8), the 
                        rent for the unit is reasonable as 
                        required by paragraph (10)(A), and the 
                        family pays its required share of the 
                        rent and the amount, if any, by which 
                        the unit rent (including the amount 
                        allowed for tenant-based utilities) 
                        exceeds the applicable payment 
                        standard.
                  (G) Extension of contract term.--A public 
                housing agency may enter into a contract with 
                the owner of a project assisted under a housing 
                assistance payment contract pursuant to this 
                paragraph to extend the term of the underlying 
                housing assistance payment contract for such 
                period as the agency determines to be 
                appropriate to achieve long-term affordability 
                of the housing or to expand housing 
                opportunities. Such contract may, at the 
                election of the public housing agency and the 
                owner of the project, specify that such 
                contract shall be extended for renewal terms of 
                up to 20 years each, if the agency makes the 
                determination required by this subparagraph and 
                the owner is in compliance with the terms of 
                the contract. Such a contract shall provide 
                that the extension of such term shall be 
                contingent upon the future availability of 
                appropriated funds for the purpose of renewing 
                expiring contracts for assistance payments, as 
                provided in appropriations Acts, and may 
                obligate the owner to have such extensions of 
                the underlying housing assistance payment 
                contract accepted by the owner and the 
                successors in interest of the owner. A public 
                housing agency may agree to enter into such a 
                contract at the time it enters into the initial 
                agreement for a housing assistance payment 
                contract or at any time thereafter that is 
                before the expiration of the housing assistance 
                payment contract.
                  (H) Rent calculation.--A housing assistance 
                payment contract pursuant to this paragraph 
                shall establish rents for each unit assisted in 
                an amount that does not exceed 110 percent of 
                the applicable fair market rental (or any 
                exception payment standard approved by the 
                Secretary pursuant to paragraph (1)(D)), except 
                that if a contract covers a dwelling unit that 
                has been allocated low-income housing tax 
                credits pursuant to section 42 of the Internal 
                Revenue Code of 1986 (26 U.S.C. 42) and is not 
                located in a qualified census tract (as such 
                term is defined in subsection (d) of such 
                section 42), the rent for such unit may be 
                established at any level that does not exceed 
                the rent charged for comparable units in the 
                building that also receive the low-income 
                housing tax credit but do not have additional 
                rental assistance, except that in the case of a 
                contract unit that has been allocated low-
                income housing tax credits and for which the 
                rent limitation pursuant to such section 42 is 
                less than the amount that would otherwise be 
                permitted under this subparagraph, the rent for 
                such unit may, in the sole discretion of a 
                public housing agency, be established at the 
                higher section 8 rent, subject only to 
                paragraph (10)(A). The rents established by 
                housing assistance payment contracts pursuant 
                to this paragraph may vary from the payment 
                standards established by the public housing 
                agency pursuant to paragraph (1)(B), but shall 
                be subject to paragraph (10)(A).
                  (I) Rent adjustments.--A housing assistance 
                payments contract pursuant to this paragraph 
                entered into after the date of the enactment of 
                the Housing Opportunity Through Modernization 
                Act of 2016 shall provide for annual rent 
                adjustments upon the request of the owner, 
                except that--
                          (i) by agreement of the parties, a 
                        contract may allow a public housing 
                        agency to adjust the rent for covered 
                        units using an operating cost 
                        adjustment factor established by the 
                        Secretary pursuant to section 524(c) of 
                        the Multifamily Assisted Housing Reform 
                        and Affordability Act of 1997 (which 
                        shall not result in a negative 
                        adjustment), in which case the contract 
                        may require an additional adjustment, 
                        if requested, up to the reasonable rent 
                        periodically during the term of the 
                        contract, and shall require such an 
                        adjustment, if requested, upon 
                        extension pursuant to subparagraph (G);
                          (ii) the adjusted rent shall not 
                        exceed the maximum rent permitted under 
                        subparagraph (H);
                          (iii) the contract may provide that 
                        the maximum rent permitted for a 
                        dwelling unit shall not be less than 
                        the initial rent for the dwelling unit 
                        under the initial housing assistance 
                        payments contract covering the units; 
                        and
                          (iv) the provisions of subsection 
                        (c)(2)(C) shall not apply.
                  [(J) Tenant selection.--A public]
                  (J) Tenant selection._
                          (i) Selection and eligibility._A 
                        public  housing agency may select 
                        families to receive project-based 
                        assistance pursuant to this paragraph 
                        from its waiting list for assistance 
                        under this subsection or may permit 
                        owners to select applicants from site-
                        based waiting lists as specified in 
                        this subparagraph. Eligibility for such 
                        project-based assistance shall be 
                        subject to the provisions of section 
                        16(b) that apply to tenant-based 
                        assistance. [The agency or owner may 
                        establish preferences or criteria for 
                        selection for a unit assisted under 
                        this paragraph that]
                          (ii) Preferences for occupancy._The 
                        agency or owner shall establish a 
                        system of preferences or criteria for 
                        selection for a unit assisted under 
                        this section that--
                                  (I) shall provide that the 
                                highest preference shall be 
                                given to otherwise eligible 
                                children who are in foster 
                                care, have attained an age such 
                                that the provision of foster 
                                care for such child will end by 
                                reason of the age of the child 
                                within 6 months, meet the 
                                requirements under clauses (i) 
                                and (ii) of paragraph (1) of 
                                the definition of ``at risk of 
                                homelessness'' in section 91.5 
                                of the Secretary's regulations 
                                (24 C.F.R. 91.5), as in effect 
                                on September 1, 2016, and have 
                                agreed to comply with the 
                                requirements under section 
                                39(c); and 
                                  (II) may provide highest 
                                preference to, in addition to 
                                eligible children described in 
                                subclause (I), not more than 
                                two other types of eligible 
                                families; and 
                                  (III) except as provided 
                                under subclause (I),  are 
                                consistent with the public 
                                housing agency plan for the 
                                agency approved under section 
                                5A and that give preference to 
                                families who qualify for 
                                voluntary services, including 
                                disability-specific services, 
                                offered in conjunction with 
                                assisted units. [Any family 
                                that]
                          (iii) Waiting lists._Any family that  
                        rejects an offer of project-based 
                        assistance under this paragraph or that 
                        is rejected for admission to a project 
                        by the owner or manager of a project 
                        assisted under this paragraph shall 
                        retain its place on the waiting list as 
                        if the offer had not been made. A 
                        public housing agency may establish and 
                        utilize procedures for owner-maintained 
                        site-based waiting lists, under which 
                        applicants may apply at, or otherwise 
                        designate to the public housing agency, 
                        the project or projects in which they 
                        seek to reside, except that all 
                        eligible applicants on the waiting list 
                        of an agency for assistance under this 
                        subsection shall be permitted to place 
                        their names on such separate list, 
                        subject to policies and procedures 
                        established by the Secretary. All such 
                        procedures shall comply with title VI 
                        of the Civil Rights Act of 1964, the 
                        Fair Housing Act, section 504 of the 
                        Rehabilitation Act of 1973, and other 
                        applicable civil rights laws. The owner 
                        or manager of a project assisted under 
                        this paragraph shall not admit any 
                        family to a dwelling unit assisted 
                        under a contract pursuant to this 
                        paragraph other than a family referred 
                        by the public housing agency from its 
                        waiting list, or a family on a site-
                        based waiting list that complies with 
                        the requirements of this subparagraph. 
                        A public housing agency shall disclose 
                        to each applicant all other options in 
                        the selection of a project in which to 
                        reside that are provided by the public 
                        housing agency and are available to the 
                        applicant.
                  (K) Vacated units.--Notwithstanding paragraph 
                (9), a housing assistance payment contract 
                pursuant to this paragraph may provide as 
                follows:
                          (i) Payment for vacant units.--That 
                        the public housing agency may, in its 
                        discretion, continue to provide 
                        assistance under the contract, for a 
                        reasonable period not exceeding 60 
                        days, for a dwelling unit that becomes 
                        vacant, but only: (I) if the vacancy 
                        was not the fault of the owner of the 
                        dwelling unit; and (II) the agency and 
                        the owner take every reasonable action 
                        to minimize the likelihood and extent 
                        of any such vacancy. Rental assistance 
                        may not be provided for a vacant unit 
                        after the expiration of such period.
                          (ii) Reduction of contract.--That, if 
                        despite reasonable efforts of the 
                        agency and the owner to fill a vacant 
                        unit, no eligible family has agreed to 
                        rent the unit within 120 days after the 
                        owner has notified the agency of the 
                        vacancy, the agency may reduce its 
                        housing assistance payments contract 
                        with the owner by the amount equivalent 
                        to the remaining months of subsidy 
                        attributable to the vacant unit. 
                        Amounts deobligated pursuant to such a 
                        contract provision shall be available 
                        to the agency to provide assistance 
                        under this subsection.
                Eligible applicants for assistance under this 
                subsection may enforce provisions authorized by 
                this subparagraph.
                  (L) Use in cooperative housing and elevator 
                buildings.--A public housing agency may enter 
                into a housing assistance payments contract 
                under this paragraph with respect to--
                          (i) dwelling units in cooperative 
                        housing; and
                          (ii) notwithstanding subsection (c), 
                        dwelling units in a high-rise elevator 
                        project, including such a project that 
                        is occupied by families with children, 
                        without review and approval of the 
                        contract by the Secretary.
                  (M) Reviews.--
                          (i) Subsidy layering.--A subsidy 
                        layering review in accordance with 
                        section 102(d) of the Department of 
                        Housing and Urban Development Reform 
                        Act of 1989 (42 U.S.C. 3545(d)) shall 
                        not be required for assistance under 
                        this paragraph in the case of a housing 
                        assistance payments contract for an 
                        existing project, or if a subsidy 
                        layering review has been conducted by 
                        the applicable State or local agency.
                          (ii) Environmental review.--A public 
                        housing agency shall not be required to 
                        undertake any environmental review 
                        before entering into a housing 
                        assistance payments contract under this 
                        paragraph for an existing project, 
                        except to the extent such a review is 
                        otherwise required by law or regulation 
                        relating to funding other than housing 
                        assistance payments.
                  (N) Structure owned by agency.--A public 
                housing agency engaged in an initiative to 
                improve, develop, or replace a public housing 
                property or site may attach assistance to an 
                existing, newly constructed, or rehabilitated 
                structure in which the agency has an ownership 
                interest or which the agency has control of 
                without following a competitive process, 
                provided that the agency has notified the 
                public of its intent through its public housing 
                agency plan and subject to the limitations and 
                requirements of this paragraph.
                  (O) Special purpose vouchers.--A public 
                housing agency that administers vouchers 
                authorized under subsection (o)(19) or (x) of 
                this section may provide such assistance in 
                accordance with the limitations and 
                requirements of this paragraph, without 
                additional requirements for approval by the 
                Secretary.
          (14) Inapplicability to tenant-based assistance.--
        Subsection (c) shall not apply to tenant-based 
        assistance under this subsection.
          (15) Homeownership option.--
                  (A) In general.--A public housing agency 
                providing assistance under this subsection may, 
                at the option of the agency, provide assistance 
                for homeownership under subsection (y).
                  (B) Alternative administration.--A public 
                housing agency may contract with a nonprofit 
                organization to administer a homeownership 
                program under subsection (y).
          (16) Rental vouchers for relocation of witnesses and 
        victims of crime.--
                  (A) Witnesses.--Of amounts made available for 
                assistance under this subsection in each fiscal 
                year, the Secretary, in consultation with the 
                Inspector General, shall make available such 
                sums as may be necessary for the relocation of 
                witnesses in connection with efforts to combat 
                crime in public and assisted housing pursuant 
                to requests from law enforcement or prosecution 
                agencies.
                  (B) Victims of crime.--
                          (i) In general.--Of amounts made 
                        available for assistance under this 
                        section in each fiscal year, the 
                        Secretary shall make available such 
                        sums as may be necessary for the 
                        relocation of families residing in 
                        public housing who are victims of a 
                        crime of violence (as that term is 
                        defined in section 16 of title 18, 
                        United States Code) that has been 
                        reported to an appropriate law 
                        enforcement agency.
                          (ii) Notice.--A public housing agency 
                        that receives amounts under this 
                        subparagraph shall establish procedures 
                        for providing notice of the 
                        availability of that assistance to 
                        families that may be eligible for that 
                        assistance.
          (17) Deed restrictions.--Assistance under this 
        subsection may not be used in any manner that abrogates 
        any local deed restriction that applies to any housing 
        consisting of 1 to 4 dwelling units. This paragraph may 
        not be construed to affect the provisions or 
        applicability of the Fair Housing Act.
          (18) Rental assistance for assisted living 
        facilities.--
                  (A) In general.--A public housing agency may 
                make assistance payments on behalf of a family 
                that uses an assisted living facility as a 
                principal place of residence and that uses such 
                supportive services made available in the 
                facility as the agency may require. Such 
                payments may be made only for covering costs of 
                rental of the dwelling unit in the assisted 
                living facility and not for covering any 
                portion of the cost of residing in such 
                facility that is attributable to service 
                relating to assisted living.
                  (B) Rent calculation.--
                          (i) Charges included.--For assistance 
                        pursuant to this paragraph, the rent of 
                        the dwelling unit that is an assisted 
                        living facility with respect to which 
                        assistance payments are made shall 
                        include maintenance and management 
                        charges related to the dwelling unit 
                        and tenant-paid utilities. Such rent 
                        shall not include any charges 
                        attributable to services relating to 
                        assisted living.
                          (ii) Payment standard.--In 
                        determining the monthly assistance that 
                        may be paid under this paragraph on 
                        behalf of any family residing in an 
                        assisted living facility, the public 
                        housing agency shall utilize the 
                        payment standard established under 
                        paragraph (1), for the market area in 
                        which the assisted living facility is 
                        located, for the applicable size 
                        dwelling unit.
                          (iii) Monthly assistance payment.--
                        The monthly assistance payment for a 
                        family assisted under this paragraph 
                        shall be determined in accordance with 
                        paragraph (2) (using the rent and 
                        payment standard for the dwelling unit 
                        as determined in accordance with this 
                        subsection), except that a family may 
                        be required at the time the family 
                        initially receives such assistance to 
                        pay rent in an amount exceeding 40 
                        percent of the monthly adjusted income 
                        of the family by such an amount or 
                        percentage that is reasonable given the 
                        services and amenities provided and as 
                        the Secretary deems appropriate..
                  (C) Definition.--For the purposes of this 
                paragraph, the term ``assisted living 
                facility'' has the meaning given that term in 
                section 232(b) of the National Housing Act (12 
                U.S.C. 1715w(b)), except that such a facility 
                may be contained within a portion of a larger 
                multifamily housing project.
          (19) Rental vouchers for veterans affairs supported 
        housing program.--
                  (A) Set aside.--Subject to subparagraph (C), 
                the Secretary shall set aside, from amounts 
                made available for rental assistance under this 
                subsection, the amounts specified in 
                subparagraph (B) for use only for providing 
                such assistance through a supported housing 
                program administered in conjunction with the 
                Department of Veterans Affairs. Such program 
                shall provide rental assistance on behalf of 
                homeless veterans who have chronic mental 
                illnesses or chronic substance use disorders, 
                shall require agreement of the veteran to 
                continued treatment for such mental illness or 
                substance use disorder as a condition of 
                receipt of such rental assistance, and shall 
                ensure such treatment and appropriate case 
                management for each veteran receiving such 
                rental assistance.
                  (B) Amount.--The amount specified in this 
                subparagraph is--
                          (i) for fiscal year 2007, the amount 
                        necessary to provide 500 vouchers for 
                        rental assistance under this 
                        subsection;
                          (ii) for fiscal year 2008, the amount 
                        necessary to provide 1,000 vouchers for 
                        rental assistance under this 
                        subsection;
                          (iii) for fiscal year 2009, the 
                        amount necessary to provide 1,500 
                        vouchers for rental assistance under 
                        this subsection;
                          (iv) for fiscal year 2010, the amount 
                        necessary to provide 2,000 vouchers for 
                        rental assistance under this 
                        subsection; and
                          (v) for fiscal year 2011, the amount 
                        necessary to provide 2,500 vouchers for 
                        rental assistance under this 
                        subsection.
                  (C) Funding through incremental assistance.--
                In any fiscal year, to the extent that this 
                paragraph requires the Secretary to set aside 
                rental assistance amounts for use under this 
                paragraph in an amount that exceeds the amount 
                set aside in the preceding fiscal year, such 
                requirement shall be effective only to such 
                extent or in such amounts as are or have been 
                provided in appropriation Acts for such fiscal 
                year for incremental rental assistance under 
                this subsection.
          (20) Collection of utility data.--
                  (A) Publication.--The Secretary shall, to the 
                extent that data can be collected cost 
                effectively, regularly publish such data 
                regarding utility consumption and costs in 
                local areas as the Secretary determines will be 
                useful for the establishment of allowances for 
                tenant-paid utilities for families assisted 
                under this subsection.
                  (B) Use of data.--The Secretary shall provide 
                such data in a manner that--
                          (i) avoids unnecessary administrative 
                        burdens for public housing agencies and 
                        owners; and
                          (ii) protects families in various 
                        unit sizes and building types, and 
                        using various utilities, from high rent 
                        and utility cost burdens relative to 
                        income.
  (p) In order to assist elderly families (as defined in 
section 3(b)(3)) who elect to live in a shared housing 
arrangement in which they benefit as a result of sharing the 
facilities of a dwelling with others in a manner that 
effectively and efficiently meets their housing needs and 
thereby reduces their costs of housing, the Secretary shall 
permit assistance provided under the existing housing and 
moderate rehabilitation programs to be used by such families in 
such arrangements. In carrying out this subsection, the 
Secretary shall issue minimum habitability standards for the 
purpose of assuring decent, safe, and sanitary housing for such 
families while taking into account the special circumstances of 
shared housing.
  (q) Administrative Fees.--
          (1) Fee for ongoing costs of administration.--
                  (A) In general.--The Secretary shall 
                establish fees for the costs of administering 
                the tenant-based assistance, certificate, 
                voucher, and moderate rehabilitation programs 
                under this section.
                  (B) Fiscal year 1999.--
                          (i) Calculation.--For fiscal year 
                        1999, the fee for each month for which 
                        a dwelling unit is covered by an 
                        assistance contract shall be--
                                  (I) in the case of a public 
                                housing agency that, on an 
                                annual basis, is administering 
                                a program for not more than 600 
                                dwelling units, 7.65 percent of 
                                the base amount; and
                                  (II) in the case of an agency 
                                that, on an annual basis, is 
                                administering a program for 
                                more than 600 dwelling units 
                                (aa) for the first 600 units, 
                                7.65 percent of the base 
                                amount, and (bb) for any 
                                additional dwelling units under 
                                the program, 7.0 percent of the 
                                base amount.
                          (ii) Base amount.--For purposes of 
                        this subparagraph, the base amount 
                        shall be the higher of--
                                  (I) the fair market rental 
                                established under section 8(c) 
                                of this Act (as in effect 
                                immediately before the 
                                effective date under section 
                                503(a) of the Quality Housing 
                                and Work Responsibility Act of 
                                1998) for fiscal year 1993 for 
                                a 2-bedroom existing rental 
                                dwelling unit in the market 
                                area of the agency, and
                                  (II) the amount that is the 
                                lesser of (aa) such fair market 
                                rental for fiscal year 1994, or 
                                (bb) 103.5 percent of the 
                                amount determined under clause 
                                (i),
                        adjusted based on changes in wage data 
                        or other objectively measurable data 
                        that reflect the costs of administering 
                        the program, as determined by the 
                        Secretary. The Secretary may require 
                        that the base amount be not less than a 
                        minimum amount and not more than a 
                        maximum amount.
                  (C) Subsequent fiscal years.--For subsequent 
                fiscal years, the Secretary shall publish a 
                notice in the Federal Register, for each 
                geographic area, establishing the amount of the 
                fee that would apply for public housing 
                agencies administering the program, based on 
                changes in wage data or other objectively 
                measurable data that reflect the costs of 
                administering the program, as determined by the 
                Secretary.
                  (D) Increase.--The Secretary may increase the 
                fee if necessary to reflect the higher costs of 
                administering small programs and programs 
                operating over large geographic areas.
                  (E) Decrease.--The Secretary may decrease the 
                fee for units owned by a public housing agency 
                to reflect reasonable costs of administration.
          (2) Fee for preliminary expenses.--The Secretary 
        shall also establish reasonable fees (as determined by 
        the Secretary) for--
                  (A) the costs of preliminary expenses, in the 
                amount of $500, for a public housing agency, 
                except that such fee shall apply to an agency 
                only in the first year that the agency 
                administers a tenant-based assistance program 
                under this section, and only if, immediately 
                before the effective date under section 503(a) 
                of the Quality Housing and Work Responsibility 
                Act of 1998, the agency was not administering a 
                tenant-based assistance program under the 
                United States Housing Act of 1937 (as in effect 
                immediately before such effective date), in 
                connection with its initial increment of 
                assistance received;
                  (B) the costs incurred in assisting families 
                who experience difficulty (as determined by the 
                Secretary) in obtaining appropriate housing 
                under the programs; and
                  (C) extraordinary costs approved by the 
                Secretary.
          (3) Transfer of fees in cases of concurrent 
        geographical jurisdiction.--In each fiscal year, if any 
        public housing agency provides tenant-based assistance 
        under this section on behalf of a family who uses such 
        assistance for a dwelling unit that is located within 
        the jurisdiction of such agency but is also within the 
        jurisdiction of another public housing agency, the 
        Secretary shall take such steps as may be necessary to 
        ensure that the public housing agency that provides the 
        services for a family receives all or part of the 
        administrative fee under this section (as appropriate).
          (4) Applicability.--This subsection shall apply to 
        fiscal year 1999 and fiscal years thereafter.
  (r) Portability.--(1) In general.--(A) Any family receiving 
tenant-based assistance under subsection (o) may receive such 
assistance to rent an eligible dwelling unit if the dwelling 
unit to which the family moves is within any area in which a 
program is being administered under this section.
  (B)(i) Notwithstanding subparagraph (A) and subject to any 
exceptions established under clause (ii) of this subparagraph, 
a public housing agency may require that any family not living 
within the jurisdiction of the public housing agency at the 
time the family applies for assistance from the agency shall, 
during the 12-month period beginning on the date of initial 
receipt of housing assistance made available on behalf of the 
family from such agency, lease and occupy an eligible dwelling 
unit located within the jurisdiction served by the agency.
  (ii) The Secretary may establish such exceptions to the 
authority of public housing agencies established under clause 
(i).
  (2) The public housing agency having authority with respect 
to the dwelling unit to which a family moves under this 
subsection shall have the responsibility of carrying out the 
provisions of this subsection with respect to the family.
  (3) In providing assistance under subsection (o) for any 
fiscal year, the Secretary shall give consideration to any 
reduction in the number of resident families incurred by a 
public housing agency in the preceding fiscal year as a result 
of the provisions of this subsection. The Secretary shall 
establish procedures for the compensation of public housing 
agencies that issue vouchers to families that move into or out 
of the jurisdiction of the public housing agency under 
portability procedures. The Secretary may reserve amounts 
available for assistance under subsection (o) to compensate 
those public housing agencies.
  (4) The provisions of this subsection may not be construed to 
restrict any authority of the Secretary under any other 
provision of law to provide for the portability of assistance 
under this section.
  (5) Lease violations.--A family may not receive a voucher 
from a public housing agency and move to another jurisdiction 
under the tenant-based assistance program if the family has 
moved out of the assisted dwelling unit of the family in 
violation of a lease, except that a family may receive a 
voucher from a public housing agency and move to another 
jurisdiction under the tenant-based assistance program if the 
family has complied with all other obligations of the section 8 
program and has moved out of the assisted dwelling unit in 
order to protect the health or safety of an individual who is 
or has been the victim of domestic violence, dating violence, 
or stalking and who reasonably believed he or she was 
imminently threatened by harm from further violence if he or 
she remained in the assisted dwelling unit.
  (s) In selecting families for the provision of assistance 
under this section (including subsection (o)), a public housing 
agency may not exclude or penalize a family solely because the 
family resides in a public housing project.
  (t) Enhanced Vouchers.--
          (1) In general.--Enhanced voucher assistance under 
        this subsection for a family shall be voucher 
        assistance under subsection (o), except that under such 
        enhanced voucher assistance--
                  (A) subject only to subparagraph (D), the 
                assisted family shall pay as rent no less than 
                the amount the family was paying on the date of 
                the eligibility event for the project in which 
                the family was residing on such date;
                  (B) the assisted family may elect to remain 
                in the same project in which the family was 
                residing on the date of the eligibility event 
                for the project, and if, during any period the 
                family makes such an election and continues to 
                so reside, the rent for the dwelling unit of 
                the family in such project exceeds the 
                applicable payment standard established 
                pursuant to subsection (o) for the unit, the 
                amount of rental assistance provided on behalf 
                of the family shall be determined using a 
                payment standard that is equal to the rent for 
                the dwelling unit (as such rent may be 
                increased from time-to-time), subject to 
                paragraph (10)(A) of subsection (o) and any 
                other reasonable limit prescribed by the 
                Secretary, except that a limit shall not be 
                considered reasonable for purposes of this 
                subparagraph if it adversely affects such 
                assisted families;
                  (C) subparagraph (B) of this paragraph shall 
                not apply and the payment standard for the 
                dwelling unit occupied by the family shall be 
                determined in accordance with subsection (o) 
                if--
                          (i) the assisted family moves, at any 
                        time, from such project; or
                          (ii) the voucher is made available 
                        for use by any family other than the 
                        original family on behalf of whom the 
                        voucher was provided; and
                  (D) if the annual adjusted income of the 
                assisted family declines to a significant 
                extent, the percentage of annual adjusted 
                income paid by the family for rent shall not 
                exceed the greater of 30 percent or the 
                percentage of annual adjusted income paid at 
                the time of the eligibility event for the 
                project.
          (2) Eligibility event.--For purposes of this 
        subsection, the term ``eligibility event'' means, with 
        respect to a multifamily housing project, the 
        prepayment of the mortgage on such housing project, the 
        voluntary termination of the insurance contract for the 
        mortgage for such housing project (including any such 
        mortgage prepayment during fiscal year 1996 or a fiscal 
        year thereafter or any insurance contract voluntary 
        termination during fiscal year 1996 or a fiscal year 
        thereafter), the termination or expiration of the 
        contract for rental assistance under section 8 of the 
        United States Housing Act of 1937 for such housing 
        project (including any such termination or expiration 
        during fiscal years after fiscal year 1994 prior to the 
        effective date of the Departments of Veterans Affairs 
        and Housing and Urban Development, and Independent 
        Agencies Appropriations Act, 2001), or the transaction 
        under which the project is preserved as affordable 
        housing, that, under paragraphs (3) and (4) of section 
        515(c), section 524(d) of the Multifamily Assisted 
        Housing Reform and Affordability Act of 1997 (42 U.S.C. 
        1437f note), section 223(f) of the Low-Income Housing 
        Preservation and Resident Homeownership Act of 1990 (12 
        U.S.C. 4113(f)), or section 201(p) of the Housing and 
        Community Development Amendments of 1978 (12 U.S.C. 
        1715z-1a(p)), results in tenants in such housing 
        project being eligible for enhanced voucher assistance 
        under this subsection.
          (3) Treatment of enhanced vouchers provided under 
        other authority.--
                  (A) In general.--Notwithstanding any other 
                provision of law, any enhanced voucher 
                assistance provided under any authority 
                specified in subparagraph (B) shall (regardless 
                of the date that the amounts for providing such 
                assistance were made available) be treated, and 
                subject to the same requirements, as enhanced 
                voucher assistance under this subsection.
                  (B) Identification of other authority.--The 
                authority specified in this subparagraph is the 
                authority under--
                          (i) the 10th, 11th, and 12th provisos 
                        under the ``Preserving Existing Housing 
                        Investment'' account in title II of the 
                        Departments of Veterans Affairs and 
                        Housing and Urban Development, and 
                        Independent Agencies Appropriations 
                        Act, 1997 (Public Law 104-204; 110 
                        Stat. 2884), pursuant to such provisos, 
                        the first proviso under the ``Housing 
                        Certificate Fund'' account in title II 
                        of the Departments of Veterans Affairs 
                        and Housing and Urban Development, and 
                        Independent Agencies Appropriations 
                        Act, 1998 (Public Law 105-65; 111 Stat. 
                        1351), or the first proviso under the 
                        ``Housing Certificate Fund'' account in 
                        title II of the Departments of Veterans 
                        Affairs and Housing and Urban 
                        Development, and Independent Agencies 
                        Appropriations Act, 1999 (Public Law 
                        105-276; 112 Stat. 2469); and
                          (ii) paragraphs (3) and (4) of 
                        section 515(c) of the Multifamily 
                        Assisted Housing Reform and 
                        Affordability Act of 1997 (42 U.S.C. 
                        1437f note), as in effect before the 
                        enactment of this Act.
          (4) Authorization of appropriations.--There are 
        authorized to be appropriated for each of fiscal years 
        2000, 2001, 2002, 2003, and 2004 such sums as may be 
        necessary for enhanced voucher assistance under this 
        subsection.
  (u) In the case of low-income families living in rental 
projects rehabilitated under section 17 of this Act or section 
533 of the Housing Act of 1949 before rehabilitation--
          (1) vouchers under this section shall be made for 
        families who are required to move out of their units 
        because of the physical rehabilitation activities or 
        because of overcrowding;
          (2) at the discretion of each public housing agency 
        or other agency administering the allocation of 
        assistance or vouchers under this section may be made 
        for families who would have to pay more than 30 percent 
        of their adjusted income for rent after rehabilitation 
        whether they choose to remain in, or to move from, the 
        project; and
          (3) the Secretary shall allocate assistance for 
        vouchers under this section to ensure that sufficient 
        resources are available to address the physical or 
        economic displacement, or potential economic 
        displacement, of existing tenants pursuant to 
        paragraphs (1) and (2).
  (v) The Secretary may extend expiring contracts entered into 
under this section for project-based loan management assistance 
to the extent necessary to prevent displacement of low-income 
families receiving such assistance as of September 30, 1996.
  (x) Family Unification.--
          (1) Increase in budget authority.--The budget 
        authority available under section 5(c) for assistance 
        under section 8(b) is authorized to be increased by 
        $100,000,000 on or after October 1, 1992, and by 
        $104,200,000 on or after October 1, 1993.
          (2) Use of funds.--The amounts made available under 
        this subsection shall be used only in connection with 
        tenant-based assistance under section 8 on behalf of 
        (A) any family (i) who is otherwise eligible for such 
        assistance, and (ii) who the public child welfare 
        agency for the jurisdiction has certified is a family 
        for whom the lack of adequate housing is a primary 
        factor in the imminent placement of the family's child 
        or children in out-of-home care or the delayed 
        discharge of a child or children to the family from 
        out-of-home care and (B) for a period not to exceed 36 
        months, otherwise eligible youths who have attained at 
        least 18 years of age and not more than 24 years of age 
        and who have left foster care, or will leave foster 
        care within 90 days, in accordance with a transition 
        plan described in section 475(5)(H)of the Social 
        Security Act, and is homeless or is at riskof becoming 
        homeless at age 16 or older.
          (3) Allocation.--The amounts made available under 
        this subsection shall be allocated by the Secretary 
        through a national competition among applicants based 
        on demonstrated need for assistance under this 
        subsection. To be considered for assistance, an 
        applicant shall submit to the Secretary a written 
        proposal containing a report from the public child 
        welfare agency serving the jurisdiction of the 
        applicant that describes how a lack of adequate housing 
        in the jurisdiction is resulting in the initial or 
        prolonged separation of children from their families, 
        and how the applicant will coordinate with the public 
        child welfare agency to identify eligible families and 
        provide the families with assistance under this 
        subsection.
          (4) Coordination between public housing agencies and 
        public child welfare agencies.--The Secretary shall, 
        not later than the expiration of the 180-day period 
        beginning on the date of the enactment of the Housing 
        Opportunity Through Modernization Act of 2016 and after 
        consultation with other appropriate Federal agencies, 
        issue guidance to improve coordination between public 
        housing agencies and public child welfare agencies in 
        carrying out the program under this subsection, which 
        shall provide guidance on--
                  (A) identifying eligible recipients for 
                assistance under this subsection;
                  (B) coordinating with other local youth and 
                family providers in the community and 
                participating in the Continuum of Care program 
                established under subtitle C of title IV of the 
                McKinney-Vento Homeless Assistance Act (42 
                U.S.C. 11381 et seq.);
                  (C) implementing housing strategies to assist 
                eligible families and youth;
                  (D) aligning system goals to improve outcomes 
                for families and youth and reducing lapses in 
                housing for families and youth; and
                  (E) identifying resources that are available 
                to eligible families and youth to provide 
                supportive services available through parts B 
                and E of title IV of the Social Security Act 
                (42 U.S.C. 621 et seq.; 670 et seq.) or that 
                the head of household of a family or youth may 
                be entitled to receive under section 477 of the 
                Social Security Act (42 U.S.C. 677).
          (5) Definitions.--For purposes of this subsection:
                  (A) Applicant.--The term ``applicant'' means 
                a public housing agency or any other agency 
                responsible for administering assistance under 
                section 8.
                  (B) Public child welfare agency.--The term 
                ``public child welfare agency'' means the 
                public agency responsible under applicable 
                State law for determining that a child is at 
                imminent risk of placement in out-of-home care 
                or that a child in out-of-home care under the 
                supervision of the public agency may be 
                returned to his or her family.
  (y) Homeownership Option.--
          (1) Use of assistance for homeownership.--A public 
        housing agency providing tenant-based assistance on 
        behalf of an eligible family under this section may 
        provide assistance for an eligible family that 
        purchases a dwelling unit (including a unit under a 
        lease-purchase agreement) that will be owned by 1 or 
        more members of the family, and will be occupied by the 
        family, if the family--
                  (A) is a first-time homeowner, or owns or is 
                acquiring shares in a cooperative;
                  (B) demonstrates that the family has income 
                from employment or other sources (other than 
                public assistance, except that the Secretary 
                may provide for the consideration of public 
                assistance in the case of an elderly family or 
                a disabled family), as determined in accordance 
                with requirements of the Secretary, that is not 
                less than twice the payment standard 
                established by the public housing agency (or 
                such other amount as may be established by the 
                Secretary);
                  (C) except as provided by the Secretary, 
                demonstrates at the time the family initially 
                receives tenant-based assistance under this 
                subsection that one or more adult members of 
                the family have achieved employment for the 
                period as the Secretary shall require;
                  (D) participates in a homeownership and 
                housing counseling program provided by the 
                agency; and
                  (E) meets any other initial or continuing 
                requirements established by the public housing 
                agency in accordance with requirements 
                established by the Secretary.
          (2) Determination of amount of assistance.--
                  (A) Monthly expenses not exceeding payment 
                standard.--If the monthly homeownership 
                expenses, as determined in accordance with 
                requirements established by the Secretary, do 
                not exceed the payment standard, the monthly 
                assistance payment shall be the amount by which 
                the homeownership expenses exceed the highest 
                of the following amounts, rounded to the 
                nearest dollar:
                          (i) 30 percent of the monthly 
                        adjusted income of the family.
                          (ii) 10 percent of the monthly income 
                        of the family.
                          (iii) If the family is receiving 
                        payments for welfare assistance from a 
                        public agency, and a portion of those 
                        payments, adjusted in accordance with 
                        the actual housing costs of the family, 
                        is specifically designated by that 
                        agency to meet the housing costs of the 
                        family, the portion of those payments 
                        that is so designated.
                  (B) Monthly expenses exceed payment 
                standard.--If the monthly homeownership 
                expenses, as determined in accordance with 
                requirements established by the Secretary, 
                exceed the payment standard, the monthly 
                assistance payment shall be the amount by which 
                the applicable payment standard exceeds the 
                highest of the amounts under clauses (i), (ii), 
                and (iii) of subparagraph (A).
          (3) Inspections and contract conditions.--
                  (A) In general.--Each contract for the 
                purchase of a unit to be assisted under this 
                section shall--
                          (i) provide for pre-purchase 
                        inspection of the unit by an 
                        independent professional; and
                          (ii) require that any cost of 
                        necessary repairs be paid by the 
                        seller.
                  (B) Annual inspections not required.--The 
                requirement under subsection (o)(8)(A)(ii) for 
                annual inspections shall not apply to units 
                assisted under this section.
          (4) Other authority of the secretary.--The Secretary 
        may--
                  (A) limit the term of assistance for a family 
                assisted under this subsection; and
                  (B) modify the requirements of this 
                subsection as the Secretary determines to be 
                necessary to make appropriate adaptations for 
                lease-purchase agreements.
          (5) Inapplicability of certain provisions.--
        Assistance under this subsection shall not be subject 
        to the requirements of the following provisions:
                  (A) Subsection (c)(3)(B) of this section.
                  (B) Subsection (d)(1)(B)(i) of this section.
                  (C) Any other provisions of this section 
                governing maximum amounts payable to owners and 
                amounts payable by assisted families.
                  (D) Any other provisions of this section 
                concerning contracts between public housing 
                agencies and owners.
                  (E) Any other provisions of this Act that are 
                inconsistent with the provisions of this 
                subsection.
          (6) Reversion to rental status.--
                  (A) FHA-insured mortgages.--If a family 
                receiving assistance under this subsection for 
                occupancy of a dwelling defaults under a 
                mortgage for the dwelling insured by the 
                Secretary under the National Housing Act, the 
                family may not continue to receive rental 
                assistance under this section unless the family 
                (i) transfers to the Secretary marketable title 
                to the dwelling, (ii) moves from the dwelling 
                within the period established or approved by 
                the Secretary, and (iii) agrees that any 
                amounts the family is required to pay to 
                reimburse the escrow account under section 
                23(d)(3) may be deducted by the public housing 
                agency from the assistance payment otherwise 
                payable on behalf of the family.
                  (B) Other mortgages.--If a family receiving 
                assistance under this subsection defaults under 
                a mortgage not insured under the National 
                Housing Act, the family may not continue to 
                receive rental assistance under this section 
                unless it complies with requirements 
                established by the Secretary.
                  (C) All mortgages.--A family receiving 
                assistance under this subsection that defaults 
                under a mortgage may not receive assistance 
                under this subsection for occupancy of another 
                dwelling owned by one or more members of the 
                family.
          (7) Downpayment assistance.--
                  (A) Authority.--A public housing agency may, 
                in lieu of providing monthly assistance 
                payments under this subsection on behalf of a 
                family eligible for such assistance and at the 
                discretion of the public housing agency, 
                provide assistance for the family in the form 
                of a single grant to be used only as a 
                contribution toward the downpayment required in 
                connection with the purchase of a dwelling for 
                fiscal year 2000 and each fiscal year 
                thereafter to the extent provided in advance in 
                appropriations Acts.
                  (B) Amount.--The amount of a downpayment 
                grant on behalf of an assisted family may not 
                exceed the amount that is equal to the sum of 
                the assistance payments that would be made 
                during the first year of assistance on behalf 
                of the family, based upon the income of the 
                family at the time the grant is to be made.
          (8) Definition of first-time homeowner.--For purposes 
        of this subsection, the term ``first-time homeowner'' 
        means--
                  (A) a family, no member of which has had a 
                present ownership interest in a principal 
                residence during the 3 years preceding the date 
                on which the family initially receives 
                assistance for homeownership under this 
                subsection; and
                  (B) any other family, as the Secretary may 
                prescribe.
  (z) Termination of Section 8 Contracts and Reuse of 
Recaptured Budget Authority.--
          (1) General authority.--The Secretary may reuse any 
        budget authority, in whole or part, that is recaptured 
        on account of expiration or termination of a housing 
        assistance payments contract only for one or more of 
        the following:
                  (A) Tenant-based assistance.--Pursuant to a 
                contract with a public housing agency, to 
                provide tenant-based assistance under this 
                section to families occupying units formerly 
                assisted under the terminated contract.
                  (B) Project-based assistance.--Pursuant to a 
                contract with an owner, to attach assistance to 
                one or more structures under this section, for 
                relocation of families occupying units formerly 
                assisted under the terminated contract.
          (2) Families occupying units formerly assisted under 
        terminated contract.--Pursuant to paragraph (1), the 
        Secretary shall first make available tenant- or 
        project-based assistance to families occupying units 
        formerly assisted under the terminated contract. The 
        Secretary shall provide project-based assistance in 
        instances only where the use of tenant-based assistance 
        is determined to be infeasible by the Secretary.
  (aa) Refinancing Incentive.--
          (1) In general.--The Secretary may pay all or a part 
        of the up front costs of refinancing for each project 
        that--
                  (A) is constructed, substantially 
                rehabilitated, or moderately rehabilitated 
                under this section;
                  (B) is subject to an assistance contract 
                under this section; and
                  (C) was subject to a mortgage that has been 
                refinanced under section 223(a)(7) or section 
                223(f) of the National Housing Act to lower the 
                periodic debt service payments of the owner.
          (2) Share from reduced assistance payments.--The 
        Secretary may pay the up front cost of refinancing 
        only--
                  (A) to the extent that funds accrue to the 
                Secretary from the reduced assistance payments 
                that results from the refinancing; and
                  (B) after the application of amounts in 
                accordance with section 1012 of the Stewart B. 
                McKinney Homeless Assistance Amendments Act of 
                1988.
  (bb) Transfer, Reuse, and Rescission of Budget Authority.--
          (1) Transfer of Budget Authority.--If an assistance 
        contract under this section, other than a contract for 
        tenant-based assistance, is terminated or is not 
        renewed, or if the contract expires, the Secretary 
        shall, in order to provide continued assistance to 
        eligible families, including eligible families 
        receiving the benefit of the project-based assistance 
        at the time of the termination, transfer any budget 
        authority remaining in the contract to another 
        contract. The transfer shall be under such terms as the 
        Secretary may prescribe.
          (2) Reuse and rescission of certain recaptured budget 
        authority.--Notwithstanding paragraph (1), if a 
        project-based assistance contract for an eligible 
        multifamily housing project subject to actions 
        authorized under title I is terminated or amended as 
        part of restructuring under section 517 of the 
        Multifamily Assisted Housing Reform and Affordability 
        Act of 1997, the Secretary shall recapture the budget 
        authority not required for the terminated or amended 
        contract and use such amounts as are necessary to 
        provide housing assistance for the same number of 
        families covered by such contract for the remaining 
        term of such contract, under a contract providing for 
        project-based or tenant-based assistance. The amount of 
        budget authority saved as a result of the shift to 
        project-based or tenant-based assistance shall be 
        rescinded.
  (cc) Law Enforcement and Security Personnel.--
          (1) In general.--Notwithstanding any other provision 
        of this Act, in the case of assistance attached to a 
        structure, for the purpose of increasing security for 
        the residents of a project, an owner may admit, and 
        assistance under this section may be provided to, 
        police officers and other security personnel who are 
        not otherwise eligible for assistance under the Act.
          (2) Rent requirements.--With respect to any 
        assistance provided by an owner under this subsection, 
        the Secretary may--
                  (A) permit the owner to establish such rent 
                requirements and other terms and conditions of 
                occupancy that the Secretary considers to be 
                appropriate; and
                  (B) require the owner to submit an 
                application for those rent requirements, which 
                application shall include such information as 
                the Secretary, in the discretion of the 
                Secretary, determines to be necessary.
          (3) Applicability.--This subsection shall apply to 
        fiscal year 1999 and fiscal years thereafter.
  (dd) Tenant-Based Contract Renewals.--Subject to amounts 
provided in appropriation Acts, starting in fiscal year 1999, 
the Secretary shall renew all expiring tenant-based annual 
contribution contracts under this section by applying an 
inflation factor based on local or regional factors to an 
allocation baseline. The allocation baseline shall be 
calculated by including, at a minimum, amounts sufficient to 
ensure continued assistance for the actual number of families 
assisted as of October 1, 1997, with appropriate upward 
adjustments for incremental assistance and additional families 
authorized subsequent to that date.

           *       *       *       *       *       *       *


SEC. 39. TERMS AND CONDITIONS ON PREFERENCE FOR ASSISTANCE FOR CHILDREN 
                    AGING OUT OF FOSTER CARE.

  (a) Preference.--For purposes of this section, the term 
``preference for housing assistance'' means preference, for an 
otherwise eligible child in foster care, for--
          (1) occupancy in a public housing dwelling unit, 
        pursuant to section 6(c)(4)(A)(iii);
          (2) tenant-based assistance under section 8(o), 
        pursuant to paragraph (6)(A)(ii)(I) of such section;
          (3) project-based assistance under section 8(o)(13), 
        pursuant to subparagraph (J)(ii)(I) of such section; 
        and
          (4) occupancy in a dwelling unit in a project 
        assisted with project-based assistance under section 8, 
        pursuant to subsection (d)(1)(A)(i)(I) of such section.
  (b) Early Application for Assistance.--Notwithstanding the 
period during which a preference for housing assistance is 
provided for a person, an otherwise eligible person may apply 
for such occupancy or assistance at any time after such person 
attains 16 years of age.
  (c) Requirement for Education or Training.--
          (1) Requirement.--Except as provided in paragraph 
        (2), each person occupying a dwelling unit pursuant to 
        a preference for housing assistance shall, not later 
        than 30 months after such initial occupancy, comply 
        with the requirements under one of the following 
        subparagraphs, as selected by the public housing agency 
        for or project owner of the assisted housing dwelling 
        unit involved, in consultation with relevant public 
        child welfare agencies:
                  (A) Option 1.--The requirements under this 
                subparagraph are--
                          (i) obtaining a recognized 
                        postsecondary credential or a secondary 
                        school diploma or its recognized 
                        equivalent;
                          (ii) enrollment in an institution of 
                        higher education, as such term is 
                        defined in section 101(a) of the Higher 
                        Education Act of 1965 (20 U.S.C. 
                        1001(a)) and including the institutions 
                        described in subparagraphs (A) and (B) 
                        of section 102(a)(1) of such Act (20 
                        U.S.C. 1002(a)(1)); or
                          (iii) participation in a career 
                        pathway, as such term is defined in 
                        section 3 of the Workforce Innovation 
                        and Opportunity Act (29 U.S.C. 3102).
                Notwithstanding any other provision of this 
                paragraph, a public housing agency or project 
                owner may consider employment as satisfying the 
                requirements under this subparagraph.
                  (B) Option 2.--The requirements under this 
                subparagraph are compliance with the terms and 
                conditions applicable under section 23 of the 
                United States Housing Act of 1937 (42 U.S.C. 
                1437u) and the regulations implementing such 
                section to a person participating in a family 
                self-sufficiency program under such section, 
                except that--
                          (i) a public housing agency may 
                        select the option under this 
                        subparagraph only if the agency is 
                        participating in such self-sufficiency 
                        program or has made such commitments to 
                        commence participation as the Secretary 
                        considers sufficient; and
                          (ii) a project owner of assisted 
                        housing may select the option under 
                        this subparagraph only if the public 
                        housing agency in whose jurisdiction 
                        the project is located is participating 
                        in such self-sufficiency program or has 
                        made such commitments to commence 
                        participation as the Secretary 
                        considers sufficient.
                  (C) Option 3.--The requirements under this 
                subparagraph are compliance with any 
                combination of the terms, conditions, and 
                requirements under subparagraphs (A) and (B), 
                as may be established by the public housing 
                agency, except that a project owner of assisted 
                housing may select the option under this 
                subparagraph only if the public housing agency 
                in whose jurisdiction the project is located 
                has selected the option under this subparagraph 
                and has established such terms, conditions, and 
                requirements. In designing such terms, 
                conditions, and requirements, the public 
                housing agency may consult with local workforce 
                development agencies and other organizations 
                and entities with expertise and experience in 
                this field.
          (2) Exceptions.--The requirement under paragraph (1) 
        shall not apply to--
                  (A) a parent or other household member 
                responsible for the care of a dependent child 
                under the age of 6 or for the care of an 
                incapacitated person;
                  (B) a person who is regularly and actively 
                participating in a drug addiction or alcohol 
                treatment and rehabilitation program; and
                  (C) a person who is incapable of complying 
                with the requirement under paragraph (1) due to 
                a documented medical condition.
          (3) Verification of compliance.--The Secretary shall 
        require the public housing agency or project owner, as 
        applicable, to verify compliance with the requirement 
        under paragraph (1) by each person occupying a dwelling 
        unit assisted or administered by such agency or owner, 
        as applicable, pursuant to a preference for housing 
        assistance annually in conjunction with reviews of 
        income for purposes of determining eligibility for 
        assistance described in subsection (a).
  (d) Limitation on Bedrooms.--A dwelling unit that is occupied 
by a person, or assisted with assistance made available on 
behalf of a person, pursuant to a preference for housing 
assistance may contain more than one bedroom only if such 
additional bedrooms are occupied only by other persons who 
occupy such dwelling unit, or receive assistance made 
available, pursuant to a preference for housing assistance.
  (e) Supportive Services.--
          (1) Eligibility.--Each person occupying a dwelling 
        unit pursuant to a preference for housing assistance 
        shall be eligible for any supportive services (as such 
        term is defined in section 103 of the Workforce 
        Innovation and Opportunity Act (29 U.S.C. 3102)) made 
        available, in connection with any housing assistance 
        program of the agency, by or through the public housing 
        agency providing such preference or, in the case of a 
        preference for housing assistance for housing not 
        assisted by such agency, by or through the public 
        housing agency in whose jurisdiction the housing is 
        located, including any services provided under a family 
        self-sufficiency program under section 23 of this Act.
          (2) Information.--Upon the initial provision of 
        housing assistance for any person pursuant to a 
        preference for such assistance, the public housing 
        agency or owner, as applicable, shall inform such 
        person of the existence of any programs or services 
        referred to in paragraph (1) and of their eligibility 
        for such programs and services.
  (f) Termination of Assistance.--The public housing agency or 
project owner, as applicable, shall terminate any occupancy of, 
or assistance on behalf of, a person pursuant to any preference 
for housing assistance upon the person attaining 25 years of 
age or upon substantial noncompliance with the requirement 
under subsection (c), except that nothing in this subsection 
may be construed to prohibit the occupancy of housing assisted 
under this title by, or the provision of rental assistance 
under section 8 for, any person, or to affect the eligibility 
of any person for such occupancy or assistance, other than 
pursuant to a preference for housing assistance.
  (g) Applicability to Moving to Work Agencies.--
Notwithstanding any other provision of law, the preferences for 
housing assistance identified in subsection (a) of this section 
shall apply to assistance made available by each public housing 
agency participating in the Moving to Work Program under 
section 204 of the Departments of Veterans Affairs and Housing 
and Urban Development, and Independent Agencies Appropriations 
Act, 1996 (42 U.S.C. 1437f note), except that in lieu of 
compliance with one of the options under subsection (c)(1) of 
this section, such an agency may comply with the requirement 
under such subsection by complying with such terms, conditions, 
and requirements as may be established by the agency for 
persons occupying dwelling units pursuant to a preference for 
housing assistance.
  (h) Reports.--The Secretary of Housing and Urban Development 
shall require each public housing agency that provides any 
preference for housing assistance pursuant to this section in 
any fiscal year to submit a report to the Secretary for such 
fiscal year that--
          (1) specifies the number of applications for such 
        preferences received during such fiscal year 
        disaggregated by--
                  (A) the number received by persons who have 
                attained 16 years of age but have not attained 
                an age such that the provision of foster care 
                for such child will end by reason of the age of 
                the child within 6 months; and
                  (B) the number received by persons who have 
                attained an age such that the provision of 
                foster care for such child will end by reason 
                of the age of the child within 6 months;
          (2) specifies the number of persons provided a 
        preference for housing assistance during such fiscal 
        year; and
          (3) describes how the public housing agency 
        communicated or collaborated with public child welfare 
        agencies to collect such data.

           *       *       *       *       *       *       *

                              ----------                              


                          HOUSING ACT OF 1949




           *       *       *       *       *       *       *
TITLE V--FARM HOUSING

           *       *       *       *       *       *       *



 loans to provide occupant-owned, rental, and cooperative housing for 
             low- and moderate-income persons and families

  Sec. 521. (a)(1)(A) Not withstanding the provisions of 
sections 502, 517(a) and 515, loans to persons of low or 
moderate income under section 502 or 517(a)(1), or 526(a), 
loans under section 515 or 526(c) to provide rental or 
cooperative housing and related facilities for persons and 
families of low or moderate income or elderly persons and 
elderly families, and loans under section 526 to provide 
condominium housing for persons and families of low or moderate 
income, shall bear interest at a rate prescribed by the 
Secretary at not less than a rate determined by the Secretary 
of the Treasury upon the request of the Secretary taking into 
consideration the current average market yield on outstanding 
marketable obligations of the United States with remaining 
periods of maturity comparable to the average maturities of 
such loans, adjusted to the nearest one-eighth of 1 per centum. 
Any loan guaranteed under this title shall bear interest at 
such rate as may be agreed upon by the borrower and the lender.
  (B) From the interest rate so determined, the Secretary may 
provide the borrower with assistance in the form of credits so 
as to reduce the effective interest rate to a rate not less 
than 1 per centum per annum for such periods of time as the 
Secretary may determine for applicants described in 
subparagraph (A) if without such assistance such applicants 
could not afford the dwelling or make payments on the 
indebtedness of the rental or cooperative housing. In the case 
of assistance provided under this subparagraph with respect to 
a loan under section 502, the Secretary may not reduce, cancel, 
or refuse to renew the assistance due to an increase in the 
adjusted income of the borrower if the reduction, cancellation, 
or nonrenewal will cause the borrower to be unable to 
reasonably afford the resulting payments required under the 
loan.
  (C) For persons of low income under section 502 or 517(a) who 
the Secretary determines are unable to afford a dwelling with 
the assistance provided under subparagraph (B) and when the 
Secretary determines that assisted rental housing programs (as 
authorized under this title, the National Housing Act, and the 
United States Housing Act of 1937) would be unsuitable in the 
area in which such persons reside, the Secretary may provide 
additional assistance, pursuant to amounts approved in 
appropriation Acts and for such periods of time as the 
Secretary may determine, which may be in an amount not to 
exceed the difference between (i) the amount determined by the 
Secretary to be necessary to pay the principal indebtedness, 
interest, taxes, insurance, utilities, and maintenance, and 
(ii) 25 per centum of the income of such applicant. The amount 
of such additional assistance which may be approved in 
appropriation Acts may not exceed an aggregate amount of 
$100,000,000. Such additional assistance may not be so approved 
with respect to any fiscal year beginning on or after October 
1, 1981.
  (D)(i) With respect to borrowers under section 502 or 517(a) 
who have received assistance under subparagraph (B) or (C), the 
Secretary shall provide for the recapture of all or a portion 
of such assistance rendered upon the disposition or 
nonoccupancy of the property by the borrower. In providing for 
such recapture, the Secretary shall make provisions to provide 
incentives for the borrower to maintain the property in a 
marketable condition. Notwithstanding any other provisions of 
law, any such assistance whenever rendered shall constitute a 
debt secured by the Security instruments given by the borrower 
to the Secretary to the extent that the Secretary may provide 
for recapture of such assistance.
  (ii) In determining the amount recaptured under this 
subparagraph with respect to any loan made pursuant to section 
502(a)(3) for the purchase of a dwelling located on land owned 
by a community land trust, the Secretary shall determine any 
appreciation of the dwelling based on any agreement between the 
borrower and the community land trust that limits the sale 
price or appreciation of the dwelling.
  (E) Except for Federal or State laws relating to taxation, 
the assistance rendered to any borrower under subparagraphs (B) 
and (C) shall not be considered to be income or resources for 
any purpose under any Federal or State laws including, but not 
limited to, laws relating to welfare and public assistance 
programs.
  (F) Loans subject to the interest rates and assistance 
provided under this paragraph (1) may be made only when the 
Secretary determines the needs of the applicant for necessary 
housing cannot be met with financial assistance from other 
sources including assistance under the National Housing Act and 
the United States Housing Act of 1937.
  (G) Interest on loans under section 502 or 517(a) to victims 
of a natural disaster shall not exceed the rate which would be 
applicable to such loans under section 502 without regard to 
this section.
  (2)(A) The Secretary shall make and insure loans under this 
section and sections 514, 515, and 517 to provide rental or 
cooperative housing and related facilities for persons and 
families of low income in multifamily housing projects, and 
shall make, and contract to make, assistance payments to the 
owners of such rental, congregate, or cooperative housing in 
order to make available to low-income occupants of such housing 
rentals at rates commensurate to income and not exceeding the 
highest of (i) 30 per centum of monthly adjusted income, (ii) 
10 per centum of monthly income, or (iii) if the person or 
family is receiving payments for welfare assistance from a 
public agency, the portion of such payments which is 
specifically designated by such agency to meet the person's or 
family's housing costs. Any rent or contribution of any 
recipient shall not increase as a result of this section or any 
other provision of Federal law or regulation by more than 10 
per centum during any twelve-month period, unless the increase 
above 10 per centum is attributable to increases in income 
which are unrelated to this subsection or other law or 
regulation.
  (B) The owner of any project assisted under this paragraph or 
paragraph (5) shall be required to provide at least annually a 
budget of operating expenses and record of tenants' income. The 
budget (and the income, in the case of a project assisted under 
this paragraph) shall be used to determine the amount of the 
assistance for each project.
  (C) The project owner shall accumulate, safeguard, and 
periodically pay to the Secretary any rental charges collected 
in excess of basic rental charges as established by the 
Secretary in conformity with subparagraph (A). These funds may 
be credited to the appropriation and used by the Secretary for 
making such assistance payments through the end of the next 
fiscal year. Notwithstanding the preceding sentence, excess 
funds received from tenants in projects financed under section 
515 during a fiscal year shall be available during the next 
succeeding fiscal year, together with funds provided under 
subparagraph (D), to the extent approved in appropriations 
Acts, to make assistance payments to reduce rent overburden on 
behalf of tenants of any such project whose rents exceed the 
levels referred to in subparagraph (A). In providing assistance 
to relieve rent overburden, the Secretary shall provide 
assistance with respect to very low-income and low-income 
families to reduce housing rentals to the levels specified in 
subparagraph (A).
  (D) The Secretary, to the extent approved in appropriation 
Acts, may enter into rental assistance contracts aggregating 
not more than $398,000,000 in carrying out subparagraph (A) 
with respect to the fiscal year ending on September 30, 1982.
  (E) In order to assist elderly or handicapped persons or 
families who elect to live in a shared housing arrangement in 
which they benefit as a result of sharing the facilities of a 
dwelling with others in a manner that effectively and 
efficiently meets their housing needs and thereby reduces their 
costs of housing, the Secretary shall permit rental assistance 
to be used by such persons or families if the shared housing 
arrangement is in a single-family dwelling. For the purpose of 
this subparagraph, the Secretary shall prescribe minimum 
habitability standards to assure decent, safe, and sanitary 
housing for such families while taking into account the special 
circumstances of shared housing.
  (F)(i) In making occupancy in a project assisted under this 
paragraph, and rental assistance under this paragraph, 
available on behalf of eligible families, the project owner--
          (I) shall provide that the highest preference shall 
        be given to otherwise eligible children who--
                  (aa) are in foster care;
                  (bb) have attained an age such that the 
                provision of foster care for such child will 
                end by reason of the age of the child within 6 
                months;
                  (cc) meet the requirements under clauses (i) 
                and (ii) of paragraph (1) of the definition of 
                ``at risk of homelessness'' in section 91.5 of 
                the Secretary of Housing and Urban 
                Development's regulations (24 C.F.R. 91.5), as 
                in effect on September 1, 2016; and
                  (dd) have agreed to comply with the 
                requirements under clause (iii); and
          (II) may provide highest preference to, in addition 
        to eligible children described in subclause (I), not 
        more than two other types of eligible families.
  (ii) Notwithstanding the period during which a preference 
pursuant to clause (i)(I) for occupancy in project assisted 
under this paragraph or for rental assistance under this 
paragraph is provided for a person, an otherwise eligible 
person may apply for such occupancy or assistance at any time 
after the person attains 16 years of age.
  (iii)(I) Except as provided in subclause (II), each person 
occupying a dwelling unit pursuant to a preference under clause 
(i)(I) shall, not later than 30 months after such initial 
occupancy, be--
          (aa) obtaining a recognized postsecondary credential 
        or a secondary school diploma or its recognized 
        equivalent;
          (bb) enrolled in an institution of higher education, 
        as such term is defined in section 101(a) of the Higher 
        Education Act of 1965 (20 U.S.C. 1001(a)) and including 
        the institutions described in subparagraphs (A) and (B) 
        of section 102(a)(1) of such Act (20 U.S.C. 
        1002(a)(1)); or
          (cc) participating in a career pathway, as such term 
        is defined in section 3 of the Workforce Innovation and 
        Opportunity Act (29 U.S.C. 3102).
        Notwithstanding any other provision of this subclause, 
        a project owner may consider employment as satisfying 
        the requirements under this subclause.
  (II) The requirement under subclause (I) shall not apply to--
          (aa) a parent or other household member responsible 
        for the care of a dependent child under the age of 6 or 
        for the care of an incapacitated person;
          (bb) a person who is regularly and actively 
        participating in a drug addiction or alcohol treatment 
        and rehabilitation program; and
          (cc) a person who is incapable of complying with the 
        requirement under subclause (I) due to a documented 
        medical condition.
  (III) The Secretary shall require a project owner to verify 
compliance with the requirement under this clause by each 
person occupying a dwelling unit pursuant to a preference under 
clause (i)(I) annually in conjunction with reviews of income 
for purposes of determining eligibility for assistance 
described in clause (i).
  (iv) A dwelling unit that is occupied by a person pursuant to 
a preference under clause (i)(I) may contain more than one 
bedroom only if such additional bedrooms are occupied only by 
other persons who occupy such dwelling unit pursuant to a 
preference under clause (i)(I).
  (v) The project owner shall terminate any occupancy of a 
person pursuant to the preference under clause (i)(I) upon the 
person attaining 25 years of age or upon substantial 
noncompliance with the requirement under clause (iii), except 
that nothing in this clause may be construed to prohibit the 
occupancy in a project assisted under this paragraph by, or the 
provision of rental assistance under this paragraph for, any 
person, or to affect the eligibility of any person for such 
occupancy or assistance, other than pursuant to a preference 
under clause (i)(I).
  (3)(A) In the case of loans under sections 514 and 515 
approved prior to the effective date of this paragraph with 
respect to which rental assistance is provided, the rent for 
tenants receiving such assistance shall not exceed the highest 
of (i) 30 per centum of monthly adjusted income, (ii) 10 per 
centum of monthly income, or (iii) if the person or family is 
receiving payments for welfare assistance from a public agency, 
the portion of such payments which is specifically designated 
by such agency to meet the person's or family's housing costs.
  (B) In the case of a section 515 loan approved prior to the 
effective date of this paragraph with respect to which interest 
credits are provided, the tenant's rent shall not exceed the 
highest of (i) 30 per centum of monthly adjusted income, (ii) 
10 per centum of monthly income, or (iii) if the person or 
family is receiving payments for welfare assistance from a 
public agency, the portion of such payments which is 
specifically designated by such agency to meet the person's or 
family's housing costs, or, where no rental assistance 
authority is available, the rent level established on a basis 
of a 1 per centum interest rate on debt service.
  (C) No rent for a unit financed under section 514 or 515 
shall be increased as a result of this subsection or other 
provision of Federal law or Federal regulation by more than 10 
per centum in any twelve-month period, unless the increase 
above 10 per centum is attributable to increases in income 
which are unrelated to this subsection or other law, or 
regulation.
  (4) In the case of a loan with respect to the purchase of a 
manufactured home with respect to which rental assistance is 
provided, the monthly payment for principal and interest on the 
manufactured home and for lot rental and utilities shall not 
exceed the highest of (A) 30 per centum of monthly adjusted 
income, (B) 10 per centum of monthly income, or (C) if the 
person or family is receiving payments for welfare assistance 
from a public agency, the portion of such payments which is 
specifically designated by such agency to meet the person's or 
family's housing costs.
  (5) Operating assistance for migrant farmworker projects.--
          (A) Authority.--In the case of housing (and related 
        facilities) for migrant farmworkers provided or 
        assisted with a loan under section 514 or a grant under 
        section 516, the Secretary may, at the request of the 
        owner of the project, use amounts provided for rental 
        assistance payments under paragraph (2) to provide 
        assistance for the costs of operating the project. Any 
        tenant or unit assisted under this paragraph may not 
        receive rental assistance under paragraph (2).
          (B) Amount.--In any fiscal year, the assistance 
        provided under this paragraph for any project shall not 
        exceed an amount equal to 90 percent of the operating 
        costs for the project for the year, as determined by 
        the Secretary. The amount of assistance to be provided 
        for a project under this paragraph shall be an amount 
        that makes units in the project available to migrant 
        farmworkers in the area of the project at rates not 
        exceeding 30 percent of the monthly adjusted incomes of 
        such farmworkers, based on the prevailing incomes of 
        such farmworkers in the area.
          (C) Submission of information.--The owner of a 
        project assisted under this paragraph shall be required 
        to provide to the Secretary, at least annually, a 
        budget of operating expenses and estimated rental 
        income, which the Secretary may use to determine the 
        amount of assistance for the project.
          (D) Definitions.--For purposes of this paragraph, the 
        following definitions shall apply:
                  (i) The term ``migrant farmworker'' has the 
                same meaning given such term in section 
                516(k)(7).
                  (ii) The term ``operating cost'' means 
                expenses incurred in operating a project, 
                including expenses for--
                          (I) administration, maintenance, 
                        repair, and security of the project;
                          (II) utilities, fuel, furnishings, 
                        and equipment for the project; and
                          (III) maintaining adequate reserve 
                        funds for the project.
  (b) Housing and related facilities provided with loans 
described in subsection (a) shall be located in rural areas; 
and applicants eligible for such loans under section 502 or 
517(a)(1), or for occupancy of housing provided with such loans 
under section 515, shall include otherwise qualified nonrural 
residents who will become rural residents.
  (c) There shall be reimbursed to the Rural Housing Insurance 
Fund by annual appropriations (1) the amounts by which 
nonprincipal payments made from the fund during each fiscal 
year to the holders of insured loans described in subsection 
(a)(1) exceed interest due from the borrowers during each year, 
and (2) the amount of assistance payments described in 
subsections (a)(2) and (a)(5). There are authorized to be 
appropriated to the Rural Housing Insurance Fund such sums as 
may be necessary to reimburse such fund for the amount of 
assistance payments described in subsection (a)(1)(C). The 
Secretary may from time to time issue notes to the Secretary of 
the Treasury under section 517(h) and section 526 to obtain 
amounts equal to such unreimbursed payments, pending the annual 
reimbursement by appropriation.
  (d)(1) In utilizing the rental assistance payments authority 
pursuant to subsection (a)(2)--
          (A) the Secretary shall make such assistance 
        available in existing projects for units occupied by 
        low income families or persons to extend expiring 
        contracts or to provide additional assistance when 
        necessary to provide the full amount authorized 
        pursuant to existing contracts;
          (B) any such authority remaining after carrying out 
        subparagraph (A) shall be used in projects receiving 
        commitments under section 514, 515, or 516 after fiscal 
        year 1983 for contracts to assist very low-income 
        families or persons to occupy the units in such 
        projects, except that not more than 5 percent of the 
        units assisted may be occupied by low income families 
        or persons who are not very low-income families or 
        persons; and
          (C) any such authority remaining after carrying out 
        subparagraphs (A) and (B) may be used to provide 
        further assistance to existing projects under section 
        514, 515, or 516.
  (2) The Secretary shall transfer rental assistance contract 
authority under this section from projects where such authority 
is unused after initial rentup and not needed because of a lack 
of eligible tenants in the area to projects where such 
authority is needed.
  (e) Any rent or contribution of any recipient or any tenant 
in a project assisted under subsection (a)(5) shall not 
increase as a result of this section, any amendment thereto, or 
any other provision of Federal law or regulation by more than 
10 per centum during any twelve-month period, unless the 
increase above 10 per centum is attributable to increases in 
income which are unrelated to this subsection or other law or 
regulation.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    H.R. 2069 is a well-intentioned, but harmful bill that 
seeks to help foster youth aging out of care by allowing them 
to receive preference for key federal housing programs over 
other households that have been waiting in line for assistance, 
including other vulnerable populations such as people 
experiencing homelessness, veterans, victims of domestic 
violence, and families with young children. Further, H.R. 2069 
would introduce mandatory education, training, or work 
requirements at the federal level. There is no evidence that 
such requirements help individuals increase their earned 
incomes, and these requirements could leave the most vulnerable 
foster youth at risk of eviction and homelessness.
    H.R. 2069 would supersede voluntary local PHA and owner 
waiting list preferences and replace them with a mandatory 
federal preference for foster youth aging out of foster care 
who are at risk of homelessness, allowing them to go to the top 
of years long waiting lists for public housing, Housing Choice 
Vouchers, project-based rental assistance, and rural housing 
units subsidized by Section 521. Under H.R. 2069, PHAs and 
owners would be allowed to establish preferences for two 
additional groups alongside foster youth such that all three 
groups, if so designated, would collectively be given a highest 
preference. Congress eliminated federal preferences for housing 
assistance in 1998 through the Quality Housing and Work 
Responsibility Act (QHWRA) due to concerns that federal 
preferences were contributing to an overconcentration of 
poverty in federal housing programs, as well as concerns that 
federal preferences were not nimble enough to respond to the 
needs of local communities with differing populations. 
Currently, PHAs and owners are free to establish preferences 
for foster youth aging out of care if they determine it is 
appropriate based on local needs. Some PHAs have chosen to 
establish such preferences for foster youth, while others have 
decided to establish preferences for other populations based on 
different local needs or to establish no preferences at all.
    Under H.R. 2069, foster youth who are provided housing 
assistance through the new federal preference would be subject 
to educational, training, or work requirements, as determined 
by the PHA or owner, in consultation with relevant public child 
welfare agencies. There is no guarantee that foster youth would 
receive supportive services to help them meet these 
requirements. Due to the discretion left to PHAs and owners, 
some youth may be subjected strictly to work requirements 
without the option to pursue education or training as an 
alternative to obtaining employment. Substantial noncompliance 
with these education, training, or work requirements would 
result in termination of assistance. While the bill allows for 
hardship exemptions, HUD has a documented history of failing to 
ensure that PHAs follow existing hardship requirements. There 
is no reason to believe that HUD will police these new hardship 
requirements differently. For these reasons, Democrats oppose 
H.R. 2069, but continue to support increased resources for 
housing assistance to help foster youth aging out of care.
                                   Maxine Waters.
                                   Wm. Lacy Clay.
                                   Stephen F. Lynch.
                                   David Scott.
                                   Carolyn B. Maloney.
                                   Daniel T. Kildee.
                                   Al Green.
                                   Michael E. Capuano.

                                  [all]