[House Report 117-426]
[From the U.S. Government Publishing Office]


117th Congress   }                                      {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                      {      117-426

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



 
     PUBLIC AND FEDERALLY ASSISTED HOUSING FIRE SAFETY ACT OF 2022

                                _______
                                

 July 20, 2022.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

  Ms. Waters, from the Committee on Financial Services, submitted the 
                               following

                              R E P O R T

                        [To accompany H.R. 7981]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 7981) to require qualifying smoke alarms in 
certain federally assisted housing, and for other purposes, 
having considered the same, reports favorably thereon with an 
amendment and recommends that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     6
Background and Need for Legislation..............................     6
Section-by-Section Analysis of the Legislation...................     7
Hearings.........................................................     8
Committee Consideration..........................................     8
Committee Votes..................................................     8
Committee Oversight Findings.....................................     8
Statement of Performance Goals and Objectives....................     8
New Budget Authority and C.B.O. Cost Estimate....................     8
Committee Cost Estimate..........................................     8
Federal Mandates Statement.......................................     9
Advisory Committee Statement.....................................     9
Applicability to Legislative Branch..............................     9
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     9
Duplicative Federal Programs.....................................     9
Changes to Existing Law..........................................     9

    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 ``Public and Federally Assisted Housing 
Fire Safety Act of 2022''.

SEC. 2. SMOKE ALARMS IN FEDERALLY ASSISTED HOUSING.

  (a) Public Housing, Tenant-Based Assistance, and Project-Based 
Assistance.--The United States Housing Act of 1937 (42 U.S.C. 1437 et 
seq.) is amended--
          (1) in section 3(a) (42 U.S.C. 1437a(a)), by adding at the 
        end the following:
          ``(9) Qualifying smoke alarms.--
                  ``(A) In general.--Each public housing agency shall 
                ensure that a qualifying smoke alarm is installed in 
                accordance with applicable codes and standards 
                published by the International Code Council or the 
                National Fire Protection Association and the 
                requirements of the National Fire Protection 
                Association Standard 72, or any successor standard, in 
                each level and in or near each sleeping area in any 
                dwelling unit in public housing owned or operated by 
                the public housing agency, including in basements but 
                excepting crawl spaces and unfinished attics, and in 
                each common area in a project containing such a 
                dwelling unit.
                  ``(B) Definitions.--For purposes of this paragraph, 
                the following definitions shall apply:
                          ``(i) Smoke alarm defined.--The term `smoke 
                        alarm' has the meaning given the term `smoke 
                        detector' in section 29(d) of the Federal Fire 
                        Prevention and Control Act of 1974 (15 U.S.C. 
                        2225(d)).
                          ``(ii) Qualifying smoke alarm defined.--The 
                        term `qualifying smoke alarm' means a smoke 
                        alarm that--
                                  ``(I) in the case of a dwelling unit 
                                built before the date of enactment of 
                                this paragraph and not substantially 
                                rehabilitated after the date of 
                                enactment of this paragraph is--
                                          ``(aa) hardwired; or
                                          ``(bb) uses 10-year non 
                                        rechargeable, nonreplaceable 
                                        primary batteries and--
                                                  ``(AA) is sealed;
                                                  ``(BB) is tamper 
                                                resistant;
                                                  ``(CC) contains 
                                                silencing means; and
                                                  ``(DD) provides 
                                                notification for 
                                                persons with hearing 
                                                loss as required by the 
                                                National Fire 
                                                Protection Association 
                                                Standard 72, or any 
                                                successor standard; or
                                  ``(II) in the case of a dwelling unit 
                                built or substantially rehabilitated 
                                after the date of enactment of this 
                                paragraph, is hardwired.''; and
          (2) in section 8 (42 U.S.C. 1437f)--
                  (A) by inserting after subsection (k) the following:
  ``(l) Qualifying Smoke Alarms.--
          ``(1) In general.--Each owner of a dwelling unit receiving 
        project-based assistance under this section shall ensure that 
        qualifying smoke alarms are installed in accordance with 
        applicable codes and standards published by the International 
        Code Council or the National Fire Protection Association and 
        the requirements of the National Fire Protection Association 
        Standard 72, or any successor standard, in each level and in or 
        near each sleeping area in such dwelling unit, including in 
        basements but excepting crawl spaces and unfinished attics, and 
        in each common area in a project containing such a dwelling 
        unit.
          ``(2) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                  ``(A) Smoke alarm defined.--The term `smoke alarm' 
                has the meaning given the term `smoke detector' in 
                section 29(d) of the Federal Fire Prevention and 
                Control Act of 1974 (15 U.S.C. 2225(d)).
                  ``(B) Qualifying smoke alarm defined.--The term 
                `qualifying smoke alarm' means a smoke alarm that--
                          ``(i) in the case of a dwelling unit built 
                        before the date of enactment of this paragraph 
                        and not substantially rehabilitated after the 
                        date of enactment of this paragraph is--
                                  ``(I) hardwired; or
                                  ``(II) uses 10-year non rechargeable, 
                                nonreplaceable primary batteries and--
                                          ``(aa) is sealed;
                                          ``(bb) is tamper resistant;
                                          ``(cc) contains silencing 
                                        means; and
                                          ``(dd) provides notification 
                                        for persons with hearing loss 
                                        as required by the National 
                                        Fire Protection Association 
                                        Standard 72, or any successor 
                                        standard; or
                          ``(ii) in the case of a dwelling unit built 
                        or substantially rehabilitated after the date 
                        of enactment of this paragraph, is 
                        hardwired.''; and
                  (B) in subsection (o), by adding at the end the 
                following:
          ``(22) Qualifying smoke alarms.--
                  ``(A) In general.--Each dwelling unit receiving 
                tenant-based assistance or project-based assistance 
                under this subsection shall have a qualifying smoke 
                alarm installed in accordance with applicable codes and 
                standards published by the International Code Council 
                or the National Fire Protection Association and the 
                requirements of the National Fire Protection 
                Association Standard 72, or any successor standard, in 
                each level and in or near each sleeping area in such 
                dwelling unit, including in basements but excepting 
                crawl spaces and unfinished attics, and in each common 
                area in a project containing such a dwelling unit.
                  ``(B) Definitions.--For purposes of this paragraph, 
                the following definitions shall apply:
                          ``(i) Smoke alarm defined.--The term `smoke 
                        alarm' has the meaning given the term `smoke 
                        detector' in section 29(d) of the Federal Fire 
                        Prevention and Control Act of 1974 (15 U.S.C. 
                        2225(d)).
                          ``(ii) Qualifying smoke alarm defined.--The 
                        term `qualifying smoke alarm' means a smoke 
                        alarm that--
                                  ``(I) in the case of a dwelling unit 
                                built before the date of enactment of 
                                this paragraph and not substantially 
                                rehabilitated after the date of 
                                enactment of this paragraph is--
                                          ``(aa) hardwired; or
                                          ``(bb) uses 10-year non 
                                        rechargeable, nonreplaceable 
                                        primary batteries and--
                                                  ``(AA) is sealed;
                                                  ``(BB) is tamper 
                                                resistant;
                                                  ``(CC) contains 
                                                silencing means; and
                                                  ``(DD) provides 
                                                notification for 
                                                persons with hearing 
                                                loss as required by the 
                                                National Fire 
                                                Protection Association 
                                                Standard 72, or any 
                                                successor standard; or
                                  ``(II) in the case of a dwelling unit 
                                built or substantially rehabilitated 
                                after the date of enactment of this 
                                paragraph, is hardwired.''.
  (b) Supportive Housing for the Elderly.--Section 202(j) of the 
Housing Act of 1959 (12 U.S.C. 1701q(j)) is amended by adding at the 
end the following:
          ``(10) Qualifying smoke alarms.--
                  ``(A) In general.--Each owner of a dwelling unit 
                assisted under this section shall ensure that 
                qualifying smoke alarms are installed in accordance 
                with the requirements of applicable codes and standards 
                and the National Fire Protection Association Standard 
                72, or any successor standard, in each level and in or 
                near each sleeping area in such dwelling unit, 
                including in basements but excepting crawl spaces and 
                unfinished attics, and in each common area in a project 
                containing such a dwelling unit.
                  ``(B) Definitions.--For purposes of this paragraph, 
                the following definitions shall apply:
                          ``(i) Smoke alarm defined.--The term `smoke 
                        alarm' has the meaning given the term `smoke 
                        detector' in section 29(d) of the Federal Fire 
                        Prevention and Control Act of 1974 (15 U.S.C. 
                        2225(d)).
                          ``(ii) Qualifying smoke alarm defined.--The 
                        term `qualifying smoke alarm' means a smoke 
                        alarm that--
                                  ``(I) in the case of a dwelling unit 
                                built before the date of enactment of 
                                this paragraph and not substantially 
                                rehabilitated after the date of 
                                enactment of this paragraph is--
                                          ``(aa) hardwired; or
                                          ``(bb) uses 10-year non 
                                        rechargeable, nonreplaceable 
                                        primary batteries and--
                                                  ``(AA) is sealed;
                                                  ``(BB) is tamper 
                                                resistant;
                                                  ``(CC) contains 
                                                silencing means; and
                                                  ``(DD) provides 
                                                notification for 
                                                persons with hearing 
                                                loss as required by the 
                                                National Fire 
                                                Protection Association 
                                                Standard 72, or any 
                                                successor standard; or
                                  ``(II) in the case of a dwelling unit 
                                built or substantially rehabilitated 
                                after the date of enactment of this 
                                paragraph, is hardwired.''.
  (c) Supportive Housing for Persons With Disabilities.--Section 811(j) 
of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
8013(j)) is amended by adding at the end the following:
          ``(8) Qualifying smoke alarms.--
                  ``(A) In general.--Each dwelling unit assisted under 
                this section shall contain qualifying smoke alarms that 
                are installed in accordance with applicable codes and 
                standards published by the International Code Council 
                or the National Fire Protection Association and the 
                requirements of the National Fire Protection 
                Association Standard 72, or any successor standard, in 
                each level and in or near each sleeping area in such 
                dwelling unit, including in basements but excepting 
                crawl spaces and unfinished attics, and in each common 
                area in a project containing such a dwelling unit.
                  ``(B) Definitions.--For purposes of this paragraph, 
                the following definitions shall apply:
                          ``(i) Smoke alarm defined.--The term `smoke 
                        alarm' has the meaning given the term `smoke 
                        detector' in section 29(d) of the Federal Fire 
                        Prevention and Control Act of 1974 (15 U.S.C. 
                        2225(d)).
                          ``(ii) Qualifying smoke alarm defined.--The 
                        term `qualifying smoke alarm' means a smoke 
                        alarm that--
                                  ``(I) in the case of a dwelling unit 
                                built before the date of enactment of 
                                this paragraph and not substantially 
                                rehabilitated after the date of 
                                enactment of this paragraph is--
                                          ``(aa) hardwired; or
                                          ``(bb) uses 10-year non 
                                        rechargeable, nonreplaceable 
                                        primary batteries and--
                                                  ``(AA) is sealed;
                                                  ``(BB) is tamper 
                                                resistant;
                                                  ``(CC) contains 
                                                silencing means; and
                                                  ``(DD) provides 
                                                notification for 
                                                persons with hearing 
                                                loss as required by the 
                                                National Fire 
                                                Protection Association 
                                                Standard 72, or any 
                                                successor standard; or
                                  ``(II) in the case of a dwelling unit 
                                built or substantially rehabilitated 
                                after the date of enactment of this 
                                paragraph, is hardwired.''.
  (d) Housing Opportunities for Persons With AIDS.--Section 856 of the 
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12905) is 
amended by adding at the end the following new subsection:
  ``(j) Qualifying Smoke Alarms.--
          ``(1) In general.--Each dwelling unit assisted under this 
        subtitle shall contain qualifying smoke alarms that are 
        installed in accordance with applicable codes and standards 
        published by the International Code Council or the National 
        Fire Protection Association and the requirements of the 
        National Fire Protection Association Standard 72, or any 
        successor standard, in each level and in or near each sleeping 
        area in such dwelling unit, including in basements but 
        excepting crawl spaces and unfinished attics, and in each 
        common area in a project containing such a dwelling unit.
          ``(2) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                  ``(A) Smoke alarm defined.--The term `smoke alarm' 
                has the meaning given the term `smoke detector' in 
                section 29(d) of the Federal Fire Prevention and 
                Control Act of 1974 (15 U.S.C. 2225(d)).
                  ``(B) Qualifying smoke alarm defined.--The term 
                `qualifying smoke alarm' means a smoke alarm that--
                          ``(i) in the case of a dwelling unit built 
                        before the date of enactment of this subsection 
                        and not substantially rehabilitated after the 
                        date of enactment of this subsection is--
                                  ``(I) hardwired; or
                                  ``(II) uses 10-year non rechargeable, 
                                nonreplaceable primary batteries and--
                                          ``(aa) is sealed;
                                          ``(bb) is tamper resistant;
                                          ``(cc) contains silencing 
                                        means; and
                                          ``(dd) provides notification 
                                        for persons with hearing loss 
                                        as required by the National 
                                        Fire Protection Association 
                                        Standard 72, or any successor 
                                        standard; or
                          ``(ii) in the case of a dwelling unit built 
                        or substantially rehabilitated after the date 
                        of enactment of this subsection, is 
                        hardwired.''.
  (e) Rural Housing.--Title V of the Housing Act of 1949 (42 U.S.C. 
1471 et seq.) is amended--
          (1) in section 514 (42 U.S.C. 1484), by adding at the end the 
        following:
  ``(k) Qualifying Smoke Alarms.--
          ``(1) In general.--Housing and related facilities constructed 
        with loans under this section shall contain qualifying smoke 
        alarms that are installed in accordance with applicable codes 
        and standards published by the International Code Council or 
        the National Fire Protection Association and the requirements 
        of the National Fire Protection Association Standard 72, or any 
        successor standard, in each level and in or near each sleeping 
        area in such dwelling unit, including in basements but 
        excepting crawl spaces and unfinished attics, and in each 
        common area in a project containing such a dwelling unit.
          ``(2) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                  ``(A) Smoke alarm defined.--The term `smoke alarm' 
                has the meaning given the term `smoke detector' in 
                section 29(d) of the Federal Fire Prevention and 
                Control Act of 1974 (15 U.S.C. 2225(d)).
                  ``(B) Qualifying smoke alarm defined.--The term 
                `qualifying smoke alarm' means a smoke alarm that--
                          ``(i) in the case of a dwelling unit built 
                        before the date of enactment of this subsection 
                        and not substantially rehabilitated after the 
                        date enactment of this subsection is--
                                  ``(I) hardwired; or
                                  ``(II) uses 10-year non rechargeable, 
                                nonreplaceable primary batteries and--
                                          ``(aa) is sealed;
                                          ``(bb) is tamper resistant;
                                          ``(cc) contains silencing 
                                        means; and
                                          ``(dd) provides notification 
                                        for persons with hearing loss 
                                        as required by the National 
                                        Fire Protection Association 
                                        Standard 72, or any successor 
                                        standard; or
                          ``(ii) in the case of a dwelling unit built 
                        or substantially rehabilitated after the date 
                        of enactment of this subsection, is 
                        hardwired.''; and
          (2) in section 515(m) (42 U.S.C. 1485(m)) by adding at the 
        end the following:
  ``(3) Qualifying Smoke Alarms.--
          ``(A) In general.--Housing and related facilities 
        rehabilitated or repaired with amounts received under a loan 
        made or insured under this section shall contain qualifying 
        smoke alarms that are installed in accordance with applicable 
        codes and standards published by the International Code Council 
        or the National Fire Protection Association and the 
        requirements of the National Fire Protection Association 
        Standard 72, or any successor standard, in each level and in or 
        near each sleeping area in such dwelling unit, including in 
        basements but excepting crawl spaces and unfinished attics, and 
        in each common area in a project containing such a dwelling 
        unit.
          ``(B) Definitions.--For purposes of this paragraph, the 
        following definitions shall apply:
                  ``(i) Smoke alarm defined.--The term `smoke alarm' 
                has the meaning given the term `smoke detector' in 
                section 29(d) of the Federal Fire Prevention and 
                Control Act of 1974 (15 U.S.C. 2225(d)).
                  ``(ii) Qualifying smoke alarm defined.--The term 
                `qualifying smoke alarm' means a smoke alarm that--
                          ``(I) in the case of a dwelling unit built 
                        before the date of enactment of this paragraph 
                        and not substantially rehabilitated after the 
                        date of enactment of this paragraph is--
                                  ``(aa) hardwired; or
                                  ``(bb) uses 10-year non rechargeable, 
                                nonreplaceable primary batteries and--
                                          ``(AA) is sealed;
                                          ``(BB) is tamper resistant;
                                          ``(CC) contains silencing 
                                        means; and
                                          ``(DD) provides notification 
                                        for persons with hearing loss 
                                        as required by the National 
                                        Fire Protection Association 
                                        Standard 72, or any successor 
                                        standard; or
                          ``(II) in the case of a dwelling unit built 
                        or substantially rehabilitated after the date 
                        of enactment of this paragraph, is 
                        hardwired.''.
  (f) Farm Labor Housing Direct Loans & Grants.--Section 516 of the 
Housing Act of 1949 (42 U.S.C. 1486) is amended--
          (1) in subsection (c)--
                  (A) in paragraph (2), by striking ``and'' at the end;
                  (B) in paragraph (3), by striking the period at the 
                end and inserting ``; and''; and
                  (C) by adding at the end the following:
          ``(4) that such housing shall contain qualifying smoke alarms 
        that are installed in accordance with applicable codes and 
        standards published by the International Code Council or the 
        National Fire Protection Association and the requirements of 
        the National Fire Protection Association Standard 72, or any 
        successor standard, in each level and in or near each sleeping 
        area in such dwelling unit, including in basements but 
        excepting crawl spaces and unfinished attics, and in each 
        common area in a project containing such a dwelling unit.''; 
        and
          (2) in subsection (g)--
                  (A) in paragraph (3) by striking ``and'' at the end;
                  (B) in paragraph (4), by striking the period at the 
                end and inserting a semicolon; and
                  (C) by adding at the end the following:
          ``(5) the term `smoke alarm' has the meaning given the term 
        `smoke detector' in section 29(d) of the Federal Fire 
        Prevention and Control Act of 1974 (15 U.S.C. 2225(d)); and
          ``(6) the term `qualifying smoke alarm' means a smoke alarm 
        that--
                  ``(A) in the case of a dwelling unit built before the 
                date of enactment of this paragraph and not 
                substantially rehabilitated after the date of enactment 
                of this paragraph is--
                          ``(i) hardwired; or
                          ``(ii) uses 10-year non rechargeable, 
                        nonreplaceable primary batteries and--
                                  ``(I) is sealed;
                                  ``(II) is tamper resistant;
                                  ``(III) contains silencing means; and
                                  ``(IV) provides notification for 
                                persons with hearing loss as required 
                                by the National Fire Protection 
                                Association Standard 72, or any 
                                successor standard; or
                  ``(B) in the case of a dwelling unit built or 
                substantially rehabilitated after the date of enactment 
                of this paragraph, is hardwired.''.
  (g) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out the amendments made by this section such sums 
as are necessary for each of fiscal years 2023 through 2027.
  (h) Effective Date.--The amendments made by subsections (a) through 
(f) shall take effect on the date that is 2 years after the date of 
enactment of this Act.
  (i) No Preemption.--Nothing in the amendments made by this section 
shall be construed to preempt or limit the applicability of any State 
or local law relating to the installation and maintenance of smoke 
alarms in housing that requires standards that are more stringent than 
the standards described in the amendments made by this section.

SEC. 3. FIRE SAFETY EDUCATIONAL PROGRAM.

  (a) In General.--The Secretary of Housing and Urban Development 
shall, not later than 1 year after the date of enactment of this Act, 
complete a national educational campaign that educates the general 
public about health and safety requirements in housing and how to 
properly use safety features in housing, including self-closing doors, 
smoke alarms, and carbon monoxide detectors.
  (b) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary of Housing and Urban Development to carry 
out this section, $2,000,000 for fiscal year 2024.

                          Purpose and Summary

    On June 8, 2022, Representative Dean introduced H.R. 7981, 
the ``Public and Federally Assisted Housing Fire Safety Act of 
2022'', which would require the installation of either tamper 
resistant or hardwired smoke alarms in federally assisted 
housing.

                  Background and Need for Legislation

    On January 4, 2022, a fire broke out in a public housing 
unit in Philadelphia, Pennsylvania that claimed the lives of 12 
residents, 8 of whom were children. The property received a 
failing Real Estate Assessment Center (REAC) score in its last 
inspection in 2017. A subsequent investigation by the 
Philadelphia Fire Department, working in collaboration with 
other federal and local agencies, identified fire safety 
concerns including non-functioning smoke alarms in the unit 
where the fire occurred. Specifically, officials found that the 
unit's smoke alarms had either been removed from the walls or 
had no batteries inside.
    In 2015, HUD published the top 25 deficiencies in public 
housing, and missing or inoperable smoke alarms were among the 
deficiencies most often cited.65 HUD reported 7,718 missing or 
inoperable smoke alarm deficiencies. The 2015 data for 
multifamily housing shows a similar set of defects. The ANS to 
H.R. 7981 seeks to address this issue by requiring either 
tamper resistant or hardwired smoke alarms to be installed in 
federally assisted housing. Specifically, for assisted units 
built prior to the enactment of H.R. 7981 that do not already 
have a hardwired smoke alarm, the bill would require the 
installation of tamper resistant battery-powered smoke alarms 
that: (1) are sealed; (2) include a silencing mechanism; and 
(3) are able to provide notification for persons with hearing 
loss. For new or substantially rehabilitated units, the bill 
would require the installation of hardwired smoke alarms. The 
ANS would also require HUD to run a national educational 
campaign about housing health and safety requirements, and how 
to properly use fire safety features including smoke alarms.
    This bill is supported by the following organizations: 
International Code Council, National Association of State Fire 
Marshals, National Low Income Housing Coalition, National Fire 
Protection Association, Public Citizen.

                      Section-by-Section Analysis


Section 1. Short title

           This section establishes the short title of 
        the bill as ``Public and Federally Assisted Housing 
        Fire Safety Act of 2022''.

Section 2. Smoke alarms in federally assisted housing

           This section requires the installation of 
        tamper resistant or hardwired smoke alarms in federally 
        assisted housing, including: public housing, tenant-
        based assistance units, project-based assistance units, 
        supportive housing for the elderly, supportive housing 
        for persons with disabilities, Housing Opportunities 
        for Persons with AIDS (HOPWA)-funded units, rural 
        housing, and Farm Labor Housing Direct Loans & Grants-
        funded units.
           For units built prior to the enactment of 
        the bill that do not already have a hardwired smoke 
        alarm, this section would require the installation of 
        tamper-resistant battery-powered smoke alarms that: (1) 
        are sealed; (2) include a silencing mechanism; and (3) 
        are able to provide notification for persons with 
        hearing loss.
           For new or substantially rehabilitated 
        units, this section would require the installation of 
        hardwired smoke alarms.

Section 3. Fire safety educational program

           This section requires HUD to run a national 
        educational campaign about housing health and safety 
        requirements, and how to properly use fire safety 
        features including self-closing doors, smoke alarms, 
        and carbon monoxide detectors. This section authorizes 
        the expenditure of $2M dollars for this program.

                                Hearings

    For the purposes of section 3(c)(6) of House rule XIII, the 
Committee on Financial Services' Subcommittee on Housing, 
Community Development and Insurance, held a hearing to consider 
H.R. 7981 entitled, ``Housing America: Addressing Challenges in 
Serving People Experiencing Homelessness,'' on February 2, 
2022. The Committee's Subcommittee on Housing, Community 
Development and Insurance held a second hearing to consider 
H.R. 7981 entitled ``A Matter of Life and Death: Improving Fire 
Safety in Federally Assisted Housing,'' on April 20, 2022.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
June 22, 2022, and ordered H.R. 7981 to be reported favorably 
to the House with an amendment in the nature of a substitute by 
a voice vote, a quorum being present.

                  Committee Votes and Roll Call Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
following roll call votes occurred during the Committee's 
consideration of H.R. 7981.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the descriptive portions of this report.

             Statement of Performance Goals and Objectives

    Pursuant to clause (3)(c) of rule XIII of the Rules of the 
House of Representatives, the goals of H.R. 7981 is to require 
the installation of either tamper resistant or hardwired smoke 
alarms in federally assisted housing.

               New Budget Authority and CBO Cost Estimate

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974, and pursuant to clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 402 of the Congressional Budget Act 
of 1974, the Committee has received the following estimate for 
H.R. 7981 from the Director of the Congressional Budget Office:

                        Committee Cost Estimate

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison of the 
costs that would be incurred in carrying out H.R. 7981. 
However, clause 3(d)(2)(B) of that rule provides that this 
requirement does not apply when the committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget Act.

                       Unfunded Mandate Statement

    Pursuant to Section 423 of the Congressional Budget and 
Impoundment Control Act (as amended by Section 101(a)(2) of the 
Unfunded Mandates Reform Act, Pub. L. 104-4), the Committee 
adopts its own the estimate of federal mandates regarding H.R. 
7981, as amended.

                           Advisory Committee

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

              Application of Law to the Legislative Branch

    Pursuant to section 102(b)(3) of the Congressional 
Accountability Act, Pub. L. No. 104-1, H.R. 7981, as amended, 
does not apply to terms and conditions of employment or to 
access to public services or accommodations within the 
legislative branch.

                           Earmark Statement

    In accordance with clause 9 of rule XXI of the Rules of the 
House of Representatives, H.R. 7981 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as described in clauses 9(e), 9(f), and 9(g) of rule 
XXI.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee states that no 
provision of H.R. 7981 establishes or reauthorizes a program of 
the Federal Government known to be duplicative of another 
federal program, a program that was included in any report from 
the Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

                        Changes to Existing Law

    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, H.R. 7981, as reported, are shown as follows:

         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 italics, 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.
          (9) Qualifying smoke alarms.--
                  (A) In general.--Each public housing agency 
                shall ensure that a qualifying smoke alarm is 
                installed in accordance with applicable codes 
                and standards published by the International 
                Code Council or the National Fire Protection 
                Association and the requirements of the 
                National Fire Protection Association Standard 
                72, or any successor standard, in each level 
                and in or near each sleeping area in any 
                dwelling unit in public housing owned or 
                operated by the public housing agency, 
                including in basements but excepting crawl 
                spaces and unfinished attics, and in each 
                common area in a project containing such a 
                dwelling unit.
                  (B) Definitions.--For purposes of this 
                paragraph, the following definitions shall 
                apply:
                          (i) Smoke alarm defined.--The term 
                        ``smoke alarm'' has the meaning given 
                        the term ``smoke detector'' in section 
                        29(d) of the Federal Fire Prevention 
                        and Control Act of 1974 (15 U.S.C. 
                        2225(d)).
                          (ii) Qualifying smoke alarm 
                        defined.--The term ``qualifying smoke 
                        alarm'' means a smoke alarm that--
                                  (I) in the case of a dwelling 
                                unit built before the date of 
                                enactment of this paragraph and 
                                not substantially rehabilitated 
                                after the date of enactment of 
                                this paragraph is--
                                          (aa) hardwired; or
                                          (bb) uses 10-year non 
                                        rechargeable, 
                                        nonreplaceable primary 
                                        batteries and--
                                                  (AA) is 
                                                sealed;
                                                  (BB) is 
                                                tamper 
                                                resistant;
                                                  (CC) contains 
                                                silencing 
                                                means; and
                                                  (DD) provides 
                                                notification 
                                                for persons 
                                                with hearing 
                                                loss as 
                                                required by the 
                                                National Fire 
                                                Protection 
                                                Association 
                                                Standard 72, or 
                                                any successor 
                                                standard; or
                                  (II) in the case of a 
                                dwelling unit built or 
                                substantially rehabilitated 
                                after the date of enactment of 
                                this paragraph, is hardwired.
  (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 youth described in section 8(x)(2)(B), 
        and (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.

           *       *       *       *       *       *       *


                    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 to the 
                certificate and moderate rehabilitation 
                programs only, for the purpose of selecting 
                families to be assisted, 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.
  (l) Qualifying Smoke Alarms.--
          (1) In general.--Each owner of a dwelling unit 
        receiving project-based assistance under this section 
        shall ensure that qualifying smoke alarms are installed 
        in accordance with applicable codes and standards 
        published by the International Code Council or the 
        National Fire Protection Association and the 
        requirements of the National Fire Protection 
        Association Standard 72, or any successor standard, in 
        each level and in or near each sleeping area in such 
        dwelling unit, including in basements but excepting 
        crawl spaces and unfinished attics, and in each common 
        area in a project containing such a dwelling unit.
          (2) Definitions.--For purposes of this subsection, 
        the following definitions shall apply:
                  (A) Smoke alarm defined.--The term ``smoke 
                alarm'' has the meaning given the term ``smoke 
                detector'' in section 29(d) of the Federal Fire 
                Prevention and Control Act of 1974 (15 U.S.C. 
                2225(d)).
                  (B) Qualifying smoke alarm defined.--The term 
                ``qualifying smoke alarm'' means a smoke alarm 
                that--
                          (i) in the case of a dwelling unit 
                        built before the date of enactment of 
                        this paragraph and not substantially 
                        rehabilitated after the date of 
                        enactment of this paragraph is--
                                  (I) hardwired; or
                                  (II) uses 10-year non 
                                rechargeable, nonreplaceable 
                                primary batteries and--
                                          (aa) is sealed;
                                          (bb) is tamper 
                                        resistant;
                                          (cc) contains 
                                        silencing means; and
                                          (dd) provides 
                                        notification for 
                                        persons with hearing 
                                        loss as required by the 
                                        National Fire 
                                        Protection Association 
                                        Standard 72, or any 
                                        successor standard; or
                          (ii) in the case of a dwelling unit 
                        built or substantially rehabilitated 
                        after the date of enactment of this 
                        paragraph, is hardwired.
  (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 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) Content.--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 residence and 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 
                        youths receiving assistance pursuant to 
                        subsection (x)(2)(B), 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 youths receiving 
                                assistance pursuant to 
                                subsection (x)(2)(B), 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 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 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 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.
                  (D) Veteran defined.--In this paragraph, the 
                term ``veteran'' has the meaning given that 
                term in section 2002(b) of title 38, United 
                States Code.
          (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.
          (22) Qualifying smoke alarms.--
                  (A) In general.--Each dwelling unit receiving 
                tenant-based assistance or project-based 
                assistance under this subsection shall have a 
                qualifying smoke alarm installed in accordance 
                with applicable codes and standards published 
                by the International Code Council or the 
                National Fire Protection Association and the 
                requirements of the National Fire Protection 
                Association Standard 72, or any successor 
                standard, in each level and in or near each 
                sleeping area in such dwelling unit, including 
                in basements but excepting crawl spaces and 
                unfinished attics, and in each common area in a 
                project containing such a dwelling unit.
                  (B) Definitions.--For purposes of this 
                paragraph, the following definitions shall 
                apply:
                          (i) Smoke alarm defined.--The term 
                        ``smoke alarm'' has the meaning given 
                        the term ``smoke detector'' in section 
                        29(d) of the Federal Fire Prevention 
                        and Control Act of 1974 (15 U.S.C. 
                        2225(d)).
                          (ii) Qualifying smoke alarm 
                        defined.--The term ``qualifying smoke 
                        alarm'' means a smoke alarm that--
                                  (I) in the case of a dwelling 
                                unit built before the date of 
                                enactment of this paragraph and 
                                not substantially rehabilitated 
                                after the date of enactment of 
                                this paragraph is--
                                          (aa) hardwired; or
                                          (bb) uses 10-year non 
                                        rechargeable, 
                                        nonreplaceable primary 
                                        batteries and--
                                                  (AA) is 
                                                sealed;
                                                  (BB) is 
                                                tamper 
                                                resistant;
                                                  (CC) contains 
                                                silencing 
                                                means; and
                                                  (DD) provides 
                                                notification 
                                                for persons 
                                                with hearing 
                                                loss as 
                                                required by the 
                                                National Fire 
                                                Protection 
                                                Association 
                                                Standard 72, or 
                                                any successor 
                                                standard; or
                                  (II) in the case of a 
                                dwelling unit built or 
                                substantially rehabilitated 
                                after the date of enactment of 
                                this paragraph, is hardwired.
  (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.
          (5) Supplements for administering assistance for 
        youth aging out of foster care.--The Secretary may 
        provide supplemental fees under this subsection to the 
        public housing agency for the cost of administering any 
        assistance for foster youth under subsection (x)(2)(B), 
        in an amount determined by the Secretary, but only if 
        the agency waives for such eligible youth receiving 
        assistance any residency requirement that it has 
        otherwise established pursuant to subsection 
        (r)(1)(B)(i).
  (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)subject to paragraph (5), 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 
        accordancewith 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.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.
          (3) Allocation.--
                  (A) In general.--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.
                  (B) Assistance for youth aging out of foster 
                care.--Notwithstanding any other provision of 
                law, the Secretary shall, subject only to the 
                availability of funds, allocate such assistance 
                to any public housing agencies that (i) 
                administer assistance pursuant to paragraph 
                (2)(B), or seek to administer such assistance, 
                consistent with procedures established by the 
                Secretary, (ii) have requested such assistance 
                so that they may provide timely assistance to 
                eligible youth, and (iii) have submitted to the 
                Secretary a statement describing how the agency 
                will connect assisted youths with local 
                community resources and self-sufficiency 
                services, to the extent they are available, and 
                obtain referrals from public child welfare 
                agencies regarding youths in foster care who 
                become eligible for such assistance.
          (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 and 
                establishing a point of contact at public 
                housing agencies to ensure that public housing 
                agencies receive appropriate referrals 
                regarding eligible recipients;
                  (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) Requirements for assistance for youth aging out 
        of foster care.--Assistance provided under this 
        subsection for an eligible youth pursuant to paragraph 
        (2)(B) shall be subject to the following requirements:
                  (A) Requirements to extend assistance.--
                          (i) Participation in family self-
                        sufficiency.--In the case of a public 
                        housing agency that is providing such 
                        assistance under this subsection on 
                        behalf of an eligible youth and that is 
                        carrying out a family self-sufficiency 
                        program under section 23, the agency 
                        shall, subject only to the availability 
                        of such assistance, extend the 
                        provision of such assistance for up to 
                        24 months beyond the period referred to 
                        in paragraph (2)(B), but only during 
                        such period that the youth is in 
                        compliance with the terms and 
                        conditions applicable under section 23 
                        and the regulations implementing such 
                        section to a person participating in a 
                        family self-sufficiency program.
                          (ii) Education, workforce 
                        development, or employment.--In the 
                        case of a public housing agency that is 
                        providing such assistance under this 
                        subsection on behalf of an eligible 
                        youth and that is not carrying out a 
                        family self-sufficiency program under 
                        section 23, or is carrying out such a 
                        program in which the youth has been 
                        unable to enroll, the agency shall, 
                        subject only to the availability of 
                        such assistance, extend the provision 
                        of such assistance for two successive 
                        12-month periods, after the period 
                        referred to in paragraph (2)(B), but 
                        only if for not less than 9 months of 
                        the 12-month period preceding each such 
                        extension the youth was--
                                  (I) engaged in obtaining a 
                                recognized postsecondary 
                                credential or a secondary 
                                school diploma or its 
                                recognized equivalent;
                                  (II) 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
                                  (III) 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 clause, a public housing agency 
                        shall consider employment as satisfying 
                        the requirements under this 
                        subparagraph.
                          (iii) Exceptions.--Notwithstanding 
                        clauses (i) and (ii), a public housing 
                        agency that is providing such 
                        assistance under this subsection on 
                        behalf of an eligible youth shall 
                        extend the provision of such assistance 
                        for up to 24 months beyond the period 
                        referred to in paragraph (2)(B), and 
                        clauses (i) and (ii) of this 
                        subparagraph shall not apply, if the 
                        eligible youth certifies that he or she 
                        is--
                                  (I) 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;
                                  (II) a person who is 
                                regularly and actively 
                                participating in a drug 
                                addiction or alcohol treatment 
                                and rehabilitation program; or
                                  (III) a person who is 
                                incapable of complying with the 
                                requirement under clause (i) or 
                                (ii), as applicable, due to a 
                                documented medical condition.
                          (iv) Verification of compliance.--The 
                        Secretary shall require the public 
                        housing agency to verify compliance 
                        with the requirements under this 
                        subparagraph by each eligible youth on 
                        whose behalf the agency provides such 
                        assistance under this subsection on an 
                        annual basis in conjunction with 
                        reviews of income for purposes of 
                        determining income eligibility for such 
                        assistance.
                  (B) Supportive services.--
                          (i) Eligibility.--Each eligible youth 
                        on whose behalf such assistance under 
                        this subsection is provided shall be 
                        eligible for any supportive services 
                        (as such term is defined in section 3 
                        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 
                        assistance.
                          (ii) Information.--Upon the initial 
                        provision of such assistance under this 
                        subsection on behalf of any eligible 
                        youth, the public housing agency shall 
                        inform such eligible youth of the 
                        existence of any programs or services 
                        referred to in clause (i) and of their 
                        eligibility for such programs and 
                        services.
                  (C) Applicability to moving to work 
                agencies.--Notwithstanding any other provision 
                of law, the requirements of this paragraph 
                shall apply to assistance under this subsection 
                pursuant to paragraph (2)(B) 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 
                clause (i) or (ii) of subparagraph (A) of this 
                paragraph, such an agency may comply with the 
                requirements under such clauses by complying 
                with such terms, conditions, and requirements 
                as may be established by the agency for persons 
                on whose behalf such rental assistance under 
                this subsection is provided.
                  (D) Termination of vouchers upon turn-over.--
                A public housing agency shall not reissue any 
                such assistance made available from 
                appropriated funds when assistance for the 
                youth initially assisted is terminated, unless 
                specifically authorized by the Secretary.
                  (E) Reports.--
                          (i) In general.--The Secretary shall 
                        require each public housing agency that 
                        provides such assistance under this 
                        subsection in any fiscal year to submit 
                        a report to the Secretary for such 
                        fiscal year that--
                                  (I) specifies the number of 
                                persons on whose behalf such 
                                assistance under this 
                                subsection was provided during 
                                such fiscal year;
                                  (II) specifies the number of 
                                persons who applied during such 
                                fiscal year for such assistance 
                                under this subsection, but were 
                                not provided such assistance, 
                                and provides a brief 
                                identification in each instance 
                                of the reason why the public 
                                housing agency was unable to 
                                award such assistance; and
                                  (III) describes how the 
                                public housing agency 
                                communicated or collaborated 
                                with public child welfare 
                                agencies to collect such data.
                          (ii) Information collections.--The 
                        Secretary shall, to the greatest extent 
                        possible, utilize existing information 
                        collections, including the voucher 
                        management system (VMS), the Inventory 
                        Management System/PIH Information 
                        Center (IMS/PIC), or the successors of 
                        those systems, to collect information 
                        required under this subparagraph.
                  (F) Consultation.--The Secretary 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 subsection relating to 
                assistance provided pursuant to paragraph 
                (2)(B).
          (6) 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.

           *       *       *       *       *       *       *

                              ----------                              


                          HOUSING ACT OF 1959



           *       *       *       *       *       *       *
TITLE II--HOUSING FOR THE ELDERLY OR HANDICAPPED

           *       *       *       *       *       *       *


SEC. 202. SUPPORTIVE HOUSING FOR THE ELDERLY.

  (a) Purpose.--The purpose of this section is to enable 
elderly persons to live with dignity and independence by 
expanding the supply of supportive housing that--
          (1) is designed to accommodate the special needs of 
        elderly persons; and
          (2) provides a range of services that are tailored to 
        the needs of elderly persons occupying such housing.
  (b) General Authority.--The Secretary is authorized to 
provide assistance to private nonprofit organizations and 
consumer cooperatives to expand the supply of supportive 
housing for the elderly. Such assistance shall be provided as 
(1) capital advances in accordance with subsection (c)(1), and 
(2) contracts for project rental assistance in accordance with 
subsection (c)(2). Such assistance may be used to finance the 
construction, reconstruction, or moderate or substantial 
rehabilitation of a structure or a portion of a structure, or 
the acquisition of a structure, to be used as supportive 
housing for the elderly in accordance with this section. 
Assistance may also cover the cost of real property 
acquisition, site improvement, conversion, demolition, 
relocation, and other expenses that the Secretary determines 
are necessary to expand the supply of supportive housing for 
the elderly.
  (c) Forms of Assistance.--
          (1) Capital advances.--A capital advance provided 
        under this section shall bear no interest and its 
        repayment shall not be required so long as the housing 
        remains available for very low-income elderly persons 
        in accordance with this section. Such advance shall be 
        in an amount calculated in accordance with the 
        development cost limitation established in subsection 
        (h).
          (2) Project rental assistance.--Contracts for project 
        rental assistance shall obligate the Secretary to make 
        monthly payments to cover any part of the costs 
        attributed to units occupied (or, as approved by the 
        Secretary, held for occupancy) by very low-income 
        elderly persons that is not met from project income. 
        The annual contract amount for any project shall not 
        exceed the sum of the initial annual project rentals 
        for all units so occupied and any initial utility 
        allowances for such units, as approved by the 
        Secretary. Any contract amounts not used by a project 
        in any year shall remain available to the project until 
        the expiration of the contract. The Secretary may 
        adjust the annual contract amount if the sum of the 
        project income and the amount of assistance payments 
        available under this paragraph are inadequate to 
        provide for reasonable project costs.
          (3) Tenant rent contribution.--A very low-income 
        person shall pay as rent for a dwelling unit assisted 
        under this section the highest of the following 
        amounts, rounded to the nearest dollar: (A) 30 percent 
        of the person's adjusted monthly income, (B) 10 percent 
        of the person's monthly income, or (C) if the person is 
        receiving payments for welfare assistance from a public 
        agency and a part of such payments, adjusted in 
        accordance with the person's actual housing costs, is 
        specifically designated by such agency to meet the 
        person's housing costs, the portion of such payments 
        which is so designated.
  (d) Term of Commitment.--
          (1) Use limitations.--All units in housing assisted 
        under this section shall be made available for 
        occupancy by very low-income elderly persons for not 
        less than 40 years.
          (2) Contract terms.--The initial term of a contract 
        entered into under subsection (c)(2) shall be 240 
        months. The Secretary shall, to the extent approved in 
        appropriation Acts, extend any expiring contract for a 
        term of not less than 60 months. In order to facilitate 
        the orderly extension of expiring contracts, the 
        Secretary is authorized to make commitments to extend 
        expiring contracts during the year prior to the date of 
        expiration.
  (e) Applications.--Funds made available under this section 
shall be allocated by the Secretary among approvable 
applications submitted by private nonprofit organizations. 
Applications for assistance under this section shall be 
submitted by an applicant in such form and in accordance with 
such procedures as the Secretary shall establish. Such 
applications shall contain--
          (1) a description of the proposed housing;
          (2) a description of the assistance the applicant 
        seeks under this section;
          (3) a description of the resources that are expected 
        to be made available in compliance with subsection (h);
          (4) a description of (A) the category or categories 
        of elderly persons the housing is intended to serve; 
        (B) the supportive services, if any, to be provided to 
        the persons occupying such housing; (C) the manner in 
        which such services will be provided to such persons, 
        including, in the case of frail elderly persons, 
        evidence of such residential supervision as the 
        Secretary determines is necessary to facilitate the 
        adequate provision of such services; and (D) the public 
        or private sources of assistance that can reasonably be 
        expected to fund or provide such services;
          (5) a certification from the public official 
        responsible for submitting a housing strategy for the 
        jurisdiction to be served in accordance with section 
        105 of the Cranston-Gonzalez National Affordable 
        Housing Act that the proposed project is consistent 
        with the approved housing strategy; and
          (6) such other information or certifications that the 
        Secretary determines to be necessary or appropriate to 
        achieve the purposes of this section.
The Secretary shall not reject an application on technical 
grounds without giving notice of that rejection and the basis 
therefor to the applicant and affording the applicant an 
opportunity to respond.
  (f) Initial Selection Criteria and Processing.--(1) Selection 
criteria.--The Secretary shall establish selection criteria for 
assistance under this section, which shall include--
          (A) the ability of the applicant to develop and 
        operate the proposed housing;
          (B) the need for supportive housing for the elderly 
        in the area to be served;, taking into consideration 
        the availability of public housing for the elderly and 
        vacancy rates in such facilities
          (C) the extent to which the proposed size and unit 
        mix of the housing will enable the applicant to manage 
        and operate the housing efficiently and ensure that the 
        provision of supportive services will be accomplished 
        in an economical fashion;
          (D) the extent to which the proposed design of the 
        housing will meet the special physical needs of elderly 
        persons;
          (E) the extent to which the applicant has 
        demonstrated that the supportive services identified in 
        subsection (e)(4) will be provided on a consistent, 
        long-term basis;
          (F) the extent to which the proposed design of the 
        housing will accommodate the provision of supportive 
        services that are expected to be needed, either 
        initially or over the useful life of the housing, by 
        the category or categories of elderly persons the 
        housing is intended to serve; and
          (G) such other factors as the Secretary determines to 
        be appropriate to ensure that funds made available 
        under this section are used effectively.
          (2) Delegated processing.--
                  (A) In issuing a capital advance under this 
                subsection for any project for which financing 
                for the purposes described in the last two 
                sentences of subsection (b) is provided by a 
                combination of a capital advance under 
                subsection (c)(1) and sources other than this 
                section, within 30 days of award of the capital 
                advance, the Secretary shall delegate review 
                and processing of such projects to a State or 
                local housing agency that--
                          (i) is in geographic proximity to the 
                        property;
                          (ii) has demonstrated experience in 
                        and capacity for underwriting 
                        multifamily housing loans that provide 
                        housing and supportive services;
                          (iii) may or may not be providing 
                        low-income housing tax credits in 
                        combination with the capital advance 
                        under this section, and
                          (iv) agrees to issue a firm 
                        commitment within 12 months of 
                        delegation.
                  (B) The Secretary shall retain the authority 
                to process capital advances in cases in which 
                no State or local housing agency has applied to 
                provide delegated processing pursuant to this 
                paragraph or no such agency has entered into an 
                agreement with the Secretary to serve as a 
                delegated processing agency.
                  (C) An agency to which review and processing 
                is delegated pursuant to subparagraph (A) may 
                assess a reasonable fee which shall be included 
                in the capital advance amounts and may 
                recommend project rental assistance amounts in 
                excess of those initially awarded by the 
                Secretary. The Secretary shall develop a 
                schedule for reasonable fees under this 
                subparagraph to be paid to delegated processing 
                agencies, which shall take into consideration 
                any other fees to be paid to the agency for 
                other funding provided to the project by the 
                agency, including bonds, tax credits, and other 
                gap funding.
                  (D) Under such delegated system, the 
                Secretary shall retain the authority to approve 
                rents and development costs and to execute a 
                capital advance within 60 days of receipt of 
                the commitment from the State or local agency. 
                The Secretary shall provide to such agency and 
                the project sponsor, in writing, the reasons 
                for any reduction in capital advance amounts or 
                project rental assistance and such reductions 
                shall be subject to appeal.
  (g) Provisions of Services.--
          (1) In general.--In carrying out the provisions of 
        this section, the Secretary shall ensure that housing 
        assisted under this section provides a range of 
        services tailored to the needs of the category or 
        categories of elderly persons (including frail elderly 
        persons) occupying such housing. Such services may 
        include (A) meal service adequate to meet nutritional 
        need; (B) housekeeping aid; (C) personal assistance; 
        (D) transportation services; (E) health-related 
        services; and (F) such other services as the Secretary 
        deems essential for maintaining independent living. The 
        Secretary may permit the provision of services to 
        elderly persons who are not residents if the 
        participation of such persons will not adversely affect 
        the cost-effectiveness or operation of the program or 
        add significantly to the need for assistance under this 
        Act.
          (2) Local coordination of services.--The Secretary 
        shall ensure that owners have the managerial capacity 
        to--
                  (A) assess on an ongoing basis the service 
                needs of residents;
                  (B) coordinate the provision of supportive 
                services and tailor such services to the 
                individual needs of residents; and
                  (C) seek on a continuous basis new sources of 
                assistance to ensure the long-term provision of 
                supportive services.
        Any cost associated with this subsection shall be an 
        eligible cost under subsection (c)(2).
          (3) Service coordinators.--Any cost associated with 
        employing or otherwise retaining a service coordinator 
        in housing assisted under this section shall be 
        considered an eligible cost under subsection (c)(2). If 
        a project is receiving congregate housing services 
        assistance under section 802 of the Cranston-Gonzalez 
        National Affordable Housing Act, the amount of costs 
        provided under subsection (c)(2) for the project 
        service coordinator may not exceed the additional 
        amount necessary to cover the costs of providing for 
        the coordination of services for residents of the 
        project who are not eligible residents under such 
        section 802. To the extent that amounts are available 
        pursuant to subsection (c)(2) for the costs of carrying 
        out this paragraph within a project, an owner of 
        housing assisted under this section shall provide a 
        service coordinator for the housing to coordinate the 
        provision of services under this subsection within the 
        housing.
  (h) Development Cost Limitations.--
          (1) In general.--The Secretary shall periodically 
        establish development cost limitations by market area 
        for various types and sizes of supportive housing for 
        the elderly by publishing a notice of the cost 
        limitations in the Federal Register. The cost 
        limitations shall reflect--
                  (A) the cost of construction, reconstruction, 
                or rehabilitation of supportive housing for the 
                elderly that meets applicable State and local 
                housing and building codes;
                  (B) the cost of movables necessary to the 
                basic operation of the housing, as determined 
                by the Secretary;
                  (C) the cost of special design features 
                necessary to make the housing accessible to 
                elderly persons;
                  (D) the cost of special design features 
                necessary to make individual dwelling units 
                meet the physical needs of elderly project 
                residents;
                  (E) the cost of congregate space necessary to 
                accommodate the provision of supportive 
                services to elderly project residents;
                  (F) if the housing is newly constructed, the 
                cost of meeting the energy efficiency standards 
                promulgated by the Secretary in accordance with 
                section 109 of the Cranston-Gonzalez National 
                Affordable Housing Act; and
                  (G) the cost of land, including necessary 
                site improvement.
        In establishing development cost limitations for a 
        given market area under this subsection, the Secretary 
        shall use data that reflect currently prevailing costs 
        of construction, reconstruction, or rehabilitation, and 
        land acquisition in the area. For purposes of this 
        paragraph, the term ``congregate space'' shall include 
        space for cafeterias or dining halls, community rooms 
        or buildings, workshops, adult day health facilities, 
        or other outpatient health facilities, or other 
        essential service facilities. Neither this section nor 
        any other provision of law may be construed as 
        prohibiting or preventing the location and operation, 
        in a project assisted under this section, of commercial 
        facilities for the benefit of residents of the project 
        and the community in which the project is located, 
        except that assistance made available under this 
        section may not be used to subsidize any such 
        commercial facility.
          (2) Acquisition.--In the case of existing housing and 
        related facilities to be acquired, the cost limitations 
        shall include--
                  (A) the cost of acquiring such housing,
                  (B) the cost of rehabilitation, alteration, 
                conversion, or improvement, including the 
                moderate rehabilitation thereof, and
                  (C) the cost of the land on which the housing 
                and related facilities are located.
          (3) Annual adjustments.--The Secretary shall adjust 
        the cost limitation not less than once annually to 
        reflect changes in the general level of construction, 
        reconstruction, or rehabilitation costs.
          (4) Incentives for savings.--
                  (A) Special housing account.--The Secretary 
                shall use the development cost limitations 
                established under paragraph (1) or (2) to 
                calculate the amount of financing to be made 
                available to individual owners. Owners which 
                incur actual development costs that are less 
                than the amount of financing shall be entitled 
                to retain 50 percent of the savings in a 
                special housing account. Such percentage shall 
                be increased to 75 percent for owners which add 
                energy efficiency features which--
                          (i) exceed the energy efficiency 
                        standards promulgated by the Secretary 
                        in accordance with section 109 of the 
                        Cranston-Gonzalez National Affordable 
                        Housing Act;
                          (ii) substantially reduce the life-
                        cycle cost of the housing;
                          (iii) reduce gross rent requirements; 
                        and
                          (iv) enhance tenant comfort and 
                        convenience.
                  (B) Uses.--The special housing account 
                established under subparagraph (A) may be used 
                (i) to supplement services provided to 
                residents of the housing or funds set aside for 
                replacement reserves, or (ii) for such other 
                purposes as determined by the Secretary.
          (5) Design flexibility.--The Secretary shall, to the 
        extent practicable, give owners the flexibility to 
        design housing appropriate to their location and 
        proposed resident population within broadly defined 
        parameters.
          (6) Use of funds from other sources.--An owner shall 
        be permitted voluntarily to provide funds from sources 
        other than this section for amenities and other 
        features of appropriate design and construction 
        suitable for supportive housing for the elderly if the 
        cost of such amenities is (A) not financed with the 
        advance, and (B) is not taken into account in 
        determining the amount of Federal assistance or of the 
        rent contribution of tenants. Notwithstanding any other 
        provision of law, assistance amounts provided under 
        this section may be treated as amounts not derived from 
        a Federal grant.
  (i) Tenant Selection.--
          (1) In general.--An owner shall adopt written tenant 
        selection procedures that are satisfactory to the 
        Secretary as (A) consistent with the purpose of 
        improving housing opportunities for very low-income 
        elderly persons; and (B) reasonably related to program 
        eligibility and an applicant's ability to perform the 
        obligations of the lease. Such tenant selection 
        procedures shall comply with subtitle C of title VI of 
        the Housing and Community Development Act of 1992 and 
        any regulations issued under such subtitle. Owners 
        shall promptly notify in writing any rejected applicant 
        of the grounds for any rejection.
          (2) Information regarding housing under this 
        section.--The Secretary shall provide to an appropriate 
        agency in each area (which may be the applicable Area 
        Agency on the Aging) information regarding the 
        availability of housing assisted under this section.
  (j) Miscellaneous Provisions.--
          (1) Technical assistance.--The Secretary shall make 
        available appropriate technical assistance to assure 
        that applicants having limited resources, particularly 
        minority applicants, are able to participate more fully 
        in the program carried out under this section.
          (2) Civil rights compliance.--Each owner shall 
        certify, to the satisfaction of the Secretary, that 
        assistance made available under this section will be 
        conducted and administered in conformity with title VI 
        of the Civil Rights Act of 1964, the Fair Housing Act, 
        and other Federal, State, and local laws prohibiting 
        discrimination and promoting equal opportunity.
          (3) Owner deposit.--
                  (A) In general.--The Secretary shall require 
                an owner to deposit an amount not to exceed 
                $25,000 in a special escrow account to assure 
                the owner's commitment to the housing.
                  (B) Reduction of requirement.--The Secretary 
                may reduce or waive the owner deposit specified 
                under paragraph (1) for individual applicants 
                if the Secretary finds that such waiver or 
                reduction is necessary to achieve the purposes 
                of this section and the applicant demonstrates 
                to the satisfaction of the Secretary that it 
                has the capacity to manage and maintain the 
                housing in accordance with this section. The 
                Secretary shall reduce or waive the requirement 
                of the owner deposit under paragraph (1) in the 
                case of a nonprofit applicant that is not 
                affiliated with a national sponsor, as 
                determined by the Secretary.
          (4) Notice of appeal.--The Secretary shall notify an 
        owner not less than 30 days prior to canceling any 
        reservation of assistance provided under this section. 
        During the 30-day period following the receipt of a 
        notice under the preceding sentence, an owner may 
        appeal the proposed cancellation of loan authority. 
        Such appeal, including review by the Secretary, shall 
        be completed not later than 45 days after the appeal is 
        filed.
  (5) Labor.--
          (A) In general.--The Secretary shall take such action 
        as may be necessary to ensure that all laborers and 
        mechanics employed by contractors and subcontractors in 
        the construction of housing with 12 or more units 
        assisted under this section shall be paid wages at 
        rates not less than the rates prevailing in the 
        locality involved for the corresponding classes of 
        laborers and mechanics employed on construction of a 
        similar character, as determined by the Secretary of 
        Labor in accordance with the Act of March 3, 1931 
        (commonly known as the Davis-Bacon Act).
          (B) Exemption.--Subparagraph (A) shall not apply to 
        any individual who--
                  (i) performs services for which the 
                individual volunteered;
                  (ii)(I) does not receive compensation for 
                such services; or
                  (II) is paid expenses, reasonable benefits, 
                or a nominal fee for such services; and
                  (iii) is not otherwise employed at any time 
                in the construction work.
          (6) Access to residual receipts.--The Secretary shall 
        authorize the owner of a project assisted under this 
        section to use any residual receipts held for the 
        project in excess of $500 per unit (or in excess of 
        such other amount prescribed by the Secretary based on 
        the needs of the project) for activities to retrofit 
        and renovate the project described under section 
        802(d)(3) of the Cranston-Gonzalez National Affordable 
        Housing Act, to provide a service coordinator for the 
        project as described in section 802(d)(4) of such Act, 
        or to provide supportive services (as such term is 
        defined in section 802(k) of such Act) to residents of 
        the project. Any owner that uses residual receipts 
        under this paragraph shall submit to the Secretary a 
        report, not less than annually, describing the uses of 
        the residual receipts. In determining the amount of 
        project rental assistance to be provided to a project 
        under subsection (c)(2) of this section, the Secretary 
        may take into consideration the residual receipts held 
        for the project only if, and to the extent that, excess 
        residual receipts are not used under this paragraph.
          (7) Compliance with housing and community development 
        act of 1992.--Each owner shall operate housing assisted 
        under this section in compliance with subtitle C of 
        title VI of the Housing and Community Development Act 
        of 1992 and any regulations issued under such subtitle.
          (8) Use of project reserves.--Amounts for project 
        reserves for a project assisted under this section may 
        be used for costs, subject to reasonable limitations as 
        the Secretary determines appropriate, for reducing the 
        number of dwelling units in the project. Such use shall 
        be subject to the approval of the Secretary to ensure 
        that the use is designed to retrofit units that are 
        currently obsolete or unmarketable.
          (10) Qualifying smoke alarms.--
                  (A) In general.--Each owner of a dwelling 
                unit assisted under this section shall ensure 
                that qualifying smoke alarms are installed in 
                accordance with the requirements of applicable 
                codes and standards and the National Fire 
                Protection Association Standard 72, or any 
                successor standard, in each level and in or 
                near each sleeping area in such dwelling unit, 
                including in basements but excepting crawl 
                spaces and unfinished attics, and in each 
                common area in a project containing such a 
                dwelling unit.
                  (B) Definitions.--For purposes of this 
                paragraph, the following definitions shall 
                apply:
                          (i) Smoke alarm defined.--The term 
                        ``smoke alarm'' has the meaning given 
                        the term ``smoke detector'' in section 
                        29(d) of the Federal Fire Prevention 
                        and Control Act of 1974 (15 U.S.C. 
                        2225(d)).
                          (ii) Qualifying smoke alarm 
                        defined.--The term ``qualifying smoke 
                        alarm'' means a smoke alarm that--
                                  (I) in the case of a dwelling 
                                unit built before the date of 
                                enactment of this paragraph and 
                                not substantially rehabilitated 
                                after the date of enactment of 
                                this paragraph is--
                                          (aa) hardwired; or
                                          (bb) uses 10-year non 
                                        rechargeable, 
                                        nonreplaceable primary 
                                        batteries and--
                                                  (AA) is 
                                                sealed;
                                                  (BB) is 
                                                tamper 
                                                resistant;
                                                  (CC) contains 
                                                silencing 
                                                means; and
                                                  (DD) provides 
                                                notification 
                                                for persons 
                                                with hearing 
                                                loss as 
                                                required by the 
                                                National Fire 
                                                Protection 
                                                Association 
                                                Standard 72, or 
                                                any successor 
                                                standard; or
                                  (II) in the case of a 
                                dwelling unit built or 
                                substantially rehabilitated 
                                after the date of enactment of 
                                this paragraph, is hardwired.
  (k) Definitions.--
          (1) The term ``elderly person'' means a household 
        composed of one or more persons at least one of whom is 
        62 years of age or more at the time of initial 
        occupancy.
          (2) The term ``frail elderly'' means an elderly 
        person who is unable to perform at least 3 activities 
        of daily living adopted by the Secretary for purposes 
        of this program. Owners may establish additional 
        eligibility requirements (acceptable to the Secretary) 
        based on the standards in local supportive services 
        programs.
          (3) The term ``owner'' means a private nonprofit 
        organization that receives assistance under this 
        section to develop and operate supportive housing for 
        the elderly.
          (4) The term ``private nonprofit organization'' means 
        any incorporated private institution or foundation--
                  (A) no part of the net earnings of which 
                inures to the benefit of any member, founder, 
                contributor, or individual;
                  (B) which has a governing board (i) the 
                membership of which is selected in a manner to 
                assure that there is significant representation 
                of the views of the community in which such 
                housing is located, and (ii) which is 
                responsible for the operation of the housing 
                assisted under this section; and
                  (C) which is approved by the Secretary as to 
                financial responsibility.
        Such term includes a for-profit limited partnership the 
        sole general partner of which is an organization 
        meeting the requirements under subparagraphs (A), (B), 
        and (C), or a corporation wholly owned and controlled 
        by an organization meeting the requirements under 
        subparagraphs (A), (B), and (C).
          (5) The term ``State'' includes the several States, 
        the District of Columbia, the Commonwealth of Puerto 
        Rico, and the possessions of the United States.
          (6) The term ``Secretary'' means the Secretary of 
        Housing and Urban Development.
          (7) The term ``supportive housing for the elderly'' 
        means housing that is designed (A) to meet the special 
        physical needs of elderly persons and (B) to 
        accommodate the provision of supportive services that 
        are expected to be needed, either initially or over the 
        useful life of the housing, by the category or 
        categories of elderly persons that the housing is 
        intended to serve.
          (8) The term ``very low-income'' has the same meaning 
        as given the term ``very low-income families'' under 
        section 3(b)(2) of the United States Housing Act of 
        1937.
  (l) Allocation of Funds.--
          (1) Capital advances.--Of any amounts made available 
        for assistance under this section, such sums as may be 
        necessary shall be available for funding capital 
        advances in accordance with subsection (c)(1). Such 
        amounts, the repayments from such advances, and the 
        proceeds from notes or obligations issued under this 
        section prior to the enactment of the Cranston-Gonzalez 
        National Affordable Housing Act shall constitute a 
        revolving fund to be used by the Secretary in carrying 
        out this section.
          (2) Project rental assistance.--Of any amounts made 
        available for assistance under this section, such sums 
        as may be necessary shall be available for funding 
        project rental assistance in accordance with subsection 
        (c)(2).
          (3) Nonmetropolitan allocation.--Not less than 20 
        percent of the funds made available for assistance 
        under this section shall be allocated by the Secretary 
        on a national basis for nonmetropolitan areas.
  (m) Authorization of Appropriations.--There is authorized to 
be appropriated for providing assistance under this section 
$710,000,000 for fiscal year 2000.
  (m) Authorization of Appropriations.--There are authorized to 
be appropriated for providing assistance under this section 
such sums as may be necessary for each of fiscal years 2001, 
2002, and 2003.

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           CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT



           *       *       *       *       *       *       *
TITLE VIII--HOUSING FOR PERSONS WITH SPECIAL NEEDS

           *       *       *       *       *       *       *


      Subtitle B--Supportive Housing for Persons With Disabilities

SEC. 811. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES.

  (a) Purpose.--The purpose of this section is to enable 
persons with disabilities to live with dignity and independence 
within their communities by expanding the supply of supportive 
housing that--
          (1) is designed to accommodate the special needs of 
        such persons;
          (2) makes available supportive services that address 
        the individual health, mental health, and other needs 
        of such persons; and
          (3) promotes and facilitates community integration 
        for people with significant and long-term disabilities.
  (b)(b) Authority To Provide Assistance.--The Secretary is 
authorized to take the following actions:
          (1) Tenant-based assistance.--To provide tenant-based 
        rental assistance to eligible persons with 
        disabilities, in accordance with subsection (d)(4).
          (2) Capital advances.--To provide assistance to 
        private, nonprofit organizations to expand the supply 
        of supportive housing for persons with disabilities, 
        which shall be provided as--
                  (A) capital advances in accordance with 
                subsection (d)(1), and
                  (B) contracts for project rental assistance 
                in accordance with subsection (d)(2);
        assistance under this paragraph may be used to finance 
        the acquisition, acquisition and moderate 
        rehabilitation, construction, reconstruction, or 
        moderate or substantial rehabilitation of housing, 
        including the acquisition from the Resolution Trust 
        Corporation, to be used as supportive housing for 
        persons with disabilities and may include real property 
        acquisition, site improvement, conversion, demolition, 
        relocation, and other expenses that the Secretary 
        determines are necessary to expand the supply of 
        supportive housing for persons with disabilities.
          (3) Project rental assistance.--
                  (A) In general.--To offer additional methods 
                of financing supportive housing for non-elderly 
                adults with disabilities, the Secretary shall 
                make funds available for project rental 
                assistance pursuant to subparagraph (B) for 
                eligible projects under subparagraph (C). The 
                Secretary shall provide for State housing 
                finance agencies and other appropriate entities 
                to apply to the Secretary for such project 
                rental assistance funds, which shall be made 
                available by such agencies and entities for 
                dwelling units in eligible projects based upon 
                criteria established by the Secretary. The 
                Secretary may not require any State housing 
                finance agency or other entity applying for 
                such project rental assistance funds to 
                identify in such application the eligible 
                projects for which such funds will be used, and 
                shall allow such agencies and applicants to 
                subsequently identify such eligible projects 
                pursuant to the making of commitments described 
                in subparagraph (C)(ii).
                  (B) Contract terms.--
                          (i) Contract terms.--Project rental 
                        assistance under this paragraph shall 
                        be provided--
                                  (I) in accordance with 
                                subsection (d)(2); and
                                  (II) under a contract having 
                                an initial term of not less 
                                than 180 months that provides 
                                funding for a term 60 months, 
                                which funding shall be renewed 
                                upon expiration, subject to the 
                                availability of sufficient 
                                amounts in appropriation Acts.
                          (ii) Limitation on units assisted.--
                        Of the total number of dwelling units 
                        in any multifamily housing project 
                        containing any unit for which project 
                        rental assistance under this paragraph 
                        is provided, the aggregate number that 
                        are provided such project rental 
                        assistance, that are used for 
                        supportive housing for persons with 
                        disabilities, or to which any occupancy 
                        preference for persons with 
                        disabilities applies, may not exceed 25 
                        percent of such total.
                          (iii) Prohibition of capital 
                        advances.--The Secretary may not 
                        provide a capital advance under 
                        subsection (d)(1) for any project for 
                        which assistance is provided under this 
                        paragraph.
                          (iv) Eligible population.--Project 
                        rental assistance under this paragraph 
                        may be provided only for dwelling units 
                        for extremely low-income persons with 
                        disabilities and extremely low-income 
                        households that include at least one 
                        person with a disability.
                  (C) Eligible projects.--An eligible project 
                under this subparagraph is a new or existing 
                multifamily housing project for which--
                          (i) the development costs are paid 
                        with resources from other public or 
                        private sources; and
                          (ii) a commitment has been made--
                                  (I) by the applicable State 
                                agency responsible for 
                                allocation of low-income 
                                housing tax credits under 
                                section 42 of the Internal 
                                Revenue Code of 1986, for an 
                                allocation of such credits;
                                  (II) by the applicable 
                                participating jurisdiction that 
                                receives assistance under the 
                                HOME Investment Partnership 
                                Act, for assistance from such 
                                jurisdiction; or
                                  (III) by any Federal agency 
                                or any State or local 
                                government, for funding for the 
                                project from funds from any 
                                other sources.
                  (D) State agency involvement.--Assistance 
                under this paragraph may be provided only for 
                projects for which the applicable State agency 
                responsible for health and human services 
                programs, and the applicable State agency 
                designated to administer or supervise the 
                administration of the State plan for medical 
                assistance under title XIX of the Social 
                Security Act, have entered into such agreements 
                as the Secretary considers appropriate--
                          (i) to identify the target 
                        populations to be served by the 
                        project;
                          (ii) to set forth methods for 
                        outreach and referral; and
                          (iii) to make available appropriate 
                        services for tenants of the project.
                  (E) Use requirements.--In the case of any 
                project for which project rental assistance is 
                provided under this paragraph, the dwelling 
                units assisted pursuant to subparagraph (B) 
                shall be operated for not less than 30 years as 
                supportive housing for persons with 
                disabilities, in accordance with the 
                application for the project approved by the 
                Secretary, and such dwelling units shall, 
                during such period, be made available for 
                occupancy only by persons and households 
                described in subparagraph (B)(iv).
                  (F) Report.--Not later than 3 years after the 
                date of the enactment of this paragraph, and 
                again 2 years thereafter, the Secretary shall 
                submit to Congress a report--
                          (i) describing the assistance 
                        provided under this paragraph;
                          (ii) analyzing the effectiveness of 
                        such assistance, including the 
                        effectiveness of such assistance 
                        compared to the assistance program for 
                        capital advances set forth under 
                        subsection (d)(1) (as in effect 
                        pursuant to the amendments made by such 
                        Act); and
                          (iii) making recommendations 
                        regarding future models for assistance 
                        under this section.
  (c) General Requirements.--The Secretary shall take such 
actions as may be necessary to ensure that--
          (1) assistance made available under this section will 
        be used to meet the housing and community-based 
        services needs of persons with disabilities by 
        providing a variety of housing options, ranging from 
        group homes and independent living facilities to 
        dwelling units in multifamily housing developments, 
        condominium housing, and cooperative housing; and
          (2) supportive housing for persons with disabilities 
        assisted under this section shall--
                  (A) make available voluntary supportive 
                services that address the individual needs of 
                persons with disabilities occupying such 
                housing;
                  (B) provide such persons with opportunities 
                for optimal independent living and 
                participation in normal daily activities; and
                  (C) facilitate access by such persons to the 
                community at large and to suitable employment 
                opportunities within such community.
  (d) Forms of Assistance.--
          (1) Capital advances.--A capital advance provided 
        pursuant to subsection (b)(1) shall bear no interest 
        and its repayment shall not be required so long as the 
        housing remains available for very-low-income persons 
        with disabilities in accordance with this section. Such 
        advance shall be in an amount calculated in accordance 
        with the development cost limitation established in 
        subsection (h).
          (2) Project rental assistance.--(A) Initial project 
        rental assistance contract.--Contracts for project 
        rental assistance shall comply with subsection (e)(2) 
        and shall obligate the Secretary to make monthly 
        payments to cover any part of the costs attributed to 
        units occupied (or, as approved by the Secretary, held 
        for occupancy) by very low-income persons with 
        disabilities that is not met from project income. The 
        amount provided under the contract for each year 
        covered by the contract for any project shall not 
        exceed the sum of the initial annual project rentals 
        for all units and any initial utility allowances for 
        such units, as approved by the Secretary. Any contract 
        amounts not used by a project in any year shall remain 
        available to the project until the expiration of the 
        contract. The Secretary may adjust the amount provided 
        under the contract for each year covered by the 
        contract if the sum of the project income and the 
        amount of assistance payments available under this 
        paragraph are inadequate to provide for reasonable 
        project costs. In the case of an intermediate care 
        facility which is the residence of persons assisted 
        under title XIX of the Social Security Act, project 
        income under this paragraph shall include the same 
        amount as if such person were being assisted under 
        title XVI of the Social Security Act.
          (B) Renewal of and increases in contract amounts.--
                  (i) Expiration of contract term.--Upon the 
                expiration of each contract term, subject to 
                the availability of amounts made available in 
                appropriation Acts, the Secretary shall adjust 
                the annual contract amount to provide for 
                reasonable project costs, including adequate 
                reserves and service coordinators as 
                appropriate, except that any contract amounts 
                not used by a project during a contract term 
                shall not be available for such adjustments 
                upon renewal.
                  (ii) Emergency situations.--In the event of 
                emergency situations that are outside the 
                control of the owner, the Secretary shall 
                increase the annual contract amount, subject to 
                reasonable review and limitations as the 
                Secretary shall provide.
          (3) Rent contribution.--A very low-income person 
        shall pay as rent for a dwelling unit assisted under 
        subsection (b)(2) the higher of the following amounts, 
        rounded to the nearest dollar: (A) 30 percent of the 
        person's adjusted monthly income, (B) 10 percent of the 
        person's monthly income, or (C) if the person is 
        receiving payments for welfare assistance from a public 
        agency and a part of such payments, adjusted in 
        accordance with the person's actual housing costs, is 
        specifically designated by such agency to meet the 
        person's housing costs, the portion of such payments 
        which is so designated; except that the gross income of 
        a person occupying an intermediate care facility 
        assisted under title XIX of the Social Security Act 
        shall be the same amount as if the person were being 
        assisted under title XVI of the Social Security Act.
          (4) Tenant-based rental assistance.--
                  (A) In general.--Tenant-based rental 
                assistance provided under subsection (b)(1) 
                shall be provided under section 8(o) of the 
                United States Housing Act of 1937 (42 U.S.C. 
                1437f(o)).
                  (B) Conversion of existing assistance.--There 
                is authorized to be appropriated for tenant-
                based rental assistance under section 8(o) of 
                the United States Housing Act of 1937 (42 
                U.S.C. 1437f(o)) for persons with disabilities 
                an amount not less than the amount necessary to 
                convert the number of authorized vouchers and 
                funding under an annual contributions contract 
                in effect on the date of enactment of the Frank 
                Melville Supportive Housing Investment Act of 
                2010. Such converted vouchers may be 
                administered by the entity administering the 
                vouchers prior to conversion. For purposes of 
                administering such converted vouchers, such 
                entities shall be considered a ``public housing 
                agency'' authorized to engage in the operation 
                of tenant-based assistance under section 8 of 
                the United States Housing Act of 1937.
                  (C) Requirements upon turnover.--The 
                Secretary shall develop and issue, to public 
                housing agencies that receive voucher 
                assistance made available under this subsection 
                and to public housing agencies that received 
                voucher assistance under section 8(o) of the 
                United States Housing Act of 1937 (42 U.S.C. 
                1437f(o)) for non-elderly disabled families 
                pursuant to appropriation Acts for fiscal years 
                1997 through 2002 or any other subsequent 
                appropriations for incremental vouchers for 
                non-elderly disabled families, guidance to 
                ensure that, to the maximum extent possible, 
                such vouchers continue to be provided upon 
                turnover to qualified persons with disabilities 
                or to qualified non-elderly disabled families, 
                respectively.
  (e) Program Requirements.--
          (1) Use restrictions.--
                  (A) Term.--Any project for which a capital 
                advance is provided under subsection (d)(1) 
                shall be operated for not less than 40 years as 
                supportive housing for persons with 
                disabilities, in accordance with the 
                application for the project approved by the 
                Secretary and shall, during such period, be 
                made available for occupancy only by very low-
                income persons with disabilities.
                  (B) Conversion.--If the owner of a project 
                requests the use of the project for the direct 
                benefit of very low-income persons with 
                disabilities and, pursuant to such request the 
                Secretary determines that a project is no 
                longer needed for use as supportive housing for 
                persons with disabilities, the Secretary may 
                approve the request and authorize the owner to 
                convert the project to such use.
          (2) Contract terms.--The initial term of a contract 
        entered into under subsection (d)(2) shall be 240 
        months, except that, in the case of the sponsor of a 
        project assisted with any low-income housing tax credit 
        pursuant to section 42 of the Internal Revenue Code of 
        1986 or with any tax-exempt housing bonds, the contract 
        shall have an initial term of not less than 360 months 
        and shall provide funding for a term of 60 months. The 
        Secretary shall, to the extent approved in 
        appropriation Acts, upon expiration of a contract (or 
        any renewed contract), renew such contract for a term 
        of not less than 60 months. In order to facilitate the 
        orderly extension of expiring contracts, the Secretary 
        is authorized to make commitments to extend expiring 
        contracts during the year prior to the date of 
        expiration.
          (3) Limitation on use of funds.--No assistance 
        received under this section (or any State or local 
        government funds used to supplement such assistance) 
        may be used to replace other State or local funds 
        previously used, or designated for use, to assist 
        persons with disabilities.
          (4) Multifamily projects.--
                  (A) Limitation.--Except as provided in 
                subparagraph (B), of the total number of 
                dwelling units in any multifamily housing 
                project (including any condominium or 
                cooperative housing project) containing any 
                unit for which assistance is provided from a 
                capital grant under subsection (d)(1) made 
                after the date of the enactment of the Frank 
                Melville Supportive Housing Investment Act of 
                2010, the aggregate number that are used for 
                persons with disabilities, including supportive 
                housing for persons with disabilities, or to 
                which any occupancy preference for persons with 
                disabilities applies, may not exceed 25 percent 
                of such total.
                  (B) Exception.--Subparagraph (A) shall not 
                apply in the case of any project that is a 
                group home or independent living facility.
  (f) Applications.--Funds made available under subsection 
(b)(2) shall be allocated by the Secretary among approvable 
applications submitted by private nonprofit organizations. 
Applications for assistance under subsection (b)(2) shall be 
submitted in such form and in accordance with such procedures 
as the Secretary shall establish. Such applications shall 
contain--
          (1) a description of the proposed housing;
          (2) a description of the assistance the applicant 
        seeks under this section;
          (3) a supportive service plan that contains--
                  (A) a description of the needs of persons 
                with disabilities that the housing is expected 
                to serve;
                  (B) assurances that persons with disabilities 
                occupying such housing will be offered 
                supportive services based on their individual 
                needs;
                  (C) evidence of the applicant's experience 
                in--
                          (i) providing such supportive 
                        services; or
                          (ii) creating and managing structured 
                        partnerships with service providers for 
                        the delivery of appropriate community-
                        based services;
                  (D) a description of the manner in which such 
                services will be provided to tenants; and
                  (E) identification of the extent of other 
                Federal, and State and local funds available to 
                assist in the provision of such services;
          (4) a certification from the appropriate State or 
        local agency (as determined by the Secretary) that the 
        provision of the services identified in paragraph (3) 
        are well designed to serve the housing and community-
        based services needs of persons with disabilities;
          (5) reasonable assurances that the applicant will own 
        or have control of an acceptable site for the proposed 
        housing not later than 6 months after notification of 
        an award for assistance;
          (6) a certification from the public official 
        responsible for submitting a housing strategy for the 
        jurisdiction to be served in accordance with section 
        105 of the Cranston-Gonzalez National Affordable 
        Housing Act that the proposed housing is consistent 
        with the approved housing strategy; and
          (7) such other information or certifications that the 
        Secretary determines to be necessary or appropriate to 
        achieve the purposes of this section.
  (g) Selection Criteria and Processing.--(1) Selection 
criteria.--The Secretary shall establish selection criteria for 
assistance under this section, which shall include--
          (A) the ability of the applicant to develop and 
        operate the proposed housing;
          (B) the need for housing for persons with 
        disabilities in the area to be served;
          (C) the extent to which the proposed design of the 
        housing will meet the special needs of persons with 
        disabilities;
          (D) the extent to which the applicant has 
        demonstrated that appropriate supportive services will 
        be made available on a consistent, long-term basis;
                  (E) the extent to which the location and 
                design of the proposed project will facilitate 
                the provision of community-based supportive 
                services and address other basic needs of 
                persons with disabilities, including access to 
                appropriate and accessible transportation, 
                access to community services agencies, public 
                facilities, and shopping;
                  (F) the extent to which the per-unit cost of 
                units to be assisted under this section will be 
                supplemented with resources from other public 
                and private sources;
          (G) the extent to which the applicant has control of 
        the site of the proposed housing; and
          (H) such other factors as the Secretary determines to 
        be appropriate to ensure that funds made available 
        under this section are used effectively.
  (2) Delegated Processing.--
          (A) In issuing a capital advance under subsection 
        (d)(1) for any multifamily project (but not including 
        any project that is a group home or independent living 
        facility) for which financing for the purposes 
        described in the last sentence of subsection (b) is 
        provided by a combination of the capital advance and 
        sources other than this section, within 30 days of 
        award of the capital advance, the Secretary shall 
        delegate review and processing of such projects to a 
        State or local housing agency that--
                  (i) is in geographic proximity to the 
                property;
                  (ii) has demonstrated experience in and 
                capacity for underwriting multifamily housing 
                loans that provide housing and supportive 
                services;
                  (iii) may or may not be providing low-income 
                housing tax credits in combination with the 
                capital advance under this section; and
                  (iv) agrees to issue a firm commitment within 
                12 months of delegation.
          (B) The Secretary shall retain the authority to 
        process capital advances in cases in which no State or 
        local housing agency is sufficiently qualified to 
        provide delegated processing pursuant to this paragraph 
        or no such agency has entered into an agreement with 
        the Secretary to serve as a delegated processing 
        agency.
          (C) The Secretary shall--
                  (i) develop criteria and a timeline to 
                periodically assess the performance of State 
                and local housing agencies in carrying out the 
                duties delegated to such agencies pursuant to 
                subparagraph (A); and
                  (ii) retain the authority to review and 
                process projects financed by a capital advance 
                in the event that, after a review and 
                assessment, a State or local housing agency is 
                determined to have failed to satisfy the 
                criteria established pursuant to clause (i).
          (D) An agency to which review and processing is 
        delegated pursuant to subparagraph (A) may assess a 
        reasonable fee which shall be included in the capital 
        advance amounts and may recommend project rental 
        assistance amounts in excess of those initially awarded 
        by the Secretary. The Secretary shall develop a 
        schedule for reasonable fees under this subparagraph to 
        be paid to delegated processing agencies, which shall 
        take into consideration any other fees to be paid to 
        the agency for other funding provided to the project by 
        the agency, including bonds, tax credits, and other gap 
        funding.
          (E) Under such delegated system, the Secretary shall 
        retain the authority to approve rents and development 
        costs and to execute a capital advance within 60 days 
        of receipt of the commitment from the State or local 
        agency. The Secretary shall provide to such agency and 
        the project sponsor, in writing, the reasons for any 
        reduction in capital advance amounts or project rental 
        assistance and such reductions shall be subject to 
        appeal.
  (h) Development Cost Limitations.--
          (1) Group homes.--The Secretary shall periodically 
        establish development cost limitations by market area 
        for group homes of supportive housing for persons with 
        disabilities by publishing a notice of the cost 
        limitations in the Federal Register. The cost 
        limitations shall reflect--
                  (A) the cost of acquisition, construction, 
                reconstruction, or rehabilitation of supportive 
                housing for persons with disabilities that (i) 
                meets applicable State and local housing and 
                building codes; and (ii) conforms with the 
                design characteristics of the neighborhood in 
                which it is to be located;
                  (B) the cost of movables necessary to the 
                basic operation of the housing, as determined 
                by the Secretary;
                  (C) the cost of special design features 
                necessary to make the housing accessible to 
                persons with disabilities;
                  (D) the cost of special design features 
                necessary to make individual dwelling units 
                meet the special needs of persons with 
                disabilities;
                  (E) if the housing is newly constructed, the 
                cost of meeting the energy efficiency standards 
                promulgated by the Secretary in accordance with 
                section 109 of the Cranston-Gonzalez National 
                Affordable Housing Act; and
                  (F) the cost of land, including necessary 
                site improvement.
        In establishing development cost limitations for a 
        given market area, the Secretary shall use data that 
        reflect currently prevailing costs of acquisition, 
        construction, reconstruction, or rehabilitation, and 
        land acquisition in the area. Neither this section nor 
        any other provision of law may be construed as 
        prohibiting or preventing the location and operation, 
        in a project assisted under this section, of commercial 
        facilities for the benefit of residents of the project 
        and the community in which the project is located, 
        except that assistance made available under this 
        section may not be used to subsidize any such 
        commercial facility.
          (2) RTC properties.--In the case of existing housing 
        and related facilities from the Resolution Trust 
        Corporation under section 21A(c) of the Federal Home 
        Loan Bank Act, the cost limitations shall include--
                  (A) the cost of acquiring such housing,
                  (B) the cost of rehabilitation, alteration, 
                conversion, or improvement, including the 
                moderate rehabilitation thereof, and
                  (C) the cost of the land on which the housing 
                and related facilities are located.
          (3) Annual adjustments.--The Secretary shall adjust 
        the cost limitation established pursuant to paragraph 
        (1) not less than once annually to reflect changes in 
        the general level of acquisition, construction, 
        reconstruction, or rehabilitation costs.
          (4) Incentives for savings.--
                  (A) Special project account.--The Secretary 
                shall use the development cost limitations 
                established under paragraph (1) to calculate 
                the amount of financing to be made available to 
                individual owners. Owners which incur actual 
                development costs that are less than the amount 
                of financing shall be entitled to retain 50 
                percent of the savings in a special project 
                account. Such percentage shall be increased to 
                75 percent for owners which add energy 
                efficiency features which (i) exceed the energy 
                efficiency standards promulgated by the 
                Secretary in accordance with section 109 of the 
                Cranston-Gonzalez National Affordable Housing 
                Act; (ii) substantially reduce the life-cycle 
                cost of the housing; (iii) reduce gross rent 
                requirements; and (iv) enhance tenant comfort 
                and convenience.
                  (B) Uses.--The special project account 
                established under subparagraph (A) may be used 
                (i) to supplement services provided to 
                residents of the housing or funds set-aside for 
                replacement reserves, or (ii) for such other 
                purposes as determined by the Secretary.
          (5) Funds from other sources.--An owner shall be 
        permitted voluntarily to provide funds from sources 
        other than this section for amenities and other 
        features of appropriate design and construction 
        suitable for supportive housing for persons with 
        disabilities if the cost of such amenities is (A) not 
        financed with the advance, and (B) is not taken into 
        account in determining the amount of Federal assistance 
        or of the rent contribution of tenants. Notwithstanding 
        any other provision of law, assistance amounts provided 
        under this section may be treated as amounts not 
        derived from a Federal grant.
          (6) Applicability of home program cost limitations.--
                  (A) In general.--The provisions of section 
                212(e) of the Cranston-Gonzalez National 
                Affordable Housing Act (42 U.S.C. 12742(e)) and 
                the cost limits established by the Secretary 
                pursuant to such section with respect to the 
                amount of funds under subtitle A of title II of 
                such Act that may be invested on a per unit 
                basis, shall apply to supportive housing 
                assisted with a capital advance under 
                subsection (d)(1) and the amount of funds under 
                such subsection that may be invested on a per 
                unit basis.
                  (B) Waivers.--The Secretary may provide for 
                waiver of the cost limits applicable pursuant 
                to subparagraph (A)--
                          (i) in the cases in which the cost 
                        limits established pursuant to section 
                        212(e) of the Cranston-Gonzalez 
                        National Affordable Housing Act may be 
                        waived; and
                          (ii) to provide for--
                                  (I) the cost of special 
                                design features to make the 
                                housing accessible to persons 
                                with disabilities;
                                  (II) the cost of special 
                                design features necessary to 
                                make individual dwelling units 
                                meet the special needs of 
                                persons with disabilities; and
                                  (III) the cost of providing 
                                the housing in a location that 
                                is accessible to public 
                                transportation and community 
                                organizations that provide 
                                supportive services to persons 
                                with disabilities.
  (i) Admission and Occupancy.--
          (1) Tenant selection.--
                  (A) Procedures.--An owner shall adopt written 
                tenant selection procedures that are 
                satisfactory to the Secretary as (i) consistent 
                with the purpose of improving housing 
                opportunities for very low-income persons with 
                disabilities; and (ii) reasonably related to 
                program eligibility and an applicant's ability 
                to perform the obligations of the lease. Owners 
                shall promptly notify in writing any rejected 
                applicant of the grounds for any rejection.
                  (B) Requirement for occupancy.--Occupancy in 
                dwelling units provided assistance under this 
                section shall be available only to persons with 
                disabilities and households that include at 
                least one person with a disability.
                  (C) Availability.--Except only as provided in 
                subparagraph (D), occupancy in dwelling units 
                in housing provided with assistance under this 
                section shall be available to all persons with 
                disabilities eligible for such occupancy 
                without regard to the particular disability 
                involved.
                  (D) Limitation on occupancy.--Notwithstanding 
                any other provision of law, the owner of 
                housing developed under this section may, with 
                the approval of the Secretary, limit occupancy 
                within the housing to persons with disabilities 
                who can benefit from the supportive services 
                offered in connection with the housing.
          (2) Tenant protections.--
                  (A) Lease.--The lease between a tenant and an 
                owner of housing assisted under this section 
                shall be for not less than one year, and shall 
                contain such terms and conditions as the 
                Secretary shall determine to be appropriate.
                  (B) Termination of tenancy.--An owner may not 
                terminate the tenancy or refuse to renew the 
                lease of a tenant of a rental dwelling unit 
                assisted under this section except--
                          (i) 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
                          (ii) by providing the tenant, not 
                        less than 30 days before such 
                        termination or refusal to renew, with 
                        written notice specifying the grounds 
                        for such action.
                  (C) Voluntary participation in services.--A 
                supportive service plan for housing assisted 
                under this section shall permit each resident 
                to take responsibility for choosing and 
                acquiring their own services, to receive any 
                supportive services made available directly or 
                indirectly by the owner of such housing, or to 
                not receive any supportive services.
  (j) Miscellaneous Provisions.--
          (1) Technical assistance.--The Secretary shall make 
        available appropriate technical assistance to assure 
        that applicants having limited resources, particularly 
        minority applicants, are able to participate more fully 
        in the program carried out under this section.
          (2) Civil rights compliance.--Each owner shall 
        certify, to the satisfaction of the Secretary, that 
        assistance made available under this section will be 
        conducted and administered in conformity with title VI 
        of the Civil Rights Act of 1964, the Fair Housing Act 
        and other Federal, State, and local laws prohibiting 
        discrimination and promoting equal opportunity; and
          (3) Site control.--An applicant may obtain ownership 
        or control of a suitable site different from the site 
        specified in the initial application. If an applicant 
        fails to obtain ownership or control of the site within 
        1 year after notification of an award for assistance, 
        the assistance shall be recaptured and reallocated.
          (4) Notice of appeal.--The Secretary shall notify an 
        owner not less than 30 days prior to canceling any 
        reservation of assistance provided under this section. 
        During the 30-day period following the receipt of a 
        notice under the preceding sentence, an owner may 
        appeal the proposed cancellation. Such appeal, 
        including review by the Secretary, shall be completed 
        not later than 45 days after the appeal is filed.
          (5) Labor standards.--
                  (A) In general.--The Secretary shall take 
                such action as may be necessary to insure that 
                all laborers and mechanics employed by 
                contractors and subcontractors in the 
                construction of housing with 12 or more units 
                assisted under this section shall be paid wages 
                at rates not less than those prevailing in the 
                locality involved for the corresponding classes 
                of laborers and mechanics employed on 
                construction of a similar character, as 
                determined by the Secretary of Labor in 
                accordance with the Act of March 3, 1931 
                (commonly known as the Davis-Bacon Act).
                  (B) Exemption.--Subparagraph (A) shall not 
                apply to any individual who--
                          (i) performs services for which the 
                        individual volunteered;
                          (ii)(I) does not receive compensation 
                        for such services; or
                          (II) is paid expenses, reasonable 
                        benefits, or a nominal fee for such 
                        services; and
                          (iii) is not otherwise employed at 
                        any time in the construction work.
          (6) Use of project reserves.--Amounts for project 
        reserves for a project assisted under this section may 
        be used for costs, subject to reasonable limitations as 
        the Secretary determines appropriate, for reducing the 
        number of dwelling units in the project. Such use shall 
        be subject to the approval of the Secretary to ensure 
        that the use is designed to retrofit units that are 
        currently obsolete or unmarketable.
          (8) Qualifying smoke alarms.--
                  (A) In general.--Each dwelling unit assisted 
                under this section shall contain qualifying 
                smoke alarms that are installed in accordance 
                with applicable codes and standards published 
                by the International Code Council or the 
                National Fire Protection Association and the 
                requirements of the National Fire Protection 
                Association Standard 72, or any successor 
                standard, in each level and in or near each 
                sleeping area in such dwelling unit, including 
                in basements but excepting crawl spaces and 
                unfinished attics, and in each common area in a 
                project containing such a dwelling unit.
                  (B) Definitions.--For purposes of this 
                paragraph, the following definitions shall 
                apply:
                          (i) Smoke alarm defined.--The term 
                        ``smoke alarm'' has the meaning given 
                        the term ``smoke detector'' in section 
                        29(d) of the Federal Fire Prevention 
                        and Control Act of 1974 (15 U.S.C. 
                        2225(d)).
                          (ii) Qualifying smoke alarm 
                        defined.--The term ``qualifying smoke 
                        alarm'' means a smoke alarm that--
                                  (I) in the case of a dwelling 
                                unit built before the date of 
                                enactment of this paragraph and 
                                not substantially rehabilitated 
                                after the date of enactment of 
                                this paragraph is--
                                          (aa) hardwired; or
                                          (bb) uses 10-year non 
                                        rechargeable, 
                                        nonreplaceable primary 
                                        batteries and--
                                                  (AA) is 
                                                sealed;
                                                  (BB) is 
                                                tamper 
                                                resistant;
                                                  (CC) contains 
                                                silencing 
                                                means; and
                                                  (DD) provides 
                                                notification 
                                                for persons 
                                                with hearing 
                                                loss as 
                                                required by the 
                                                National Fire 
                                                Protection 
                                                Association 
                                                Standard 72, or 
                                                any successor 
                                                standard; or
                                  (II) in the case of a 
                                dwelling unit built or 
                                substantially rehabilitated 
                                after the date of enactment of 
                                this paragraph, is hardwired.
  (k) Definitions.--As used in this section--
          (1) The term ``group home'' means a single family 
        residential structure designed or adapted for occupancy 
        by not more than 8 persons with disabilities, which 
        provides a separate bedroom for each tenant of the 
        residence. The Secretary may waive the project size 
        limitation contained in the previous sentence if the 
        applicant demonstrates that local market conditions 
        dictate the development of a larger project. Not later 
        than the date of the exercise of any waiver permitted 
        under the previous sentence, the Secretary shall notify 
        the Committee on Banking, Housing, and Urban Affairs of 
        the Senate and the Committee on Financial Services of 
        the House of Representatives of the waiver or the 
        intention to exercise the waiver, together with a 
        detailed explanation of the reason for the waiver. Not 
        more than 1 home may be located on any one site and no 
        such home may be located on a site contiguous to 
        another site containing such a home.
          (2) The term ``person with disabilities'' means a 
        household composed of one or more persons who is 18 
        years of age or older and less than 62 years of age, 
        and who has a disability. A person shall be considered 
        to have a disability if such person is determined, 
        pursuant to regulations issued by the Secretary to have 
        a physical, mental, or emotional impairment which (A) 
        is expected to be of long-continued and indefinite 
        duration, (B) substantially impedes his or her ability 
        to live independently, and (C) is of such a nature that 
        such ability could be improved by more suitable housing 
        conditions. A person shall also be considered to have a 
        disability if such person has a developmental 
        disability as defined in section 102 of the 
        Developmental Disabilities Assistance and Bill of 
        Rights Act of 2000. The Secretary shall prescribe such 
        regulations as may be necessary to prevent abuses in 
        determining, under the definitions contained in this 
        paragraph, the eligibility of families and persons for 
        admission to and occupancy of housing assisted under 
        this section. Notwithstanding the preceding provisions 
        of this paragraph, the term ``person with 
        disabilities'' includes two or more persons with 
        disabilities living together, one or more such persons 
        living with another person who is determined (under 
        regulations prescribed by the Secretary) to be 
        important to their care or well-being, and the 
        surviving member or members of any household described 
        in the first sentence of this paragraph who were 
        living, in a unit assisted under this section, with the 
        deceased member of the household at the time of his or 
        her death.
          (3) The term ``supportive housing for persons with 
        disabilities'' means dwelling units that--
                  (A) are designed to meet the permanent 
                housing needs of very low-income persons with 
                disabilities; and
                  (B) are located in housing that make 
                available supportive services that address the 
                individual health, mental health, or other 
                needs of such persons.
          (4) The term ``independent living facility'' means a 
        project designed for occupancy by not more than 24 
        persons with disabilities (or such higher number of 
        persons as permitted under criteria that the Secretary 
        shall prescribe, subject to the limitation under 
        subsection (h)(6)) in separate dwelling units where 
        each dwelling unit includes a kitchen and a bath. Not 
        later than the date that the Secretary prescribes a 
        limit exceeding the 24 person limit in the previous 
        sentence, the Secretary shall notify the Committee on 
        Banking, Housing, and Urban Affairs of the Senate and 
        the Committee on Financial Services of the House of 
        Representatives of the limit or the intention to 
        prescribe a limit in excess of 24 persons, together 
        with a detailed explanation of the reason for the new 
        limit.
          (5) The term ``owner'' means a private nonprofit 
        organization that receives assistance under this 
        section to develop and operate supportive housing for 
        persons with disabilities.
          (6) The term ``private nonprofit organization'' means 
        any institution or foundation--
                  (A) that has received, or has temporary 
                clearance to receive, tax-exempt status under 
                section 501(c)(3) of the Internal Revenue Code 
                of 1986;
                  (B) no part of the net earnings of which 
                inures to the benefit of any member, founder, 
                contributor, or individual;
                  (C) which has a governing board (i) the 
                membership of which is selected in a manner to 
                assure that there is significant representation 
                of the views of persons with disabilities, and 
                (ii) which is responsible for the operation of 
                the housing assisted under this section; and
                  (D) which is approved by the Secretary as to 
                financial responsibility.
        Such term includes a for-profit limited partnership the 
        sole general partner of which is an organization 
        meeting the requirements under subparagraphs (A), (B), 
        (C), and (D) or a corporation controlled by an 
        organization meeting the requirements under 
        subparagraphs (A), (B), (C), and (D).
          (7) The term ``State'' includes the several States, 
        the District of Columbia, the Commonwealth of Puerto 
        Rico, and the possessions of the United States.
          (8) The term ``Secretary'' means the Secretary of 
        Housing and Urban Development.
          (9) The term ``very low-income'' has the same meaning 
        as given the term ``very low-income families'' under 
        section 3(b)(2) of the United States Housing Act of 
        1937.
  (l) Allocation of Funds.--
          (1) Minimum allocation for multifamily projects.--The 
        Secretary shall establish a minimum percentage of the 
        amount made available for each fiscal year for capital 
        advances under subsection (d)(1) that shall be used for 
        multifamily projects subject to subsection (e)(4).
          (2) Capital advances.--Of any amounts made available 
        for assistance under subsection (b), such sums as may 
        be necessary shall be available for funding capital 
        advances in accordance with subsection (d)(1). Such 
        amounts, the repayments from such advances, and the 
        proceeds from notes or obligations issued under this 
        section prior to the enactment of this Act shall 
        constitute a revolving fund to be used by the Secretary 
        in carrying out this section.
          (3) Project rental assistance.--Of any amounts made 
        available for assistance under subsection (b), such 
        sums as may be necessary shall be available for funding 
        project rental assistance in accordance with subsection 
        (d)(2).
  (m) Authorization of Appropriations.--There are authorized to 
be appropriated for providing assistance pursuant to this 
section $300,000,000 for each of fiscal years 2011 through 
2015.
  (n) Effective Date and Applicability.--
          (1) In general.--The amendments made by this section 
        shall take effect on October 1, 1991, with respect to 
        projects approved on or after such date. The Secretary 
        shall issue regulations for such purpose after notice 
        and public comment.
          (2) Earlier applicability.--The Secretary shall, upon 
        the request of an owner, apply the provisions of this 
        section to any housing for which a loan reservation was 
        made under section 202 of the Housing Act of 1959 
        before the date of enactment of this Act but for which 
        no loan has been executed and recorded. In the absence 
        of such a request, any housing identified under the 
        preceding sentence shall continue to be subject to the 
        provisions of section 202 of the Housing Act of 1959 as 
        they were in effect when such assistance was made or 
        reserved.
          (3) Coordination.--When responding to an owner's 
        request under paragraph (1), the Secretary shall, 
        notwithstanding any other provision of law, apply such 
        portion of amounts obligated at the time of loan 
        reservation, including amounts reserved with respect to 
        such housing under section 8 of the United States 
        Housing Act of 1937, as are required for the owner's 
        housing under the provisions of this section and shall 
        make any remaining portion available for other housing 
        under this section.

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Subtitle D--Housing Opportunities for Persons With AIDS

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SEC. 856. RESPONSIBILITIES OF GRANTEES.

  (a) Prohibition of Substitution of Funds.--Amounts received 
from grants under this subtitle may not be used to replace 
other amounts made available or designated by State or local 
governments for use for the purposes under this subtitle.
  (b) Capability.--The recipient shall have, in the 
determination of the grantee or the Secretary, the capacity and 
capability to effectively administer a grant under this 
subtitle.
  (c) Cooperation.--The recipient shall agree to cooperate and 
coordinate in providing assistance under this subtitle with the 
agencies of the relevant State and local governments 
responsible for services in the area served by the applicant 
for eligible persons and other public and private organizations 
and agencies providing services for such eligible persons.
  (d) Prohibition of Fees.--The recipient shall agree that no 
fee will be charged to any eligible person for any housing or 
services provided with amounts from a grant under this 
subtitle.
  (e) Confidentiality.--The recipient shall agree to ensure the 
confidentiality of the name of any individual assisted with 
amounts from a grant under this subtitle and any other 
information regarding individuals receiving such assistance.
  (f) Financial Records.--The recipient shall agree to maintain 
and provide the grantee or the Secretary with financial records 
sufficient, in the determination of the Secretary, to ensure 
proper accounting and disbursing of amounts received from a 
grant under this subtitle.
  (g) Administrative Expenses.--
          (1) Grantees.--Notwithstanding any other provision of 
        this subtitle, each grantee may use not more than 3 
        percent of the grant amount for administrative costs 
        relating to administering grant amounts and allocating 
        such amounts to project sponsors.
          (2) Project sponsors.--Notwithstanding any other 
        provision of this subtitle, each project sponsor 
        receiving amounts from grants made under this title may 
        use not more than 7 percent of the amounts received for 
        administrative costs relating to carrying out eligible 
        activities under section 855, including the costs of 
        staff necessary to carry out eligible activities.
  (h) Environmental Review.--For purposes of environmental 
review, a grant under this subtitle shall be treated as 
assistance for a special project that is subject to section 
305(c) of the Multifamily Housing Property Disposition Reform 
Act of 1994, and shall be subject to the regulations issued by 
the Secretary to implement such section.
  (j) Qualifying Smoke Alarms.--
          (1) In general.--Each dwelling unit assisted under 
        this subtitle shall contain qualifying smoke alarms 
        that are installed in accordance with applicable codes 
        and standards published by the International Code 
        Council or the National Fire Protection Association and 
        the requirements of the National Fire Protection 
        Association Standard 72, or any successor standard, in 
        each level and in or near each sleeping area in such 
        dwelling unit, including in basements but excepting 
        crawl spaces and unfinished attics, and in each common 
        area in a project containing such a dwelling unit.
          (2) Definitions.--For purposes of this subsection, 
        the following definitions shall apply:
                  (A) Smoke alarm defined.--The term ``smoke 
                alarm'' has the meaning given the term ``smoke 
                detector'' in section 29(d) of the Federal Fire 
                Prevention and Control Act of 1974 (15 U.S.C. 
                2225(d)).
                  (B) Qualifying smoke alarm defined.--The term 
                ``qualifying smoke alarm'' means a smoke alarm 
                that--
                          (i) in the case of a dwelling unit 
                        built before the date of enactment of 
                        this subsection and not substantially 
                        rehabilitated after the date of 
                        enactment of this subsection is--
                                  (I) hardwired; or
                                  (II) uses 10-year non 
                                rechargeable, nonreplaceable 
                                primary batteries and--
                                          (aa) is sealed;
                                          (bb) is tamper 
                                        resistant;
                                          (cc) contains 
                                        silencing means; and
                                          (dd) provides 
                                        notification for 
                                        persons with hearing 
                                        loss as required by the 
                                        National Fire 
                                        Protection Association 
                                        Standard 72, or any 
                                        successor standard; or
                          (ii) in the case of a dwelling unit 
                        built or substantially rehabilitated 
                        after the date of enactment of this 
                        subsection, is hardwired.

           *       *       *       *       *       *       *

                              ----------                              


                          HOUSING ACT OF 1949



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

           *       *       *       *       *       *       *


insurance of loans for the provision of housing and related facilities 
                        for domestic farm labor

  Sec. 514. (a) The Secretary is authorized to insure and make 
commitments to insure loans made by lenders other than the 
United States to the owner of any farm or any association of 
farmers for the purpose of providing housing and related 
facilities for domestic farm labor, or to any Indian tribe for 
such purpose, or to any State (or political subdivision 
thereof), or any broad-based public or private nonprofit 
organization, or any limited partnership in which the general 
partner is a nonprofit entity, or any nonprofit organization of 
farm workers incorporated within the State for the purpose of 
providing housing and related facilities for domestic farm 
labor any place within the State where a need exists. All such 
loans shall be made in accordance with terms and conditions 
substantially identical with those specified in section 502, 
except that--
          (1) no such loan shall be insured in an amount in 
        excess of the value of the farm involved less any prior 
        liens in the case of a loan to an individual owner of a 
        farm, or the total estimated value of the structures 
        and facilities with respect to which the loan is made 
        in the case of any other loan;
          (2) no such loan shall be insured if it bears 
        interest at a rate in excess of 1 per centum per annum;
          (3) out of interest payments by the borrower the 
        Secretary shall retain a charge in an amount not less 
        than one-half of 1 per centum per annum of the unpaid 
        principal balance of the loan;
          (4) the insurance contracts and agreements with 
        respect to any loan may contain provisions for 
        servicing the loan by the Secretary or by the lender, 
        and for the purchase by the Secretary of the loan if it 
        is not in default, on such terms and conditions as the 
        Secretary may prescribe; and
          (5) the Secretary may take mortgages creating a lien 
        running to the United States for the benefit of the 
        insurance fund referred to in subsection (b) 
        notwithstanding the fact that the note may be held by 
        the lender or his assignee.
  (b) The Secretary shall utilize the insurance fund created by 
section 11 of the Bankhead Jones Farm Tenant Act (7 U.S.C. 
1005a) and the provisions of section 13 (a), (b), and (c) of 
such Act (7 U.S.C. 1005c (a), (b), and (c)) to discharge 
obligations under insurance contracts made pursuant to this 
section, and
          (1) the Secretary may utilize the insurance fund to 
        pay taxes, insurance, prior liens, and other expenses 
        to protect the security for loans which have been 
        insured hereunder and to acquire such security property 
        at foreclosure sales or otherwise;
          (2) the notes and security therefor acquired by the 
        Secretary under insurance contracts made pursuant to 
        this section shall become a part of the insurance fund. 
        Loans insured under this section may be held in the 
        fund and collected in accordance with their terms or 
        may be sold and reinsured. All proceeds from such 
        collections, including the liquidation of security and 
        the proceeds of sales, shall become a part of the 
        insurance fund; and
          (3) of the charges retained by the Secretary out of 
        interest payments by the borrower, amounts not less 
        than one-half of 1 per centum per annum of the unpaid 
        principal balance of the loan shall be deposited in and 
        become a part of the insurance fund. The remainder of 
        such charges shall be deposited in the Treasury of the 
        United States and shall be available for administrative 
        expenses of the Farmers Home Administration, to be 
        transferred annually to and become merged with any 
        appropriation for such expenses.
  (c) Any contract of insurance executed by the Secretary under 
this section shall be an obligation of the United States and 
incontestable except for fraud or misrepresentation of which 
the holder of the contract has actual knowledge.
  (e) Amounts made available pursuant to section 513 of this 
Act shall be available for administrative expenses incurred 
under this section.
  (f) As used in this section--
          (1) the term ``housing'' means (A) new structures 
        (including household furnishings) suitable for dwelling 
        use by domestic farm labor, and (B) existing structures 
        (including household furnishings) which can be made 
        suitable for dwelling use by domestic farm labor by 
        rehabilitation, alteration, conversion, or 
        improvements;
          (2) the term ``related facilities'' means (A) new 
        stuctures (including household furnishings) suitable 
        for use as dining halls, community rooms or buildings, 
        or infirmaries, or for other essential services 
        facilities, (B) existing structures (including 
        household furnishings) which can be made suitable for 
        the above uses by rehabilitation, alteration, 
        conversion, or improvement and (C) necessary for an 
        adequate site; and
          (3) the term ``domestic farm labor'' means any person 
        (and the family of such person) who receives a 
        substantial portion of his or her income from primary 
        production of agricultural or aquacultural commodities, 
        the handling of agricultural or aquacultural 
        commodities in the unprocessed stage, or the processing 
        of agricultural or aquacultural commodities, without 
        respect to the source of employment, except that--
                  (A) such person shall be a citizen of the 
                United States, or a person legally admitted for 
                permanent residence, or a person legally 
                admitted to the United States and authorized to 
                work in agriculture;
                  (B) such term includes any person (and the 
                family of such person) who is retired or 
                disabled, but who was domestic farm labor at 
                the time of retirement or becoming disabled; 
                and
                  (C) in applying this paragraph with respect 
                to vacant units in farm labor housing, the 
                Secretary shall make units available for 
                occupancy in the following order of priority:
                          (i) to active farm laborers (and 
                        their families);
                          (ii) to retired or disabled farm 
                        laborers (and their families) who were 
                        active in the local farm labor market 
                        at the time of retiring or becoming 
                        disabled; and
                          (iii) to other retired or disabled 
                        farm laborers (and their families).
  (g) The Secretary may waive the interest rate limitation 
contained in subsection (a)(2) and the requirement of section 
501(c)(3) in any case in which the Secretary determines that 
qualified public or private nonprofit sponsors are not 
currently available and are not likely to become available 
within a reasonable period of time and such waiver is necessary 
to permit farmers to provide housing and related facilities for 
migrant domestic farm laborers, except that the benefits 
resulting from such waiver shall accrue to the tenants, and the 
interest rate on a loan insured under this section and for 
which the Secretary permits such waiver shall be no less than 
one-eighth of 1 per centum above the average interest rate on 
notes or other obligations which are issued under section 511 
and have maturities comparable to such a loan.
  (h) In making available assistance in any area under this 
section or section 516, the Secretary shall--
          (1) in determining the need for the assistance, take 
        into consideration the housing needs only of domestic 
        farm labor, including migrant farmworkers, in the area; 
        and
          (2) in determining whether to provide such 
        assistance, make such determination without regard to 
        the extent or nature of other housing needs in the 
        area.
  (i) Housing and related facilities constructed with loans 
under this section may be used for tenants eligible for 
occupancy under section 515 if the Secretary determines that--
          (1) there is no longer a need in the area for farm 
        labor housing; or
          (2) the need for such housing in the area has 
        diminished to the extent that the purpose of the loan, 
        providing housing for domestic farm labor, can no 
        longer be met.
  (j) Housing and related facilities constructed with loans 
under this section shall contain installed carbon monoxide 
alarms or detectors that meet or exceed--
          (1) the standards described in chapters 9 and 11 of 
        the 2018 publication of the International Fire Code, as 
        published by the International Code Council; or
          (2) any other standards as may be adopted by the 
        Secretary, in collaboration with the Secretary of 
        Housing and Urban Development, including any relevant 
        updates to the International Fire Code, through a 
        notice published in the Federal Register.
  (k) Qualifying Smoke Alarms.--
          (1) In general.--Housing and related facilities 
        constructed with loans under this section shall contain 
        qualifying smoke alarms that are installed in 
        accordance with applicable codes and standards 
        published by the International Code Council or the 
        National Fire Protection Association and the 
        requirements of the National Fire Protection 
        Association Standard 72, or any successor standard, in 
        each level and in or near each sleeping area in such 
        dwelling unit, including in basements but excepting 
        crawl spaces and unfinished attics, and in each common 
        area in a project containing such a dwelling unit.
          (2) Definitions.--For purposes of this subsection, 
        the following definitions shall apply:
                  (A) Smoke alarm defined.--The term ``smoke 
                alarm'' has the meaning given the term ``smoke 
                detector'' in section 29(d) of the Federal Fire 
                Prevention and Control Act of 1974 (15 U.S.C. 
                2225(d)).
                  (B) Qualifying smoke alarm defined.--The term 
                ``qualifying smoke alarm'' means a smoke alarm 
                that--
                          (i) in the case of a dwelling unit 
                        built before the date of enactment of 
                        this subsection and not substantially 
                        rehabilitated after the date enactment 
                        of this subsection is--
                                  (I) hardwired; or
                                  (II) uses 10-year non 
                                rechargeable, nonreplaceable 
                                primary batteries and--
                                          (aa) is sealed;
                                          (bb) is tamper 
                                        resistant;
                                          (cc) contains 
                                        silencing means; and
                                          (dd) provides 
                                        notification for 
                                        persons with hearing 
                                        loss as required by the 
                                        National Fire 
                                        Protection Association 
                                        Standard 72, or any 
                                        successor standard; or
                          (ii) in the case of a dwelling unit 
                        built or substantially rehabilitated 
                        after the date of enactment of this 
                        subsection, is hardwired.

direct and insured loans to provide housing and related facilities for 
              elderly persons and families in rural areas

  Sec. 515. (a) The Secretary is authorized to make loans to 
private nonprofit corporations and consumer cooperatives and 
Indian tribes to provide rental or cooperative housing and 
related facilities for elderly or handicapped persons or 
families of low or moderate income or other persons and 
families of low income in rural areas, in accordance with terms 
and conditions substantially identical with those specified in 
section 502; except that--
          (1) no such loan shall exceed the development cost or 
        the value of the security, whichever is less;
          (2) such a loan may be made for a period of up to 30 
        years from the making of the loan; and
          (3) such a loan, when made to a consumer cooperative 
        for cooperative housing purposes, may, notwithstanding 
        any other provision of law, be made upon the condition 
        that any person who is admitted as an eligible member 
        and tenant of the cooperative may not subsequently be 
        deprived of his membership or tenancy by reason of his 
        no longer meeting the income eligibility requirements 
        established by the Secretary.
There is authorized to be appropriated not to exceed 
$50,000,000 which shall constitute a revolving fund to be used 
by the Secretary in carrying out this subsection.
  (b) The Secretary is authorized to insure and make 
commitments to insure loans made to any individual, 
corporation, association, trust, Indian tribe, or partnership 
to provide rental or cooperative housing and related facilities 
for elderly or handicapped persons or families or other persons 
and families of moderate income in rural areas, in accordance 
with terms and conditions substantially identical with those 
specified in section 502; except that--
          (1) no such loan shall exceed the development cost or 
        the value of the security, whichever is less;
          (2) such a loan may be made for a period of up to 30 
        years from the making of the loan, but the Secretary 
        may provide for periodic payments based on an 
        amortization schedule of 50 years with a final payment 
        of the balance due at the end of the term of the loan;
          (3) for insuring such loans, the Secretary shall 
        utilize the Agricultural Credit Insurance Fund subject 
        to all the provisions of section 309 and the second and 
        third sentences of section 308 of the Consolidated 
        Farmers Home Administration Act of 1961, including the 
        authority in section 309(f)(1) of that Act to utilize 
        the insurance fund to make, sell, and insure loans 
        which could be insured under this subsection; but the 
        aggregate of the principal amounts of such loans made 
        by the Secretary and not disposed of shall not exceed 
        $10,000,000 outstanding at any one time; and the 
        Secretary may take liens running to the United States 
        though the notes may be held by other lenders;
          (4) such a loan, when made to a consumer cooperative 
        for cooperative housing purposes, may, notwithstanding 
        any other provision of law, be made upon the condition 
        that any person who is admitted as an eligible member 
        and tenant of the cooperative may not subsequently be 
        deprived of his membership or tenancy by reason of his 
        no longer meeting the income eligibility requirements 
        established by the Secretary;
          (5) loans may be made to owners who are otherwise 
        eligible under this section to purchase and convert 
        single-family residences to rental units of two or more 
        dwellings; and
          (6) the Secretary may make a new loan to the current 
        borrower to finance the final payment of the original 
        loan for an additional period not to exceed twenty 
        years, if--
                  (A) the Secretary determines--
                          (i) it is more cost-efficient and 
                        serves the tenant base more effectively 
                        to maintain the current property than 
                        to build a new property in the same 
                        location; or
                          (ii) the property has been maintained 
                        to such an extent that it warrants 
                        retention in the current portfolio 
                        because it can be expected to continue 
                        providing decent, safe, and affordable 
                        rental units for the balance of the 
                        loan; and
                  (B) the Secretary determines--
                          (i) current market studies show that 
                        a need for low-income rural rental 
                        housing still exists for that area; and
                          (ii) any other criteria established 
                        by the Secretary has been met.
  (c) With respect to a loan made or insured under subsection 
(a) or (b), the Secretary is authorized to--
          (1) make or insure an equity loan in the form of a 
        supplemental loan for the purpose of equity takeout to 
        the owner of housing financed with a loan made or 
        insured under this section pursuant to a contract 
        entered into before December 15, 1989, for the purpose 
        of extending the affordability of the housing for low 
        income families or persons and very low-income families 
        or persons for not less than 20 years, except that such 
        loan may not exceed 90 percent of the value of the 
        equity in the project as determined by the Secretary;
          (2) transfer and reamortize an existing loan in 
        connection with assistance provided under paragraph 
        (1); and
          (3) make or insure a loan to enable a nonprofit 
        organization or public agency to make a purchase 
        described in section 502(c)(5).
  (d) No loan shall be made or insured under subsection (a) or 
(b) unless the Secretary finds that the construction involved 
will be undertaken in an economical manner and will not be of 
elaborate or extravagant design or materials. However, 
specifically designed equipment required by elderly or 
handicapped persons or families shall not be considered 
elaborate or extravagant. A loan may be made or insured under 
subsection (a) or (b) with respect to detached units, including 
those on scattered sites, for cooperative housing.
  (e) As used in this section--
          (1) the term ``housing'' means new or existing 
        housing suitable for dwelling use by occupants eligible 
        under this section, and such term also means 
        manufactured home rental parks where either the lots or 
        both the lots and the homes are available for use by 
        occupants eligible under this section; and such term 
        also means congregate housing facilities for elderly or 
        handicapped persons or families who require some 
        supervision and central services but are otherwise able 
        to care for themselves; such housing for the 
        handicapped may be utilized in conjunction with 
        educational and training facilities;
          (2) the term ``related facilities'' includes 
        cafeterias or dining halls, community rooms or 
        buildings, appropriate recreation facilities, and other 
        essential service, facilities;
          (3) the term ``congregate housing'' means housing in 
        which (A) some of the units may not have kitchen 
        facilities, and (B) there is a central dining facility 
        to provide wholesome and economic meals for elderly or 
        handicapped persons or families; and
          (4) the term ``development cost'' means the costs of 
        constructing, purchasing, improving, altering, or 
        repairing new or existing housing and related 
        facilities and purchasing and improving the necessary 
        land, including necessary and appropriate fees and 
        charges, initial operating expenses up to 2 per centum 
        of the aforementioned costs, approved by the Secretary, 
        impact fees, local charges for installation, provision, 
        or use of infrastructure, and local assessments for 
        public improvements and services imposed by State and 
        local governments. Such fees and charges may include 
        payments of qualified consulting organizations or 
        foundations which operate on a nonprofit basis and 
        which render services or assistance to nonprofit 
        corporations or consumer cooperatives who provide 
        housing and related facilities for low or moderate 
        income families. Notwithstanding the first sentence of 
        this paragraph, the term ``development cost'' shall not 
        include any initial operating expenses in the case of 
        any nonprofit corporation or consumer cooperative that 
        is financing housing under this section and has been 
        allocated a low-income housing tax credit by a housing 
        credit agency pursuant to section 42 of the Internal 
        Revenue Code of 1986.
  (f) Amounts made available pursuant to section 513 of this 
Act shall be available for administrative expenses incurred 
under this section.
  (g) Notwithstanding the provisions of subsections (a) and (b) 
of this section, the Secretary may make and insure loans to 
consumer cooperatives to enable such cooperatives to finance 
the transfers of memberships in the cooperatives upon such 
terms and conditions as low- and moderate-income persons can 
reasonably afford, except that such loans shall not be made 
upon terms more favorable than are authorized under section 
521(a), and that the total loan to a cooperative under this 
section shall not exceed the value of the property.
  (h)(1) Condition.--Project Transfers.--After the date of the 
enactment of the Act entitled ``An Act making appropriations 
for Agriculture, Rural Development, Food and Drug 
Administration, and Related Agencies programs for the fiscal 
year ending September 30, 1997, and for other purposes'', the 
ownership or control of a project for which a loan is made or 
insured under this section may be transferred only if the 
Secretary determines that such transfer would further the 
provision of housing and related facilities for low-income 
families or persons and would be in the best interests of 
residents and the Federal Government.
          (2) Actions to expedite project approvals.--
                  (A) In general.--The Secretary shall take 
                actions to facilitate timely approval of 
                requests to transfer ownership or control, for 
                the purpose of rehabilitation or preservation, 
                of multifamily housing projects for which 
                assistance is provided by the Secretary of 
                Agriculture in conjunction with any low-income 
                housing tax credits under section 42 of the 
                Internal Revenue Code of 1986 or tax-exempt 
                housing bonds.
                  (B) Consultation.--The Secretary of 
                Agriculture shall consult with the Commissioner 
                of the Internal Revenue Service and take such 
                actions as are appropriate in conjunction with 
                such consultation to simplify the coordination 
                of rules, regulations, forms (including 
                applications forms for project transfers), and 
                approval requirements multifamily housing 
                projects for which assistance is provided by 
                the Secretary of Agriculture in conjunction 
                with any low-income housing tax credits under 
                section 42 of the Internal Revenue Code of 1986 
                or tax-exempt housing bonds.
                  (C) Existing requirements.--Any actions taken 
                pursuant to this paragraph shall be taken in a 
                manner that provides for full compliance with 
                any existing requirements under law or 
                regulation that are designed to protect 
                families receiving Federal housing assistance, 
                including income targeting, rent, and fair 
                housing provisions, and shall also comply with 
                requirements regarding environmental review and 
                protection and wages paid to laborers.
                  (D) Recommendations.--In implementing the 
                changes required under this paragraph, the 
                Secretary shall solicit recommendations 
                regarding such changes from project owners and 
                sponsors, investors and stakeholders in housing 
                tax credits, State and local housing finance 
                agencies, tenant advocates, and other 
                stakeholders in such projects.
  (i) After approving a project involving newly constructed or 
substantially rehabilitated units under this section, the 
Secretary shall limit cost increases to those approved by the 
Secretary. The Secretary may approve those increases only for 
unforeseen factors beyond the owner's control, design changes 
required by the Secretary or the local government, or changes 
in financing approved by the Secretary.
  (j) For the purpose of achieving the lowest cost in providing 
units in newly constructed projects assisted under this 
section, the Secretary shall give a preference in entering into 
contracts under this section for projects which are to be 
located on specific tracts of land provided by States, units of 
local government, or others if the Secretary determines that 
the tract of land is suitable for such housing, and that 
affording such preference will be cost effective.
  (k) The Secretary shall assure that management fees are not 
excessive when a project developed under this section is 
managed by the developer or an affiliate of the developer.
  (l) For purposes of determining the market feasibility of any 
project to be assisted under this section--
          (1) in the case of any applicant who applies for 
        rental assistance payments under section 521 in 
        connection with such project, the Secretary shall 
        consider the availability of such rental assistance 
        payments with respect to the project and shall require 
        such applicant to demonstrate that a market exists for 
        persons and families eligible for such rental 
        assistance payments; and
          (2) in the case of any applicant whose project is 
        expected to utilize any assistance under a program of a 
        State, or political subdivision thereof, that is 
        similar to such assistance payments under section 521, 
        the Secretary shall only require such applicant to 
        demonstrate that--
                  (A) a market exists for persons and families 
                eligible for such program of assistance;
                  (B) such program of assistance will provide 
                rental assistance for a period of not less than 
                five years, and, at the option of the 
                applicant, either that there is a reasonable 
                assurance that the contract for assistance will 
                be extended or renewed, or for the term of the 
                loan remaining after the period of such 
                assistance, that an adequate rental market 
                exists for the project without such assistance; 
                and
                  (C) during the term of such rental assistance 
                contracts, such State or political subdivision 
                shall make available the amounts required for 
                such rental assistance not less than annually.
  (m)(1) The Secretary shall establish standards for housing 
and related facilities rehabilitated or repaired with amounts 
received under a loan made or insured under this section. 
Standards established by the Secretary under this subsection 
shall provide that except for substantial rehabilitation the 
particular items or systems repaired or rehabilitated must meet 
appropriate levels of quality or performance comparable to 
those levels prescribed by the Secretary of Housing and Urban 
Development for rehabilitation, but shall not require that such 
items or systems or the remainder of the property meet the 
standards which are applicable to new construction. The 
Secretary shall ensure that standards prescribed under this 
subsection provide decent, safe, and sanitary housing and 
related facilities.
          (2) Housing and related facilities rehabilitated or 
        repaired with amounts received under a loan made or 
        insured under this section shall contain installed 
        carbon monoxide alarms or detectors that meet or 
        exceed--
                  (A) the standards described in chapters 9 and 
                11 of the 2018 publication of the International 
                Fire Code, as published by the International 
                Code Council; or
                  (B) any other standards as may be adopted by 
                the Secretary, in collaboration with the 
                Secretary of Housing and Urban Development, 
                including any relevant updates to the 
                International Fire Code, through a notice 
                published in the Federal Register.
  (3) Qualifying smoke alarms.--
          (A) In general.--Housing and related facilities 
        rehabilitated or repaired with amounts received under a 
        loan made or insured under this section shall contain 
        qualifying smoke alarms that are installed in 
        accordance with applicable codes and standards 
        published by the International Code Council or the 
        National Fire Protection Association and the 
        requirements of the National Fire Protection 
        Association Standard 72, or any successor standard, in 
        each level and in or near each sleeping area in such 
        dwelling unit, including in basements but excepting 
        crawl spaces and unfinished attics, and in each common 
        area in a project containing such a dwelling unit.
          (B) Definitions.--For purposes of this paragraph, the 
        following definitions shall apply:
                  (i) Smoke alarm defined.--The term ``smoke 
                alarm'' has the meaning given the term ``smoke 
                detector'' in section 29(d) of the Federal Fire 
                Prevention and Control Act of 1974 (15 U.S.C. 
                2225(d)).
                  (ii) Qualifying smoke alarm defined.--The 
                term ``qualifying smoke alarm'' means a smoke 
                alarm that--
                          (I) in the case of a dwelling unit 
                        built before the date of enactment of 
                        this paragraph and not substantially 
                        rehabilitated after the date of 
                        enactment of this paragraph is--
                                  (aa) hardwired; or
                                  (bb) uses 10-year non 
                                rechargeable, nonreplaceable 
                                primary batteries and--
                                          (AA) is sealed;
                                          (BB) is tamper 
                                        resistant;
                                          (CC) contains 
                                        silencing means; and
                                          (DD) provides 
                                        notification for 
                                        persons with hearing 
                                        loss as required by the 
                                        National Fire 
                                        Protection Association 
                                        Standard 72, or any 
                                        successor standard; or
                          (II) in the case of a dwelling unit 
                        built or substantially rehabilitated 
                        after the date of enactment of this 
                        paragraph, is hardwired.
  (n) The Secretary may not deny assistance under this section 
or section 521 on the basis that the project involved is to be 
located on more than one site.
  (o) The Secretary may not (1) deny assistance under this 
section on the basis that rental assistance payments under 
section 521 may be required unless the authority to provide 
such assistance is not available; or (2) promulgate any 
regulation that would have the effect of denying occupancy to 
eligible persons on the basis that such persons require rental 
assistance payments under section 521.
  (p)(1) To the extent assistance is available under section 
521(a)(2), not more than 25 per centum of the dwelling units 
which were available for occupancy under this section prior to 
the date of enactment of this subsection, and which will be 
leased on or after such date shall be available for leasing by 
low income persons and families other than very low-income 
persons and families.
  (2) To the extent assistance is available under section 
521(a)(2), not more than 5 per centum of the dwelling units 
which become available for occupancy under this section on or 
after the date of enactment of this subsection shall be 
available for leasing by low income persons and families other 
than very low-income persons and families.
  (3) Units in projects financed under this section which 
become available for occupancy after the date of enactment of 
this subsection shall not be available for occupancy by persons 
and families other than very low-income persons and families if 
the authority to provide assistance for such persons is 
available.
  (4) In projects financed under this section, units that have 
been allocated a low-income housing tax credit by a housing 
credit agency pursuant to section 42 of the Internal Revenue 
Code of 1986 shall not be available for occupancy by persons or 
families other than persons or families with incomes not in 
excess of the qualifying income applicable to such units 
pursuant to subparagraph (A) or (B) of section 42(g)(1) of such 
Code.
  (5) The Secretary shall coordinate the processing of any 
application for a loan under this section for a project and the 
processing of any application for assistance under section 
521(a)(2) with respect to housing units in the same project in 
an economical and efficient manner. At the time the Secretary 
enters into a commitment to make or insure a loan under this 
section the Secretary shall obligate amounts for assistance 
payments under section 521(a)(2) for the project, to the extent 
that such amounts are available and the Secretary determines 
such assistance is necessary for the market feasibility of the 
project.
  (q) In determining the income of a person or family occupying 
housing financed under this section, the Secretary shall 
consider the value of that person's or family's assets in the 
same manner as the Secretary of Housing and Urban Development 
considers such value for the purpose of the United States 
Housing Act of 1937.
  (r)(1) the Secretary--
          (A) may require that the initial operating reserve 
        under this section may be in the form of an irrevocable 
        letter of credit; and
          (B) except as provided in paragraph (2), may require 
        not more than a 3 percent contribution to equity, 
        except that the Secretary shall require a 5 percent 
        contribution in the case of a project that is allocated 
        a low-income housing tax credit pursuant to section 42 
        of the Internal Revenue Code of 1986.
  (2) The Secretary may adjust the amount of equity 
contribution to ensure that assistance provided is not more 
than is necessary to provide affordable housing after taking 
account of assistance from all Federal, State, and local 
sources.
  (3) Not later than 60 days after the date of enactment of the 
Act entitled ``An Act making appropriations for Agriculture, 
Rural Development, Food and Drug Administration, and Related 
Agencies programs for the fiscal year ending September 30, 
1997, and for other purposes'', the Secretary shall issue 
regulations to implement subsection (r)(2) in accordance with 
the negotiated rulemaking procedures set forth in subchapter 
III of chapter 5 of title 5, United States Code: Provided, That 
if the negotiated rulemaking is not completed within the 
designated time, the Secretary shall proceed to promulgate 
regulations under the rulemaking authority contained in 5 
U.S.C. 557.
  (s) No fee other than a late fee may be imposed by or for the 
Secretary or any other Federal agency on or with respect to a 
loan made or insured under this section.
  (t) Equity Takeout Loans.--
          (1) Authority.--The Secretary is authorized to 
        guarantee an equity loan (in the form of a supplemental 
        loan) to an owner of housing financed with a loan made 
        or insured under subsection (b), only if the Secretary 
        determines, after taking into account local market 
        conditions, that there is reasonable likelihood that 
        the housing will continue as decent, safe, and sanitary 
        housing for the remaining life of the original loan on 
        the project made or insured under subsection (b) and 
        that such an equity loan is--
                  (A) necessary to provide a fair return on the 
                owner's investment in the housing;
                  (B) the least costly alternative for the 
                Federal Government that is consistent with 
                carrying out the purposes of this subsection; 
                and
                  (C) would not impose an undue hardship on 
                tenants or an unreasonable cost to the Federal 
                Government.
        The amount of loans guaranteed under this subsection 
        shall be subject to limits provided in appropriations 
        Acts.
          (2) Timing.--The Secretary is authorized to guarantee 
        an equity loan under this subsection after the 
        expiration of the 20-year period beginning on the date 
        that an existing loan under subsection (b) of this 
        section was made or insured. Not more than one equity 
        loan under this subsection may be provided for any 
        project.
          (3) Amount of the takeout.--The amount of an equity 
        loan under this subsection shall not exceed the 
        difference between the outstanding principal on debt 
        secured by the project and 90 percent of the appraised 
        value of the project. The appraised value of the 
        project shall be determined by 2 independent 
        appraisers, 1 of whom shall be selected by the 
        Secretary and 1 of whom shall be selected by the owner. 
        If the 2 appraisers fail to agree on the value of the 
        project, the Secretary and the owner shall jointly 
        select a third appraiser whose appraisal shall be 
        binding on the Secretary and the owner. The amount of 
        the equity loan shall not exceed 30 percent of the 
        amount of the original appraised value of the project 
        made or insured under subsection (b).
          (4) Submission of plan.--An owner requesting an 
        equity loan under this subsection shall submit a plan 
        acceptable to the Secretary to ensure that the cost of 
        amortizing an equity loan under paragraph (1) does not 
        result in the displacement of very-low-income tenants 
        or substantially alter the income mix of the tenants in 
        the project.
          (5) Regulations.--The Secretary shall issue final 
        regulations within 180 days from the date of enactment 
        of this subsection.
          (6) Effective date.--The requirements of this 
        subsection shall apply to any loan obligated under this 
        section on or after December 15, 1989. This subsection 
        shall not require retroactive reserve account payments 
        with respect to any loan that was obligated on or after 
        December 15, 1989, and on or before June 16, 1990, but 
        reserve account payments shall be required for such 
        loans beginning on the date of the enactment of this 
        paragraph.
  (u) Reuse of Loan Authority.--Loan authority that is 
obligated under this section but that is not expended due to 
any action that removes the original borrower, may be 
reallocated to a different borrower during the same fiscal year 
in which the loan authority was obligated. Any loan authority 
under this section appropriated or made available within limits 
established in appropriations Acts shall remain available until 
expended.
  (v) Assumption of Loans.--The Secretary may provide for the 
assumption or transfer of a loan or loan obligation under this 
section to any person or entity qualified to receive a loan or 
loan obligation under this section in any case of default or 
foreclosure with respect to the original borrower. The 
Secretary shall provide in each assumption or transfer under 
this subsection for the assumption of the obligations, rights, 
and interests under the terms of the loan or loan obligation or 
such other terms as the Secretary determines appropriate.
  (w) Set-Aside of Rural Rental Housing Funds.--
          (1) Authority.--Except as provided in paragraph (2), 
        the Secretary shall set aside from amounts made 
        available for each State for loans under this section, 
        not less than 9 percent of the amounts available in 
        each fiscal year. Amounts set aside shall be available 
        only for nonprofit entities in the State, which may not 
        be wholly or partially owned or controlled by a for-
        profit entity. A partnership, that has as its general 
        partner a nonprofit entity or the nonprofit entity's 
        for-profit subsidiary, is eligible to receive funds set 
        aside under this subsection to sponsor a project which 
        is receiving low-income housing tax credits authorized 
        under section 42 of the Internal Revenue Code of 1986. 
        For the purposes of this subsection, a nonprofit entity 
        is an organization that--
                  (A) will own an interest in a project to be 
                financed under this section and will materially 
                participate in the development and the 
                operation of the project;
                  (B) is a private organization that has 
                nonprofit, tax exempt status under section 
                501(c)(3) or section 501(c)(4) of the Internal 
                Revenue Code of 1986;
                  (C) has among its purposes the planning, 
                development, or management of low-income 
                housing or community development projects; and
                  (D) is not affiliated with or controlled by a 
                for-profit organization.
          (2) Minimum state set-aside.--If the amount set aside 
        under paragraph (1) for any State is less than $750,000 
        in any fiscal year, the Secretary shall pool such 
        amount together with set-aside amounts from other 
        States whose set-aside is less than $750,000, and shall 
        make such amounts available for such eligible entities 
        under paragraph (1) in any such State. The Secretary 
        shall establish a procedure to provide that any amounts 
        pooled under this paragraph from the allocation for any 
        State in any fiscal year that are not obligated during 
        a reasonable period in such year shall be made 
        available for any such eligible entities under 
        paragraph (1) in such State. The Secretary may provide 
        amounts available for reallocation under this 
        subsection in excess of $750,000 in a given State, if 
        such amounts are necessary to finance a project under 
        this section.
          (3) Unused amounts.--
                  (A) Equitable distribution.--Any amounts set 
                aside under this subsection from the allocation 
                for any State that are not obligated by 9 
                months after the allocation, shall first be 
                pooled and made available to any other eligible 
                nonprofit entity in any State as defined in 
                this subsection. The Secretary shall make 
                reasonable efforts to ensure that pooled funds 
                are distributed under this subparagraph in an 
                equitable manner.
                  (B) Return to the states.--After funds have 
                been pooled and obligated for 30 days, the 
                Secretary shall return any remaining funds to 
                the States on a proportional basis for use by 
                any other eligible entity as defined in this 
                section.
  (x) Uniform Project Costs; Coordination of Housing Resources 
and Tax Benefits.--The Secretary shall--
          (1) establish standard guidelines for State offices 
        that describe allowable development costs which are 
        required for development of all projects under this 
        section, without regard to whether the project was 
        allocated a low-income housing tax credit;
          (2) require each State to establish a process for 
        coordinating the selection of projects under this 
        section with the housing needs and priorities as 
        established in a State comprehensive housing 
        affordability strategy under section 105 of the 
        Cranston-Gonzalez National Affordable Housing Act and a 
        low-income housing tax credit allocation plan under 
        section 42 of the Internal Revenue Code of 1986; and
          (3) develop, in consultation with housing credit 
        agencies (as that term is defined under section 42 of 
        the Internal Revenue Code of 1986), uniform procedures 
        for identifying and sharing information on project 
        costs, builder profit, identity of interests 
        relationships, and other factors, as appropriate, with 
        the relevant housing credit agency for projects that 
        are allocated a low-income housing tax credit pursuant 
        to section 42(h) of the Internal Revenue Code of 1986 
        for the purpose of achieving compliance with section 
        102(d) of the Department of Housing and Urban 
        Development Reform Act of 1989 (42 U.S.C. 3545(d)).
  (y) Service Coordinators.--
          (1) Grants.--The Secretary may make grants under this 
        subsection, with respect to any project that the 
        Secretary determines has a sufficient number of frail 
        elderly residents, for the cost of employing or 
        otherwise retaining the services of one or more 
        individuals to coordinate services provided to frail 
        elderly residents of the project (in this subsection 
        referred to as a ``service coordinator''), who shall be 
        responsible for--
                  (A) assessing the supportive service needs of 
                frail elderly residents of the project, based 
                on objective criteria and interviews with such 
                residents;
                  (B) working with service providers to design 
                the provision of services to meet the needs of 
                frail elderly residents of the project, taking 
                into consideration the needs and desires of 
                such residents and their ability and 
                willingness to pay for such services, as 
                expressed by the residents;
                  (C) mobilizing public and private resources 
                to obtain funding for such services for such 
                residents;
                  (D) monitoring and evaluating the impact and 
                effectiveness of any supportive services 
                provided for such residents;
                  (E) consulting and coordinating with any 
                appropriate public and private agencies 
                regarding the provision of supportive services; 
                and
                  (F) performing such other duties that the 
                Secretary deems appropriate to enable frail 
                elderly persons residing in federally assisted 
                housing to live with dignity and independence.
          (2) Qualifications.--Individuals employed as service 
        coordinators pursuant to this subsection shall meet the 
        minimum qualifications and standards established under 
        section 802(d)(4) of the Cranston-Gonzalez National 
        Affordable Housing Act for service coordinators under a 
        congregate housing services program.
          (3) Application and selection.--The Secretary shall 
        provide for the form and manner of applications for 
        grants under this subsection and for the selection of 
        applicants to receive the grants.
          (4) Definition of frail elderly.--For purposes of 
        this subsection, the term ``frail elderly'' has the 
        meaning given the term in section 802(k) of the 
        Cranston-Gonzalez National Affordable Housing Act.
  (z) Accounting and Recordkeeping Requirements.--
          (1) Accounting standards.--The Secretary shall 
        require that borrowers in programs authorized by this 
        section maintain accounting records in accordance with 
        generally accepted accounting principles for all 
        projects that receive funds from loans made or 
        guaranteed by the Secretary under this section.
          (2) Record retention requirements.--The Secretary 
        shall require that borrowers in programs authorized by 
        this section retain for a period of not less than 6 
        years and make available to the Secretary in a manner 
        determined by the Secretary, all records required to be 
        maintained under this subsection and other records 
        identified by the Secretary in applicable regulations.
  (aa) Double Damages for Unauthorized Use of Housing Projects 
Assets and Income.--
          (1) Action to recover assets or income.--
                  (A) In general.--The Secretary may request 
                the Attorney General to bring an action in a 
                United States district court to recover any 
                assets or income used by any person in 
                violation of the provisions of a loan made or 
                guaranteed by the Secretary under this section 
                or in violation of any applicable statute or 
                regulation.
                  (B) Improper documentation.--For purposes of 
                this subsection, a use of assets or income in 
                violation of the applicable loan, loan 
                guarantee, statute, or regulation shall include 
                any use for which the documentation in the 
                books and accounts does not establish that the 
                use was made for a reasonable operating expense 
                or necessary repair of the project or for which 
                the documentation has not been maintained in 
                accordance with the requirements of the 
                Secretary and in reasonable condition for 
                proper audit.
                  (C) Definition.--For the purposes of this 
                subsection, the term ``person'' means--
                          (i) any individual or entity that 
                        borrows funds in accordance with 
                        programs authorized by this section;
                          (ii) any individual or entity holding 
                        25 percent or more interest of any 
                        entity that borrows funds in accordance 
                        with programs authorized by this 
                        section; and
                          (iii) any officer, director, or 
                        partner of an entity that borrows funds 
                        in accordance with programs authorized 
                        by this section.
          (2) Amount recoverable.--
                  (A) In general.--In any judgment favorable to 
                the United States entered under this 
                subsection, the Attorney General may recover 
                double the value of the assets and income of 
                the project that the court determines to have 
                been used in violation of the provisions of a 
                loan made or guaranteed by the Secretary under 
                this section or any applicable statute or 
                regulation, plus all costs related to the 
                action, including reasonable attorney and 
                auditing fees.
                  (B) Application of recovered funds.--
                Notwithstanding any other provision of law, the 
                Secretary may use amounts recovered under this 
                subsection for activities authorized under this 
                section and such funds shall remain available 
                for such use until expended.
          (3) Time limitation.--Notwithstanding any other 
        provision of law, an action under this subsection may 
        be commenced at any time during the 6-year period 
        beginning on the date that the Secretary discovered or 
        should have discovered the violation of the provisions 
        of this section or any related statutes or regulations.
          (4) Continued availability of other remedies.--The 
        remedy provided in this subsection is in addition to 
        and not in substitution of any other remedies available 
        to the Secretary or the United States.

  financial assistance to provide low-rent housing for domestic farm 
                                 labor

  Sec. 516. (a) Upon the application of any State or political 
subdivision thereof, or any Indian tribe, or any broad-based 
public or private nonprofit organization incorporated within 
the State, or any nonprofit organization of farmworkers 
incorporated within the State, the Secretary is authorized to 
provide financial assistance for the provision of low-rent 
housing and related facilities (which may be located any place 
within the State) for domestic farm labor, if he finds that--
          (1) the housing and related facilities for which 
        financial assistance is requested will fulfill a 
        pressing need in the area in which such housing and 
        facilities will be located, and there is reasonable 
        doubt that the same can be provided without financial 
        assistance under this section;
          (2) the applicant will contribute, from its own 
        resources or from funds borrowed under section 514 or 
        elsewhere, at least 10 per centum of the total 
        development cost;
          (3) the types of housing and related facilities to be 
        provided are most practical, giving due consideration 
        to the purposes to be served thereby and the needs of 
        the occupants thereof, and such housing and facilities 
        shall be durable and suitable for year-around occupancy 
        or use, unless the Secretary finds that there is no 
        need for such year-around occupancy or use in that 
        area; and
          (4) the construction will be undertaken in an 
        economical manner, and the housing and related 
        facilities will not be of elaborate or extravagant 
        design or materials.
  (b) The amount of any financial assistance provided under 
this section for low-rent housing and related facilities shall 
not exceed 90 per centum of the total development cost thereof, 
as determined by the Secretary, less such amount as the 
Secretary determines can be practicably obtained from other 
sources (including a loan under section 514).
  (c) No financial assistance for low-rent housing and related 
facilities shall be made available under this section unless, 
to any extent and for any periods required by the Secretary, 
the applicant agrees--
          (1) that the rentals charged domestic farm labor 
        shall not exceed such amounts as may be approved by the 
        Secretary giving due consideration to the income and 
        earning capacity of the tenants, and the necessary 
        costs of operating and maintaining such housing;
          (2) that such housing shall be maintained at all 
        times in a safe and sanitary condition in accordance 
        with such standards as may be prescribed by State or 
        local law, or, in the absence of such standards, in 
        accordance with such minimum requirements as the 
        Secretary shall prescribe; [and]
          (3) an absolute priority will be given at all times 
        in granting occupancy of such housing and facilities to 
        domestic farm labor[.]; and
          (4) that such housing shall contain qualifying smoke 
        alarms that are installed in accordance with applicable 
        codes and standards published by the International Code 
        Council or the National Fire Protection Association and 
        the requirements of the National Fire Protection 
        Association Standard 72, or any successor standard, in 
        each level and in or near each sleeping area in such 
        dwelling unit, including in basements but excepting 
        crawl spaces and unfinished attics, and in each common 
        area in a project containing such a dwelling unit.
  (d) The Secretary may make payments pursuant to any contract 
for financial assistance under this section at such times and 
in such manner as may be specified in the contract. In each 
contract, the Secretary shall include such covenants, 
conditions, or provisions as he deems necessary to insure that 
the housing and related facilities, for which financial 
assistance is made available, be used only in conformity with 
the provisions of this section.
  (e) The Secretary shall prescribe regulations to insure that 
Federal funds expended under this section are not wasted or 
dissipated. The Secretary shall not give priority for funding 
under this section to any one of the groups listed in 
subsection (a) over any of the others so listed.
  (f) All laborers and mechanics employed by contractors or 
subcontractors on projects assisted by the Secretary which are 
undertaken by approved applicants under this section shall be 
paid wages at rates not less than those prevailing on similar 
construction in the locality, as determined by the Secretary of 
Labor in accordance with the Davis-Bacon Act, as amended (40 
U.S.C. 276a--276a-5). The Secretary shall not extend any 
financial assistance under this section for any project without 
first obtaining adequate assurance that these labor standards 
will be maintained on the construction work; except that 
compliance with such standards may be waived by the Secretary 
in cases or classes of cases where laborers or mechanics, not 
otherwise employed at any time on the project, voluntarily 
donate their services without compensation for the purpose of 
lowering the costs of construction and the Secretary determines 
that any amounts thereby saved are fully credited to the 
person, corporation, association, organization, or other entity 
undertaking the project. The Secretary of Labor shall have, 
with respect to the labor standards specified in this section, 
the authority and functions set forth in Reorganization Plan 
Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 1267; 5 U.S.C. 
133z-15), and section 2 of the Act of June 13, 1934, as amended 
(40 U.S.C. 276).
  (g) As used in this section--
          (1) the term ``low-rent housing'' means rental 
        housing within the financial reach of families of low 
        income consisting of (A) new structures (including 
        household furnishings) suitable for dwelling use by 
        domestic farm labor, and (B) existing structures 
        (including household furnishings) which can be made 
        suitable for dwelling use by domestic farm labor by 
        rehabilitation, alteration, conversion, or improvement;
          (2) the terms ``related facilities'' and ``domestic 
        farm labor'' shall have the meaning assigned to them in 
        section 514(f);
          (3) the term ``development cost'' shall have the 
        meaning assigned to it in section 515(d)(4); [and]
          (4) the term ``domestic farm labor'' has the meaning 
        given such term in section 514(f)(3)[.];
          (5) the term ``smoke alarm'' has the meaning given 
        the term ``smoke detector'' in section 29(d) of the 
        Federal Fire Prevention and Control Act of 1974 (15 
        U.S.C. 2225(d)); and
          (6) the term ``qualifying smoke alarm'' means a smoke 
        alarm that--
                  (A) in the case of a dwelling unit built 
                before the date of enactment of this paragraph 
                and not substantially rehabilitated after the 
                date of enactment of this paragraph is--
                          (i) hardwired; or
                          (ii) uses 10-year non rechargeable, 
                        nonreplaceable primary batteries and--
                                  (I) is sealed;
                                  (II) is tamper resistant;
                                  (III) contains silencing 
                                means; and
                                  (IV) provides notification 
                                for persons with hearing loss 
                                as required by the National 
                                Fire Protection Association 
                                Standard 72, or any successor 
                                standard; or
                  (B) in the case of a dwelling unit built or 
                substantially rehabilitated after the date of 
                enactment of this paragraph, is hardwired.
  (h) Notwithstanding the provisions of subsection (a)(3), the 
Secretary may, upon a finding of persistent need for migrant 
farmworker housing in any area, provide assistance to eligible 
applicants for 90 per centum of the development costs of such 
housing in such area to be used solely by migrant farmworkers 
while they are away from their residence. Such housing shall be 
constructed in such a manner as to be safe and weatherproof for 
the time it is to be occupied, be equipped with potable water 
and modern sanitation facilities (including a kitchen sink, 
toilet, and bathing facilities), and meet such other 
requirements as the Secretary may prescribe.
  (i) The Secretary shall utilize not more than 10 per centum 
of the amounts available for any fiscal year for purposes of 
this section for financial assistance to eligible private and 
public nonprofit agencies to encourage the development of 
domestic and migrant farm labor housing projects under this 
title.
  (j) Housing and related facilities constructed with grants 
under this section may be used for tenants eligible for 
occupancy under section 515 if the Secretary determines that--
          (1) there is no longer a need in the area for farm 
        labor housing; or
          (2) the need for such housing in the area has 
        diminished to the extent that the purpose of the grant, 
        providing housing for domestic farm labor, can no 
        longer be met.
  (k) Housing for Rural Homeless and Migrant Farmworkers.--
          (1) In general.--The Secretary may provide financial 
        assistance for providing affordable rental housing and 
        related facilities for migrant farmworkers and homeless 
        individuals (and the families of such individuals) to 
        applicants as provided in this subsection.
          (2) Types of assistance.--
                  (A) In general.--The Secretary may provide 
                the following assistance for housing under this 
                subsection:
                          (i) An advance, in an amount not to 
                        exceed $400,000, of the cost of 
                        acquisition, substantial 
                        rehabilitation, or acquisition and 
                        rehabilitation of an existing structure 
                        or construction of a new structure for 
                        use in the provision of housing under 
                        this subsection. The repayment of any 
                        outstanding debt owed on a loan made to 
                        purchase an existing structure shall be 
                        considered to be a cost of acquisition 
                        eligible for an advance under this 
                        subparagraph if the structure was not 
                        used for the purposes under this 
                        subsection prior to the receipt of 
                        assistance.
                          (ii) A grant, in an amount not to 
                        exceed $400,000, for moderate 
                        rehabilitation of an existing structure 
                        for use in the provision of housing 
                        under this subsection.
                          (iii) Annual payments for operating 
                        costs of such housing (without regard 
                        to whether the housing is an existing 
                        structure), not to exceed 75 percent of 
                        the annual operating costs of such 
                        housing.
                  (B) Available assistance.--A recipient may 
                receive assistance under both clauses (i) and 
                (ii) of subparagraph (A). The Secretary may 
                increase the limit contained in such clauses to 
                $800,000 in areas which the Secretary finds 
                have high acquisition and rehabilitation costs.
                  (C) Repayment of advance.--Any advance 
                provided under subparagraph (A)(i) shall be 
                repaid on such terms as may be prescribed by 
                the Secretary when the project ceases to be 
                used as housing in accordance with the 
                provisions of this subsection. Recipients shall 
                be required to repay 100 percent of the advance 
                if the housing is used for purposes under this 
                subsection for fewer than 10 years following 
                initial occupancy. If the housing is used for 
                such purposes for more than 10 years, the 
                percentage of the amount that shall be required 
                to be repaid shall be reduced by 10 percentage 
                points for each year in excess of 10 that the 
                property is so used.
                  (D) Prevention of undue benefits.--Upon any 
                sale or other disposition of housing acquired 
                or rehabilitated with assistance under this 
                subsection prior to the close of 20 years after 
                the housing is placed in service, other than a 
                sale or other disposition resulting in the use 
                of the project for the direct benefit of low 
                income persons or where all of the proceeds are 
                used to provide housing for migrant farmworkers 
                and homeless individuals (and the families of 
                such individuals), the recipient shall comply 
                with such terms and conditions as the Secretary 
                may prescribe to prevent the recipient from 
                unduly benefiting from the sale or other 
                disposition of the project.
          (3) Program requirements.--
                  (A) Applications.--
                          (i) Applications for assistance under 
                        this subsection shall be submitted by 
                        an applicant in such form and in 
                        accordance with such procedures as the 
                        Secretary shall establish.
                          (ii) The Secretary shall require that 
                        applications contain at a minimum (I) a 
                        description of the proposed housing, 
                        (II) a description of the size and 
                        characteristics of the population that 
                        would occupy the housing, (III) a 
                        description of any public and private 
                        resources that are expected to be made 
                        available in connection with the 
                        housing, (IV) a description of the 
                        housing needs for migrant farmworkers 
                        and homeless individuals (and the 
                        families of such individuals) in the 
                        area to be served by the housing, and 
                        (V) assurances satisfactory to the 
                        Secretary that the housing assisted 
                        will be operated for not less than 10 
                        years for the purpose specified in the 
                        application.
                          (iii) The Secretary shall require 
                        that an application furnish reasonable 
                        assurances that the housing will be 
                        available for occupancy by homeless 
                        individuals (and the families of such 
                        individuals) only on an emergency and 
                        temporary basis during the offseason 
                        and shall be otherwise available for 
                        occupancy by migrant farmworkers (and 
                        their families).
                          (iv) The Secretary shall require that 
                        an application furnish reasonable 
                        assurances that the applicant will own 
                        or have control of a site for the 
                        proposed housing not later than 6 
                        months after notification of an award 
                        for grant assistance. An applicant may 
                        obtain ownership or control of a 
                        suitable site different from the site 
                        specified in the application. If an 
                        applicant fails to obtain ownership or 
                        control of the site within 1 year after 
                        notification of an award for grant 
                        assistance, the grant shall be 
                        recaptured and reallocated.
                  (B) Selection criteria.--The Secretary shall 
                establish selection criteria for a national 
                competition for assistance under this 
                subsection, which shall include--
                          (i) the ability of the applicant to 
                        develop and operate the housing;
                          (ii) the feasibility of the proposal 
                        in providing the housing;
                          (iii) the need for such housing in 
                        the area to be served;
                          (iv) the cost effectiveness of the 
                        proposed housing;
                          (v) the extent to which the project 
                        would meet the needs of migrant 
                        farmworkers and homeless individuals 
                        (and the families of such individuals) 
                        in the State;
                          (vi) the extent to which the 
                        applicant has control of the site of 
                        the proposed housing; and
                          (vii) such other factors as the 
                        Secretary determines to be appropriate 
                        for purposes of this subsection.
                  (C) Required agreements.--The Secretary may 
                not approve assistance for any housing under 
                this subsection unless the applicant agrees--
                          (i) to operate the proposed project 
                        as housing for migrant farmworkers and 
                        homeless individuals (and the families 
                        of such individuals) in compliance with 
                        the provisions of this subsection and 
                        the application approved by the 
                        Secretary;
                          (ii) to monitor and report to the 
                        Secretary on the progress of the 
                        housing; and
                          (iii) to comply with such other terms 
                        and conditions as the Secretary may 
                        establish for purposes of this 
                        subsection.
                  (D) Occupant rent.--Each migrant farmworker 
                and homeless individual residing in a facility 
                assisted under this subsection shall pay as 
                rent an amount determined in accordance with 
                the provisions of section 3(a) of the United 
                States Housing Act of 1937.
          (4) Guidelines.--
                  (A) Regulations.--Not later than 120 days 
                after the date of enactment of the Cranston-
                Gonzalez National Affordable Housing Act, the 
                Secretary shall by notice establish such 
                requirements as may be necessary to carry out 
                the provisions of this subsection.
                  (B) Limitation on use of funds.--No 
                assistance received under this subsection (or 
                any State or local government funds used to 
                supplement such assistance) may be used to 
                replace other public funds previously used, or 
                designated for use, to assist homeless 
                individuals (and the families of such 
                individuals) or migrant farmworkers.
          (5) Limitation on administrative expenses.--No 
        recipient may use more than 5 percent of an advance or 
        grant received under this subsection for administrative 
        purposes.
          (6) Reports to congress.--The Secretary shall submit 
        annually to the Congress a report summarizing the 
        activities carried out under this subsection and 
        setting forth the findings, conclusions, and 
        recommendations of the Secretary as a result of the 
        activities. The report shall be submitted not later 
        than 3 months after the end of each fiscal year.
          (7) Definitions.--For purposes of this subsection:
                  (A) The term ``applicant'' means a State, 
                political subdivision thereof, Indian tribe, 
                any private nonprofit organization incorporated 
                within the State that has applied for a grant 
                under this subsection.
                  (B) The term ``homeless individual'' has the 
                same meaning given the term under section 103 
                of the Stewart B. McKinney Homeless Assistance 
                Act.
                  (C) The term ``migrant farmworker''--
                          (i) means any person (and the family 
                        of such person) who (I) receives a 
                        substantial portion of his or her 
                        income from primary production of 
                        agricultural or aquacultural 
                        commodities, the handling of such 
                        commodities in the unprocessed stage, 
                        or the processing of such commodities, 
                        without respect to the source of 
                        employment, and (II) establishes 
                        residence in a location on a seasonal 
                        or temporary basis, in an attempt to 
                        receive an income as described in 
                        subclause (I); and
                          (ii) includes any person (and the 
                        family of such person) who is retired 
                        or disabled, but who met the 
                        requirements of clause (i) at the time 
                        of retirement or becoming disabled.
                  (D) The term ``operating costs'' means 
                expenses incurred by a recipient providing 
                housing under this subsection with respect to 
                the administration, maintenance, repair, and 
                security of such housing and utilities, fuel, 
                furnishings, and equipment for such housing.

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