[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 947 Introduced in Senate (IS)]
108th CONGRESS
1st Session
S. 947
To better assist lower income families in obtaining decent, safe, and
affordable housing through the conversion of the section 8 housing
choice voucher program into a State-administered block grant.
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IN THE SENATE OF THE UNITED STATES
April 29, 2003
Mr. Allard introduced the following bill; which was read twice and
referred to the Committee on Banking, Housing, and Urban
AffairsYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY
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A BILL
To better assist lower income families in obtaining decent, safe, and
affordable housing through the conversion of the section 8 housing
choice voucher program into a State-administered block grant.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
(a) Short Title.--This Act may be cited as the ``Housing Assistance
for Needy Families Act of 2003''.
SEC. 2. FINDINGS AND PURPOSES.
(a) Findings.--Congress finds that--
(1) the section 8 tenant-based assistance program now
provides rental and homeownership assistance to more than
1,800,000 families;
(2) despite this success, during the past several years,
billions of dollars of funds appropriated for tenant-based
assistance have remained unspent, and as a result, several
hundred thousand families have not been provided housing
assistance made available by Congress;
(3) over 2,600 public housing agencies, half of which
administer 250 or fewer vouchers, administer the tenant-based
assistance program through direct contracts with the Secretary
of Housing and Urban Development, and thus the Secretary must
administer the program through rules and regulations that apply
directly to more than 2,600 entities throughout the Nation;
(4) this administrative structure has contributed to the
development of regulatory and statutory measures that have made
the tenant-based assistance program overly prescriptive and
difficult to administer, with hundreds of pages of regulations
and guidance;
(5) the complexity of the tenant-based assistance program,
its inability to allow adequate timely adjustments to changing
local markets, and its multiplicity of Federal directives, all
have contributed to several hundred thousand families not being
provided the housing assistance made available by Congress;
(6) the linkage between housing assistance and the
government's role in supporting self-sufficiency efforts for
low-income families is critical, and this role is now largely
carried out by the States under the Temporary Assistance for
Needy Families program authorized by the Personal
Responsibility and Work Opportunity Reconciliation Act of 1996
(42 U.S.C. 601 et. seq.) and other programs; and
(7) since assuming responsibility for the Temporary
Assistance for Needy Families program, and with respect to
other initiatives, such as the One-Stop Career Center system
under the Workforce Investment Act of 1998 (P.L. 105-220; 112
Stat. 936), States have shown that they can bring creative,
effective administration to programs for assistance to needy
families.
(b) Purposes.--The purpose of this Act is to provide for housing
assistance through a State-administered block grant, and thereby to--
(1) provide for the necessary program flexibility and
oversight so that funds are used promptly and effectively to
assist needy families;
(2) facilitate greater program responsiveness to local
markets and needs;
(3) provide for administrative decision-making closer to
the communities and families affected, by their elected
officials;
(4) provide for additional program flexibility to address
local needs;
(5) give States the authority to reallocate funds or take
other actions necessary to ensure that program funds are
expended promptly and effectively;
(6) improve government support of self-sufficiency efforts
by assisted families, by facilitating greater coordination with
the Temporary Assistance for Needy Families program, programs
under the Workforce Investment Act, and other Federal and State
programs that promote self-sufficiency;
(7) provide greater flexibility for addressing special
needs of elderly and disabled families; and
(8) facilitate State and local efforts to reduce
homelessness.
SEC. 3. DEFINITIONS.
In this Act:
(1) Families; elderly families; disabled families.--The
terms ``families'', ``elderly families'', and ``disabled
families'' have the meanings given those terms in section
3(b)(3) of the United States Housing Act of 1937 (42 U.S.C.
1437a(b)(3)).
(2) Annual gross income; gross monthly income.--The terms
``annual gross income'' and ``gross monthly income'' mean
income, during the appropriate period of time, from all sources
of each member of a household, as determined in accordance with
criteria prescribed by the State in which the household is
located.
(3) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(4) State.--The term ``State'' means the several States,
the District of Columbia, the Commonwealth of Puerto Rico, the
territories and possessions of the United States, and the
Commonwealth of the Northern Mariana Islands.
(5) Tenant-based rental and homeownership housing
assistance.--The term ``tenant-based rental and homeownership
housing assistance'' means assistance provided to an eligible
family under this Act to select suitable housing, and to re-
locate to other suitable housing.
SEC. 4. AUTHORITY.
(a) In General.--The Secretary may--
(1) make grants to States to provide tenant-based rental
and homeownership housing assistance; and
(2) carry out activities related to the provision of those
grants in accordance with this Act.
(b) Assistance.--Subject to the availability of appropriations,
each State receiving a grant under this Act shall, for each of the
fiscal years 2005 through 2009, provide tenant-based rental and
homeownership housing assistance to not fewer than the average number
of families served in such State during the 120-day period ending on
September 30, 2004, by the Housing Choice Voucher program authorized
under section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f), including those families receiving enhanced voucher assistance
authorized under such section 8 during that 120-day period.
(c) Designation of Agencies.--The chief executive officer of any
State may, in any fiscal year during which a grant under this Act is
received by the State, designate any agency or instrumentality of the
State to act on behalf of the State with regard to this Act.
SEC. 5. ELIGIBLE ACTIVITIES.
Grants awarded pursuant to section 4 may be used for--
(1) tenant-based rental housing assistance;
(2) homeownership assistance for first-time homebuyers,
including monthly homeownership assistance and downpayment
assistance as described in section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f);
(3) defraying the costs of administering grant amounts
under this Act, except that such costs shall not exceed 10
percent of grant amounts provided to the State; and
(4) any other activities specified by the Secretary in
support of tenant-based rental housing and homeownership
assistance.
SEC. 6. PLANNING AND PERFORMANCE.
(a) State Plan.--In any fiscal year, prior to the receipt of a
grant under this Act, a State shall, as part of its comprehensive
housing affordability strategy (or any consolidated plan incorporating
such strategy) under section 105 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12705), set forth quantifiable
objectives related to performance standards established by the
Secretary under subsection (b).
(b) Performance Standards.--The Secretary shall establish uniform
performance standards for States receiving grants under this Act that
shall address the--
(1) utilization of all grant funds received under this Act;
(2) overall effective financial management of grant funds
received under this Act;
(3) number of families served by grant funds received under
this Act;
(4) quality of affordable housing subsidized by grant funds
received under this Act;
(5) overall reduction of homelessness, including
homelessness among veterans, within the State;
(6) improvement of living conditions for elderly and
disabled families;
(7) the effectiveness of voucher assistance in helping
families move toward homeownership and self-sufficiency; and
(8) the extent to which State or local governments remove
barriers to affordable housing.
(c) Performance Report.--
(1) In general.--Each State shall submit to the Secretary,
at a time and in a form determined by the Secretary, a report
detailing--
(A) the progress the State has made in carrying out
its strategy or plan under subsection (a); and
(B) the success of the State in meeting the
quantifiable objectives established by the State under
subsection (a).
(2) Additional information.--The report required under
paragraph (1) shall also set forth--
(A) the number of families and individuals
receiving tenant-based rental and homeownership housing
assistance under the State program;
(B) of those families reported under subparagraph
(A), the--
(i) number of families with children;
(ii) number of elderly families;
(iii) number of disabled families;
(iv) annual gross income of each family;
(v) sources of income of each family; and
(vi) changes in income and employment
status of each family;
(C) the total amount of housing assistance received
under this Act by all families reported under
subparagraph (A);
(D) the amount of grant funds distributed under
this Act that are spent on administrative fees;
(E) the poverty rates of neighborhoods in which
families receiving tenant-based homeownership and
housing assistance reside; and
(F) any other information on the use of Federal
assistance as the Secretary may prescribe.
(3) Sufficiency of report.--If a State fails to submit the
report required under this subsection to the Secretary in a
satisfactory and timely manner, the Secretary may take any
compliance action authorized under section 13(b) of this Act.
(4) Public disclosure.--The Secretary shall make available
to the public any report submitted to the Secretary under this
subsection.
(d) Alternative Administration.--
(1) In general.--If, at any time after September 30, 2004,
the Secretary determines that a State cannot administer grant
amounts in conformity with this Act, the Secretary shall--
(A) oversee all future disbursements of grant funds
within the State;
(B) require such modifications to the
administration of grant amounts within the State as the
Secretary deems necessary to bring the State into
conformity with this Act; or
(C) authorize the administration of grant funds by
1 or more public housing agencies or other entities.
(2) Applicability of law.--Any public housing agency or
other entity authorized to oversee the administration of grant
funds pursuant to paragraph (1)(C) shall be treated as a State
for purposes of this Act.
SEC. 7. ELIGIBLE FAMILIES.
(a) Initial Eligibility.--
(1) In general.--A family shall be eligible to receive
tenant-based rental and homeownership housing assistance if
that family--
(A) is not receiving assistance under section 8 of
the United States Housing Act of 1937 (42 U.S.C.
1437f); and
(B) does not have a gross income exceeding 80
percent of the median income for the area, as
determined by the Secretary with adjustments based upon
the size of the family, except that the Secretary may
establish income ceilings higher than 80 percent of the
median for the area for elderly and disabled families.
(2) New admissions.--
(A) In general.--In any fiscal year, not less than
75 percent of families receiving their first payment of
tenant-based rental and homeownership housing
assistance within a State shall have incomes that do
exceed 30 percent of the area median income, as
determined by the Secretary, with adjustments based
upon the size of each family.
(B) Waiver.--
(i) In general.--Any State desiring a
waiver of the income requirements in
subparagraph (A) shall submit to the Secretary
such evidence sufficient to allow for a finding
that the requirements cannot reasonably be met
during a particular fiscal year.
(ii) Modification.--In any fiscal year in
which a waiver of the income requirements is
granted, the Secretary shall modify the
requirements of subparagraph (A) to a level
that the State can reasonably attain.
(iii) Limitation.--The Secretary may grant
a waiver of the income requirements only to the
extent that not less than 55 percent of new
admissions in the State in any fiscal year have
incomes that do not exceed 30 percent of the
area median income.
(b) Continued Eligibility.--Subject to subsection (d), continued
eligibility for tenant-based housing and homeownership assistance shall
be determined in accordance with standards established--
(1) by the State in which the family resides; or
(2) in those instances in which the State does not
administer grant funds, by either the Secretary or the entity
responsible for the administration of such grant funds.
(c) Preferences.--In distributing grant funds, each State may
establish a uniform system that provides preference to families having
certain characteristics, including--
(1) working families;
(2) families currently receiving assistance under the
Temporary Assistance for Needy Families program authorized by
the Personal Responsibility and Work Opportunity Reconciliation
Act of 1996 (42 U.S.C. 601 et seq.);
(3) individuals at risk of chronic homelessness;
(4) families affected by the conversion, sale, or
demolition of public housing projects;
(5) families relocating from structures receiving project-
based assistance under section 8(o)(13) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)(13)); and
(6) veterans of the Armed Forces of the United States.
(d) Grandfathering Provision.--
(1) Section 8 tenant-based assistance; voucher
assistance.--Any family or entity receiving homeownership,
project-based certificate, project-based voucher assistance, or
tenant-based assistance under section 8(o) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)) as of the date of
enactment of this Act shall--
(A) for each of the fiscal years 2005 through 2009,
continue to receive such assistance subject to the
terms and conditions of that Act, from amounts made
available pursuant to section 14 of this Act; and
(B) for each of the fiscal years after 2009,
receive such assistance subject to the terms and
conditions of this Act.
(2) Insufficient funds.--If grant funds received by the
State pursuant to this Act are insufficient to fund all
currently assisted families pursuant to paragraph (1)(A), the
State shall make every effort to continue to provide assistance
to the same number of families currently receiving assistance
in the State.
(3) Conforming amendment.--Section 8(o) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(o)) is amended by
adding at the end the following:
``(20) Phase-out.--Any family or entity receiving
homeownership, project-based certificate, project-based
voucher, or tenant-based assistance (provided under this
subsection) shall, for fiscal year 2010 and each fiscal year
thereafter, receive such assistance only according to the terms
and conditions of the Housing Assistance for Needy Families Act
of 2003.''.
(e) Annual Review of Family Income.--Each State administering a
grant under this Act shall conduct an annual review of the family
income of each family receiving assistance under this Act, except that
the State shall be required to review the income of elderly families
every 3 years.
SEC. 8. AMOUNT OF ASSISTANCE.
(a) In General.--
(1) Administration.--Subject to subsections (b), (c), and
(d), the amount of any monthly assistance payment to a family
pursuant to this Act shall be determined by the State, or such
other entity responsible for administering such assistance.
(2) Minimum payments.--
(A) In general.--Except as provided in subsection
(b), no family residing in a dwelling unit that is
assisted with grant funds under this Act shall be
required at the time of entering the lease to pay more
than 30 percent of such family's gross monthly income
as rent (including the amount allowed for tenant-paid
utilities), or as homeownership expenses.
(B) Exception.--A family may choose to pay a
greater amount of its gross monthly income to secure
higher quality housing.
(b) Minimum Rental Amount.--
(1) In general.--Each State shall establish a minimum
monthly rental amount of $50 per month for any dwelling unit
assisted with grant funds under this Act.
(2) Hardship exemption.--A State may grant a hardship
exemption on a case-by-case basis.
(c) Reasonable Rent.--The rent for dwelling units assisted under
this Act shall be reasonable and appropriate in comparison with rents
charged for non-luxury dwelling units in the private, unassisted local
market.
(d) Maximum Subsidy.--States shall establish maximum subsidy levels
for housing assistance under this Act that are reasonable and
appropriate for the market area.
SEC. 9. AUTHORIZATION, ALLOCATION, AND DISTRIBUTION OF FUNDS.
(a) Allocations for Fiscal Years 2004 and 2005.--The Secretary
shall allocate amounts made available in an appropriations Act for
homeownership, project-based certificate, project-based voucher, or
tenant-based assistance under section 8(o) of the United States Housing
Act of 1937 (42 U.S.C. 1437f) as follows:
(1) Fiscal year 2004.--For fiscal year 2004, allocate to
public housing agencies under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f), except that the
Secretary may reallocate to a State, from public housing
agencies in the same State, any amounts made available under
such section 8 that are not being utilized by the end of that
fiscal year.
(2) Fiscal year 2005.--In fiscal year 2005, the Secretary
shall allocate to each State an amount that bears the same
ratio to the total amount available for assistance under this
Act for such fiscal year that the amount allocated in fiscal
year 2004 to public housing agencies within the State bears to
the total amount made available under this Act for fiscal year
2004.
(b) Base Allocations for Fiscal Year 2006 and Subsequent Fiscal
Years.--
(1) Establishment of formula.--Not later than 12 months
after the date of enactment of this Act, the Secretary shall,
by regulation, establish a formula allocating amounts available
for fiscal year 2006 and subsequent fiscal years for block
grants to States under this Act.
(2) Factors.--In establishing the formula under paragraph
(1), the Secretary shall consider factors reflecting the need
of low-income families in each State, including--
(A) the number of families receiving tenant-based
housing and homeownership assistance under this Act in
each State;
(B) the extent of poverty within the State;
(C) the cost of housing in the State or areas of
the State;
(D) the performance of the State in administering
grant amounts under this Act;
(E) the extent to which the State has available any
funds previously appropriated under this Act; and
(F) other objectively measurable criteria as the
Secretary may specify.
(3) Special provisions.--Subject to paragraph (4), for each
of the fiscal years 2006 through 2009, the formula established
under paragraph (1) shall provide that--
(A) for a fiscal year in which the amount
appropriated for block grants under this Act is equal
to or greater than the amount appropriated in fiscal
year 2005, the Secretary shall provide each State with
an allocation that is not less than the allocation that
the State received in fiscal year 2005 adjusted for
changes in housing costs in the preceding year, and for
the State's performance in using funds and executing
its plan or strategy under section 6(a); or
(B) for a fiscal year in which the total amount
made available to States for assistance under this Act
is less than the total amount made available to States
for fiscal year 2005, the amount provided to each State
for such fiscal year shall not be less than the amount
that bears the same ratio to the total amount available
for assistance under this Act for such fiscal year that
the amount provided to the State for fiscal year 2005
bears to the total amount made available to States for
fiscal year 2005 adjusted for changes in housing costs
in the preceding year and for the State's performance
in using funds and executing its plan or strategy under
section 6(a).
(4) Retention of funds; effect on allocation.--
(A) In general.--Beginning on September 30, 2005,
any amounts made available during a time determined by
the Secretary for housing assistance to any State that
exceed the amounts being utilized for housing
assistance by the end of the fiscal year shall be
identified and shall be retained by the State.
(B) Adjustment of allocation.--In calculating the
amount of assistance to allocate to a State in any
fiscal year following the 2005 fiscal year, the
Secretary shall reduce the amount that would otherwise
be allocated to that State pursuant to this paragraph
by the amounts identified in subparagraph (A).
(C) Performance adjustment.--In any fiscal year
following the 2005 fiscal year, subject to the
availability of appropriated amounts, and in addition
to amounts provided under the formula established under
paragraph (1), the Secretary shall allocate an amount
at least equal to the total amount of the reductions in
assistance made in such fiscal year pursuant to this
subparagraph to those States that have exceeded, as
determined by the Secretary, the performance standards
established by the Secretary under section 6(b).
(c) Tenant-Protection Assistance.--Subject to the availability of
appropriations, the Secretary shall allocate additional amounts to each
State for tenant-protection assistance as authorized by section 8(t) of
the United States Housing Act of 1937 (42 U.S.C. 1437f(t)) in fiscal
year 2005 and each fiscal year thereafter based on the number of
eligible tenants previously receiving such assistance in that State.
SEC. 10. ENVIRONMENTAL REVIEW.
For purposes of environmental review, a grant under this Act 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 (42 U.S.C. 3547), and shall be subject to the regulations
issued by the Secretary to implement such section.
SEC. 11. INSPECTION OF UNITS.
(a) In General.--The Secretary shall require that any State
administering grant funds under this Act inspect a dwelling unit prior
to the disbursement of those funds to determine whether the dwelling
unit meets the housing quality standards described in subsection (b).
(b) Housing Quality Standards.--All dwelling units in a State
receiving assistance under this Act shall meet--
(1) all applicable State and local housing quality
standards and code requirements; or
(2) if there are no such standards or code requirements,
housing quality standards established by the Secretary.
(c) Inspections.--Each State administering housing assistance
provided under this Act shall ensure that all dwelling units receiving
such assistance are maintained in accordance with the standards
described in subsection (b). Every dwelling unit in the State receiving
assistance under this Act shall be inspected not less than once every 3
years.
(d) Corrective Actions.--No assistance payment may be made pursuant
to this Act to a dwelling unit which fails to meet the standards
described in subsection (b).
SEC. 12. PORTABILITY.
(a) In General.--Any family receiving housing assistance pursuant
to this Act shall be eligible to receive assistance in any State in
which a program is being administered under this Act.
(b) Administration of Assistance.--Assistance for any family
relocating pursuant to subsection (a) shall be administered in
accordance with the provisions established pursuant to this Act in the
State to which the family moves.
SEC. 13. COMPLIANCE.
(a) Compliance Monitoring.--The Secretary may conduct such reviews
and audits as may be necessary to determine whether a State has--
(1) carried out the housing assistance activities and
objectives set forth in its plan under section 6(a) in a timely
or effective manner;
(2) carried out those activities and objectives, including
certifications, in accordance with the requirements of this Act
and other applicable laws;
(3) the capacity to continue to undertake those activities
in a timely and effective manner; and
(4) met the performance standards established by the
Secretary pursuant to section 6(b).
(b) Compliance Actions.--In addition to any other actions
authorized under this or any other Act, if the Secretary finds, after
notice and opportunity for a hearing, that a State receiving a grant
under this Act has failed to comply substantially with any provision of
this Act, including any performance standard established by the
Secretary pursuant to this Act, and until the Secretary is satisfied
that there is no longer any such failure to comply, the Secretary may--
(1) terminate grant payments under this Act to the State
and provide for alternative administration of such grant
amounts;
(2) withhold from the State amounts from the total
allocation that would otherwise be available to the State under
this Act;
(3) reduce the amount of future grants to the State by an
amount equal to the amount of such grants that were not
expended in accordance with this Act;
(4) limit the availability of grant amounts provided to the
State to programs and activities under this Act not affected by
such failure to comply;
(5) withhold from the State other amounts allocated for the
State under other programs administered by the Secretary;
(6) refer the matter to the Attorney General of the United
States with a recommendation that an appropriate civil action
be instituted; or
(7) order other corrective action with respect to the
State.
SEC. 14 AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as may be
necessary to carry out this Act for each of fiscal years 2004 through
2009.
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