[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 2935 Introduced in Senate (IS)]
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114th CONGRESS
2d Session
S. 2935
To limit the availability of public housing for over-income families.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
May 17, 2016
Mr. Flake (for himself and Mr. Coats) introduced the following bill;
which was read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
A BILL
To limit the availability of public housing for over-income families.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``End Housing Subsidies for the Rich
Act of 2016''.
SEC. 2. LIMITATION ON PUBLIC HOUSING TENANCY FOR OVER-INCOME FAMILIES.
Section 16(a) of the United States Housing Act of 1937 (42 U.S.C.
1437n(a)) is amended by adding at the end the following:
``(5) Limitations on tenancy for over-income families.--
``(A) Limitations.--Except as provided in
subparagraph (B), in the case of any family residing in
a dwelling unit of public housing whose income for the
most recent 2 consecutive years, as determined pursuant
to income reviews conducted under section 3(a)(1), has
exceeded the applicable income limitation under
subparagraph (D), the public housing agency shall
terminate the tenancy of the family in public housing
not later than 6 months after the income determination.
``(B) Exception.--A family described in
subparagraph (A) may continue to occupy the dwelling
unit of public housing on a month-to-month basis if--
``(i) the public housing agency charges the
family as monthly rent for the dwelling unit an
amount equal the applicable fair market rental
established under section 8(c) for a dwelling
unit in the same market area of the same size;
and
``(ii) 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.
``(C) Notice.--In the case of any family residing
in a dwelling unit of public housing whose income for a
year has exceeded the applicable income limitation
under subparagraph (D), upon the conclusion of that
year the public housing agency shall provide written
notice to the family of the requirements under
subparagraph (A).
``(D) Income limitation.--The income limitation
under this subparagraph shall be 120 percent of the
median income for the area, as determined by the
Secretary with adjustments for smaller and larger
families.
``(E) Reports on over-income families and waiting
lists.--The Secretary shall require that each public
housing agency shall--
``(i) submit a report annually, in a format
required by the Secretary, that specifies--
``(I) the number of families
residing, as of the end of the year for
which the report is submitted, in
public housing administered by the
agency who had incomes exceeding the
applicable income limitation under
subparagraph (D); and
``(II) the number of families, as
of the end of the year for which the
report is submitted year, on the
waiting lists for admission to public
housing dwelling units of the agency;
and
``(ii) make the information reported
pursuant to clause (i) publicly available.''.
SEC. 3. LIMITATION ON ELIGIBILITY FOR ASSISTANCE BASED ON ASSETS.
Section 16 of the United States Housing Act of 1937 (42 U.S.C.
1437n) is amended by inserting after subsection (d) the following:
``(e) Eligibility for Assistance Based on Assets.--
``(1) Limitation on assets.--Subject to paragraph (3) and
notwithstanding any other provision of this Act, a dwelling
unit assisted under this Act may not be rented and assistance
under this Act may not be provided, either initially or at each
recertification of family income, to any family--
``(A) whose net family assets exceed $100,000, as
such amount is adjusted annually by applying an
inflationary factor as the Secretary considers
appropriate; or
``(B) who has a present ownership interest in, a
legal right to reside in, and the effective legal
authority to sell, real property that is suitable for
occupancy by the family as a residence, except that the
prohibition under this subparagraph shall not apply
to--
``(i) any property for which the family is
receiving assistance under subsection (y) or
(o)(12) of section 8;
``(ii) any person that is a victim of
domestic violence; or
``(iii) any family that is offering such
property for sale.
``(2) Net family assets.--
``(A) In general.--For purposes of this subsection,
the term `net family assets'--
``(i) means, for all members of the
household, the net cash value of all assets
after deducting reasonable costs that would be
incurred in disposing of real property,
savings, stocks, bonds, and other forms of
capital investment; and
``(ii) does not include interests in Indian
trust land, equity in property for which the
family is receiving assistance under subsection
(y) or (o)(12) of section 8, equity accounts in
homeownership programs of the Department of
Housing and Urban Development, or Family Self
Sufficiency accounts.
``(B) Exclusions.--Such term does not include--
``(i) the value of personal property,
except for items of personal property of
significant value, as the Secretary may
establish or the public housing agency may
determine;
``(ii) the value of any retirement account;
``(iii) real property for which the family
does not have the effective legal authority
necessary to sell such property;
``(iv) any amounts recovered in any civil
action or settlement based on a claim of
malpractice, negligence, or other breach of
duty owed to a member of the family and arising
out of law, that resulted in a member of the
family being disabled;
``(v) the value of 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;
and
``(vi) such other exclusions as the
Secretary may establish.
``(C) Trust funds.--In cases in which a trust fund
has been established and the trust is not revocable by,
or under the control of, any member of the family or
household, the value of the trust fund shall not be
considered an asset of a family if the fund continues
to be held in trust. Any income distributed from the
trust fund shall be considered income for purposes of
section 3(b) and any calculations of annual family
income, except in the case of medical expenses for a
minor.
``(3) Self-certification.--
``(A) Net family assets.--A public housing agency
or owner may determine the net assets of a family, for
purposes of this section, based on a certification by
the family that the net assets of such family do not
exceed $50,000, as such amount is adjusted annually by
applying an inflationary factor as the Secretary
considers appropriate.
``(B) No current real property ownership.--A public
housing agency or owner may determine compliance with
paragraph (1)(B) based on a certification by the family
that such family does not have any current ownership
interest in any real property at the time the agency or
owner reviews the family's income.
``(C) Standardized forms.--The Secretary may
develop standardized forms for the certifications
referred to in subparagraphs (A) and (B).
``(4) Compliance for public housing dwelling units.--When
recertifying family income with respect to families residing in
public housing dwelling units, a public housing agency may, in
the discretion of the agency and only pursuant to a policy that
is set forth in the public housing agency plan under section 5A
for the agency, choose not to enforce the limitation under
paragraph (1).
``(5) Enforcement.--When recertifying the income of a
family residing in a dwelling unit assisted under this Act, a
public housing agency or owner may choose not to enforce the
limitation under paragraph (1) or may establish exceptions to
such limitation based on eligibility criteria, but only
pursuant to a policy that is set forth in the public housing
agency plan under section 5A for the agency or under a policy
adopted by the owner. Eligibility criteria for establishing
exceptions may provide for separate treatment based on family
type and may be based on different factors, such as age,
disability, income, the ability of the family to find suitable
alternative housing, and whether supportive services are being
provided.
``(6) Authority to delay evictions.--In the case of a
family residing in a dwelling unit assisted under this Act who
does not comply with the limitation under paragraph (1), the
public housing agency or project owner may delay eviction or
termination of the family based on such noncompliance for a
period of not more than 6 months.
``(7) Verifying income.--
``(A) Beginning in fiscal year 2018, the Secretary
shall require public housing agencies to require each
applicant for, or recipient of, benefits under this Act
to provide authorization by the applicant or recipient
(or by any other person whose income or resources are
material to the determination of the eligibility of the
applicant or recipient for such benefits) for the
public housing agency to obtain (subject to the cost
reimbursement requirements of section 1115(a) of the
Right to Financial Privacy Act (12 U.S.C. 3415(a)))
from any financial institution (within the meaning of
section 1101(1) of such Act (12 U.S.C. 3401(1))) any
financial record (within the meaning of section 1101(2)
of such Act (12 U.S.C. 3401(2))) held by the
institution with respect to the applicant or recipient
(or any such other person) whenever the public housing
agency determines the record is needed in connection
with a determination with respect to such eligibility
or the amount of such benefits.
``(B) Notwithstanding section 1104(a)(1) of the
Right to Financial Privacy Act (12 U.S.C. 3404(a)(1)),
an authorization provided by an applicant or recipient
(or any other person whose income or resources are
material to the determination of the eligibility of the
applicant or recipient) pursuant to subparagraph (A) of
this paragraph shall remain effective until the
earliest of--
``(i) the rendering of a final adverse
decision on the applicant's application for
eligibility for benefits under this Act;
``(ii) the cessation of the recipient's
eligibility for benefits under this Act; or
``(iii) the express revocation by the
applicant or recipient (or such other person
referred to in subparagraph (A)) of the
authorization, in a written notification to the
Secretary.
``(C)(i) An authorization obtained by the public
housing agency pursuant to this paragraph shall be
considered to meet the requirements of the Right to
Financial Privacy Act for purposes of section 1103(a)
of such Act (12 U.S.C. 3403(a)), and need not be
furnished to the financial institution, notwithstanding
section 1104(a) of such Act (12 U.S.C. 3404(a)).
``(ii) The certification requirements of section
1103(b) of the Right to Financial Privacy Act (12
U.S.C. 3404(b)) shall not apply to requests by the
public housing agency pursuant to an authorization
provided under this clause.
``(iii) A request by the public housing agency
pursuant to an authorization provided under this clause
is deemed to meet the requirements of section
1104(a)(3) of the Right to Financial Privacy Act (12
U.S.C. 3404(a)(3)) and the flush language of section
1102 of such Act (12 U.S.C. 3402).
``(iv) The public housing agency shall inform any
person who provides authorization pursuant to this
paragraph of the duration and scope of the
authorization.
``(D) If an applicant for, or recipient of,
benefits under this Act (or any such other person
referred to in subparagraph (A)) refuses to provide, or
revokes, any authorization made by the applicant or
recipient for the public housing agency to obtain from
any financial institution any financial record, the
public housing agency may, on that basis, determine
that the applicant or recipient is ineligible for
benefits under this title.''.
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