[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 3083 Introduced in Senate (IS)]
<DOC>
114th CONGRESS
2d Session
S. 3083
To provide housing opportunities in the United States through
modernization of various housing programs, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 22, 2016
Mr. Menendez (for himself, Mr. Scott, Mr. Coons, and Mr. Blunt)
introduced the following bill; which was read twice and referred to the
Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To provide housing opportunities in the United States through
modernization of various housing programs, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Housing
Opportunity Through Modernization Act of 2016''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
TITLE I--SECTION 8 RENTAL ASSISTANCE AND PUBLIC HOUSING
Sec. 101. Inspection of dwelling units.
Sec. 102. Income reviews.
Sec. 103. Limitation on public housing tenancy for over-income
families.
Sec. 104. Limitation on eligibility for assistance based on assets.
Sec. 105. Units owned by public housing agencies.
Sec. 106. PHA project-based assistance.
Sec. 107. Establishment of fair market rent.
Sec. 108. Collection of utility data.
Sec. 109. Public housing Capital and Operating Funds.
Sec. 110. Family unification program for children aging out of foster
care.
Sec. 111. Public housing heating guidelines.
Sec. 112. Use of vouchers for manufactured housing.
Sec. 113. Preference for United States citizens or nationals.
Sec. 114. Exception to public housing agency resident board member
requirement.
TITLE II--RURAL HOUSING
Sec. 201. Delegation of guaranteed rural housing loan approval.
Sec. 202. Guaranteed underwriting user fee.
TITLE III--FHA MORTGAGE INSURANCE FOR CONDOMINIUMS
Sec. 301. Modification of FHA requirements for mortgage insurance for
condominiums.
TITLE IV--HOUSING REFORMS FOR THE HOMELESS AND FOR VETERANS
Sec. 401. Definition of geographic area for Continuum of Care Program.
Sec. 402. Inclusion of public housing agencies and local redevelopment
authorities in emergency solutions grants.
Sec. 403. Special assistant for Veterans Affairs in the Department of
Housing and Urban Development.
Sec. 404. Annual supplemental report on veterans homelessness.
Sec. 405. Reopening of public comment period for Continuum of Care
Program regulations.
TITLE V--MISCELLANEOUS
Sec. 501. Inclusion of Disaster Housing Assistance Program in certain
fraud and abuse prevention measures.
Sec. 502. Energy efficiency requirements under Self-Help Homeownership
Opportunity Program.
Sec. 503. Data exchange standardization for improved interoperability.
TITLE VI--REPORTS
Sec. 601. Report on interagency family economic empowerment strategies.
TITLE VII--HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS
Sec. 701. Formula and terms for allocations to prevent homelessness for
individuals living with HIV or AIDS.
TITLE I--SECTION 8 RENTAL ASSISTANCE AND PUBLIC HOUSING
SEC. 101. INSPECTION OF DWELLING UNITS.
(a) In General.--Section 8(o)(8) of the United States Housing Act
of 1937 (42 U.S.C. 1437f(o)(8)) is amended--
(1) by striking subparagraph (A) and inserting the
following new subparagraph:
``(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).'';
(2) by redesignating subparagraph (G) as subparagraph (H);
and
(3) by inserting after subparagraph (F) the following new
subparagraph:
``(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 2 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.''.
(b) Effective Date.--The Secretary of Housing and Urban Development
shall issue notice or regulations to implement subsection (a) of this
section and such subsection shall take effect upon such issuance.
SEC. 102. INCOME REVIEWS.
(a) Income Reviews for Public Housing and Section 8 Programs.--
Section 3 of the United States Housing Act of 1937 (42 U.S.C. 1437a) is
amended--
(1) in subsection (a)--
(A) in the second sentence of paragraph (1), by
striking ``at least annually'' and inserting ``pursuant
to paragraph (6)''; and
(B) by adding at the end the following new
paragraphs:
``(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 3 months
of a certification period.
``(B) Fraud and abuse.--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 (42 U.S.C. 601 et seq.), a program for
Medicaid assistance under a State plan approved under
title XIX of the Social Security Act (42 U.S.C. 1396 et
seq.), 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.'';
(2) by striking subsections (d) and (e); and
(3) by redesignating subsection (f) as subsection (d).
(b) Certification Regarding Hardship Exception to Minimum Monthly
Rent.--Not later than 6 months after the date of enactment of this Act,
the Secretary of Housing and Urban Development shall submit to Congress
a certification that the hardship and tenant protection provisions of
section 3(a)(3)(B)(i) of the United States Housing Act of 1937 (42
U.S.C. 1437a(a)(3)(B)(i)) are being enforced at such time and that the
Secretary will continue to provide due consideration to the hardship
circumstances of persons assisted under relevant programs of this Act.
(c) Income; Adjusted Income.--Section 3(b) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)) is amended by striking
paragraphs (4) and (5) and inserting the following:
``(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
paragraph.
``(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.''.
(d) Housing Choice Voucher Program.--Section 8(o) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(o)) is amended--
(1) in paragraph (1)(D), by inserting before the period at
the end the following: ``, 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 2
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''; and
(2) in paragraph (5)--
(A) in the paragraph heading, by striking ``Annual
review'' and inserting ``Reviews'';
(B) in subparagraph (A)--
(i) by striking ``the provisions of'' and
inserting ``paragraphs (1), (6), and (7) of
section 3(a) and to''; and
(ii) by striking ``and shall be conducted''
and all that follows through the end of the
subparagraph and inserting a period; and
(C) in subparagraph (B), by striking the second
sentence.
(e) Enhanced Voucher Program.--Section 8(t)(1)(D) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(D)) is amended by
striking ``income'' each place such term appears and inserting ``annual
adjusted income''.
(f) Project-Based Housing.--Section 8(c)(3) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(c)(3)) is amended by striking the
last sentence.
(g) Impact on Public Housing Revenues.--
(1) Adjustments to operating formula.--If the Secretary of
Housing and Urban Development determines that the application
of subsections (a) through (e) of this section results in a
material and disproportionate reduction in the rental income of
certain public housing agencies during the first year in which
such subsections are implemented, the Secretary may make
appropriate adjustments in the formula income for such year of
those agencies experiencing such a reduction.
(2) HUD reports on revenue and cost impact.--In each of the
first 2 years after the first year in which subsections (a)
through (e) are implemented, the Secretary of Housing and Urban
Development shall submit a report to Congress identifying and
calculating the impact of changes made by such subsections and
section 104 of this Act on the revenues and costs of operating
public housing units, the voucher program for rental assistance
under section 8 of the United States Housing Act of 1937 (42
U.S.C. 1437f), and the program under such section 8 for
project-based rental assistance. If such report identifies a
material reduction in the net income of public housing agencies
nationwide or a material increase in the costs of funding the
voucher program or the project-based assistance program, the
Secretary shall include in such report recommendations for
legislative changes to reduce or eliminate such a reduction.
(h) Effective Date.--The Secretary of Housing and Urban Development
shall issue notice or regulations to implement this section and this
section shall take effect after such issuance, except that this section
may only take effect upon the commencement of a calendar year.
(i) Study on Impact on Elderly and Disabled Families of Decreased
Deductions in Income.--
(1) Study.--The Secretary of Housing and Urban Development
shall conduct a study to determine the impacts, on rents paid
by elderly and disabled individuals and families assisted under
the section 8 rental assistance and public housing programs
under the United States Housing Act of 1937 (42 U.S.C. 1437 et
seq.), of any decreases in the amounts of any deductions from
income (for purposes of section 3(b) of such Act (42 U.S.C.
1437a(b))), as compared to such deductions under such section
3(b) as in effect before the effectiveness of this section,
resulting from the amendments made by this section.
(2) Report.--The Secretary shall submit to the Congress a
report setting forth the results of the study conducted
pursuant to paragraph (1) not later than 1 year after the date
of enactment of this Act.
(3) Effective date.--Notwithstanding subsection (h) of this
section, this subsection shall take effect on the date of
enactment of this Act.
SEC. 103. 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 (D), 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 pursuant to section
3(a)(6), has exceeded the applicable income limitation
under subparagraph (C), the public housing agency
shall--
``(i) notwithstanding any other provision
of this Act, charge such family as monthly rent
for the unit occupied by such family an amount
equal to the greater of--
``(I) the applicable fair market
rental established under section 8(c)
for a dwelling unit in the same market
area of the same size; or
``(II) the amount of the monthly
subsidy provided under this Act for the
dwelling unit, which shall include any
amounts from the Operating Fund and
Capital Fund under section 9 used for
the unit, as determined by the agency
in accordance with regulations that the
Secretary shall issue to carry out this
subclause; or
``(ii) terminate the tenancy of such family
in public housing not later than 6 months after
the income determination described in
subparagraph (A).
``(B) 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 (C), upon the conclusion of such
year the public housing agency shall provide written
notice to such family of the requirements under
subparagraph (A).
``(C) 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, except that the Secretary may establish
income limitations higher or lower than 120 percent of
such median income 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, vacancy rates, or rental
costs.
``(D) Exception.--Subparagraph (A) shall not apply
to a family occupying a dwelling unit in public housing
pursuant to section 3(a)(5).
``(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 (C); and
``(II) the number of families, as
of the end of such year, on the waiting
lists for admission to public housing
projects of the agency; and
``(ii) make the information reported
pursuant to clause (i) publicly available.''.
SEC. 104. 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 of this Act;
``(ii) any person who 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' 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. Such term 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. 3403(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 and
the flush language of section 1102 of such Act (12
U.S.C. 3404(a)(3) and 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.''.
SEC. 105. UNITS OWNED BY PUBLIC HOUSING AGENCIES.
Section 8(o)(11) of the United States Housing Act of 1937 (42
U.S.C. 1437f(o)(11)) is amended--
(1) by striking ``(11) Leasing of units owned by pha.--If''
and inserting the following:
``(11) Leasing of units owned by pha.--
``(A) Inspections and rent determinations.--If'';
and
(2) by adding at the end the following:
``(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.''.
SEC. 106. PHA PROJECT-BASED ASSISTANCE.
(a) In General.--Section 8(o)(13) of the United States Housing Act
of 1937 (42 U.S.C. 1437f(o)(13)) is amended--
(1) by striking ``structure'' each place such term appears
and inserting ``project'';
(2) by striking subparagraph (B) and inserting the
following:
``(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, 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). The Secretary may,
by regulation, establish additional categories
for the exception under this clause.'';
(3) by striking subparagraph (D) and inserting the
following:
``(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 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
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.'';
(4) by striking subparagraph (F) and inserting the
following:
``(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.'';
(5) in subparagraph (G), by striking ``15 years'' and
inserting ``20 years'';
(6) by striking subparagraph (I) and inserting the
following:
``(I) Rent adjustments.--A housing assistance
payments contract pursuant to this paragraph entered
into after the date of 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 (42 U.S.C. 1437f
note) (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.'';
(7) in subparagraph (J)--
(A) in the first sentence--
(i) by striking ``shall'' and inserting
``may''; and
(ii) by inserting before the period the
following: ``or may permit owners to select
applicants from site-based waiting lists as
specified in this subparagraph'';
(B) by striking the third sentence and inserting
the following: ``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.''; and
(C) by striking the fifth and sixth sentences and
inserting the following: ``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
(42 U.S.C. 2000d et seq.), the Fair Housing Act (42
U.S.C. 3601 et seq.), section 504 of the Rehabilitation
Act of 1973 (29 U.S.C. 794), 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.'';
(8) in subparagraph (M)(ii), by inserting before the period
at the end the following: ``relating to funding other than
housing assistance payments''; and
(9) by adding at the end the following:
``(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.''.
(b) Effective Date.--The Secretary of Housing and Urban Development
shall issue notice or regulations to implement subsection (a) of this
section and such subsection shall take effect upon such issuance.
SEC. 107. ESTABLISHMENT OF FAIR MARKET RENT.
(a) In General.--Section 8(c)(1) of the United States Housing Act
of 1937 (42 U.S.C. 1437f(c)(1)) is amended--
(1) by inserting ``(A)'' after ``(1)'';
(2) by striking the fourth, seventh, eighth, and ninth
sentences; and
(3) by adding at the end the following:
``(B) Fair market rentals for an area shall be published not less
than annually by the Secretary on the website of the Department of
Housing and Urban Development 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.''.
(b) Payment Standard.--Section 8(o)(1)(B) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)(1)(B)) is amended by inserting
before the period at the end the following: ``, 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) Effective Date.--The amendments made by this section shall take
effect upon the date of the enactment of this Act.
SEC. 108. COLLECTION OF UTILITY DATA.
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) 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.''.
SEC. 109. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.
(a) Capital Fund Replacement Reserves.--Section 9 of the United
States Housing Act of 1937 (42 U.S.C. 1437g) is amended--
(1) in subsection (j), by adding at the end the following:
``(7) Treatment of replacement reserve.--The requirements
of this subsection shall not apply to funds held in replacement
reserves established pursuant to subsection (n).''; and
(2) by adding at the end the following:
``(n) Establishment of Replacement Reserves.--
``(1) In general.--Public housing agencies shall be
permitted to establish a replacement reserve to fund any of the
capital activities listed in subsection (d)(1).
``(2) Source and amount of funds for replacement reserve.--
At any time, a public housing agency may deposit funds from
such agency's Capital Fund into a replacement reserve, subject
to the following:
``(A) At the discretion of the Secretary, public
housing agencies may transfer and hold in a replacement
reserve funds originating from additional sources.
``(B) No minimum transfer of funds to a replacement
reserve shall be required.
``(C) At any time, a public housing agency may not
hold in a replacement reserve more than the amount the
public housing authority has determined necessary to
satisfy the anticipated capital needs of properties in
its portfolio assisted under this section, as outlined
in its Capital Fund 5-Year Action Plan, or a comparable
plan, as determined by the Secretary.
``(D) The Secretary may establish, by regulation, a
maximum replacement reserve level or levels that are
below amounts determined under subparagraph (C), which
may be based upon the size of the portfolio assisted
under this section or other factors.
``(3) Transfer of operating funds.--In first establishing a
replacement reserve, the Secretary may allow public housing
agencies to transfer more than 20 percent of its operating
funds into its replacement reserve.
``(4) Expenditure.--Funds in a replacement reserve may be
used for purposes authorized by subsection (d)(1) and contained
in its Capital Fund 5-Year Action Plan.
``(5) Management and report.--The Secretary shall establish
appropriate accounting and reporting requirements to ensure
that public housing agencies are spending funds on eligible
projects and that funds in the replacement reserve are
connected to capital needs.''.
(b) Flexibility of Operating Fund Amounts.--Section 9(g)(1) of the
United States Housing Act of 1937 (42 U.S.C. 1437g(g)(1)) is amended--
(1) by striking ``(1)'' and all that follows through ``--
Of'' and inserting the following:
``(1) Flexibility in use of funds.--
``(A) Flexibility for capital fund amounts.--Of'';
and
(2) by adding at the end the following:
``(B) Flexibility for operating fund amounts.--Of
any amounts appropriated for fiscal year 2016 or any
fiscal year thereafter that are allocated for fiscal
year 2016 or any fiscal year thereafter from the
Operating Fund for any public housing agency, the
agency may use not more than 20 percent for activities
that are eligible under subsection (d) for assistance
with amounts from the Capital Fund, but only if the
public housing plan under section 5A for the agency
provides for such use.''.
SEC. 110. FAMILY UNIFICATION PROGRAM FOR CHILDREN AGING OUT OF FOSTER
CARE.
Section 8(x) of the United States Housing Act of 1937 (42 U.S.C.
1437f(x)) is amended--
(1) in paragraph (2)(B)--
(A) by striking ``18 months'' and inserting ``36
months'';
(B) by striking ``21 years of age'' and inserting
``24 years of age''; and
(C) by inserting after ``have left foster care''
the following: ``, or will leave foster care within 90
days, in accordance with a transition plan described in
section 475(5)(H) of the Social Security Act (42 U.S.C.
675(5)(H)), and is homeless or is at risk of becoming
homeless'';
(2) by redesignating paragraph (4) as paragraph (5); and
(3) by inserting after paragraph (3) the following:
``(4) Coordination between public housing agencies and
public child welfare agencies.--The Secretary shall, not later
than 180 days after the date of enactment of the Housing
Opportunity Through Modernization Act of 2016 and after
consultation with other appropriate Federal agencies, issue
guidance to improve coordination between public housing
agencies and public child welfare agencies in carrying out the
program under this subsection, which shall provide guidance
on--
``(A) identifying eligible recipients for
assistance under this subsection;
``(B) coordinating with other local youth and
family providers in the community and participating in
the Continuum of Care program established under
subtitle C of title IV of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11381 et seq.);
``(C) implementing housing strategies to assist
eligible families and youth;
``(D) aligning system goals to improve outcomes for
families and youth and reducing lapses in housing for
families and youth; and
``(E) identifying resources that are available to
eligible families and youth to provide supportive
services available through parts B and E of title IV of
the Social Security Act (42 U.S.C. 621 et seq. and 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).''.
SEC. 111. PUBLIC HOUSING HEATING GUIDELINES.
Section 9 of the United States Housing Act of 1937 (42 U.S.C.
1437g), as amended by this Act, is amended by adding at the end the
following:
``(o) Public Housing Heating Guidelines.--The Secretary shall
publish model guidelines for minimum heating requirements for public
housing dwelling units operated by public housing agencies receiving
assistance under this section.''.
SEC. 112. USE OF VOUCHERS FOR MANUFACTURED HOUSING.
(a) In General.--Section 8(o)(12) of the United States Housing Act
of 1937 (42 U.S.C. 1437f(o)(12)) is amended--
(1) in subparagraph (A), by striking the period at the end
of the first sentence and all that follows through ``of'' in
the second sentence and inserting ``and rents''; and
(2) in subparagraph (B)--
(A) in clause (i), by striking ``the rent'' and all
that follows and inserting the following: ``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.'';
(B) by striking clause (ii);
(C) by redesignating clause (iii) as clause (ii);
and
(D) in clause (ii), as so redesignated, by
inserting after the period at the end the following:
``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.''.
(b) Effective Date.--The Secretary of Housing and Urban Development
shall issue notice to implement the amendments made by subsection (a)
and such amendments shall take effect upon such issuance.
SEC. 113. PREFERENCE FOR UNITED STATES CITIZENS OR NATIONALS.
Section 214(a)(7) of the Housing and Community Development Act of
1980 (42 U.S.C. 1436a(a)(7)) is amended by striking ``any such alien''
and all that follows through the period at the end and inserting ``any
citizen or national of the United States shall be entitled to a
preference or priority in receiving financial assistance before any
such alien who is otherwise eligible for assistance.''.
SEC. 114. EXCEPTION TO PUBLIC HOUSING AGENCY RESIDENT BOARD MEMBER
REQUIREMENT.
Section 2(b) of the United States Housing Act of 1937 (42 U.S.C.
1437(b)) is amended--
(1) in paragraph (1), by striking ``paragraph (2)'' and
inserting ``paragraphs (2) and (3)'';
(2) by redesignating paragraph (3) as paragraph (4); and
(3) by inserting after paragraph (2) the following new:
``(3) Exception for certain jurisdictions.--
``(A) Exception.--A covered agency (as such term is
defined in subparagraph (C)) shall not be required to
include on the board of directors or a similar
governing board of such agency a member described in
paragraph (1).
``(B) Advisory board requirement.--Each covered
agency that administers Federal housing assistance
under section 8 that chooses not to include a member
described in paragraph (1) on the board of directors or
a similar governing board of the agency shall establish
an advisory board of not less than 6 residents of
public housing or recipients of assistance under
section 8 to provide advice and comment to the agency
or other administering entity on issues related to
public housing and assistance provided under section 8.
Such advisory board shall meet not less than quarterly.
``(C) Covered agency or entity.--For purposes of
this paragraph, the term `covered agency' means a
public housing agency or such other entity that
administers Federal housing assistance for--
``(i) the Housing Authority of the county
of Los Angeles, California; or
``(ii) any of the States of Alaska, Iowa,
and Mississippi.''.
TITLE II--RURAL HOUSING
SEC. 201. DELEGATION OF GUARANTEED RURAL HOUSING LOAN APPROVAL.
Section 502(h) of the Housing Act of 1949 (42 U.S.C. 1472(h)) is
amended by adding at the end the following:
``(18) Delegation of approval.--The Secretary may delegate,
in part or in full, the Secretary's authority to approve and
execute binding Rural Housing Service loan guarantees pursuant
to this subsection to certain preferred lenders, in accordance
with standards established by the Secretary.''.
SEC. 202. GUARANTEED UNDERWRITING USER FEE.
Section 502 of the Housing Act of 1949 (42 U.S.C. 1472) is amended
by adding at the end the following:
``(i) Guaranteed Underwriting User Fee.--
``(1) Authority; maximum amount.--The Secretary may assess
and collect a fee for a lender to access the automated
underwriting systems of the Department in connection with such
lender's participation in the single family loan program under
this section and only in an amount necessary to cover the costs
of information technology enhancements, improvements,
maintenance, and development for automated underwriting systems
used in connection with the single family loan program under
this section, except that such fee shall not exceed $50 per
loan.
``(2) Crediting; availability.--Any amounts collected from
such fees shall be credited to the Rural Development Expense
Account as offsetting collections and shall remain available
until expended, in the amounts provided in appropriation Acts,
solely for expenses described in paragraph (1).''.
TITLE III--FHA MORTGAGE INSURANCE FOR CONDOMINIUMS
SEC. 301. MODIFICATION OF FHA REQUIREMENTS FOR MORTGAGE INSURANCE FOR
CONDOMINIUMS.
Section 203 of the National Housing Act (12 U.S.C. 1709) is amended
by adding at the end the following:
``(y) Requirements for Mortgages for Condominiums.--
``(1) Project recertification requirements.--
Notwithstanding any other law, regulation, or guideline of the
Secretary, including chapter 2.4 of the Condominium Project
Approval and Processing Guide of the Federal Housing
Administration, the Secretary shall streamline the project
certification requirements that are applicable to the insurance
under this section for mortgages for condominium projects so
that recertifications are substantially less burdensome than
certifications. The Secretary shall consider lengthening the
time between certifications for approved properties, and
allowing updating of information rather than resubmission.
``(2) Commercial space requirements.--Notwithstanding any
other law, regulation, or guideline of the Secretary, including
chapter 2.1.3 of the Condominium Project Approval and
Processing Guide of the Federal Housing Administration, in
providing for exceptions to the requirement for the insurance
of a mortgage on a condominium property under this section
regarding the percentage of the floor space of a condominium
property that may be used for nonresidential or commercial
purposes, the Secretary shall provide that--
``(A) any request for such an exception and the
determination of the disposition of such request may be
made, at the option of the requester, under the direct
endorsement lender review and approval process or under
the HUD review and approval process through the
applicable field office of the Department; and
``(B) in determining whether to allow such an
exception for a condominium property, factors relating
to the economy for the locality in which such project
is located or specific to project, including the total
number of family units in the project, shall be
considered.
Not later than 90 days after the date of enactment of this
paragraph, the Secretary shall issue regulations to implement
this paragraph, which shall include any standards, training
requirements, and remedies and penalties that the Secretary
considers appropriate.
``(3) Transfer fees.--Notwithstanding any other law,
regulation, or guideline of the Secretary, including chapter
1.8.8 of the Condominium Project Approval and Processing Guide
of the Federal Housing Administration and section 203.41 title
24, Code of Federal Regulations, existing standards of the
Federal Housing Finance Agency relating to encumbrances under
private transfer fee covenants shall apply to the insurance of
mortgages by the Secretary under this section to the same
extent and in the same manner that such standards apply to the
purchasing, investing in, and otherwise dealing in mortgages by
the Federal National Mortgage Association and the Federal Home
Loan Mortgage Corporation. If the provisions of part 1228 of
title 12, Code of Federal Regulations, are amended or otherwise
changed after the date of enactment of this paragraph, the
Secretary shall adopt any such amendments or changes for
purposes of this paragraph, unless the Secretary causes to be
published in the Federal Register a notice explaining why the
Secretary will disregard such amendments or changes within 90
days after the effective date of such amendments or changes.
``(4) Owner-occupancy requirement.--
``(A) Establishment of percentage requirement.--Not
later than 90 days after the date of enactment of this
paragraph, the Secretary shall, by rule, notice, or
mortgagee letter, issue guidance regarding the
percentage of units that must be occupied by the owners
as a principal residence or a secondary residence (as
such terms are defined by the Secretary), or must have
been sold to owners who intend to meet such occupancy
requirements, including justifications for the
percentage requirements, in order for a condominium
project to be acceptable to the Secretary for insurance
under this section of a mortgage within such
condominium property.
``(B) Failure to act.--If the Secretary fails to
issue the guidance required under subparagraph (A)
before the expiration of the 90-day period specified in
such subparagraph, the following provisions shall
apply:
``(i) 35-percent requirement.--In order for
a condominium project to be acceptable to the
Secretary for insurance under this section, at
least 35 percent of all family units (including
units not covered by mortgages insured by the
Federal Housing Administration) must be
occupied by the owners as a principal residence
or a secondary residence (as such terms are
defined by the Secretary), or must have been
sold to owners who intend to meet such
occupancy requirement.
``(ii) Other considerations.--The Secretary
may increase the percentage applicable pursuant
to clause (i) to a condominium project on a
project-by-project or regional basis, and in
determining such percentage for a project shall
consider factors relating to the economy for
the locality in which such project is located
or specific to project, including the total
number of family units in the project.''.
TITLE IV--HOUSING REFORMS FOR THE HOMELESS AND FOR VETERANS
SEC. 401. DEFINITION OF GEOGRAPHIC AREA FOR CONTINUUM OF CARE PROGRAM.
(a) Definition.--Subtitle C of title IV of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11360 et seq.) is amended--
(1) by redesignating sections 432 and 433 (42 U.S.C. 11387
and 11388) as sections 433 and 434, respectively; and
(2) by inserting after section 431 (42 U.S.C. 11386e) the
following:
``SEC. 432. GEOGRAPHIC AREAS.
``(a) Requirement To Define.--For purposes of this subtitle, the
term `geographic area' shall have such meaning as the Secretary shall
by notice provide.
``(b) Issuance of Notice.--Not later than 90 days after the date of
enactment of the Housing Opportunity Through Modernization Act of 2016,
the Secretary shall issue a notice setting forth the definition
required by subsection (a).''.
(b) Clerical Amendment.--The table of contents in section 101(b) of
the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301 note) is
amended by striking the items relating to sections 432 and 433 and
inserting the following:
``Sec. 432. Geographic areas.
``Sec. 433. Regulations.
``Sec. 434. Reports to Congress.''.
SEC. 402. INCLUSION OF PUBLIC HOUSING AGENCIES AND LOCAL REDEVELOPMENT
AUTHORITIES IN EMERGENCY SOLUTIONS GRANTS.
Section 414(c) of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11373(c)) is amended--
(1) in the subsection heading, by inserting ``, Public
Housing Agencies, and Local Redevelopment Authorities'' after
``Organizations''; and
(2) in the first sentence, by inserting before the period
at the end the following: ``, to public housing agencies (as
defined under section 3(b)(6) of the United States Housing Act
of 1937 (42 U.S.C. 1437a(b)(6))), or to local redevelopment
authorities (as defined under State law)''.
SEC. 403. SPECIAL ASSISTANT FOR VETERANS AFFAIRS IN THE DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT.
(a) Transfer of Position to Office of the Secretary.--Section 4 of
the Department of Housing and Urban Development Act (42 U.S.C. 3533) is
amended by adding at the end the following:
``(h) Special Assistant for Veterans Affairs.--
``(1) Position.--There shall be in the Office of the
Secretary a Special Assistant for Veterans Affairs, who shall
report directly to the Secretary.
``(2) Appointment.--The Special Assistant for Veterans
Affairs shall be appointed based solely on merit and shall be
covered under the provisions of title 5, United States Code,
governing appointments in the competitive service.
``(3) Responsibilities.--The Special Assistant for Veterans
Affairs shall be responsible for--
``(A) ensuring veterans have fair access to housing
and homeless assistance under each program of the
Department providing either such assistance;
``(B) coordinating all programs and activities of
the Department relating to veterans;
``(C) serving as a liaison for the Department with
the Department of Veterans Affairs, including
establishing and maintaining relationships with the
Secretary of Veterans Affairs;
``(D) serving as a liaison for the Department, and
establishing and maintaining relationships with the
United States Interagency Council on Homelessness and
officials of State, local, regional, and
nongovernmental organizations concerned with veterans;
``(E) providing information and advice regarding--
``(i) sponsoring housing projects for
veterans assisted under programs administered
by the Department; or
``(ii) assisting veterans in obtaining
housing or homeless assistance under programs
administered by the Department;
``(F) coordinating with the Secretary of Housing
and Urban Development and the Secretary of Veterans
Affairs in carrying out section 404 of the Housing
Opportunity Through Modernization Act of 2016;
``(G) collaborating with the Department of Veterans
Affairs on making joint recommendations to Congress,
the Secretary, and the Secretary of Veterans Affairs on
how to better coordinate and improve services to
veterans under both Department and Department of
Veteran Affairs veterans housing programs, including
ways to improve the Independent Living Program of the
Department of Veteran Affairs; and
``(H) carrying out such other duties as may be
assigned to the Special Assistant by the Secretary or
by law.''.
(b) Transfer of Position in Office of Deputy Assistant Secretary
for Special Needs.--On the date that the initial Special Assistant for
Veterans Affairs is appointed pursuant to section 4(h)(2) of the
Department of Housing and Urban Development Act, as added by subsection
(a) of this section, the position of Special Assistant for Veterans
Programs in the Office of the Deputy Assistant Secretary for Special
Needs of the Department of Housing and Urban Development shall be
terminated.
SEC. 404. ANNUAL SUPPLEMENTAL REPORT ON VETERANS HOMELESSNESS.
(a) In General.--The Secretary of Housing and Urban Development and
the Secretary of Veterans Affairs, in coordination with the United
States Interagency Council on Homelessness, shall submit annually to
the Committees of the Congress specified in subsection (b), together
with the annual reports required by such Secretaries under section
203(c)(1) of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11313(c)(1)), a supplemental report that includes the following
information with respect to the preceding year:
(1) The same information, for such preceding year, that was
included with respect to 2010 in the report by the Secretary of
Housing and Urban Development and the Secretary of Veterans
Affairs entitled ``Veterans Homelessness: A Supplemental Report
to the 2010 Annual Homeless Assessment Report to Congress''.
(2) Information regarding the activities of the Department
of Housing and Urban Development relating to veterans during
such preceding year, as follows:
(A) The number of veterans provided assistance
under the housing choice voucher program for Veterans
Affairs supported housing under section 8(o)(19) of the
United States Housing Act of 1937 (42 U.S.C.
1437f(o)(19)), the socioeconomic characteristics of
such homeless veterans, and the number, types, and
locations of entities contracted under such section to
administer the vouchers.
(B) A summary description of the special
considerations made for veterans under public housing
agency plans submitted pursuant to section 5A of the
United States Housing Act of 1937 (42 U.S.C. 1437c-1)
and under comprehensive housing affordability
strategies submitted pursuant to section 105 of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12705).
(C) A description of the activities of the Special
Assistant for Veterans Affairs of the Department of
Housing and Urban Development.
(D) A description of the efforts of the Department
of Housing and Urban Development and the other members
of the United States Interagency Council on
Homelessness to coordinate the delivery of housing and
services to veterans.
(E) The cost to the Department of Housing and Urban
Development of administering the programs and
activities relating to veterans.
(F) Any other information that the Secretary of
Housing and Urban Development and the Secretary of
Veterans Affairs consider relevant in assessing the
programs and activities of the Department of Housing
and Urban Development relating to veterans.
(b) Committees.--The Committees of the Congress specified in this
subsection are as follows:
(1) The Committee on Banking, Housing, and Urban Affairs of
the Senate.
(2) The Committee on Veterans' Affairs of the Senate.
(3) The Committee on Appropriations of the Senate.
(4) The Committee on Financial Services of the House of
Representatives.
(5) The Committee on Veterans' Affairs of the House of
Representatives.
(6) The Committee on Appropriations of the House of
Representatives.
SEC. 405. REOPENING OF PUBLIC COMMENT PERIOD FOR CONTINUUM OF CARE
PROGRAM REGULATIONS.
Not later than 30 days after the date of enactment of this Act, the
Secretary of Housing and Urban Development shall re-open the period for
public comment regarding the Secretary's interim rule entitled
``Homeless Emergency Assistance and Rapid Transition to Housing:
Continuum of Care Program'' (77 Fed. Reg. 45422; July 31, 2012). Upon
re-opening, such comment period shall remain open for a period of not
less than 60 days.
TITLE V--MISCELLANEOUS
SEC. 501. INCLUSION OF DISASTER HOUSING ASSISTANCE PROGRAM IN CERTAIN
FRAUD AND ABUSE PREVENTION MEASURES.
The Disaster Housing Assistance Program administered by the
Department of Housing and Urban Development shall be considered a
``program of the Department of Housing and Urban Development'' under
section 904 of the Stewart B. McKinney Homeless Assistance Amendments
Act of 1988 (42 U.S.C. 3544) for the purpose of income verifications.
SEC. 502. ENERGY EFFICIENCY REQUIREMENTS UNDER SELF-HELP HOMEOWNERSHIP
OPPORTUNITY PROGRAM.
Section 11 of the Housing Opportunity Program Extension Act of 1996
(42 U.S.C. 12805 note) is amended by inserting after subsection (f) the
following:
``(g) Energy Efficiency Requirements.--The Secretary may not
require any dwelling developed using amounts from a grant made under
this section to meet any energy efficiency standards other than the
standards applicable at such time pursuant to section 109 of the
Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12709) to
housing specified in subsection (a) of such section.''.
SEC. 503. DATA EXCHANGE STANDARDIZATION FOR IMPROVED INTEROPERABILITY.
(a) Data Exchange Standardization.--Title I of the United States
Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at
the end the following:
``SEC. 37. DATA EXCHANGE STANDARDS FOR IMPROVED INTEROPERABILITY.
``(a) Designation.--The Secretary shall, in consultation with an
interagency work group established by the Office of Management and
Budget, and considering State government perspectives, designate data
exchange standards to govern, under this Act--
``(1) necessary categories of information that State
agencies operating related programs are required under
applicable law to electronically exchange with another State
agency; and
``(2) Federal reporting and data exchange required under
applicable law.
``(b) Requirements.--The data exchange standards required by
subsection (a) shall, to the maximum extent practicable--
``(1) incorporate a widely accepted, nonproprietary,
searchable, computer-readable format, such as the eXtensible
Markup Language;
``(2) contain interoperable standards developed and
maintained by intergovernmental partnerships, such as the
National Information Exchange Model;
``(3) incorporate interoperable standards developed and
maintained by Federal entities with authority over contracting
and financial assistance;
``(4) be consistent with and implement applicable
accounting principles;
``(5) be implemented in a manner that is cost- effective
and improves program efficiency and effectiveness; and
``(6) be capable of being continually upgraded as
necessary.
``(c) Rules of Construction.--Nothing in this section requires a
change to existing data exchange standards for Federal reporting found
to be effective and efficient.''.
(b) Applicability.--
(1) In general.--Not later than 2 years after the date of
enactment of this Act, the Secretary of Housing and Urban
Development shall issue a proposed rule to carry out the
amendments made by subsection (a).
(2) Requirements.--The rule described in paragraph (1)
shall--
(A) identify federally required data exchanges;
(B) include specification and timing of exchanges
to be standardized;
(C) address the factors used in determining whether
and when to standardize data exchanges;
(D) specify State implementation options; and
(E) describe future milestones.
TITLE VI--REPORTS
SEC. 601. REPORT ON INTERAGENCY FAMILY ECONOMIC EMPOWERMENT STRATEGIES.
The Secretary of Housing and Urban Development, in consultation
with the Secretary of Labor, shall submit to Congress an annual report
that describes--
(1) any interagency strategies of such Departments that are
designed to improve family economic empowerment by linking
housing assistance with essential supportive services, such as
employment counseling and training, financial education and
growth, childcare, transportation, meals, youth recreational
activities, and other supportive services; and
(2) any actions taken in the preceding year to carry out
such strategies and the extent of progress achieved by such
actions.
TITLE VII--HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS
SEC. 701. FORMULA AND TERMS FOR ALLOCATIONS TO PREVENT HOMELESSNESS FOR
INDIVIDUALS LIVING WITH HIV OR AIDS.
(a) In General.--Section 854(c) of the AIDS Housing Opportunity Act
(42 U.S.C. 12903(c)) is amended by--
(1) redesignating paragraph (3) as paragraph (5); and
(2) striking paragraphs (1) and (2) and inserting the
following:
``(1) Allocation of resources.--
``(A) Allocation formula.--The Secretary shall
allocate 90 percent of the amount approved in
appropriations Acts under section 863 among States and
metropolitan statistical areas as follows:
``(i) 75 percent of such amounts among--
``(I) cities that are the most
populous unit of general local
government in a metropolitan
statistical area with a population
greater than 500,000, as determined on
the basis of the most recent census,
and with more than 2,000 individuals
living with HIV or AIDS, using the data
specified in subparagraph (B); and
``(II) States with more than 2,000
individuals living with HIV or AIDS
outside of metropolitan statistical
areas.
``(ii) 25 percent of such amounts among
States and metropolitan statistical areas based
on the method described in subparagraph (C).
``(B) Source of data.--For purposes of allocating
amounts under this paragraph for any fiscal year, the
number of individuals living with HIV or AIDS shall be
the number of such individuals as confirmed by the
Director of the Centers for Disease Control and
Prevention, as of December 31 of the most recent
calendar year for which such data is available.
``(C) Allocation method.--For purposes of
allocating amounts under subparagraph (A)(ii), the
Secretary shall develop a method that accounts for--
``(i) differences in housing costs among
States and metropolitan statistical areas based
on the fair market rental established pursuant
to section 8(c) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(c)) or another
methodology established by the Secretary
through regulation; and
``(ii) differences in poverty rates among
States and metropolitan statistical areas based
on area poverty indexes or another methodology
established by the Secretary through
regulation.
``(2) Maintaining grants.--
``(A) Continued eligibility of fiscal year 2016
grantees.--A grantee that received an allocation in
fiscal year 2016 shall continue to be eligible for
allocations under paragraph (1) in subsequent fiscal
years, subject to--
``(i) the amounts available from
appropriations Acts under section 863;
``(ii) approval by the Secretary of the
most recent comprehensive housing affordability
strategy for the grantee approved under section
105; and
``(iii) the requirements of subparagraph
(C).
``(B) Adjustments.--Allocations to grantees
described in subparagraph (A) shall be adjusted
annually based on the administrative provisions
included in fiscal year 2016 appropriations Acts.
``(C) Redetermination of continued eligibility.--
The Secretary shall redetermine the continued
eligibility of a grantee that received an allocation in
fiscal year 2016 at least once during the 10-year
period following fiscal year 2016.
``(D) Adjustment to grants.--For each of fiscal
years 2017, 2018, 2019, 2020, and 2021, the Secretary
shall ensure that a grantee that received an allocation
in the prior fiscal year does not receive an allocation
that is 5 percent less than or 10 percent greater than
the amount allocated to such grantee in the preceding
fiscal year.
``(3) Alternative grantees.--
``(A) Requirements.--The Secretary may award funds
reserved for a grantee eligible under paragraph (1) to
an alternative grantee if--
``(i) the grantee submits to the Secretary
a written agreement between the grantee and the
alternative grantee that describes how the
alternative grantee will take actions
consistent with the applicable comprehensive
housing affordability strategy approved under
section 105 of this Act;
``(ii) the Secretary approves the written
agreement described in clause (I) and agrees to
award funds to the alternative grantee; and
``(iii) the written agreement does not
exceed a term of 10 years.
``(B) Renewal.--An agreement approved pursuant to
subparagraph (A) may be renewed by the parties with the
approval of the Secretary.
``(C) Definition.--In this paragraph, the term
`alternative grantee' means a public housing agency (as
defined in section 3(b)(6) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(b)(6))), a unified funding
agency (as defined in section 401 of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11360)), a State, a
unit of general local government, or an instrumentality
of State or local government.
``(4) Reallocations.--If a State or metropolitan
statistical area declines an allocation under paragraph (1)(A),
or the Secretary determines, in accordance with criteria
specified in regulation, that a State or metropolitan
statistical area that is eligible for an allocation under
paragraph (1)(A) is unable to properly administer such
allocation, the Secretary shall reallocate any funds reserved
for such State or metropolitan statistical area as follows:
``(A) For funds reserved for a State--
``(i) to eligible metropolitan statistical
areas within the State on a pro rata basis; or
``(ii) if there is no eligible metropolitan
statistical areas within a State, to
metropolitan cities and urban counties within
the State that are eligible for grant under
section 106 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5306), on a
pro rata basis.
``(B) For funds reserved for a metropolitan
statistical area, to the State in which the
metropolitan statistical area is located.
``(C) If the Secretary is unable to make a
reallocation under subparagraph (A) or (B), the
Secretary shall make such funds available on a pro rata
basis under the formula in paragraph (1)(A).''.
(b) Amendment to Definitions.--Section 853 of the AIDS Housing
Opportunity Act (42 U.S.C. 12902) is amended--
(1) in paragraph (1), by inserting ``or `AIDS''' before
``means''; and
(2) by adding at the end the following:
``(15) The term `HIV' means infection with the human
immunodeficiency virus.
``(16) The term `individuals living with HIV or AIDS'
means, with respect to the counting of cases in a geographic
area during a period of time, the sum of--
``(A) the number of living non-AIDS cases of HIV in
the area; and
``(B) the number of living cases of AIDS in the
area.''.
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