[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8904 Introduced in House (IH)]
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118th CONGRESS
2d Session
H. R. 8904
To protect and empower residents of certain federally assisted rental
housing, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 28, 2024
Ms. Pressley (for herself, Ms. Waters, Ms. Tlaib, Ms. Omar, Ms.
Williams of Georgia, Mr. Nadler, Mr. McGovern, Ms. Velazquez, Mr.
Mfume, Mr. Garcia of Illinois, Mr. Davis of Illinois, and Mr. Frost)
introduced the following bill; which was referred to the Committee on
Financial Services
_______________________________________________________________________
A BILL
To protect and empower residents of certain federally assisted rental
housing, 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.
This Act may be cited as the ``Tenant Empowerment Act of 2024''.
SEC. 2. MAINTENANCE OF HOUSING.
(a) Project-Based Assistance.--Section 8(d) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(d)) is amended by adding at the
end the following new paragraphs:
``(7) Enforcement of Housing Standards Related to Physical
Condition of Property.--If the Secretary determines, upon any
inspection or management review for any multifamily housing project
covered by a housing assistance payments contract under this section,
that there are serious violations of housing standards applicable to
such project that are not corrected after reasonable notice, or any
other substantial or repeated violations of other program requirements,
including residents' right to organize, the Secretary shall take one or
more of the following actions in addition to other remedies allowed
under the contract:
``(A) Withhold all or part of the housing assistance
payments due under the contract.
``(B) Withhold any rent increases otherwise due.
``(C) Assume possession and management of the project and
take any actions necessary to correct the violations, including
using such withheld payments to effectuate repairs or to
reimburse others who make repairs.
``(D) Use such withheld payments to pay for utilities and
other services that are the responsibility of the owner under
the lease or applicable law.
``(8) Escrow of Tenant Rents.--
``(A) Withholding of rent.--If the Secretary determines,
pursuant to paragraph (7), that there are serious violations of
housing standards applicable to any multifamily housing project
covered by a housing assistance payments contract under this
section, including a failed physical inspection score, an
unsatisfactory management and occupancy review score, or a
notice of violation of right to organize regulations under
subpart B of part 245 of title 24, Code of Federal Regulations,
any tenants in assisted units in the project may withhold the
tenant contribution toward rent and pay such amount, when due,
into an escrow fund in accordance with procedures established
by the Secretary. If a tenant withholds the tenant contribution
toward rent in accordance with this paragraph, the Secretary
shall withhold all or part of the housing assistance payments
due under the contract for the unit until the violations are
remedied. If an owner has completed a purchase of multifamily
housing found in violation under this paragraph and commenced a
repair program to remediate these violations, tenants
exercising this right may negotiate a staged release of funds
held in escrow upon reaching measurable benchmarks as
established by the Secretary, including consultation with the
tenants of the property and any legitimate tenants'
association, as defined in subpart B of part 245 of title 24,
Code of Federal Regulations.
``(B) Repair and deduct.--Any tenant of a multifamily
housing project covered by a housing assistance payments
contract under this section may make payments from the tenant's
contribution toward rent, not to exceed the monthly gross rent
for the unit, to effectuate the cost of repairs or mitigation
to bring their unit into compliance with housing quality
standards, and to deduct the documented cost from their rent,
in accordance with procedures established by the Secretary.
``(C) Prohibition.--An owner of a project shall not evict
tenants for nonpayment of rent for exercising rights under this
paragraph.
``(D) Rule of construction.--Nothing in this paragraph
shall be construed to limit or pre-empt any stronger
protections which may exist under State or local law.
``(9) Protection of Tenants.--An owner of a multifamily housing
project covered by a housing assistance payments contract under this
subsection may not terminate the tenancy of any tenant because of the
withholding or abatement of assistance pursuant to this subsection.
During the period that assistance is abated pursuant to this
subsection, the tenant may terminate the tenancy by notifying the
owner.
``(10) Inspections Upon Request or Petition.--In addition to
periodic inspections by the Secretary, the Secretary shall conduct an
inspection or management review of any multifamily housing project
covered by a housing assistance payments contract under this section
when requested by the local government in which the project is located
or by a petition signed by not less than 25 percent of the tenants of
the occupied units in the project.''.
(b) PHA Project-Based Assistance.--Paragraph (13) of section 8(o)
of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) is
amended by adding at the end the following new subparagraph:
``(P) Maintenance of housing.--Paragraphs (7)
through (10) of subsection (d) of this section shall
apply with respect to a multifamily housing project
covered by a housing assistance payments contract under
this paragraph, except that in applying such
paragraphs--
``(i) the term `public housing agency'
shall be substituted for the term `Secretary';
and
``(ii) the term `contract under this
paragraph' shall be substituted for the term
`contract under this section'.''.
SEC. 3. RESIDENT ENFORCEMENT OF PROJECT OWNER AGREEMENTS WITH HUD AND
USDA.
(a) In General.--In each covered agreement, as such term is defined
in subsection (c), any resident, or resident association, of an
affected project shall be permitted to petition the appropriate
Secretary requesting enforcement of alleged serious violations of
housing standards that are not corrected after reasonable notice, or
any other substantial or repeated violations of other program
requirements, including the right of residents to organize.
(b) Judicial Relief.--If the appropriate Secretary, or the designee
of the appropriate Secretary, fails to issue a determination regarding
an enforcement request made pursuant to subsection (a), or if the
determination fails to provide the enforcement action requested within
90 days after receipt of the petition, the resident, or resident or
tenant association, may seek appropriate judicial relief in connection
with the alleged violation and enforcement of the covered agreement in
any forum of competent jurisdiction. In the case of any alleged
violation that threatens the health or safety of tenants, the time
period for making such a determination shall not exceed 15 days.
(c) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Appropriate secretary.--The term ``appropriate
Secretary'' means, with respect to a covered agreement, the
Secretary identified in paragraph (2).
(2) Covered agreement.--The term ``covered agreement''
means any--
(A) a contract between the Secretary of Housing and
Urban Development, a contract administrator, or any
public housing agency and an owner for project-based
housing assistance payments under section 8 of the
United States Housing Act of 1937 (42 U.S.C. 1437f);
(B) agreement under the Multifamily Assisted
Housing Reform and Affordability Act of 1997 (42 U.S.C.
1437f note) for--
(i) Mark-to-Market Restructuring
Commitments, section 8 rental assistance for a
project involving any action under section
517(b) or section 519 of such Act; or
(ii) Rehabilitation Escrow Deposit
Agreements for Mark-to-Market;
(C) contract for mortgage insurance executed by the
Secretary of Housing and Urban Development and any
owner or purchaser of a multifamily housing project;
(D) agreement with the Secretary of Agriculture in
connection with a loan for rural rental housing under
section 515 of the Housing Act of 1949 (42 U.S. C.
1485); or
(E) other Regulatory Agreements, Compliance
Agreements, Use Agreements, or similar contracts
between the appropriate Secretary and the owner that
establish housing quality requirements or affordability
restrictions.
(d) Regulations.--Within 180 days after the date of the enactment
of this Act, the each appropriate Secretary shall issue regulations
providing procedures for--
(1) receiving tenant petitions to enforce the terms of a
covered agreement;
(2) evaluating alleged violations of a covered agreement;
and
(3) providing notice to residents and resident
associations.
(e) Protection of Other Tenant Rights.--This section shall not be
construed to limit or replace the rights of residents to raise
grievances, appeal decisions, or make other claims provided under any
other provision of law.
SEC. 4. RESIDENT ACCESS TO BUILDING INFORMATION.
(a) Access to Information.--Upon a written request by a legitimate
residents association established with respect to a multifamily housing
property to which section 202 of the Housing and Community Development
Amendments of 1978 (12 U.S.C. 1715z-1b) applies, by or through its duly
appointed designee or representative, the Secretary of Housing and
Urban Development shall make available to such association, designee,
or representative, for the property represented by the association--
(1) information identifying the legal entities that own or
manage the subject property, including identification of
general partners and other principals;
(2) an annual operating statement of profit and loss of the
ownership and management entities identified in paragraph (1),
and their other current or former properties assisted by the
Department, including the history and current status of
mortgage assignments, defaults, foreclosures, or departmental
sanctions;
(3) any subsidy contracts and regulatory agreements, use
agreements, or other contracts referred to in section 3(c)(2)
of this Act between the ownership entities and the Department
of Housing and Urban Development, including correspondence
between such ownership entities and the Department for the
subject property;
(4) any management reviews, physical inspection reports,
and capital needs assessments of the subject property or
entities identified in paragraph (1) that are conducted by the
Department or a contractor of the Department; and
(5) an annual statement, prepared by the Department or a
contract administrator for the subject property, of the
balances of, and expenditures from, any replacement reserves
and other escrow funds for the property.
(b) Protection of Personal Information.--Subsection (a) shall not
be construed to require disclosure of Social Security numbers, personal
tax returns, or any other personal financial information of or
concerning individuals who have an interest in the ownership or
management entities referred to in subsection (a), including salaries
or wages of employees of such entities. In complying with the
requirements of subsection (a), the Secretary shall not disclose, and
shall redact, any information that identifies, or may be used to
identify, a resident of the multifamily housing property.
SEC. 5. FUNDING FOR TENANT AND OTHER PARTICIPATION AND CAPACITY
BUILDING.
Subparagraph (A) of section 514(f)(3) of the Multifamily Assisted
Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is
amended--
(1) by striking ``not more than'' and inserting ``not less
than'';
(2) in the first parenthetical clause, by inserting before
the closing parenthesis the following: ``, and predevelopment
assistance to enable such transfers'';
(3) by striking ``of low-income housing for which project-
based rental assistance is provided at below market rent levels
and may not be renewed (including transfer of developments to
tenant groups, nonprofit organizations, and public entities),
for tenant services'' and inserting the following: ``and
improvement of low-income housing for which project-based
rental assistance, public housing subsidies, low-income housing
tax credits, Federal or State subsidized loans, enhanced
vouchers under section 8(t), or project-based vouchers under
section 8(o) are provided or proposed''; and
(4) by inserting after the period at the end the following:
``For outreach and training of tenants and technical
assistance, the Secretary shall implement a grant program
utilizing performance-based outcome measures for eligible costs
incurred. Recipients providing capacity building or technical
assistance services to tenant groups shall be qualified
nonprofit State-wide, countywide, area-wide, or city-wide
organizations with demonstrated experience including at least a
two-year recent track record of organizing and providing
assistance to tenants, and independence from the owner, a
prospective purchaser, or their managing agents. The Secretary
may provide assistance and training to grantees in
administrative and fiscal management to ensure compliance with
applicable Federal requirements. The Secretary shall expedite
the provision of funding for the fiscal year in which the date
of the enactment of this Act occurs and by entering into an
interagency agreement for not less than $1,000,000 with the
Corporation for National and Community Service to conduct a
tenant outreach and training program to eligible housing under
this subsection. The Secretary shall also make available
flexible grants to qualified nonprofit organizations that do
not own eligible multifamily properties, for tenant outreach in
underserved areas, and to experienced national or regional
nonprofit organizations to provide specialized training or
support to grantees assisted under this section.
Notwithstanding any other provision of law, funds authorized
under this paragraph for any fiscal year shall be available for
obligation in subsequent fiscal years. The Secretary shall
require each recipient of amounts made available pursuant to
this subparagraph to submit to the Secretary reports, on a
quarterly basis, detailing the use of such funds and including
such information as the Secretary shall require.''.
SEC. 6. TENANT PARTICIPATION IN PHYSICAL INSPECTION AND MANAGEMENT
REVIEW PROCESSES.
In implementing any inspection requirements for ensuring decent,
safe, and sanitary conditions and any Management and Occupancy Reviews
in multifamily housing receiving project-based assistance under a
program administered by the Secretary of Housing and Urban Development,
the Secretary shall--
(1) encourage tenant participation--
(A) by requiring that the owner shall post notice
of any Department of Housing and Urban Development (in
this section referred to as ``HUD'') inspection,
including information about the inspection process,
contact information, and appeals to HUD, both before
and after the inspection, in common areas of the
property;
(B) by requiring that, after any inspection, the
owner shall post the property score in common areas of
the property and ensure that the full HUD inspection
report (but not including any personally identifiable
information for owners or residents) and related
correspondence is made available for inspection by
tenants and their representatives at the property where
they reside;
(C) by allowing any legitimate tenant organization,
prior to an inspection, to submit a report regarding
the property to the inspector and to HUD;
(D) by notifying and allowing any legitimate tenant
organization, upon request, to meet with and to
designate a representative to accompany the inspector
during the on-site inspection of common areas,
including grounds, hallways, lobbies, community, mail
and laundry rooms, and other common spaces accessible
to residents;
(E) by including in any HUD physical inspection up
to five additional units suggested by tenants or any
legitimate tenant organization;
(F) by providing notice, comment, and appeal rights
for tenants and any legitimate tenant organization
parallel to the notice, comment, and appeal rights
provided to owners; and
(G) by conducting a full or partial Management and
Occupancy Review upon the written request by at least
25 percent of residents or by any legitimate tenant
association at the property, for the issues identified
by residents;
(2) require inspectors to notate in their report potential
environmental hazards and unseen health and safety conditions
described by residents, management staff, or local agencies, or
as observed by the inspector;
(3) require HUD to provide for independent testing of
potential environmental hazards identified by HUD inspectors;
(4) require the Secretary to develop a remedial plan if
environmental hazards or health and safety conditions are
documented and to monitor the implementation of the remedial
plan;
(5) require HUD contract inspectors to review records and
consult with local code enforcement agencies regarding physical
conditions of a property prior to inspections, if the
locality's databases are accessible;
(6) review work order records in the management office of
the property to assess for response time and tenant
satisfaction; and
(7) require the Secretary to inspect for compliance with
any findings of exigent health and safety violations resulting
from HUD inspections.
SEC. 7. DUTY TO MAINTAIN HOUSING ASSISTANCE PAYMENTS DURING
FORECLOSURE.
(a) In General.--Notwithstanding any other provision of law, in
managing and disposing of any multifamily property that is owned or has
a mortgage held by the Secretary of Housing and Urban Development, and
during the process of foreclosure on any property with a contract for
rental assistance payments under section 8 of the United States Housing
Act of 1937 or any other program administered by the Secretary, the
Secretary shall maintain any rental assistance payments under section 8
of the United States Housing Act of 1937, and any other programs, that
are attached to any dwelling units in the property.
(b) Other Rental Assistance.-- To the extent the Secretary
determines, in consultation with the tenants and the local government,
that such a multifamily property owned or having a mortgage held by the
Secretary is not feasible for continued rental assistance payments
under such section 8 or other programs, based on consideration of (1)
the costs of rehabilitating and operating the property and all
available Federal, State, and local resources, including rent
adjustments under section 524 of the Multifamily Assisted Housing
Reform and Affordability Act of 1997 (42 U.S.C. 1437f note), and (2)
environmental conditions that cannot be remedied in a cost-effective
fashion, the Secretary may, in consultation with the tenants of that
property, contract for project-based rental assistance payments with an
owner or owners of other existing housing properties, or provide other
rental assistance.
(c) Project-Based Contracts.-- The Secretary shall take appropriate
steps to ensure that project-based contracts remain in effect prior to
foreclosure, subject to the exercise of contractual abatement remedies
to assist relocation of tenants for imminent major threats to health
and safety after written notice to and informed consent of the affected
tenants and use of other available remedies, such as partial abatements
or receivership.
(d) Rent Levels.--After disposition of any multifamily property
described under this section, the contract and allowable rent levels on
such properties shall be subject to the requirements under section 524
of the Multifamily Assisted Housing Reform and Affordability Act of
1997.
SEC. 8. CLARIFICATION OF TENANT PARTICIPATION IN MULTIFAMILY PROJECTS.
The last sentence of section 202(a) of the Housing and Community
Development Amendments of 1978 (12 U.S.C. 1715z-1b(a)) is amended by
inserting after ``(42 U.S.C. 1437f),'' the following: ``including a
project assisted under section 8(o)(13) (42 U.S.C. 1437f(o)(13)),''.
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