[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 890 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 890
To increase the number of landlords participating in the Housing Choice
Voucher program.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
March 6, 2025
Mr. Coons (for himself, Ms. Smith, Mr. Warnock, Mr. Moran, Mr. Curtis,
and Mr. Heinrich) introduced the following bill; which was read twice
and referred to the Committee on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To increase the number of landlords participating in the Housing Choice
Voucher program.
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 ``Choice in Affordable Housing Act of
2025''.
SEC. 2. DEFINITIONS.
In this Act--
(1) the term ``Housing Choice Voucher program'' means the
tenant-based assistance program under section 8(o) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(o));
(2) the term ``Secretary'' means the Secretary of Housing
and Urban Development; and
(3) the term ``Tribal Housing and Urban Development-
Veterans Affairs Supportive Housing program'' means the
demonstration program established under paragraph (5) under the
heading ``tenant-based rental assistance'' under the heading
``Public and Indian Housing'' in title II of division K of the
Consolidated and Further Continuing Appropriations Act, 2015
(Public Law 113-235; 128 Stat. 2732) (commonly known as
``Tribal HUD-VASH'').
SEC. 3. FINDINGS.
Congress finds the following:
(1) The Housing Choice Voucher program is the Federal
Government's largest program helping low-income families, the
elderly, and persons with disabilities to afford decent, safe,
and sanitary housing in the private market.
(2) The Housing Choice Voucher program is proven to have
positive impacts on voucher holders, including increased
housing stability, reduced homelessness, and children lifted
out of poverty.
(3) As a public-private partnership, the Housing Choice
Voucher program relies on the willingness of private landlords
to accept vouchers.
(4) Landlord participation is declining in the Housing
Choice Voucher program, with an average of 10,000 housing
providers leaving the program each year between 2010 and 2016.
(5) Landlord participation is especially lacking in ``high-
opportunity neighborhoods'' that have low poverty rates and
good access to quality schools, jobs, and public
transportation.
(6) The Secretary has conducted and continues to conduct
research on landlord participation in the Housing Choice
Voucher program.
(7) The Moving to Work demonstration program of the
Department of Housing and Urban Development has given
participating public housing agencies the ability to test
innovative strategies to incentivize landlords to accept
vouchers.
(8) Indian Tribes and tribally designated housing entities,
which do not participate in the Housing Choice Voucher program,
benefit from the Tribal Housing and Urban Development-Veterans
Affairs Supportive Housing program, which provides rental
assistance to Native American veterans who are experiencing or
at risk of experiencing homelessness.
SEC. 4. SENSE OF CONGRESS.
It is the sense of Congress that the Housing Choice Voucher program
should be improved to increase the number of landlords, particularly
landlords with units in high-opportunity neighborhoods, who accept
vouchers in order to expand housing choice and opportunity, and further
fair housing.
SEC. 5. INCENTIVIZING LANDLORD PARTICIPATION IN HOUSING CHOICE VOUCHER
PROGRAM.
(a) One-Time Incentive Payments.--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:
``(23) One-time incentive payments.--
``(A) Definition.--In this paragraph, the term
`eligible unit' means a dwelling unit that--
``(i) is located in a census tract with a
poverty rate of less than 20 percent; and
``(ii) has not previously been subject to a
housing assistance payment contract under this
subsection.
``(B) Incentive payment authority.--
``(i) In general.--To incentivize landlords
who own dwelling units in low-poverty areas to
enter into housing assistance payment contracts
under this subsection, the Secretary shall
provide assistance under this paragraph to
public housing agencies to be used to offer a
one-time payment directly to the owner of an
eligible unit entering into a housing
assistance payment contract with the public
housing agency for the eligible unit.
``(ii) Amount.--The amount of an incentive
payment made to an eligible owner under clause
(i) may not exceed 200 percent of the monthly
housing assistance payment made to the eligible
owner for the eligible unit.
``(iii) Conditions permitted.--Subject to
paragraph (7), a public housing agency may
require the owner of an eligible unit, as a
condition of receiving an incentive payment
under clause (i), to commit to lease the
eligible unit to tenants assisted under this
subsection for more than 1 year.
``(iv) Limit.--The owner of an eligible
unit may not receive more than 1 incentive
payment under clause (i), regardless of--
``(I) the number of eligible units
owned by the owner; or
``(II) the number of public housing
agencies with which the owner has
entered into housing assistance payment
contracts.''.
(b) Security Deposit Payments.--Section 8(o) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)), as amended by subsection (a),
is amended by adding at the end the following:
``(24) Security deposit payments.--
``(A) Security deposit payment authority.--The
Secretary shall provide assistance to public housing
agencies to be used to pay the owner of a dwelling unit
assisted under this subsection for a security deposit,
or a substantial portion thereof, on behalf of the
tenant of the dwelling unit in accordance with
subparagraph (B).
``(B) Minimum pha requirements.--A public housing
agency that receives assistance from the Secretary
under subparagraph (A) shall administer the assistance
in accordance with the following conditions:
``(i) The public housing agency shall pay
the owners of dwelling units assisted under
this subsection for a security deposit, or a
substantial portion thereof, in an amount
determined by the public housing agency, on
behalf of the tenants of the dwelling units.
``(ii) In making payments to owners of
dwelling units under clause (i), the public
housing agency shall give priority to owners of
dwelling units occupied by extremely low-income
families.
``(iii) The owner of a dwelling unit may
deduct amounts from a security deposit payment
received under clause (i) to cover damages
beyond normal wear and tear caused by the
tenant of the dwelling unit, any member of the
tenant's household, or any guest or other
person under the tenant's control.
``(iv) The public housing agency shall
conduct a damage claims process whereby--
``(I) in order to deduct amounts
from a security deposit payment
received under clause (i), the owner of
a covered dwelling unit must submit a
claim to the public housing agency with
an itemized list of damages and
evidence and request reimbursement; and
``(II) the tenant of a covered
dwelling unit may refute a claim
submitted under subclause (I).
``(v) The public housing agency shall--
``(I) establish an amount of repair
costs for which a tenant will be
responsible; and
``(II) notify a tenant, upon the
tenant entering into a lease for a
dwelling unit assisted under this
subsection, of the amount described in
subclause (I).
``(vi) The public housing agency may
determine what action to take if a tenant
demonstrates an inability to pay the amount of
repair costs for which the tenant is
responsible under clause (v).
``(vii) At the end of a tenant's occupancy
of a dwelling unit assisted under this
subsection, the landlord shall return to the
public housing agency any unused amount of a
security deposit payment received under clause
(i).
``(C) Rule of construction.--Nothing in
subparagraph (B) shall be construed to prohibit a
public housing agency from establishing additional
conditions for the administration of assistance
received under subparagraph (A) in accordance with
applicable State and local laws.''.
(c) Landlord Liaison Bonus Payments.--Section 8(o) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(o)), as amended by
subsection (b), is amended by adding at the end the following:
``(25) Landlord liaison bonus payments.--
``(A) In general.--Each year, the Secretary shall
award 1 bonus payment to each public housing agency
that employs, contracts with a service partner that
employs, or demonstrates an intent to employ or
contract with a service partner that employs, not less
than 1 dedicated landlord liaison whose duties include,
with respect to the tenant-based assistance program
under subsection (o)--
``(i) conducting landlord outreach,
recruitment, and retention;
``(ii) educating and training landlords
regarding the program; and
``(iii) operating a phone hotline, online
portal, monitored email address, or other
mechanism designated by the Secretary for
landlord questions and concerns regarding the
program.
``(B) Demonstrating compliance.--The Secretary
shall determine how a public housing agency may
demonstrate that it offers or intends to offer a
landlord liaison service for purposes of subparagraph
(A).
``(C) Amount.--The Secretary shall establish an
amount for the landlord liaison bonus payment
authorized under subparagraph (A) that--
``(i) may vary by region;
``(ii) does not exceed the 150 percent of
the average cost of employing, or contracting
with a service partner that employs, such a
landlord liaison, based on local market
conditions; and
``(iii) is sufficient to incentivize public
housing agencies to employ, or contact with a
service partner that employs, such a landlord
liaison.''.
(d) Housing Partnership Fund.--Section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f) is amended by adding at the end
the following:
``(ee) Herschel Lashkowitz Housing Partnership Fund.--
``(1) Establishment.--The Secretary shall establish a fund,
to be known as the `Herschel Lashkowitz Housing Partnership
Fund', for the purpose of incentivizing landlords to
participate in the tenant-based assistance program under
subsection (o) in accordance with paragraph (2) of this
subsection.
``(2) Authorized uses.--The Secretary shall use amounts
from the Housing Partnership Fund for--
``(A) incentive payments under subsection (o)(23);
``(B) security deposit payments under subsection
(o)(24);
``(C) landlord liaison bonus payments under
subsection (o)(25); and
``(D) other uses, as determined by a public housing
agency and approved by the Secretary, designed
primarily--
``(i) to recruit owners of dwelling units,
particularly dwelling units in census tracts
with a poverty rate of less than 20 percent, to
enter into housing assistance payment contracts
under subsection (o); and
``(ii) to ensure that owners that enter
into housing assistance payment contracts as
described in clause (i) of this subparagraph
continue to lease their dwelling units to
tenants assisted under subsection (o).
``(3) Reports.--The Secretary shall require a public
housing agency that receives assistance from the Herschel
Lashkowitz Housing Partnership Fund to submit an annual report
to the Secretary on the use of the assistance.
``(4) Authorization of additional appropriations.--There is
authorized to be appropriated for deposit in the Herschel
Lashkowitz Housing Partnership Fund $100,000,000 for each of
fiscal years 2025 through 2029, to remain available until
expended.''.
SEC. 6. TRIBAL HUD-VASH AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to the Secretary of Housing
and Urban Development $7,000,000 for each of fiscal years 2025 through
2029 for the Tribal Housing and Urban Development-Veterans Affairs
Supportive Housing program.
SEC. 7. HOUSING QUALITY STANDARDS.
(a) Satisfaction of Inspection Requirements Through Participation
in Other Housing Programs.--Section 8(o)(8) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)(8)), as amended by section
101(a) of the Housing Opportunity Through Modernization Act of 2016
(Public Law 114-201; 130 Stat. 783), is amended by adding at the end
the following:
``(I) Satisfaction of inspection requirements
through participation in other housing programs.--
``(i) Low-income housing tax credit-
financed buildings.--A dwelling unit shall be
deemed to meet the inspection requirements
under this paragraph if--
``(I) the dwelling unit is in a
building, the acquisition,
rehabilitation, or construction of
which was financed by a person who
received a low-income housing tax
credit under section 42 of the Internal
Revenue Code of 1986 in exchange for
that financing;
``(II) the dwelling unit was
physically inspected and passed
inspection as part of the low-income
housing tax credit program described in
subclause (I) during the preceding 12-
month period; and
``(III) the applicable public
housing agency is able to obtain the
results of the inspection described in
subclause (II).
``(ii) HOME investment partnerships
program.--A dwelling shall be deemed to meet
the inspection requirements under this
paragraph if--
``(I) the dwelling unit is assisted
under the HOME Investment Partnerships
Program under title II of the Cranston-
Gonzalez National Affordable Housing
Act (42 U.S.C. 12721 et seq.);
``(II) the dwelling unit was
physically inspected and passed
inspection as part of the program
described in subclause (I) during the
preceding 12-month period; and
``(III) the applicable public
housing agency is able to obtain the
results of the inspection described in
subclause (II).
``(iii) Rural housing service.--A dwelling
unit shall be deemed to meet the inspection
requirements under this paragraph if--
``(I) the dwelling unit is assisted
by the Rural Housing Service of the
Department of Agriculture;
``(II) the dwelling unit was
physically inspected and passed
inspection in connection with the
assistance described in subclause (I)
during the preceding 12-month period;
and
``(III) the applicable public
housing agency is able to obtain the
results of the inspection described in
subclause (II).
``(iv) Rule of construction.--Nothing in
clause (i), (ii), or (iii) shall be construed
to affect the operation of a housing program
described in, or authorized under a provision
of law described in, that clause.''.
(b) Pre-Approval of Units.--Section 8(o)(8)(A) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)(8)(A)) is amended by adding at
the end the following:
``(iv) Initial inspection prior to lease
agreement.--
``(I) Definition.--In this clause,
the term `new landlord' means an owner
of a dwelling unit who has not
previously entered into a housing
assistance payment contract with a
public housing agency under this
subsection for any dwelling unit.
``(II) Early inspection.--Upon the
request of a new landlord, a public
housing agency may inspect the dwelling
unit owned by the new landlord to
determine whether the unit meets the
housing quality standards under
subparagraph (B) before the unit is
selected by a tenant assisted under
this subsection.
``(III) Effect.--An inspection
conducted under subclause (II) that
determines that the dwelling unit meets
the housing quality standards under
subparagraph (B) shall satisfy this
subparagraph and subparagraph (C) if
the new landlord enters into a lease
agreement with a tenant assisted under
this subsection not later than 60 days
after the date of the inspection.
``(IV) Information when family is
selected.--When a public housing agency
selects a family to participate in the
tenant-based assistance program under
this subsection, the public housing
agency shall include in the information
provided to the family a list of
dwelling units that have been inspected
under subclause (II) and determined to
meet the housing quality standards
under subparagraph (B).''.
SEC. 8. SMALL AREA FAIR MARKET RENT.
(a) Use of Small Area Fair Market Rent.--Section 8(o)(1) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(o)(1)) is amended by
adding at the end the following:
``(F) Small area fair market rent.--
``(i) Definitions.--In this subparagraph--
``(I) the term `metropolitan area'
means a metropolitan statistical area,
as defined by the Office of Management
and Budget; and
``(II) the term `small area fair
market rent' means the fair market rent
established for a ZIP Code area within
a metropolitan area.
``(ii) Use of small area fair market
rent.--Notwithstanding subsection (c) or any
other provision of this subsection, not later
than 3 years after the date of enactment of
this subparagraph, the Secretary shall
designate a number of metropolitan areas in
which public housing agencies are required to
use the small area fair market rent to
determine the fair market rental for dwelling
units for purposes of tenant-based assistance
under this subsection that is not less than 3
times the number of metropolitan areas so
designated in the final rule of the Secretary
entitled `Establishing a More Effective Fair
Market Rent System; Using Small Area Fair
Market Rents in the Housing Choice Voucher
Program Instead of the Current 50th Percentile
FMRs', published in the Federal Register on
November 16, 2016 (81 Fed. Reg. 80567).
``(iii) Hold harmless.--If the application
of clause (ii) would cause a decrease in the
payment standard used to calculate the amount
of tenant-based assistance provided to a family
under this subsection, a public housing agency
shall continue to use the existing higher
payment standard to calculate the amount of
such assistance for the family for as long as
the family continues to receive such assistance
in the same dwelling unit.''.
(b) Conforming Amendment.--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
after ``subsection (c)'' the following: ``(subject to subparagraph (F)
of this paragraph)''.
SEC. 9. SECTION 8 MANAGEMENT ASSESSMENT PROGRAM.
(a) Definition.--In this section, the term ``Section 8 Management
Assessment Program'' means the program set forth in part 985 of title
24, Code of Federal Regulations (or any successor regulation).
(b) Deconcentration of Participating Dwelling Units.--The Secretary
shall explore ways to reform and modernize the Section 8 Management
Assessment Program to assess public housing agencies in a manner that
promotes--
(1) positive interactions with landlords, including timely
payment of rent and identification of the dwelling unit for
which a subsidy payment is being made; and
(2) an increase in the diversity of areas where dwelling
units are leased to support voucher holders who want to access
to low-poverty, integrated neighborhoods.
(c) Rule of Construction.--Nothing in subsection (b) shall be
construed to prevent the Secretary from--
(1) reforming the Section 8 Management Assessment Program
to assess public housing agencies in other areas of
performance; or
(2) reforming the Section 8 Management Assessment Program
in any other manner, at the discretion of the Secretary.
SEC. 10. ANNUAL REPORT ON EFFECTIVENESS OF ACT.
(a) Definitions.--In this section--
(1) the term ``appropriate congressional committees''
means--
(A) the Committee on Banking, Housing, and Urban
Affairs of the Senate;
(B) the Subcommittee on Transportation, Housing and
Urban Development, and Related Agencies of the
Committee on Appropriations of the Senate;
(C) the Committee on Financial Services of the
House of Representatives; and
(D) the Subcommittee on Transportation, Housing and
Urban Development, and Related Agencies of the
Committee on Appropriations of the House of
Representatives; and
(2) the term ``high-opportunity area''--
(A) shall be defined by the Secretary for purposes
of this section; and
(B) does not include any census tract in which the
poverty rate is equal to or greater than 20 percent.
(b) Report.--Not later than 1 year after the date of enactment of
this Act, and annually thereafter for 5 total years, the Secretary
shall submit to the appropriate congressional committees and make
publicly available a report that--
(1) evaluates the effectiveness of this Act and the
amendments made by this Act in recruiting and retaining
landlords who accept vouchers under the Housing Choice Voucher
program, particularly landlords with dwelling units in high-
opportunity neighborhoods; and
(2) includes--
(A) the number of landlords in the United States
who accept housing choice vouchers under the Housing
Choice Voucher program and the number of dwelling units
assisted under the Housing Choice Voucher program;
(B) any net changes to the number of landlords or
dwelling units described in subparagraph (A) during the
preceding year;
(C) the number of landlords described in
subparagraph (A) who own disability-accessible dwelling
units assisted under the Housing Choice Voucher program
and the number of those dwelling units; and
(D) the number of landlords described in
subparagraph (A) who own dwelling units assisted under
the Housing Choice Voucher program in high-opportunity
areas and the number of those dwelling units.
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