Text: H.R.3045 — 111th Congress (2009-2010)All Bill Information (Except Text)

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Reported in House (09/30/2009)

Union Calendar No. 157

111th CONGRESS
1st Session
H. R. 3045

[Report No. 111–277]


To reform the housing choice voucher program under section 8 of the United States Housing Act of 1937.


IN THE HOUSE OF REPRESENTATIVES
June 25, 2009

Ms. Waters (for herself, Mr. Frank of Massachusetts, Mr. Baca, Mr. Cohen, and Mrs. Biggert) introduced the following bill; which was referred to the Committee on Financial Services

September 30, 2009

Additional sponsors: Ms. Lee of California, Mr. Hinojosa, Mr. Pierluisi, and Mr. Israel

September 30, 2009

Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed

[Strike out all after the enacting clause and insert the part printed in italic]

[For text of introduced bill, see copy of bill as introduced on June 25, 2009]


A BILL

To reform the housing choice voucher program under section 8 of the United States Housing Act of 1937.

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 “Section 8 Voucher Reform Act of 2009”.

(b) Table of contents.—The table of contents for this Act is as follows:


Sec. 1. Short title and table of contents.

Sec. 2. Inspection of dwelling units.

Sec. 3. Rent reform and income reviews.

Sec. 4. Eligibility for assistance based on assets and income.

Sec. 5. Targeting assistance to low-income working families.

Sec. 6. Voucher renewal funding.

Sec. 7. Administrative fees.

Sec. 8. Homeownership.

Sec. 9. PHA reporting of rent payments to credit reporting agencies.

Sec. 10. Performance assessments.

Sec. 11. PHA project-based assistance.

Sec. 12. Rent burdens.

Sec. 13. Establishment of fair market rent.

Sec. 14. Screening of applicants.

Sec. 15. Prohibition on firearms restrictions in federally assisted housing.

Sec. 16. Enhanced vouchers.

Sec. 17. Demonstration program waiver authority.

Sec. 18. Authorization of appropriations.

Sec. 19. Agency authority for utility payments in certain circumstances.

Sec. 20. Utility data.

Sec. 21. Project-based preservation vouchers.

Sec. 22. Effect of foreclosure on section 8 tenancies.

Sec. 23. Study to identify obstacles to using vouchers in federally subsidized housing projects.

Sec. 24. Interagency Council on Homelessness.

Sec. 25. Study of effects of section 8 program on HUD budget and programs.

Sec. 26. Housing innovation program.

Sec. 27. Study of use of income databases to reduce subsidy errors.

Sec. 28. Acceptable identification requirement.

Sec. 29. Effective date.

SEC. 2. Inspection of dwelling units.

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, suspend any assistance payments for the unit if any deficiency resulting in noncompliance with the housing quality standards has not been corrected by such time, and may not resume such payments until each such deficiency has been corrected.

“(iii) USE OF ALTERNATIVE INSPECTION METHOD FOR INTERIM PERIOD.—In the case of any property that within the previous 12 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).”;







(2) by redesignating subparagraph (E) as subparagraph (H); and

(3) by striking subparagraph (D) and inserting the following new subparagraphs:

“(D) BIENNIAL INSPECTIONS.—

“(i) REQUIREMENT.—Each public housing agency providing assistance under this subsection (or other entity, as provided in paragraph (11)) shall, for each assisted dwelling unit, make inspections not less often than biennially during the term of the housing assistance payments contract for the unit to determine whether the unit is maintained in accordance with the requirements under subparagraph (A).

“(ii) USE OF ALTERNATIVE INSPECTION METHOD.—The requirement under clause (i) may be complied with by use of inspections that qualify as an alternative inspection method pursuant to subparagraph (E).

“(iii) RECORDS.—The agency (or other entity) shall retain the records of the inspection for a reasonable time and shall make the records available upon request to the Secretary, the Inspector General for the Department of Housing and Urban Development, and any auditor conducting an audit under section 5(h).

“(E) ALTERNATIVE INSPECTION METHOD.—An inspection of a property shall qualify as an alternative inspection method for purposes of this subparagraph if—

“(i) the inspection was conducted pursuant to requirements under a Federal, State, or local housing assistance program (including the HOME investment partnerships program under title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.) and the low-income housing tax credit program under section 42 of the Internal Revenue Code of 1986); and

“(ii) pursuant to such inspection, the property was determined to meet the standards or requirements regarding housing quality or safety applicable to units assisted under such program, and, if a non-Federal standard was used, the public housing agency has certified to the Secretary that such standards or requirements provide the same protection to occupants of dwelling units meeting such standards or requirements as, or greater protection than, the housing quality standards under subparagraph (B).

“(F) INTERIM INSPECTIONS.—Upon notification to the public housing agency, by a family on whose behalf tenant-based rental assistance is provided under this subsection or by a government official, that the dwelling unit for which such assistance is provided does not comply with the housing quality standards under subparagraph (B), the agency shall inspect the dwelling unit—

“(i) in the case of any condition that is life-threatening, within 24 hours after receipt of such notice; and

“(ii) in the case of any condition that is not life-threatening, within 15 days after receipt of such notice.

“(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 that does not comply with housing quality standards under subparagraph (B) as determined pursuant to an inspection conducted under subparagraph (D) or (F). 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) USE OF ABATED ASSISTANCE TO PAY FOR REPAIRS.—

“(I) AUTHORITY.—The public housing agency may use such amounts abated to make repairs to the dwelling unit or to contract to have repairs made, except that a contract to make repairs may not be entered into with the inspector for the dwelling unit referred to in clause (i)(I).

“(II) ABATED FUNDS.—For purposes of this clause, abated amounts may include amounts withheld during the correction period described in clause (ii) of this subparagraph with respect to a dwelling unit that is subsequently determined under clause (i) to be in noncompliance with housing quality standards.

“(III) LIMITATION OF LIABILITY OF PUBLIC HOUSING AGENCIES.—A public housing agency that uses its authority under this clause shall not, if the agency accomplishes the work through a contractor that is licensed, bonded, and insured in amounts and with coverage as required by the Secretary, be liable for any injury or damages that may result to persons or to any property owned by the tenant or owner.

“(v) 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.

“(vi) 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.

“(vii) 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, and the agency does not use its authority under clause (iv), the agency shall terminate the housing assistance payments contract for the dwelling unit.

“(viii) 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 is 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 shall provide reasonable assistance to the family in finding a new residence, including use of up to two months of any assistance amounts abated pursuant to clause (iii) for costs directly associated with relocation of the family to a new residence, which may include moving expenses and security deposits. 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.

“(ix) 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.

“(x) 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.”.

SEC. 3. Rent reform and income reviews.

(a) Rent 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 paragraph (1) by inserting “Low-income occupancy requirement and rental payments.—” after “(1)”;

(B) in paragraph (1)—

(i) by striking “paragraph (2)” and inserting “paragraphs (2) and (3)”; and

(ii) by striking “paragraph (3)” and inserting “paragraph (4)”;

(C) in paragraph (2)(A)(i), by striking “paragraph (3)” and inserting “paragraph (4)”;

(D) by redesignating paragraphs (3), (4), and (5) as paragraphs (4), (5), and (6), respectively;

(E) by inserting after paragraph (2) the following new paragraph:

“(3) PHA AUTHORITY TO ESTABLISH ALTERNATIVE RENTS.—

“(A) RENT FLEXIBILITY FOR PUBLIC HOUSING.—Subject to the requirements under subparagraph (B), a public housing agency may establish for public housing—

“(i) a tenant rent structure in which—

“(I) the public housing agency establishes, based on the rental value of the unit, as determined by the public housing agency, a ceiling rent for each dwelling unit that it owns and operates; and

“(II) such ceiling rent is adjusted periodically on the basis of an inflation index or a recalculation of the rental value of the unit (which may be recalculated by unit or by building);

“(ii) an income-tiered tenant rent structure in which the amount of rent a family shall pay is set and distributed on the basis of broad tiers of income and such tiers and rents are adjusted on the basis of an annual cost index except that families shall not be offered a rent lower than the rent corresponding to their income tier; or

“(iii) a tenant rent structure in which the amount of rent a family shall pay is based on a percentage of family income, except that lower percentages may apply only with respect to earned income; such a rent structure may provide for an amount of rent based on a calculation of earned income that provides for disregard of a higher percentage or higher dollar amount, or both, than provided for in paragraph (8)(B).

“(B) LIMITATION.—Notwithstanding the authority provided under subparagraph (A), the amount paid for rent (including the amount allowed for tenant-paid utilities) by any family for a dwelling unit in public housing may not exceed the amount determined under subsection (a)(1) of this section. The Secretary shall issue regulations and establish procedures for public housing agency calculations and documentation as are necessary to ensure compliance with this subparagraph.

“(C) ELDERLY FAMILIES AND DISABLED FAMILIES.—Notwithstanding any other provision of this Act, this paragraph shall not apply to elderly families and disabled families.”; and

(F) by adding at the end the following new paragraphs:

“(7) 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 subparagraph (B)(i);

“(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 $1,200 (or such lower amount as the public housing agency or owner may, at the option of the agency or owner, 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 $1,200 or more in annual adjusted income, 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 three months of a certification period.

“(B) FIXED-INCOME FAMILIES.—

“(i) SELF CERTIFICATION AND 3-YEAR REVIEW.—In the case of any family described in clause (ii), after the initial review of the family’s income pursuant to subparagraph (A)(i), the public housing agency or owner shall not be required to conduct a review of the family’s income pursuant to subparagraph (A)(ii) for any year for which such family certifies, in accordance with such requirements as the Secretary shall establish, that the income of the family meets the requirements of clause (ii) of this subparagraph and that the sources of such income have not changed since the previous year, except that the public housing agency or owner shall conduct a review of each such family’s income not less than once every 3 years.

“(ii) ELIGIBLE FAMILIES.—A family described in this clause is a family who has an income, as of the most recent review pursuant to subparagraph (A) or clause (i) of this subparagraph, of which 90 percent or more consists of fixed income, as such term is defined in clause (iii).

“(iii) FIXED INCOME.—For purposes of this subparagraph, the term ‘fixed income’ includes income from—

“(I) the supplemental security income program under title XVI of the Social Security Act, including supplementary payments pursuant to an agreement for Federal administration under section 1616(a) of the Social Security Act and payments pursuant to an agreement entered into under section 212(b) of Public Law 93–66;

“(II) Social Security payments;

“(III) Federal, State, local and private pension plans; and

“(IV) other periodic payments received from annuities, insurance policies, retirement funds, disability or death benefits, and other similar types of periodic receipts that are of substantially the same amounts from year to year.

“(C) IN GENERAL.—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.

“(8) 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 (7)(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 (7)(A)(ii), a public housing agency or owner shall, except as otherwise provided in this paragraph, 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 (7)(A).

“(C) INFLATIONARY ADJUSTMENT FOR FIXED INCOME FAMILIES.—

“(i) IN GENERAL.—In any year in which a public housing agency or owner does not conduct a review of income for any family described in clause (ii) of paragraph (7)(B) pursuant to the authority under clause (i) of such paragraph to waive such a review, such family’s prior year’s income determination shall, subject to clauses (ii) and (iii), be adjusted by applying an inflationary factor as the Secretary shall, by regulation, establish.

“(ii) EXEMPTION FROM ADJUSTMENT.—A public housing agency or owner may exempt from an adjustment pursuant to clause (i) any income source for which income does not increase from year to year.

“(iii) APPLICABILITY OF INFLATIONARY FACTOR.—The inflationary factor adjustment referred to in clause (i) shall not be made with respect to the first year after the year in which housing is occupied or housing assistance is initially provided for a family.

“(D) 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.

“(E) 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, a program for Medicaid assistance under a State plan approved under title XIX of the Social Security Act, and the food stamp program as defined in section 3(h) of the Food Stamp Act of 1977). The Secretary shall, in consultation with other appropriate Federal agencies, develop procedures to enable public housing agencies and owners to have access to such income 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)).

“(F) PHA AND OWNER COMPLIANCE.—A public housing agency or owner may not be considered to fail to comply with this paragraph or paragraph (7) due solely to any de minimus 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) Income.—Section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)) is amended—

(1) by striking paragraph (4) and inserting the following new paragraph:

“(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;

“(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)); and

“(iii) deferred disability benefits from the Department of Veterans Affairs that are received in a lump sum amount or in prospective monthly amounts.

“(C) EARNED INCOME OF STUDENTS.—Such term does not include earned income of any dependent earned during any period that such dependent is attending school or vocational training on a full-time basis or any grant-in-aid or scholarship amounts related to such attendance used for the cost of tuition or books.

“(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) OTHER EXCLUSIONS.—Such term shall not include other exclusions from income as are established by the Secretary or any amount required by Federal law to be excluded from consideration as income. The Secretary may not require a public housing agency or owner to maintain records of any amounts excluded from income pursuant to this subparagraph.”; and

(2) by striking paragraph (5) and inserting the following new 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) EARNED INCOME DISREGARD.—An amount equal to 10 percent of the lesser of—

“(i) the family’s earned income; or

“(ii) $9,000, except that such amount shall be adjusted annually by applying to such amount (as it may have been previously adjusted) an inflationary factor as the Secretary shall, by regulation, establish and except that for purposes of adjusted income determinations each year such amount shall be established by rounding the amount calculated down to the next lowest multiple of $1,000.

The deduction under this subparagraph shall not be considered in determining adjusted income for the purposes of section 16 (relating to eligibility for assisted housing and income mix).

“(B) ELDERLY AND DISABLED FAMILIES.—$725 in the case of any family that is an elderly family or a disabled family.

“(C) DEPENDENTS.—In the case of any family that includes a member or members who—

“(i) are less than 18 years of age or attending school or vocational training on a full-time basis; or

“(ii) is a person with disabilities who is 18 years of age or older and resides in the household,

$500 for each such member.

“(D) CHILD CARE.—The amount, if any, that exceeds 10 percent of annual family income that is used to pay for unreimbursed child care expenses, which shall include child care for preschool-age children, for before- and after-care for children in school, and for other child care necessary to enable a member of the family to be employed or further his or her education.

“(E) 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, to the extent necessary to enable any member of such family to be employed.

“(F) 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 (B) and (C), 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.”.

(c) Housing choice voucher program.—Paragraph (5) of section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(5)) is amended—

(1) in the paragraph heading, by striking “Annual review” and inserting “Reviews”;

(2) in subparagraph (A)—

(A) by striking “the provisions of” and inserting “paragraphs (7) and (8) of section 3(a) and to”; and

(B) by striking “and shall be conducted upon the initial provision of housing assistance for the family and thereafter not less than annually”; and

(3) in subparagraph (B), by striking the second sentence.

(d) 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”.

(e) Project-based housing.—Paragraph (3) of section 8(c) of the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(3)) is amended by striking the last sentence.

(f) Impact on public housing revenues.—

(1) ADJUSTMENTS TO OPERATING FORMULA.—If the Secretary of Housing and Urban Development determines that the application of the amendments made by this section results in a material and disproportionate reduction in the rental income of certain public housing agencies during the first year in which the amendments made by this section 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 two years after the first year in which the amendments made by this section are implemented, the Secretary of Housing and Urban Development shall submit a report to Congress identifying and calculating the impact of changes made by the amendments made by this section and sections 4 and 5 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, 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.

(g) Effective date.—The amendments made by this section shall take effect during the first calendar year after regulations or notice has been adopted to implement such amendments, except that the Secretary may delay such effective date by one year upon a determination that such delay is necessary for public housing agencies and owners to make the necessary changes to comply with such amendments.

SEC. 4. Eligibility for assistance based on assets and income.

(a) 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 new subsection:

“(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 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 this Act;

“(ii) any person that is a victim of domestic violence; or

“(iii) any family that is offering such property for sale.

“(2) NET FAMILY ASSETS.—

“(A) IN GENERAL.—For purposes of this subsection, the term ‘net family assets’ 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 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.

“(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) ELDERLY AND DISABLED FAMILIES.—When recertifying the income of an elderly or disabled 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 for elderly and disabled families and may be based on different factors, such as age, 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.”.

(b) Income.—The United States Housing Act of 1937 is amended—

(1) in section 3(a)(1) (42 U.S.C. 1437a(a)(1)), by striking the first sentence and inserting the following: “Dwelling units assisted under this Act may be rented, and assistance under this Act may be provided, whether initially or at time of recertification, only to families who are low-income families at the time such initial or continued assistance, respectively, is provided, except that families residing in dwelling units as of the date of the enactment of the Section 8 Voucher Reform Act of 2009 that, under agreements in effect on such date of enactment, may have incomes up to 95 percent of local area median income shall continue to be eligible for assistance at recertification as long as they continue to comply with such income restrictions. 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 prohibition under the preceding sentence. When recertifying family income with respect to families residing in dwelling units for which project-based assistance is provided, a project owner may, in the owner’s discretion and only pursuant to a policy adopted by such owner, choose not to enforce such prohibition. In the case of a family residing in a dwelling unit assisted under this Act who does not meet the requirements under the first sentence of this paragraph or the requirements under section 8(o)(4), 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.”;

(2) in section 8(o)(4) (42 U.S.C. 1437f(o)(4)), by striking the matter preceding subparagraph (A) and inserting the following:

“(4) ELIGIBLE FAMILIES.—Assistance under this subsection may be provided, whether initially or at each recertification, only pursuant to subsection (t) to a family eligible for assistance under such subsection or to a family who at the time of such initial or continued assistance, respectively, is a low-income family that is—”; and

(3) in section 8(c)(4) (42 U.S.C. 1437f(c)(4)), by striking “at the time it initially occupied such dwelling unit” and inserting “according to the restrictions under section 3(a)(1)”.

SEC. 5. Targeting assistance to low-income working families.

(a) Vouchers.—Section 16(b)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437n(b)(1)) is amended—

(1) by inserting after “do not exceed” the following: “the higher of (A) the poverty line (as such term is defined in section 673 of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 9902), including any revision required by such section) applicable to a family of the size involved, or (B)”; and

(2) by inserting before the period at the end the following: “; and except that clause (A) of this sentence shall not apply in the case of public housing agencies located in Puerto Rico or any other territory or possession of the United States”.

(b) Public housing.—Section 16(a)(2)(A) of the United States Housing Act of 1937 (42 U.S.C. 1437n(a)(2)(A)) is amended—

(1) by inserting after “do not exceed” the following: “the higher of (i) the poverty line (as such term is defined in section 673 of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 9902), including any revision required by such section) applicable to a family of the size involved, or (ii)”; and

(2) by inserting before the period at the end the following: “; and except that clause (i) of this sentence shall not apply in the case of projects located in Puerto Rico or any other territory or possession of the United States”.

(c) Project-based section 8 assistance.—Section 16(c)(3) of the United States Housing Act of 1937 (42 U.S.C. 1437n(c)(3)) is amended—

(1) by inserting after “do not exceed” the following: “the higher of (A) the poverty line (as such term is defined in section 673 of the Omnibus Budget Reconciliation Act of 1981 (42 U.S.C. 9902), including any revision required by such section) applicable to a family of the size involved, or (B)”; and

(2) by inserting before the period at the end the following: “; and except that clause (A) of this sentence shall not apply in the case of projects located in Puerto Rico or any other territory or possession of the United States”.

SEC. 6. Voucher renewal funding.

(a) In general.—Section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) is amended by striking subsection (dd) and inserting the following new subsection:

“(dd) Tenant-based vouchers.—

“(1) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to be appropriated, for each of fiscal years 2010 through 2014, such sums as may be necessary for tenant-based assistance under subsection (o) for the following purposes:

“(A) To renew all expiring annual contributions contracts for tenant-based rental assistance.

“(B) To provide tenant-based rental assistance for—

“(i) conversion of section 23 projects to assistance under this section;

“(ii) the family unification program under subsection (x) of this section;

“(iii) relocation of witnesses in connection with efforts to combat crime in public and assisted housing pursuant to a request from a law enforcement or prosecution agency;

“(iv) enhanced vouchers authorized under subsection (t) of this section;

“(v) relocation or replacement in connection with the HOPE VI program under section 24;

“(vi) demolition or disposition of public housing units pursuant to section 18 of the United States Housing Act of 1937 (42 U.S.C. 1437p);

“(vii) mandatory conversions of public housing to vouchers, pursuant to section 33 of the United States Housing Act of 1937, respectively (42 U.S.C. 1437z–5);

“(viii) voluntary conversions of public housing to vouchers, pursuant to section 22 of the United States Housing Act of 1937, respectively (42 U.S.C. 1437t);

“(ix) vouchers necessary to comply with a consent decree or court order;

“(x) tenant protection vouchers in connection with dwelling units that cease to receive project-based assistance under subsection (b), (c), (d), (e), or (v) of this section;

“(xi) relocation and replacement vouchers in connection with public housing units that are demolished or disposed of pursuant to eminent domain, pursuant to a homeownership program, or in connection with a mixed finance development method under section 35 or otherwise;

“(xii) vouchers used for the preservation of public housing units not included in the operating formula under section 9(e)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437g(e)(2));

“(xiii) emergency voucher assistance for the protection of victims of domestic violence, dating violence, sexual assault, or stalking;

“(xiv) tenant protection vouchers in connection with the foreclosure or disposition of multifamily housing subject to a mortgage insured and subsidized under the National Housing Act; and

“(xv) tenant protection assistance, including replacement and relocation assistance.

Subject only to the availability of sufficient amounts provided in appropriation Acts, the Secretary shall provide tenant-based rental assistance in connection with all dwelling units that cease to be available as assisted housing as a result of clauses (i), (iv), (v), (vi), (vii), (x), (xi), and (xiv).

“(2) ALLOCATION OF RENEWAL FUNDING AMONG PUBLIC HOUSING AGENCIES.—

“(A) From amounts appropriated for each year pursuant to paragraph (1)(A), the Secretary shall provide renewal funding for each public housing agency—

“(i) based on leasing and cost data from the preceding calendar year, as adjusted by an annual adjustment factor to be established by the Secretary, which shall be established using the smallest geographical areas for which data on changes in rental costs are annually available;

“(ii) by making any adjustments necessary to provide for the first-time renewal of vouchers funded under paragraph (1)(B) and of any incremental vouchers funded in previous years;

“(iii) by making any adjustments necessary for full year funding of vouchers moved into and out of the jurisdiction of the public housing agency in the prior calendar year pursuant to portability procedures under subsection (r)(2); and

“(iv) by making such other adjustments as the Secretary considers appropriate, including adjustments necessary to address changes in voucher utilization rates and voucher costs related to natural and other major disasters.

“(B) LEASING AND COST DATA.—For purposes of subparagraph (A)(i), leasing and cost data shall be calculated annually by using the average for the preceding calendar year. Such leasing and cost data shall be adjusted to include vouchers that were set aside under a commitment to provide project-based assistance under subsection (o)(13) and to exclude amounts funded through advances under paragraph (3). Such leasing and cost data shall not include funds not appropriated for tenant-based assistance under section 8(o), unless the agency’s funding was prorated in the prior year and the agency used other funds to maintain vouchers in use.

“(C) OVERLEASING.—For the purpose of determining allocations under subsection (A)(i), the leasing rate calculated for the prior calendar year may exceed an agency’s authorized voucher level, except that such calculation shall not utilize a leasing rate in excess of 103 percent of the leasing rate in the year preceding such prior year (after making appropriate adjustments for incremental and new enhanced vouchers) which results from the use of accumulated amounts, as referred to in the last sentence of paragraph (4)(A).

“(D) MOVING TO WORK; HOUSING INNOVATION PROGRAM.—Notwithstanding subparagraphs (A) and (B), each public housing agency participating in any year in the moving to work program or the housing innovation program under section 37 of this Act shall be funded pursuant to its agreement under such program and shall be subject to any pro rata adjustment made under subparagraph (F)(i).

“(E) UNREIMBURSED PORTABILITY COSTS.—The Secretary may reimburse public housing agencies for increased costs related to portability incurred during the prior year that were not reimbursed pursuant to paragraph (4)(B)(i).

“(F) PRO RATA ALLOCATION.—

“(i) INSUFFICIENT FUNDS.—To the extent that amounts made available for a fiscal year are not sufficient to provide each public housing agency with the full allocation for the agency determined pursuant to subparagraphs (A) and (D), the Secretary shall reduce such allocation for each agency on a pro rata basis, except that renewal funding of enhanced vouchers under section 8(t) shall not be subject to such proration.

“(ii) EXCESS FUNDS.—To the extent that amounts made available for a fiscal year exceed the amount necessary to provide each housing agency with the full allocation for the agency determined pursuant to subparagraphs (A) and (D), such excess amounts shall be used for the purposes specified in paragraph (4)(B).

“(G) PROMPT FUNDING ALLOCATION.—The Secretary shall allocate all funds under this subsection for each year before the latter of (i) February 15, or (ii) the expiration of the 45-day period beginning upon the enactment of the appropriations Act funding such renewals.

“(3) ADVANCES.—

“(A) AUTHORITY.—During the last 3 months of each calendar year, the Secretary shall provide amounts out of any appropriations made pursuant to paragraph (1) for the fiscal year beginning on October 1 of that calendar year to any public housing agency, at the request of the agency, in an amount up to two percent of the allocation for the agency for such calendar year, subject to subparagraph (C).

“(B) USE.—Amounts advanced under subparagraph (A) may be used to pay for additional voucher costs, including costs related to temporary overleasing.

“(C) USE OF PRIOR YEAR AMOUNTS.—During the last 3 months of a calendar year, if amounts previously provided to a public housing agency for tenant-based assistance for such year or for previous years remain unobligated and available to the agency—

“(i) the agency shall exhaust such amounts to cover any additional voucher costs under subparagraph (B) before amounts advanced under subparagraph (A) may be so used; and

“(ii) the amount that may be advanced under subparagraph (A) to the agency shall be reduced by an amount equal to the total of such previously provided and unobligated amounts.

“(D) REPAYMENT.—Amounts advanced under subparagraph (A) in a calendar year shall be repaid to the Secretary in the subsequent calendar year by offsetting the amounts made available for such agency for such subsequent calendar year pursuant to allocation under paragraph (2) by an amount equal to the amount so advanced to the agency.

“(4) OFFSET.—

“(A) IN GENERAL.—The Secretary shall offset, from amounts provided under the annual contributions contract for a public housing agency for a calendar year, all accumulated amounts allocated under paragraph (2) and from previous years that are unused by the agency at the end of each calendar year, except for an amount not less than 6 percent of such amount allocated to the agency pursuant to paragraph (2) for the preceding calendar year. Notwithstanding any other provision of law, each public housing agency may retain all amounts not offset under this subparagraph, and may use such amounts for all authorized purposes.

“(B) REALLOCATION.—Not later than the latter of April 1 of each calendar year or 75 days after the enactment of an appropriations Act providing funding for voucher renewal costs, the Secretary shall, from amounts available pursuant to paragraph (2)(E) and from any other available amounts appropriated for such purpose—

“(i) set aside and subsequently make available such amounts as the Secretary considers likely to be needed, when combined with funds from a central fund or any other source of funds appropriated or made available for such purpose, to reimburse public housing agencies for increased costs related to portability and family self-sufficiency activities pursuant to section 23(h) during such year; and

“(ii) reallocate all remaining amounts among public housing agencies, with priority given based on the extent to which an agency has utilized the amount allocated under paragraph (2) for the agency to serve eligible families and the relative need for additional voucher assistance for use only to increase voucher leasing rates.”.

(b) Portability.—The Secretary of Housing and Urban Development shall, not later than the expiration of the 6-month period beginning on the date of the enactment of this Act, issue a proposed rule for comment to modify the regulations governing the responsibilities of public housing agencies in cases in which families assisted with tenant-based assistance under section 8 of the United States Housing Act of 1937 exercise their right to move to a different jurisdiction under the Secretary’s regulations regarding portability procedures (24 C.F.R. 982.355), to eliminate, or minimize to the greatest extent feasible consistent with available funding, billing between agencies and administrative barriers to families’ choices of where to reside, without undermining the ability of public housing agencies to serve their waiting lists. The Secretary shall finalize regulations modifying such portability procedures in accordance with this subsection not later than the expiration of the 12-month period beginning upon the date of the enactment of this Act.

(c) Vouchers for persons with disabilities and homeless veterans.—The Secretary of Housing and Urban Development shall develop and issue, to public housing agencies that have received voucher assistance under section 8(o) for non-elderly disabled families, or under section 8(o)(19) for homeless veterans, pursuant to appropriations Acts for fiscal year 1997 and fiscal years thereafter, guidance to ensure that, to the maximum extent practicable, such vouchers continue to be provided upon turnover to qualified non-elderly disabled families or homeless veterans, respectively.

SEC. 7. Administrative fees.

(a) In general.—Section 8(q) of the United States Housing Act of 1937 (42 U.S.C. 1437f(q)) is amended—

(1) in paragraph (1)—

(A) by striking subparagraphs (B) and (C) and inserting the following new subparagraphs:

“(B) CALCULATION.—The fee under this subsection shall—

“(i) be payable to each public housing agency for each month for which a dwelling unit is covered by an assistance contract;

“(ii) be based on a per-unit fee, which shall be based on the per-unit fee payable to the agency in fiscal year 2003 and updated for each subsequent year as specified in subsection (iv), or on such formula which the Secretary may, by regulation, establish using a per-unit fee structure which shall provide for the payment of the full cost of administering vouchers, and which may include performance incentives consistent with subsection (o)(21);

“(iii) include an amount for the cost of issuing a voucher to new participants;

“(iv) be updated each year using an index of changes in wage and benefit data or other objectively measurable data that reflect the costs of administering the program for such assistance, as determined by the Secretary; and

“(v) include an amount for the cost of family self-sufficiency coordinators, as provided in section 23(h)(1).

“(C) PUBLICATION.—The Secretary shall cause to be published in the Federal Register the fee rate for each geographic area.”; and

(B) by striking subparagraph (E) and inserting the following new subparagraph;

“(E) FEE FOR AGENCY-OWNED UNITS.—The Secretary shall establish a fee for dwelling units owned by a public housing agency that reflects reasonable costs of administration, which shall take into consideration the third-party inspection and rent determination expenses incurred in compliance with the requirements of subsection (o)(11).”; and

(2) in paragraph (4), by striking “1999” and inserting “2010”.

(b) Administrative fees for family self-sufficiency program costs.—Subsection (h) of section 23 of the United States Housing Act of 1937 (42 U.S.C. 1437u(h)) is amended by striking paragraph (1) and inserting the following new paragraph:

“(1) SECTION 8 FEES.—

“(A) IN GENERAL.—The Secretary shall establish a fee under section 8(q) for the costs incurred in administering the self-sufficiency program under this section to assist families receiving voucher assistance through section 8(o).

“(B) ELIGIBILITY FOR FEE.—The fee shall provide funding for family self-sufficiency coordinators as follows:

“(i) BASE FEE.—A public housing agency serving 25 or more participants in the family self-sufficiency program under this section shall receive a fee equal to the costs of employing one full-time family self-sufficiency coordinator. An agency serving fewer than 25 such participants shall receive a prorated fee.

“(ii) ADDITIONAL FEE.—An agency that meets minimum performance standards shall receive an additional fee sufficient to cover the costs of employing a second family self-sufficiency coordinator if the agency has 75 or more participating families, and a third such coordinator if it has 125 or more participating families.

“(iii) PREVIOUSLY FUNDED AGENCIES.—An agency that received funding from the Department of Housing and Urban Development for more than three such coordinators in any of fiscal years 1998 through 2009 shall receive funding for the highest number of coordinators funded in a single fiscal year during that period, provided they meet applicable size and performance standards.

“(iv) INITIAL YEAR.—For the first year in which a public housing agency exercises its right to develop an family self-sufficiency program for its residents, it shall be entitled to funding to cover the costs of up to one family self-sufficiency coordinator, based on the size specified in its action plan for such program.

“(v) STATE AND REGIONAL AGENCIES.—For purposes of calculating the family self-sufficiency portion of the administrative fee under this subparagraph, each administratively distinct part of a State or regional public housing agency shall be treated as a separate agency.

“(vi) DETERMINATION OF NUMBER OF COORDINATORS.—In determining whether a public housing agency meets a specific threshold for funding pursuant to this paragraph, the number of participants being served by the agency in its family self-sufficiency program shall be considered to be the average number of families enrolled in such agency’s program during the course of the most recent fiscal year for which the Department of Housing and Urban Development has data.

“(C) PRORATION.—If insufficient funds are available in any fiscal year to fund all of the coordinators authorized under this section, the first priority shall be given to funding one coordinator at each agency with an existing family self-sufficiency program. The remaining funds shall be prorated based on the number of remaining coordinators to which each agency is entitled under this subparagraph.

“(D) RECAPTURE.—Any fees allocated under this subparagraph by the Secretary in a fiscal year that have not been spent by the end of the subsequent fiscal year shall be recaptured by the Secretary and shall be available for providing additional fees pursuant to subparagraph (B)(ii).

“(E) PERFORMANCE STANDARDS.—Within six months after the date of the enactment of this paragraph, the Secretary shall publish a proposed rule specifying the performance standards applicable to funding under clauses (ii) and (iii) of subparagraph (B). Such standards shall include requirements applicable to the leveraging of in-kind services and other resources to support the goals of the family self-sufficiency program.

“(F) DATA COLLECTION.—Public housing agencies receiving funding under this paragraph shall collect and report to the Secretary, in such manner as the Secretary shall require, information on the performance of their family self-sufficiency programs.

“(G) EVALUATION.—The Secretary shall conduct a formal and scientific evaluation of the effectiveness of well-run family self-sufficiency programs, comparing outcomes of families participating in such programs with families who are not, using random assignment of participants to the extent practicable. Not later than the expiration of the 4-year period beginning upon the enactment of this paragraph, the Secretary shall submit an interim evaluation report to the Congress. Not later than the expiration of the 8-year period beginning upon such enactment, the Secretary shall submit a final evaluation report to the Congress. There is authorized to be appropriated $10,000,000 to carry out the evaluation under this subparagraph.

“(H) INCENTIVES FOR INNOVATION AND HIGH PERFORMANCE.—The Secretary may reserve up to 10 percent of the amounts made available for administrative fees under this paragraph to provide support to or reward family self-sufficiency programs that are particularly innovative or highly successful in achieving the goals of the program.”.

(c) Repeal.—Section 202 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997 (42 U.S.C. 1437f note; Public Law 104–204; 110 Stat. 2893) is hereby repealed.

SEC. 8. Homeownership.

(a) Section 8 homeownership downpayment program.—Section 8(y)(7) of the United States Housing Act of 1937 (42 U.S.C. 1437f(y)(7)) is amended by striking subparagraphs (A) and (B) and inserting the following new subparagraphs:

“(A) IN GENERAL.—Subject to the provisions of this paragraph, in the case of a family on whose behalf rental assistance under section 8(o) has been provided for a period of not less than 12 months prior to the date of receipt of downpayment assistance under this paragraph, a public housing agency may, in lieu of providing monthly assistance payments under this subsection on behalf of a family eligible for such assistance and at the discretion of the agency, provide a downpayment assistance grant in accordance with subparagraph (B).

“(B) GRANT REQUIREMENTS.—A downpayment assistance grant under this paragraph—

“(i) shall be used by the family only as a contribution toward the downpayment and reasonable and customary closing costs required in connection with the purchase of a home;

“(ii) shall be in the form of a single one-time grant; and

“(iii) may not exceed $10,000.

“(C) NO EFFECT ON OBTAINING OUTSIDE SOURCES FOR DOWNPAYMENT ASSISTANCE.—This Act may not be construed to prohibit a public housing agency from providing downpayment assistance to families from sources other than a grant provided under this Act, or as determined by the public housing agency.

“(D) COUNSELING AND SELF-SUFFICIENCY PROGRAMS.—A public housing agency may require prepurchase housing counseling or participation in a self-sufficiency program as a condition of a family receiving downpayment assistance under this paragraph.”.

(b) Use of vouchers for manufactured housing.—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); and

(C) in clause (iii)—

(i) 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.”; and

(ii) by redesignating such clause as clause (ii).

SEC. 9. PHA reporting of rent payments to credit reporting agencies.

Section 3 of the United States Housing Act of 1937 (42 U.S.C. 1437a), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new subsection:

“(e) PHA reporting of rent payments to credit reporting agencies.—

“(1) AUTHORITY.—To the extent that an individual receiving tenant-based housing choice vouchers under section 8 by a public housing agency agrees in writing to reporting under this subsection, the public housing agency may submit to consumer reporting agencies described in section 603(p) of the Fair Credit Reporting Act (15 U.S.C. 1681a) information regarding the past rent payment history of the individual with respect to the dwelling unit for which such assistance is provided.

“(2) FORMAT.—The Secretary, after consultation with consumer reporting agencies referred in paragraph (1), shall establish a system and format to be used by public housing agencies for reporting of information under such paragraph that provides such information in a format and manner that is similar to other credit information submitted to such consumer reporting agencies and is usable by such agencies.”.

SEC. 10. Performance assessments.

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 new paragraph:

“(21) PERFORMANCE ASSESSMENTS.—

“(A) ESTABLISHMENT.—The Secretary shall, by regulation, establish standards and procedures for assessing the performance of public housing agencies in carrying out the programs for tenant-based rental assistance under this subsection and for homeownership assistance under subsection (y).

“(B) CONTENTS.—The standards and procedures under this paragraph shall provide for assessment of the performance of public housing agencies in the following areas:

“(i) Extent to which dwelling units comply with housing quality standards, including compliance with inspection requirements.

“(ii) Extent of utilization of assistance amounts provided to the agency and of authorized vouchers, using appropriate adjustments for vouchers set aside to meet commitments under paragraph (13).

“(iii) Timeliness and accuracy of reporting by the agency to the Secretary.

“(iv) Effectiveness in carrying out policies that result in deconcentration of poverty and reduction of racial segregation.

“(v) Reasonableness of rent burdens, consistent with public housing agency responsibilities under section 8(o)(1)(E)(iii).

“(vi) Accurate calculations of rent, utility allowances, and subsidy payments.

“(vii) Effectiveness in carrying out family self-sufficiency activities.

“(viii) Timeliness of actions related to landlord participation.

“(ix) Compliance with targeting requirements under section 16(b).

“(x) Such other areas as the Secretary considers appropriate, which may only be established by regulation.

“(C) BIENNIAL ASSESSMENT.—Not later than 2 years after the date of enactment of this paragraph, and at least every 2 years thereafter, the Secretary, using the standards and procedures established under this paragraph, shall—

“(i) conduct an assessment of the performance of each public housing agency carrying out a program referred to in subparagraph (A);

“(ii) make such assessment available to the public housing agency and to the public via the website of the Department of Housing and Urban Development; and

“(iii) submit a report to Congress regarding the results of each such assessment.

“(D) APPLICABILITY.—When implemented, the performance assessment standards and procedures under this paragraph shall supercede the Section 8 Management Assessment Program of the Secretary then in effect.”.

SEC. 11. PHA project-based assistance.

Section 8(o)(13) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) is amended—

(1) by striking subparagraph (B) and inserting the following new subparagraph:

“(B) PERCENTAGE LIMITATION.—

“(i) IN GENERAL.—Subject to clause (ii), not more than 25 percent of the funding available for tenant-based assistance under this section that is administered by the agency may be attached to structures pursuant to this paragraph.

“(ii) EXCEPTION.—An agency may attach up to an additional 5 percent of the funding available for tenant-based assistance under this section to structures pursuant to this paragraph for dwelling 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 provide supportive housing to persons with disabilities, or that are located in areas where vouchers under this subsection are difficult to use, as specified in subparagraph (D)(ii)(II). The Secretary may, by regulation, establish additional categories for the exception under this clause.”;







(2) by striking subparagraph (D) and inserting the following new subparagraph:

“(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 HOUSING.—The limitation under clause (i) shall not apply in the case of assistance under a contract for housing consisting of single family properties, or for dwelling units that are exclusively made available for households comprised of elderly families, disabled families, and families receiving supportive services for special needs populations, such as individuals who were formerly homeless. For purposes of the preceding sentence, the term ‘single family properties’ means buildings with no more than four dwelling units.

“(II) CERTAIN AREAS.—

“(aa) With respect to areas in which fewer than 75 percent of families issued vouchers become participants in the program, the public housing agency has established the payment standard at 110 percent of the fair market rent for all census tracts in the area for the previous six months, the public housing agency has requested a higher payment standard, and the public housing agency grants an automatic extension of 90 days (or longer) to families with vouchers who are attempting to find housing, clause (i) shall be applied by substituting ‘40 percent’ for ‘25 percent’; and

“(bb) With respect to census tracts with a poverty rate of 20 percent or less, clause (i) shall be applied by substituting ‘50 percent’ for ‘25 percent’ and the Secretary may, by regulation, establish additional conditions.”;

(3) in subparagraph (J)—

(A) by striking the fifth and sixth sentences and inserting the following: “A public housing agency may establish and utilize procedures for maintaining site-based waiting lists under which applicants may apply directly 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. All such procedures shall comply with title VI of the Civil Rights Act of 1964, the Fair Housing Act, and other applicable civil rights laws. The owner or manager of a structure 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.”; and

(B) by inserting after the third sentence the following new sentence: “Any family who resides in a dwelling unit proposed to be assisted under this paragraph, or in a unit to be replaced by a proposed unit to be assisted under this paragraph shall be given an absolute preference for selection for placement in the proposed unit, if the family is otherwise eligible for assistance under this subsection.”; and

(4) by adding at the end the following new subparagraphs:

“(N) STRUCTURE OWNED BY AGENCY.—Notwithstanding any other provision of law, as part of an initiative to improve, develop, or replace a public housing site, a public housing agency 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, but only if the agency includes such initiative in its public housing agency plan approved under section 5A and the units that receive such assistance will not receive assistance under section 9. The preceding sentence may not be construed to limit the ability of a public housing agency to attach assistance to structures under other applicable law.

“(O) LEASES AND TENANCY.—Assistance provided under this paragraph shall be subject to the provisions of paragraph (7), except that subparagraph (A) of such paragraph shall not apply. Notwithstanding any other provision of law, for the term of the contract under this paragraph, the owner may terminate tenancy only for serious or repeated violations of the terms and conditions of the lease or for violation of applicable law.

“(P) ALLOWABLE TRANSFERS.—A public housing agency may, subject to the agreement of the receiving agency, transfer a portion of its vouchers and related budget authority to a public housing agency that administers a program under this subsection in another jurisdiction located in the same or a contiguous metropolitan area or county.

“(Q) RENT FLEXIBILITY.—If a dwelling unit assisted under this paragraph also receives funding from either of the funds established under section 1138 or 1339 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4568, 4569), the rent for the unit, if agreed upon by both the public housing agency and the owner, may be established at an amount that is less than would otherwise be permitted under paragraphs (1)(B) or (10)(A) of this section.”.

SEC. 12. Rent burdens.

(a) Reviews.—Section 8(o)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(1)) is amended by striking subparagraph (E) and inserting the following new subparagraph:

“(E) REVIEWS.—

“(i) RENT BURDENS.—The Secretary shall monitor rent burdens and submit a report to the Congress annually on the percentage of families assisted under this subsection, occupying dwelling units of any size, that pay more than 30 percent of their adjusted incomes for rent and such percentage that pay more than 40 percent of their adjusted incomes for rent. Using information regularly reported by public housing agencies, the Secretary shall provide public housing agencies, on an annual basis, a report with the information described in the first sentence of this clause, and may require a public housing agency to modify a payment standard that results in a significant percentage of families assisted under this subsection, occupying dwelling units of any size, paying more than 30 percent of their adjusted incomes for rent. In implementing the requirements of this clause, the Secretary shall separate out calculations and consideration of families whose rent contributions are calculated under section 3(a)(3) and clauses (ii) and (iii) of paragraph (2)(A) of this subsection.

“(ii) CONCENTRATION OF POVERTY.—The Secretary shall submit a report to the Congress annually on the degree to which families assisted under this subsection in each metropolitan area are clustered in lower rent, higher poverty areas, which shall include reporting of data by race and ethnicity, and how, and the extent to which, greater geographic distribution of such assisted families could be achieved, including by increasing payment standards for particular communities within such metropolitan areas.

“(iii) PUBLIC HOUSING AGENCY RESPONSIBILITIES.—Each public housing agency shall make publicly available the information on rent burdens provided by the Secretary pursuant to clause (i), and, for agencies located in metropolitan areas, the information on concentration provided by the Secretary pursuant to clause (ii). If a public housing agency has a high degree of concentration of poverty, as determined under a standard to be developed by the Secretary in accordance with clause (ii), or if the percentage of families paying more than 40 percent of their adjusted net income exceeds a percentage level, to be established by the Secretary, the public housing agency shall adjust the payment standard to eliminate excessive rent burdens within a reasonable time period or explain its reasons for not making such adjustment. The Secretary may not deny the request of a public housing agency to set a payment standard up to 120 percent of the fair market rent to eliminate excessive rent burdens in accordance with the preceding sentence, except on the basis that an agency has not demonstrated that its request meets these criteria. If a request of a public housing agency has not been denied or approved with 45 days after the request is made, the request shall be considered to have been approved.”.

(b) Public housing agency plan.—Section 5A(d)(4) of the United States Housing Act of 1937 (42 U.S.C. 1437c–1(d)(4)) is amended by inserting before the period at the end the following: “, including the report with respect to the agency furnished by the Secretary pursuant to section 8(o)(1)(E) concerning rent burdens and, if applicable, geographic concentration of voucher holders, any changes in rent or other policies the public housing agency is making to address excessive rent burdens or concentration, and if the public housing agency is not adjusting its payment standard, its reasons for not doing so”.

(c) Rent burdens for persons with disabilities.—Subparagraph (D) of section 8(o)(1) is amended 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 seek approval of the Secretary to use a payment standard greater than 120 percent of the fair market rent as a reasonable accommodation for a person with a disability. In connection with the use of any increased payment standard established or approved pursuant to either of the preceding two 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”.

SEC. 13. Establishment of fair market rent.

(a) In general.—Paragraph (1) of section 8(c) of the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(1)) is amended—

(1) by inserting “(A)” after the paragraph designation;

(2) by striking the seventh, eighth, and ninth sentences; and

(3) by adding at the end the following:

“(B)(i) The Secretary shall define market areas for purposes of this paragraph in areas sufficiently distinct as is necessary—

“(I) to establish fair market rentals that accurately reflect typical rental costs of units suitable for occupancy by persons assisted under this section in communities in metropolitan and non-metropolitan areas (including low poverty areas); and

“(II) to avoid concentration of voucher holders;

while taking into consideration the factors specified in clause (ii).

“(ii) The factors specified in this clause are—

“(I) the efficient administration of the program by public housing agencies and the administrative costs of the Secretary of establishing additional areas;

“(II) the availability of data for a sufficient number of dwelling units to establish accurate fair market rentals; and

“(III) the ability of public housing agencies to adjust the payment standard to more accurately reflect typical rental costs.

“(iii) The Secretary shall establish procedures to permit a public housing agency to request the establishment of a separate market areas for either all or contiguous parts of the areas under the jurisdiction of such agency. The Secretary shall consider and approve any such request using the criteria established in clause (i) and the considerations under clause (ii).

“(iv) The Secretary shall not reduce the fair market rental in a market area as a result of a change in the percentile of the distribution of market rents used to establish the fair market rental.

“(v) The Secretary shall phase in large increases or decreases in the fair market rentals that result from changes in market area boundaries or other methodological changes that do not reflect actual year-to-year trends in rents by limiting such increases or decreases to not more than 5 percent each year.”.

(b) Payment standard.—Subparagraph (B) of section 8(o)(1) 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”.

SEC. 14. Screening of applicants.

(a) In general.—Subparagraph (B) of section 8(o)(6) of the United States Housing Act of 1937 (1437f(o)(6)(B)) is amended—

(1) by striking “(B) Selection of tenants.—Each” and inserting the following:

“(B) SELECTION OF TENANTS.—

“(i) FUNCTION OF OWNER.—Each”;

(2) in the first sentence, by striking “unit)” and inserting “unit”;

(3) by striking “In addition” and inserting the following:

“(ii) SCREENING.—In addition”;

(4) by inserting after “establish.” the following: “A public housing agency’s elective screening shall be limited to criteria that are directly related to an applicant’s ability to fulfill the obligations of an assisted lease and shall consider mitigating circumstances related to such applicant. The requirements of the preceding sentence shall not limit the ability of a public housing agency to deny assistance based on an applicant’s criminal background or any other permissible grounds for denial under subtitle F of title V of the Quality Housing and Work Responsibility Act of 1998 (42 U.S.C. 13661 et seq.; relating to safety and security in public and assisted housing), subject to the procedural requirements of this section. Any applicant or participant determined to be ineligible for admission or continued participation to the program shall be notified of the basis for such determination and provided, within a reasonable time after the determination, an opportunity for an informal hearing on such determination at which mitigating circumstances, including remedial conduct subsequent to the conduct that is the basis of such determination, shall be considered.”; and

(5) by adding at the end the following:

“(iii) EXISTING ASSISTED FAMILIES.—Families being provided enhanced vouchers pursuant to subsection (t), families receiving assistance under this Act that are subsequently provided tenant-based assistance pursuant to subsection (dd)(1)(B), and families residing in multifamily housing subject to a mortgage insured under the National Housing Act that are provided tenant-based assistance pursuant to subsection (dd)(1)(B)(xiv) of this section shall not be considered new applicants under this paragraph and shall not be subject to elective re-screening by a public housing agency.”.

(b) Leases and tenancy.—Subparagraph (E) of section 8(o)(7) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(7)(E)) is amended by inserting “termination or” after “any” the last place such term appears.

(c) Denials of admission.—Section 576 of the Quality Housing and Work Responsibility Act of 1998 (42 U.S.C. 13661) is amended—

(1) in subsection (b)—

(A) by striking paragraph (2);

(B) in paragraph (1)—

(i) in subparagraph (A), by inserting “, based on documented evidence that is credible and objective,” after “determines”;

(ii) in subparagraph (B), by striking “that it has reasonable” and all that follows through “by other residents” and inserting “, based on documented evidence that is credible and objective, is a chronic abuser of alcohol, and who is not currently participating in a supervised alcohol rehabilitation program”; and

(iii) by redesignating subparagraphs (A) and (B) (as so amended) as paragraphs (1) and (2) and realigning such paragraphs, as so redesignated, so as to be indented 2 ems from the left margin; and

(C) by striking the subsection designation and all that follows through “Notwithstanding” in paragraph (1) and inserting the following:

“(b) Ineligibility of illegal drug users and alcohol abusers.—Notwithstanding”; and

(2) in subsection (c)—

(A) in the section heading, by inserting “certain” before “criminal”;

(B) in the matter that precedes paragraph (1)—

(i) by inserting “, based on documented evidence that is credible and objective,” after “determines”;

(ii) by striking “a reasonable time” and inserting “the 5-year period”; and

(iii) by striking “or other criminal activity”;

(C) in paragraph (2), by striking “reasonable” each place such term appears and inserting “5-year”; and

(D) by adding after and below paragraph (2) the following:

“No denial of admission may be made pursuant to this subsection based on a misdemeanor charge and conviction unless such denial is based on a pattern of activity, the commission of any offense against a child (including child pornography offenses), the commission of any offense involving a child victim, the commission of a sexual assault, the commission of an assault, or the commission of violent, disruptive (as such term is defined by the Secretary), or illegal behavior that interferes with the right to peaceful enjoyment of the premises by other residents.”.









SEC. 15. Prohibition on firearms restrictions in federally assisted housing.

Subtitle F of the Quality Housing and Work Responsibility Act of 1998 is amended by inserting after section 578 (42 U.S.C. 13663) the following new section:.

“SEC. 578A. Prohibition on firearms restrictions in federally assisted housing.

“Neither the Secretary of Housing and Urban Development, nor any public housing agency, nor any owner of federally assisted housing may establish any prohibition or restriction on the otherwise lawful possession or use of firearms in federally assisted housing.”.

SEC. 16. Enhanced vouchers.

(a) Qualification; election To remain in unit.—Section 8(t)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(B)) is amended—

(1) in the matter preceding subparagraph (A), by inserting “and shall not require that the family requalify under the selection standards for a public housing agency in order to be eligible for such assistance” before the comma; and

(2) by striking subparagraph (B) and inserting the following new subparagraph:

“(B)(i) the assisted family may elect to remain in the same project in which the family was residing on the date of the eligibility event for the project regardless of unit and family size standards normally used by the administering public housing agency (except that tenants may be required to move to units of appropriate size if available on the premises), and the owner of the unit shall accept the enhanced voucher and terminate the tenancy only for serious or repeated violation of the terms and conditions of the lease or for violation of applicable law; and

“(ii) if, during any period the family makes such an election and continues to so reside, the rent for the dwelling unit of the family in such project exceeds the applicable payment standard established pursuant to subsection (o) for the unit, the amount of rental assistance provided on behalf of the family shall be determined using a payment standard that is equal to the rent for the dwelling unit (as such rent may be increased from time-to-time), subject to paragraph (10)(A) of subsection (o) and any other reasonable limit prescribed by the Secretary, except that a limit shall not be considered reasonable for purposes of this subparagraph if it adversely affects such assisted families;”.

(b) Provision to residents of assisted multifamily projects upon termination date.—

(1) REQUIREMENT.—Upon the termination date for each assisted multifamily housing project, to the extent that amounts for assistance under this paragraph are provided in advance in appropriation Acts, the Secretary of Housing and Urban Development shall make enhanced voucher assistance under section 8(t) of the United States Housing Act of 1937 (42 U.S.C. 1437f(t)) available on behalf of each family described in paragraph (2).

(2) ELIGIBILITY.—A family described in this paragraph is a family who—

(A)(i) is a low-income family; or

(ii) is a moderate-income family that is—

(I) an elderly family (as such term is used in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b));

(II) a disabled family (as such term is used in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)); or

(III) residing in a low-vacancy area (as determined by the Secretary); and

(B) on such termination date, is residing in a dwelling unit of the project that—

(i) immediately before such termination date was assisted under the multifamily housing subsidy program for the project; and

(ii) is not assisted after such termination date under section 8 of such Act.

(3) ELIGIBILITY EVENT.—Section 8(t)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437f(t)(2)) is amended by adding after the period at the end the following new sentence: “Such term includes, with respect to an assisted multifamily housing project (as such term is defined in section 16(b) of the Section 8 Voucher Reform Act of 2009), the occurrence of the termination date for the project.”.

(4) DEFINITIONS.—For purposes of this subsection, the following definitions shall apply:

(A) ASSISTED MULTIFAMILY HOUSING PROPERTY.—The term “assisted multifamily housing property” means a multifamily housing project for which assistance is provided under a multifamily housing subsidy program.

(B) LOW-INCOME FAMILY.—The term “low-income family” has the meaning given such term in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)).

(C) MODERATE-INCOME FAMILY.—The term “moderate-income family” has the meaning given such term in section 229 of the Low-Income Housing Preservation and Resident Homeownership Act of 1992 (12 U.S.C. 4119).

(D) MULTIFAMILY HOUSING SUBSIDY PROGRAM.—The term “multifamily housing subsidy program” means—

(i) the below-market interest rate mortgage insurance program under section 221(d)(3) of the National Housing Act (12 U.S.C. 1715l(d)(3)); and

(ii) the program for interest reduction payments under section 236 of the National Housing Act (12 U.S.C. 1715z–1).

(E) TERMINATION DATE.—The term “termination date” means, with respect to an assisted multifamily housing property, the date that—

(i) the mortgage for the property that is insured under the below-market interest rate program under section 221(d)(3) of the National Housing Act, or for which interest reduction payments are made under section 236 of such Act, matures; and

(ii) the affordability restrictions applicable to the property because of assistance for the property pursuant to a multifamily housing subsidy program terminate with respect to the property.

(5) REGULATIONS.—The Secretary may issue any regulations necessary to carry out this subsection.

(c) Provision to certain assisted housing residents.—

(1) ENHANCED VOUCHER ASSISTANCE.—Notwithstanding any other provision of law, contract, or covenant, and subject only to the availability of amounts provided in advance in appropriation Acts—

(A) upon the expiration, pursuant to subparagraph (B), of the use restrictions applicable to the covered properties pursuant to the Emergency Low Income Housing Preservation Act of 1987 (12 U.S.C. 1715l note), each family who is an eligible low-income or moderate income family, as such terms are used for purposes of section 223(f)(2)(A) of the Low-Income Housing Preservation and Resident Homeownership Act of 1990 (12 U.S.C. 4113(f)(2)(A)), and, as of such expiration, is residing in a dwelling unit in the covered properties not covered by project-based rental assistance, shall be offered enhanced voucher assistance under section 8(t) of the United States Housing Act of 1937 (42 U.S.C. 1437f(t)), and each such family who chooses to remain in the covered properties shall have three years from the date of the issuance of such enhanced voucher to commence use of the voucher;

(B) such use restrictions applicable to the covered properties shall be deemed to expire on March 1, 2010, but only if the owner of the covered properties enters into agreements with the Secretary to maintain the project-based rental assistance for the properties for a period beginning upon such expiration of not fewer than 20 years; and

(C) the contract rents for dwelling units in the covered properties covered by project-based rental assistance shall be determined during the period ending upon the expiration of such use restrictions pursuant to subparagraph (B) based upon the rents for comparable unassisted and unrestricted units in the area in which the covered properties are located; except that before May 1, 2012, the rental assistance payments for such project-based units in the covered property known as Georgetowne Houses II shall be restricted to the rent levels provided under the Emergency Low Income Housing Preservation Act of 1987.

(2) COVERED PROPERTIES.—For purposes of this subsection, the term “covered properties” means the housing developments known as Georgetowne Houses I and II (formerly identified by FHA project nos. 023-55058 and 023-55179), located in Boston, Massachusetts.

(3) FUNDING.—Amounts for the enhanced vouchers pursuant to this subsection shall be provided under amounts appropriated for tenant-based rental assistance otherwise authorized under section 8(t) of the United States Housing Act of 1937.

(4) APPLICABILITY.—This subsection shall take effect upon enactment and nothing in this subsection may be construed to require any administrative guidance.

SEC. 17. Demonstration program waiver authority.

(a) Authority To enter into agreements.—Notwithstanding any other provision of law, the Secretary of Housing and Urban Development may enter into such agreements as may be necessary with the Social Security Administration and the Secretary of Health and Human Services to allow for the participation, in any demonstration program described in subsection (c), by the Department of Housing and Urban Development and the use under such program of housing choice vouchers under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)).

(b) Waiver of income requirements.—The Secretary of Housing and Urban Development may, to extent necessary to allow rental assistance under section 8(o) of the United States Housing Act of 1937 to be provided on behalf of persons described in subsection (c) who participate in a demonstration program described in such subsection, and to allow such persons to be placed on a waiting list for such assistance, partially or wholly disregard increases in earned income for the purpose of rent calculations under section 3 for such persons.

(c) Demonstration programs.—A demonstration program described in this subsection is a demonstration program of a State that provides for persons with significant disabilities to be employed and continue to receive benefits under programs of the Department of Health and Human Services and the Social Security Administration, including the program of supplemental security income benefits under title XVI of the Social Security Act, disability insurance benefits under title II of such Act, and the State program for medical assistance (Medicaid) under title XIX of such Act.

SEC. 18. Authorization of appropriations.

There is authorized to be appropriated for fiscal year 2010 the amount necessary to provide public housing agencies with incremental assistance under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)) sufficient to assist 150,000 incremental dwelling units in such fiscal year, for—

(1) tenant-based assistance; and

(2) project-based voucher assistance for extremely low-income families, in conjunction with—

(A) funding from either of the funds established under section 1138 or 1339 of the Federal Housing Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4568, 4569);

(B) low-income housing tax credits provided under section 42 of the Internal Revenue Code of 1986;

(C) amounts provided under the community development block grant program under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.) and the HOME investment partnerships program under title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.); and

(D) State and local affordable housing funds and programs.

SEC. 19. Agency authority for utility payments in certain circumstances.

Section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new paragraph:

“(22) AUTHORITY OF PUBLIC HOUSING AGENCIES TO MAKE DIRECT PAYMENTS FOR UTILITIES WHEN OWNER FAILS TO PAY.—

“(A) IN GENERAL.—If the owner has failed to pay for utilities that are the responsibility of the owner under the lease or applicable law, the public housing agency is authorized to utilize subsidy payments otherwise due the owner to pay for continued utility service to avoid hardship to program participants.

“(B) NOTICE.—Before making utility payments as described in subparagraph (A), the public housing agency shall take reasonable steps to notify the owner that it intends to make payments to a utility provider in lieu of payments to the owner, except prior notification shall not be required in any case in which the unit will be or has been rendered uninhabitable due to the termination or threat of termination of service, in which case the public housing agency shall notify the owner within a reasonable time after making such payment.”.

SEC. 20. Utility data.

Section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new paragraph:

“(23) UTILITY DATA.—

“(A) PUBLICATION.—The Secretary shall 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) GUIDELINES FOR USE.—The Secretary shall establish guidelines providing for the use of such data in a manner that—

“(i) avoids unnecessary administrative burdens for public housing agencies; 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. 21. Project-based preservation vouchers.

(a) Enhanced vouchers.—Section 8(t) of the United States Housing Act of 1937 (42 U.S.C. 1437f(t)) is amended—

(1) by redesignating paragraph (4) as paragraph (5); and

(2) by inserting after paragraph (3) the following new paragraph:

“(4) PRESERVATION PROJECT-BASED VOUCHER ASSISTANCE.—Notwithstanding any other provision of law, in the case of a multifamily housing project with respect to which an eligibility event occurs or has occurred, project-based voucher assistance may be provided in accordance with subsection (o)(13)(R) in lieu of enhanced voucher assistance under this subsection. Such project-based voucher assistance shall not be subject to the provisions of this subsection, except as otherwise specifically provided in subsection (o)(13)(R).”.

(b) PHA project-based voucher assistance.—Paragraph (13) of section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)), as amended by the preceding provisions of this Act, is further amended by adding at the end the following new subparagraph:

“(R) PRESERVATION ASSISTANCE.—

“(i) AUTHORITY.—Project-based voucher assistance under this paragraph shall be made available in accordance with this subparagraph for multifamily housing projects for which an eligibility event (as such term is defined in subsection (t)) occurs or has occurred and for which enhanced voucher assistance would otherwise be, or has been, provided under subsection (t). Any such assistance shall be in lieu of enhanced voucher assistance under subsection (t) for tenants residing in the project and shall be provided by the Secretary to a public housing agency.

“(ii) REQUEST AND PROVISION.—If the owner of a multifamily housing project makes a request for project-based voucher assistance pursuant to this subparagraph for the project to a public housing agency that administers a program for assistance under subsection (o) for a jurisdiction within which the project is located, a contract for assistance under this subparagraph shall be provided with respect to the project, subject to clause (v).

“(iii) TIMING, COVERAGE, AND UNIT RENTS.—

“(I) REQUEST MADE BEFORE ELIGIBILITY EVENT.—In the case of a contract for assistance under this subparagraph with respect to a project that is requested prior to the occurrence of the eligibility event, the contract for assistance shall be provided, subject to clause (v), upon the occurrence of the eligibility event. Such contract shall cover all dwelling units in the project for which enhanced voucher assistance under subsection (t) would otherwise be provided.

“(II) REQUEST MADE AFTER ISSUANCE OF ENHANCED VOUCHERS.—In the case of a contract for assistance under this subparagraph with respect to a project that is requested after the issuance of enhanced vouchers under subsection (t) for the project, the contract shall be provided, subject to clause (v), as soon as possible. Such contract shall cover all dwelling units in the project that are occupied by tenants receiving such enhanced voucher assistance at the time the contract is effective.

“(III) COVERAGE OF ADDITIONAL DWELLING UNITS.—At the request of the owner of a multifamily housing project for which a contract for assistance is to be provided under this subparagraph, the public housing agency may contract with the owner for project-based voucher assistance under this subparagraph to cover additional dwelling units, if the public housing agency determines that such additional assistance is necessary or desirable to further the purposes reflected in clause (v).

“(IV) APPROVAL OF HIGHER RENTS.—At the request of the owner of a multifamily housing project for a contract for assistance under this subparagraph to establish rents at levels above those permitted by subparagraph (H), a public housing agency that has made the determinations required by clause (v) may request, and the Secretary may approve, higher unit rents if necessary to preserve housing opportunities that further the purposes of clause (v).

“(iv) PROJECTS IN MULTIPLE PHA JURISDICTIONS.—If the Secretary has not entered into a contract with a public housing agency to provide enhanced voucher assistance under subsection (t) for the project at the time the owner of a multifamily housing project requests assistance under this subparagraph, and the project is located within the jurisdiction for the program under subsection (o) of more than one public housing agency, in determining which agency will administer such assistance, the Secretary shall—

“(I) consider the ratio of the number of vouchers to be awarded under this subparagraph and of other project-based vouchers administered under this paragraph to the total number of vouchers administered by an agency; and

“(II) among other factors, provide preference to an agency for which the total number of project-based vouchers administered under this paragraph, including vouchers to be awarded pursuant to this subparagraph, would not exceed 50 percent of the total number of all vouchers to be administered by the agency after such award.

The Secretary shall establish guidelines for determining which agency will administer assistance if a unit is not located within the jurisdiction of any public housing agency that administers vouchers.

“(v) REQUIRED DETERMINATIONS.—As a condition of entering into a contract pursuant to this subparagraph, the public housing agency shall have determined, before entering into such contract that—

“(I) the housing to be assisted under the contract is economically viable; and

“(II)(aa) there is a significant demand for the housing;

“(bb) the housing will contribute to a community revitalization plan or to deconcentrating poverty and expanding housing and economic opportunities; or

“(cc) the continued affordability of the housing otherwise is an important asset to the community.

“(vi) INAPPLICABILITY OF GOALS.—Subparagraph (C) shall not apply to a housing assistance payment contract pursuant to this subparagraph.

“(vii) DISREGARD OF ASSISTANCE UNDER PERCENTAGE LIMITATION.—Amounts provided pursuant to this subparagraph shall not be considered for purposes of calculating the limitation under subparagraph (B).

“(viii) INAPPLICABILITY OF INCOME-MIXING REQUIREMENT.—Subparagraph (D) shall not apply with respect to a housing assistance payments contract pursuant to this subparagraph.

“(ix) ELIGIBILITY.—Subject only to clause (iii) and notwithstanding any other provision of law, any family residing in a multifamily housing project on the date of the eligibility event for the project who would otherwise be eligible for enhanced voucher assistance under subsection (t) shall be eligible for project-based voucher assistance pursuant to this subparagraph.”.

SEC. 22. Effect of foreclosure on section 8 tenancies.

(a) Use of rental assistance amounts.—Section 8(o)(7) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(7)), as amended by section 703 of division A of Public Law 111–22 (123 Stat. 1661), is amended—

(1) in subparagraph (F), by inserting after “occupied unit,” the following: “and if a public housing agency is unable to make payments under the contract to the immediate successor in interest after foreclosure, due to action or inaction by the successor in interest, including the rejection of payments or the failure of the successor to maintain the unit in compliance with paragraph (8), or an inability to identify the successor, the agency may use funds that would have been used to pay the rental amount on behalf of the family—

“(i) to pay for utilities that are the responsibility of the owner under the lease or applicable law, after taking reasonable steps to notify the owner that it intends to make payments to a utility provider in lieu of payments to the owner, except prior notification shall not be required in any case in which the unit will be or has been rendered uninhabitable due to the termination or threat of termination of service, in which case the public housing agency shall notify the owner within a reasonable time after making such payment; or

“(ii) for the family’s reasonable moving costs, including security deposit costs.”;

(2) by striking “except that this provision and the provisions related to foreclosure in subparagraph (C) shall not” in subparagraph (F) and inserting the following:

“The provisions related to foreclosure in subparagraphs (C) and (F)”; and

(3) in the matter after and below subparagraph (F), as amended by paragraph (2) of this subsection, by adding after the period at the end the following: “For purposes of subparagraphs (C) and (F), the term ‘immediate successor in interest’ includes a purchaser who purchases a property from an immediate successor in interest.”.

(b) Sunset.—Section 704 of division A of the Helping Families Save Their Homes Act (42 U.S.C. 1437f note; Public Law 111–22; 123 Stat. 1662) is amended—

(1) by striking “This title, and any amendments made by this title are” and inserting “Section 702 is”; and

(2) by striking “this title” and inserting “such section”.

SEC. 23. Study to identify obstacles to using vouchers in federally subsidized housing projects.

(a) Study.—The Comptroller General of the United States shall conduct a study of (1) the housing voucher program authorized under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)), and (2) other federally subsidized housing programs, to determine whether any statutory, regulatory, or administrative provisions of the housing voucher program or of other federally subsidized housing programs, or policies and practices of housing owners or public housing agencies or other agencies, may have the effect of making occupancy by voucher holders in federally subsidized housing projects more difficult to obtain than occupancy by non-voucher holders. In conducting the study required under this subsection the Comptroller General shall determine if any gaps exist in the statute, regulations, or administration of the housing voucher program or of other federally subsidized housing programs and policies and practices of housing owners or public housing agencies or other agencies that, if addressed, could eliminate or reduce obstacles to voucher holders in seeking occupancy in federally subsidized housing projects. Such study shall include data on the use of housing vouchers in federally subsidized housing projects.

(b) Definition.—As used in this section, the term “federally subsidized housing projects” includes projects assisted pursuant to the HOME investment partnerships program under title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.) and those projects receiving the benefit of low-income housing credits under section 42 of the Internal Revenue Code of 1986 (26 U.S.C. 42).

(c) Report.—Not later than 6 months after the date of enactment of this Act, the Comptroller General shall report to Congress the findings from the study required under subsection (a) and any recommendations for statutory, regulatory, or administrative changes.

SEC. 24. Interagency Council on Homelessness.

(a) Technical correction.—Section 202(e) of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11312), as amended by section 1004 of division B of Public Law 111–22, is amended by striking “Chairman” and inserting “Chairperson”.

(b) Duties.—Section 203 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11313), as amended by section 1004 of Public Law 111–22, is amended—

(1) in subsection (a)—

(A) by redesignating paragraphs (6) through (13) as paragraphs (9) through (16), respectively;

(B) in paragraph (1), by inserting “which shall set forth actions to accomplish the goal of ending homelessness,” after “National Strategic Plan to End Homelessness,”;

(C) in paragraph (3), by inserting before the semicolon at the end the following: “and ensure that related programs and activities to assist homeless individuals of Federal agencies are coordinated with each other”; and

(D) by inserting after paragraph (5) the following new paragraphs:

“(6) make recommendations, in the reports submitted pursuant to subsection (c) on—

“(A) long-term goals for the Congress to reduce homelessness; and

“(B) legislative strategies for the Congress to achieve such goals;

“(7) evaluate the Federal role in interacting and coordinating with State and local entities that address homelessness;

“(8) conduct research and develop methods—

“(A) through consultation with State and local agencies, to improve coordination between the Council and Federal agencies in existence upon the date of enactment of the Interagency Council on Homelessness Reform Act of 2009 that specifically deal with homelessness; and

“(B) to minimize the period during which individuals remain homeless;”; and

(2) in subsection (c), by adding at the end the following new paragraphs:

“(3) BIENNIAL REPORT.—The Council shall prepare and transmit to the President and the Congress a biennial report detailing the efforts of the Council to address homelessness.

“(4) PUBLIC AVAILABILITY.—The Council shall make each report submitted to the Congress pursuant to paragraph (1), (2), or (3) of this subsection, and the national plan and updates of such plan submitted pursuant to paragraph (1) of subsection (a), publicly available, including through posting on a World Wide Web site maintained by the Council.”.

(c) Authorization of appropriations.—Section 208 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11318), as amended by section 1004 of division B of Public Law 111–22, is amended by striking “fiscal years 2011” and inserting “each of fiscal years 2011 through 2015”.

SEC. 25. Study of effects of section 8 program on HUD budget and programs.

The Comptroller General of the United States shall conduct a study to identify and analyze the effects that the rental assistance program under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) has on the other programs administered by the Secretary of Housing and Urban Development and on the overall budget for the Department of Housing and Urban Development. Not later than the expiration of the 6-month period beginning on the date of the enactment of this Act, the Comptroller General shall submit a report to the Congress setting forth the results and conclusions of the study under this section.

SEC. 26. Housing innovation program.

(a) Establishment of program.—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 new section:

“SEC. 37. Housing innovation program.

“(a) Purpose.—The purpose of this section is to establish a program under which public housing agencies are given the flexibility to design, and the Secretary is given the responsibility to evaluate, innovative approaches to providing housing assistance that—

“(1) increase housing opportunities for low-, very low-, and extremely low-income families, including preserving, modernizing, rehabilitating, reconfiguring, or replacing public housing at risk of physical deterioration or obsolescence, developing additional affordable housing, providing supportive housing, and increasing the number of families receiving tenant-based rental assistance;

“(2) provide financial incentives and other support mechanisms to families to obtain employment and increase earned income, and achieve economic self-sufficiency, while protecting very low- and extremely low-income families from increased rent burdens;

“(3) utilize funds in a more effective or cost-efficient manner, including achieving energy, administrative, and other cost savings;

“(4) leverage other Federal, State, and local funding sources, including the low-income housing tax credit program, to expand and preserve affordable housing opportunities, including public housing;

“(5) test alternative rent-setting policies to determine whether rent determinations can be simplified and administrative cost savings can be realized while protecting extremely low- and very low-income families from increased rent burdens;

“(6) are subject to rigorous evaluation to test the effectiveness of such innovative approaches; and

“(7) are developed with the support of the local community and with the substantial participation of affected residents.

“(b) Program authority.—

“(1) SCOPE.—

“(A) PRIORITY STRATEGY AGENCIES.—The Secretary shall carry out a housing innovation program under this section under which the Secretary shall designate such number of public housing agencies, which shall not exceed 60, to participate in the housing innovation program as may be necessary, in conjunction with agencies approved for continued program participation pursuant to subsection (c), to demonstrate the effectiveness of the priority strategies identified in subsection (d)(2).

“(B) ADDITIONAL PROGRAM AGENCIES.—The Secretary shall also designate such number of additional agencies, which shall not exceed 20, to participate in the program under the terms of subsection (i) as may be necessary to demonstrate other innovative strategies as the Secretary or applicants may propose.

“(C) TRANSFER OF EXISTING MTW AGENCIES.—The Secretary shall also approve and transfer into the program existing MTW agencies pursuant to subsection (c).

“(2) DURATION.—The Secretary may carry out the housing innovation program under this section only during the 10-year period beginning on the date of the enactment of the Section 8 Voucher Reform Act of 2009.

“(c) Participation of existing MTW agencies.—

“(1) IN GENERAL.—Subject to the requirements of paragraph (2), all existing MTW agencies shall be designated to participate in the program.

“(2) CONDITIONS OF PARTICIPATION.—The Secretary shall approve and transfer into the housing innovation program under this section each existing MTW agency that the Secretary determines—

“(A) is not in default under such agreement;

“(B) is meeting the goals and objectives of its moving to work plan; and

“(C) with respect to any agency that has been audited by the Inspector General of the Department of Housing and Urban Development and that the Inspector General has determined was not complying with program rules, is currently complying with such rules; the Secretary shall provide an agency that the Secretary determines is not in compliance a reasonable period of time to achieve such compliance.

“(3) TERMS OF PARTICIPATION.—Any agency approved for transfer into the housing innovation program may, at its option, be subject to the provisions of subsection (d)(3), in lieu of an agreement currently in place with the Secretary for participation in the Moving to Work program. Each agency shall, within two years after the date of the enactment of the Section 8 Voucher Reform Act of 2009, make changes to its policies that were implemented before such date of enactment in order to comply with the requirements of this section. Existing MTW agencies shall not be required to comply with any requirements under subsection (d).

“(d) Additional agencies.—

“(1) PROPOSALS; SELECTION PROCESS.—In addition to agencies participating in the program pursuant to subsection (c), the Secretary shall, within 12 months after such date of enactment, select public housing agencies to participate in the program pursuant to a competitive process that meets the following requirements:

“(A) Any public housing agency may be selected to participate in the program, except that not more than 5 agencies that are near-troubled under the public housing assessment system and/or section 8 management assessment program may be selected, and except that any agency that is a troubled agency under either such assessment program or for which the Secretary has hired an alternative management entity for such agency or has taken possession of all or any part of such agency’s public housing program shall not be eligible for participation. Any near-troubled public housing agency participating in the program shall remain subject to the requirements of this Act governing tenant rent contributions, eligibility, and continued participation, and may not adopt policies described in subsection (e)(4) (relating to rents and requirements for continued occupation and participation).

“(B) The process provides, to the extent possible based on eligible agencies submitting applications and taking into account existing MTW agencies participating pursuant to subsection (c), for representation among agencies selected of agencies having various characteristics, including both large and small agencies, agencies serving urban, suburban, and rural areas, and agencies in various geographical regions throughout the United States, and which may include the selection of agencies that only administer the voucher program under section 8(o).

“(C) Any agency submitting a proposal under this paragraph shall have provided notice to residents and the local community, not later than 30 days before the first of the two public meetings required under subparagraph (D).

“(D) The agency submitting a proposal shall hold two public meetings to receive comments on the agency’s proposed application, on the implications of changes under the proposal, and the possible impact on residents.

“(E) The process includes criteria for selection, as follows:

“(i) The extent to which—

“(I) if proposal is for the purpose of carrying out the priority strategy under paragraph (2)(A) of this subsection, the proposal is likely to achieve the purposes of increasing housing opportunities for low-, very low-, and extremely low-income families, including preserving, modernizing, rehabilitating, reconfiguring, or replacing public housing at risk of physical deterioration or obsolescence, developing additional affordable housing, providing supportive housing, or increasing the number of families receiving tenant-based rental assistance, or a combination of these purposes;

“(II) if the proposal is for the purpose of carrying out the priority strategy under paragraph (2)(B) of this subsection, the proposal is likely to achieve the purposes of families obtaining employment, increasing earned income, or achieving economic self-sufficiency, while protecting extremely low- and very low-income families from increased rent burdens;

“(III) if the proposal is for the purpose of carrying out an innovative strategy under paragraph (2)(C) of this subsection, the proposal is likely to utilize funds in a more effective or cost-efficient manner, including achieving energy, administrative, or other cost-savings; or

“(IV) if the proposal is for the purpose of carrying out an innovative strategy pursuant to subsection (b)(1)(B), the proposal is likely to achieve the goals and objectives of such strategy.

“(ii) The extent to which the proposal generally identifies statutory provisions and existing rules and regulations that impede achievement of the goals and objectives of the proposal and an explanation of why a waiver of such statutory provisions, rules, and regulations is necessary to achieve such goals and objectives.

“(iii) The extent to which the agency has a successful history of implementing or has expertise in strategies similar to those set forth in the agency’s proposal.

“(iv) The extent of commitment and funding for carrying out the proposal by local and State government agencies and nonprofit organizations, including the provision of additional funding and other services, and the extent of support for the proposal by residents, resident advisory boards, and members of the local community.

“(v) Such other factors as the Secretary may establish, in consultation with participating agencies and agencies interested in participating in the program, program stakeholders, and any entity conducting evaluations pursuant to subsection (f).

“(2) PRIORITY STRATEGIES.—For purposes of the first sentence of paragraph (b)(1), the following are priority strategies:

“(A) INCREASING HOUSING OPPORTUNITIES.—A strategy of development of increasing housing opportunities for low-, very low-, and extremely low-income families, including preserving, modernizing, rehabilitating, reconfiguring, or replacing public housing at risk of physical deterioration or obsolescence, developing additional affordable housing, providing supportive housing, or increasing the number of families receiving tenant-based rental assistance, or a combination of these purposes, and which may include leveraging other Federal, State, and local funding sources.

“(B) RENT REFORMS AND FAMILY SELF-SUFFICIENCY.—A strategy to implement rent reforms and other self-sufficiency incentives or resources, which shall be designed to help families obtain employment, increase their earned income, or achieve economic self-sufficiency, while protecting extremely low- and very low-income families from increased rent burdens.

“(C) COST-EFFECTIVENESS.—A strategy to utilize funds in a more effective or cost-efficient manner, including achieving energy, administrative, or other cost-savings.

“(3) CONTRACT AMENDMENT.—After selecting agencies under this subsection, the Secretary shall promptly amend the applicable annual contributions contracts of such agencies to provide that—

“(A) subject to compliance with all program rules under this section, such agencies may implement any policies and activities that are not inconsistent with this section, without specifying such policies and activities in such amendment and without negotiating or entering into any other agreements with the Secretary specifying such policies and activities; and

“(B) the policies and activities to be implemented by an agency under the program in a given year shall be described in and subject to the requirements of the annual plan under subsection (e)(11).

“(4) MAINTAINING PARTICIPATION RATE.—If, at any time after the initial selection period under paragraph (1), the number of public housing agencies participating in the program falls below the number selected pursuant to paragraph (1), the Secretary shall promptly solicit applications from and select public housing agencies to participate in the program under the terms and conditions for application and selection provided in this section to increase the number of participating agencies to the number initially selected pursuant to paragraph (1).

“(e) Program requirements.—

“(1) PROGRAM FUNDS.—

“(A) IN GENERAL.—To carry out a housing innovation program under this section, the participating agency may use amounts provided to the agency from the Operating Fund under section 9(e), amounts provided to the agency from the Capital Fund under section 9(d), and amounts provided to the agency for voucher assistance under section 8(o). Such program funds may be used for any activities that are authorized by section 8(o) or 9, or for other activities that are not inconsistent with this section, which may include, without limitation—

“(i) providing capital and operating assistance, and financing for housing previously developed or operated pursuant to a contract between the Secretary and such agency;

“(ii) the acquisition, new construction, rehabilitation, financing, and provision of capital or operating assistance for low-income housing (including housing other than public housing) and related facilities, which may be for terms exceeding the term of the program under this section in order to secure other financing for such housing;

“(iii) costs of site acquisition and improvement, providing utility services, demolition, planning, and administration of activities under this paragraph;

“(iv) housing counseling for low-income families in connection with rental or homeownership assistance provided under the program;

“(v) safety, security, law enforcement, and anticrime activities appropriate to protect and support families assisted under the program;

“(vi) tenant-based rental assistance, which may include the project-basing of such assistance;

“(vii) appropriate and reasonable financial assistance that is required to preserve low-income housing otherwise assisted under programs administered by the Secretary or under State or local low-income housing or public housing programs; and

“(viii) family self-sufficiency activities for low-income families in connection with rental or homeownership assistance provided under the program.

“(B) COMBINING FUNDS.—Notwithstanding any other provision of law, a participating agency may combine and use program funds for any activities authorized under this section, except that a participating agency may use funds provided for assistance under section 8(o) for activities other than those authorized under section 8(o) only if (i) in the calendar year prior to its participation in the program, the agency utilized not less than 95 percent of such funds allocated for that calendar year for such authorized activities or 95 percent of its authorized vouchers; or (ii) after approval to participate in the program, the agency achieves such utilization for a 12-month period. Such limitation shall not apply to participating agencies approved by the Secretary to combine funds from sections 8 and 9 of the Act prior to enactment of this section. A public housing agency that uses funds provided from assistance under section 8(o) for activities not authorized under such subsection may not terminate assistance to families assisted under such subsection on the grounds of inadequate funding to the extent such inadequacy is caused by such use of funds for purposes not authorized under section 8(o).

“(2) USE OF PROGRAM FUNDS.—In carrying out the housing innovation program under this section, each participating agency shall continue to assist—

“(A) not less than substantially the same number of eligible low-income families under the program as it assisted in the base year for the agency; and

“(B) a comparable mix of families by family size, subject to adjustment to reflect changes in the agency’s waiting list, except that the Secretary may approve exceptions to such requirements for up to 3 years based on modernization or redevelopment activities proposed in an annual plan submitted and approved in accordance with paragraph (11).

Determinations with respect to the number of families required to be served shall be adjusted to reflect any allocation of additional vouchers under section 8(o), any change in annual voucher proration factor, or such other appropriate adjustments as the Secretary may establish. For purposes of subparagraphs (A) and (B), the term ‘base year’ means, with respect to existing MTW agencies, the first full calendar year prior to approval for entry into the moving to work demonstration. The Secretary shall monitor and enforce compliance with the requirements of subparagraph (A) on an annual basis.

“(3) RETAINED PROVISIONS.—Each agency that is approved for program participation pursuant to subparagraph (A) or (B) of subsection (b)(1) shall comply with all provisions of this Act except those statutory provisions and existing rules and regulations generally identified in the application for participation in the program, except that the Secretary may approve requests by an agency to waive compliance with other statutes, regulations, and rules pursuant to this Act, consistent with other program rules, if the Secretary determines that such a request would further the goals and objectives identified in the application for participation in the program (taking into consideration public and resident input pursuant to the procedure under paragraph (4)) or would further the purposes identified in subparagraphs (B) and (C) of subsection (f)(1). Notwithstanding any other provision of this section, families receiving assistance under this section shall retain the same rights of judicial review of agency action as they would otherwise have had if the agency were not participating in the program, and each participating agency, including existing MTW agencies that are approved for transfer into the program pursuant to subsection (c), shall comply with the following provisions of this Act:

“(A) Subsections (a)(2)(A) and (b)(1) of section 16 (relating to targeting for new admissions in the public housing and voucher programs).

“(B) Section 2(b) (relating to tenant representatives on the public housing agency board of directors).

“(C) Section 3(b)(2) (relating to definitions for the terms ‘low-income families’ and ‘very low-income families’).

“(D) Section 5(A)(e) (relating to the formation of and consultation with a resident advisory board).

“(E) Sections 6(f)(1) and 8(o)(8)(B) (relating to compliance of units assisted with housing quality standards or other codes).

“(F) Sections 6(c)(3), 6(c)(4)(i), and 8(o)(6)(B) (relating to rights of public housing applicants and existing procedural rights for applicants under section 8(o)).

“(G) Section 6(k) (relating to grievance procedures for public housing tenants) and comparable procedural rights for families assisted under section 8(o).

“(H) Section 6(l) (relating to public housing lease requirements), except that for units assisted both with program funds and low-income housing tax credits, the initial lease term may be less than 12 months if required to conform lease terms with such tax credit requirements.

“(I) Section 7 (relating to designation of housing for elderly and disabled households), except that a participating agency may make such designations (at initial designation or upon renewal) for a term of up to 5 years if the agency includes in its annual plan under paragraph (11) an analysis of the impact of such designations on affected households and such designation is subject to the program evaluation. Any participating agency with a designated housing plan that was approved under the moving to work demonstration may continue to operate under the terms of such plan for a term of 5 years (with an option to renew on the same terms for an additional 5 years) if it includes in its annual plan an analysis of the impact of such designations on affected households and is subject to evaluation under subsection (f).

“(J) Subparagraphs (C) through (E) of section 8(o)(7) and section 8(o)(20) (relating to lease requirements and eviction protections for families assisted with tenant-based assistance).

“(K) Section 8(o)(13)(B) (relating to a percentage limitation on project-based assistance), except that for purposes of this subparagraph such section shall be applied by substituting ‘50 percent’ for ‘20 percent’, and all voucher funding that is used for non-tenant based assistance purposes shall count towards this calculation.

“(L) Section 8(o)(13)(E) (relating to resident choice for tenants of units with project-based vouchers), except with respect to—

“(i) in the case of agencies participating in the moving to work demonstration, any housing assistance payment contract entered into before or within 2 years after the enactment of this section;

“(ii) project-based vouchers that replace public housing units;

“(iii) not more than 10 percent of the vouchers available to the participating agency upon entering the housing innovation program under this section; and

“(iv) any project-based voucher program that is subject to evaluation under subsection (f).

Notwithstanding the exceptions under this subparagraph, an agency may not eliminate resident choice under section 8(o)(13)(E) for more than 25 percent of its authorized vouchers.

“(M) Section 8(r) (relating to portability of voucher assistance), except that a participating agency may receive funding for portability obligations under section 8(dd) in the same manner as other public housing agencies.

“(N) Sections 8(ee) and 6(u) (relating to records, certification and confidentiality regarding domestic violence).

“(O) Subsections (a) and (b) of section 12 (relating to payment of prevailing wages).

“(P) Section 18 (relating to demolition and disposition of public housing).

“(Q) Requirements regarding—

“(i) establishment of resident councils and jurisdiction-wide resident organizations;

“(ii) public housing agency support for such councils and organizations; and

“(iii) involvement of such councils and organizations in public housing agency operations;.

as authorized under sections 3(c)(2), 6(c)(5)(C), and 9(e) and implemented by applicable regulations.

“(4) RENTS AND REQUIREMENTS FOR CONTINUED OCCUPANCY OR PARTICIPATION.—

“(A) BEFORE POLICY CHANGE.—Before adopting any policy pursuant to participation in the housing innovation program under this section that would make a material adverse change to the requirements of this Act regarding tenant rents or contributions, or conditions of continued occupancy or participation, a participating agency shall complete each of the following actions:

“(i) The agency shall conduct an impact analysis of the proposed policy on families the agency is assisting under the program under this section and on applicants on the waiting list, including analysis of the incidence and severity of rent burdens greater than 30 percent of adjusted income on households of various sizes and types and in various income tiers, that would result, if any, without application of the hardship provisions. The analysis with respect to applicants on the waiting list may be limited to demographic data provided by the applicable consolidated plan, information provided by the Secretary, and other generally available information. The proposed policy, including provisions for addressing hardship cases and transition provisions that mitigate the impact of any rent increases or changes in the conditions of continued occupancy or participation, and data from this analysis shall be made available for public inspection and copying, on request, and for access through the Internet, for at least 60 days in advance of the public meeting described in clause (ii).

“(ii) The agency shall hold a public meeting regarding the proposed change, including the hardship provisions, which may be combined with a public meeting on the draft annual plan under paragraph (11) or the annual report under subsection (h)(2).

“(iii) The board of directors or other similar governing body of the agency shall approve the change in public session.

“(iv) The agency shall obtain approval from the Secretary of the annual plan or plan amendment. The Secretary may approve a plan or amendment containing a material change to the requirements of this Act regarding tenant rents or contributions, or conditions of continued occupancy or participation, only if the agency agrees that such policy may be included as part of the national evaluation.

“(B) AFTER POLICY CHANGE.—After adopting a policy described in subparagraph (A), a program agency shall complete each of the following actions:

“(i) The agency shall provide adequate notice to residents, which shall include a description of the changes in the public housing lease or participation agreement that may be required and of the hardship or transition protections offered.

“(ii) In the case of any additional requirements for continued occupancy or participation, the agency shall execute a lease addendum or participation agreement specifying the requirements applicable to both the resident and the agency. A resident may bring a civil action to enforce commitments of the agency made through the lease addendum or participation agreement.

“(iii) The agency shall reassess rent, subsidy level, and policies on program participation no less often than every two years, which shall include preparing a revised impact analysis, and make available for public inspection and copying, on request, and for access through the Internet, the results of such reassessment and impact analysis. The requirement under this clause may be met by sufficiently detailed interim reports, if any, by the national evaluating entity.

“(iv) The agency shall include in the annual report under subsection (h)(2) information sufficient to describe any hardship requests, including the number and types of requests made, granted, and denied, the use of transition rules, and adverse impacts resulting from changes in rent or continued occupancy policies, including actions taken by the agency to mitigate such impacts and impacts on families no longer assisted under the program.

“(C) APPLICABILITY TO EXISTING MTW AGENCIES.—An existing MTW agency that, before the date of the enactment of this section, implemented material changes to the requirements of this Act regarding tenant rents or contributions, or conditions of continued occupancy or participation, as part of the moving to work demonstration shall not be subject to subparagraph (A) with regard to such previously implemented changes, but shall comply with the requirements of subparagraph (B)(ii) and provide the evaluation and impact analysis required by subparagraph (B)(iii) by the end of the second agency fiscal year ending after such date of enactment.

“(5) PROHIBITION AGAINST DECREASE IN PROGRAM FUNDS.—The amount of program funds a participating agency receives shall not be diminished by its participation in the housing innovation program under this section.

“(6) RENT BURDEN.—A participating agency may not adopt rent policies that result in families making substantially higher rent payments than would customarily be made by families of comparable income under the program under which assistance is provided.

“(7) TIME LIMITS.—A participating agency may implement time limits on the term of housing assistance received by families under the program only if—

“(A) such limits are for a period of time not shorter than 5 years; and

“(B) enforcement of such limits is suspended for any period of time during which the unemployment rate in the area exceeds 10 percent.

“(8) EMPLOYMENT CONDITIONS.—A participating agency may condition the receipt of housing assistance by families under the program on requirements relating to the employment status or related activities of one or more family members only if—

“(A) such requirements are consistent with the program for block grants to States for temporary assistance for needy families under part A of title IV of the Social Security Act;

“(B) the agency establishes reasonable hardship exemptions; and

“(C) enforcement of such requirements is suspended for any period of time during which the unemployment rate in the area exceeds 10 percent.

“(9) SUBMISSION OF INFORMATION.—As part of the annual report required under subsection (h)(2), each participating agency shall submit information annually to the Secretary regarding families assisted under the program of the agency and comply with any other data submissions required by the Secretary for purposes of evaluation of the program under this section.

“(10) PUBLIC AND RESIDENT PARTICIPATION.—Each participating agency shall provide opportunities for resident and public participation in the annual plan under paragraph (11), as follows:

“(A) NOTICE TO RESIDENTS.—

“(i) NOTICE.—Each year, the agency shall provide notice to the low-income families it serves under the programs authorized by this section as to the impact of proposed policy changes and program initiatives and of the schedule of resident advisory board and public meetings for the annual plan.

“(ii) MEETING.—The agency shall hold at least one meeting with the resident advisory board (including representatives of recipients of assistance under section 8) to review the annual plan for each year.

“(B) PUBLIC MEETING.—With respect to each annual plan, the agency shall hold at least one annual public meeting to obtain comments on the plan, which may be combined with a meeting to review the annual report. In the case of any agency that administers, in the aggregate, more than 15,000 public housing units and vouchers, or that operates in more than one county, the agency shall hold additional meetings in locations that promote attendance by residents and other stakeholders.

“(C) PUBLIC AVAILABILITY.—Before adoption of any annual plan, and not less than 30 days before the public meeting required under subparagraph (A)(ii) with respect to the plan, the agency shall make the proposed annual plan available for public inspection and copying, on request, and for access through the Internet. The annual plan shall be made available for public inspection not less than 30 days before approval by the board of directors (or other similar governing body) of the agency and shall remain publicly available.

“(D) BOARD APPROVAL.—Before submitting an annual plan or annual report to the Secretary, the plan or report, as applicable, shall be approved in a public meeting by the board of directors or other governing body of the agency.

“(11) ANNUAL PLAN.—

“(A) REQUIREMENT.—For each year that a participating agency participates in the housing innovation program under this section, the agency shall submit to the Secretary, in lieu of all other planning requirements, an annual plan under this paragraph.

“(B) CONTENTS.—Each annual plan shall include the following information:

“(i) A list and description of all program initiatives and generally applicable policy changes, including references to affected provisions of law or the implementing regulations affected.

“(ii) A description and comparison of changes under the housing innovation program of the agency from the plan for such program for the preceding year.

“(iii) A description of property redevelopment or portfolio repositioning strategies and proposed changes in policies or uses of funds required to implement such strategies.

“(iv) Documentation of public and resident participation sufficient to comply with the requirements under paragraphs (4) and (10), including a copy of any recommendations submitted in writing by the resident advisory board of the agency and members of the public, a summary of comments, and a description of the manner in which the recommendations were addressed.

“(v) Certifications by the agency that—

“(I) the annual plan will be carried out in conformity with title VI of the Civil Rights Act of 1964, the Fair Housing Act, section 504 of the Rehabilitation Act of 1973, title II of the Americans with Disabilities Act of 1990, and the rules, standards, and policies in the approved plan;

“(II) the agency will affirmatively further fair housing; and

“(III) the agency has complied and will continue to comply with its obligations under the national evaluation.

“(vi) A description of the agency’s local asset management strategy for public housing properties, which shall be in lieu of any other asset management, project based management or accounting, or other system of allocating resources and costs to participating agency assets or cost centers that the Secretary may otherwise impose under this Act.

“(C) CHANGES.—If the agency proposes to make material changes in policies or initiatives in the plan during the year covered by the plan, the agency shall consult with the resident advisory board for the agency established pursuant to section 5A(e) and the public regarding such changes before their adoption.

“(D) APPROVAL PROCESS.—

“(i) TIMING.—The Secretary shall review and approve or disapprove each annual plan submitted to the Secretary within 45 days after such submission. The Secretary, directly or through the public housing agency, shall make information relating to such approval or disapproval available to all members of the Resident Advisory Board of the public housing agency.

“(ii) STANDARDS FOR DISAPPROVAL.—The Secretary may disapprove a plan only if—

“(I) the Secretary reasonably determines, based on information contained in the annual plan or annual report, that the agency is not in compliance with the requirements of this section;

“(II) the annual plan or most recent annual report is not consistent with other reliable information available to the Secretary; or

“(III) the annual plan or annual report or the agency’s activities under the program are not otherwise in accordance with applicable law.

“(iii) FAILURE TO DISAPPROVE.—If a submitted plan is not disapproved within 45 days after submission, the plan shall be considered to be approved for purposes of this section. The preceding sentence shall not preclude judicial review regarding such compliance pursuant to chapter 7 of title 5, United States Code, or an action regarding such compliance under section 1979 of the Revised Statutes of the United States (42 U.S.C. 1983).

“(f) Evaluation of performance.—

“(1) IN GENERAL.—The Secretary shall conduct detailed evaluations of all public housing agencies participating in the program under this section—

“(A) to determine the level of success of each public housing agency in achieving the goals and objectives of the application to participate in the program;

“(B) to determine the level of success of different types of proposals in achieving the priority strategies of subsection (d)(2) or other innovative strategies identified pursuant to subsection (b)(1); and

“(C) to identify program models that can be replicated by other agencies to achieve such success.

“(2) EVALUATION METHODOLOGY.—Evaluations under this subsection shall be conducted utilizing rigorous research methodology which shall incorporate, where appropriate and to the extent funding is available, the following:

“(A) Comparison of the impact on families to similar types of families not subject to such policies.

“(B) Comparisons of alternative strategies for advancing common goals.

“(C) An examination of the costs, outputs, and outcomes of tested strategies.

“(D) A process evaluation that examines the challenges faced in implementing tested strategies and how those challenges were overcome.

“(E) A qualitative examination of the impacts of tested strategies on affected families, including families on agency waiting lists.

“(F) An examination of the impact of tested strategies on the housing needs and conditions of the jurisdiction in which the agency works.

“(G) Appropriate sensitivity to the costs that evaluation places on participating agencies, including a recognition that smaller agencies may have more difficulty than larger agencies in responding to data requests.

“(3) ADVISORY COUNCIL.—The Secretary shall establish an Advisory Council to provide input on the policies and strategies to be tested in evaluations under this subsection, data collection protocols, and other matters related to the success of the evaluation, and to assist the evaluating entity and the Secretary in interpreting the findings and formulating recommendations to the Congress to be included in the final report. The Secretary may also establish a separate Technical Advisory Group to provide input on technical issues associated with the evaluation.

“(4) REPORTS.—

“(A) IN GENERAL.—The Secretary shall submit three reports to the Congress, as provided in subparagraph (B), evaluating the programs of all public housing agencies participating in the program under this section and all agencies participating in the moving to work demonstration. Each such report shall include findings and recommendations for any appropriate legislative action.

“(B) TIMING.—The reports under this paragraph shall include—

“(i) an initial report, which shall be submitted before the expiration of the 2-year period beginning on the date on which additional agencies are approved for participation pursuant to subsection (d);

“(ii) an interim report, which shall be submitted before the expiration of the 4-year period beginning on such date of approval; and

“(iii) a final report, which shall be submitted before the expiration of the 10-year period beginning on the date of the enactment of the Section 8 Voucher Reform Act of 2009.

“(5) EVALUATING ENTITY.—The Secretary may contract out the responsibilities under this paragraphs (1) and (2) to an independent entity that is qualified to perform such responsibilities.

“(6) PERFORMANCE MEASURES.—The Secretary or the evaluating entity, as applicable, shall establish performance measures, which may include—

“(A) a baseline performance level against which program activities may be evaluated; and

“(B) performance measures for each of the five purposes identified in paragraphs (1) through (5) of subsection (a).

“(g) Impact of policy on families being assisted.—

“(1) MODIFICATION OF POLICY.—If an evaluation of an agency pursuant to subsection (f)(1)(A) includes evidence that a policy adopted by an agency is or has been harmful to families assisted by the agency, the Secretary may, after the publication of either the initial or the interim report pursuant to subsection (f)(4)(B), require such agency to take appropriate actions to modify such policy to ameliorate such harm.

“(2) DETERMINATION.—The Secretary may not take such action unless the Secretary has made a determination that such policy is causing or has caused measurable harm to families currently or previously assisted, based on a reduction in the overall number of families receiving housing assistance, noncompliance with the provision of subsection (e)(6) (relating to rent burdens), specific types of families losing their housing assistance, a reduction in the number of affordable rental housing units operated by the agency, noncompliance with the requirements of subsection (e)(3)(A) (relating to targeting), or a combination of such factors.

“(3) ADVICE AND OPPORTUNITY TO CONTEST.—Before taking such action, the Secretary shall advise the agency and give the agency a fair opportunity to contest such determination or action. If an agency contests such a determination or action, the Secretary shall provide an opportunity for interested parties to submit additional relevant evidence.

“(h) Recordkeeping, reports, and audits.—

“(1) RECORDKEEPING.—Each public housing agency participating in the program under this section shall keep such records as the Secretary may prescribe as reasonably necessary to disclose the amounts and the disposition of amounts under the program, to ensure compliance with the requirements of this section, and to measure performance.

“(2) REPORTS.—In lieu of all other reporting requirements, each such agency participating in the program shall submit to the Secretary an annual report in a form and at a time specified by the Secretary. Each annual report shall include the following information:

“(A) A description, including an annual consolidated financial report, of the sources and uses of funds of the agency under the program, which shall account separately for funds made available under section 8 and subsections (d) and (e) of section 9, and shall compare the agency’s actions under the program with its annual plan for the year.

“(B) An annual audit that complies with the requirements of Circular A–133 of the Office of Management and Budget, including the OMB Compliance Supplement.

“(C) A description of each hardship exception requested and granted or denied, and of the use of any transition rules.

“(D) Documentation of public and resident participation sufficient to comply with the requirements under paragraph (7).

“(E) A comparison of income and the sizes and types of families assisted by the agency under the program compared to those assisted by the agency in the base year.

“(F) Every two years, an evaluation of rent policies, subsidy level policies, and policies on program participation.

“(G) A description of any ongoing local evaluations and the results of any local evaluations completed during the year.

“(3) ACCESS TO DOCUMENTS BY SECRETARY.—The Secretary shall have access for the purpose of audit and examination to any books, documents, papers, and records that are pertinent to assistance in connection with, and the requirements of, this section.

“(4) ACCESS TO DOCUMENTS BY THE COMPTROLLER GENERAL.—The Comptroller General of the United States, or any of the duly authorized representatives of the Comptroller General, shall have access for the purpose of audit and examination to any books, documents, papers, and records that are pertinent to assistance in connection with, and the requirements of, this section.

“(5) REPORTS REGARDING EVALUATIONS.—The Secretary shall require each public housing agency participating in the program under this section to submit to the Secretary such information as the Secretary considers appropriate to permit the Secretary to evaluate (pursuant to subsection (f)) the performance and success of the agency in achieving the purposes of the program.

“(i) Additional program agencies.—In participating in the program under the terms of this subsection, the public housing agencies designated for such participation shall be subject to the requirements of this section, and the additional following requirements:

“(1) APPLICABILITY OF CERTAIN EXISTING PROVISIONS.—Such agencies shall be subject to the provisions of—

“(A) subsections (a) and (b) of section 3; and

“(B) section 8(o), except for paragraph (11) and except as the requirements of section 8(o) are modified by subsection (e)(3) of this section.

“(2) NO TIME LIMITS.—Such agencies may not impose time limits on the term of housing assistance received by families under the program.

“(3) NO EMPLOYMENT CONDITIONS.—Such agencies may not condition the receipt of housing assistance by families under the program on the employment status of one or more family members.

“(4) ONE-FOR-ONE REPLACEMENT.—

“(A) CONDITIONS ON DEMOLITION.—Such agencies may not demolish or dispose of any dwelling unit of public housing operated or administered by such agency (including any uninhabitable unit and any unit previously approved for demolition) except pursuant to a plan for replacement of such units in accordance with, and approved by the Secretary of Housing and Urban Development pursuant to, subparagraph (B).

“(B) PLAN REQUIREMENTS.—The Secretary may not approve a plan that provides for demolition or disposition of any dwelling unit of public housing referred to in subparagraph (A) unless—

“(i) such plan provides for outreach to public housing agency residents in accordance with paragraph (5);

“(ii) not later than 60 days before the date of the approval of such plan, such agency has convened and conducted a public hearing regarding the demolition or disposition proposed in the plan;

“(iii) such plan provides that for each such dwelling unit demolished or disposed of, such public housing agency will provide an additional dwelling unit through—

“(I) the acquisition or development of additional public housing dwelling units; or

“(II) the acquisition, development, or contracting (including through project-based assistance) of additional dwelling units that are subject to requirements regarding eligibility for initial or continued occupancy, tenant contribution toward rent, and long-term affordability restrictions which are comparable to public housing units, except that no household may be prevented from occupying a replacement dwelling unit provided pursuant to clause (iii) except to the extent specifically provided by any other provision of Federal law (including subtitle F of title V of the Quality Housing and Work Responsibility Act of 1998 (42 U.S.C. 13661 et seq.; relating to safety and security in public and assisted housing, subtitle D of title VI of the Housing and Community Development Act of 1992 (42 U.S.C. 13611 et seq.; relating to preferences for elderly and disabled residents), and section 16(f) of this Act (42 U.S.C. 1437n(f)); relating to ineligibility of persons convicted of methamphetamine offenses);

“(iv) such plan provides for a right, and implementation of such right, to occupancy of additional dwelling units provided in accordance with clause (iii), for households who, as of the time that dwelling units demolished or disposed of were vacated to provide for such demolition or disposition, were occupying such dwelling units;

“(v) such plan provides that the proposed demolition or disposition and relocation will be carried out in a manner that affirmatively furthers fair housing, as described in subsection (e) of section 808 of the Civil Rights Act of 1968;

“(vi) such plan provides for a mixed-income development on the site of the original public housing, with at least one-third of all dwelling units being provided through the development of additional public housing dwelling units, except that upon a showing by the agency, if the Secretary determines that such location is infeasible, an agency may locate such a development in areas within the jurisdiction of the agency having low concentrations of poverty; and

“(vii) to the extent that such plan provides for the provision of replacement or additional dwelling units, or redevelopment, in phases over time, such plan provides that the ratio of dwelling units described in subclauses (I) and (II) of clause (iii) that are provided in any such single phase to the total number of dwelling units provided in such phase is not less than the ratio of the aggregate number of such dwelling units provided under the plan to the total number of dwelling units provided under the plan.

“(C) INAPPLICABLE PROVISIONS.—Subparagraphs (B) and (D) of section 8(o)(13) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) shall not apply with respect to vouchers used to comply with the requirements of subparagraph (B)(iii) of this paragraph.

“(D) MONITORING.—The Secretary shall provide for the appropriate field offices of the Department to monitor and supervise the enforcement of this paragraph and plans approved under this paragraph and to consult, regarding such monitoring and enforcement, with resident councils of, and resident of public housing operated or administered by, the agency.

“(5) COMPREHENSIVE OUTREACH PLAN.—No program funds of such agencies may be use to demolish or dispose of any public housing dwelling units except in accordance with a comprehensive outreach plan for such activities, developed by the agency in conjunction with the residents of the public housing agency, as follows:

“(A) The plan shall be developed by the agency and a resident task force, which may include members of the Resident Council, but may not be limited to such members, and which shall represent all segments of the population of residents of the agency, including single parent-headed households, the elderly, young employed and unemployed adults, teenage youth, and disabled persons.

“(B) The votes and agreements regarding the plan shall involve—

“(i) in the case of any public housing agency that administers 250 or fewer public housing dwelling units, not less than 10 percent of affected residents; and

“(ii) in the case of any public housing agency that administers more than 250 public housing dwelling units, not less than 25 affected residents.

“(C) The plan shall provide for and describe outreach efforts to inform residents of the program under this subsection, including a door-to-door information program, monthly newsletters to each resident household, monthly meetings dedicated solely to every aspect of the proposed development, including redevelopment factors, which shall include the one-for-one replacement requirement under paragraph (4), resident rights to return, the requirements of the program under this subsection, new resident support and community services to be provided, opportunities for participation in architectural design, and employment opportunities for residents, which shall make available at least 30 percent of the total hours worked at all such employment, and shall also make available at least 25 percent of unskilled jobs in demolition activities and 25 percent of unskilled jobs in construction activities related to the redevelopment project, including job training, apprenticeships, union membership assistance.

“(D) The plan shall provide for regularly scheduled monthly meeting updates and a system for filing complaints about any aspect of the redevelopment process.

“(j) Definitions.—For purposes of this section, the following definitions shall apply:

“(1) EXISTING MTW AGENCY.—The term ‘existing MTW agency’ means a public housing agency that as of the date of the enactment of the Section 8 Voucher Reform Act of 2009 has an existing agreement with the Secretary pursuant to the moving to work demonstration, or is authorized to enter into such an agreement under section 230 of the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2008 (Public Law 110–161; 121 Stat. 2438) or section 236 of the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2009 (Division I of Public Law 111–8).

“(2) BASE YEAR.—The term ‘base year’ means, with respect to a participating agency, the agency fiscal year or calendar year, as appropriate, most recently completed prior to selection and approval for participation in the housing innovation program under this section.

“(3) MOVING TO WORK DEMONSTRATION.—The term ‘moving to work demonstration’ means the moving to work demonstration program under section 204 of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1996 (42 U.S.C. 1437f note).

“(4) PARTICIPATING AGENCIES.—The term ‘participating agencies’ means public housing agencies designated and approved for participation, and participating, in the housing innovation program under this section.

“(5) PROGRAM FUNDS.—The term ‘program funds’ means, with respect to a participating agency, any amounts that the agency is authorized, pursuant to subsection (e)(1), to use to carry out the housing innovation program under this section of the agency.

“(6) RESIDENTS.—The term ‘residents’ means, with respect to a public housing agency, tenants of public housing of the agency and participants in the voucher or other housing assistance programs of the agency funded under section 8(o), or tenants of other units owned by the agency and assisted under this section.

“(k) Resident technical assistance.—

“(1) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated for each of fiscal years 2010 through 2014 $10,000,000, for providing capacity building and technical assistance to enhance the capabilities of low-income families assisted or eligible for assistance under the program under this section to participate in the process for establishment and revision of annual plans under this section for participating agencies, including review and comment on impact analyses and demolition or disposition proposals.

“(2) CRITERIA FOR AWARD OF FUNDS.—The Secretary shall publish the criteria to be used to award funds on a competitive basis, in an amount appropriate to the number of households affected by the program of the participating agency or agencies that such participating agency assists, to local, regional, State, or national organizations that—

“(A)(i) have members who are predominantly low-income;

“(ii) have low-income individuals on their boards of directors; or

“(iii) directly work with or represent low-income individuals;

“(B) have the legal, policy, and development expertise to provide such assistance or will subcontract for such services; and

“(C) have a demonstrated capacity to manage similar grants.

“(3) PUBLIC HOUSING AGENCIES.—

“(A) INELIGIBILITY; NONLIABILITY.—Public housing agencies shall not be eligible to receive funds under this subsection, and shall not be liable for the action of any grantee.

“(B) COOPERATION WITH GRANTEES.—Public housing agencies participating in the program under this section shall cooperate with grantees receiving technical assistance funds under this subsection, to assist such grantees to reach families assisted under the program.

“(l) Authorization of appropriations for evaluations.—There is authorized to be appropriated $15,000,000 to the Department of Housing and Urban Development for the purpose of conducting the evaluations required under subsection (f)(1).”.

(b) GAO report.—Not later than 48 months after the date of the enactment of this Act, the Comptroller General of the United States shall submit a report to the Congress on the extent to which the public housing agencies participating in the housing innovation program under section 37 of the United States Housing Act of 1937 are meeting the goals and purposes of such program, as identified in subsection (a) of such section 37.

SEC. 27. Study of use of income databases to reduce subsidy errors.

The Comptroller General of the United States shall conduct a study to identify databases regarding incomes of families and individuals that may be used in connection with the voucher program for rental assistance under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)), the public housing program under such Act, and project-based rental assistance programs under section 8 of such Act to reduce errors in subsidy amounts provided on behalf of recipients of assistance under such programs and to determine how best to utilize such databases for such purpose. In conducting such study, the Comptroller General shall analyze and consider the use of income information maintained in the National Directory of New Hires database of the Department of Health and Human Services. Not later than the expiration of the 9-month period beginning on the date of the enactment of this Act, the Comptroller General shall submit a report to the Congress setting for the results and conclusions of the study under this section.

SEC. 28. Acceptable identification requirement.

(a) In general.—Rental housing assistance under section 8(o) of the United States Housing Act of 1937 may not be provided on behalf of any individual or household unless the individual provides, or, in the case of a household, all adult members of the household provide, valid personal identification in one of the following forms:

(1) Social security card with photo identification card or Real ID Act identification.—

(A) A social security card accompanied by a photo identification card issued by the Federal Government or a State Government; or

(B) A driver’s license or identification card issued by a State in the case of a State that is in compliance with title II of the REAL ID Act of 2005 (title II of division B of Public Law 109–13; 49 U.S.C. 30301 note).

(2) PASSPORT.—A passport issued by the United States or a foreign government.

(3) USCIS PHOTO IDENTIFICATION CARD.—A photo identification card issued by the Secretary of Homeland Security (acting through the Director of the United States Citizenship and Immigration Services).

(b) Regulations.—The Secretary of Housing and Urban Development shall, by regulations issued before the expiration of the period referred to in subsection (c), require that each public housing agency or other entity administering rental housing assistance described in subsection (a) take such actions as the Secretary considers necessary to ensure compliance with the requirements of subsection (a).

(c) Effective date.—The requirements of this section shall take effect upon the expiration of the 6-month period beginning upon the date of the enactment of this Act.

SEC. 29. Effective date.

Except as otherwise specifically provided in this Act—

(1) sections 3, 4, 6, and 7 of this Act and the amendments made by such sections shall take effect on January 1, 2010, except that the Secretary may delay such effective date for any one or more of sections 3, 4, and 7 to January 1, 2011, upon a determination by the Secretary that such extension is necessary to provide program participants sufficient time to make adjustments to the changes made by such sections; and

(2) all other provisions of this Act and the amendments made by this Act shall take effect upon the issuance by the Secretary of implementing regulations, as appropriate, or by notice, which shall be issued not later than the expiration of the 12-month period beginning upon the date of the enactment of this Act.


Union Calendar No. 157

111th CONGRESS
     1st Session
H. R. 3045
[Report No. 111–277]

A BILL
To reform the housing choice voucher program under section 8 of the United States Housing Act of 1937.

September 30, 2009
Reported with an amendment, committed to the Committee of the Whole House on the State of the Union, and ordered to be printed