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111th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    111-277

======================================================================



 
                  SECTION 8 VOUCHER REFORM ACT OF 2009

                                _______
                                

 September 30, 2009.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

 Mr. Frank of Massachusetts, from the Committee on Financial Services, 
                        submitted the following

                              R E P O R T

                             together with

                    ADDITIONAL AND DISSENTING VIEWS

                        [To accompany H.R. 3045]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 3045) to reform the housing choice voucher 
program under section 8 of the United States Housing Act of 
1937, having considered the same, report favorably thereon with 
an amendment and recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................    41
Background and Need for Legislation..............................    42
Hearings.........................................................    55
Committee Consideration..........................................    55
Committee Votes..................................................    55
Committee Oversight Findings.....................................    61
Performance Goals and Objectives.................................    61
New Budget Authority, Entitlement Authority, and Tax Expenditures    61
Committee Cost Estimate..........................................    62
Congressional Budget Office Estimate.............................    62
Federal Mandates Statement.......................................    69
Advisory Committee Statement.....................................    69
Constitutional Authority Statement...............................    69
Applicability to Legislative Branch..............................    69
Earmark Identification...........................................    69
Section-by-Section Analysis of the Legislation...................    71
Changes in Existing Law Made by the Bill, as Reported............    80
Additional and Dissenting Views..................................   149

                               Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

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.

                          Purpose and Summary

    The purpose of H.R. 3045, the ``Section 8 Voucher Reform 
Act of 2009,'' is to authorize a reliable funding formula for 
annual renewal of Section 8 housing vouchers, to promote 
economic self-sufficiency and create homeownership 
opportunities for families in the Section 8 and public housing 
programs, to expand voucher assistance, and to simplify rent 
calculation and inspection requirements for Section 8 vouchers, 
project-based assistance, and public housing. The bill also 
expands and improves the ``Moving to Work'' program, which was 
created to enable public housing agencies to undertake 
innovative housing proposals, with the purpose of identifying 
models and policies that might be extended to all public 
housing agencies.
    The bill is designed to accomplish these goals, while 
maintaining important protections for the low-income families 
who are assisted under these federal housing programs. The bill 
maintains current income targeting requirements, statutory rent 
protections, and federal housing quality inspection standards. 
The bill improves tenant rules, increasing transparency and due 
process. Finally, the bill authorizes enhanced voucher 
assistance to protect tenants in expiring mortgage properties 
and preserves affordable housing through project-based 
preservation voucher assistance, and increased flexibility for 
use of project-based vouchers.

                  Background and Need for Legislation


                   SECTION 8 VOUCHER FUNDING FORMULA

    Substantial changes have been made over the last decade to 
the Section 8 voucher funding formula. These have included 
disruptive and sudden revisions of the voucher renewal 
allocation formula, pro rata funding cuts, reductions in the 
levels of voucher reserves public housing agencies (PHAs) can 
retain, a prohibition against a PHA funding more than its 
number of authorized families (also known as ``overleasing''), 
and HUD's failure to provide a replacement voucher for every 
public and assisted housing unit that is demolished or ceases 
to be assisted.
    These changes have had negative impacts on the 2 million 
households that rely on the Section 8 program for housing 
assistance. In particular, changes made in 2004 by the U.S. 
Department of Housing and Urban Development to decouple funding 
allocations from actual voucher usage resulted in a reduction 
of 150,000 vouchers in use nationwide. Concurrently, unspent 
voucher funds increased to $1.4 billion because large numbers 
of PHAs would not or could not use their allocated funds for 
voucher assistance.
    In early 2007, through the appropriations process, Congress 
reformed the voucher funding formula, creating a ``hybrid'' 
system of funding vouchers that limited PHAs to a budget while 
still funding them for all of their vouchers in use. This 
system was consistent with prior versions of the ``Section 8 
Voucher Reform Act.'' As a result of the formula change, 
voucher utilization rates have increased substantially, the 
levels of unspent voucher funds have fallen dramatically, and 
PHAs are now running their programs more efficiently.
    Nevertheless, during committee hearings and roundtable 
discussions over the last several years, program stakeholders 
expressed strong support for the enactment of authorizing 
legislation governing voucher funding renewals. Adoption of a 
reliable, predictable funding policy, consistent with the 
current appropriations approach enacted two years ago, would 
facilitate the ability of program administrators to make better 
short- and long-term planning decisions.
    Therefore, the bill authorizes a funding formula for the 
renewal of Section 8 vouchers over the period from Fiscal Year 
2010 through 2014. Accordingly, the bill provides an efficient 
funding formula that bases funding allocations on need and that 
creates incentives for PHAs to use their annually allocated 
funding to house more families with vouchers.
    Specifically, the bill allocates voucher renewal funds each 
year based on the leasing and cost data for each PHA from the 
prior calendar year. An annual inflation adjustment is provided 
and because the bill requires HUD to base inflation adjustments 
on the smallest geographical areas for which data is annually 
available the adjustment should be more accurate. Funding 
allocations for individual PHAs are adjusted for tenant 
protection and enhanced vouchers received in the preceding 
year, for any vouchers the PHA may have set aside for project-
based assistance, for vouchers the PHA absorbed during the 
prior year, and for such other adjustments as HUD considers 
appropriate, including adjustments for natural and other major 
disasters.
    To ensure that PHAs can retain sufficient reserve funds to 
cover cost increases or emergencies, the bill ensures that a 
PHA can retain no less than 6 percent of that PHA's annual 
renewal allocation. PHAs that exhaust their reserves and run 
out of voucher funds can receive a two percent advance in the 
last three months of the calendar year to maintain their 
voucher utilization levels. This fallback protection is cost 
neutral, as the PHA must repay any advances through an 
offsetting downward adjustment in its funding allocation for 
the next year.
    The bill requires HUD to recapture PHA reserves in excess 
of 6 percent each year, and to reallocate such funds. The first 
priority for reallocation is to provide funding to assist PHAs 
with mid-year portability absorption costs and increased family 
self-sufficiency costs. After setting aside funds for these 
purposes, all remaining funds are to be reallocated by April 
1st to agencies that have effectively used available funds, in 
order to increase the number of voucher families they are 
serving. The Committee expects HUD to establish criteria to 
direct reallocated funds to agencies that meet or exceed a 
certain threshold of fund utilization, with funding provided to 
a significant number of such agencies.
    The bill also restores the policy in place prior to FY 2003 
of permitting ``overleasing.'' PHAs which can serve more 
families than they are technically authorized to serve should 
be allowed to do so, provided they do so within their existing 
allocation of funds. Moreover, PHAs should receive full year 
renewal funding related to such permitted overleasing. This 
provides an incentive for PHAs to use their funds more 
efficiently. However, renewal funding for overleasing paid for 
with a PHA's reserves is limited to a leasing rate no higher 
than 103 percent of the prior year's rate.
    The bill includes an important incentive for PHAs to 
maximize the number of voucher families they are serving, by 
requiring that the level of voucher administrative fees shall 
be based on the number of vouchers in use. Specifically, the 
bill retains the Fiscal Year 2003 per-unit fee as a baseline, 
along with subsequent annual inflation adjustments. However, 
HUD is authorized to revise the fee structure, provided that it 
continues to be on a per-unit basis and that it results in 
payment for the full cost of administering vouchers. The bill 
also provides that voucher administrative fees shall include an 
amount for the cost of issuing a voucher to a new voucher 
participant and shall include an amount for the cost of family 
self-sufficiency coordinators. Finally, the bill states that 
fees for PHA-owned units must reflect the reasonable cost of 
administration, taking into account federal requirements for 
third-party inspection and rent determinations.
    The bill authorizes a wide range of permissible uses of 
tenant protection and enhanced vouchers, which are used to 
protect families displaced by the loss of public or assisted 
housing units and to preserve units that otherwise might be 
lost as affordable.
    The bill requires HUD to develop and issue guidance to PHAs 
that have received incremental vouchers for non-elderly 
disabled families since 1997 and for homeless veterans in the 
last few years, to ensure that these vouchers continue to be 
provided to such designated families upon turnover. This 
addresses concerns that without clear guidance, such vouchers 
might be converted to general voucher use, and not reserved for 
the identified class of voucher recipient.

           WORK, SELF-SUFFICIENCY, AND EDUCATIONAL INCENTIVES

    The bill includes a number of provisions designed to create 
incentives for families to obtain employment, increase earned 
income, pursue higher education, and save for retirement.
    Income Disregards. The bill requires PHAs to calculate a 
family's earned income using the amount earned in the prior 
year. The purpose of such a delay is to decouple higher incomes 
from an immediate rent increase which would otherwise occur, 
because families in public housing and Section 8 pay 30 percent 
of their income for rent. An additional advantage of using 
prior year's earned income is that it should increase the 
accuracy of rent determinations related to such income.
    The bill also establishes a disregard of 10 percent of the 
first $9,000 in earned income. This disregard will further 
mitigate the work disincentives that may be associated with 
rent increases resulting from income increases.
    Rent Incentives for Disabled Persons Demonstration. The 
bill authorizes HUD to enter into agreements with the Social 
Security Administration and the Secretary of Health and Human 
Services to allow for participation in state demonstration 
programs designed to permit persons with significant 
disabilities to be employed and continue to receive a range of 
federal benefits. HUD is authorized to permit a partial or 
complete disregard of increases in earned income for persons 
participating in any such demonstration for the purpose of 
calculating rent contributions for Section 8 housing vouchers.
    Alternative Rent Work Incentives. The bill gives housing 
agencies the discretion to establish ceiling rents, tiered 
rents, or lower percentages of rent for income for families 
living in public housing. The purpose is to give housing 
agencies the discretion to fashion rent structures which build 
on the other income disregard features in the bill. However, 
the Brooke Amendment is retained as a ceiling, meaning that 
families are not allowed to pay more than 30 percent of their 
adjusted income in rent, the standard under current rent rules. 
HUD is required to issue regulations and establish procedures 
to insure that this rent ceiling is complied with.
    Family Self-Sufficiency Program. One tool that PHAs have to 
encourage work and self-sufficiency is the Family Self-
Sufficiency (FSS) Program. FSS coordinators work with families 
to help them pursue education, develop job skills, and obtain 
employment. FSS participants build savings in amounts equal to 
the increased rent payments that result from their increases in 
earnings. Unfortunately, the current competitive process of 
funding FSS coordinators has resulted in uncertain funding for 
such coordinators, reducing their effectiveness and affecting 
other PHA resources. The bill provides for more reliable 
funding of FSS coordinators by including an amount for such 
costs as part of the PHA's administrative fees. The bill would 
provide fees based on the number of coordinators employed and 
the number of families being served, with funding required for 
agencies that received funding for 3 or more FSS coordinators 
anytime from FY 1998 to FY 2009.
    Targeting--Rural and Low Cost Areas. The bill modifies 
existing statutory targeting requirements, to make it easier 
for lower income working families to receive a voucher in rural 
and other lower income geographic areas. The statute currently 
requires that 75 percent of new families that receive voucher 
assistance each year must have incomes below 30 percent of the 
local area median income (defined as ``extremely low-income 
families''). The purpose of this requirement is to target the 
limited supply of vouchers to our nation's poorest families. In 
addition, 40 percent of public housing and project-based 
Section 8 units that become available each year must be rented 
to such families.
    One result of this locally based income calculation is that 
income levels are relatively lower in rural and other areas 
with lower incomes. This can result in limiting vouchers and 
other federal rental assistance in these areas to only the 
lowest of lower income working families (and in some areas can 
even exclude minimum wage workers). The bill addresses this by 
modifying the income targeting cutoff to be the higher of 30 
percent of local area median income (the current threshold) or 
the national poverty level for a family of comparable size.
    Higher Education. To avoid disincentives for families and 
their children to pursue higher education opportunities, the 
bill exempts the income of adult dependents that are full-time 
students, and exempts grant-in-aid or scholarship amounts used 
for tuition or books and income from Coverdell education 
savings accounts and Section 529 qualified tuition programs.
    Establishing a Credit History. To create a process in which 
voucher tenants get proper credit for paying their rent on 
time, the bill authorizes a PHA to submit information regarding 
rental payment history for voucher tenants to credit reporting 
agencies, contingent on a family agreeing to such submission.

                             HOMEOWNERSHIP

    Using a Voucher for a Down Payment on a Home. In 1998, as 
part of broader housing legislation, Congress adopted a 
provision permitting voucher holders, at the option of the 
local PHA, to use a voucher to fund a down payment for a first-
time home purchase. However, that bill made such use subject to 
appropriation in advance, which has prevented its 
implementation. The bill lifts this condition, thus allowing a 
voucher to be used for such down payment use at the option of 
the PHA--as a one-time grant in an amount not exceeding 
$10,000, and only for voucher families who have been receiving 
voucher assistance for a period of at least one year. Unlike 
the use of vouchers to finance annual mortgage payments (which 
is currently permitted at a PHA's option), use of a voucher for 
a down payment on a home purchase frees up the voucher for a 
different family in the following year.
    Using a Voucher in Manufactured Housing. The bill 
facilitates the use of vouchers for the full cost of purchasing 
manufactured homes sited on leased land, by permitting voucher 
funds to be used for both the cost of leasing the land, and for 
the monthly home purchase costs, including property taxes, 
insurance, and tenant-paid utilities. Currently, the statute 
only permits a voucher to be used to pay the cost of leasing 
the land, which makes the voucher of little use for such 
purpose. This change should be particularly helpful in 
expanding affordable housing opportunities to voucher holders 
in rural areas.

                      EXPANDING VOUCHER ASSISTANCE

    The bill authorizes funding for 150,000 incremental Section 
8 vouchers in Fiscal Year 2010.

                           TENANT PROTECTIONS

    Rent Burdens. The bill requires HUD to monitor voucher rent 
burdens and submit an annual report to Congress on the 
percentage of families nationwide paying more than 30 percent 
and 40 percent, respectively, of their net income for rent, as 
well as information on the degree to which voucher families are 
clustered in lower rent, higher poverty areas, and the extent 
to which greater geographic distribution of families could be 
achieved, including by raising payment standards.
    The bill requires PHAs to publicize information on local 
rent burdens, and, if the percentage of voucher families in the 
PHA's area who pay more than 40 percent of income for rent 
exceeds a percentage level to be established by HUD, the PHA 
must either raise the payment standard or explain its reasons 
for not doing so. It is expected that in making this decision, 
PHAs would take into account a wide range of factors affecting 
rent burdens, including the availability of funds and other 
program goals such as serving additional voucher families.
    For PHAs with high rent burdens or high concentrations of 
poverty as defined under the bill, the bill requires HUD to 
approve PHA requests to raise the payment standard to up to 120 
percent of the Fair Market Rent (FMR). To provide reasonable 
accommodations for persons with disabilities, PHAs are also 
permitted (without HUD approval) to increase payment standards 
up to 120 percent of the FMR, and HUD may approve payment 
standard requests in excess of 120 percent of FMR.
    Screening. The bill protects tenants from unfairly being 
denied federal rental housing assistance, by limiting a PHA's 
elective screening of voucher program applicants to an 
applicant's ability to fulfill the obligations of the lease, 
including a consideration of any mitigating circumstances. 
Applicants are required to be notified of the basis of any 
determination of ineligibility, and are required to be given an 
informal hearing to present mitigating circumstances in such 
case. The bill also codifies current regulatory requirements 
for informal hearings when a PHA proposes to terminate voucher 
assistance.
    The bill retains provisions related to screening based on 
criminal, drug, or alcohol abuse, but modifies such 
restrictions to provide more due process and to limit 
restrictions to those that would reasonably negatively impact 
other tenants. Exclusions based on prior drug and alcohol abuse 
where there is not a criminal conviction must be ``based on 
documented evidence that is credible and objective.'' 
Exclusions based on prior ``drug-related or violent criminal 
activity'' are retained, but exclusions based on ``other 
criminal behavior'' (which do not impact other tenants) are not 
retained. Exclusions based on prior misdemeanor convictions or 
activities must be based on a pattern of activity, or based on 
offenses against children, a sexual assault, an assault, or 
commission of disruptive (as the Secretary defines) or illegal 
behavior that interferes with the right to peaceful enjoyment 
of the premises by other residents. Finally, exclusions based 
on prior drug-related or violent criminal activity are limited 
to actions within the prior 5 years.
    Protection of State and Local Tenant Protection Laws. The 
bill clarifies that state and local tenant protections are not 
preempted by federal statutory voucher provisions.
    Foreclosure Protections. The substantial growth in 
properties in foreclosure in the last few years has resulted in 
many voucher holders being forced to relocate when the property 
in which they reside goes through foreclosure. In response, 
Congress recently enacted legislation providing both general 
tenant protections in the case of foreclosures, and specific 
Section 8 protections in such cases. Under the new law, an 
owner that buys a property at foreclosure is required to honor 
a lease with the existing voucher holder and reinstate the 
voucher contract--except that an owner that intends to occupy 
the property may do so after giving the voucher holder only 90 
days notice. These provisions expire at the end of 2012.
    This bill builds on these protections, by: (1) eliminating 
the 2012 sunset date; (2) authorizing assistance for utilities 
and reasonable moving costs when HUD is not able to reinstate 
the housing assistance contract with the new owner; and (3) 
extending the bill's protections to cover a situation in which 
a bank buys a property at foreclosure, then resells the 
property to a new owner.
    Enhanced Vouchers. The bill authorizes enhanced vouchers to 
protect tenants living in projects with HUD-subsidized 
mortgages who would otherwise not receive such protections when 
the mortgage expires. Current law only provides for enhanced 
vouchers for such properties when there is a mortgage 
prepayment. The bill also prevents the eviction of families who 
have had their family size reduced and need enhanced vouchers 
in the case of a property prepayment or opt-out. Current 
program rules deny enhanced voucher assistance to such families 
in cases where their units are larger than program rules permit 
for their family size. However, to increase housing 
opportunities for larger families, the bill provides that such 
overhoused families may be forced to move to units of 
appropriate size located on the premises.
    Utility Costs. The bill authorizes a PHA to use voucher 
subsidy amounts to pay for utilities in cases where the owner 
does not pay, to avoid hardship to the voucher holder.
    Inspections of Units Rented by Voucher Holders. The bill 
protects voucher tenants living rental units in need of repair 
by requiring PHAs to withhold assistance to any property 
assisting a voucher holder that fails an inspection and which 
is not corrected within 90 days, by permitting PHAs to use such 
withheld assistance to make repairs of such properties, and by 
prohibiting voucher holders from being evicted because of any 
such withholding of assistance.
    Accurate Rentals. The bill requires HUD to define fair 
market rent (FMR) areas as sufficiently distinct as is 
necessary to reflect typical rental costs and to avoid 
concentration of voucher holders, while taking into 
consideration the efficient administration of the program by 
PHAs and HUD administrative costs, the availability of 
sufficient data to establish separate FMRs, and the ability of 
PHAs to adjust their payment standards to reflect accurate rent 
levels. HUD is required to establish procedures to permit a PHA 
to request a separate FMR area, to be evaluated using this 
criteria. HUD is required to phase in changes in FMRs as a 
result of boundary changes to no more than 5 percent a year. No 
PHA can be required to reduce their payment standard for 
existing families as a result of an FMR change.

                            TENANT MOBILITY

    A critical feature of the Section 8 voucher program is 
tenant mobility i.e., the ability of a voucher holder to take a 
voucher to another community. In other words, a voucher is 
``portable.'' Over time, however, there have been two factors 
limiting this portability right. The first is cost: a PHA bears 
a higher subsidy cost for vouchers where the tenant moves to an 
area with higher fair market rents. In such cases, HUD has 
given PHAs the right to deny portability moves for such 
families, when the PHA cannot afford the higher cost. The 
second is the significant administrative costs to PHAs 
associated with the administration of multiple vouchers in 
multiple jurisdictions.
    To address these concerns, the bill requires HUD to issue a 
proposed rule within 6 months of the bill's enactment and to 
finalize regulations within 12 months to modify existing 
regulations regarding voucher portability. Specifically, such 
rule is required to eliminate, or minimize to the greatest 
extent feasible consistent with available funding, billing 
between PHAs relating to portable vouchers. The Committee 
intends for such a rule to result in a system in which PHAs 
located in areas to where a voucher family relocates would 
absorb all or a substantial level of ported vouchers, rather 
than using billing arrangements, as is currently the practice. 
The Committee expects that this approach would minimize billing 
costs, and remove the financial barriers to voucher mobility.
    In implementing such procedural changes, it is essential 
that funding, including renewal funding, be sufficient to cover 
the costs of absorbed vouchers to the receiving agency, without 
penalizing the sending agency through either unreimbursed costs 
or the permanent loss of a voucher. To that end, the funding 
formula established by the bill explicitly provides 
reimbursement for the unreimbursed costs of absorbing a voucher 
mid-year, as well as providing for the full year cost of 
renewing such voucher in the subsequent year. It is expected 
that appropriations bills will provide funding consistent with 
new portability procedures that are implemented by HUD.

                    AFFORDABLE HOUSING PRESERVATION

    Project-Based Preservation Vouchers. The bill establishes 
authority for the provision of project-based voucher assistance 
in lieu of enhanced voucher assistance to preserve certain 
types of HUD-assisted affordable housing developments. This 
authority should have zero or very limited costs, in light of 
existing requirements to fund enhanced vouchers for such units.
    Project-Basing of Vouchers. Under current law, PHAs have 
the authority to project base vouchers, by executing contracts 
for up to 15 years to site vouchers in a particular projects, 
subject to a requirement of mobility rights for tenants using 
the vouchers, and subject to certain numerical limitations on 
the percentage of vouchers a PHA can project base. This option 
is particularly important for PHAs located in areas with tight 
rental markets and rising rents, and for PHAs seeking to 
provide supportive housing for elderly persons, persons with 
disabilities, and for formerly homeless individuals and 
families.
    The bill includes a number of provisions to make the 
project basing of vouchers more flexible and effective. The 
bill also increases the percentage of vouchers a PHA can 
project base from 20 percent to 25 percent, with authority to 
project-base an additional 5 percent in order to provide 
supportive housing to persons with disabilities, to serve 
homeless persons or to serve persons in areas where vouchers 
are difficult to use. It permits income mixing at the project 
level, instead of the building level, and it sets the 
percentage of vouchers that can be project-based in a project 
at the greater of 25 units or 25 percent of the units in any 
project, with authority to project-base 50 percent of the units 
in a project in areas where voucher holders have difficulty 
leasing rental units. The bill permits owners using project-
based vouchers to maintain site-based waiting lists, subject to 
PHA oversight. The bill clarifies that a PHA may project-base 
vouchers in a building it owns or controls without following a 
competitive process, but only if it is in the PHA plan. The 
bill clarifies that lease and tenancy provisions pertaining to 
Section 8 vouchers shall apply to project-based vouchers, 
except that the one-year minimum lease term shall not apply. 
The bill allows a PHA to establish a lower rent level that 
would customarily be established, subject to the consent of the 
project owner, for use with any funds that may be available 
under the Housing Trust Fund.

            ADMINISTRATIVE SIMPLIFICATION--RENT CALCULATIONS

    The bill simplifies the rules used to establish rents and 
subsidies for the Section 8 voucher and project-based 
assistance programs and for public housing, while maintaining 
the statutory protections that keep rents affordable for lower 
income families.
    For elderly and disabled tenants, the threshold for income 
deductions for medical expenses, including handicapped 
assistance costs, is increased from 3 percent to 10 percent of 
a family's income. This higher threshold will eliminate the 
need for a significant number of families to keep and submit 
detailed medical expenses and reduce PHAs' administrative 
burden, while maintaining deductions for significant and 
catastrophic medical costs. To offset this medical deduction 
threshold increase, the standard deduction for elderly and 
disabled families is increased from $400 to $725 (with indexing 
thereafter in $25 increments). The net overall effect on 
tenants is expected to be rent-neutral.
    For non-elderly and non-disabled families, particularly 
families with children, calculations are also simplified, by 
creating a threshold for compensation for unreimbursed child 
care costs equal to those costs in excess of 10 percent of a 
family's income. To offset this change, rent calculation work 
incentives are provided for all families with earned income (as 
noted in the prior section on self-sufficiency).
    The bill also includes a number of provisions to simplify 
the process PHAs and owners use to calculate rents, which are 
designed to be rent-neutral and cost-neutral. These include 
relieving PHAs of the responsibility to maintain records of 
HUD-required miscellaneous income exclusions, allowing PHAs to 
use a HUD-prescribed inflation adjustment for fixed income 
families, permitting PHA safe harbor reliance on other 
governmental income determinations (e.g., Medicaid, TANF), and 
permitting PHAs to make other appropriate adjustments when 
using prior year's calculations for other types of income.
    The Committee expects that during the transitional period 
HUD, PHAs and owners will make a concerted effort to inform 
assisted families of the pending changes in rent rules and any 
potential adverse consequences, and, in particular, to work 
with families most affected by the changes (such as families 
currently eligible for the child care deduction) to assist them 
in this transition.
    All of the changes to rent calculations are designed to 
result in roughly comparable rent burdens for families as under 
current statute, and also to result in roughly comparable 
Section 8 and public housing costs. However, it is possible 
that this will not be the result in practice. Therefore, the 
bill requires HUD to make appropriate adjustments during the 
first year after the bill's enactment in the formula income of 
any PHA for which the changes in the bill result in a material 
and disproportionate reduction in a PHA's rental income. The 
bill also requires HUD to submit to Congress, in each of the 
first two years after the bill's enactment, a report 
identifying and calculating the impact of the bill on public 
housing net income and voucher and project-based Section 8 
funding costs. In the event there are material adverse changes, 
HUD is required to include recommendations to address to reduce 
or eliminate such shortfalls.

         ADMINISTRATIVE SIMPLIFICATION--INCOME RECERTIFICATIONS

    An important simplification provision in the bill is that 
the annual rent re-certification requirement is modified to 
permit PHAs to recertify ``fixed income'' families only once 
every three years. This class of families is defined as any 
family with more than 90 percent of income from a combination 
of Social Security, SSI, governmental and private pensions, and 
similar periodic fixed payments. Income increases for these 
families are fairly predictable, and use of generic Consumer 
Price Index adjustments for such incomes in years without 
recertification should closely track actual income. This change 
would result in a two-thirds reduction in the administrative 
burden of recertifying such families, which constitutes an 
estimated more than one-third of all public and assisted 
families.
    The interim recertification process is also simplified, to 
provide for such interim recertifications only if unearned 
annual income increases by $1,200, or if a family requests a 
recertification if its annual income falls by $1,200 or more 
(or such lesser amount as the PHA may establish). These 
thresholds eliminate time consuming mid-year recertifications 
which have a minimal rent impact, while protecting families 
whose income drops by meaningful amounts.

           ADMINISTRATIVE SIMPLIFICATION--VOUCHER INSPECTIONS

    The bill also makes a number of changes to the inspection 
and re-inspection requirements for rental housing units that 
serve Section 8 voucher holders, while at the same time 
providing that tenants should not move into unsafe units and 
that all units should be maintained at levels which meet 
federal Housing Quality Standards (HQS).
    The bill retains the existing statutory requirement that a 
rental unit be inspected when a voucher holder moves into a new 
unit, but it permits occupancy and payments to landlords for up 
to 30 days if a unit fails inspection only as a result of non-
life threatening conditions. However, payments must be 
suspended after 30 days if the deficiencies are not corrected. 
The bill also allows PHAs to permit occupancy prior to 
inspection if the unit has been inspected within the last 12 
months according to the standards of another federal program 
that meets federal Housing Quality Standards, and to make 
payments to the owner retroactive to the beginning of the lease 
term when an inspection is subsequently completed. The purpose 
of these provisions is to allow tenants to move into habitable 
units as quickly as possible, and also to avoid discouraging 
landlords from accepting voucher families because of voucher 
rules that unnecessarily reduce rent revenues by delaying 
tenant move-ins.
    The bill changes the annual re-inspection requirement to a 
requirement that properties be re-inspected at least every two 
years. This provides for an effective 50 percent reduction in 
the number of required inspections, while requiring periodic 
inspections at reasonable intervals and maintaining a family's 
right to request an interim inspection if there are problems 
with the unit they live in.
    The bill also permits use of federal, state, or local 
inspections in lieu of a PHA voucher re-inspection, subject to 
the condition that such inspections provide standards 
comparable to those of the voucher program. This avoids the 
cost and burden of redundant inspections. The flexibility 
provided to use inspections from other programs, such as the 
HOME program, in lieu of a voucher inspection is not intended 
to reduce safety or reduce the quality level that units must 
meet. Thus, it is important that PHAs ensure that any 
inspections used under such other programs fully meet Federal 
voucher program Housing Quality Standards.
    The bill protects voucher tenants living in rental units in 
need of repair by requiring PHAs to withhold assistance to any 
property assisting a voucher holder that fails an inspection, 
to abate assistance for problems which are not corrected within 
30 days, by permitting PHAs to use such abated assistance to 
make repairs of such properties, and by prohibiting voucher 
holders from being evicted because of any such withholding or 
abatement of assistance. This PHA repair option is not intended 
in any way to reduce the obligation of owners to maintain 
properties and to fix life-threatening defects within 24 hours 
or other problems within 30 days, but merely to augment options 
for ensuring that units are properly maintained.

         ASSET AND INCOME LIMITS, OTHER RESIDENCE PROHIBITIONS

    In recognition of long waiting lists for vouchers and 
public housing, the bill establishes a new asset limitation, 
bars families from receiving federal rental housing assistance 
if they own a residence, and applies income eligibility 
restrictions at annual recertification. The purpose of these 
provisions is to free up vouchers or public or assisted housing 
units for families with a demonstrated financial need.
    The bill creates a new asset limitation for both initial 
and ongoing rental assistance eligibility by prohibiting any 
family from having more than $100,000 in net assets. To 
encourage self-sufficiency, the bill excludes from this asset 
calculation homeownership equity accounts, equity in homes 
assisted under a voucher homeownership program, family self-
sufficiency accounts, and retirement and education savings 
accounts. Personal property that is not of significant value is 
also excluded. To limit the administrative burden of this new 
limitation, the bill permits PHAs to rely on self-certification 
of assets by the assisted family.
    The bill prohibits families from receiving federal 
assistance if they own a residence suitable for occupancy. 
Exempted from this prohibition are properties for which 
families are receiving federal rental housing assistance, 
victims of domestic violence, and families offering such 
property for sale.
    The bill also requires families to be ``low income'' (below 
80 percent of local area median income) at the time of each 
annual recertification. However, the bill retains existing 
income limitations for enhanced vouchers and protects families 
in properties initially permitted to have incomes up to 95 
percent of median income by letting them to continue to live in 
such housing as long as they comply with this income 
limitation.
    PHAs may elect not to enforce asset and income limits for 
public housing residents at recertification, and owners 
receiving project-based Section 8 assistance may elect not to 
enforce income limits at recertification. PHAs and owners may 
also delay eviction or termination of families not meeting the 
asset, residence or income limitations for a period of up to 
six months. This delay is provided in order to give tenants an 
opportunity to find another place to live and to address 
situations wherein a family's assets or income briefly exceed 
the limit, but fall back shortly thereafter to permitted 
eligibility levels.

                  PHA VOUCHER PERFORMANCE ASSESSMENTS

    Under HUD's current Section 8 Management Assessment Program 
(SEMAP), HUD assesses PHAs on their performance in 
administering the housing voucher program. SEMAP was created 
under HUD's rulemaking authority. The bill creates a statutory 
requirement for HUD to assess PHA voucher administrative 
performance, which is intended to supersede SEMAP. The 
following factors are assessed: the extent to which units 
comply with housing quality standards, including compliance 
with the inspection requirement; the extent of utilization of 
allocated funds and authorized vouchers; the timeliness and 
accuracy of reporting to HUD; effectiveness in carrying out 
policies to achieve deconcentration of poverty and reduction of 
racial segregation; the reasonableness of rent burdens; 
accurate rent, utility allowance and subsidy calculations; 
effectiveness in carrying out family self-sufficiency 
activities; timeliness of actions related to landlord 
participation; and such other factors as the Secretary 
considers appropriate.
    These assessments are required to be carried out at least 
once every two years.

                         FIREARMS RESTRICTIONS

    The bill prohibits the HUD Secretary, PHAs, and owners from 
establishing any prohibition or restriction on the otherwise 
lawful possession or use of firearms in public housing, in 
project-based Section 8 housing dwelling units, and in dwelling 
units inhabited by a voucher holder.

                       IDENTIFICATION REQUIREMENT

    The bill requires as a condition of public housing, 
voucher, or project-based rental assistance that each person or 
member of a household receiving such assistance provide a valid 
personal identification, in the form of either a social 
Security card with photo identification or Real ID Act 
identification and a drivers license or identification card 
issued by a state; a passport; or a photo identification card 
issued by the Secretary of Homeland Security.

                              GAO STUDIES

    The bill requires three GAO studies. Within 6 months, the 
GAO is required to complete a study of the voucher and other 
federally subsidized housing programs to determine whether any 
statutory, regulatory, or administrative provisions may have 
the effect of making occupancy by voucher holders in federally 
subsidized units more difficult to obtain than occupancy by 
non-voucher holders. Within six months, the GAO is required to 
complete a study to identify and analyze the effects that the 
voucher program has on other HUD programs and on the HUD 
budget. Within 9 months, the GAO is required to complete a 
study to identify databases that may be used in connection with 
public and assisted housing to reduce errors in the calculation 
of subsidy amounts for families and individuals assisted under 
those programs.

                             MOVING TO WORK

    The Committee is concerned that after a 13-year 
demonstration, there is little evidence regarding the success, 
usefulness, or failures of the Moving-to-Work (MTW) program. 
There has not been a thorough evaluation to document the 
results of the program overall to date, and therefore the bill 
requires that such an evaluation must be part of any expanded 
program that moves forward. Moreover, while the Committee 
believes that some Moving-to-Work agencies may have implemented 
policies and programs that are beneficial to residents and 
communities, the Committee is troubled by reports of families 
losing rental assistance, facing substantially increased rent 
burdens, or being subjected to other harmful policies. 
Therefore, the bill expands tenant protections for the program.
    Accordingly, the bill renames the Moving to Work program as 
the ``Housing Innovation Program'' (HIP). HUD may designate not 
more than 60 agencies (including existing agencies approved for 
program continuation), and may add 20 additional agencies (so-
called ``HIP-lite'' agencies) under more stringent program 
limitations. The program is extended for a 10-year period.
    HUD is required to approve existing MTW agencies for 
continued eligibility, provided they are not in default under 
their existing MTW agreement and that HUD determines they are 
meeting their goals and objectives. Agencies approved for 
continuation must generally make changes to existing policies 
to bring them in line with new program rules within two years 
of enactment.
    No more than five agencies newly selected for program 
participation may be ``near-troubled.'' ``Troubled'' PHAs are 
not eligible for participation. Agencies shall be selected to 
provide for diversity with respect to size, geography, and 
areas served (i.e., urban, suburban, and rural). Applicants 
must have held two public meetings on their HIP application 
proposal, preceded by 30 days prior notice to residents and the 
local community. Agencies shall be selected based on criteria 
to be established by HUD, which shall include the extent to 
which the HIP proposal generally identifies rules and 
regulations that impede achievement of its goals and objectives 
and why program participation is necessary to achieve such 
goals and objectives; the extent of local commitment and 
funding; the extent to which the applicant has a history of 
success in pursuing similar strategies to those identified in 
the application; and whether the proposal pursues one of two 
priority strategies. The three priority strategies are: (1) 
increasing housing opportunities, (2) rent reforms and family 
self-sufficiency, and (3) cost effectiveness.
    These more targeted criteria for PHA selection are intended 
to provide a clearer focus on what agencies plan to do with the 
deregulation permitted under the program, as well as why such 
deregulation is essential to carrying out goals and objectives. 
The priority strategies are intended to develop a focus on 
experimentation that can later be used as a model for federal 
policy makers in determining whether certain rules should be 
changed nationwide.
    Activities which can be undertaken with program funds are 
enumerated, subject to requirements that a PHA must assist not 
less than substantially the same number of low-income families 
with a comparable mix of families by family size. A number of 
existing statutory requirements are retained, including income 
targeting, Section 18 demolition and disposition rules, a 
number of tenant protections including lease requirements and 
eviction protections, portability, and other provisions. A 
number of procedural, PHA plan, and tenant participation 
requirements apply to any PHA policy changes under the program 
that would make a material change to tenant rents or 
contributions or to conditions of continued occupancy or 
participation, including requirements for hardship protections 
and transition policies. The purpose of these enhanced 
protections for assisted families is to ensure greater 
involvement of affected families in the policies being 
developed, and to ensure that such families are not adversely 
affected by activities being pursued under the more relaxed 
program rules.
    Additionally, the 20 HIP-lite agencies must comply with 
statutory rent requirements, may not impose time limits, may 
not establish work requirements, must replace demolished or 
disposed of public housing units on a one-for-one basis, and 
must include more extensive resident participation in any plan 
which provides for demolition or disposition of public housing 
units. HIP-lite is designed for agencies that may want to 
participate in innovative finance and development activities, 
but have no interest in pursuing rent and other tenant 
policies.
    As the Committee is concerned about the impact of certain 
policies on low-income families, the bill allows the Secretary 
to require an agency to modify policies that are harmful to 
assisted families, based on a determination that such policies 
are causing or have caused measurable harm to families, based 
on factors which include fewer families receiving assistance or 
specific types of families losing their assistance, 
noncompliance with the rent burden requirement, a reduction in 
the number of affordable units, noncompliance with targeting 
requirements, or a combination of these factors. In addition, 
PHAs are required to conduct an impact analysis before and 
after implementation of any policy change. Moreover, the bill 
places reasonable limitations on the ability of PHAs to impose 
time limits and work requirements in order to protect tenants 
from the potential harm that could result from these policies.
    HUD must perform evaluations of agencies participating in 
the program or may contract out such responsibility to an 
independent entity qualified to perform such task. The 
Committee expects and encourages HUD to use its authority to 
contract out the evaluating function to an independent entity. 
Such evaluations must use performance measures and identify 
models that can be replicated by other agencies. HUD is 
required to submit evaluation reports at 2, 4, and 10-year 
periods. The purpose of this more structured evaluation process 
is to improve the existing methodology for evaluating the 
successes and problems of the program. $15 million is 
authorized for HUD to conduct the required evaluations.
    $10 million is authorized in each of the years FY 2010 
through FY 2014 for capacity building and technical assistance 
to enhance the capabilities of low-income families assisted 
under the program to participate effectively in local policy 
deliberations.

                                Hearings

    The Committee on Financial Services held a hearing on May 
21, 2009, entitled ``The Section 8 Voucher Reform Act.'' The 
Honorable Shaun Donovan, Secretary of Housing and Urban 
Development, testified.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
July 8 and 9, 2009, and on July 23, 2009, ordered H.R. 3045, 
the Section 8 Voucher Reform Act of 2009, as amended, favorably 
reported to the House by a record vote of 41 yeas and 24 nays.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. A 
motion by Mr. Frank to report the bill, as amended, to the 
House with a favorable recommendation was agreed to by a record 
vote of 41 yeas and 24 nays (Record vote no. FC-34). The names 
of Members voting for and against follow:

----------------------------------------------------------------------------------------------------------------
         Representative             Aye       Nay     Present     Representative      Aye       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Frank......................        X   ........  .........  Mr. Bachus.......  ........        X   .........
Mr. Kanjorski..................        X   ........  .........  Mr. Castle.......        X   ........  .........
Ms. Waters.....................        X   ........  .........  Mr. King (NY)....  ........  ........  .........
Mrs. Maloney...................        X   ........  .........  Mr. Royce........  ........        X   .........
Mr. Gutierrez..................        X   ........  .........  Mr. Lucas........  ........        X   .........
Ms. Velazquez..................        X   ........  .........  Mr. Paul.........  ........        X   .........
Mr. Watt.......................  ........  ........  .........  Mr. Manzullo.....  ........        X   .........
Mr. Ackerman...................        X   ........  .........  Mr. Jones........        X   ........  .........
Mr. Sherman....................        X   ........  .........  Mrs. Biggert.....        X   ........  .........
Mr. Meeks......................        X   ........  .........  Mr. Miller (CA)..  ........  ........  .........
Mr. Moore (KS).................        X   ........  .........  Mrs. Capito......  ........        X   .........
Mr. Capuano....................        X   ........  .........  Mr. Hensarling...  ........        X   .........
Mr. Hinojosa...................        X   ........  .........  Mr. Garrett (NJ).  ........        X   .........
Mr. Clay.......................        X   ........  .........  Mr. Barrett (SC).  ........        X   .........
Mrs. McCarthy..................  ........  ........  .........  Mr. Gerlach......  ........        X   .........
Mr. Baca.......................        X   ........  .........  Mr. Neugebauer...  ........        X   .........
Mr. Lynch......................        X   ........  .........  Mr. Price (GA)...  ........        X   .........
Mr. Miller (NC)................        X   ........  .........  Mr. McHenry......  ........        X   .........
Mr. Scott......................        X   ........  .........  Mr. Campbell.....  ........        X   .........
Mr. Green......................        X   ........  .........  Mr. Putnam.......  ........        X   .........
Mr. Cleaver....................        X   ........  .........  Mrs. Bachmann....  ........        X   .........
Ms. Bean.......................        X   ........  .........  Mr. Marchant.....  ........  ........  .........
Ms. Moore (WI).................        X   ........  .........  Mr. McCotter.....  ........        X   .........
Mr. Hodes......................        X   ........  .........  Mr. McCarthy.....  ........        X   .........
Mr. Ellison....................        X   ........  .........  Mr. Posey........  ........        X   .........
Mr. Klein......................        X   ........  .........  Ms. Jenkins......  ........        X   .........
Mr. Wilson.....................        X   ........  .........  Mr. Lee..........  ........        X   .........
Mr. Perlmutter.................  ........  ........  .........  Mr. Paulsen......  ........        X   .........
Mr. Donnelly...................        X   ........  .........  Mr. Lance........  ........        X   .........
Mr. Foster.....................        X   ........  .........
Mr. Carson.....................        X   ........  .........
Ms. Speier.....................        X   ........  .........
Mr. Childers...................        X   ........  .........
Mr. Minnick....................        X   ........  .........
Mr. Adler......................        X   ........  .........
Ms. Kilroy.....................        X   ........  .........
Mr. Driehaus...................  ........        X   .........
Ms. Kosmas.....................        X   ........  .........
Mr. Grayson....................        X   ........  .........
Mr. Himes......................        X   ........  .........
Mr. Peters.....................        X   ........  .........
Mr. Maffei.....................        X   ........  .........
----------------------------------------------------------------------------------------------------------------

    During the consideration of the bill, the following 
amendments were disposed of by record votes. The names of 
Members voting for and against follow:
    An amendment by Mrs. Capito, No. 8, reducing authorized 
incremental dwelling units, was not agreed to by a record vote 
of 25 yeas and 39 nays (Record vote no. FC-29):

----------------------------------------------------------------------------------------------------------------
         Representative             Aye       Nay     Present     Representative      Aye       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Frank......................  ........        X   .........  Mr. Bachus.......        X   ........  .........
Mr. Kanjorski..................  ........        X   .........  Mr. Castle.......  ........        X   .........
Ms. Waters.....................  ........        X   .........  Mr. King (NY)....        X   ........  .........
Mrs. Maloney...................  ........        X   .........  Mr. Royce........        X   ........  .........
Mr. Gutierrez..................  ........        X   .........  Mr. Lucas........        X   ........  .........
Ms. Velazquez..................  ........        X   .........  Mr. Paul.........        X   ........  .........
Mr. Watt.......................  ........  ........  .........  Mr. Manzullo.....        X   ........  .........
Mr. Ackerman...................  ........        X   .........  Mr. Jones........  ........  ........  .........
Mr. Sherman....................  ........        X   .........  Mrs. Biggert.....  ........        X   .........
Mr. Meeks......................  ........        X   .........  Mr. Miller (CA)..        X   ........  .........
Mr. Moore (KS).................  ........        X   .........  Mrs. Capito......        X   ........  .........
Mr. Capuano....................  ........        X   .........  Mr. Hensarling...        X   ........  .........
Mr. Hinojosa...................  ........        X   .........  Mr. Garrett (NJ).        X   ........  .........
Mr. Clay.......................  ........        X   .........  Mr. Barrett (SC).        X   ........  .........
Mrs. McCarthy..................  ........        X   .........  Mr. Gerlach......  ........        X   .........
Mr. Baca.......................  ........        X   .........  Mr. Neugebauer...        X   ........  .........
Mr. Lynch......................  ........        X   .........  Mr. Price (GA)...        X   ........  .........
Mr. Miller (NC)................  ........        X   .........  Mr. McHenry......  ........  ........  .........
Mr. Scott......................  ........        X   .........  Mr. Campbell.....        X   ........  .........
Mr. Green......................  ........        X   .........  Mr. Putnam.......        X   ........  .........
Mr. Cleaver....................  ........        X   .........  Mrs. Bachmann....  ........  ........  .........
Ms. Bean.......................  ........        X   .........  Mr. Marchant.....        X   ........  .........
Ms. Moore (WI).................  ........        X   .........  Mr. McCotter.....        X   ........  .........
Mr. Hodes......................  ........        X   .........  Mr. McCarthy.....        X   ........  .........
Mr. Ellison....................  ........        X   .........  Mr. Posey........        X   ........  .........
Mr. Klein......................  ........        X   .........  Ms. Jenkins......        X   ........  .........
Mr. Wilson.....................  ........        X   .........  Mr. Lee..........        X   ........  .........
Mr. Perlmutter.................  ........  ........  .........  Mr. Paulsen......        X   ........  .........
Mr. Donnelly...................  ........        X   .........  Mr. Lance........        X   ........  .........
Mr. Foster.....................  ........        X   .........
Mr. Carson.....................  ........  ........  .........
Ms. Speier.....................  ........        X   .........
Mr. Childers...................  ........        X   .........
Mr. Minnick....................  ........        X   .........
Mr. Adler......................        X   ........  .........
Ms. Kilroy.....................  ........  ........  .........
Mr. Driehaus...................        X   ........  .........
Ms. Kosmas.....................  ........        X   .........
Mr. Grayson....................  ........        X   .........
Mr. Himes......................  ........        X   .........
Mr. Peters.....................  ........        X   .........
Mr. Maffei.....................  ........        X   .........
----------------------------------------------------------------------------------------------------------------

    An amendment by Mr. Neugebauer, No. 10, requiring offsets 
for news vouchers, was not agreed to by a record vote of 26 
yeas and 39 nays (FC-30):

----------------------------------------------------------------------------------------------------------------
         Representative             Aye       Nay     Present     Representative      Aye       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Frank......................  ........        X   .........  Mr. Bachus.......        X   ........  .........
Mr. Kanjorski..................  ........        X   .........  Mr. Castle.......        X   ........  .........
Ms. Waters.....................  ........        X   .........  Mr. King (NY)....        X   ........  .........
Mrs. Maloney...................  ........        X   .........  Mr. Royce........        X   ........  .........
Mr. Gutierrez..................  ........        X   .........  Mr. Lucas........        X   ........  .........
Ms. Velazquez..................  ........        X   .........  Mr. Paul.........        X   ........  .........
Mr. Watt.......................  ........  ........  .........  Mr. Manzullo.....        X   ........  .........
Mr. Ackerman...................  ........        X   .........  Mr. Jones........  ........  ........  .........
Mr. Sherman....................  ........        X   .........  Mrs. Biggert.....        X   ........  .........
Mr. Meeks......................  ........        X   .........  Mr. Miller (CA)..        X   ........  .........
Mr. Moore (KS).................  ........        X   .........  Mrs. Capito......        X   ........  .........
Mr. Capuano....................  ........        X   .........  Mr. Hensarling...        X   ........  .........
Mr. Hinojosa...................  ........        X   .........  Mr. Garrett (NJ).        X   ........  .........
Mr. Clay.......................  ........        X   .........  Mr. Barrett (SC).        X   ........  .........
Mrs. McCarthy..................  ........        X   .........  Mr. Gerlach......        X   ........  .........
Mr. Baca.......................  ........        X   .........  Mr. Neugebauer...        X   ........  .........
Mr. Lynch......................  ........        X   .........  Mr. Price (GA)...        X   ........  .........
Mr. Miller (NC)................  ........        X   .........  Mr. McHenry......  ........  ........  .........
Mr. Scott......................  ........        X   .........  Mr. Campbell.....        X   ........  .........
Mr. Green......................  ........        X   .........  Mr. Putnam.......        X   ........  .........
Mr. Cleaver....................  ........        X   .........  Mrs. Bachmann....  ........  ........  .........
Ms. Bean.......................  ........        X   .........  Mr. Marchant.....        X   ........  .........
Ms. Moore (WI).................  ........        X   .........  Mr. McCotter.....        X   ........  .........
Mr. Hodes......................  ........        X   .........  Mr. McCarthy.....        X   ........  .........
Mr. Ellison....................  ........        X   .........  Mr. Posey........        X   ........  .........
Mr. Klein......................  ........        X   .........  Ms. Jenkins......        X   ........  .........
Mr. Wilson.....................  ........        X   .........  Mr. Lee..........        X   ........  .........
Mr. Perlmutter.................  ........  ........  .........  Mr. Paulsen......        X   ........  .........
Mr. Donnelly...................  ........        X   .........  Mr. Lance........        X   ........  .........
Mr. Foster.....................  ........        X   .........
Mr. Carson.....................  ........        X   .........
Ms. Speier.....................  ........        X   .........
Mr. Childers...................  ........        X   .........
Mr. Minnick....................  ........        X   .........
Mr. Adler......................  ........        X   .........
Ms. Kilroy.....................  ........  ........  .........
Mr. Driehaus...................  ........        X   .........
Ms. Kosmas.....................  ........        X   .........
Mr. Grayson....................  ........        X   .........
Mr. Himes......................  ........        X   .........
Mr. Peters.....................  ........        X   .........
Mr. Maffei.....................  ........        X   .........
----------------------------------------------------------------------------------------------------------------

    An amendment by Mr. Price, No. 14, prohibiting firearms 
restrictions in federally assisted housing, was agreed to by a 
record vote of 38 yeas and 31 nays (FC-31):

----------------------------------------------------------------------------------------------------------------
         Representative             Aye       Nay     Present     Representative      Aye       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Frank......................  ........        X   .........  Mr. Bachus.......        X   ........  .........
Mr. Kanjorski..................        X   ........  .........  Mr. Castle.......  ........        X   .........
Ms. Waters.....................  ........        X   .........  Mr. King (NY)....  ........        X   .........
Mrs. Maloney...................  ........        X   .........  Mr. Royce........        X   ........  .........
Mr. Gutierrez..................  ........        X   .........  Mr. Lucas........        X   ........  .........
Ms. Velazquez..................  ........        X   .........  Mr. Paul.........        X   ........  .........
Mr. Watt.......................  ........        X   .........  Mr. Manzullo.....        X   ........  .........
Mr. Ackerman...................  ........        X   .........  Mr. Jones........  ........  ........  .........
Mr. Sherman....................  ........        X   .........  Mrs. Biggert.....        X   ........  .........
Mr. Meeks......................  ........        X   .........  Mr. Miller (CA)..        X   ........  .........
Mr. Moore (KS).................  ........        X   .........  Mrs. Capito......        X   ........  .........
Mr. Capuano....................  ........        X   .........  Mr. Hensarling...        X   ........  .........
Mr. Hinojosa...................  ........        X   .........  Mr. Garrett (NJ).        X   ........  .........
Mr. Clay.......................  ........        X   .........  Mr. Barrett (SC).        X   ........  .........
Mrs. McCarthy..................  ........        X   .........  Mr. Gerlach......        X   ........  .........
Mr. Baca.......................        X   ........  .........  Mr. Neugebauer...        X   ........  .........
Mr. Lynch......................  ........        X   .........  Mr. Price (GA)...        X   ........  .........
Mr. Miller (NC)................  ........        X   .........  Mr. McHenry......        X   ........  .........
Mr. Scott......................  ........        X   .........  Mr. Campbell.....        X   ........  .........
Mr. Green......................  ........        X   .........  Mr. Putnam.......        X   ........  .........
Mr. Cleaver....................  ........        X   .........  Mrs. Bachmann....  ........  ........  .........
Ms. Bean.......................  ........        X   .........  Mr. Marchant.....        X   ........  .........
Ms. Moore (WI).................  ........        X   .........  Mr. McCotter.....        X   ........  .........
Mr. Hodes......................        X   ........  .........  Mr. McCarthy.....        X   ........  .........
Mr. Ellison....................  ........        X   .........  Mr. Posey........        X   ........  .........
Mr. Klein......................  ........        X   .........  Ms. Jenkins......        X   ........  .........
Mr. Wilson.....................        X   ........  .........  Mr. Lee..........        X   ........  .........
Mr. Perlmutter.................  ........        X   .........  Mr. Paulsen......        X   ........  .........
Mr. Donnelly...................        X   ........  .........  Mr. Lance........        X   ........  .........
Mr. Foster.....................        X   ........  .........
Mr. Carson.....................  ........        X   .........
Ms. Speier.....................  ........        X   .........
Mr. Childers...................        X   ........  .........
Mr. Minnick....................        X   ........  .........
Mr. Adler......................        X   ........  .........
Ms. Kilroy.....................  ........        X   .........
Mr. Driehaus...................  ........        X   .........
Ms. Kosmas.....................        X   ........  .........
Mr. Grayson....................        X   ........  .........
Mr. Himes......................  ........        X   .........
Mr. Peters.....................        X   ........  .........
Mr. Maffei.....................        X   ........  .........
----------------------------------------------------------------------------------------------------------------

    An amendment by Mr. Price, No. 16, regarding acceptable 
identification requirements, was agreed to by a record vote of 
37 yeas and 31 nays (FC-32):

----------------------------------------------------------------------------------------------------------------
         Representative             Aye       Nay     Present     Representative      Aye       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Frank......................  ........        X   .........  Mr. Bachus.......        X   ........  .........
Mr. Kanjorski..................        X   ........  .........  Mr. Castle.......        X   ........  .........
Ms. Waters.....................  ........        X   .........  Mr. King (NY)....        X   ........  .........
Mrs. Maloney...................  ........        X   .........  Mr. Royce........        X   ........  .........
Mr. Gutierrez..................  ........        X   .........  Mr. Lucas........        X   ........  .........
Ms. Velazquez..................  ........        X   .........  Mr. Paul.........  ........        X   .........
Mr. Watt.......................  ........        X   .........  Mr. Manzullo.....        X   ........  .........
Mr. Ackerman...................  ........        X   .........  Mr. Jones........  ........  ........  .........
Mr. Sherman....................  ........        X   .........  Mrs. Biggert.....        X   ........  .........
Mr. Meeks......................  ........        X   .........  Mr. Miller (CA)..        X   ........  .........
Mr. Moore (KS).................        X   ........  .........  Mrs. Capito......        X   ........  .........
Mr. Capuano....................  ........        X   .........  Mr. Hensarling...        X   ........  .........
Mr. Hinojosa...................  ........        X   .........  Mr. Garrett (NJ).        X   ........  .........
Mr. Clay.......................  ........        X   .........  Mr. Barrett (SC).        X   ........  .........
Mrs. McCarthy..................  ........  ........  .........  Mr. Gerlach......        X   ........  .........
Mr. Baca.......................  ........        X   .........  Mr. Neugebauer...        X   ........  .........
Mr. Lynch......................  ........        X   .........  Mr. Price (GA)...        X   ........  .........
Mr. Miller (NC)................  ........        X   .........  Mr. McHenry......        X   ........  .........
Mr. Scott......................  ........        X   .........  Mr. Campbell.....        X   ........  .........
Mr. Green......................  ........        X   .........  Mr. Putnam.......        X   ........  .........
Mr. Cleaver....................  ........        X   .........  Mrs. Bachmann....  ........  ........  .........
Ms. Bean.......................        X   ........  .........  Mr. Marchant.....        X   ........  .........
Ms. Moore (WI).................  ........        X   .........  Mr. McCotter.....        X   ........  .........
Mr. Hodes......................  ........        X   .........  Mr. McCarthy.....        X   ........  .........
Mr. Ellison....................  ........        X   .........  Mr. Posey........        X   ........  .........
Mr. Klein......................  ........        X   .........  Ms. Jenkins......        X   ........  .........
Mr. Wilson.....................        X   ........  .........  Mr. Lee..........        X   ........  .........
Mr. Perlmutter.................  ........        X   .........  Mr. Paulsen......        X   ........  .........
Mr. Donnelly...................        X   ........  .........  Mr. Lance........        X   ........  .........
Mr. Foster.....................        X   ........  .........
Mr. Carson.....................  ........        X   .........
Ms. Speier.....................  ........        X   .........
Mr. Childers...................        X   ........  .........
Mr. Minnick....................        X   ........  .........
Mr. Adler......................        X   ........  .........
Ms. Kilroy.....................  ........        X   .........
Mr. Driehaus...................        X   ........  .........
Ms. Kosmas.....................        X   ........  .........
Mr. Grayson....................  ........        X   .........
Mr. Himes......................  ........        X   .........
Mr. Peters.....................  ........        X   .........
Mr. Maffei.....................  ........        X   .........
----------------------------------------------------------------------------------------------------------------

    An amendment by Mr. Neugebauer, No. 18, striking section 20 
(relating to effect of foreclosure on section 8 tenancies), was 
not agreed to by a record vote of 28 yeas and 42 nays (FC-33):

----------------------------------------------------------------------------------------------------------------
         Representative             Aye       Nay     Present     Representative      Aye       Nay     Present
----------------------------------------------------------------------------------------------------------------
Mr. Frank......................  ........        X   .........  Mr. Bachus.......        X   ........  .........
Mr. Kanjorski..................  ........        X   .........  Mr. Castle.......        X   ........  .........
Ms. Waters.....................  ........        X   .........  Mr. King (NY)....        X   ........  .........
Mrs. Maloney...................  ........        X   .........  Mr. Royce........        X   ........  .........
Mr. Gutierrez..................  ........        X   .........  Mr. Lucas........        X   ........  .........
Ms. Velazquez..................  ........        X   .........  Mr. Paul.........        X   ........  .........
Mr. Watt.......................  ........        X   .........  Mr. Manzullo.....        X   ........  .........
Mr. Ackerman...................  ........        X   .........  Mr. Jones........  ........  ........  .........
Mr. Sherman....................  ........        X   .........  Mrs. Biggert.....        X   ........  .........
Mr. Meeks......................  ........        X   .........  Mr. Miller (CA)..        X   ........  .........
Mr. Moore (KS).................  ........        X   .........  Mrs. Capito......        X   ........  .........
Mr. Capuano....................  ........        X   .........  Mr. Hensarling...        X   ........  .........
Mr. Hinojosa...................  ........        X   .........  Mr. Garrett (NJ).        X   ........
Mr. Clay.......................  ........        X   .........  Mr. Barrett (SC).        X   ........  .........
Mrs. McCarthy..................  ........        X   .........  Mr. Gerlach......        X   ........  .........
Mr. Baca.......................  ........        X   .........  Mr. Neugebauer...        X   ........  .........
Mr. Lynch......................  ........        X   .........  Mr. Price (GA)...        X   ........  .........
Mr. Miller (NC)................  ........        X   .........  Mr. McHenry......        X   ........  .........
Mr. Scott......................  ........        X   .........  Mr. Campbell.....        X   ........  .........
Mr. Green......................  ........        X   .........  Mr. Putnam.......        X   ........  .........
Mr. Cleaver....................  ........        X   .........  Mrs. Bachmann....        X   ........  .........
Ms. Bean.......................  ........        X   .........  Mr. Marchant.....        X   ........  .........
Ms. Moore (WI).................  ........        X   .........  Mr. McCotter.....        X   ........  .........
Mr. Hodes......................  ........        X   .........  Mr. McCarthy.....        X   ........  .........
Mr. Ellison....................  ........        X   .........  Mr. Posey........        X   ........  .........
Mr. Klein......................  ........        X   .........  Ms. Jenkins......        X   ........  .........
Mr. Wilson.....................  ........        X   .........  Mr. Lee..........        X   ........  .........
Mr. Perlmutter.................  ........        X   .........  Mr. Paulsen......        X   ........  .........
Mr. Donnelly...................  ........        X   .........  Mr. Lance........        X   ........  .........
Mr. Foster.....................  ........        X   .........
Mr. Carson.....................  ........        X   .........
Ms. Speier.....................  ........        X   .........
Mr. Childers...................  ........        X   .........
Mr. Minnick....................  ........        X   .........
Mr. Adler......................  ........        X   .........
Ms. Kilroy.....................  ........        X   .........
Mr. Driehaus...................  ........        X   .........
Ms. Kosmas.....................  ........        X   .........
Mr. Grayson....................  ........        X   .........
Mr. Himes......................  ........        X   .........
Mr. Peters.....................  ........        X   .........
Mr. Maffei.....................  ........        X   .........
----------------------------------------------------------------------------------------------------------------

    The following other amendments were also considered by the 
Committee:
    An amendment by Mrs. Capito, No. 1, regarding publishing 
utility data, was agreed to, by a voice vote.
    An amendment by Mrs. Biggert (and Ms. Waters), No. 2, a 
manager's amendment, was agreed to, by a voice vote.
    An amendment by Mr. Lynch, No. 3, a provision to certain 
assisted housing residents, was offered and withdrawn, then re-
offered and agreed to, by a voice vote.
    An amendment by Mr. Adler, No. 4, regarding a study of use 
of income databases to reduce subsidy errors, was agreed to, by 
a voice vote.
    An amendment by Mrs. Capito, No. 5, regarding a study of 
effects of section 8 program on HUD budget and programs, was 
agreed to, by a voice vote.
    An amendment by Mr. Maffei, No. 6, regarding veterans 
vouchers used by veterans on turnover, was agreed to, by a 
voice vote.
    An amendment by Mr. Himes, No. 7, providing a prohibition 
on setting higher rents for disabled payment standard, was 
agreed to by a voice vote.
    An amendment by Mrs. Maloney, No. 9, requiring a HUD report 
on revenue and cost impact, was agreed to, by a voice vote.
    An amendment by Mr. Miller (CA), No. 11, regarding family 
self-sufficiency, was agreed to by a voice vote.
    An amendment by Mrs. Biggert, No. 12, regarding PHA 
reporting authority, was offered and withdrawn.
    An amendment by Mrs. Biggert, No. 13, regarding individual 
reporting of rent payments, was agreed to by a voice vote.
    An amendment by Mr. Miller (CA), No. 15, setting time 
limitations on assistance, was not agreed to by a voice vote.
    An amendment by Mrs. Moore (WI), No. 17, including 
reduction of racial segregation in performance assessment, was 
agreed to by a voice vote. An amendment by Mr. McCarthy (CA) to 
the amendment by Mrs. Moore (WI), No. 17a, was not agreed to by 
a voice vote.
    An amendment by Mrs. Biggert, No. 19, striking the denials 
of admissions section, was not agreed to by a voice vote.
    An amendment by Mrs. Biggert, No. 20, modifying the denials 
of admission section, was, as modified by unanimous consent, 
agreed to.
    An amendment by Ms. Waters (and Mr. Frank), No. 21, 
regarding the Housing Innovation Program, was agreed to by 
voice vote.
    An amendment by Mr. McCarthy (CA), No. 22, regarding a 
study on effects of vouchers on certain municipalities, was 
offered and withdrawn.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee held a hearing and made 
findings that are reflected in this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:
    The goals of H.R. 3045, the ``Section 8 Voucher Reform Act 
of 2009,'' are to authorize a reliable funding formula for 
annual renewal of Section 8 housing vouchers, to promote 
economic self-sufficiency and create homeownership 
opportunities for families in the Section 8 and public housing 
programs, to expand voucher assistance, and to simplify rent 
calculation and inspection requirements for Section 8 vouchers, 
project-based assistance, and public housing. The bill also 
expands and improves the ``Moving to Work'' program, which was 
created to enable public housing agencies undertake innovative 
housing proposals, with the purpose of identifying models and 
policies that might be extended to all public housing agencies. 
The bill is designed to accomplish these goals, while 
maintaining important protections for the low-income families 
who are assisted under these federal housing programs. The bill 
maintains current income targeting requirements, statutory rent 
protections, and federal housing quality inspection standards. 
The bill improves tenant rules, increasing transparency and due 
process. The bill authorizes enhanced voucher assistance to 
protect tenants in expiring mortgage properties and preserves 
affordable housing through project-based preservation voucher 
assistance, and increased flexibility for use of project-based 
vouchers.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                Washington, DC, September 16, 2009.
Hon. Barney Frank,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3045, the Section 
8 Voucher Reform Act of 2009.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Chad Chirico.
            Sincerely,
                                         Robert A. Sunshine
                              (For Douglas W. Elmendorf, Director).
    Enclosure.

H.R. 3045--Section 8 Voucher Reform Act of 2009

    Summary: H.R. 3045 would amend the United States Housing 
Act of 1937 to change certain aspects of the Department of 
Housing and Urban Development's (HUD's) rental assistance 
programs. The bill would authorize funding for 150,000 new 
housing vouchers; alter calculations of tenant income, tenant 
rent, and public housing authority (PHA) funding; change 
requirements for the inspection of housing units; and adjust 
requirements for the targeting of housing assistance.
    CBO estimates that implementing this legislation would have 
a net cost of $7.6 billion over the 2010-2014 period, assuming 
appropriation of the necessary amounts. Enacting the bill would 
not affect direct spending or revenues.
    H.R. 3045 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA).
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 3045 is shown in the following table. 
The costs of this legislation fall within budget function 600 
(income security).

                                     ESTIMATED BUDGETARY IMPACT OF H.R. 3045
----------------------------------------------------------------------------------------------------------------
                                                               By fiscal year, in millions of dollars--
                                                    ------------------------------------------------------------
                                                       2010      2011      2012      2013      2014    2010-2014
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION
 
Income Determination Changes:
    Earned Income Disregard:
        Estimated Authorization Level..............       332       333       333       334       366      1,698
        Estimated Outlays..........................       199       332       333       334       353      1,551
    Imputed Return on Assets:
        Estimated Authorization Level..............        15        15        15        15        15         75
        Estimated Outlays..........................         9        15        15        15        15         69
Changes to Allowances:
    Elderly and Disabled Allowance:
        Estimated Authorization Level..............       234       234       234       234       252      1,188
        Estimated Outlays..........................       140       234       234       234       245      1,087
    Medical Expense Allowance:
        Estimated Authorization Level..............      -214      -222      -231      -241      -253     -1,161
        Estimated Outlays..........................      -128      -218      -227      -237      -248     -1,058
    Child Care Allowance:
        Estimated Authorization Level..............      -113      -114      -116      -117      -118       -578
        Estimated Outlays..........................       -68      -114      -115      -116      -117       -530
    Dependent Allowance:
        Estimated Authorization Level..............        23        23        23        23        23        115
        Estimated Outlays..........................        14        23        23        23        23        106
Targeting and Eligibility Changes:
    Targeting:
        Estimated Authorization Level..............       -58      -118      -179      -181      -183       -719
        Estimated Outlays..........................       -35       -94      -154      -180      -182       -645
    Income Eligibility:
        Estimated Authorization Level..............        22        45        45        46        47        205
        Estimated Outlays..........................        13        36        45        46        47        187
    Asset Eligibility:
        Estimated Authorization Level..............         *         *         *         *         *          1
        Estimated Outlays..........................         *         *         *         *         *          1
Other Provisions:
    Incremental Vouchers:                               1,155     1,176     1,193     1,211     1,235      5,970
        Estimated Authorization Level..............     1,010     1,173     1,191     1,209     1,232      5,815
        Estimated Outlays..........................  ........  ........  ........  ........  ........  .........
    Enhanced Vouchers:
        Estimated Authorization Level..............        16        76       186       254       335        868
        Estimated Outlays..........................        10        52       142       227       303        734
    Family Self-Sufficiency Coordinators:
        Estimated Authorization Level..............        22        23        23        24        25        117
        Estimated Outlays..........................        13        23        23        24        24        107
    Tenant Protection Vouchers:
        Estimated Authorization Level..............        10        10        10        10        10         50
        Estimated Outlays..........................         6        10        10        10        10         46
    Resident Technical Assistance:
        Estimated Authorization Level..............        10        10        10        10        10         50
        Estimated Outlays..........................         2        10        10        10        10         42
    Enhanced Vouchers for Georgetown Homes:
        Estimated Authorization Level..............         4         4         4         4         4         20
        Estimated Outlays..........................         3         4         4         4         4         19
    Housing Innovation Program Evaluation:
        Estimated Authorization Level..............        15         0         0         0         0         15
        Estimated Outlays..........................         2         2         2         2         2         10
    U.S. Interagency Council on Homelessness:
        Estimated Authorization Level..............         0         0         3         3         3          9
        Estimated Outlays..........................         0         0         2         3         3          8
    Family Self-Sufficiency Program:
        Estimated Authorization Level..............        10         0         0         0         0         10
        Estimated Outlays..........................         1         1         1         1         1          5
Total Changes in Spending Subject to Appropriation:
    Estimated Authorization Level..................     1,484     1,496     1,554     1,628     1,771      7,934
    Estimated Outlays..............................     1,191     1,490     1,539     1,608     1,724     7,554
----------------------------------------------------------------------------------------------------------------
Note: Components may not sum to totals because of rounding; * = between zero and $500,000.

    Basis of estimate: Implementing H.R. 3045 would lead to a 
net increase in discretionary spending for housing assistance, 
primarily by increasing the number of tenant-based vouchers, 
reducing the amount of income that is used to calculate tenant 
rent contributions, and increasing allowable deductions for the 
elderly and disabled. The increase in costs for those 
provisions (along with other smaller increases) would be 
partially offset by savings for other program changes, leading 
to an estimated net increase in costs of $7.6 billion over the 
2010-2014 period. All such changes would be subject to 
appropriation actions.

Background

    Almost 5 million households receive assistance through 
HUD's various rental assistance programs, including the Section 
8 Housing Choice Voucher program, public housing, and other 
project-based subsidy programs. To be eligible for assistance, 
family income must be below either 50 percent or 80 percent of 
the area median income, depending on the program. Targeting 
requirements in each of the programs establish a minimum 
percentage of assisted families who must be below 30 percent of 
the area median income. Tenants who receive assistance 
generally pay 30 percent of their adjusted monthly income 
towards rent. Funding from HUD covers the difference between 
what the tenant pays and the full rent for the unit (up to 
certain limits). In the case of public housing, HUD provides 
PHAs with operating and capital funding that allows them to 
subsidize rents.
    Families participating in HUD's rental assistance programs 
have their incomes certified when they enter the program and at 
least annually thereafter. Current law allows various 
adjustments to income prior to calculating a family's rent 
payment. Families may deduct any medical expenses over 3 
percent of income and all child care expenses. In addition, 
households may deduct $400 from gross income if they include an 
elderly or disabled member, and all households may deduct $480 
for each dependent. As a result of these deductions, the 
average adjusted income is approximately 10 percent lower than 
the average gross income. In 2008, the average family rent 
payment was about $280 per month and the average subsidy 
payment was about $550 per month.
    For this estimate, CBO assumes that H.R. 3045 will be 
enacted near the end of fiscal year 2009 and that spending will 
follow historical outlay patterns. In cases where the tenant 
rent contribution would change, CBO assumes that appropriations 
will be adjusted to reflect the costs of such changes. In 
addition, CBO assumes that these changes would not affect the 
funding requirements for about 300,000 public housing or 
voucher units covered by Moving-to-Work agreements because 
those PHAs are funded pursuant to their agreements.

Income determination changes

    Section 3 would require PHAs and property owners to change 
the way they calculate income for determining housing 
assistance. In total, those changes would cost $1.6 billion 
over the 2010-2019 period, assuming appropriation of the 
necessary amounts.
    Earned Income Disregard. Section 3 would define earned 
income as the amount of income earned by a family in the prior 
year less 10 percent of the lower of earnings in the prior year 
or $9,000 in 2010 dollars. The $9,000 threshold would be 
inflated each year, rounded down to the nearest multiple of 
$1,000. Approximately 30 percent of tenants in HUD's rental 
assistance programs report earned income. The total earned 
income for those families is about $24 billion each year. 
Changing the amount disregarded to 10 percent of the first 
$9,000 of earned income would reduce income (that is counted 
for purposes of determining housing assistance) by about $1.2 
billion, and would lower tenant rent contributions by about 
$340 million each year. Assuming appropriation of the necessary 
amounts, CBO estimates that this provision would cost nearly 
$1.6 billion over the 2010-2014 period. About half of this cost 
would be for the Housing Choice Voucher Program, with the other 
half split roughly evenly between the public housing and 
project-based subsidy programs.
    Imputed Return on Assets. Under current law, housing 
authorities and property owners calculate a tenant's imputed 
rate of return on any assets over $5,000 by using an interest 
rate determined by HUD. If the imputed return on assets is 
greater than actual income from assets, the imputed return is 
included in the family's income total. Section 3 would 
eliminate the calculation of imputed returns. Based on data 
provided by HUD, CBO estimates that over 9 percent of families 
(about 460,000) have income from assets, half of which include 
an imputed return on assets. Under the bill, asset income 
counted for determining housing assistance would decrease by 
about $48 million per year. Assuming appropriation of the 
necessary amounts, CBO estimates that excluding the imputed 
return on assets would cost $69 million over the 2010-2014 
period.

Changes to allowances

    This bill would change how allowances are used to lower 
income to determine housing assistance; on net, CBO estimates 
that implementing these provisions would reduce outlays by $458 
million over the 2010-2014 period, assuming appropriation 
actions consistent with the bill.
    Elderly and Disabled Allowance. Section 3 would increase 
the amount that can be deducted by elderly and disabled 
households from $400 to $725, and would inflate that amount 
each year, rounded down to the nearest multiple of $25. Based 
on data provided by HUD, CBO estimates that this deduction is 
claimed by about half of assisted households. One percent of 
families claiming the allowance would not see any additional 5 
benefit from the increase because their adjusted incomes are 
already at zero. Assuming appropriation of the necessary 
amounts, CBO estimates that increasing the dependent allowance 
would cost $1 billion over the 2010-2014 period.
    Medical Expense Allowance. Elderly and disabled families 
currently deduct the amount by which unreimbursed medical 
expenses exceed 3 percent of the family's income. Based on HUD 
data for 2008, CBO estimates that 17 percent of families claim 
an average allowance of $2,000 each (for a total of $1.6 
billion). The bill would decrease the amount of medical 
expenses that can be deducted to the amount that exceeds 10 
percent of the family's income. CBO estimates that this would 
cut the number of families claiming medical expenses and the 
total amount claimed by roughly one third. Assuming that 
appropriations are reduced accordingly, CBO estimates that 
implementing this provision would save about $1 billion over 
the 2010-2014 period.
    Child Care Allowance. Families now living in assisted 
housing may deduct any child care expenses necessary to enable 
a member of the family to be employed or attend school. Section 
3 would change current law to only allow such families to 
deduct child care expenses that exceed 10 percent of their 
annual family income. Based on data provided by HUD, CBO 
estimates that about 5 percent of assisted families (about 
220,000) claim child care allowances of about $3,100 each. 
Assuming that appropriations are reduced accordingly, CBO 
estimates that altering the child care allowance would reduce 
outlays by $530 million over the 2010-2014 period.
    Dependent Allowance. Section 3 also would increase the 
amount that can be deducted for dependents from $480 to $500, 
and would inflate that amount each year, rounded down to the 
nearest multiple of $25. Based on HUD data, CBO estimates that 
this allowance is currently claimed for about 4 million 
dependents. About 8 percent of families claiming the allowance 
would not see any additional benefit from the increase because 
their adjusted incomes are already at zero. Assuming 
appropriation of the necessary amounts, CBO estimates that 
increasing the dependent allowance would cost $106 million over 
the 2010-2014 period.

Targeting and eligibility changes

    H.R. 3045 would affect how household income and assets are 
used to target assistance and determine eligibility. On net, 
CBO estimates that implementing these provisions would reduce 
outlays by $458 million over the 2010-2014 period, assuming 
that appropriations are adjusted accordingly.
    Targeting. Currently, at least 75 percent of families 
initially provided tenant-based assistance must have incomes 
that do not exceed 30 percent of the area median income. 
Section 5 would change this targeting requirement so that at 
least 75 percent of families initially provided assistance must 
have incomes that are below the higher of the poverty 6 line or 
30 percent of the area median income. Currently, 73 percent of 
the tenant-based population has income below 30 percent of the 
area median income. Adjusting the targeting limit to include 
the poverty line would increase the number of tenants below the 
limit to 77 percent. Assuming that housing authorities would 
issue vouchers in a manner that gradually would move the 
percent of families under the new targeting limit back to the 
required level, CBO estimates that approximately 50,000 tenants 
with incomes over the new targeting limit would replace tenants 
below the limit as vouchers turn over. The subsidy for each new 
family would be about $3,300 lower than the families being 
replaced. Assuming that appropriations are reduced accordingly, 
CBO estimates that the change in voucher targeting would save 
$645 million over the 2010-2014 period.
    Section 5 would make a similar change to the targeting 
requirements for public housing and project-based vouchers. 
Currently, at least 40 percent of families initially provided 
assistance through these programs must have incomes that do not 
exceed 30 percent of the area median income. The bill would 
change this targeting requirement so that at least 40 percent 
of families initially provided assistance must have incomes 
that are below the higher of the poverty line or 30 percent of 
the area median income. About 73 percent of families in these 
programs have incomes below 30 percent of the area median. CBO 
does not anticipate any savings from the change as housing 
authorities and property owners could currently increase the 
number of tenants with incomes above 30 percent of the area 
median and still meet the targeting requirements.
    Income Eligibility. Under current law, families with income 
over 80 percent of the area median income at their initial 
certification are not eligible for assistance. Eligibility 
tests are not done after the initial certification (incomes are 
certified each year to determine tenant rent contribution); 
therefore, a family may have their income rise above 80 percent 
of the area median and continue to receive assistance. Section 
4 would require families to be below 80 percent of the median 
at any annual income certification, but would make enforcement 
of this provision discretionary for families living in public 
housing or project-based units.
    Based on data provided by HUD, CBO estimates that 
approximately 7,200 families currently receiving assistance 
(primarily in the tenant-based program) would lose their 
subsidy. Because there is unmet demand for participation in 
HUD's rental assistance programs, CBO expects that families 
made ineligible would be replaced by families on housing 
authority or property owner waiting lists. Replacing ineligible 
families with families with average income would cost the 
government an additional $6,000 each. Assuming appropriation of 
the necessary amounts, CBO estimates that this provision would 
cost $187 million over the 2010-2014 period.
    Asset Eligibility. Section 4 would make any family with 
over $100,000 in assets ineligible for assistance, but would 
leave the enforcement of this provision up to the discretion of 
the PHAs for elderly and disabled families as well as all 
families living in public housing. Based on HUD data, CBO 
estimates that about 700 families would become ineligible for 
assistance. Assuming appropriation of the necessary amounts, 
CBO estimates that this provision would cost $1 million over 
the 2010-2014 period.

Other provisions

    H.R. 3045 would affect federal housing assistance programs 
in a number of other ways including an increase in the total 
number of vouchers issued and a reduction in the percent of 
household income that some families pay for rent. In total, 
implementing those changes would cost $6.8 billion over the 
2010-2014 period, assuming appropriation of the necessary 
amounts.
    Incremental Vouchers. Section 18 would authorize the 
appropriation of such sums as are necessary to fund 150,000 new 
tenant-based vouchers. Based on HUD data, CBO estimates that 
the average annual cost of a tenant-based voucher is currently 
about $7,500. Assuming appropriation of the necessary amounts 
and adjusting for projected changes in rents and tenant 
incomes, CBO estimates that increasing the total number of 
vouchers by 150,000 by 2014 would cost $5.8 billion over the 
2010-2014 period.
    Enhanced Vouchers. Section 16 would require HUD, subject to 
the availability of appropriated funds, to issue housing 
vouchers to certain families assisted though the below-market 
interest rate and interest reduction payment programs upon 
maturation of a property's HUD insured mortgage. Based on data 
provided by HUD, CBO estimates that about 40,000 families would 
become eligible for the enhanced vouchers over the next five 
years. Assuming appropriation of the necessary amounts, CBO 
estimates that implementing this provision would cost $734 
million over the 2010-2014 period.
    Tenant Protection Vouchers. Section 6 would require HUD, 
subject to the availability of appropriated funds, to issue 
tenant-protection vouchers to replace dwelling units that cease 
to be available as assisted housing. Currently, HUD only issues 
tenant-protection vouchers for units that have been occupied 
within the past 24 months. Over the past five years, HUD has 
issued an average of 25,000 tenant protection vouchers each 
year. Based on information provided by HUD, CBO estimates that 
about 1,300 additional vouchers would be issued each year 
(assuming a 95 percent occupancy rate for properties losing 
assistance) at an average cost of $7,500. Assuming 
appropriation of the necessary amounts, CBO estimates that 
implementing this provision would cost $45 million over the 
2010-2014 period.
    Family Self-Sufficiency Administrative Costs. Section 7 
would establish a new formula to calculate fees paid to public 
housing agencies to cover the costs of employing family self-
sufficiency coordinators. Based on data provided by HUD, CBO 
estimates that approximately 930 coordinators would be funded 
under the new formula. The average annual full-time 
compensation for family self-sufficiency coordinators was 
$63,000 in 2003. In 2009, $50 million was appropriated for 
funding family self-sufficiency coordinators. Assuming 
appropriation of the necessary amounts and adjusting for 
projected changes in salary over time, CBO estimates that this 
provision would cost $378 million above the levels currently 
authorized over the 2010-2014 period.
    Additional Provisions. CBO estimates that implementing 
other provisions of H.R. 3045 would cost a total of $84 million 
over the 2010-2014 period, assuming appropriation of the 
authorized amounts. That amount includes:
           $42 million to provide technical assistance 
        to low-income families participating in a PHA's process 
        of developing an annual plan as part of the Housing 
        Innovation Program;
           $19 million to provide enhanced voucher 
        assistance to certain tenants of the New Georgetown 
        Homes development in Boston, MA;
           $10 million for evaluations of PHAs 
        participating in the Housing Innovation Program;
           $8 million for the U.S. Interagency Council 
        on Homelessness, and
           $5 million for an evaluation of the Family 
        Self-Sufficiency Program.
    Intergovernmental and private-sector impact: H.R. 3045 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. State, local, and tribal governments would 
benefit from housing assistance activities authorized in the 
bill. Any costs those governments incur to comply with grant 
requirements would result from conditions of federal 
assistance.
    Estimate prepared by: Federal costs: Chad Chirico; Impact 
on state, local, and tribal governments: Lisa Ramirez-Branum; 
Impact on the private sector: Patrick Bernhardt.
    Estimate approved by: Peter H. Fontaine, Assistant Director 
for Budget Analysis.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional Authority of Congress to enact this legislation 
is provided by Article 1, section 8, clause 1 (relating to the 
general welfare of the United States) and clause 3 (relating to 
the power to regulate interstate commerce).

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    In compliance with clause 9 of rule XXI, the Committee is 
in receipt of the following correspondence submitted by Mr. 
Lynch regarding the provision in section 16(c) of enhanced 
voucher assistance to certain residents of New Georgetowne 
Homes. Further, H.R. 3045 does not contain any limited tax 
benefits or limited tariff benefits as defined in clause 9 of 
rule XXI.


             Section-by-Section Analysis of The Legislation


Section 1. Short title and table of contents

    Short title identifying the bill as the ``Section 8 Voucher 
Reform Act of 2009.''

Section 2. Inspection of dwelling units

    Makes numerous changes to inspection requirements for 
dwelling units serving Section 8 voucher holders. Retains the 
initial inspection requirement, but permits occupancy and 
payments to be made for up to 30 days if a unit fails 
inspection as a result of non-life threatening conditions. 
However, payments must be suspended if the deficiencies are not 
corrected within 30 days. Also allows a PHA to permit occupancy 
prior to inspection pursuant to an ``alternative inspection 
method'' done during the preceding 12 months, which is defined 
as a federal, state or local program which meets standards 
comparable to federal Housing Quality Standards (HQS). In this 
case, payments may not be made until the property passes a 
federal HQS inspection, but may be made retroactive to the 
beginning of the lease term when such an inspection is 
subsequently completed.
    Changes the annual re-inspection requirement to a biennial 
requirement, permits re-inspections to be done under an 
``alternative inspection method,'' and authorizes an interim 
inspection upon notification by a tenant that the property does 
not meet HQS.
    Permits PHAs to withhold payments to any owner of a unit 
that fails inspection, with withheld funds subsequently paid to 
the owner if the deficiencies are corrected within 30 days (or 
such longer period as a PHA may establish) if the deficiency is 
not life-threatening. Requires PHAs to abate payments to owners 
of units that fail inspections, if the deficiencies are not 
corrected within 24 hours if life threatening or within 30 days 
(or such longer period as the PHA may establish) if not life 
threatening. Prohibits voucher holders from being evicted 
because of any withholding or abatement of assistance. If the 
unit is not repaired within 60 days of assistance being abated, 
the PHA must terminate the housing assistance contract and the 
tenant must be notified that the tenant will have to move. In 
such case, the tenant must be given: (a) at least 90 days to 
lease a new unit, (b) financial assistance in searching for a 
unit, and (c) preference for the first available public housing 
unit owned by the PHA if they can't find a new unit.
    Permissively gives PHAs authority to use abated funds to 
make repairs of properties that fail inspection, with no PHA 
liability related to such repairs if made by a licensed, 
bonded, and insured contractor.

Section 3. Rent reform and income reviews

    Alternative rents: Allows PHAs to establish ceiling rents, 
income-tiered rents, and percentage of income rents for non-
elderly, non-disabled families in public housing--except that 
rent may not exceed the Brooke limitation (30 percent of a 
tenant's income).
    Rent Reforms. Reforms the calculation of income used to 
determine rent payments under the voucher, public housing, and 
project-based assistance programs, as follows:
    Recertification: Modifies the annual certification 
requirement to permit PHAs to recertify ``fixed income'' 
families (those with more than 90 percent of income from a 
combination of Social Security, SSI, governmental and private 
pensions, and other periodic payments of substantially the same 
amount from year to year) only every three years. For all 
families, interim re-certifications are to be done only if 
annual income (excluding earned income) increases by $1,200 or 
if a family requests a recertification if its income falls by 
$1,200 or more (or such lesser amount as the PHA may 
establish).
    Rent Simplification: Uses prior year income, except for 
initial or interim re-certifications. Raises the threshold for 
deduction of child care expenses to cover only expenses over 10 
percent of annual family net income. Raises the threshold for 
medical and handicapped assistance expense deductions from 3 
percent to 10 percent of a family's annual net income. 
Eliminates income deductions for spousal support. Raises the 
standard deduction for elderly and disabled families from $400 
to $725 a year; raises the standard deduction for dependents 
from $480 to $500 a year; and indexes both deductions annually 
for inflation, in $25 increments. Allows PHAs to establish 
additional deductions if they do not materially increase 
Federal expenditures.
    Administrative simplification: Relieves PHAs of 
responsibility to maintain records of HUD-required 
miscellaneous income exclusions. Prohibits HUD determinations 
of income compliance failure based on de minimus income 
calculation errors. Provides a safe harbor reliance on 
governmental income determinations (e.g., Medicaid, TANF). 
Permits PHAs to make such adjustments as are appropriate to 
reflect current income when using prior year's income.
    Work and Education Incentives: Requires use of a family's 
prior year's earned income. Exempts 10 percent of the lower of 
a family's earned income or $9,000. Exempts income of minors 
(except for heads of households or their spouses) and of adult 
dependents that are full time students, and exempts grant-in-
aid or scholarship amounts used for tuition or books. Exempts 
income from Coverdell education accounts and Section 529 
qualified tuition programs. Excludes lump sum VA disability 
payments from income.
    Impact on Revenues and Costs. Permits HUD to make 
appropriate adjustments to the public housing formula income in 
the first year of implementation for those PHAs experiencing a 
material and disproportionate reduction in rental income. 
Requires HUD to submit to Congress, in both of the first two 
years following implementation, a report identifying and 
calculating the impact of rent reform and other bill changes on 
public housing net income or on voucher or project-based 
assistance funding costs. Requires HUD to make legislative 
recommendations to reduce or eliminate a nationwide material 
reduction in public housing net income or increase in voucher 
or project-based costs.

Section 4. Eligibility for assistance based on assets and income

    Creates a new net asset limit of $100,000 and a new 
residence ownership prohibition, for both initial eligibility 
and ongoing annual recertification, for vouchers, public 
housing, and project-based assistance. Excludes from the asset 
limit homeownership equity and family self-sufficiency 
accounts, personal property (except for items of significant 
value), real property the family does not have the effective 
legal authority to sell, retirement and education savings 
account assets, amounts recovered under disability lawsuits, 
and such other exclusions as the Secretary may establish. 
Permits PHAs and owners to exempt elderly and disabled from 
asset limits at recertification, according to a policy 
established by the PHA or owner. Excludes from the residence 
provision homes paid for by assistance under the 1937 Housing 
Act, victims of domestic violence, and families offering a 
property for sale. PHAs or owners may elect not to enforce 
asset limits for assisted families at recertification, and PHAs 
and project-based owners may delay eviction or termination of 
assisted families not meeting asset limits for up to six 
months. A PHA or owner may rely on a family's self-
certification of asset levels or their non-ownership of a 
residence, and HUD may develop standardized forms for this 
purpose.
    Extends the 80 percent of local median income limitation 
that applies to initial occupancy to an annual recertification 
for continued program eligibility (except that income rules for 
enhanced vouchers are maintained and families initially 
permitted to have incomes up to 95 percent of median income 
that stay below that income level may continue to be assisted). 
PHAs and owners may elect not to enforce this income limitation 
for public housing residents or project-based Section 8 units 
pursuant to a plan, and PHAs and owners may delay eviction or 
termination of housing assistance for up to six months.

Section 5. Targeting vouchers to low-income working families

    Modifies the basic income targeting threshold of 30 percent 
of local area median income for Section 8 vouchers, public 
housing, and project-based Section 8 (under which 75 percent of 
new vouchers and 40 percent of new public housing and project-
based residents must have adjusted incomes below this 
threshold)--instead using the higher of this 30 percent of 
local area median income calculation or the national poverty 
level for the appropriate family size. Excludes Puerto Rico or 
any other federal territory or possession from this change.

Section 6. Voucher renewal funding

    Authorizes such sums as may be necessary for the period of 
Fiscal Year 2010 through 2014 for the renewal of expiring 
Section 8 vouchers, and for new enhanced vouchers, tenant 
protection vouchers, and other special purpose vouchers.
    Provides that the pro rata voucher funding allocation for 
PHAs is recalculated each year, based on a PHA's leasing and 
cost data from the prior calendar year. Such calculation is 
adjusted for an annual inflation adjustment, with further 
adjustments for first time renewal of incremental, tenant 
protection and enhanced vouchers, for vouchers set aside for 
project-based assistance, for vouchers ported in and out in the 
prior year, and for such other adjustments as HUD considers 
appropriate, including adjustments for natural and other major 
disasters. Provides for proration if overall funding is 
insufficient to meet nationwide costs, except that enhanced 
vouchers shall not be subject to proration. Renewal funding is 
authorized for ``overleasing'' (serving more than a PHA's 
number of authorized voucher families), except that the 
calculation may not include a leasing rate in excess of 103 
percent of the prior year resulting from use of reserves. HUD 
may reimburse PHAs for increased costs due to portability that 
are not reimbursed in the prior years. HUD is required to 
allocate all renewal funds by the later of February 15th or 45 
days after enactment of the appropriations bill funding the 
renewals.
    Any PHA can receive an advance of up to 2 percent of the 
annual funding allocation in the last three months of a year to 
cover shortfalls, which it ``repays'' through an offsetting 
funding reduction in the next year's funding allocation. HUD is 
required to offset (recaptaure) each PHA's unused funding 
(reserves) at the end of each calendar year, except a PHAs has 
the right to carry over reserves of not less than 6 percent of 
its renewal funding allocation in the prior year. HUD is 
required to make available all such recaptured funds no later 
than the later of April 1st or 75 days after appropriations 
enactment--first for reimbursement for increased costs related 
to portability and family self-sufficiency activities, and next 
for reallocation to PHAs for increased voucher leasing rates, 
with priority based on the extent to which a PHA has used its 
allocated funding to serve eligible families and on relative 
need for additional voucher assistance.
    Directs HUD to finalize regulations within 12 months after 
bill enactment to modify regulations governing PHAs' 
responsibilities for portability rights, to eliminate or 
minimize to the maximum extent feasible consistent with 
available funding, billing between agencies and administrative 
barriers to family choice, without undermining a PHA's 
authority to serve families on its waiting list.
    Requires HUD to develop and issue guidance to PHAs that 
received incremental vouchers for non-elderly disabled families 
after 1997 and homeless veterans who recently received 
incremental vouchers, to ensure that such vouchers continue to 
be provided to the same category of family upon voucher 
turnover.

Section 7. Administrative fees

    Restates the statutory requirement that voucher 
administrative fees shall be based on a per-unit fee, to be 
based on the Fiscal Year 2003 per unit fee or on such formula 
as HUD may establish by regulation using a per-unit fee 
structure that provides for the full cost of voucher 
administration (including the reasonable costs of PHA-owned 
units, taking into consideration the costs of required third 
party inspections and rent determinations). Provides for annual 
inflation adjustments using an index of wage and benefit data 
changes or other objectively measurable data. Also requires an 
amount be provided for the cost of issuing a voucher to a new 
voucher family.
    Provides that voucher administrative fees also include an 
amount for Family Self Sufficiency costs, as authorized by 
Section 23. Fees are generally provided based on the number of 
coordinators employed and the number of families being served. 
Provides for proration if insufficient funds are appropriated 
to meet all costs under this provision. Funding for agencies 
that received funding for more than three self-sufficiency 
coordinators in any year from FY 1998 to FY 2009 shall be based 
on the highest number of coordinators in that period. Requires 
HUD to perform an evaluation of the effectiveness of well-run 
Family-Self-Sufficiency programs.

Section 8. Homeownership

    Permits voucher funds, at the discretion of the PHA, to be 
used for a down payment for a first-time home purchase, as a 
one-time grant in an amount not exceeding the lesser of one 
year of Section 8 payments or $10,000, for families who have 
been receiving voucher assistance for a period of at least one 
year.
    Permits vouchers to cover the full cost of buying 
manufactured homes on leased land, by permitting voucher funds 
to be used for both the cost of leasing the land and for 
monthly home purchase costs (including property taxes, 
insurance, and tenant-paid utilities).

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

    Authorizes a PHA to submit information regarding rental 
payment history for voucher tenants to credit reporting 
agencies, providing the family agrees to such submission.

Section 10. Performance assessments

    Provides statutory authority and requirements for HUD to 
assess the performance of PHAs in administering their local 
voucher programs, measuring the following factors: extent to 
which units comply with housing quality standards (HQS), 
including PHA compliance with inspection requirements; extent 
of utilization of voucher amounts and of authorized vouchers; 
timeliness and accuracy of reporting to HUD; effectiveness in 
carrying out policies that result in deconcentration of 
poverty; reasonableness of rent burdens; accurate calculations 
of rent, utility allowances, and subsidy payments; 
effectiveness in carrying out family self-sufficiency 
activities; timeliness of actions related to landlord 
participation; compliance with income targeting requirements; 
and such other factors as the HUD Secretary considers 
appropriate. Requires HUD to assess performance every 2 years.

Section 11. PHA Project-based assistance

    Increases the percentage of a PHA's vouchers a PHA can 
project base from 20 percent to 25 percent, with authority to 
go 5 percent higher to serve homeless or disabled persons or 
areas where vouchers are difficult to use. Increases the 
percentage of vouchers that can be project-based in any project 
to the greater of 25 dwelling units or 25 percent of the units 
in a project (except there is no limit on projects specifically 
comprised of elderly or disabled families or families receiving 
comprehensive supportive services), with authority to go up to 
50 percent in areas where vouchers are hard to use. Clarifies 
that PHAs have the authority to project-base units owned by the 
PHA but only pursuant to a competitive process. Allows PHAs to 
transfer a portion of their vouchers and budget authority to 
other PHAs in the same or contiguous metropolitan areas. Allows 
lower rents for vouchers in units assisted by the National 
Affordable Housing Trust Fund, provided that both the PHA and 
the project owner agree. Permits owners using project-based 
vouchers to maintain site-based waiting lists, subject to PHA 
oversight.

Section 12. Rent burdens

    Requires HUD to monitor voucher rent burdens and submit an 
annual report to Congress on the percentage of families 
nationwide paying more than 30 and 40 percent, respectively, of 
their adjusted income for rent. Permits HUD to require a PHA to 
modify a payment standard that results in a significant number 
of families paying more than 30 percent of income for rent. 
Requires HUD to submit an annual report to Congress on the 
degree to which voucher families are clustered in lower rent, 
higher poverty areas, including reporting of data by race and 
ethnicity, and the extent to which greater geographic 
distribution of families could be achieved, including raising 
payment standards.
    Requires PHAs to make public information provided by HUD on 
local rent burdens. If the local percentage of voucher families 
paying more than 40 percent of income for rent exceeds a 
standard established by HUD or if the PHA has a high degree of 
concentration of poverty, the PHA must either raise the payment 
standard or explain its reasons for not doing so. HUD is 
required to approve requests of agencies to raise payment 
standards in such circumstances, up to 120 percent of FMR. HUD 
may approve payment standards higher than 120 percent of FMR as 
a reasonable accommodation for a person with a disability.

Section 13. Establishment of fair market rent

    Requires HUD to define market areas for the purpose of 
establishing Fair Market Rentals (FMRs) in areas sufficiently 
distinct as is necessary to (a) reflect typical rental costs 
and (b) avoid concentration of voucher holders, while taking 
into consideration the efficient administration of the program 
by PHAs and HUD administrative costs, the availability of 
sufficient data to establish separate FMRs, and the ability of 
PHAs to adjust their payment standards to reflect accurate rent 
levels. HUD must establish procedures to permit a PHA to 
request a separate FMR area, to be evaluated using this 
criteria. HUD shall phase in changes in FMRs as a result of 
boundary changes to no more than 5 percent a year. No PHA can 
be required to reducing their payment standard for existing 
families.

Section 14. Screening of applicants

    Limits a PHA's elective screening of applicants to criteria 
directly related to an applicant's ability to fulfill the 
obligations of the lease, including a consideration of any 
mitigating circumstances. Applicants and current participants 
are required to be notified of the basis of any determination 
of ineligibility, and are to be given an informal hearing to 
present mitigating circumstances in such case.
    Clarifies that this elective screening limitation language 
does not limit a PHA's ability to deny assistance based on 
rules related to an applicant's criminal background. However, 
the rules regarding prior and existing drug, alcohol, and 
criminal record are modified: to require that PHA exclusions be 
``based on documented evidence that is credible and 
objective''; to limit denials under subsection 576(b) to 
current drug use or alcohol abuse; to eliminate denials under 
subsection 576(c) based on ``other criminal activity'' (but 
retaining the right to deny based on prior ``drug-related or 
violent criminal activity''); to require that denials under 
subsection 576(c) based on misdemeanor convictions or 
activities be based on a pattern of activity; and to limit 
denials under 576(c) for drug-related or violent criminal 
activity to activity within the prior 5 years.
    Prohibits re-screening of families receiving enhanced 
vouchers or tenant protection vouchers. Clarifies that stronger 
state and local tenant protections are not preempted by federal 
voucher statutory provisions.

Section 15. Prohibition on firearms restrictions in federally assisted 
        housing

    Prohibits the HUD Secretary and PHAs from establishing any 
prohibition or restriction on the otherwise lawful possession 
or use of firearms in public housing, project-based Section 8 
housing, and dwelling units inhabited by a voucher holder.

Section 16. Enhanced vouchers

    Provides that families may receive enhanced vouchers in the 
case of a property prepayment, termination, or opt out even if 
they reside in oversized units, except that such tenants may be 
forced to move to units of appropriate size located on the 
premises.
    Authorizes enhanced vouchers in the case of properties with 
expiring HUD-subsidized mortgages. Authorizes enhanced voucher 
assistance to unassisted tenants in the Georgetowne Houses 
projects, for the purpose of facilitating preservation of the 
project.

Section 17. Demonstration program waiver authority

    HUD is authorized to enter into agreements with the Social 
Security Administration and the Secretary of Health and Human 
Services to allow for participation in state demonstration 
programs designed to permit persons with significant 
disabilities to be employed and continue to receive a range of 
federal benefits. HUD is authorized to permit a partial or 
complete disregard of increases in earned income for persons 
participating in any such demonstration for the purpose of 
calculating rent contributions under the voucher program.

Section 18. Authorization of appropriations

    Authorizes to be appropriated the amount necessary in 
Fiscal Year 2010 to provide incremental vouchers for 150,000 
families. Authorization is for both tenant-based and project-
based purposes, with references to use with the Housing Trust 
Fund, housing tax credits, HOME, CDBG, and state and local 
affordable housing funds and programs.

Section 19. Agency authority for utility payments in certain 
        circumstances

    Authorizes PHAs to make utility payments when the owner 
fails to make such payments.

Section 20. Utility data

    Requires HUD to regularly publish data regarding utility 
consumption and costs in local areas as is useful for the 
establishment of allowances for tenant-based utilities for 
voucher families.

Section 21. Project-based preservation vouchers

    Authorizes project-based vouchers in lieu of enhanced 
vouchers for properties experiencing a termination, opt out, or 
prepayment of the mortgage.

Section 22. Effect of foreclosure on section 8 tenancies

    Amends the provisions from recently enacted P.L. 111-22, 
dealing with protections for Section 8 voucher tenants in 
properties affected by foreclosure, by (a) eliminating the 2012 
sunset date, (b) extending the standards that now apply to a 
successor in interest in a foreclosure to also apply in the 
case in which a bank buys at foreclosure and resells to a new 
buyer, and (c) authorizing PHA use of voucher funds to help a 
voucher family move when the PHA is not able to reinstate the 
voucher contract with the new owner.

Section 23. Study to identity obstacles to using vouchers in federally 
        subsidized housing projects

    Requires GAO to conduct a study on whether any statutory, 
regulatory, or administrative provisions of the voucher program 
or other federal programs make occupancy by voucher holders in 
federally subsidized housing projects more difficult to obtain.

Section 24. Interagency Council on Homelessness

    Makes the following changes to the Interagency Council on 
Homelessness: (a) requires the Council to set forth actions to 
accomplish the goal of ending homelessness as part of its 
``National Strategic Plan to End Homelessness,'' (b) adds 
additional requirements to its annual reporting requirements, 
and (c) requires that reports be made available to the public, 
including posting on the World Wide Web.

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

    Requires GAO to conduct a study to identify and analyze 
effects of the voucher program on other HUD programs and the 
HUD budget, within 6 months of bill enactment.

Section 26. Housing Innovation Program

    Renames the ``Moving to Work'' (MTW) program as the 
``Housing Innovation Program'' (HIP). Requires the HUD 
Secretary to carry out this demonstration program, under which 
the Secretary may designate such number of PHAs as may be 
necessary (not to exceed 60), combined with existing MTW 
agencies, to demonstrate the effectiveness of program priority 
strategies, and must maintain such number of agencies are 
originally selected. The Secretary may also designate such 
number of additional agencies (commonly referred to as ``HIP-
lite'' agencies) under a more limited program as may be 
necessary to demonstrate other innovative strategies as the 
Secretary or applicants may propose. The program is authorized 
for a 10-year period.
    HUD is required to approve existing MTW agencies for 
continued eligibility, provided HUD determines an agency is not 
in default under their current MTW agreement, is meeting its 
MTW plan goals and objectives, and is complying with any rules 
the IG previously determined it was not complying with. Such 
agencies must make changes to existing policies to bring them 
in line with the program's new rules within two years of bill 
enactment. Existing MTWs may elect to sign new agreements in 
lieu of existing MTW agreements with HUD.
    No more than five newly selected HIP agencies may be 
``near-troubled agencies,'' and agencies shall be selected to 
provide for diversity with respect to size, geography, and 
areas served (urban, suburban, and rural). Applicants must have 
held two public meetings on their HIP proposal, preceded by 30 
days prior notice to residents and the local community. 
Agencies shall be selected based on criteria to be established 
by HUD which shall include: the extent to which the proposal is 
likely to achieve the priority strategy identified in the 
proposal; the extent to which the proposal generally identifies 
statutory provisions and existing rules and regulations to be 
waived and why a waiver is necessary; the extent to which the 
applicant has a successful history in pursuing similar 
strategies; the extent of local commitment and funding; and 
such other factors as the Secretary may establish.
    Identifies a list of activities which can by undertaken 
using HIP funds. Allows an agency to combine voucher funds with 
public housing funds, provided the agency used at least 95 
percent of vouchers or voucher funds prior used prior to MTW 
status. Requires that a PHA must assist not less than 
substantially the same number of eligible low-income families 
it served prior to MTW status, with a comparable mix of 
families by family size. A number of existing statutory 
requirements are retained, including income targeting, Section 
18 demolition and disposition rules, a number of tenant 
protections including lease requirements and eviction 
protections, and other provisions. A number of procedural, PHA 
plan, and tenant participation requirements are spelled out for 
any PHA policy changes under the program that would make a 
material change to tenant rents or contributions or to 
conditions of continued occupancy or participation. A PHA may 
not adopt rent policies which result in rents that result in 
families making substantially higher rent payments than would 
customarily be made by families of comparable income under 
program rent rules. PHAs may impose time limits, but only for a 
period of not less than 5 years, and enforcement must be 
suspended for any period in which the unemployment rate in the 
area exceeds 10 percent. PHAs may impose employment conditions, 
but only if they are consistent with TANF requirements, the PHA 
establishes reasonable hardship exemptions, and enforcement is 
suspended for any period in which the unemployment rate in the 
area exceeds 10 percent.
    Additionally, the HIP-lite agencies must comply with 
statutory rent requirements, may not impose time limits or work 
requirements, are subject to a one for one replacement 
requirement, and must include more extensive resident 
participation in any plan which provides for demolition or 
disposition of public housing units.
    HUD must perform evaluations of agencies participating in 
the program (or may contract out such responsibility to an 
independent entity qualified to perform such task). Such 
evaluations must use performance measures and identify models 
that can be replicated by other agencies to achieve success. 
HUD is required to submit evaluation reports at 2 years after 
naming new PHAs, 4 years after such date, and at the end of the 
10-year time period for the program. Pursuant to an evaluation 
of an agency under one of these reports, the Secretary has the 
authority to require an agency to modify policies that are 
harmful to assisted families, based on a determination that 
such policies are causing or have caused measurable harm to 
families, based on factors which include fewer families 
receiving assistance or specific types of families losing their 
assistance, noncompliance with the rent burden requirement, a 
reduction in the number of affordable units, noncompliance with 
targeting requirements, or a combination of these factors.
    $10 million is authorized in each of the years FY 2010 
through FY 2014 for capacity building and technical assistance 
to enhance capabilities of low income families assisted under 
the program. In addition, $15 million is authorized for HUD to 
conduct the required evaluations. No later than 48 months after 
the bill's enactment, the GAO is required to submit a report to 
Congress on the program.

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

    Requires the GAO to conduct a study to identify databases 
regarding assisted family incomes that may be used in 
conjunction with assisted housing programs, to reduce error 
rates in subsidy amounts, within 9 months of bill enactment.

Section 28. Acceptable identification requirement

    Requires as a condition of assistance that each person or 
member of a household receiving assistance provide a valid 
personal identification, in the form of either (a) a Social 
Security card with photo ID or Real ID Act ID, (b) a driver's 
license or identification card issued by a state, (c) a 
passport, or (d) a USCIS photo ID card.

Section 29. Effective date

    Establishes an effective of January 1, 2010 for Sections 3, 
4, 6, and 7, except HUD may extend for one more year for 
Sections 3, 4, and 7 if necessary to give participants time to. 
Establishes an effective date for all other provisions as such 
time as HUD establishes implementing regulations (as 
appropriate) or notice, to be issued not later than 12 months 
after enactment.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                   UNITED STATES HOUSING ACT OF 1937

TITLE I--GENERAL PROGRAM OF ASSISTED HOUSING

           *       *       *       *       *       *       *


                      RENTAL PAYMENTS; DEFINITIONS

  Sec. 3. (a)(1) Low-income occupancy requirement and rental 
payments.--[Dwelling units assisted under this Act shall be 
rented only to families who are low-income families at the time 
of their initial occupancy of such units.] 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. Reviews of family income shall be made at least 
annually. Except as provided in [paragraph (2)] paragraphs (2) 
and (3) and subject to the requirement under [paragraph (3)] 
paragraph (4), a family shall pay as rent for a dwelling unit 
assisted under this Act (other than a family assisted under 
section 8(o) or (y) or paying rent under section 8(c)(3)(B)) 
the highest of the following amounts, rounded to the nearest 
dollar:
          (A) * * *

           *       *       *       *       *       *       *

  (2) Rental payments for public housing families.--
          (A) Authority for family to select.--
                  (i) In general.--A family residing in a 
                public housing dwelling shall pay as monthly 
                rent for the unit the amount determined under 
                clause (i) or (ii) of subparagraph (B), subject 
                to the requirement under [paragraph (3)] 
                paragraph (4) (relating to minimum rents). Each 
                public housing agency shall provide for each 
                family residing in a public housing dwelling 
                unit owned, assisted, or operated by the agency 
                to elect annually whether the rent paid by such 
                family shall be determined under clause (i) or 
                (ii) of subparagraph (B). A public housing 
                agency may not at any time fail to provide both 
                such rent options for any public housing 
                dwelling unit owned, assisted, or operated by 
                the agency.

           *       *       *       *       *       *       *

  (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.
  [(3)] (4) Minimum rental amount.--
          (A) * * *

           *       *       *       *       *       *       *

  [(4)] (5) Occupancy by police officers.--
          (A) * * *

           *       *       *       *       *       *       *

  [(5)] (6) Occupancy by over-income families in certain public 
housing.--
          (A) * * *

           *       *       *       *       *       *       *

  (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.
  (b) When used in this Act:
  (1) * * *

           *       *       *       *       *       *       *

  [(4) The term ``income'' means income from all sources of 
each member of the household, as determined in accordance with 
criteria prescribed by the Secretary, in consultation with the 
Secretary of Agriculture, except that any amounts not actually 
received by the family and any amounts which would be eligible 
for exclusion under section 1613(a)(7) of the Social Security 
Act (42 U.S.C. 1382b(a)(7)) or any deferred Department of 
Veterans Affairs disability benefits that are received in a 
lump sum amount or in prospective monthly amounts may not be 
considered as income under this paragraph.
  [(5) Adjusted income.--The term ``adjusted income'' means, 
with respect to a family, the amount (as determined by the 
public housing agency) of the income of the members of the 
family residing in a dwelling unit or the persons on a lease, 
after any income exclusions as follows:
          [(A) Mandatory exclusions.--In determining adjusted 
        income, a public housing agency shall exclude from the 
        annual income of a family the following amounts:
                  [(i) Elderly and disabled families.--$400 for 
                any elderly or disabled family.
                  [(ii) Medical expenses.--The amount by which 
                3 percent of the annual family income is 
                exceeded by the sum of--
                          [(I) unreimbursed medical expenses of 
                        any elderly family or disabled family;
                          [(II) unreimbursed medical expenses 
                        of any family that is not covered under 
                        subclause (I), except that this 
                        subclause shall apply only to the 
                        extent approved in appropriation Acts; 
                        and
                          [(III) 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 
                        (including such handicapped member) to 
                        be employed.
                  [(iii) Child care expenses.--Any reasonable 
                child care expenses necessary to enable a 
                member of the family to be employed or to 
                further his or her education.
                  [(iv) Minors, students, and persons with 
                disabilities.--$480 for each member of the 
                family residing in the household (other than 
                the head of the household or his or her spouse) 
                who is less than 18 years of age or is 
                attending school or vocational training on a 
                full-time basis, or who is 18 years of age or 
                older and is a person with disabilities.
                  [(v) Child support payments.--Any payment 
                made by a member of the family for the support 
                and maintenance of any child who does not 
                reside in the household, except that the amount 
                excluded under this clause may not exceed $480 
                for each child for whom such payment is made; 
                except that this clause shall apply only to the 
                extent approved in appropriations Acts.
                  [(vi) Spousal support expenses.--Any payment 
                made by a member of the family for the support 
                and maintenance of any spouse or former spouse 
                who does not reside in the household, except 
                that the amount excluded under this clause 
                shall not exceed the lesser of (I) the amount 
                that such family member has a legal obligation 
                to pay, or (II) $550 for each individual for 
                whom such payment is made; except that this 
                clause shall apply only to the extent approved 
                in appropriations Acts.
                  [(vii) Earned income of minors.--The amount 
                of any earned income of a member of the family 
                who is not--
                          [(I) 18 years of age or older; and
                          [(II) the head of the household (or 
                        the spouse of the head of the 
                        household).
          [(B) Permissive exclusions for public housing.--In 
        determining adjusted income, a public housing agency 
        may, in the discretion of the agency, establish 
        exclusions from the annual income of a family residing 
        in a public housing dwelling unit. Such exclusions may 
        include the following amounts:
                  [(i) Excessive travel expenses.--Excessive 
                travel expenses in an amount not to exceed $25 
                per family per week, for employment- or 
                education-related travel.
                  [(ii) Earned income.--An amount of any earned 
                income of the family, established at the 
                discretion of the public housing agency, which 
                may be based on--
                          [(I) all earned income of the family,
                          [(II) the amount earned by particular 
                        members of the family;
                          [(III) the amount earned by families 
                        having certain characteristics; or
                          [(IV) the amount earned by families 
                        or members during certain periods or 
                        from certain sources.
                  [(iii) Others.--Such other amounts for other 
                purposes, as the public housing agency may 
                establish.]
          (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.
          (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.

           *       *       *       *       *       *       *

  [(d) Disallowance of Earned Income From Rent 
Determinations.--
          [(1) In general.--Notwithstanding any other provision 
        of law, the rent payable under subsection (a) by a 
        family described in paragraph (3) of this subsection 
        may not be increased as a result of the increased 
        income due to such employment during the 12-month 
        period beginning on the date on which the employment is 
        commenced.
          [(2) Phase-in of rent increases.--Upon the expiration 
        of the 12-month period referred to in paragraph (1), 
        the rent payable by a family described in paragraph (3) 
        may be increased due to the continued employment of the 
        family member described in paragraph (3)(B), except 
        that during the 12-month period beginning upon such 
        expiration the amount of the increase may not be 
        greater than 50 percent of the amount of the total rent 
        increase that would be applicable but for this 
        paragraph.
          [(3) Eligible families.--A family described in this 
        paragraph is a family--
                  [(A) that--
                          [(i) occupies a dwelling unit in a 
                        public housing project; or
                          [(ii) receives assistance under 
                        section 8; and
                  [(B)(i) whose income increases as a result of 
                employment of a member of the family who was 
                previously unemployed for 1 or more years;
                  [(ii) whose earned income increases during 
                the participation of a family member in any 
                family self-sufficiency or other job training 
                program; or
                  [(iii) who is or was, within 6 months, 
                assisted under any State program for temporary 
                assistance for needy families funded under part 
                A of title IV of the Social Security Act and 
                whose earned income increases.
          [(4) Applicability.--This subsection and subsection 
        (e) shall apply beginning upon October 1, 1999, except 
        that this subsection and subsection (e) shall apply 
        with respect to any family described in paragraph 
        3(A)(ii) only to the extent provided in advance in 
        appropriations Acts.
  [(e) Individual Savings Accounts.--
          [(1) In general.--In lieu of a disallowance of earned 
        income under subsection (d), upon the request of a 
        family that qualifies under subsection (d), a public 
        housing agency may establish an individual savings 
        account in accordance with this subsection for that 
        family.
          [(2) Deposits to account.--The public housing agency 
        shall deposit in any savings account established under 
        this subsection an amount equal to the total amount 
        that otherwise would be applied to the family's rent 
        payment under subsection (a) as a result of employment.
          [(3) Withdrawal from account.--Amounts deposited in a 
        savings account established under this subsection may 
        only be withdrawn by the family for the purpose of--
                  [(A) purchasing a home;
                  [(B) paying education costs of family 
                members;
                  [(C) moving out of public or assisted 
                housing; or
                  [(D) paying any other expense authorized by 
                the public housing agency for the purpose of 
                promoting the economic self-sufficiency of 
                residents of public and assisted housing.]
  [(f)] (d) Availability of Income Matching Information.--
          (1) * * *

           *       *       *       *       *       *       *

  (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. 5A. PUBLIC HOUSING AGENCY PLANS.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Contents.--An annual public housing agency plan under 
subsection (b) for a public housing agency shall contain the 
following information relating to the upcoming fiscal year for 
which the assistance under this Act is to be made available:
          (1) * * *

           *       *       *       *       *       *       *

          (4) Rent determination.--A statement of the policies 
        of the public housing agency governing rents charged 
        for public housing dwelling units and rental 
        contributions of families assisted under section 8(o), 
        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.

           *       *       *       *       *       *       *


                    LOWER INCOME HOUSING ASSISTANCE

  Sec. 8. (a) * * *

           *       *       *       *       *       *       *

  (c)(1)(A) An assistance contract entered into pursuant to 
this section shall establish the maximum monthly rent 
(including utilities and all maintenance and management 
charges) which the owner is entitled to receive for each 
dwelling unit with respect to which such assistance payments 
are to be made. The maximum monthly rent shall not exceed by 
more than 10 per centum the fair market rental established by 
the Secretary periodically but not less than annually for 
existing or newly constructed rental dwelling units of various 
sizes and types in the market area suitable for occupancy by 
persons assisted under this section, except that the maximum 
monthly rent may exceed the fair market rental (A) by more than 
10 but not more than 20 per centum where the Secretary 
determines that special circumstances warrant such higher 
maximum rent or that such higher rent is necessary to the 
implementation of a housing strategy as defined in section 105 
of the Cranston-Gonzalez National Affordable Housing Act, or 
(B) by such higher amount as may be requested by a tenant and 
approved by the public housing agency in accordance with 
paragraph (3)(B). In the case of newly constructed and 
substantially rehabilitated units, the exception in the 
preceding sentence shall not apply to more than 20 per centum 
of the total amount of authority to enter into annual 
contributions contracts for such units which is allocated to an 
area and obligated with respect to any fiscal year beginning on 
or after October 1, 1980. Proposed fair market rentals for an 
area shall be published in the Federal Register with reasonable 
time for public comment, and shall become effective upon the 
date of publication in final form in the Federal Register. Each 
fair market rental in effect under this subsection shall be 
adjusted to be effective on October 1 of each year to reflect 
changes, based on the most recent available data trended so the 
rentals will be current for the year to which they apply, of 
rents for existing or newly constructed rental dwelling units, 
as the case may be, of various sizes and types in the market 
area suitable for occupancy by persons assisted under this 
section. Notwithstanding any other provision of this section, 
after the date of enactment of the Housing and Community 
Development Act of 1977, the Secretary shall prohibit high-rise 
elevator projects for families with children unless there is no 
practical alternative. [The Secretary shall establish separate 
fair market rentals under this paragraph for Westchester County 
in the State of New York. The Secretary shall also establish 
separate fair market rentals under this paragraph for Monroe 
County in the Commonwealth of Pennsylvania. In establishing 
fair market rentals for the remaining portion of the market 
area in which Monroe County is located, the Secretary shall 
establish the fair market rentals as if such portion included 
Monroe County.] If units assisted under this section are exempt 
from local rent control while they are so assisted or 
otherwise, the maximum monthly rent for such units shall be 
reasonable in comparison with other units in the market area 
that are exempt from local rent control.
  (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.

           *       *       *       *       *       *       *

  (3) The amount of the monthly assistance payment with respect 
to any dwelling unit shall be the difference between the 
maximum monthly rent which the contract provides that the owner 
is to receive for the unit and the rent the family is required 
to pay under section 3(a) of this Act. [Reviews of family 
income shall be made no less frequently than annually.]
  (4) The assistance contract shall provide that assistance 
payments may be made only with respect to a dwelling unit under 
lease for occupancy by a family determined to be a lower income 
family [at the time it initially occupied such dwelling unit] 
according to the restrictions under section 3(a)(1), except 
that such payments may be made with respect to unoccupied units 
for a period not exceeding sixty days (A) in the event that a 
family vacates a dwelling unit before the expiration date of 
the lease for occupancy or (B) where a good faith effort is 
being made to fill an unoccupied unit, and, subject to the 
provisions of the following sentence, such payments may be 
made, in the case of a newly constructed or substantially 
rehabilitated project, after such sixty-day period in an amount 
equal to the debt service attributable to such an unoccupied 
dwelling unit for a period not to exceed one year, if a good 
faith effort is being made to fill the unit and the unit 
provides decent, safe, and sanitary housing. No such payment 
may be made after such sixty-day period if the Secretary 
determines that the dwelling unit is in a project which 
provides the owner with revenues exceeding the costs incurred 
by such owner with respect to such project.

           *       *       *       *       *       *       *

  (o) Voucher Program.--
          (1) Authority.--
                  (A) * * *
                  (B) Establishment of payment standard.--
                Except as provided under subparagraph (D), the 
                payment standard for each size of dwelling unit 
                in a market area shall not exceed 110 percent 
                of the fair market rental established under 
                subsection (c) for the same size of dwelling 
                unit in the same market area and shall be not 
                less than 90 percent of that fair market 
                rental, 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.

           *       *       *       *       *       *       *

                  (D) Approval.--The Secretary may require a 
                public housing agency to submit the payment 
                standard of the public housing agency to the 
                Secretary for approval, if the payment standard 
                is less than 90 percent of the fair market 
                rental or exceeds 110 percent of the fair 
                market rental, 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.
                  [(E) Review.--The Secretary--
                          [(i) shall monitor rent burdens and 
                        review any payment standard that 
                        results in a significant percentage of 
                        the families occupying units of any 
                        size paying more than 30 percent of 
                        adjusted income for rent; and
                          [(ii) may require a public housing 
                        agency to modify the payment standard 
                        of the public housing agency based on 
                        the results of that review.]
                  (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.

           *       *       *       *       *       *       *

          [(4) Eligible families.--To be eligible to receive 
        assistance under this subsection, a family shall, at 
        the time a family initially receives assistance under 
        this subsection, be a low-income family that is--]
          (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--
                  (A) * * *

           *       *       *       *       *       *       *

          (5) [Annual review] Reviews of family income.--
                  (A) In general.--Reviews of family incomes 
                for purposes of this section shall be subject 
                to [the provisions of] paragraphs (7) and (8) 
                of section 3(a) and to section 904 of the 
                Stewart B. McKinney Homeless Assistance 
                Amendments Act of 1988 [and shall be conducted 
                upon the initial provision of housing 
                assistance for the family and thereafter not 
                less than annually].
                  (B) Procedures.--Each public housing agency 
                administering assistance under this subsection 
                shall establish procedures that are appropriate 
                and necessary to ensure that income data 
                provided to the agency and owners by families 
                applying for or receiving assistance from the 
                agency is complete and accurate. [Each public 
                housing agency shall, not less frequently than 
                annually, conduct a review of the family income 
                of each family receiving assistance under this 
                subsection.]
          (6) Selection of families and disapproval of 
        owners.--
                  (A) * * *
                  [(B) Selection of tenants.--Each]
                  (B) Selection of tenants.--
                          (i) Function of owner.--Each housing 
                        assistance payment contract entered 
                        into by the public housing agency and 
                        the owner of a dwelling [unit)] unit 
                        shall provide that the screening and 
                        selection of families for those units 
                        shall be the function of the owner. [In 
                        addition]
                          (ii) Screening.--In addition, the 
                        public housing agency may elect to 
                        screen applicants for the program in 
                        accordance with such requirements as 
                        the Secretary may establish. 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. That an applicant 
                        or participant is or has been a victim 
                        of domestic violence, dating violence, 
                        or stalking is not an appropriate basis 
                        for denial of program assistance by or 
                        for denial of admission if the 
                        applicant otherwise qualifies for 
                        assistance for admission, and that 
                        nothing in this section shall be 
                        construed to supersede any provision of 
                        any Federal, State, or local law that 
                        provides greater protection than this 
                        section for victims of domestic 
                        violence, dating violence, or stalking.
                          (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.

           *       *       *       *       *       *       *

          (7) Leases and tenancy.--Each housing assistance 
        payment contract entered into by the public housing 
        agency and the owner of a dwelling unit--
                  (A) * * *

           *       *       *       *       *       *       *

                  (E) shall provide that any termination of 
                tenancy under this subsection shall be preceded 
                by the provision of written notice by the owner 
                to the tenant specifying the grounds for that 
                action, and any termination or relief shall be 
                consistent with applicable State and local law; 
                and
                  (F) may include any addenda required by the 
                Secretary to set forth the provisions of this 
                subsection. In the case of any foreclosure on 
                any federally-related mortgage loan (as that 
                term is defined in section 3 of the Real Estate 
                Settlement Procedures Act of 1974 (12 U.S.C. 
                2602)) or on any residential real property in 
                which a recipient of assistance under this 
                subsection resides, the immediate successor in 
                interest in such property pursuant to the 
                foreclosure shall assume such interest subject 
                to the lease between the prior owner and the 
                tenant and to the housing assistance payments 
                contract between the prior owner and the public 
                housing agency for the occupied unit, 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. [except that this 
                        provision and the provisions related to 
                        foreclosure in subparagraph (C) shall 
                        not]
        The provisions related to foreclosure in subparagraphs 
        (C) and (F) shall not affect any State or local law 
        that provides longer time periods or other additional 
        protections for tenants. 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.
          (8) Inspection of units by pha's.--
                  [(A) In general.--Except as provided in 
                paragraph (11), for each dwelling unit for 
                which a housing assistance payment contract is 
                established under this subsection, the public 
                housing agency shall inspect the unit before 
                any assistance payment is made to determine 
                whether the dwelling unit meets the housing 
                quality standards under subparagraph (B).]
                  (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).

           *       *       *       *       *       *       *

                  [(D) Annual inspections.--Each public housing 
                agency providing assistance under this 
                subsection (or other entity, as provided in 
                paragraph (11)) shall make an annual inspection 
                of each assisted dwelling unit 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). 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).]
                  (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.
                  [(E)] (H) Inspection guidelines.--The 
                Secretary shall establish procedural guidelines 
                and performance standards to facilitate 
                inspections of dwelling units and conform such 
                inspections with practices utilized in the 
                private housing market. Such guidelines and 
                standards shall take into consideration 
                variations in local laws and practices of 
                public housing agencies and shall provide 
                flexibility to authorities appropriate to 
                facilitate efficient provision of assistance 
                under this subsection.

           *       *       *       *       *       *       *

          (12) Assistance for rental of manufactured housing.--
                  (A) In general.--A public housing agency may 
                make assistance payments in accordance with 
                this subsection on behalf of a family that 
                utilizes a manufactured home as a principal 
                place of residence[. Such payments may be made 
                only for the rental of] and rents the real 
                property on which the manufactured home owned 
                by any such family is located.
                  (B) Rent calculation.--
                          (i) Charges included.--For assistance 
                        pursuant to this paragraph, [the rent 
                        for the space on which a manufactured 
                        home is located and with respect to 
                        which assistance payments are to be 
                        made shall include maintenance and 
                        management charges and tenant-paid 
                        utilities.] 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.
                          [(ii) Payment standard.--The public 
                        housing agency shall establish a 
                        payment standard for the purpose of 
                        determining the monthly assistance that 
                        may be paid for any family under this 
                        paragraph. The payment standard may not 
                        exceed an amount approved or 
                        established by the Secretary.]
                          [(iii)] (ii) Monthly assistance 
                        payment.--The monthly assistance 
                        payment for a family assisted under 
                        this paragraph shall be determined in 
                        accordance with paragraph (2). 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.
          (13) PHA project-based assistance.--
                  (A) * * *
                  [(B) Percentage limitation.--Not more than 20 
                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.]
                  (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.

           *       *       *       *       *       *       *

                  [(D) Income mixing requirement.--
                          [(i) In general.--Not more than 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.--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 specifically made available for 
                        households comprised of elderly 
                        families, disabled families, and 
                        families receiving supportive 
                        services.]
                  (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.

           *       *       *       *       *       *       *

                  (J) Tenant selection.--A public housing 
                agency shall select families to receive 
                project-based assistance pursuant to this 
                paragraph from its waiting list for assistance 
                under this subsection. Eligibility for such 
                project-based assistance shall be subject to 
                the provisions of section 16(b) that apply to 
                tenant-based assistance. The agency may 
                establish preferences or criteria for selection 
                for a unit assisted under this paragraph that 
                are consistent with the public housing agency 
                plan for the agency approved under section 5A. 
                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. Any family that rejects an offer of 
                project-based assistance under this paragraph 
                or that is rejected for admission to a 
                structure by the owner or manager of a 
                structure assisted under this paragraph shall 
                retain its place on the waiting list as if the 
                offer had not been made. [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. 
                Subject to its waiting list policies and 
                selection preferences, a public housing agency 
                may place on its waiting list a family referred 
                by the owner or manager of a structure and may 
                maintain a separate waiting list for assistance 
                under this paragraph, but only if all families 
                on the agency's waiting list for assistance 
                under this subsection are permitted to place 
                their names on the separate list.] 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.

           *       *       *       *       *       *       *

                  (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.
                  (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.

           *       *       *       *       *       *       *

          (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.
          (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.
          (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.

           *       *       *       *       *       *       *

  (q) Administrative Fees.--
          (1) Fee for ongoing costs of administration.--
                  (A) * * *
                  [(B) Fiscal year 1999.--
                          [(i) Calculation.--For fiscal year 
                        1999, the fee for each month for which 
                        a dwelling unit is covered by an 
                        assistance contract shall be--
                                  [(I) in the case of a public 
                                housing agency that, on an 
                                annual basis, is administering 
                                a program for not more than 600 
                                dwelling units, 7.65 percent of 
                                the base amount; and
                                  [(II) in the case of an 
                                agency that, on an annual 
                                basis, is administering a 
                                program for more than 600 
                                dwelling units (aa) for the 
                                first 600 units, 7.65 percent 
                                of the base amount, and (bb) 
                                for any additional dwelling 
                                units under the program, 7.0 
                                percent of the base amount.
                          [(ii) Base amount.--For purposes of 
                        this subparagraph, the base amount 
                        shall be the higher of--
                                  [(I) the fair market rental 
                                established under section 8(c) 
                                of this Act (as in effect 
                                immediately before the 
                                effective date under section 
                                503(a) of the Quality Housing 
                                and Work Responsibility Act of 
                                1998 ) for fiscal year 1993 for 
                                a 2-bedroom existing rental 
                                dwelling unit in the market 
                                area of the agency, and
                                  [(II) the amount that is the 
                                lesser of (aa) such fair market 
                                rental for fiscal year 1994, or 
                                (bb) 103.5 percent of the 
                                amount determined under clause 
                                (i),
                        adjusted based on changes in wage data 
                        or other objectively measurable data 
                        that reflect the costs of administering 
                        the program, as determined by the 
                        Secretary. The Secretary may require 
                        that the base amount be not less than a 
                        minimum amount and not more than a 
                        maximum amount.
                  [(C) Subsequent fiscal years.--For subsequent 
                fiscal years, the Secretary shall publish a 
                notice in the Federal Register, for each 
                geographic area, establishing the amount of the 
                fee that would apply for public housing 
                agencies administering the program, based on 
                changes in wage data or other objectively 
                measurable data that reflect the costs of 
                administering the program, as determined by the 
                Secretary.]
                  (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.

           *       *       *       *       *       *       *

                  [(E) Decrease.--The Secretary may decrease 
                the fee for units owned by a public housing 
                agency to reflect reasonable costs of 
                administration.]
                  (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).

           *       *       *       *       *       *       *

          (4) Applicability.--This subsection shall apply to 
        fiscal year [1999] 2010 and fiscal years thereafter.

           *       *       *       *       *       *       *

  (t) Enhanced Vouchers.--
          (1) In general.--Enhanced voucher assistance under 
        this subsection for a family shall be voucher 
        assistance under subsection (o) 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, except that under such enhanced 
        voucher assistance--
                  (A) * * *
                  [(B) 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, and 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)(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;

           *       *       *       *       *       *       *

                  (D) if the [income] annual adjusted income of 
                the assisted family declines to a significant 
                extent, the percentage of [income] annual 
                adjusted income paid by the family for rent 
                shall not exceed the greater of 30 percent or 
                the percentage of [income] annual adjusted 
                income paid at the time of the eligibility 
                event for the project.
          (2) Eligibility event.--For purposes of this 
        subsection, the term ``eligibility event'' means, with 
        respect to a multifamily housing project, the 
        prepayment of the mortgage on such housing project, the 
        voluntary termination of the insurance contract for the 
        mortgage for such housing project (including any such 
        mortgage prepayment during fiscal year 1996 or a fiscal 
        year thereafter or any insurance contract voluntary 
        termination during fiscal year 1996 or a fiscal year 
        thereafter), the termination or expiration of the 
        contract for rental assistance under section 8 of the 
        United States Housing Act of 1937 for such housing 
        project (including any such termination or expiration 
        during fiscal years after fiscal year 1994 prior to the 
        effective date of the Departments of Veterans Affairs 
        and Housing and Urban Development, and Independent 
        Agencies Appropriations Act, 2001), or the transaction 
        under which the project is preserved as affordable 
        housing, that, under paragraphs (3) and (4) of section 
        515(c), section 524(d) of the Multifamily Assisted 
        Housing Reform and Affordability Act of 1997 (42 U.S.C. 
        1437f note), section 223(f ) of the Low-Income Housing 
        Preservation and Resident Homeownership Act of 1990 (12 
        U.S.C. 4113(f )), or section 201(p) of the Housing and 
        Community Development Amendments of 1978 (12 U.S.C. 
        1715z-1a(p)), results in tenants in such housing 
        project being eligible for enhanced voucher assistance 
        under this subsection. 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) 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).
          [(4)] (5) Authorization of appropriations.--There are 
        authorized to be appropriated for each of fiscal years 
        2000, 2001, 2002, 2003, and 2004 such sums as may be 
        necessary for enhanced voucher assistance under this 
        subsection.

           *       *       *       *       *       *       *

  (y) Homeownership Option.--
          (1) * * *

           *       *       *       *       *       *       *

          (7) Downpayment assistance.--
                  [(A) Authority.--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 public housing agency, 
                provide assistance for the family in the form 
                of a single grant to be used only as a 
                contribution toward the downpayment required in 
                connection with the purchase of a dwelling for 
                fiscal year 2000 and each fiscal year 
                thereafter to the extent provided in advance in 
                appropriations Acts.
                  [(B) Amount.--The amount of a downpayment 
                grant on behalf of an assisted family may not 
                exceed the amount that is equal to the sum of 
                the assistance payments that would be made 
                during the first year of assistance on behalf 
                of the family, based upon the income of the 
                family at the time the grant is to be made.]
                  (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.

           *       *       *       *       *       *       *

  [(dd) Tenant-Based Contract Renewals.--Subject to amounts 
provided in appropriation Acts, starting in fiscal year 1999, 
the Secretary shall renew all expiring tenant-based annual 
contribution contracts under this section by applying an 
inflation factor based on local or regional factors to an 
allocation baseline. The allocation baseline shall be 
calculated by including, at a minimum, amounts sufficient to 
ensure continued assistance for the actual number of families 
assisted as of October 1, 1997, with appropriate upward 
adjustments for incremental assistance and additional families 
authorized subsequent to that date.]
  (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.

           *       *       *       *       *       *       *


                    ELIGIBILITY FOR ASSISTED HOUSING

  Sec. 16. (a) Income Eligibility for Public Housing.--
          (1) * * *
          (2) PHA income mix.--
                  (A) Targeting.--Except as provided in 
                paragraph (4), of the public housing dwelling 
                units of a public housing agency made available 
                for occupancy in any fiscal year by eligible 
                families, not less than 40 percent shall be 
                occupied by families whose incomes at the time 
                of commencement of occupancy do not exceed 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) 30 percent of the area median 
                income, as determined by the Secretary with 
                adjustments for smaller and larger families; 
                except that the Secretary may establish income 
                ceilings higher or lower than 30 percent of the 
                area median income on the basis of the 
                Secretary's findings that such variations are 
                necessary because of unusually high or low 
                family incomes; 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.

           *       *       *       *       *       *       *

  (b) Income Eligibility for Tenant-Based Section 8 
Assistance.--
          (1) In general.--Of the families initially provided 
        tenant-based assistance under section 8 by a public 
        housing agency in any fiscal year, not less than 75 
        percent shall be families whose incomes do not exceed 
        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) 30 percent of the 
        area median income, as determined by the Secretary with 
        adjustments for smaller and larger families; except 
        that the Secretary may establish income ceilings higher 
        or lower than 30 percent of the area median income on 
        the basis of the Secretary's findings that such 
        variations are necessary because of unusually high or 
        low family incomes; 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.

           *       *       *       *       *       *       *

  (c) Income Eligibility for Project-Based Section 8 
Assistance.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Targeting.--For each project assisted under a 
        contract for project-based assistance, of the dwelling 
        units that become available for occupancy in any fiscal 
        year that are assisted under the contract, not less 
        than 40 percent shall be available for leasing only by 
        families whose incomes at the time of commencement of 
        occupancy do not exceed 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) 30 
        percent of the area median income, as determined by the 
        Secretary with adjustments for smaller and larger 
        families; except that the Secretary may establish 
        income ceilings higher or lower than 30 percent of the 
        area median income on the basis of the Secretary's 
        findings that such variations are necessary because of 
        unusually high or low family incomes; 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.

           *       *       *       *       *       *       *

  (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.

           *       *       *       *       *       *       *


SEC. 23. FAMILY SELF-SUFFICIENCY PROGRAM.

  (a) * * *

           *       *       *       *       *       *       *

  (h) Allowable Public Housing Agency Administrative Fees and 
Costs.--
          [(1) Section 8 fees.--The Secretary shall establish a 
        fee under section 8(q) for the costs incurred in 
        administering the provision of certificate and voucher 
        assistance under section 8 through the self-sufficiency 
        program under this section. The fee shall be the fee in 
        effect under such section on June 1, 1990, except that 
        for purposes of the fee under this paragraph the 
        applicable dollar amount for preliminary expenses under 
        section 8(q)(2)(A)(i) shall, subject to approval in 
        appropriations Acts, be $300. Upon the submission by 
        the Comptroller General of the United States of the 
        report required under section 554(b) of the Cranston-
        Gonzalez National Affordable Housing Act, the Secretary 
        shall revise the fee under this paragraph, taking into 
        consideration the report of the Comptroller General.]
          (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.

           *       *       *       *       *       *       *


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).

           *       *       *       *       *       *       *

                              ----------                              


  SECTION 202 OF THE DEPARTMENTS OF VETERANS AFFAIRS AND HOUSING AND 
  URBAN DEVELOPMENT, AND INDEPENDENT AGENCIES APPROPRIATIONS ACT, 1997

  [Sec. 202. Administrative Fees.-- Notwithstanding section 
8(q) of the United States Housing Act of 1937, as amended--
  [(a) The Secretary shall establish fees for the cost of 
administering the certificate, voucher and moderate 
rehabilitation programs.
          [(1)(A) For fiscal year 1997, the fee for each month 
        for which a dwelling unit is covered by an assistance 
        contract shall be 7.5 percent of the base amount, 
        adjusted as provided herein, in the case of an agency 
        that, on an annual basis, is administering a program of 
        no more than 600 units, and 7 percent of the base 
        amount, adjusted as provided herein, for each 
        additional unit above 600.
          [(B) The base amount shall be the higher of--
                  [(i) the fair market rental for fiscal year 
                1993 for a 2-bedroom existing rental dwelling 
                unit in the market area of the agency; and
                  [(ii) such fair market rental for fiscal year 
                1994, but not more than 103.5 percent of the 
                amount determined under clause (i).
          [(C) The base amount shall be adjusted to reflect 
        changes in the wage data or other objectively 
        measurable data that reflect the costs of administering 
        the program during fiscal year 1996; except that the 
        Secretary may require that the base amount be not less 
        than a minimum amount and not more than a maximum 
        amount.
          [(2) For subsequent fiscal years, the Secretary shall 
        publish a notice in the Federal Register, for each 
        geographic area, establishing the amount of the fee 
        that would apply for the agencies administering the 
        program, based on changes in wage data or other 
        objectively measurable data that reflect the cost of 
        administering the program, as determined by the 
        Secretary.
          [(3) The Secretary may increase the fee if necessary 
        to reflect higher costs of administering small programs 
        and programs operating over large geographic areas.
          [(4) The Secretary may decrease the fee for PHA-owned 
        units.
  [(b) Beginning in fiscal year 1997 and thereafter, the 
Secretary shall also establish reasonable fees (as determined 
by the Secretary) for--
          [(1) the costs of preliminary expenses, in the amount 
        of $500, for a public housing agency, but only in the 
        first year it administers a tenant-based assistance 
        program under the United States Housing Act of 1937 and 
        only if, immediately before the effective date of this 
        Act, it was not administering a tenant-based assistance 
        program under the 1937 Act (as in effect immediately 
        before the effective date of this Act), in connection 
        with its initial increment of assistance received;
          [(2) the costs incurred in assisting families who 
        experience difficulty (as determined by the Secretary) 
        in obtaining appropriate housing under the program; and
          [(3) extraordinary costs approved by the Secretary.]
                              ----------                              


          QUALITY HOUSING AND WORK RESPONSIBILITY ACT OF 1998

TITLE V--PUBLIC HOUSING AND TENANT-BASED ASSISTANCE REFORM

           *       *       *       *       *       *       *


Subtitle F--Safety and Security in Public and Assisted Housing

           *       *       *       *       *       *       *


SEC. 576. SCREENING OF APPLICANTS FOR FEDERALLY ASSISTED HOUSING.

  (a) * * *
  [(b) Ineligibility of Illegal Drug Users and Alcohol 
Abusers.--
          [(1) In general.--Notwithstanding]
  (b) Ineligibility of Illegal Drug Users and Alcohol 
Abusers.--Notwithstanding any other provision of law, a public 
housing agency or an owner of federally assisted housing, as 
determined by the Secretary, shall establish standards that 
prohibit admission to the program or admission to federally 
assisted housing for any household with a member--
          [(A)] (1) who the public housing agency or owner 
        determines, based on documented evidence that is 
        credible and objective, is illegally using a controlled 
        substance; or
          [(B)] (2) with respect to whom the public housing 
        agency or owner determines [that it has reasonable 
        cause to believe that such household member's illegal 
        use (or pattern of illegal use) of a controlled 
        substance, or abuse (or pattern of abuse) of alcohol, 
        may interfere with the health, safety, or right to 
        peaceful enjoyment of the premises by other residents], 
        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.
          [(2) Consideration of rehabilitation.--In determining 
        whether, pursuant to paragraph (1)(B), to deny 
        admission to the program or federally assisted housing 
        to any household based on a pattern of illegal use of a 
        controlled substance or a pattern of abuse of alcohol 
        by a household member, a public housing agency or an 
        owner may consider whether such household member--
                  [(A) has successfully completed a supervised 
                drug or alcohol rehabilitation program (as 
                applicable) and is no longer engaging in the 
                illegal use of a controlled substance or abuse 
                of alcohol (as applicable);
                  [(B) has otherwise been rehabilitated 
                successfully and is no longer engaging in the 
                illegal use of a controlled substance or abuse 
                of alcohol (as applicable); or
                  [(C) is participating in a supervised drug or 
                alcohol rehabilitation program (as applicable) 
                and is no longer engaging in the illegal use of 
                a controlled substance or abuse of alcohol (as 
                applicable).]
  (c) Authority To Deny Admission To Certain Criminal 
Offenders.--Except as provided in subsections (a) and (b) of 
this section and in addition to any other authority to screen 
applicants, in selecting among applicants for admission to the 
program or to federally assisted housing, if the public housing 
agency or owner of such housing (as applicable) determines, 
based on documented evidence that is credible and objective, 
that an applicant or any member of the applicant's household is 
or was, during [a reasonable time] the 5-year period preceding 
the date when the applicant household would otherwise be 
selected for admission, engaged in any drug-related or violent 
criminal activity [or other criminal activity] which would 
adversely affect the health, safety, or right to peaceful 
enjoyment of the premises by other residents, the owner, or 
public housing agency employees, the public housing agency or 
owner may--
          (1) * * *
          (2) after the expiration of the [reasonable] 5-year 
        period beginning upon such activity, require the 
        applicant, as a condition of admission to the program 
        or to federally assisted housing, to submit to the 
        public housing agency or owner evidence sufficient (as 
        the Secretary shall by regulation provide) to ensure 
        that the individual or individuals in the applicant's 
        household who engaged in criminal activity for which 
        denial was made under paragraph (1) have not engaged in 
        any criminal activity during such [reasonable] 5-year 
        period.
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. 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.

           *       *       *       *       *       *       *

                              ----------                              


HELPING FAMILIES SAVE THEIR HOMES ACT

           *       *       *       *       *       *       *


DIVISION A--PREVENTING MORTGAGE FORECLOSURES

           *       *       *       *       *       *       *


TITLE VII--PROTECTING TENANTS AT FORECLOSURE ACT

           *       *       *       *       *       *       *


SEC. 704. SUNSET.

  [This title, and any amendments made by this title are] 
Section 702 is repealed, and the requirements under [this 
title] such section shall terminate, on December 31, 2012.

           *       *       *       *       *       *       *

                              ----------                              


MCKINNEY-VENTO HOMELESS ASSISTANCE ACT

           *       *       *       *       *       *       *


TITLE II--UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS

           *       *       *       *       *       *       *


SEC. 202. MEMBERSHIP.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Administration.--The Executive Director of the Council 
shall report to the [Chairman] Chairperson of the Council.

SEC. 203. FUNCTIONS.

  (a) Duties.--The Council shall--
          (1) not later than 12 months after the date of the 
        enactment of the Homeless Emergency Assistance and 
        Rapid Transition to Housing Act of 2009, develop, make 
        available for public comment, and submit to the 
        President and to Congress a National Strategic Plan to 
        End Homelessness, which shall set forth actions to 
        accomplish the goal of ending homelessness, and shall 
        update such plan annually;

           *       *       *       *       *       *       *

          (3) take such actions as may be necessary to reduce 
        duplication among programs and activities by Federal 
        agencies to assist homeless individuals and ensure that 
        related programs and activities to assist homeless 
        individuals of Federal agencies are coordinated with 
        each other;

           *       *       *       *       *       *       *

          (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;
          [(6)] (9) encourage the creation of State Interagency 
        Councils on Homelessness and the formulation of 
        jurisdictional 10-year plans to end homelessness at 
        State, city, and county levels;
          [(7)] (10) annually obtain from Federal agencies 
        their identification of consumer-oriented entitlement 
        and other resources for which persons experiencing 
        homelessness may be eligible and the agencies' 
        identification of improvements to ensure access; 
        develop mechanisms to ensure access by persons 
        experiencing homelessness to all Federal, State, and 
        local programs for which the persons are eligible, and 
        to verify collaboration among entities within a 
        community that receive Federal funding under programs 
        targeted for persons experiencing homelessness, and 
        other programs for which persons experiencing 
        homelessness are eligible, including mainstream 
        programs identified by the Government Accountability 
        Office in the reports entitled ``Homelessness: 
        Coordination and Evaluation of Programs Are 
        Essential'', issued February 26, 1999, and 
        ``Homelessness: Barriers to Using Mainstream 
        Programs'', issued July 6, 2000;
          [(8)] (11) conduct research and evaluation related to 
        its functions as defined in this section;
          [(9)] (12) develop joint Federal agency and other 
        initiatives to fulfill the goals of the agency;
          (9) collect and disseminate information relating to 
        homeless individuals;
          [(10)] (13) prepare the annual reports required in 
        subsection (c)(2);
          [(11)] (14) prepare and distribute to States 
        (including State contact persons), local governments, 
        and other public and private nonprofit organizations, a 
        bimonthly bulletin that describes the Federal resources 
        available to them to assist the homeless, including 
        current information regarding application deadlines and 
        appropriate persons to contact in each Federal agency 
        providing the resources;
          [(12)] (15) develop constructive alternatives to 
        criminalizing homelessness and laws and policies that 
        prohibit sleeping, feeding, sitting, resting, or lying 
        in public spaces when there are no suitable 
        alternatives, result in the destruction of a homeless 
        person's property without due process, or are 
        selectively enforced against homeless persons; and
          [(13)] (16) not later than the expiration of the 6-
        month period beginning upon completion of the study 
        requested in a letter to the Acting Comptroller General 
        from the Chair and Ranking Member of the House 
        Financial Services Committee and several other members 
        regarding various definitions of homelessness in 
        Federal statutes, convene a meeting of representatives 
        of all Federal agencies and committees of the House of 
        Representatives and the Senate having jurisdiction over 
        any Federal program to assist homeless individuals or 
        families, local and State governments, academic 
        researchers who specialize in homelessness, nonprofit 
        housing and service providers that receive funding 
        under any Federal program to assist homeless 
        individuals or families, organizations advocating on 
        behalf of such nonprofit providers and homeless persons 
        receiving housing or services under any such Federal 
        program, and homeless persons receiving housing or 
        services under any such Federal program, at which 
        meeting such representatives shall discuss all issues 
        relevant to whether the definitions of ``homeless'' 
        under paragraphs (1) through (4) of section 103(a) of 
        the McKinney-Vento Homeless Assistance Act, as amended 
        by section 1003 of the Homeless Emergency Assistance 
        and Rapid Transition to Housing Act of 2009, should be 
        modified by the Congress, including whether there is a 
        compelling need for a uniform definition of 
        homelessness under Federal law, the extent to which the 
        differences in such definitions create barriers for 
        individuals to accessing services and to collaboration 
        between agencies, and the relative availability, and 
        barriers to access by persons defined as homeless, of 
        mainstream programs identified by the Government 
        Accountability Office in the two reports identified in 
        paragraph (7) of this subsection; and shall submit 
        transcripts of such meeting, and any majority and 
        dissenting recommendations from such meetings, to each 
        committee of the House of Representatives and the 
        Senate having jurisdiction over any Federal program to 
        assist homeless individuals or families not later than 
        the expiration of the 60-day period beginning upon 
        conclusion of such meeting.

           *       *       *       *       *       *       *

  (c) Reports.--
          (1) * * *

           *       *       *       *       *       *       *

          (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.

           *       *       *       *       *       *       *


SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
title $3,000,000 for fiscal year 2010 and such sums as may be 
necessary for [fiscal years 2011] each of fiscal years 2011 
through 2015. Any amounts appropriated to carry out this title 
shall remain available until expended.

           *       *       *       *       *       *       *


                            ADDITIONAL VIEWS

    During the Financial Services Committee markup of H.R. 
3045, the Section 8 Voucher Reform Act of 2009, with bipartisan 
support, Members passed two common sense amendments to 
strengthen Constitutional rights in publicly assisted housing 
and ensure those benefitting from the Section 8 voucher program 
are legally present in this country.
    One of the cornerstones of our nation rests in the 
Constitution and the Bill of Rights. The Second Amendment 
states: ``A well regulated Militia, being necessary to the 
security of a free State, the right of the people to keep and 
bear Arms, shall not be infringed.''
    Sadly, for many, this fundamental right has been taken 
away. Across the country, public housing authorities are 
restricting their residents from legally possessing a firearm 
while living in public housing. In 2008, San Francisco 
attempted to ban handguns in public housing, but the San 
Francisco Housing Authority agreed not to enforce this 
provision, which prohibited the otherwise legal possession of 
firearms and ammunition.
    My amendment would prohibit HUD, public housing agencies, 
and other owners of federally assisted housing from prohibiting 
the otherwise lawful possession and use of firearms. This 
amendment passed by a bipartisan vote of 38-31.
    Likewise, American taxpayers deserve to know those 
utilizing the Section 8 voucher program are legally present in 
this country. Thus, to obtain federal housing assistance, I 
offered an amendment to require individuals to present a 
passport; a Citizenship and Immigration Services (CIS) photo ID 
card; or a Social Security card in conjunction with a state or 
federal ID to obtain a voucher.
    Everyone who is in the U.S. legally can easily obtain one 
of the three identification forms, but illegal immigrants, 
criminals, and terrorists will have to go to lengthy steps to 
obtain or forge one. We should not reward those coming here 
illegally by allowing them the services afforded to American 
citizens.
    As we have seen in townhall meetings, the issue of taxpayer 
money assisting those not legally present in the United States 
has resonated with many Americans. As such, this amendment also 
passed by a bipartisan vote of 37-31.
    I implore the Committee and the Congress to resist attempts 
to remove these common sense amendments from this legislation.

                                                         Tom Price.

                            DISSENTING VIEWS

    H.R. 3045, the Section 8 Voucher Reform Act of 2009, 
despite modest improvements, will continue to take our country 
down a path of higher government spending with little 
accountability at a time when we can least afford it. 
Therefore, Committee Republicans do not support this bill in 
its current form.
    Established in 1974, the section 8 program provides a 
necessary safety net for vulnerable elderly and disabled 
Americans seeking affordable housing. It is the country's 
largest low-income housing assistance program helping over 2 
million low-income households afford rental housing in the 
private market and was considered, at its creation, as an 
alternative to government-owned public housing. Unfortunately, 
over the years, section 8 has become overly complex and 
burdensome to administer, making it more difficult to serve 
families that need help, and discouraging work and self-
sufficiency. Core components of the program have faced scrutiny 
and criticism, such as tenant eligibility standards, unit 
quality inspections, the portability of vouchers, income and 
rent calculation formulas, and eligible uses of program funds.
    The most troubling aspect of H.R. 3045 for Republicans is 
the authorization of 150,000 new incremental vouchers for FY 
2010. The estimated cost of a tenant-based voucher is $7,500 
annually. Multiplying that figure by 150,000 translates into 
over $1 billion in new deficit spending. Republicans understand 
the importance of section 8 to many families in need; however, 
these incremental vouchers will further contribute to an 
unsustainable Federal deficit and will overwhelm the Department 
of Housing and Urban Development's (HUD's) annual budget to the 
detriment of its other programs. Currently, over 40 percent of 
HUD's total budget is consumed by the Section 8 program.
    Prior to FY 2003, the section 8 voucher program was funded 
much like an entitlement program in which Public Housing 
Authorities (PHAs) were reimbursed for expenses incurred 
through their participation in the program. From 2003 through 
2006, Congress made changes to the section 8 funding formula 
through the appropriations process that moved the program to a 
budget-based system designed to halt the rapidly escalating and 
unsustainable increases in voucher program costs, while at the 
same time maximizing the number of families served. According 
to HUD data, these changes to the funding formula led to a 
leveling off of voucher costs and declines in utilization rates 
in 2005 and 2006. Slowing the growth of the section 8 program 
was critical because it was threatening to consume the overall 
HUD budget. In fact, in 2004, other HUD programs such as the 
Community Development Block Grant (CDBG) program and HOME were 
forced to absorb budget cuts to fund the Housing Choice Voucher 
program. Since 2007, changes have been made through the 
appropriations process to return the funding formula to one 
that mirrors an entitlement program, similar to the one in 
place in FY 2004.
    Committee Republicans believe that any attempt to improve 
the housing voucher program must achieve certain key 
objectives. Committee Republicans support a formula that will 
provide PHAs the certainty they need to effectively and 
efficiently provide affordable housing to low-income families, 
and Republicans believe in establishing a funding formula that 
includes incentives for agencies to improve their performance 
and to serve the maximum number of families in need.
    Republicans also support a funding formula that will be 
reasonable, fair and predictable. While Republicans appreciate 
the spirit of the funding formula provisions included in H.R. 
3045, Republicans believe that any changes to the funding 
formula must move us closer to achieving the above-mentioned 
goals. H.R. 3045, in its current form, fails to meet these key 
objectives.
    In addition, Republicans remain concerned that H.R. 3045 
does not address the rising costs associated with the section 8 
program as more individuals continue to receive assistance for 
longer periods. Any assistance to able-bodied low-income 
participants should be temporary. Unfortunately, for too many 
able-bodied voucher holders, section 8 assistance has ceased to 
be a temporary step on the path to self-sufficiency and instead 
become more like a permanent entitlement. The lack of turnover 
among the able-bodied in the section 8 program has led to long 
waiting lists and increased costs.
    It is critical to make improvements in the delivery of 
housing assistance to families in need. Committee Republicans 
believe this can be achieved by providing flexibility to local 
public housing authorities. Such flexibility would enable PHAs 
to manage their programs to the needs of the families they 
serve in the local community instead of through a one-size-
fits-all approach. This is important because the program faces 
longer waiting lists for section 8 vouchers without the 
resources to serve everyone. The program should move current 
section 8 able-bodied recipients to self-sufficiency so that 
there can be similar opportunities to those who have patiently 
waited, in some cases for almost ten years, for assistance. 
Simply increasing Federal funding is not a solution. Rather, 
the goal of any section 8 reform bill should be to allow PHAs 
flexibility to use their appropriated funds to help voucher 
holders transition off public assistance to self-sufficiency.
    Another troubling aspect of H.R. 3045 is a provision that 
would relax assisted housing eligibility standards for persons 
who have engaged in criminal activities. Given the long section 
8 waiting lists, it is inappropriate to open section 8 housing 
to persons who may pose a risk to other residents, when 
deserving law-abiding families have been waiting for housing 
assistance for years. Furthermore, language in the bill 
establishes vague and unworkable standards and removes the 
tools available to owners and managers to ensure the safety of 
their communities.
    H.R. 3045 does contain several important modifications to 
the existing section 8 program, including how portability is 
treated, how inspections are conducted, how income is 
calculated for purposes of determining eligibility for 
vouchers, and an expansion of the Moving to Work Program, which 
Republicans strongly support. Republicans support enhancements 
to HUD's Family Self-Sufficiency Act (FSS) program that provide 
housing authorities with consistent coordinator funding, 
allowing them to help more individuals move from public 
assistance to self-sufficiency.
    Committee Republicans believe the legislative goal of 
reforming Section 8 should not be to expand the program, but to 
make the changes necessary to allow PHAs to serve more low-
income families and communities across the country. Because 
H.R. 3045 falls short of these objectives while also 
contributing to our country's fiscal crisis, we are unable to 
support it.

                                   Spencer Bachus.
                                   Jeb Hensarling.
                                   Randy Neugebauer.
                                   Adam H. Putnam.
                                   Bill Posey.
                                   Shelley Moore Capito.
                                   Gary Miller.
                                   Christopher Lee.
                                   Scott Garrett.