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115th Congress } { Report
HOUSE OF REPRESENTATIVES
2d Session } { 115-1023
======================================================================
FOSTERING STABLE HOUSING OPPORTUNITIES ACT OF 2018
_______
November 14, 2018.--Committed to the Committee of the Whole House on
the State of the Union and ordered to be printed
_______
Mr. Hensarling, from the Committee on Financial Services, submitted the
following
R E P O R T
together with
MINORITY VIEWS
[To accompany H.R. 2069]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred
the bill (H.R. 2069) to provide priority under certain
federally assisted housing programs to assist youths who are
aging out of foster care, and for other purposes, having
considered the same, report favorably thereon with an amendment
and recommend that the bill as amended do pass.
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Fostering Stable Housing Opportunities
Act of 2018''.
SEC. 2. DEFINITION OF FAMILY.
Subparagraph (A) of section 3(b)(3) of the United States Housing Act
of 1937 (42 U.S.C. 1437a(b)(3)(A)) is amended--
(1) in the first sentence--
(A) by striking ``(v)'' and inserting ``(vi)''; and
(B) by inserting after ``tenant family,'' the
following: ``(v) a child who is in foster care and has
attained an age such that the provision of foster care
for such child will end by reason of the age of the
child within 6 months,''; and
(2) in the second sentence, by inserting ``or (vi)'' after
``clause (v)''.
SEC. 3. PRIORITY FOR PUBLIC HOUSING OCCUPANCY AND SECTION 8 ASSISTANCE.
(a) Public Housing.--Subparagraph (A) of section 6(c)(4) of the
United States Housing Act of 1937 (42 U.S.C. 1437d(c)(4)(A)) is
amended--
(1) by striking ``may establish a system for making dwelling
units available that provides preference'' and inserting the
following: ``shall establish a system for making dwelling units
available that--
``(i) shall provide preferences'';
(2) by striking ``each system of preferences established
pursuant to this subparagraph shall be based'' and inserting
the following:
``(ii) except as provided in clause (iii),
shall be based'';
(3) by adding at the end the following new clause:
``(iii) except for projects or portions of
projects designated for occupancy pursuant to
section 7(a), shall provide that the highest
preference for occupancy shall be given to
otherwise eligible children who are in foster
care, have attained an age such that the
provision of foster care for such child will
end by reason of the age of the child within 6
months, meet the requirements under clauses (i)
and (ii) of paragraph (1) of the definition of
`at risk of homelessness' in section 91.5 of
the Secretary's regulations (24 C.F.R. 91.5),
as in effect on September 1, 2016, and have
agreed to comply with the requirements under
section 39(c); and
``(iv) may provide highest preference for
occupancy to, in addition to eligible children
described in clause (iii), not more than two
other types of families.''.
(b) Voucher Assistance.--Subparagraph (A) of section 8(o)(6) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(o)(6)(A)) is
amended--
(1) in clause (i), by striking ``may'' the first place such
term appears and inserting ``shall'';
(2) by redesignating clause (ii) as clause (iii);
(3) by inserting before clause (iii), as so redesignated by
paragraph (1) of this subsection, the following new clause:
``(ii) Highest preference.--Each system of
preferences established pursuant to this
subparagraph--
``(I) shall provide that the highest
preference for assistance shall be
given to otherwise eligible children
who are in foster care, have attained
an age such that the provision of
foster care for such child will end by
reason of the age of the child within 6
months, meet the requirements under
clauses (i) and (ii) of paragraph (1)
of the definition of `at risk of
homelessness' in section 91.5 of the
Secretary's regulations (24 C.F.R.
91.5), as in effect on September 1,
2016, and have agreed to comply with
the requirements under section 39(c);
and
``(II) may provide highest preference
for assistance to, in addition to
eligible children described in
subclause (I), not more than two other
types of eligible families.''; and
(4) in clause (iii), as so redesignated by paragraph (2) of
this subsection, by striking ``Each system'' and inserting
``Except as provided in clause (ii)(I), each system''.
(c) PHA Project-based Voucher Assistance.--Subparagraph (J) of
section 8(o)(13) of the United States Housing Act of 1937 (42 U.S.C.
1437f(o)(13)(J)) is amended--
(1) by striking ``(J) Tenant selection.--A public'' and
inserting the following:
``(J) Tenant selection.--
``(i) Selection and eligibility.--A public'';
(2) by striking ``The agency or owner may establish
preferences or criteria for selection for a unit assisted under
this paragraph that'' and inserting the following:
``(ii) Preferences for occupancy.--The agency
or owner shall establish a system of
preferences or criteria for selection for a
unit assisted under this section that--
``(I) shall provide that the highest
preference shall be given to otherwise
eligible children who are in foster
care, have attained an age such that
the provision of foster care for such
child will end by reason of the age of
the child within 6 months, meet the
requirements under clauses (i) and (ii)
of paragraph (1) of the definition of
`at risk of homelessness' in section
91.5 of the Secretary's regulations (24
C.F.R. 91.5), as in effect on September
1, 2016, and have agreed to comply with
the requirements under section 39(c);
and
``(II) may provide highest preference
to, in addition to eligible children
described in subclause (I), not more
than two other types of eligible
families; and
``(III) except as provided under
subclause (I),''; and
(3) by striking ``Any family that'' and inserting the
following:
``(iii) Waiting lists.--Any family that''.
(d) Project-based Section 8 Rental Assistance.--Subparagraph (A) of
section 8(d)(1) of the United States Housing Act of 1937 (42 U.S.C.
1437f(d)(1)(A)) is amended--
(1) by realigning such subparagraph so as to be indented 2
ems from the left margin;
(2) by striking ``except that with respect'' and inserting
the following: ``except that--
``(i) with respect to assisted dwelling units in a
project assisted with project-based assistance under
this section, the tenant selection criteria used by the
owner--
``(I) shall provide that the highest
preference shall be given to otherwise eligible
children who are in foster care, have attained
an age such that the provision of foster care
for such child will end by reason of the age of
the child within 6 months, meet the
requirements under clauses (i) and (ii) of
paragraph (1) of the definition of `at risk of
homelessness' in section 91.5 of the
Secretary's regulations (24 C.F.R. 91.5), as in
effect on September 1, 2016, and have agreed to
comply with the requirements under section
39(c); and
``(II) may provide highest preference to, in
addition to eligible children described in
subclause (I), not more than two other types of
eligible families; and
``(ii) with respect''; and
(3) by inserting ``who are not eligible for highest
preference pursuant to clause (i)(I)'' after ``to be
assisted''.
(e) Terms and Conditions on Priority.--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. 39. TERMS AND CONDITIONS ON PREFERENCE FOR ASSISTANCE FOR
CHILDREN AGING OUT OF FOSTER CARE.
``(a) Preference.--For purposes of this section, the term `preference
for housing assistance' means preference, for an otherwise eligible
child in foster care, for--
``(1) occupancy in a public housing dwelling unit, pursuant
to section 6(c)(4)(A)(iii);
``(2) tenant-based assistance under section 8(o), pursuant to
paragraph (6)(A)(ii)(I) of such section;
``(3) project-based assistance under section 8(o)(13),
pursuant to subparagraph (J)(ii)(I) of such section; and
``(4) occupancy in a dwelling unit in a project assisted with
project-based assistance under section 8, pursuant to
subsection (d)(1)(A)(i)(I) of such section.
``(b) Early Application for Assistance.--Notwithstanding the period
during which a preference for housing assistance is provided for a
person, an otherwise eligible person may apply for such occupancy or
assistance at any time after such person attains 16 years of age.
``(c) Requirement for Education or Training.--
``(1) Requirement.--Except as provided in paragraph (2), each
person occupying a dwelling unit pursuant to a preference for
housing assistance shall, not later than 30 months after such
initial occupancy, comply with the requirements under one of
the following subparagraphs, as selected by the public housing
agency for or project owner of the assisted housing dwelling
unit involved, in consultation with relevant public child
welfare agencies:
``(A) Option 1.--The requirements under this
subparagraph are--
``(i) obtaining a recognized postsecondary
credential or a secondary school diploma or its
recognized equivalent;
``(ii) enrollment in an institution of higher
education, as such term is defined in section
101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a)) and including the institutions
described in subparagraphs (A) and (B) of
section 102(a)(1) of such Act (20 U.S.C.
1002(a)(1)); or
``(iii) participation in a career pathway, as
such term is defined in section 3 of the
Workforce Innovation and Opportunity Act (29
U.S.C. 3102).
Notwithstanding any other provision of this paragraph,
a public housing agency or project owner may consider
employment as satisfying the requirements under this
subparagraph.
``(B) Option 2.--The requirements under this
subparagraph are compliance with the terms and
conditions applicable under section 23 of the United
States Housing Act of 1937 (42 U.S.C. 1437u) and the
regulations implementing such section to a person
participating in a family self-sufficiency program
under such section, except that--
``(i) a public housing agency may select the
option under this subparagraph only if the
agency is participating in such self-
sufficiency program or has made such
commitments to commence participation as the
Secretary considers sufficient; and
``(ii) a project owner of assisted housing
may select the option under this subparagraph
only if the public housing agency in whose
jurisdiction the project is located is
participating in such self-sufficiency program
or has made such commitments to commence
participation as the Secretary considers
sufficient.
``(C) Option 3.--The requirements under this
subparagraph are compliance with any combination of the
terms, conditions, and requirements under subparagraphs
(A) and (B), as may be established by the public
housing agency, except that a project owner of assisted
housing may select the option under this subparagraph
only if the public housing agency in whose jurisdiction
the project is located has selected the option under
this subparagraph and has established such terms,
conditions, and requirements. In designing such terms,
conditions, and requirements, the public housing agency
may consult with local workforce development agencies
and other organizations and entities with expertise and
experience in this field.
``(2) Exceptions.--The requirement under paragraph (1) shall
not apply to--
``(A) a parent or other household member responsible
for the care of a dependent child under the age of 6 or
for the care of an incapacitated person;
``(B) a person who is regularly and actively
participating in a drug addiction or alcohol treatment
and rehabilitation program; and
``(C) a person who is incapable of complying with the
requirement under paragraph (1) due to a documented
medical condition.
``(3) Verification of compliance.--The Secretary shall
require the public housing agency or project owner, as
applicable, to verify compliance with the requirement under
paragraph (1) by each person occupying a dwelling unit assisted
or administered by such agency or owner, as applicable,
pursuant to a preference for housing assistance annually in
conjunction with reviews of income for purposes of determining
eligibility for assistance described in subsection (a).
``(d) Limitation on Bedrooms.--A dwelling unit that is occupied by a
person, or assisted with assistance made available on behalf of a
person, pursuant to a preference for housing assistance may contain
more than one bedroom only if such additional bedrooms are occupied
only by other persons who occupy such dwelling unit, or receive
assistance made available, pursuant to a preference for housing
assistance.
``(e) Supportive Services.--
``(1) Eligibility.--Each person occupying a dwelling unit
pursuant to a preference for housing assistance shall be
eligible for any supportive services (as such term is defined
in section 103 of the Workforce Innovation and Opportunity Act
(29 U.S.C. 3102)) made available, in connection with any
housing assistance program of the agency, by or through the
public housing agency providing such preference or, in the case
of a preference for housing assistance for housing not assisted
by such agency, by or through the public housing agency in
whose jurisdiction the housing is located, including any
services provided under a family self-sufficiency program under
section 23 of this Act.
``(2) Information.--Upon the initial provision of housing
assistance for any person pursuant to a preference for such
assistance, the public housing agency or owner, as applicable,
shall inform such person of the existence of any programs or
services referred to in paragraph (1) and of their eligibility
for such programs and services.
``(f) Termination of Assistance.--The public housing agency or
project owner, as applicable, shall terminate any occupancy of, or
assistance on behalf of, a person pursuant to any preference for
housing assistance upon the person attaining 25 years of age or upon
substantial noncompliance with the requirement under subsection (c),
except that nothing in this subsection may be construed to prohibit the
occupancy of housing assisted under this title by, or the provision of
rental assistance under section 8 for, any person, or to affect the
eligibility of any person for such occupancy or assistance, other than
pursuant to a preference for housing assistance.
``(g) Applicability to Moving to Work Agencies.--Notwithstanding any
other provision of law, the preferences for housing assistance
identified in subsection (a) of this section shall apply to assistance
made available by each public housing agency participating in the
Moving to Work 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), except that in lieu of
compliance with one of the options under subsection (c)(1) of this
section, such an agency may comply with the requirement under such
subsection by complying with such terms, conditions, and requirements
as may be established by the agency for persons occupying dwelling
units pursuant to a preference for housing assistance.
``(h) Reports.--The Secretary of Housing and Urban Development shall
require each public housing agency that provides any preference for
housing assistance pursuant to this section in any fiscal year to
submit a report to the Secretary for such fiscal year that--
``(1) specifies the number of applications for such
preferences received during such fiscal year disaggregated by--
``(A) the number received by persons who have
attained 16 years of age but have not attained an age
such that the provision of foster care for such child
will end by reason of the age of the child within 6
months; and
``(B) the number received by persons who have
attained an age such that the provision of foster care
for such child will end by reason of the age of the
child within 6 months;
``(2) specifies the number of persons provided a preference
for housing assistance during such fiscal year; and
``(3) describes how the public housing agency communicated or
collaborated with public child welfare agencies to collect such
data.''.
SEC. 4. PRIORITY FOR RURAL RENTAL ASSISTANCE.
Paragraph (2) of section 521(a) of the Housing Act of 1949 (42 U.S.C.
1490a(a)(2)) is amended by adding at the end the following new
subparagraph:
``(F)(i) In making occupancy in a project assisted under this
paragraph, and rental assistance under this paragraph, available on
behalf of eligible families, the project owner--
``(I) shall provide that the highest preference shall be
given to otherwise eligible children who--
``(aa) are in foster care;
``(bb) have attained an age such that the provision
of foster care for such child will end by reason of the
age of the child within 6 months;
``(cc) meet the requirements under clauses (i) and
(ii) of paragraph (1) of the definition of `at risk of
homelessness' in section 91.5 of the Secretary of
Housing and Urban Development's regulations (24 C.F.R.
91.5), as in effect on September 1, 2016; and
``(dd) have agreed to comply with the requirements
under clause (iii); and
``(II) may provide highest preference to, in addition to
eligible children described in subclause (I), not more than two
other types of eligible families.
``(ii) Notwithstanding the period during which a preference pursuant
to clause (i)(I) for occupancy in project assisted under this paragraph
or for rental assistance under this paragraph is provided for a person,
an otherwise eligible person may apply for such occupancy or assistance
at any time after the person attains 16 years of age.
``(iii)(I) Except as provided in subclause (II), each person
occupying a dwelling unit pursuant to a preference under clause (i)(I)
shall, not later than 30 months after such initial occupancy, be--
``(aa) obtaining a recognized postsecondary credential or a
secondary school diploma or its recognized equivalent;
``(bb) enrolled in an institution of higher education, as
such term is defined in section 101(a) of the Higher Education
Act of 1965 (20 U.S.C. 1001(a)) and including the institutions
described in subparagraphs (A) and (B) of section 102(a)(1) of
such Act (20 U.S.C. 1002(a)(1)); or
``(cc) participating in a career pathway, as such term is
defined in section 3 of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3102).
Notwithstanding any other provision of this subclause, a project owner
may consider employment as satisfying the requirements under this
subclause.
``(II) The requirement under subclause (I) shall not apply to--
``(aa) a parent or other household member responsible for the
care of a dependent child under the age of 6 or for the care of
an incapacitated person;
``(bb) a person who is regularly and actively participating
in a drug addiction or alcohol treatment and rehabilitation
program; and
``(cc) a person who is incapable of complying with the
requirement under subclause (I) due to a documented medical
condition.
``(III) The Secretary shall require a project owner to verify
compliance with the requirement under this clause by each person
occupying a dwelling unit pursuant to a preference under clause (i)(I)
annually in conjunction with reviews of income for purposes of
determining eligibility for assistance described in clause (i).
``(iv) A dwelling unit that is occupied by a person pursuant to a
preference under clause (i)(I) may contain more than one bedroom only
if such additional bedrooms are occupied only by other persons who
occupy such dwelling unit pursuant to a preference under clause (i)(I).
``(v) The project owner shall terminate any occupancy of a person
pursuant to the preference under clause (i)(I) upon the person
attaining 25 years of age or upon substantial noncompliance with the
requirement under clause (iii), except that nothing in this clause may
be construed to prohibit the occupancy in a project assisted under this
paragraph by, or the provision of rental assistance under this
paragraph for, any person, or to affect the eligibility of any person
for such occupancy or assistance, other than pursuant to a preference
under clause (i)(I).''.
SEC. 5. EXCEPTIONS TO LIMITATIONS FOR PROJECT-BASED VOUCHER ASSISTANCE.
(a) Percentage Limitation.--The first sentence of clause (ii) of
section 8(o)(13)(B) of the United States Housing Act of 1937 (42 U.S.C.
1437f(o)(13)(B)(ii)) is amended by inserting before ``or that'' the
following: ``that house eligible children described in section
6(c)(4)(A)(iii) who comply with the requirements under section
39(c),''.
(b) Income-mixing Requirement.--Subclause (I) of section
8(o)(13)(D)(ii) of the United States Housing Act of 1937 (42 U.S.C.
1437f(o)(13)(D)(ii)(I)) is amended by inserting after ``elderly
families'' the following: ``, to eligible children described in section
6(c)(4)(A)(iii),''.
SEC. 6. GUIDANCE REGARDING IMPLEMENTATION.
(a) In General.--The Secretary of Housing and Urban Development
jointly with the Secretary of Agriculture, in consultation with the
Secretary of Health and Human Services, shall develop guidance for
public housing agencies and owners of assisted housing regarding how to
correctly and efficiently implement and comply with the requirements of
this Act and the amendments made by this Act and shall make such
guidance available to such agencies and owners.
(b) Consultation With HHS.--The Secretary of Housing and Urban
Development jointly with the Secretary of Agriculture shall consult
with the Secretary of Health and Human Services to provide such
information and guidance to the Secretary of Health and Human Services
as may be necessary to facilitate such Secretary in informing States
and public child welfare agencies on how to correctly and efficiently
implement and comply with the requirements of this Act and the
amendments made by this Act.
Purpose and Summary
On April 6, 2017, Rep. Mike Turner introduced H.R. 2069,
the ``Fostering Stable Housing Opportunities Act of 2018.''
H.R. 2069 amends the United States Housing Act of 1937 to
include within the definition of ``families'' a child who is in
foster care and who has attained an age such that the provision
of foster care for such child will end by reason of the age of
the child within six months. H.R. 2069 authorizes Public
Housing Agencies (PHAs) to give preferences, subject to certain
terms and conditions, for public housing occupancy and section
8 housing assistance to eligible foster youth who are aging out
of foster care and are at-risk for homelessness. In addition to
foster youth aging out of care and at-risk of homelessness,
PHAs may also provide the highest preference for housing
assistance to two other types of eligible families, selected at
their discretion. H.R. 2069 also amends the Housing Act of 1949
to give similar preference for rural rental assistance to
eligible foster youth who are aging out of foster care and are
at-risk of homelessness.
Background and Need for Legislation
In Fiscal Year 2015, the U.S. Department of Health and
Human Services' Administration for Children and Families
estimated that nearly 21,000 youth across the country
emancipated (``aged out'') from foster care. Because the
government assumes the role of parent for these youth, and also
determines when they age out of care, it is equally responsible
to provide and supply adequate support as they make the
overnight transition into adulthood, so as to prevent
government-triggered homelessness. Homeless individuals face
extraordinary difficulties across a broad range of life
activities, and being homeless is associated with a host of
negative outcomes, often straining America's social safety net
and financial resources.
Unfortunately, foster care alumni are one of the most
vulnerable, high-risk groups to succumb to homelessness.
Studies show that the sudden and permanent transition from
foster care to adulthood is a key driver behind homelessness.
Nearly one-in-five foster youth initially surveyed at age 17
reported that by age 19--at which point 80 percent were no
longer in foster care--they had experienced homelessness during
the previous two years. In another study, more than two-in-five
youth endured housing challenges during the two years after
exiting foster care, with 20 percent struggling through chronic
homelessness. Former foster children are also
disproportionately represented among homeless adult
populations. Overall, as many as 37 percent of foster care
alumni have experienced homelessness. A May 2014 U.S.
Department of Housing and Urban Development analysis confirmed
that, ``current research on the outcomes of youth aging out of
foster care points to a real need for policy and programs to
assist them in maintaining housing. . . .''
Section 8(o) of the United States Housing Act of 1937 (42
U.S.C. 1437f (o)) authorizes the Housing Choice Voucher (HCV)
program and approximately 2,300 PHAs locally administers the
program. A family who is issued a housing voucher is
responsible for finding a suitable housing unit of the family's
choice, including: single-family homes, townhouses, and
apartments, in which the owner agrees to rent under the program
(provided the rental unit passes a Housing Quality Standards
(HQS) inspection performed by the PHA). Tenant-based housing
assistance is provided on behalf of the family or individual as
opposed to a subsidy tied to a particular unit or project.
Participating families may subsequently choose to move to
another unit, neighborhood, or community without losing their
rental assistance. Of the families currently receiving HCV
assistance, 76 percent are extremely low-income, with incomes
at or below 30 percent of the area median income, 36 percent
have a disabled head of household, and 24 percent are elderly.
The PHA pays the housing subsidy directly to the owner of
the unit on behalf of the participating family. The family is
responsible for paying the difference between the gross rent of
the unit and the amount subsidized by the program. The family
must pay a minimum of 30 percent of their adjusted monthly
income toward rent and utilities. The amount of the subsidy is
capped by the payment standard established by the PHA, which
may be between 90 and 110 percent of the Fair Market Rent (FMR)
for the area. If families rent units with rents above the
payment standard, for instance units located in more desirable
areas with greater opportunity, the family pays the difference
between the gross rent and the payment standard in addition to
the 30 percent of monthly adjusted income. Funding for the HCV
program consists of two main cost components: (1) Housing
Assistance Payments (HAP) made to owners to cover the
difference between a tenant's rent contribution and the unit
rent, and (2) administrative fees paid to PHAs to cover the
cost of administering the program.
Since the demand for housing assistance often exceeds the
limited resources available to HUD and the local housing
agencies, long waiting periods are common. In fact, a PHA may
close its waiting list when it has more families on the list
than can be assisted in the near future.
PHAs may establish local preferences for selecting
applicants from its waiting list. For example, PHAs may give a
preference to a family who is (1) homeless or living in
substandard housing, (2) paying more than 50 percent of its
income for rent, or (3) involuntarily displaced. Families who
qualify for any such local preferences move ahead of other
families on the lists that do not qualify for any preference.
Each PHA has the discretion to establish local preferences to
reflect the housing needs and priorities of its particular
community.
Government plays the role of parent for foster youth, and
it determines when they age out and must take on adult
responsibilities. Government also has an obligation to end the
homelessness it creates by preventing foster youth from
applying for assistance until adulthood--which frequently
relegates them to the end of a long line for housing
assistance--even though the government knows when these youth
will age out of foster care. The Fostering Stable Housing
Opportunities Act would help put an end to this barrier to
access to housing assistance by ensuring that aging out of
foster care would not mean aging into homelessness. H.R. 2069,
provides eligible foster youth with the opportunity to apply
for housing assistance before they age out of foster care and
prioritizes them during this difficult transition period to
adulthood and in doing so the legislation will provide a
stronger foundation for stable, independent, and self-
sufficient lives.
Hearings
The Committee on Financial Services, Subcommittee on
Housing and Insurance held a hearing examining matters relating
to H.R. 2069 on April 17, 2018.
Committee Consideration
The Committee on Financial Services met in open session on
July 24, 2018, and ordered H.R. 2069 to be reported favorably
to the House, as amended, by a recorded vote of 34 yeas to 23
nays (recorded vote no. FC-196), a quorum being present.
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 Chairman Hensarling to report the bill favorably to
the House, as amended, was agreed to by a recorded vote of 34
ayes and 23 nays (FC-196), a quorum being present. An amendment
in the nature of a substitute offered by Mr. Duffy was agreed
to by a voice vote. An amendment to the amendment in the nature
of a substitute offered by Ms. Waters was not agreed to by a
recorded vote of 23 ayes and 34 nays (FC-195).
[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the findings and recommendations of
the Committee based on oversight activities under clause
2(b)(1) of rule X of the Rules of the House of Representatives,
are incorporated in the descriptive portions of 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 states that H.R. 5793
authorizes the Secretary of Housing and Urban Development to
carry out a housing choice voucher mobility demonstration to
encourage families receiving such voucher assistance to move to
lower-poverty areas and expand access to opportunity areas.
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.
Congressional Budget Office Estimates
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 11, 2018.
Hon. Jeb Hensarling,
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. 2069, the
Fostering Stable Housing Opportunities Act of 2018.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Elizabeth
Cove Delisle.
Sincerely,
Keith Hall,
Director.
Enclosure.
H.R. 2069--Fostering Stable Housing Opportunities Act of 2018
H.R. 2069 would require public housing authorities and
property owners to give children who are aging out of foster
care priority for federal housing assistance. Former foster
children generally would be required to have a high-school
diploma, be employed, be enrolled at an institution of higher
education, or be participating in a career pathway within 30
months of the time that they initially receive housing
assistance. Housing assistance would terminate if the former
foster child fails to meet the requirements, or once they turn
25 years of age.
Former foster children are eligible for housing assistance
under current law--provided they meet income and other
requirements--so the bill would not increase eligibility for
housing assistance. The bill could increase the workload
associated with verifying compliance with program requirements
such as working or being enrolled in school. CBO estimates,
that the cost of that increased workload would be insignificant
over the 2019-2023 period because of the small number of former
foster kids that would receive assistance and because the
requirement to comply would be delayed by up to 30 months.
Enacting the bill would not affect direct spending or
revenues; therefore, pay-as-you-go procedures do not apply.
CBO estimates that enacting H.R. 2069 would not increase
net direct spending or on-budget deficits in any of the four
consecutive 10-year periods beginning in 2029.
H.R. 2069 contains no private-sector mandates as defined in
the Unfunded Mandates Reform Act. The bill would impose an
intergovernmental mandate by preempting state, local, and
tribal laws governing the occupancy preferences used by public
housing agencies participating in the Moving to Work Program.
CBO estimates that the preemption would not affect the budgets
of state, local, or tribal governments. Although it would limit
the application of state laws, it would impose no duty on
states that would result in additional spending or a loss of
revenues.
The CBO staff contacts for this estimate are Elizabeth Cove
Delisle (for federal costs) and Rachel Austin (for mandates).
The estimate was reviewed by H. Samuel Papenfuss, Deputy
Assistant Director for Budget Analysis.
Federal Mandates Statement
This information is provided in accordance with section 423
of the Unfunded Mandates Reform Act of 1995.
The Committee has determined that the bill does not contain
Federal mandates on the private sector. The Committee has
determined that the bill does not impose a Federal
intergovernmental mandate on State, local, or tribal
governments.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
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 the section
102(b)(3) of the Congressional Accountability Act.
Earmark Identification
With respect to clause 9 of rule XXI of the Rules of the
House of Representatives, the Committee has carefully reviewed
the provisions of the bill and states that the provisions of
the bill do not contain any congressional earmarks, limited tax
benefits, or limited tariff benefits within the meaning of the
rule.
Duplication of Federal Programs
In compliance with clause 3(c)(5) of rule XIII of the Rules
of the House of Representatives, the Committee states that no
provision of the bill establishes or reauthorizes: (1) a
program of the Federal Government known to be duplicative of
another Federal program; (2) a program included in any report
from the Government Accountability Office to Congress pursuant
to section 21 of Public Law 111-139; or (3) a program related
to a program identified in the most recent Catalog of Federal
Domestic Assistance, published pursuant to the Federal Program
Information Act (Pub. L. No. 95-220, as amended by Pub. L. No.
98-169).
Disclosure of Directed Rulemaking
Pursuant to section 3(i) of H. Res. 5, (115th Congress),
the following statement is made concerning directed rule
makings: The Committee estimates that the bill requires no
directed rule makings within the meaning of such section.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section titles the bill as the ``Fostering Stable
Housing Opportunities Act of 2018''.
Section 2. Definition of family
Section 2 amends section 3(b)(3) of the United States
Housing Act of 1937 by including within the definition of
``families'' a child who is in foster care and has attained an
age such that the provision of foster care for such child will
end by reason of the age of the child within six months.
Section 3. Priority for public housing occupancy and section 8
assistance
This section amends sections 6 and 8 of the United States
Housing Act of 1937 to require Public Housing Authorities
(PHAs) to provide the highest preference for occupancy in
public housing units and project-based section 8 development,
or for the provision of a voucher authorized under the Housing
Choice Voucher (HCV) program, to those eligible children who
are (1) in foster care, (2) will age-out of the foster care
system with six months, (3) are at-risk of homelessness as
defined in regulation, and (4) meet certain program and
occupancy requirements. In addition to foster youth aging out
of care and at-risk of homelessness, PHAs may also provide the
highest preference for housing assistance to two other types of
eligible families, selected at their discretion. Eligible
foster youth are authorized to begin the application process at
16 years of age.
Education & workforce development requirements
This section also requires eligible foster youth, within
thirty months of receiving housing assistance authorized under
this bill, to either: (1) be obtaining a recognized
postsecondary credential or a secondary school diploma (or its
equivalent); (2) be enrolled in an institution of higher
education as defined by sections 101 and 102 of the Higher
Education Act of 1965; (3) participate in a career pathway as
defined in section 3 of the Workforce Innovation and
Opportunity Act; (4) participate in the Department of Housing
and Urban Development's (HUD) family self-sufficiency program,
provided the local PHA is a program participant; or (5) a
combination of the above criteria, as designed by the PHA in
conjunction with local workforce development agencies. PHAs are
authorized to consider employment as satisfying the education
and workforce development requirements. In selecting which of
the foregoing criteria will apply within the PHA's area of
jurisdiction, PHAs shall consult with public child welfare
agencies (PCWAs).
Eligible foster youth are exempt from the education or
workforce development requirements if they are: (1) a parent
caring for a dependent child under six years of age or caring
for an incapacitated person; (2) regularly and actively
participating in a drug addiction or alcohol treatment and
rehabilitation program; or (3) incapable of complying due to a
documented medical condition. PHAs and private owners will
verify compliance with these terms and conditions annually in
conjunction with verifications of income for purposes of
determining eligibility for housing assistance.
Unit flexibility
This section allows eligible foster youth to occupy a
dwelling unit with more than one bedroom if such bedroom is
occupied by another foster youth aging out of care who receives
housing assistance pursuant to this Act.
Supportive services
This section also clarifies that eligible foster youth
would be eligible for all available supportive services, as
defined in section 103 of the Workforce Innovation and
Opportunity Act. Upon initially furnishing housing assistance
pursuant to this Act, PHAs and private owners shall inform
recipients of all existing supportive services or associated
programs.
Termination of assistance
Assistance authorized under this Act would be terminated
when an eligible foster youth attains the age of 25 or upon
substantial noncompliance with the education and workforce
development requirements. This section also clarifies that,
even upon termination, eligible foster youth are not prohibited
from applying for housing assistance otherwise available to any
individual outside of the preferences provided in this Act.
Moving To Work
This section clarifies that those PHAs that are designated
Moving To Work agencies, as defined under section 204 of the
Department of Veterans Affairs and Housing and Urban
Development and Independent Agencies Appropriations Act, 1996,
are exempt from complying with the education and workforce
development requirements as set out by this Act.
Reports
This section requires PHAs to report annually on: (1) the
number of applications for housing assistance pursuant to this
Act received from foster youth who have attained 16 years of
age but not yet aged-out of the foster care system; (2) the
number of applications for housing assistance pursuant to this
Act received from foster youth who will be eligible to receive
a preference within 6 months; (3) the number of persons who
received housing assistance pursuant to this Act; and (4) how
the PHA communicated or collaborated with PCWAs to collect such
data.
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, and existing law in which no
change is proposed is shown in roman):
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, and 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) 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. Reviews of
family income shall be made pursuant to paragraph (6); except
that, in the case of any family with a fixed income, as defined
by the Secretary, after the initial review of the family's
income, the public housing agency or owner shall not be
required to conduct a review of the family's income for any
year for which such family certifies, in accordance with such
requirements as the Secretary shall establish, which shall
include policies to adjust for inflation-based income changes,
that 90 percent or more of the income of the family consists of
fixed income, 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. Except as provided in
paragraph (2) and subject to the requirement under paragraph
(3), 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) 30 per centum of the family's monthly adjusted
income;
(B) 10 per centum of the family's monthly income; or
(C) if the family is receiving payments for welfare
assistance from a public agency and a part of such
payments, adjusted in accordance with the family's
actual housing costs, is specifically designated by
such agency to meet the family's housing costs, the
portion of such payments which is so designated.
(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)
(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.
(ii) Authority to retain flat and ceiling
rents.--Notwithstanding clause (i) or any other
provision of law, any public housing agency
that is administering flat rents or ceiling
rents pursuant to any authority referred to in
section 519(d) of the Quality Housing and Work
Responsibility Act of 1998 before the effective
day of such Act may continue to charge rent in
accordance with such rent provisions after such
effective date, except that the agency shall
provide for families residing in public housing
dwelling units owned or operated by the agency
to elect annually whether to pay rent under
such provisions or in accordance with one of
the rent options referred to in subparagraph
(A).
(B) Allowable rent structures.--
(i) Flat rents.--Each public housing agency
shall establish, for each dwelling unit in
public housing owned or operated by the agency,
a flat rental amount for the dwelling unit,
which--
(I) shall not be lower than 80
percent of--
(aa) the applicable fair
market rental established under
section 8(c) of this Act; or
(bb) at the discretion of the
Secretary, such other
applicable fair market rental
established by the Secretary
that the Secretary determines
more accurately reflects local
market conditions and is based
on an applicable market area
that is geographically smaller
than the applicable market area
used for purposes of the
applicable fair market rental
under section 8(c);
except that a public housing
agency may apply to the
Secretary for exception
allowing for a flat rental
amount for a property that is
lower than the amount otherwise
determined pursuant to item
(aa) or (bb) and the Secretary
may grant such exception if the
Secretary determines that the
fair market rental for the
applicable market area pursuant
to item (aa) or (bb) does not
reflect the market value of the
property and the proposed lower
flat rental amount is based on
a market analysis of the
applicable market and complies
with subclause (II) and
(II) shall be designed in accordance
with subparagraph (D) so that the rent
structures do not create a disincentive
for continued residency in public
housing by families who are attempting
to become economically self-sufficient
through employment or who have attained
a level of self-sufficiency through
their own efforts.
If a new flat rental amount for a dwelling unit
will increase a family's existing rental
payment by more than 35 percent, the new flat
rental amount shall be phased in as necessary
to ensure that the family's existing rental
payment does not increase by more than 35
percent annually. The preceding sentence shall
not be construed to require establishment of
rental amounts equal to 80 percent of the fair
market rental in years when the fair market
rental falls from the prior year.
(ii) Income-based rents.--
(I) In general.--The monthly rental
amount determined under this clause for
a family shall be an amount, determined
by the public housing agency, that does
not exceed the greatest of the amounts
(rounded to the nearest dollar)
determined under subparagraphs (A),
(B), and (C) of paragraph (1). This
clause may not be construed to require
a public housing agency to charge a
monthly rent in the maximum amount
permitted under this clause.
(II) Discretion.--Subject to the
limitation on monthly rental amount
under subclause (I), a public housing
agency may, in its discretion,
implement a rent structure under this
clause requiring that a portion of the
rent be deposited to an escrow or
savings account, imposing ceiling
rents, or adopting income exclusions
(such as those set forth in section
3(b)(5)(B)), or may establish another
reasonable rent structure or amount.
(C) Switching rent determination methods because of
hardship circumstances.--Notwithstanding subparagraph
(A), in the case of a family that has elected to pay
rent in the amount determined under subparagraph
(B)(i), a public housing agency shall immediately
provide for the family to pay rent in the amount
determined under subparagraph (B)(ii) during the period
for which such election was made upon a determination
that the family is unable to pay the amount determined
under subparagraph (B)(i) because of financial
hardship, including--
(i) situations in which the income of the
family has decreased because of changed
circumstances, loss of reduction of employment,
death in the family, and reduction in or loss
of income or other assistance;
(ii) an increase, because of changed
circumstances, in the family's expenses for
medical costs, child care, transportation,
education, or similar items; and
(iii) such other situations as may be
determined by the agency.
(D) Encouragement of self-sufficiency.--The rental
policy developed by each public housing agency shall
encourage and reward employment and economic self-
sufficiency.
(E) Income reviews.--Notwithstanding the second
sentence of paragraph (1), in the case of families that
are paying rent in the amount determined under
subparagraph (B)(i), the agency shall review the income
of such family not less than once every 3 years.
(3) Minimum rental amount.--
(A) Requirement.--Notwithstanding paragraph (1) of
this subsection, the method for rent determination
elected pursuant to paragraph (2)(A) of this subsection
by a family residing in public housing, section 8(o)(2)
of this Act, or section 206(d) of the Housing and
Urban-Rural Recovery Act of 1983 (including paragraph
(5) of such section), the following entities shall
require the following families to pay a minimum monthly
rental amount (which amount shall include any amount
allowed for utilities) of not more than $50 per month,
as follows:
(i) Each public housing agency shall require
the payment of such minimum monthly rental
amount, which amount shall be determined by the
agency, by--
(I) each family residing in a
dwelling unit in public housing by the
agency;
(II) each family who is assisted
under the certificate or moderate
rehabilitation program under section 8;
and
(III) each family who is assisted
under the voucher program under section
8, and the agency shall reduce the
monthly assistance payment on behalf of
such family as may be necessary to
ensure payment of such minimum monthly
rental amount.
(ii) The Secretary shall require each family
who is assisted under any other program for
rental assistance under section 8 to pay such
minimum monthly rental amount, which amount
shall be determined by the Secretary.
(B) Exception for hardship circumstances.--
(i) In general.--Notwithstanding subparagraph
(A), a public housing agency (or the Secretary,
in the case of a family described in
subparagraph (A)(ii)) shall immediately grant
an exemption from application of the minimum
monthly rental under such subparagraph to any
family unable to pay such amount because of
financial hardship, which shall include
situations in which (I) the family has lost
eligibility for or is awaiting an eligibility
determination for a Federal, State, or local
assistance program, including a family that
includes a member who is an alien lawfully
admitted for permanent residence under the
Immigration and Nationality Act who would be
entitled to public benefits but for title IV of
the Personal Responsibility and Work
Opportunity Reconciliation Act of 1996; (II)
the family would be evicted as a result of the
imposition of the minimum rent requirement
under subparagraph (A); (III) the income of the
family has decreased because of changed
circumstance, including loss of employment;
(IV) a death in the family has occurred; and
(V) other situations as may be determined by
the agency (or the Secretary, in the case of a
family described in subparagraph (A)(ii)).
(ii) Waiting period.--If a resident requests
a hardship exemption under this subparagraph
and the public housing agency (or the
Secretary, in the case of a family described in
subparagraph (A)(ii)) reasonably determines the
hardship to be of a temporary nature, an
exemption shall not be granted during the 90-
day period beginning upon the making of a
request for the exemption. A resident may not
be evicted during such 90-day period for
nonpayment of rent. In such a case, if the
resident thereafter demonstrates that the
financial hardship is of a long-term basis, the
agency (or the Secretary) shall retroactively
exempt the resident from the applicability of
the minimum rent requirement for such 90-day
period.
(4) Occupancy by police officers.--
(A) In general.--Subject to subparagraph (B)
and notwithstanding any other provision of law,
a public housing agency may, in accordance with
the public housing agency plan for the agency,
allow a police officer who is not otherwise
eligible for residence in public housing to
reside in a public housing dwelling unit. The
number and location of units occupied by police
officers under this paragraph and the terms and
conditions of their tenancies shall be
determined by the public housing agency.
(B) Increased security.--A public housing
agency may take the actions authorized in
subparagraph (A) only for the purpose of
increasing security for the residents of a
public housing project.
(C) Definition.--In this paragraph, the term
``police officer'' means any person determined
by a public housing agency to be, during the
period of residence of that person in public
housing, employed on a full-time basis as a
duly licensed professional police officer by a
Federal, State, or local government or by any
agency thereof (including a public housing
agency having an accredited police force).
(5) Occupancy by over-income families in certain
public housing.--
(A) Authority.--Notwithstanding any other
provision of law, a public housing agency that
owns or operates less than 250 units may, on a
month-to-month basis, lease a dwelling unit in
a public housing project to an over-income
family in accordance with this paragraph, but
only if there are no eligible families applying
for housing assistance from the public housing
agency for that month and the agency provides
not less than 30-day public notice of the
availability of such assistance.
(B) Terms and conditions.--The number and
location of dwelling units of a public housing
agency occupied under this paragraph by over-
income families, and the terms and conditions
of those tenancies, shall be determined by the
public housing agency, except that--
(i) notwithstanding paragraph (2),
rent for a unit shall be in an amount
that is not less than the costs to
operate the unit;
(ii) if an eligible family applies
for residence after an over-income
family moves in to the last available
unit, the over-income family shall
vacate the unit in accordance with
notice of termination of tenancy
provided by the agency, which shall be
provided not less than 30 days before
such termination; and
(iii) if a unit is vacant and there
is no one on the waiting list, the
public housing agency may allow an
over-income family to gain immediate
occupancy in the unit, while
simultaneously providing reasonable
public notice and outreach with regard
to availability of the unit.
(C) Definition.--For purposes of this
paragraph, the term ``over-income family''
means an individual or family that is not a
low-income family at the time of initial
occupancy.
(6) Reviews of family income.--
(A) Frequency.--Reviews of family income for
purposes of this section shall be made--
(i) in the case of all families, upon
the initial provision of housing
assistance for the family;
(ii) annually thereafter, except as
provided in paragraph (1) with respect
to fixed-income families;
(iii) upon the request of the family,
at any time the income or deductions
(under subsection (b)(5)) of the family
change by an amount that is estimated
to result in a decrease of 10 percent
(or such lower amount as the Secretary
may, by notice, establish, or permit
the public housing agency or owner to
establish) or more in annual adjusted
income; and
(iv) at any time the income or
deductions (under subsection (b)(5)) of
the family change by an amount that is
estimated to result in an increase of
10 percent or more in annual adjusted
income, or such other amount as the
Secretary may by notice establish,
except that any increase in the earned
income of a family shall not be
considered for purposes of this clause
(except that earned income may be
considered if the increase corresponds
to previous decreases under clause
(iii)), except that a public housing
agency or owner may elect not to
conduct such review in the last three
months of a certification period.
(B) 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 (42 U.S.C. 3544).
(7) Calculation of income.--
(A) Use of current year income.--In
determining family income for initial occupancy
or provision of housing assistance pursuant to
clause (i) of paragraph (6)(A) or pursuant to
reviews pursuant to clause (iii) or (iv) of
such paragraph, a public housing agency or
owner shall use the income of the family as
estimated by the agency or owner for the
upcoming year.
(B) Use of prior year income.--In determining
family income for annual reviews pursuant to
paragraph (6)(A)(ii), a public housing agency
or owner shall, except as otherwise provided in
this paragraph and paragraph (1), use the
income of the family as determined by the
agency or owner for the preceding year, taking
into consideration any redetermination of
income during such prior year pursuant to
clause (iii) or (iv) of paragraph (6)(A).
(C) Other income.--In determining the income
for any family based on the prior year's
income, with respect to prior year calculations
of income not subject to subparagraph (B), a
public housing agency or owner may make other
adjustments as it considers appropriate to
reflect current income.
(D) Safe harbor.--A public housing agency or
owner may, to the extent such information is
available to the public housing agency or
owner, determine the family's income prior to
the application of any deductions based on
timely income determinations made for purposes
of other means-tested Federal public assistance
programs (including the program for block
grants to States for temporary assistance for
needy families under part A of title IV of the
Social Security Act, a program for Medicaid
assistance under a State plan approved under
title XIX of the Social Security Act, and the
supplemental nutrition assistance program (as
such term is defined in section 3 of the Food
and Nutrition Act of 2008 (7 U.S.C. 2012))).
The Secretary shall, in consultation with other
appropriate Federal agencies, develop
electronic procedures to enable public housing
agencies and owners to have access to such
benefit determinations made by other means-
tested Federal programs that the Secretary
determines to have comparable reliability.
Exchanges of such information shall be subject
to the same limitations and tenant protections
provided under section 904 of the Stewart B.
McKinney Homeless Assistance Act Amendments of
1988 (42 U.S.C. 3544) with respect to
information obtained under the requirements of
section 303(i) of the Social Security Act (42
U.S.C. 503(i)).
(E) Electronic income verification.--The
Secretary shall develop a mechanism for
disclosing information to a public housing
agency for the purpose of verifying the
employment and income of individuals and
families in accordance with section
453(j)(7)(E) of the Social Security Act (42
U.S.C. 653(j)(7)(E)), and shall ensure public
housing agencies have access to information
contained in the ``Do Not Pay'' system
established by section 5 of the Improper
Payments Elimination and Recovery Improvement
Act of 2012 (Public Law 112-248; 126 Stat.
2392).
(F) PHA and owner compliance.--A public
housing agency or owner may not be considered
to fail to comply with this paragraph or
paragraph (6) due solely to any de minimis
errors made by the agency or owner in
calculating family incomes.
(b) When used in this Act:
(1) The term ``low-income housing'' means decent, safe, and
sanitary dwellings assisted under this Act. The term ``public
housing'' means low-income housing, and all necessary
appurtenances thereto, assisted under this Act other than under
section 8. The term ``public housing'' includes dwelling units
in a mixed finance project that are assisted by a public
housing agency with capital or operating assistance. When used
in reference to public housing, the term ``low-income housing
project'' or ``project'' means (A) housing developed, acquired,
or assisted by a public housing agency under this Act, and (B)
the improvement of any such housing.
(2)(A) The term low-income families means those families
whose incomes do not exceed 80 per centum of the median income
for the area, as determined by the Secretary with adjustments
for smaller and larger families, except that the Secretary may
establish income ceilings higher or lower than 80 per centum of
the median for the area on the basis of the Secretary's
findings that such variations are necessary because of
prevailing levels of construction costs or unusually high or
low family incomes.
(B) The term very low-income families means low-income
families whose incomes do not exceed 50 per centum of the
median family income for the area, as determined by the
Secretary with adjustments for smaller and larger families,
except that the Secretary may establish income ceilings higher
or lower than 50 per centum of the median for the area on the
basis of the Secretary's findings that such variations are
necessary because of unusually high or low family incomes.
(C) The term extremely low-income families means very
low-income families whose incomes do not exceed the
higher of--
(i) the poverty guidelines updated
periodically by the Department of Health and
Human Services under the authority of section
673(2) of the Community Services Block Grant
Act applicable to a family of the size involved
(except that this clause shall not apply in the
case of public housing agencies or projects
located in Puerto Rico or any other territory
or possession of the United States); or
(ii) 30 percent of the median family income
for the area, 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 median for the area on the
basis of the Secretary's findings that such
variations are necessary because of unusually
high or low family incomes).
(D) Such ceilings shall be established in consultation with
the Secretary of Agriculture for any rural area, as defined in
section 520 of the Housing Act of 1949, taking into account the
subsidy characteristics and types of programs to which such
ceilings apply. In determining median incomes (of persons,
families, or households) for an area or establishing any
ceilings or limits based on income under this Act, the
Secretary shall determine or establish area median incomes and
income ceilings and limits for Westchester and Rockland
Counties, in the State of New York, as if each such county were
an area not contained within the metropolitan statistical area
in which it is located. In determining such area median incomes
or establishing such income ceilings or limits for the portion
of such metropolitan statistical area that does not include
Westchester or Rockland Counties, the Secretary shall determine
or establish area median incomes and income ceilings and limits
as if such portion included Westchester and Rockland Counties.
In determining areas that are designated as difficult
development areas for purposes of the low-income housing tax
credit, the Secretary shall include Westchester and Rockland
Counties, New York, in the New York City metropolitan area.
(3) Persons and families.--
(A) Single persons.--The term ``families'' includes
families consisting of a single person in the case of
(i) an elderly person, (ii) a disabled person, (iii) a
displaced person, (iv) the remaining member of a tenant
family, (v) a child who is in foster care and has
attained an age such that the provision of foster care
for such child will end by reason of the age of the
child within 6 months, and [(v)] (vi) any other single
persons. In no event may any single person under clause
(v) or (vi) of the first sentence be provided a housing
unit assisted under this Act of 2 or more bedrooms.
(B) Families.--The term ``families'' includes
families with children and, in the cases of elderly
families, near-elderly families, and disabled families,
means families whose heads (or their spouses), or whose
sole members, are elderly, near-elderly, or persons
with disabilities, respectively. The term includes, in
the cases of elderly families, near-elderly families,
and disabled families, 2 or more elderly persons, near-
elderly persons, or persons with disabilities living
together, and 1 or more such persons living with 1 or
more persons determined under the public housing agency
plan to be essential to their care or well-being.
(C) Absence of children.--The temporary absence of a
child from the home due to placement in foster care
shall not be considered in determining family
composition and family size.
(D) Elderly person.--The term ``elderly person''
means a person who is at least 62 years of age.
(E) Person with disabilities.--The term ``person with
disabilities'' means a person who--
(i) has a disability as defined in section
223 of the Social Security Act,
(ii) is determined, pursuant to regulations
issued by the Secretary, to have a physical,
mental, or emotional impairment which (I) is
expected to be of long-continued and indefinite
duration, (II) substantially impedes his or her
ability to live independently, and (III) is of
such a nature that such ability could be
improved by more suitable housing conditions,
or
(iii) has a developmental disability as
defined in section 102 of the Developmental
Disabilities Assistance and Bill of Rights Act
of 2000.
Such term shall not exclude persons who have the
disease of acquired immunodeficiency syndrome or any
conditions arising from the etiologic agent for
acquired immunodeficiency syndrome. Notwithstanding any
other provision of law, no individual shall be
considered a person with disabilities, for purposes of
eligibility for low-income housing under this title,
solely on the basis of any drug or alcohol dependence.
The Secretary shall consult with other appropriate
Federal agencies to implement the preceding sentence.
(F) Displaced person.--The term ``displaced person''
means a person displaced by governmental action, or a
person whose dwelling has been extensively damaged or
destroyed as a result of a disaster declared or
otherwise formally recognized pursuant to Federal
disaster relief laws.
(G) Near-elderly person.--The term ``near-elderly
person'' means a person who is at least 50 years of age
but below the age of 62.
(4) Income.--The term ``income'' means, with respect
to a family, income received from all sources by each
member of the household who is 18 years of age or older
or is the head of household or spouse of the head of
the household, plus unearned income by or on behalf of
each dependent who is less than 18 years of age, as
determined in accordance with criteria prescribed by
the Secretary, in consultation with the Secretary of
Agriculture, subject to the following requirements:
(A) Included amounts.--Such term includes
recurring gifts and receipts, actual income
from assets, and profit or loss from a
business.
(B) Excluded amounts.--Such term does not
include--
(i) any imputed return on assets,
except to the extent that net family
assets exceed $50,000, except that such
amount (as it may have been previously
adjusted) shall be adjusted for
inflation annually by the Secretary in
accordance with an inflationary index
selected by the Secretary;
(ii) any amounts that would be
eligible for exclusion under section
1613(a)(7) of the Social Security Act
(42 U.S.C. 1382b(a)(7));
(iii) deferred disability benefits
from the Department of Veterans Affairs
that are received in a lump sum amount
or in prospective monthly amounts;
(iv) any expenses related to aid and
attendance under section 1521 of title
38, United States Code, to veterans who
are in need of regular aid and
attendance; and
(v) exclusions from income as
established by the Secretary by
regulation or notice, or any amount
required by Federal law to be excluded
from consideration as income.
(C) Earned income of students.--Such term
does not include--
(i) earned income, up to an amount as
the Secretary may by regulation
establish, of any dependent earned
during any period that such dependent
is attending school or vocational
training on a full-time basis; or
(ii) any grant-in-aid or scholarship
amounts related to such attendance
used--
(I) for the cost of tuition
or books; or
(II) in such amounts as the
Secretary may allow, for the
cost of room and board.
(D) Educational savings accounts.--Income
shall be determined without regard to any
amounts in or from, or any benefits from, any
Coverdell education savings account under
section 530 of the Internal Revenue Code of
1986 or any qualified tuition program under
section 529 of such Code.
(E) Recordkeeping.--The Secretary may not
require a public housing agency or owner to
maintain records of any amounts excluded from
income pursuant to this 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) Elderly and disabled families.--$525 in
the case of any family that is an elderly
family or a disabled family.
(B) Minors, students, and persons with
disabilities.--$480 for each member of the
family residing in the household (other than
the head of the household or his or her spouse)
who is less than 18 years of age or is
attending school or vocational training on a
full-time basis, or who is 18 years of age or
older and is a person with disabilities.
(C) Child care.--Any reasonable child care
expenses necessary to enable a member of the
family to be employed or to further his or her
education.
(D) Health and medical expenses.--The amount,
if any, by which 10 percent of annual family
income is exceeded by the sum of--
(i) in the case of any elderly or
disabled family, any unreimbursed
health and medical care expenses; and
(ii) any unreimbursed reasonable
attendant care and auxiliary apparatus
expenses for each handicapped member of
the family, if determined necessary by
the public housing agency or owner to
enable any member of such family to be
employed.
The Secretary shall, by regulation, provide
hardship exemptions to the requirements of this
subparagraph and subparagraph (C) for impacted
families who demonstrate an inability to pay
calculated rents because of financial hardship.
Such regulations shall include a requirement to
notify tenants regarding any changes to the
determination of adjusted income pursuant to
such subparagraphs based on the determination
of the family's claim of financial hardship
exemptions required by the preceding sentence.
Such regulations shall be promulgated in
consultation with tenant organizations,
industry participants, and the Secretary of
Health and Human Services, with an adequate
comment period provided for interested parties.
(E) Permissive deductions.--Such additional
deductions as a public housing agency may, at
its discretion, establish, except that the
Secretary shall establish procedures to ensure
that such deductions do not materially increase
Federal expenditures.
The Secretary shall annually calculate the amounts of
the deductions under subparagraphs (A) and (B), as such
amounts may have been previously calculated, by
applying an inflationary factor as the Secretary shall,
by regulation, establish, except that the actual
deduction determined for each year shall be established
by rounding such amount to the next lowest multiple of
$25.
(6) Public housing agency.--
(A) In general.--Except as provided in subparagraph
(B), the term ``public housing agency'' means any
State, county, municipality, or other governmental
entity or public body (or agency or instrumentality
thereof) which is authorized to engage in or assist in
the development or operation of public housing, or a
consortium of such entities or bodies as approved by
the Secretary.
(B) Section 8 program.--For purposes of the program
for tenant-based assistance under section 8, such term
includes--
(i) a consortia of public housing agencies
that the Secretary determines has the capacity
and capability to administer a program for
assistance under such section in an efficient
manner;
(ii) any other public or private nonprofit
entity that, upon the effective date under
section 503(a) of the Quality Housing and Work
Responsibility Act of 1998, was administering
any program for tenant-based assistance under
section 8 of this Act (as in effect before the
effective date of such Act), pursuant to a
contract with the Secretary or a public housing
agency; and
(iii) with respect to any area in which no
public housing agency has been organized or
where the Secretary determines that a public
housing agency is unwilling or unable to
implement a program for tenant-based assistance
section 8, or is not performing effectively--
(I) the Secretary or another public
or private nonprofit entity that by
contract agrees to receive assistance
amounts under section 8 and enter into
housing assistance payments contracts
with owners and perform the other
functions of public housing agency
under section 8; or
(II) notwithstanding any provision of
State or local law, a public housing
agency for another area that contracts
with the Secretary to administer a
program for housing assistance under
section 8, without regard to any
otherwise applicable limitations on its
area of operation.
(7) The term ``State'' includes the several States, the
District of Columbia, the Commonwealth of Puerto Rico, the
territories and possessions of the United States, and the Trust
Territory of the Pacific Islands.
(8) The term ``Secretary'' means the Secretary of Housing and
Urban Development.
(9) Drug-related criminal activity.--The term ``drug-related
criminal activity'' means the illegal manufacture, sale,
distribution, use, or possession with intent to manufacture,
sell, distribute, or use, of a controlled substance (as such
term is defined in section 102 of the Controlled Substances
Act).
(10) Mixed-finance project.--The term ``mixed-finance
project'' means a public housing project that meets the
requirements of section 35.
(11) Public housing agency plan.--The term ``public housing
agency plan'' means the plan of a public housing agency
prepared in accordance with section 5A.
(12) Capital fund.--The term ``Capital Fund'' means the fund
established under section 9(d).
(13) Operating fund.--The term ``Operating Fund'' mean the
fund established under section 9(e).
(c) When used in reference to public housing:
(1) The term ``development'' means any or all undertakings
necessary for planning, land acquisition, demolition,
construction, or equipment, in connection with a low-income
housing project. The term ``development cost'' comprises the
costs incurred by a public housing agency in such undertakings
and their necessary financing (including the payment of
carrying charges), and in otherwise carrying out the
development of such project, but does not include the costs
associated with the demolition of or remediation of
environmental hazards associated with public housing units that
will not be replaced on the project site, or other
extraordinary site costs as determined by the Secretary.
Construction activity in connection with a low-income housing
project may be confined to the reconstruction, remodeling, or
repair of existing buildings.
(2) The term ``operation'' means any or all undertakings
appropriate for management, operation, services, maintenance,
security (including the cost of security personnel), or
financing in connection with a low-income housing project. The
term also means the financing of tenant programs and services
for families residing in low-income housing projects,
particularly where there is maximum feasible participation of
the tenants in the development and operation of such tenant
programs and services. As used in this paragraph, the term
``tenant programs and services'' includes the development and
maintenance of tenant organizations which participate in the
management of low-income housing projects; the training of
tenants to manage and operate such projects and the utilization
of their services in project management and operation;
counseling on household management, housekeeping, budgeting,
money management, child care, and similar matters; advice as to
resources for job training and placement, education, welfare,
health, and other community services; services which are
directly related to meeting tenant needs and providing a
wholesome living environment; and referral to appropriate
agencies in the community when necessary for the provision of
such services. To the maximum extent available and appropriate,
existing public and private agencies in the community shall be
used for the provision of such services.
(3) The term ``acquisition cost'' means the amount prudently
required to be expended by a public housing agency in acquiring
property for a low-income housing project.
(d) Availability of Income Matching Information.--
(1) Disclosure to pha.--A public housing agency, or
the owner responsible for determining the participant's
eligibility or level of benefits, shall require any
family described in paragraph (2) who receives
information regarding income, earnings, wages, or
unemployment compensation from the Department of
Housing and Urban Development pursuant to income
verification procedures of the Department to disclose
such information, upon receipt of the information, to
the public housing agency that owns or operates the
public housing dwelling unit in which such family
resides or that provides the housing assistance under
this Act on behalf of such family, as applicable, or to
the owner responsible for determining the participant's
eligibility or level of benefits.
(2) Families covered.--A family described in this
paragraph is a family that resides in a dwelling unit--
(A) that is a public housing dwelling unit;
(B) for which tenant-based assistance is
provided under section 8, or
(C) for which project-based assistance is provided
under section 8, section 202, or section 811.
* * * * * * *
contract provisions and requirements
Sec. 6. (a) The Secretary may include in any contract for
loans, contributions, sale, lease, mortgage, or any other
agreement or instrument made pursuant to this Act, such
covenants, conditions, or provisions as he may deem necessary
in order to insure the lower income character of the project
involved, in a manner consistent with the public housing agency
plan. Any such contract shall require that, except in the case
of housing predominantly for elderly or disabled families,
high-rise elevator projects shall not be provided for families
with children unless the Secretary makes a determination that
there is no practical alternative.
(b)(1) Each contract for loans (other than preliminary loans)
or contributions for the development, acquisition, or operation
of public housing shall provide that the total development cost
of the project on which the computation of any annual
contributions under this Act may be based may not exceed the
amount determined under paragraph (2) (for the appropriate
structure type) unless the Secretary provides otherwise, and in
any case may not exceed 110 per centum of such amount unless
the Secretary for good cause determines otherwise.
(2) For purposes of paragraph (1), the Secretary shall
determine the total development cost by multiplying the
construction cost guideline for the project (which shall be
determined by averaging the current construction costs, as
listed by not less than 2 nationally recognized residential
construction cost indices, for publicly bid construction of a
good and sound quality) by--
(A) in the case of elevator type structures, 1.6; and
(B) in the case of nonelevator type structures, 1.75.
(3) In calculating the total development cost of a project
under paragraph (2), the Secretary shall consider only capital
assistance provided by the Secretary to a public housing agency
that are authorized for use in connection with the development
of public housing, and shall exclude all other amounts,
including amounts provided under--
(A) the HOME investment partnerships program
authorized under title II of the Cranston-Gonzalez
National Affordable Housing Act; or
(B) the community development block grants program
under title I of the Housing and Community Development
Act of 1974.
(4) The Secretary may restrict the amount of capital funds
that a public housing agency may use to pay for housing
construction costs. For purposes of this paragraph, housing
construction costs include the actual hard costs for the
construction of units, builders' overhead and profit, utilities
from the street, and finish landscaping.
(c) Every contract for contributions shall provide that--
(1) the Secretary may require the public housing
agency to review and revise its maximum income limits
if the Secretary determines that changed conditions in
the locality make such revision necessary in achieving
the purposes of this Act;
(2) the public housing agency shall determine, and so
certify to the Secretary, that each family in the
project was admitted in accordance with duly adopted
regulations and approved income limits; and the public
housing agency shall review the incomes of families
living in the project no less frequently than annually;
(3) the public housing agency shall promptly notify
(i) any applicant determined to be ineligible for
admission to the project of the basis for such
determination and provide the applicant upon request,
within a reasonable time after the determination is
made, with an opportunity for an informal hearing on
such determination, and (ii) any applicant determined
to be eligible for admission to the project of the
approximate date of occupancy insofar as such date can
be reasonably determined;
(4) the public housing agency shall comply with such
procedures and requirements as the Secretary may
prescribe to assure that sound management practices
will be followed in the operation of the project,
including requirements pertaining to--
(A) making dwelling units in public housing
available for occupancy, which shall provide
that the public housing agency [may establish a
system for making dwelling units available that
provides preference] shall establish a system
for making dwelling units available that--
(i) shall provide preferences for
such occupancy to families having
certain characteristics; [each system
of preferences established pursuant to
this subparagraph shall be based]
(ii) except as provided in clause
(iii), shall be based upon local
housing needs and priorities, as
determined by the public housing agency
using generally accepted data sources,
including any information obtained
pursuant to an opportunity for public
comment as provided under section 5A(f)
and under the requirements applicable
to the comprehensive housing
affordability strategy for the relevant
jurisdiction;
(iii) except for projects or portions
of projects designated for occupancy
pursuant to section 7(a), shall provide
that the highest preference for
occupancy shall be given to otherwise
eligible children who are in foster
care, have attained an age such that
the provision of foster care for such
child will end by reason of the age of
the child within 6 months, meet the
requirements under clauses (i) and (ii)
of paragraph (1) of the definition of
``at risk of homelessness'' in section
91.5 of the Secretary's regulations (24
C.F.R. 91.5), as in effect on September
1, 2016, and have agreed to comply with
the requirements under section 39(c);
and
(iv) may provide highest preference
for occupancy to, in addition to
eligible children described in clause
(iii), not more than two other types of
families.
(B) the establishment of satisfactory
procedures designed to assure the prompt
payment and collection of rents and the prompt
processing of evictions in the case of
nonpayment of rent;
(C) the establishment of effective tenant-
management relationships designated to assure
the satisfactory standards of tenant security
and project maintenance are formulated and that
the public housing agency (together with tenant
councils where they exist) enforces those
standards fully and effectively;
(D) the development by local housing
authority managements of viable homeownership
opportunity programs for low-income families
capable of assuming the responsibilities of
homeownership;
(E) for each agency that receives assistance
under this title, the establishment and
maintenance of a system of accounting for
rental collections and costs (including
administrative, utility, maintenance, repair
and other operating costs) for each project or
operating cost center (as determined by the
Secretary), which collections and costs shall
be made available to the general public and
submitted to the appropriate local public
official (as determined by the Secretary);
except that the Secretary may permit agencies
owning or operating less than 500 units to
comply with the requirements of this
subparagraph by accounting on an agency-wide
basis; and
(F) requiring the public housing agency to
ensure and maintain compliance with subtitle C
of title VI of the Housing and Community
Development Act of 1992 and any regulations
issued under such subtitle.
(d) Every contract for contributions with respect to a low-
income housing project shall provide that no contributions by
the Secretary shall be made available for such project unless
such project (exclusive of any portion thereof which is not
assisted by contributions under this Act) is exempt from all
real and personal property taxes levied or imposed by the
State, city, county, or other political subdivision; and such
contract shall require the public housing agency to make
payments in lieu of taxes equal to 10 per centum of the sum of
the shelter rents charged in such project, or such lesser
amount as (i) is prescribed by State law, or (ii) is agreed to
by the local governing body in its agreement for local
cooperation with the public housing agency required under
section 5(e)(2) of this Act, or (iii) is due to failure of a
local public body or bodies other than the public housing
agency to perform any obligation under such agreement. If any
such project is not exempt from all real and personal property
taxes levied or imposed by the State, city, county, or other
political subdivision, such contract shall provide, in lieu of
the requirement for tax exemption and payments in lieu of
taxes, that no contributions by the Secretary shall be made
available for such project unless and until the State, city,
county, or other political subdivision in which such project is
situated shall contribute, in the form of cash or tax
remission, the amount by which the taxes paid with respect to
the project exceed 10 per centum of the shelter rents charged
in such project.
(f) Housing Quality Requirements.--
(1) In general.--Each contract for contributions for
a public housing agency shall require that the agency
maintain its public housing in a condition that
complies with standards which meet or exceed the
housing quality standards established under paragraph
(2).
(2) Federal standards.--The Secretary shall establish
housing quality standards under this paragraph that
ensure that public housing dwelling units are safe and
habitable. Such standards shall include requirements
relating to habitability, including maintenance, health
and sanitation factors, condition, and construction of
dwellings, and shall, to the greatest extent
practicable, be consistent with the standards
established under section 8(o)(8)(B)(i). The Secretary
may determine whether the laws, regulations, standards,
or codes of any State or local jurisdiction meet or
exceed these standards, for purposes of this
subsection.
(3) Annual inspections.--Each public housing agency
that owns or operates public housing shall make an
annual inspection of each public housing project to
determine whether units in the project are maintained
in accordance with the requirements under paragraph
(1). The agency shall retain the results of such
inspections and, upon the request of the Secretary, the
Inspector General for the Department of Housing and
Urban Development, or any auditor conducting an audit
under section 5(h), shall make such results available.
(g) Every contract for contributions (including contracts
which amend or supersede contracts previously made) may provide
that--
(1) upon the occurrence of a substantial default in
respect to the covenants or conditions to which the
public housing agency is subject (as such substantial
default shall be defined in such contract), the public
housing agency shall be obligated at the option of the
Secretary either to convey title in any case where, in
the determination of the Secretary (which determination
shall be final and conclusive), such conveyance of
title is necessary to achieve the purposes of this Act,
or to deliver to the Secretary possession of the
project, as then constituted, to which such contract
relates; and
(2) the Secretary shall be obligated to reconvey or
redeliver possession of the project, as constituted at
the time of reconveyance or redelivery, to such public
housing agency or to its successor (if such public
housing agency or a successor exists) upon such terms
as shall be prescribed in such contract, and as soon as
practicable (i) after the Secretary is satisfied that
all defaults with respect to the project have been
cured, and that the project will, in order to fulfill
the purposes of this Act, thereafter be operated in
accordance with the terms of such contract; or (ii)
after the termination of the obligation to make annual
contributions available unless there are any
obligations or covenants of the public housing agency
to the Secretary which are then in default. Any prior
conveyances and reconveyances or deliveries and
redeliveries of possession shall not exhaust the right
to require a conveyance or delivery of possession of
the project to the Secretary pursuant to subparagraph
(1) upon the subsequent occurrence of a substantial
default.
Whenever such a contract for annual contributions includes
provisions which the Secretary in such contract determines are
in accordance with this subsection, and the portion of the
annual contribution payable for debt service requirements
pursuant to such contract has been pledged by the public
housing agency as security for the payment of the principal and
interest on any of its obligations, the Secretary
(notwithstanding any other provisions of this Act) shall
continue to make such annual contributions available for the
project so long as any of such obligations remain outstanding,
and may covenant in such contract that in any event such annual
contributions shall in each year be at least equal to an amount
which, together with such income or other funds as are actually
available from the project for the purpose at the time such
annual contribution is made, will suffice for the payment of
all installments, falling due within the next succeeding twelve
months, of principal and interest on the obligations for which
the annual contributions provided for in the contract shall
have been pledged as security. In no case shall such annual
contributions be in excess of the maximum sum specified in the
contract involved, nor for longer than the remainder of the
maximum period fixed by the contract.
(h) On or after October 1, 1983, the Secretary may enter into
a contract involving new construction only if the public
housing agency demonstrates to the satisfaction of the
Secretary that the cost of new construction in the neighborhood
where the public housing agency determines the housing is
needed is less than the cost of acquisition or acquisition and
rehabilitation in such neighborhood, including any reserve fund
under subsection (i), would be.
(i) The Secretary may, upon application by a public housing
agency in connection with the acquisition of housing for use as
public housing, establish and set aside a reserve fund in an
amount not to exceed 30 per centum of the acquisition cost
which shall be available for use for major repairs to such
housing.
(j)(1) The Secretary shall develop and publish in the Federal
Register indicators to assess the management performance of
public housing agencies and resident management corporations.
The indicators shall be established by rule under section 553
of title 5, United States Code. Such indicators shall enable
the Secretary to evaluate the performance of public housing
agencies and resident management corporations in all major
areas of management operations. The Secretary shall, in
particular, use the following indicators:
(A) The number and percentage of vacancies within an
agency's inventory, including the progress that an
agency has made within the previous 3 years to reduce
such vacancies.
(B) The amount and percentage of funds provided to
the public housing agency from the Capital Fund under
section 9(d) which remain unobligated by the public
housing agency after 3 years.
(C) The percentage of rents uncollected.
(D) The utility consumption (with appropriate
adjustments to reflect different regions and unit
sizes).
(E) The average period of time that an agency
requires to repair and turn-around vacant units.
(F) The proportion of maintenance work orders
outstanding, including any progress that an agency has
made during the preceding 3 years to reduce the period
of time required to complete maintenance work orders.
(G) The percentage of units that an agency fails to
inspect to ascertain maintenance or modernization needs
within such period of time as the Secretary deems
appropriate (with appropriate adjustments, if any, for
large and small agencies).
(H) The extent to which the public housing agency--
(i) coordinates, promotes, or provides
effective programs and activities to promote
the economic self-sufficiency of public housing
residents; and
(ii) provides public housing residents with
opportunities for involvement in the
administration of the public housing.
(I) The extent to which the public housing agency--
(i) implements effective screening and
eviction policies and other anticrime
strategies; and
(ii) coordinates with local government
officials and residents in the project and
implementation of such strategies.
(J) The extent to which the public housing agency is
providing acceptable basic housing conditions.
(K) Any other factors as the Secretary deems
appropriate.
(2)(A)(i) The Secretary shall, under the rulemaking
procedures under section 553 of title 5, United States Code,
establish procedures for designating troubled public housing
agencies, which procedures shall include identification of
serious and substantial failure to perform as measured by the
performance indicators specified under paragraph (1) and such
other factors as the Secretary may deem to be appropriate. Such
procedures shall provide that an agency that fails on a
widespread basis to provide acceptable basic housing conditions
for its residents shall be designated as a troubled public
housing agency. The Secretary may use a simplified set of
indicators for public housing agencies with less than 250
public housing units. The Secretary shall also designate, by
rule under section 553 of title 5, United States Code, agencies
that are troubled with respect to the program for assistance
from the Capital Fund under section 9(d).
(ii) The Secretary may also, in consultation with national
organizations representing public housing agencies and public
officials (as the Secretary determines appropriate), identify
and commend public housing agencies that meet the performance
standards established under paragraph (1) in an exemplary
manner.
(iii) The Secretary shall establish procedures for public
housing agencies to appeal designation as a troubled agency
(including designation as a troubled agency for purposes of the
program for assistance from the Capital Fund under section
9(d)), to petition for removal of such designation, and to
appeal any refusal to remove such designation.
(B)(i) Upon designating a public housing agency with more
than 250 units as troubled pursuant to subparagraph (A) and
determining that an assessment under this subparagraph will not
duplicate any comparable and recent review, the Secretary shall
provide for an on-site, independent assessment of the
management of the agency.
(ii) To the extent the Secretary deems appropriate (taking
into account an agency's performance under the indicators
specified under paragraph (1)), the assessment team shall also
consider issues relating to the agency's resident population
and physical inventory, including the extent to which (I) the
agency's comprehensive plan prepared pursuant to section 14
adequately and appropriately addresses the rehabilitation needs
of the agency's inventory, (II) residents of the agency are
involved in and informed of significant management decisions,
and (III) any projects in the agency's inventory are severely
distressed and eligible for assistance pursuant to section 24.
(iii) An independent assessment under this subparagraph shall
be carried out by a team of knowledgeable individuals selected
by the Secretary (referred to in this section as the
``assessment team'') with expertise in public housing and real
estate management. In conducting an assessment, the assessment
team shall consult with the residents and with public and
private entities in the jurisdiction in which the public
housing is located. The assessment team shall provide to the
Secretary and the public housing agency a written report, which
shall contain, at a minimum, recommendations for such
management improvements as are necessary to eliminate or
substantially remedy existing deficiencies.
(C) The Secretary shall seek to enter into an agreement with
each troubled public housing agency, after reviewing the report
submitted pursuant to subparagraph (B) (if applicable) and
consulting with the agency's assessment team.
To the extent the Secretary deems appropriate (taking into
account an agency's performance under the indicators specified
under paragraph (1)), such agreement shall also set forth a
plan for enhancing resident involvement in the management of
the public housing agency. Such agreement shall set forth--
(i) targets for improving performance as measured by
the performance indicators specified under paragraph
(1) and other requirements within a specified period of
time;
(ii) strategies for meeting such targets, including a
description of the technical assistance that the
Secretary will make available to the agency; and
(iii) incentives or sanctions for effective
implementation of such strategies, which may include
any constraints on the use of funds that the Secretary
determines are appropriate.
The Secretary and the public housing agency shall, to the
maximum extent practicable, seek the assistance of local public
and private entities in carrying out the agreement.
(D) The Secretary shall apply the provisions of this
paragraph to resident management corporations as well
as public housing agencies.
(3)(A) Notwithstanding any other provision of law or of any
contract for contributions, upon the occurrence of events or
conditions that constitute a substantial default by a public
housing agency with respect to the covenants or conditions to
which the public housing agency is subject or an agreement
entered into under paragraph (2), the Secretary may--
(i) solicit competitive proposals from other public
housing agencies and private housing management agents
which (I) in the discretion of the Secretary, may be
selected by existing public housing residents through
administrative procedures established by the Secretary,
and (II) if appropriate, shall provide for such agents
to manage all, or part, of the housing administered by
the public housing agency or all or part of the other
programs of the agency;
(ii) petition for the appointment of a receiver
(which may be another public housing agency or a
private management corporation) of the public housing
agency to any district court of the United States or to
any court of the State in which the real property of
the public housing agency is situated, that is
authorized to appoint a receiver for the purposes and
having the powers prescribed in this subsection;
(iii) solicit competitive proposals from other public
housing agencies and private entities with experience
in construction management in the eventuality that such
agencies or firms may be needed to oversee
implementation of assistance made available from the
Capital Fund under section 9(d) for the housing; and
(iv) take possession of all or part of the public
housing agency, including all or part of any project or
program of the agency, including any project or program
under any other provision of this title; and
(v) require the agency to make other arrangements
acceptable to the Secretary and in the best interests
of the public housing residents and families assisted
under section 8 for managing all, or part, of the
public housing administered by the agency or of the
programs of the agency.
Residents of a public housing agency designated as troubled
pursuant to paragraph (2)(A) may petition the Secretary in
writing to take 1 or more of the actions referred to in this
subparagraph. The Secretary shall respond to such petitions in
a timely manner with a written description of the actions, if
any, the Secretary plans to take and, where applicable, the
reasons why such actions differ from the course proposed by the
residents.
(B)(i) If a public housing agency is identified as troubled
under this subsection, the Secretary shall notify the agency of
the troubled status of the agency.
(ii)(I) Upon the expiration of the 1-year period beginning on
the later of the date on which the agency receives initial
notice from the Secretary of the troubled status of the agency
under clause (i) and the date of the enactment of the Quality
Housing and Work Responsibility Act of 1998, the agency shall
improve its performance, as measured by the performance
indicators established pursuant to paragraph (1), by at least
50 percent of the difference between the most recent
performance measurement and the measurement necessary to remove
that agency's designation as troubled.
(II) Upon the expiration of the 2-year period beginning on
the later of the date on which the agency receives initial
notice from the Secretary of the troubled status of the agency
under clause (i) and the date of the enactment of the Quality
Housing and Work Responsibility Act of 1998, the agency shall
improve its performance, as measured by the performance
indicators established pursuant to paragraph (1), such that the
agency is no longer designated as troubled.
(III) In the event that a public housing agency designated as
troubled under this subsection fails to comply with the
requirements set forth in subclause (I) or (II), the Secretary
shall--
(aa) in the case of a troubled public housing agency
with 1,250 or more units, petition for the appointment
of a receiver pursuant to subparagraph (A)(ii); or
(bb) in the case of a troubled public housing agency
with fewer than 1,250 units, either petition for the
appointment of a receiver pursuant to subparagraph
(A)(ii), or take possession of the public housing
agency (including all or part of any project or program
of the agency) pursuant to subparagraph (A)(iv) and
appoint, on a competitive or noncompetitive basis, an
individual or entity as an administrative receiver to
assume the responsibilities of the Secretary for the
administration of all or part of the public housing
agency (including all or part of any project or program
of the agency).
This subparagraph shall not be construed to limit the courses
of action available to the Secretary under subparagraph (A).
(IV) During the period between the date on which a petition
is filed under subclause (III)(aa) and the date on which a
receiver assumes responsibility for the management of the
public housing agency under such subclause, the Secretary may
take possession of the public housing agency (including all or
part of any project or program of the agency) pursuant to
subparagraph (A)(iv) and may appoint, on a competitive or
noncompetitive basis, an individual or entity as an
administrative receiver to assume the responsibilities of the
Secretary for the administration of all or part of the public
housing agency (including all or part of any project or program
of the agency).
(C) If a receiver is appointed pursuant to subparagraph
(A)(ii), in addition to the powers accorded by the court
appointing the receiver, the receiver--
(i) may abrogate any contract to which the United
States or an agency of the United States is not a party
that, in the receiver's written determination (which
shall include the basis for such determination),
substantially impedes correction of the substantial
default, but only after the receiver determines that
reasonable efforts to renegotiate such contract have
failed;
(ii) may demolish and dispose of all or part of the
assets of the public housing agency (including all or
part of any project of the agency) in accordance with
section 18, including disposition by transfer of
properties to resident-supported nonprofit entities;
(iii) if determined to be appropriate by the
Secretary, may seek the establishment, as permitted by
applicable State and local law, of 1 or more new public
housing agencies;
(iv) if determined to be appropriate by the
Secretary, may seek consolidation of all or part of the
agency (including all or part of any project or program
of the agency), as permitted by applicable State and
local laws, into other well-managed public housing
agencies with the consent of such well-managed
agencies; and
(v) shall not be required to comply with any State or
local law relating to civil service requirements,
employee rights (except civil rights), procurement, or
financial or administrative controls that, in the
receiver's written determination (which shall include
the basis for such determination), substantially
impedes correction of the substantial default.
(D)(i) If, pursuant to subparagraph (A)(iv), the Secretary
takes possession of all or part of the public housing agency,
including all or part of any project or program of the agency,
the Secretary--
(I) may abrogate any contract to which the United
States or an agency of the United States is not a party
that, in the written determination of the Secretary
(which shall include the basis for such determination),
substantially impedes correction of the substantial
default, but only after the Secretary determines that
reasonable efforts to renegotiate such contract have
failed;
(II) may demolish and dispose of all or part of the
assets of the public housing agency (including all or
part of any project of the agency) in accordance with
section 18, including disposition by transfer of
properties to resident-supported nonprofit entities;
(III) may seek the establishment, as permitted by
applicable State and local law, of 1 or more new public
housing agencies;
(IV) may seek consolidation of all or part of the
agency (including all or part of any project or program
of the agency), as permitted by applicable State and
local laws, into other well-managed public housing
agencies with the consent of such well-managed
agencies;
(V) shall not be required to comply with any State or
local law relating to civil service requirements,
employee rights (except civil rights), procurement, or
financial or administrative controls that, in the
Secretary's written determination (which shall include
the basis for such determination), substantially
impedes correction of the substantial default; and
(VI) shall, without any action by a district court of
the United States, have such additional authority as a
district court of the United States would have the
authority to confer upon a receiver to achieve the
purposes of the receivership.
(ii) If, pursuant to subparagraph (B)(ii)(III)(bb), the
Secretary appoints an administrative receiver to assume the
responsibilities of the Secretary for the administration of all
or part of the public housing agency (including all or part of
any project or program of the agency), the Secretary may
delegate to the administrative receiver any or all of the
powers given the Secretary by this subparagraph, as the
Secretary determines to be appropriate and subject to clause
(iii).
(iii) An administrative receiver may not take an action
described in subclause (III) or (IV) of clause (i) unless the
Secretary first approves an application by the administrative
receiver to authorize such action.
(E) The Secretary may make available to receivers and other
entities selected or appointed pursuant to this paragraph such
assistance as the Secretary determines in the discretion of the
Secretary is necessary and available to remedy the substantial
deterioration of living conditions in individual public housing
projects or other related emergencies that endanger the health,
safety, and welfare of public housing residents or families
assisted under section 8. A decision made by the Secretary
under this paragraph shall not be subject to review in any
court of the United States, or in any court of any State,
territory, or possession of the United States.
(F) In any proceeding under subparagraph (A)(ii), upon a
determination that a substantial default has occurred and
without regard to the availability of alternative remedies, the
court shall appoint a receiver to conduct the affairs of all or
part of the public housing agency in a manner consistent with
this Act and in accordance with such further terms and
conditions as the court may provide. The receiver appointed may
be another public housing agency, a private management
corporation, or any other person or appropriate entity. The
court shall have power to grant appropriate temporary or
preliminary relief pending final disposition of the petition by
the Secretary.
(G) The appointment of a receiver pursuant to this paragraph
may be terminated, upon the petition of any party, when the
court determines that all defaults have been cured or the
public housing agency is capable again of discharging its
duties.
(H) If the Secretary (or an administrative receiver appointed
by the Secretary) takes possession of a public housing agency
(including all or part of any project or program of the
agency), or if a receiver is appointed by a court, the
Secretary or receiver shall be deemed to be acting not in the
official capacity of that person or entity, but rather in the
capacity of the public housing agency, and any liability
incurred, regardless of whether the incident giving rise to
that liability occurred while the Secretary or receiver was in
possession of all or part of the public housing agency
(including all or part of any project or program of the
agency), shall be the liability of the public housing agency.
(4) Sanctions for improper use of amounts.--
(A) In general.--In addition to any other actions
authorized under this Act, if the Secretary finds that
a public housing agency receiving assistance amounts
under section 9 for public housing has failed to comply
substantially with any provision of this Act relating
to the public housing program, the Secretary may--
(i) terminate assistance payments under this
section 9 to the agency;
(ii) withhold from the agency amounts from
the total allocations for the agency pursuant
to section 9;
(iii) reduce the amount of future assistance
payments under section 9 to the agency by an
amount equal to the amount of such payments
that were not expended in accordance with this
Act;
(iv) limit the availability of assistance
amounts provided to the agency under section 9
to programs, projects, or activities not
affected by such failure to comply;
(v) withhold from the agency amounts
allocated for the agency under section 8; or
(vi) order other corrective action with
respect to the agency.
(B) Termination of compliance action.--If the
Secretary takes action under subparagraph (A) with
respect to a public housing agency, the Secretary
shall--
(i) in the case of action under subparagraph
(A)(i), resume payments of assistance amounts
under section 9 to the agency in the full
amount of the total allocations under section 9
for the agency at the time that the Secretary
first determines that the agency will comply
with the provisions of this Act relating to the
public housing program;
(ii) in the case of action under clause (ii)
or (v) of subparagraph (A), make withheld
amounts available as the Secretary considers
appropriate to ensure that the agency complies
with the provisions of this Act relating to
such program;
(iii) in the case of action under
subparagraph (A)(iv), release such restrictions
at the time that the Secretary first determines
that the agency will comply with the provisions
of this Act relating to such program; or
(iv) in the case of action under subparagraph
(vi), cease such action at the time that the
Secretary first determines that the agency will
comply with the provisions of this Act relating
to such program.
(5) The Secretary shall submit to the Congress annually, as a
part of the report of the Secretary under section 8 of the
Department of Housing and Urban Development Act, a report
that--
(A) identifies the public housing agencies that have
been designated as troubled under paragraph (2);
(B) describes the grounds on which such public
housing agencies were designated as troubled and
continue to be so designated;
(C) describes the agreements that have been entered
into with such agencies under such paragraph;
(D) describes the status of progress under such
agreements;
(E) describes any action that has been taken in
accordance with paragraph (3); and
(F) describes the status of any public housing agency
designated as troubled with respect to the program for
assistance from the Capital Fund under section 9(d) and
specifies the amount of assistance the agency received
under such program.
(6)(A) To the extent that the Secretary determines such
action to be necessary in order to ensure the accuracy of any
certification made under this section, the Secretary shall
require an independent auditor to review documentation or other
information maintained by a public housing agency pursuant to
this section to substantiate each certification submitted by
the agency or corporation relating to the performance of that
agency or corporation.
(B) The Secretary may withhold, from assistance otherwise
payable to the agency or corporation under section 9, amounts
sufficient to pay for the reasonable costs of any review under
this paragraph.
(7) The Secretary shall apply the provisions of this
subsection to resident management corporations in the same
manner as applied to public housing agencies.
(k) The Secretary shall by regulation require each public
housing agency receiving assistance under this Act to establish
and implement an administrative grievance procedure under which
tenants will--
(1) be advised of the specific grounds of any
proposed adverse public housing agency action;
(2) have an opportunity for a hearing before an
impartial party upon timely request within any period
applicable under subsection (l);
(3) have an opportunity to examine any documents or
records or regulations related to the proposed action;
(4) be entitled to be represented by another person
of their choice at any hearing;
(5) be entitled to ask questions of witnesses and
have others make statements on their behalf; and
(6) be entitled to receive a written decision by the
public housing agency on the proposed action.
For any grievance concerning an eviction or termination of
tenancy that involves any activity that threatens the health,
safety, or right to peaceful enjoyment of the premises of other
tenants or employees of the public housing agency or any
violent or drug-related criminal activity on or off such
premises, or any activity resulting in a felony conviction, the
agency may (A) establish an expedited grievance procedure as
the Secretary shall provide by rule under section 553 of title
5, United States Code, or (B) exclude from its grievance
procedure any such grievance, in any jurisdiction which
requires that prior to eviction, a tenant be given a hearing in
court which the Secretary determines provides the basic
elements of due process (which the Secretary shall establish by
rule under section 553 of title 5, United States Code). Such
elements of due process shall not include a requirement that
the tenant be provided an opportunity to examine relevant
documents within the possession of the public housing agency.
The agency shall provide to the tenant a reasonable
opportunity, prior to hearing or trial, to examine any relevant
documents, records, or regulations directly related to the
eviction or termination.
(l) Each public housing agency shall utilize leases which--
(1) have a term of 12 months and shall be
automatically renewed for all purposes except for
noncompliance with the requirements under section 12(c)
(relating to community service requirements); except
that nothing in this title shall prevent a resident
from seeking timely redress in court for failure to
renew based on such noncompliance;
(2) do not contain unreasonable terms and conditions;
(3) obligate the public housing agency to maintain
the project in a decent, safe, and sanitary condition;
(4) require the public housing agency to give
adequate written notice of termination of the lease
which shall not be less than--
(A) a reasonable period of time, but not to
exceed 30 days--
(i) if the health or safety of other
tenants, public housing agency
employees, or persons residing in the
immediate vicinity of the premises is
threatened; or
(ii) in the event of any drug-related
or violent criminal activity or any
felony conviction;
(B) 14 days in the case of nonpayment of
rent; and
(C) 30 days in any other case, except that if
a State or local law provides for a shorter
period of time, such shorter period shall
apply;
(5) require that the public housing agency may not
terminate the tenancy except for serious or repeated
violation of the terms or conditions of the lease or
for other good cause;
(6) provide that any criminal activity that threatens
the health, safety, or right to peaceful enjoyment of
the premises by other tenants or any drug-related
criminal activity on or off such premises, engaged in
by a public housing tenant, any member of the tenant's
household, or any guest or other person under the
tenant's control, shall be cause for termination of
tenancy;
(7) specify that with respect to any notice of
eviction or termination, notwithstanding any State law,
a public housing tenant shall be informed of the
opportunity, prior to any hearing or trial, to examine
any relevant documents, records or regulations directly
related to the eviction or termination;
(7) provide that any occupancy in violation of
section 576(b) of the Quality Housing and Work
Responsibility Act of 1998 (relating to ineligibility
of illegal drug users and alcohol abusers) or the
furnishing of any false or misleading information
pursuant to section 577 of such Act (relating to
termination of tenancy and assistance for illegal drug
users and alcohol abusers) shall be cause for
termination of tenancy;
(9) provide that it shall be cause for immediate
termination of the tenancy of a public housing tenant
if such tenant--
(A) is fleeing to avoid prosecution, or
custody or confinement after conviction, under
the laws of the place from which the individual
flees, for a crime, or attempt to commit a
crime, which is a felony under the laws of the
place from which the individual flees, or
which, in the case of the State of New Jersey,
is a high misdemeanor under the laws of such
State; or
(2) is violating a condition of probation or parole
imposed under Federal or State law.
For purposes of paragraph (5), the term ``drug-related criminal
activity'' means the illegal manufacture, sale, distribution,
use, or possession with intent to manufacture, sell,
distribute, or use, of a controlled substance (as defined in
section 102 of the Controlled Substances Act (21 U.S.C. 802)).
(m) The Secretary shall not impose any unnecessarily
duplicative or burdensome reporting requirements on tenants or
public housing agencies assisted under this Act.
(n) When a public housing agency evicts an individual or
family from a dwelling unit for engaging in criminal activity,
including drug-related criminal activity, the public housing
agency shall notify the local post office serving that dwelling
unit that such individual or family is no longer residing in
the dwelling unit.
(o) In providing housing in low-income housing projects, each
public housing agency may coordinate with any local public
agencies involved in providing for the welfare of children to
make available dwelling units to--
(1) families identified by the agencies as having a
lack of adequate housing that is a primary factor--
(A) in the imminent placement of a child in
foster care; or
(B) in preventing the discharge of a child
from foster care and reunification with his or
her family; and
(2) youth, upon discharge from foster care, in cases
in which return to the family or extended family or
adoption is not available.
(q) Availability of Records.--
(1) In general.--
(A) Provision of information.--
Notwithstanding any other provision of law,
except as provided in subparagraph (C), the
National Crime Information Center, police
departments, and other law enforcement agencies
shall, upon request, provide information to
public housing agencies regarding the criminal
conviction records of adult applicants for, or
tenants of, public housing for purposes of
applicant screening, lease enforcement, and
eviction.
(B) Requests by owners of project-based
section 8 housing.--A public housing agency may
make a request under subparagraph (A) for
information regarding applicants for, or
tenants of, housing that is provided project-
based assistance under section 8 only if the
housing is located within the jurisdiction of
the agency and the owner of such housing has
requested that the agency obtain such
information on behalf of the owner. Upon such a
request by the owner, the agency shall make a
request under subparagraph (A) for the
information. The agency may not make such
information available to the owner but shall
perform determinations for the owner regarding
screening, lease enforcement, and eviction
based on criteria supplied by the owner.
(C) Exception.--A law enforcement agency
described in subparagraph (A) shall provide
information under this paragraph relating to
any criminal conviction of a juvenile only to
the extent that the release of such information
is authorized under the law of the applicable
State, tribe, or locality.
(2) Opportunity to dispute.--Before an adverse action
is taken with regard to assistance under this title on
the basis of a criminal record, the public housing
agency shall provide the tenant or applicant with a
copy of the criminal record and an opportunity to
dispute the accuracy and relevance of that record.
(3) Fees.--A public housing agency may be charged a
reasonable fee for information provided under paragraph
(1). In the case of a public housing agency obtaining
information pursuant to paragraph (1)(B) for another
owner of housing, the agency may pass such fee on to
the owner initiating the request and may charge
additional reasonable fees for making the request on
behalf of the owner and taking other actions for owners
under this subsection.
(4) Records management.--Each public housing agency
shall establish and implement a system of records
management that ensures that any criminal record
received by the public housing agency is--
(A) maintained confidentially;
(B) not misused or improperly disseminated;
and
(C) destroyed, once the purpose for which the
record was requested has been accomplished.
(5) Confidentiality.--A public housing agency
receiving information under this subsection may use
such information only for the purposes provided in this
subsection and such information may not be disclosed to
any person who is not an officer, employee, or
authorized representative of the agency and who has a
job-related need to have access to the information in
connection with admission of applicants, eviction of
tenants, or termination of assistance. For judicial
eviction proceedings, disclosures may be made to the
extent necessary. The Secretary shall, by regulation,
establish procedures necessary to ensure that
information provided under this subsection to a public
housing agency is used, and confidentiality of such
information is maintained, as required under this
subsection. The Secretary shall establish standards for
confidentiality of information obtained under this
subsection by public housing agencies on behalf of
owners.
(6) Penalty.--Any person who knowingly and willfully
requests or obtains any information concerning an
applicant for, or tenant of, covered housing assistance
pursuant to the authority under this subsection under
false pretenses, or any person who knowingly and
willfully discloses any such information in any manner
to any individual not entitled under any law to receive
it, shall be guilty of a misdemeanor and fined not more
than $5,000. The term ``person'' as used in this
paragraph include an officer, employee, or authorized
representative of any public housing agency.
(7) Civil Action.--Any applicant for, or tenant of,
covered housing assistance affected by (A) a negligent
or knowing disclosure of information referred to in
this subsection about such person by an officer,
employee, or authorized representative of any public
housing agency, which disclosure is not authorized by
this subsection, or (B) any other negligent or knowing
action that is inconsistent with this subsection, may
bring a civil action for damages and such other relief
as may be appropriate against any public housing agency
responsible for such unauthorized action. The district
court of the United States in the district in which the
affected applicant or tenant resides, in which such
unauthorized action occurred, or in which the officer,
employee, or representative alleged to be responsible
for any such unauthorized action resides, shall have
jurisdiction in such matters. Appropriate relief that
may be ordered by such district courts shall include
reasonable attorney's fees and other litigation costs.
(8) Definitions.--For purposes of this subsection,
the following definitions shall apply:
(A) Adult.--The term ``adult'' means a person
who is 18 years of age or older, or who has
been convicted of a crime as an adult under any
Federal, State, or tribal law.
(B) Covered housing assistance.--The term
``covered housing assistance'' means--
(i) a dwelling unit in public
housing;
(ii) a dwelling unit in housing that
is provided project-based assistance
under section 8, including new
construction and substantial
rehabilitation projects; and
(iii) tenant-based assistance under
section 8.
(C) Owner.--The term ``owner'' means, with
respect to covered housing assistance described
in subparagraph (B)(ii), the entity or private
person (including a cooperative or public
housing agency) that has the legal right to
lease or sublease dwelling units in the housing
assisted.
(r) Site-Based Waiting Lists.--
(1) Authority.--A public housing agency may establish
procedures for maintaining waiting lists for admissions
to public housing projects of the agency, which may
include (notwithstanding any other law, regulation,
handbook, or notice to the contrary) a system of site-
based waiting lists under which applicants may apply
directly at or otherwise designate the project or
projects in which they seek to reside. All such
procedures shall comply with all provisions of title VI
of the Civil Rights Act of 1964, the Fair Housing Act,
and other applicable civil rights laws.
(2) Notice.--Any system described in paragraph (1)
shall provide for the full disclosure by the public
housing agency to each applicant of any option
available to the applicant in the selection of the
project in which to reside.
(s) Authority To Require Access to Criminal Records.--A
public housing agency may require, as a condition of providing
admission to the public housing program or assisted housing
program under the jurisdiction of the public housing agency,
that each adult member of the household provide a signed,
written authorization for the public housing agency to obtain
records described in subsection (q)(1) regarding such member of
the household from the National Crime Information Center,
police departments, and other law enforcement agencies.
(t) Obtaining Information From Drug Abuse Treatment
Facilities.--
(1) Authority.--Notwithstanding any other provision
of law other than the Public Health Service Act (42
U.S.C. 201 et seq.), a public housing agency may
require each person who applies for admission to public
housing to sign one or more forms of written consent
authorizing the agency to receive information from a
drug abuse treatment facility that is solely related to
whether the applicant is currently engaging in the
illegal use of a controlled substance.
(2) Confidentiality of applicant's records.--
(A) Limitation on information requested.--In
a form of written consent, a public housing
agency may request only whether the drug abuse
treatment facility has reasonable cause to
believe that the applicant is currently
engaging in the illegal use of a controlled
substance.
(B) Records management.--Each public housing
agency that receives information under this
subsection from a drug abuse treatment facility
shall establish and implement a system of
records management that ensures that any
information received by the public housing
agency under this subsection--
(i) is maintained confidentially in
accordance with section 543 of the
Public Health Service Act (12 U.S.C.
290dd-2);
(ii) is not misused or improperly
disseminated; and
(iii) is destroyed, as applicable--
(I) not later than 5 business
days after the date on which
the public housing agency gives
final approval for an
application for admission; or
(II) if the public housing
agency denies the application
for admission, in a timely
manner after the date on which
the statute of limitations for
the commencement of a civil
action from the applicant based
upon that denial of admission
has expired.
(C) Expiration of written consent.--In
addition to the requirements of subparagraph
(B), an applicant's signed written consent
shall expire automatically after the public
housing agency has made a final decision to
either approve or deny the applicant's
application for admittance to public housing.
(3) Prohibition of discriminatory treatment of
applicants.--
(A) Forms signed.--A public housing agency
may only require an applicant for admission to
public housing to sign one or more forms of
written consent under this subsection if the
public housing agency requires all such
applicants to sign the same form or forms of
written consent.
(B) Circumstances of inquiry.--A public
housing agency may only make an inquiry to a
drug abuse treatment facility under this
subsection if--
(i) the public housing agency makes
the same inquiry with respect to all
applicants; or
(ii) the public housing agency only
makes the same inquiry with respect to
each and every applicant with respect
to whom--
(I) the public housing agency
receives information from the
criminal record of the
applicant that indicates
evidence of a prior arrest or
conviction; or
(II) the public housing
agency receives information
from the records of prior
tenancy of the applicant that
demonstrates that the
applicant--
(aa) engaged in the
destruction of
property;
(bb) engaged in
violent activity
against another person;
or
(cc) interfered with
the right of peaceful
enjoyment of the
premises of another
tenant.
(4) Fee permitted.--A drug abuse treatment facility
may charge a public housing agency a reasonable fee for
information provided under this subsection.
(5) Disclosure permitted by treatment facilities.--A
drug abuse treatment facility shall not be liable for
damages based on any information required to be
disclosed pursuant to this subsection if such
disclosure is consistent with section 543 of the Public
Health Service Act (42 U.S.C. 290dd-2).
(6) Option to not request information.--A public
housing agency shall not be liable for damages based on
its decision not to require each person who applies for
admission to public housing to sign one or more forms
of written consent authorizing the public housing
agency to receive information from a drug abuse
treatment facility under this subsection.
(7) Definitions.--For purposes of this subsection,
the following definitions shall apply:
(A) Drug abuse treatment facility.--The term
``drug abuse treatment facility'' means an
entity that--
(i) is--
(I) an identified unit within
a general medical care
facility; or
(II) an entity other than a
general medical care facility;
and
(ii) holds itself out as providing,
and provides, diagnosis, treatment, or
referral for treatment with respect to
the illegal use of a controlled
substance.
(B) Controlled substance.--The term
``controlled substance'' has the meaning given
the term in section 102 of the Controlled
Substances Act (21 U.S.C. 802).
(C) Currently engaging in the illegal use of
a controlled substance.--The term ``currently
engaging in the illegal use of a controlled
substance'' means the illegal use of a
controlled substance that occurred recently
enough to justify a reasonable belief that an
applicant's illegal use of a controlled
substance is current or that continuing illegal
use of a controlled substance by the applicant
is a real and ongoing problem.
(8) Effective date.--This subsection shall take
effect upon enactment and without the necessity of
guidance from, or any regulation issued by, the
Secretary.
* * * * * * *
lower income housing assistance
Sec. 8. (a) For the purpose of aiding lower-income families
in obtaining a decent place to live and of promoting
economically mixed housing, assistance payments may be made
with respect to existing housing in accordance with the
provisions of this section.
(b) Other Existing Housing Programs.--(1) In general.--The
Secretary is authorized to enter into annual contributions
contracts with public housing agencies pursuant to which such
agencies may enter into contracts to make assistance payments
to owners of existing dwelling units in accordance with this
section. In areas where no public housing agency has been
organized or where the Secretary determines that a public
housing agency is unable to implement the provisions of this
section, the Secretary is authorized to enter into such
contracts and to perform the other functions assigned to a
public housing agency by this section.
(2) The Secretary is authorized to enter into annual
contributions contracts with public housing agencies for the
purpose of replacing public housing transferred in accordance
with title III of this Act. Each contract entered into under
this subsection shall be for a term of not more than 60 months.
(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. 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. 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) Fair market rentals for an area shall be published not
less than annually by the Secretary on the site of the
Department on the World Wide Web and in any other manner
specified by the Secretary. Notice that such fair market
rentals are being published shall be published in the Federal
Register, and such fair market rentals shall become effective
no earlier than 30 days after the date of such publication. The
Secretary shall establish a procedure for public housing
agencies and other interested parties to comment on such fair
market rentals and to request, within a time specified by the
Secretary, reevaluation of the fair market rentals in a
jurisdiction before such rentals become effective. The
Secretary shall cause to be published for comment in the
Federal Register notices of proposed material changes in the
methodology for estimating fair market rentals and notices
specifying the final decisions regarding such proposed
substantial methodological changes and responses to public
comments.
(2)(A) The assistance contract shall provide for adjustment
annually or more frequently in the maximum monthly rents for
units covered by the contract to reflect changes in the fair
market rentals established in the housing area for similar
types and sizes of dwelling units or, if the Secretary
determines, on the basis of a reasonable formula. However,
where the maximum monthly rent, for a unit in a new
construction, substantial rehabilitation, or moderate
rehabilitation project, to be adjusted using an annual
adjustment factor exceeds the fair market rental for an
existing dwelling unit in the market area, the Secretary shall
adjust the rent only to the extent that the owner demonstrates
that the adjusted rent would not exceed the rent for an
unassisted unit of similar quality, type, and age in the same
market area, as determined by the Secretary. The immediately
foregoing sentence shall be effective only during fiscal year
1995, fiscal year 1996 prior to April 26, 1996, and fiscal
years 1997 and 1998, and during fiscal year 1999 and
thereafter. Except for assistance under the certificate
program, for any unit occupied by the same family at the time
of the last annual rental adjustment, where the assistance
contract provides for the adjustment of the maximum monthly
rent by applying an annual adjustment factor and where the rent
for a unit is otherwise eligible for an adjustment based on the
full amount of the factor, 0.01 shall be subtracted from the
amount of the factor, except that the factor shall not be
reduced to less than 1.0. In the case of assistance under the
certificate program, 0.01 shall be subtracted from the amount
of the annual adjustment factor (except that the factor shall
not be reduced to less than 1.0), and the adjusted rent shall
not exceed the rent for a comparable unassisted unit of similar
quality, type, and age in the market area. The immediately
foregoing two sentences shall be effective only during fiscal
year 1995, fiscal year 1996 prior to April 26, 1996, and fiscal
years 1997 and 1998, and during fiscal year 1999 and
thereafter. In establishing annual adjustment factors for units
in new construction and substantial rehabilitation projects,
the Secretary shall take into account the fact that debt
service is a fixed expense. The immediately foregoing sentence
shall be effective only during fiscal year 1998.
(B) The contract shall further provide for the Secretary to
make additional adjustments in the maximum monthly rent for
units under contract to the extent he determines such
adjustments are necessary to reflect increases in the actual
and necessary expenses of owning and maintaining the units
which have resulted from substantial general increases in real
property taxes, utility rates, or similar costs which are not
adequately compensated for by the adjustment in the maximum
monthly rent authorized by subparagraph (A). The Secretary
shall make additional adjustments in the maximum monthly rent
for units under contract (subject to the availability of
appropriations for contract amendments) to the extent the
Secretary determines such adjustments are necessary to reflect
increases in the actual and necessary expenses of owning and
maintaining the units that have resulted from the expiration of
a real property tax exemption. Where the Secretary determines
that a project assisted under this section is located in a
community where drug-related criminal activity is generally
prevalent and the project's operating, maintenance, and capital
repair expenses have been substantially increased primarily as
a result of the prevalence of such drug-related activity, the
Secretary may (at the discretion of the Secretary and subject
to the availability of appropriations for contract amendments
for this purpose), on a project by project basis, provide
adjustments to the maximum monthly rents, to a level no greater
than 120 percent of the project rents, to cover the costs of
maintenance, security, capital repairs, and reserves required
for the owner to carry out a strategy acceptable to the
Secretary for addressing the problem of drug-related criminal
activity. Any rent comparability standard required under this
paragraph may be waived by the Secretary to so implement the
preceding sentence. The Secretary may (at the discretion of the
Secretary and subject to the availability of appropriations for
contract amendments), on a project by project basis for
projects receiving project-based assistance, provide
adjustments to the maximum monthly rents to cover the costs of
evaluating and reducing lead-based paint hazards, as defined in
section 1004 of the Residential Lead-Based Paint Hazard
Reduction Act of 1992.
(C) Adjustments in the maximum rents under subparagraphs (A)
and (B) shall not result in material differences between the
rents charged for assisted units and unassisted units of
similar quality, type, and age in the same market area, as
determined by the Secretary. In implementing the limitation
established under the preceding sentence, the Secretary shall
establish regulations for conducting comparability studies for
projects where the Secretary has reason to believe that the
application of the formula adjustments under subparagraph (A)
would result in such material differences. The Secretary shall
conduct such studies upon the request of any owner of any
project, or as the Secretary determines to be appropriate by
establishing, to the extent practicable, a modified annual
adjustment factor for such market area, as the Secretary shall
designate, that is geographically smaller than the applicable
housing area used for the establishment of the annual
adjustment factor under subparagraph (A). The Secretary shall
establish such modified annual adjustment factor on the basis
of the results of a study conducted by the Secretary of the
rents charged, and any change in such rents over the previous
year, for assisted units and unassisted units of similar
quality, type, and age in the smaller market area. Where the
Secretary determines that such modified annual adjustment
factor cannot be established or that such factor when applied
to a particular project would result in material differences
between the rents charged for assisted units and unassisted
units of similar quality, type, and age in the same market
area, the Secretary may apply an alternative methodology for
conducting comparability studies in order to establish rents
that are not materially different from rents charged for
comparable unassisted units. If the Secretary or appropriate
State agency does not complete and submit to the project owner
a comparability study not later than 60 days before the
anniversary date of the assistance contract under this section,
the automatic annual adjustment factor shall be applied. The
Secretary may not reduce the contract rents in effect on or
after April 15, 1987, for newly constructed, substantially
rehabilitated, or moderately rehabilitated projects assisted
under this section (including projects assisted under this
section as in effect prior to November 30, 1983), unless the
project has been refinanced in a manner that reduces the
periodic payments of the owner. Any maximum monthly rent that
has been reduced by the Secretary after April 14, 1987, and
prior to the enactment of this sentence shall be restored to
the maximum monthly rent in effect on April 15, 1987. For any
project which has had its maximum monthly rents reduced after
April 14, 1987, the Secretary shall make assistance payments
(from amounts reserved for the original contract) to the owner
of such project in an amount equal to the difference between
the maximum monthly rents in effect on April 15, 1987, and the
reduced maximum monthly rents, multiplied by the number of
months that the reduced maximum monthly rents were in effect.
(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.
(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,
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.
(5) The Secretary shall take such steps as may be necessary,
including the making of contracts for assistance payments in
amounts in excess of the amounts required at the time of the
initial renting of dwelling units, the reservation of annual
contributions authority for the purpose of amending housing
assistance contracts, or the allocation of a portion of new
authorizations for the purpose of amending housing assistance
contracts, to assure that assistance payments are increased on
a timely basis to cover increases in maximum monthly rents or
decreases in family incomes.
(8)(A) Not less than one year before termination of any
contract under which assistance payments are received under
this section, other than a contract for tenant-based assistance
under this section, an owner shall provide written notice to
the Secretary and the tenants involved of the proposed
termination. The notice shall also include a statement that, if
the Congress makes funds available, the owner and the Secretary
may agree to a renewal of the contract, thus avoiding
termination, and that in the event of termination the
Department of Housing and Urban Development will provide
tenant-based rental assistance to all eligible residents,
enabling them to choose the place they wish to rent, which is
likely to include the dwelling unit in which they currently
reside. Any contract covered by this paragraph that is renewed
may be renewed for a period of up to 1 year or any number or
years, with payments subject to the availability of
appropriations for any year.
(B) In the event the owner does not provide the notice
required, the owner may not evict the tenants or increase the
tenants' rent payment until such time as the owner has provided
the notice and 1 year has elapsed. The Secretary may allow the
owner to renew the terminating contract for a period of time
sufficient to give tenants 1 year of advance notice under such
terms and conditions as the Secretary may require.
(C) Any notice under this paragraph shall also comply with
any additional requirements established by the Secretary.
(D) For purposes of this paragraph, the term ``termination''
means the expiration of the assistance contract or an owner's
refusal to renew the assistance contract, and such term shall
include termination of the contract for business reasons.
(d)(1) Contracts to make assistance payments entered into by
a public housing agency with an owner of existing housing units
shall provide (with respect to any unit) that--
(A) the selection of tenants shall be the function of
the owner, subject to the annual contributions contract
between the Secretary and the agency, [except that with
respect] except that--
(i) with respect to assisted dwelling units
in a project assisted with project-based
assistance under this section, the tenant
selection criteria used by the owner--
(I) shall provide that the highest
preference shall be given to otherwise
eligible children who are in foster
care, have attained an age such that
the provision of foster care for such
child will end by reason of the age of
the child within 6 months, meet the
requirements under clauses (i) and (ii)
of paragraph (1) of the definition of
``at risk of homelessness'' in section
91.5 of the Secretary's regulations (24
C.F.R. 91.5), as in effect on September
1, 2016, and have agreed to comply with
the requirements under section 39(c);
and
(II) may provide highest preference
to, in addition to eligible children
described in subclause (I), not more
than two other types of eligible
families; and
(ii) with respect to the certificate and
moderate rehabilitation programs only, for the
purpose of selecting families to be assisted
who are not eligible for highest preference
pursuant to clause (i)(I), the public housing
agency may establish local preferences,
consistent with the public housing agency plan
submitted under section 5A (42 U.S.C. 1437c-1)
by the public housing agency;
(B)(i) the lease between the tenant and the owner
shall be for at least one year or the term of such
contract, whichever is shorter, and shall contain other
terms and conditions specified by the Secretary;
(ii) during the term of the lease, the owner
shall not terminate the tenancy except for
serious or repeated violation of the terms and
conditions of the lease, for violation of
applicable Federal, State, or local law, or for
other good cause;
(iii) during the term of the lease, any
criminal activity that threatens the health,
safety, or right to peaceful enjoyment of the
premises by other tenants, any criminal
activity that threatens the health, safety, or
right to peaceful enjoyment of their residences
by persons residing in the immediate vicinity
of the premises, or any drug-related criminal
activity on or near such premises, engaged in
by a tenant of any unit, any member of the
tenant's household, or any guest or other
person under the tenant's control, shall be
cause for termination of tenancy;
(iv) any termination of tenancy shall be
preceded by the owner's provision of written
notice to the tenant specifying the grounds for
such action; and
(v) it shall be cause for termination of the
tenancy of a tenant if such tenant--
(I) is fleeing to avoid prosecution,
or custody or confinement after
conviction, under the laws of the place
from which the individual flees, for a
crime, or attempt to commit a crime,
which is a felony under the laws of the
place from which the individual flees,
or which, in the case of the State of
New Jersey, is a high misdemeanor under
the laws of such State; or
(II) is violating a condition of
probation or parole imposed under
Federal or State law;
(C) maintenance and replacement (including
redecoration) shall be in accordance with the standard
practice for the building concerned as established by
the owner and agreed to by the agency; and
(D) the agency and the owner shall carry out such
other appropriate terms and conditions as may be
mutually agreed to by them.
(2)(A) Each contract for an existing structure entered into
under this section shall be for a term of not less than one
month nor more than one hundred and eighty months. The
Secretary shall permit public housing agencies to enter into
contracts for assistance payments of less than 12 months
duration in order to avoid disruption in assistance to eligible
families if the annual contributions contract is within 1 year
of its expiration date.
(B)(i) In determining the amount of assistance provided under
an assistance contract for project-based assistance under this
paragraph or a contract for assistance for housing constructed
or substantially rehabilitated pursuant to assistance provided
under section 8(b)(2) of this Act (as such section existed
immediately before October 1, 1983), the Secretary may consider
and annually adjust, with respect to such project, for the cost
of employing or otherwise retaining the services of one or more
service coordinators under section 661 of the Housing and
Community Development Act of 1992 to coordinate the provision
of any services within the project for residents of the project
who are elderly or disabled families.
(ii) The budget authority available under section 5(c) for
assistance under this section is authorized to be increased by
$15,000,000 on or after October 1, 1992, and by $15,000,000 on
or after October 1, 1993. Amounts made available under this
subparagraph shall be used to provide additional amounts under
annual contributions contracts for assistance under this
section which shall be made available through assistance
contracts only for the purpose of providing service
coordinators under clause (i) for projects receiving project-
based assistance under this paragraph and to provide additional
amounts under contracts for assistance for projects constructed
or substantially rehabilitated pursuant to assistance provided
under section 8(b)(2) of this Act (as such section existed
immediately before October 1, 1983) only for such purpose.
(C) An assistance contract for project-based
assistance under this paragraph shall provide that the
owner shall ensure and maintain compliance with
subtitle C of title VI of the Housing and Community
Development Act of 1992 and any regulations issued
under such subtitle.
(D) An owner of a covered section 8 housing project
(as such term is defined in section 659 of the Housing
and Community Development Act of 1992) may give
preference for occupancy of dwelling units in the
project, and reserve units for occupancy, in accordance
with subtitle D of title VI of the Housing and
Community Development Act of 1992.
(3) Notwithstanding any other provision of law, with the
approval of the Secretary the public housing agency
administering a contract under this section with respect to
existing housing units may exercise all management and
maintenance responsibilities with respect to those units
pursuant to a contract between such agency and the owner of
such units.
(4) A public housing agency that serves more than one unit of
general local government may, at the discretion of the agency,
in allocating assistance under this section, give priority to
disabled families that are not elderly families.
(5) Calculation of limit.--Any contract entered into
under section 514 of the Multifamily Assisted Housing
Reform and Affordability Act of 1997 shall be excluded
in computing the limit on project-based assistance
under this subsection.
(6) Treatment of common areas.--The Secretary may not provide
any assistance amounts pursuant to an existing contract for
project-based assistance under this section for a housing
project and may not enter into a new or renewal contract for
such assistance for a project unless the owner of the project
provides consent, to such local law enforcement agencies as the
Secretary determines appropriate, for law enforcement officers
of such agencies to enter common areas of the project at any
time and without advance notice upon a determination of
probable cause by such officers that criminal activity is
taking place in such areas.
(e)(1) Nothing in this Act shall be deemed to prohibit an
owner from pledging, or offering as security for any loan or
obligation, a contract for assistance payments entered into
pursuant to this section: Provided, That such security is in
connection with a project constructed or rehabilitated pursuant
to authority granted in this section, and the terms of the
financing or any refinancing have been approved by the
Secretary.
(f) As used in this section--
(1) the term ``owner'' means any private person or
entity, including a cooperative, an agency of the
Federal Government, or a public housing agency, having
the legal right to lease or sublease dwelling units;
(2) the terms ``rent'' or ``rental'' mean, with
respect to members of a cooperative, the charges under
the occupancy agreements between such members and the
cooperative;
(3) the term ``debt service'' means the required
payments for principal and interest made with respect
to a mortgage secured by housing assisted under this
Act;
(4) the term ``participating jurisdiction'' means a
State or unit of general local government designated by
the Secretary to be a participating jurisdiction under
title II of the Cranston-Gonzalez National Affordable
Housing Act;
(5) the term ``drug-related criminal activity'' means
the illegal manufacture, sale, distribution, use, or
possession with intent to manufacture, sell,
distribute, or use, of a controlled substance (as
defined in section 102 of the Controlled Substances Act
(21 U.S.C. 802));
(6) the term ``project-based assistance'' means
rental assistance under subsection (b) that is attached
to the structure pursuant to subsection (d)(2) or
(o)(13); and
(7) the term ``tenant-based assistance'' means rental
assistance under subsection (o) that is not project-
based assistance and that provides for the eligible
family to select suitable housing and to move to other
suitable housing.
(g) Notwithstanding any other provision of this Act,
assistance payments under this section may be provided, in
accordance with regulations prescribed by the Secretary, with
respect to some or all of the units in any project approved
pursuant to section 202 of the Housing Act of 1959.
(h) Sections 5(e) and 6 and any other provisions of this Act
which are inconsistent with the provisions of this section
shall not apply to contracts for assistance entered into under
this section.
(i) The Secretary may not consider the receipt by a public
housing agency of assistance under section 811(b)(1) of the
Cranston-Gonzalez National Affordable Housing Act, or the
amount received, in approving assistance for the agency under
this section or determining the amount of such assistance to be
provided.
(k) The Secretary shall establish procedures which are
appropriate and necessary to assure that income data provided
to public housing agencies and owners by families applying for
or receiving assistance under this section is complete and
accurate. In establishing such procedures, the Secretary shall
randomly, regularly, and periodically select a sample of
families to authorize the Secretary to obtain information on
these families for the purpose of income verification, or to
allow those families to provide such information themselves.
Such information may include, but is not limited to, data
concerning unemployment compensation and Federal income
taxation and data relating to benefits made available under the
Social Security Act, the Food and Nutrition Act of 2008, or
title 38, United States Code. Any such information received
pursuant to this subsection shall remain confidential and shall
be used only for the purpose of verifying incomes in order to
determine eligibility of families for benefits (and the amount
of such benefits, if any) under this section.
(o) Voucher Program.--
(1) Authority.--
(A) In general.--The Secretary may provide
assistance to public housing agencies for
tenant-based assistance using a payment
standard established in accordance with
subparagraph (B). The payment standard shall be
used to determine the monthly assistance that
may be paid for any family, as provided in
paragraph (2).
(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. The
Secretary shall allow public housing agencies
to request exception payment standards within
fair market rental areas subject to criteria
and procedures established by the Secretary.
(C) Set-aside.--The Secretary may set aside
not more than 5 percent of the budget authority
made available for assistance under this
subsection as an adjustment pool. The Secretary
shall use amounts in the adjustment pool to
make adjusted payments to public housing
agencies under subparagraph (A), to ensure
continued affordability, if the Secretary
determines that additional assistance for such
purpose is necessary, based on documentation
submitted by a public housing agency.
(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 use a payment standard that is
greater than 120 percent of the fair market
rent as a reasonable accommodation for a person
with a disability, but only with the approval
of the Secretary. In connection with the use of
any increased payment standard established or
approved pursuant to either of the preceding
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.
(2) Amount of monthly assistance payment.--Subject to
the requirement under section 3(a)(3) (relating to
minimum rental amount), the monthly assistance payment
for a family receiving assistance under this subsection
shall be determined as follows:
(A) Tenant-based assistance; rent not
exceeding payment standard.--For a family
receiving tenant-based assistance, if the rent
for the family (including the amount allowed
for tenant-paid utilities) does not exceed the
applicable payment standard established under
paragraph (1), the monthly assistance payment
for the family shall be equal to the amount by
which the rent (including the amount allowed
for tenant-paid utilities) exceeds the greatest
of the following amounts, rounded to the
nearest dollar:
(i) 30 percent of the monthly
adjusted income of the family.
(ii) 10 percent of the monthly income
of the family.
(iii) If the family is receiving
payments for welfare assistance from a
public agency and a part of those
payments, adjusted in accordance with
the actual housing costs of the family,
is specifically designated by that
agency to meet the housing costs of the
family, the portion of those payments
that is so designated.
(B) Tenant-based assistance; rent exceeding
payment standard.--For a family receiving
tenant-based assistance, if the rent for the
family (including the amount allowed for
tenant-paid utilities) exceeds the applicable
payment standard established under paragraph
(1), the monthly assistance payment for the
family shall be equal to the amount by which
the applicable payment standard exceeds the
greatest of amounts under clauses (i), (ii),
and (iii) of subparagraph (A).
(C) Families receiving project-based
assistance.--For a family receiving project-
based assistance, the rent that the family is
required to pay shall be determined in
accordance with section 3(a)(1), and the amount
of the housing assistance payment shall be
determined in accordance with subsection (c)(3)
of this section.
(D) Utility allowance.--
(i) General.--In determining the
monthly assistance payment for a family
under subparagraphs (A) and (B), the
amount allowed for tenant-paid
utilities shall not exceed the
appropriate utility allowance for the
family unit size as determined by the
public housing agency regardless of the
size of the dwelling unit leased by the
family.
(ii) Exception for families in
including persons with disabilities.--
Notwithstanding subparagraph (A), upon
request by a family that includes a
person with disabilities, the public
housing agency shall approve a utility
allowance that is higher than the
applicable amount on the utility
allowance schedule if a higher utility
allowance is needed as a reasonable
accommodation to make the program
accessible to and usable by the family
member with a disability.
(3) 40 percent limit.--At the time a family
initially receives tenant-based assistance under this
section with respect to any dwelling unit, the total
amount that a family may be required to pay for rent
may not exceed 40 percent of the monthly adjusted
income of the family.
(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--
(A) a very low-income family;
(B) a family previously assisted under this
title;
(C) a low-income family that meets
eligibility criteria specified by the public
housing agency;
(D) a family that qualifies to receive a
voucher in connection with a homeownership
program approved under title IV of the
Cranston-Gonzalez National Affordable Housing
Act; or
(E) a family that qualifies to receive a
voucher under section 223 or 226 of the Low-
Income Housing Preservation and Resident
Homeownership Act of 1990.
(5) Reviews of family income.--
(A) In general.--Reviews of family incomes
for purposes of this section shall be subject
to paragraphs (1), (6), and (7) of section 3(a)
and to section 904 of the Stewart B. McKinney
Homeless Assistance Amendments Act of 1988.
(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.
(6) Selection of families and disapproval of
owners.--
(A) Preferences.--
(i) Authority to establish.--Each
public housing agency [may] shall
establish a system for making tenant-
based assistance under this subsection
available on behalf of eligible
families that provides preference for
such assistance to eligible families
having certain characteristics, which
may include a preference for families
residing in public housing who are
victims of a crime of violence (as such
term is defined in section 16 of title
18, United States Code) that has been
reported to an appropriate law
enforcement agency.
(ii) Highest preference.--Each system
of preferences established pursuant to
this subparagraph--
(I) shall provide that the
highest preference for
assistance shall be given to
otherwise eligible children who
are in foster care, have
attained an age such that the
provision of foster care for
such child will end by reason
of the age of the child within
6 months, meet the requirements
under clauses (i) and (ii) of
paragraph (1) of the definition
of ``at risk of homelessness''
in section 91.5 of the
Secretary's regulations (24
C.F.R. 91.5), as in effect on
September 1, 2016, and have
agreed to comply with the
requirements under section
39(c); and
(II) may provide highest
preference for assistance to,
in addition to eligible
children described in subclause
(I), not more than two other
types of eligible families.
[(ii)] (iii) Content.--[Each system]
Except as provided in clause (ii)(I),
each system of preferences established
pursuant to this subparagraph shall be
based upon local housing needs and
priorities, as determined by the public
housing agency using generally accepted
data sources, including any information
obtained pursuant to an opportunity for
public comment as provided under
section 5A(f) and under the
requirements applicable to the
comprehensive housing affordability
strategy for the relevant jurisdiction.
(B) Selection of tenants.--Each housing
assistance payment contract entered into by the
public housing agency and the owner of a
dwelling unit) shall provide that the screening
and selection of families for those units shall
be the function of the owner. In addition, the
public housing agency may elect to screen
applicants for the program in accordance with
such requirements as the Secretary may
establish.
(C) PHA disapproval of owners.--In addition
to other grounds authorized by the Secretary, a
public housing agency may elect not to enter
into a housing assistance payments contract
under this subsection with an owner who
refuses, or has a history of refusing, to take
action to terminate tenancy for activity
engaged in by the tenant, any member of the
tenant's household, any guest, or any other
person under the control of any member of the
household that--
(i) threatens the health or safety
of, or right to peaceful enjoyment of
the premises by, other tenants or
employees of the public housing agency,
owner, or other manager of the housing;
(ii) threatens the health or safety
of, or right to peaceful enjoyment of
the residences by, persons residing in
the immediate vicinity of the premises;
or
(iii) is drug-related or violent
criminal activity.
(7) Leases and tenancy.--Each housing assistance
payment contract entered into by the public housing
agency and the owner of a dwelling unit--
(A) shall provide that the lease between the
tenant and the owner shall be for a term of not
less than 1 year, except that the public
housing agency may approve a shorter term for
an initial lease between the tenant and the
dwelling unit owner if the public housing
agency determines that such shorter term would
improve housing opportunities for the tenant
and if such shorter term is considered to be a
prevailing local market practice;
(B) shall provide that the dwelling unit
owner shall offer leases to tenants assisted
under this subsection that--
(i) are in a standard form used in
the locality by the dwelling unit
owner; and
(ii) contain terms and conditions
that--
(I) are consistent with State
and local law; and
(II) apply generally to
tenants in the property who are
not assisted under this
section;
(C) shall provide that during the term of the
lease, the owner shall not terminate the
tenancy except for serious or repeated
violation of the terms and conditions of the
lease, for violation of applicable Federal,
State, or local law, or for other good cause,
and in the case of an owner who is an immediate
successor in interest pursuant to foreclosure
during the term of the lease vacating the
property prior to sale shall not constitute
other good cause, except that the owner may
terminate the tenancy effective on the date of
transfer of the unit to the owner if the
owner--
(i) will occupy the unit as a primary
residence; and
(ii) has provided the tenant a notice
to vacate at least 90 days before the
effective date of such notice.;
(D) shall provide that during the term of the
lease, any criminal activity that threatens the
health, safety, or right to peaceful enjoyment
of the premises by other tenants, any criminal
activity that threatens the health, safety, or
right to peaceful enjoyment of their residences
by persons residing in the immediate vicinity
of the premises, or any violent or drug-related
criminal activity on or near such premises,
engaged in by a tenant of any unit, any member
of the tenant's household, or any guest or
other person under the tenant's control, shall
be cause for termination of tenancy;
(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 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, except
that this provision and the provisions related
to foreclosure in subparagraph (C) shall not
shall not affect any State or local law that
provides longer time periods or other
additional protections for tenants.
(8) Inspection of units by pha's.--
(A) Initial inspection.--
(i) In general.--For each dwelling
unit for which a housing assistance
payment contract is established under
this subsection, the public housing
agency (or other entity pursuant to
paragraph (11)) shall inspect the unit
before any assistance payment is made
to determine whether the dwelling unit
meets the housing quality standards
under subparagraph (B), except as
provided in clause (ii) or (iii) of
this subparagraph.
(ii) Correction of non-life-
threatening conditions.--In the case of
any dwelling unit that is determined,
pursuant to an inspection under clause
(i), not to meet the housing quality
standards under subparagraph (B),
assistance payments may be made for the
unit notwithstanding subparagraph (C)
if failure to meet such standards is a
result only of non-life-threatening
conditions, as such conditions are
established by the Secretary. A public
housing agency making assistance
payments pursuant to this clause for a
dwelling unit shall, 30 days after the
beginning of the period for which such
payments are made, withhold any
assistance payments for the unit if any
deficiency resulting in noncompliance
with the housing quality standards has
not been corrected by such time. The
public housing agency shall recommence
assistance payments when such
deficiency has been corrected, and may
use any payments withheld to make
assistance payments relating to the
period during which payments were
withheld.
(iii) Use of alternative inspection
method for interim period.--In the case
of any property that within the
previous 24 months has met the
requirements of an inspection that
qualifies as an alternative inspection
method pursuant to subparagraph (E), a
public housing agency may authorize
occupancy before the inspection under
clause (i) has been completed, and may
make assistance payments retroactive to
the beginning of the lease term after
the unit has been determined pursuant
to an inspection under clause (i) to
meet the housing quality standards
under subparagraph (B). This clause may
not be construed to exempt any dwelling
unit from compliance with the
requirements of subparagraph (D).
(B) Housing quality standards.--The housing
quality standards under this subparagraph are
standards for safe and habitable housing
established--
(i) by the Secretary for purposes of
this subsection; or
(ii) by local housing codes or by
codes adopted by public housing
agencies that--
(I) meet or exceed housing
quality standards, except that
the Secretary may waive the
requirement under this
subclause to significantly
increase access to affordable
housing and to expand housing
opportunities for families
assisted under this subsection,
except where such waiver could
adversely affect the health or
safety of families assisted
under this subsection; and
(II) do not severely restrict
housing choice
(C) Inspection.--The determination required
under subparagraph (A) shall be made by the
public housing agency (or other entity, as
provided in paragraph (11)) pursuant to an
inspection of the dwelling unit conducted
before any assistance payment is made for the
unit. Inspections of dwelling units under this
subparagraph shall be made before the
expiration of the 15-day period beginning upon
a request by the resident or landlord to the
public housing agency or, in the case of any
public housing agency that provides assistance
under this subsection on behalf of more than
1250 families, before the expiration of a
reasonable period beginning upon such request.
The performance of the agency in meeting the
15-day inspection deadline shall be taken into
consideration in assessing the performance of
the agency.
(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 requirements 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 public housing
agency (or other entity) shall retain
the records of the inspection for a
reasonable time, as determined by the
Secretary, 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).
(iv) Mixed-finance properties.--The
Secretary may adjust the frequency of
inspections for mixed-finance
properties assisted with vouchers under
paragraph (13) to facilitate the use of
the alternative inspections in
subparagraph (E).
(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
program (including the Home investment
partnership program under title II of
the Cranston-Gonzalez National
Affordable Housing Act 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
properties assisted under such program,
and, if a non-Federal standard or
requirement was used, the public
housing agency has certified to the
Secretary that such standard or
requirement provides the same (or
greater) protection to occupants of
dwelling units meeting such standard or
requirement as would 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 public housing agency
shall inspect the dwelling unit--
(i) in the case of any condition that
is life-threatening, within 24 hours
after the agency's receipt of such
notification, unless waived by the
Secretary in extraordinary
circumstances; and
(ii) in the case of any condition
that is not life-threatening, within a
reasonable time frame, as determined by
the Secretary.
(G) Enforcement of housing quality
standards.--
(i) Determination of noncompliance.--
A dwelling unit that is covered by a
housing assistance payments contract
under this subsection shall be
considered, for purposes of
subparagraphs (D) and (F), to be in
noncompliance with the housing quality
standards under subparagraph (B) if--
(I) the public housing agency
or an inspector authorized by
the State or unit of local
government determines upon
inspection of the unit that the
unit fails to comply with such
standards;
(II) the agency or inspector
notifies the owner of the unit
in writing of such failure to
comply; and
(III) the failure to comply
is not corrected--
(aa) in the case of
any such failure that
is a result of life-
threatening conditions,
within 24 hours after
such notice has been
provided; and
(bb) in the case of
any such failure that
is a result of non-
life-threatening
conditions, within 30
days after such notice
has been provided or
such other reasonable
longer period as the
public housing agency
may establish.
(ii) Withholding of assistance
amounts during correction.--The public
housing agency may withhold assistance
amounts under this subsection with
respect to a dwelling unit for which a
notice pursuant to clause (i)(II), of
failure to comply with housing quality
standards under subparagraph (B) as
determined pursuant to an inspection
conducted under subparagraph (D) or
(F), has been provided. If the unit is
brought into compliance with such
housing quality standards during the
periods referred to in clause (i)(III),
the public housing agency shall
recommence assistance payments and may
use any amounts withheld during the
correction period to make assistance
payments relating to the period during
which payments were withheld.
(iii) Abatement of assistance
amounts.--The public housing agency
shall abate all of the assistance
amounts under this subsection with
respect to a dwelling unit that is
determined, pursuant to clause (i) of
this subparagraph, to be in
noncompliance with housing quality
standards under subparagraph (B). Upon
completion of repairs by the public
housing agency or the owner sufficient
so that the dwelling unit complies with
such housing quality standards, the
agency shall recommence payments under
the housing assistance payments
contract to the owner of the dwelling
unit.
(iv) Notification.--If a public
housing agency providing assistance
under this subsection abates rental
assistance payments pursuant to clause
(iii) with respect to a dwelling unit,
the agency shall, upon commencement of
such abatement--
(I) notify the tenant and the
owner of the dwelling unit
that--
(aa) such abatement
has commenced; and
(bb) if the dwelling
unit is not brought
into compliance with
housing quality
standards within 60
days after the
effective date of the
determination of
noncompliance under
clause (i) or such
reasonable longer
period as the agency
may establish, the
tenant will have to
move; and
(II) issue the tenant the
necessary forms to allow the
tenant to move to another
dwelling unit and transfer the
rental assistance to that unit.
(v) Protection of tenants.--An owner
of a dwelling unit may not terminate
the tenancy of any tenant because of
the withholding or abatement of
assistance pursuant to this
subparagraph. During the period that
assistance is abated pursuant to this
subparagraph, the tenant may terminate
the tenancy by notifying the owner.
(vi) Termination of lease or
assistance payments contract.--If
assistance amounts under this section
for a dwelling unit are abated pursuant
to clause (iii) and the owner does not
correct the noncompliance within 60
days after the effective date of the
determination of noncompliance under
clause (i), or such other reasonable
longer period as the public housing
agency may establish, the agency shall
terminate the housing assistance
payments contract for the dwelling
unit.
(vii) Relocation.--
(I) Lease of new unit.--The
agency shall provide the family
residing in such a dwelling
unit a period of 90 days or
such longer period as the
public housing agency
determines is reasonably
necessary to lease a new unit,
beginning upon termination of
the contract, to lease a new
residence with tenant-based
rental assistance under this
section.
(II) Availability of public
housing units.--If the family
is unable to lease such a new
residence during such period,
the public housing agency
shall, at the option of the
family, provide such family a
preference for occupancy in a
dwelling unit of public housing
that is owned or operated by
the agency that first becomes
available for occupancy after
the expiration of such period.
(III) Assistance in finding
unit.--The public housing
agency may provide assistance
to the family in finding a new
residence, including use of up
to two months of any assistance
amounts withheld or abated
pursuant to clause (ii) or
(iii), respectively, for costs
directly associated with
relocation of the family to a
new residence, which shall
include security deposits as
necessary and may include
reimbursements for reasonable
moving expenses incurred by the
household, as established by
the Secretary. The agency may
require that a family receiving
assistance for a security
deposit shall remit, to the
extent of such assistance, the
amount of any security deposit
refunds made by the owner of
the dwelling unit for which the
lease was terminated.
(viii) Tenant-caused damages.--If a
public housing agency determines that
any damage to a dwelling unit that
results in a failure of the dwelling
unit to comply with housing quality
standards under subparagraph (B), other
than any damage resulting from ordinary
use, was caused by the tenant, any
member of the tenant's household, or
any guest or other person under the
tenant's control, the agency may waive
the applicability of this subparagraph,
except that this clause shall not
exonerate a tenant from any liability
otherwise existing under applicable law
for damages to the premises caused by
such tenant.
(ix) Applicability.--This
subparagraph shall apply to any
dwelling unit for which a housing
assistance payments contract is entered
into or renewed after the date of the
effectiveness of the regulations
implementing this subparagraph.
(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.
(9) Vacated units.--If an assisted family vacates a
dwelling unit for which rental assistance is provided
under a housing assistance payment contract before the
expiration of the term of the lease for the unit,
rental assistance pursuant to such contract may not be
provided for the unit after the month during which the
unit was vacated.
(10) Rent.--
(A) Reasonableness.--The rent for dwelling
units for which a housing assistance payment
contract is established under this subsection
shall be reasonable in comparison with rents
charged for comparable dwelling units in the
private, unassisted local market.
(B) Negotiations.--A public housing agency
(or other entity, as provided in paragraph
(11)) shall, at the request of a family
receiving tenant-based assistance under this
subsection, assist that family in negotiating a
reasonable rent with a dwelling unit owner. A
public housing agency (or such other entity)
shall review the rent for a unit under
consideration by the family (and all rent
increases for units under lease by the family)
to determine whether the rent (or rent
increase) requested by the owner is reasonable.
If a public housing agency (or other such
entity) determines that the rent (or rent
increase) for a dwelling unit is not
reasonable, the public housing agency (or other
such entity) shall not make housing assistance
payments to the owner under this subsection
with respect to that unit.
(C) Units exempt from local rent control.--If
a dwelling unit for which a housing assistance
payment contract is established under this
subsection is exempt from local rent control
provisions during the term of that contract,
the rent for that unit shall be reasonable in
comparison with other units in the market area
that are exempt from local rent control
provisions.
(D) Timely payments.--Each public housing
agency shall make timely payment of any amounts
due to a dwelling unit owner under this
subsection. The housing assistance payment
contract between the owner and the public
housing agency may provide for penalties for
the late payment of amounts due under the
contract, which shall be imposed on the public
housing agency in accordance with generally
accepted practices in the local housing market.
(E) Penalties.--Unless otherwise authorized
by the Secretary, each public housing agency
shall pay any penalties from administrative
fees collected by the public housing agency,
except that no penalty shall be imposed if the
late payment is due to factors that the
Secretary determines are beyond the control of
the public housing agency.
(F) Tax credit projects.--In the case of a
dwelling unit receiving tax credits pursuant to
section 42 of the Internal Revenue Code of 1986
or for which assistance is provided under
subtitle A of title II of the Cranston Gonzalez
National Affordable Housing Act of 1990, for
which a housing assistance contract not subject
to paragraph (13) of this subsection is
established, rent reasonableness shall be
determined as otherwise provided by this
paragraph, except that--
(i) comparison with rent for units in
the private, unassisted local market
shall not be required if the rent is
equal to or less than the rent for
other comparable units receiving such
tax credits or assistance in the
project that are not occupied by
families assisted with tenant-based
assistance under this subsection; and
(ii) the rent shall not be considered
reasonable for purposes of this
paragraph if it exceeds the greater
of--
(I) the rents charged for
other comparable units
receiving such tax credits or
assistance in the project that
are not occupied by families
assisted with tenant-based
assistance under this
subsection; and
(II) the payment standard
established by the public
housing agency for a unit of
the size involved.
(11) Leasing of units owned by pha.--
(A) Inspections and rent determinations.--If
an eligible family assisted under this
subsection leases a dwelling unit (other than a
public housing dwelling unit) that is owned by
a public housing agency administering
assistance under this subsection, the Secretary
shall require the unit of general local
government or another entity approved by the
Secretary, to make inspections required under
paragraph (8) and rent determinations required
under paragraph (10). The agency shall be
responsible for any expenses of such
inspections and determinations.
(B) Units owned by pha.--For purposes of this
subsection, the term ``owned by a public
housing agency'' means, with respect to a
dwelling unit, that the dwelling unit is in a
project that is owned by such agency, by an
entity wholly controlled by such agency, or by
a limited liability company or limited
partnership in which such agency (or an entity
wholly controlled by such agency) holds a
controlling interest in the managing member or
general partner. A dwelling unit shall not be
deemed to be owned by a public housing agency
for purposes of this subsection because the
agency holds a fee interest as ground lessor in
the property on which the unit is situated,
holds a security interest under a mortgage or
deed of trust on the unit, or holds a non-
controlling interest in an entity which owns
the unit or in the managing member or general
partner of an entity which owns the unit.
(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 residenceand 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, 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) 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) In general.--A public housing agency may
use amounts provided under an annual
contributions contract under this subsection to
enter into a housing assistance payment
contract with respect to an existing, newly
constructed, or rehabilitated project, that is
attached to the project, subject to the
limitations and requirements of this paragraph.
(B) Percentage limitation.--
(i) In general.--Subject to clause
(ii), a public housing agency may use
for project-based assistance under this
paragraph not more than 20 percent of
the authorized units for the agency.
(ii) Exception.--A public housing
agency may use up to an additional 10
percent of the authorized units for the
agency for project-based assistance
under this paragraph, to provide units
that house individuals and families
that meet the definition of homeless
under section 103 of the McKinney-Vento
Homeless Assistance Act (42 U.S.C.
11302), that house families with
veterans, that provide supportive
housing to persons with disabilities or
elderly persons, that house eligible
children described in section
6(c)(4)(A)(iii) who comply with the
requirements under section 39(c), or
that are located in areas where
vouchers under this subsection are
difficult to use, as specified in
subparagraph (D)(ii)(II). Any units of
project-based assistance that are
attached to units previously subject to
federally required rent restrictions or
receiving another type of long-term
housing subsidy provided by the
Secretary shall not count toward the
percentage limitation under clause (i)
of this subparagraph. The Secretary
may, by regulation, establish
additional categories for the exception
under this clause.
(C) Consistency with pha plan and other
goals.--A public housing agency may approve a
housing assistance payment contract pursuant to
this paragraph only if the contract is
consistent with--
(i) the public housing agency plan
for the agency approved under section
5A; and
(ii) the goal of deconcentrating
poverty and expanding housing and
economic opportunities.
(D) Income-mixing requirement.--
(i) In general.--Except as provided
in clause (ii), not more than the
greater of 25 dwelling units or 25
percent of the dwelling units in any
project may be assisted under a housing
assistance payment contract for
project-based assistance pursuant to
this paragraph. For purposes of this
subparagraph, the term ``project''
means a single building, multiple
contiguous buildings, or multiple
buildings on contiguous parcels of
land.
(ii) Exceptions.--
(I) Certain families.--The
limitation under clause (i)
shall not apply to dwelling
units assisted under a contract
that are exclusively made
available to elderly families,
to eligible children described
in section 6(c)(4)(A)(iii), or
to households eligible for
supportive services that are
made available to the assisted
residents of the project,
according to standards for such
services the Secretary may
establish.
(II) Certain areas.--With
respect to areas in which
tenant-based vouchers for
assistance under this
subsection are difficult to
use, as determined by the
Secretary, and with respect to
census tracts with a poverty
rate of 20 percent or less,
clause (i) shall be applied by
substituting ``40 percent'' for
``25 percent'', and the
Secretary may, by regulation,
establish additional
conditions.
(III) Certain contracts.--The
limitation under clause (i)
shall not apply with respect to
contracts or renewal of
contracts under which a greater
percentage of the dwelling
units in a project were
assisted under a housing
assistance payment contract for
project-based assistance
pursuant to this paragraph on
the date of the enactment of
the Housing Opportunity Through
Modernization Act of 2016.
(IV) Certain properties.--Any
units of project-based
assistance under this paragraph
that are attached to units
previously subject to federally
required rent restrictions or
receiving other project-based
assistance provided by the
Secretary shall not count
toward the percentage
limitation imposed by this
subparagraph (D).
(iii) Additional monitoring and
oversight requirements.--The Secretary
may establish additional requirements
for monitoring and oversight of
projects in which more than 40 percent
of the dwelling units are assisted
under a housing assistance payment
contract for project-based assistance
pursuant to this paragraph.
(E) Resident choice requirement.--A housing
assistance payment contract pursuant to this
paragraph shall provide as follows:
(i) Mobility.--Each low-income family
occupying a dwelling unit assisted
under the contract may move from the
housing at any time after the family
has occupied the dwelling unit for 12
months.
(ii) Continued assistance.--Upon such
a move, the public housing agency shall
provide the low-income family with
tenant-based rental assistance under
this section or such other tenant-based
rental assistance that is subject to
comparable income, assistance, rent
contribution, affordability, and other
requirements, as the Secretary shall
provide by regulation. If such rental
assistance is not immediately available
to fulfill the requirement under the
preceding sentence with respect to a
low-income family, such requirement may
be met by providing the family priority
to receive the next voucher or other
tenant-based rental assistance amounts
that become available under the program
used to fulfill such requirement.
(F) Contract term.--
(i) Term.--A housing assistance
payment contract pursuant to this
paragraph between a public housing
agency and the owner of a project may
have a term of up to 20 years, subject
to--
(I) the availability of
sufficient appropriated funds
for the purpose of renewing
expiring contracts for
assistance payments, as
provided in appropriation Acts
and in the agency's annual
contributions contract with the
Secretary, provided that in the
event of insufficient
appropriated funds, payments
due under contracts under this
paragraph shall take priority
if other cost-saving measures
that do not require the
termination of an existing
contract are available to the
agency; and
(II) compliance with the
inspection requirements under
paragraph (8), except that the
agency shall not be required to
make biennial inspections of
each assisted unit in the
development.
(ii) Addition of eligible units.--
Subject to the limitations of
subparagraphs (B) and (D), the agency
and the owner may add eligible units
within the same project to a housing
assistance payments contract at any
time during the term thereof without
being subject to any additional
competitive selection procedures.
(iii) Housing under construction or
recently constructed.--An agency may
enter into a housing assistance
payments contract with an owner for any
unit that does not qualify as existing
housing and is under construction or
recently has been constructed whether
or not the agency has executed an
agreement to enter into a contract with
the owner, provided that the owner
demonstrates compliance with applicable
requirements prior to execution of the
housing assistance payments contract.
This clause shall not subject a housing
assistance payments contract for
existing housing under this paragraph
to such requirements or otherwise limit
the extent to which a unit may be
assisted as existing housing.
(iv) Additional conditions.--The
contract may specify additional
conditions, including with respect to
continuation, termination, or
expiration, and shall specify that upon
termination or expiration of the
contract without extension, each
assisted family may elect to use its
assistance under this subsection to
remain in the same project if its unit
complies with the inspection
requirements under paragraph (8), the
rent for the unit is reasonable as
required by paragraph (10)(A), and the
family pays its required share of the
rent and the amount, if any, by which
the unit rent (including the amount
allowed for tenant-based utilities)
exceeds the applicable payment
standard.
(G) Extension of contract term.--A public
housing agency may enter into a contract with
the owner of a project assisted under a housing
assistance payment contract pursuant to this
paragraph to extend the term of the underlying
housing assistance payment contract for such
period as the agency determines to be
appropriate to achieve long-term affordability
of the housing or to expand housing
opportunities. Such contract may, at the
election of the public housing agency and the
owner of the project, specify that such
contract shall be extended for renewal terms of
up to 20 years each, if the agency makes the
determination required by this subparagraph and
the owner is in compliance with the terms of
the contract. Such a contract shall provide
that the extension of such term shall be
contingent upon the future availability of
appropriated funds for the purpose of renewing
expiring contracts for assistance payments, as
provided in appropriations Acts, and may
obligate the owner to have such extensions of
the underlying housing assistance payment
contract accepted by the owner and the
successors in interest of the owner. A public
housing agency may agree to enter into such a
contract at the time it enters into the initial
agreement for a housing assistance payment
contract or at any time thereafter that is
before the expiration of the housing assistance
payment contract.
(H) Rent calculation.--A housing assistance
payment contract pursuant to this paragraph
shall establish rents for each unit assisted in
an amount that does not exceed 110 percent of
the applicable fair market rental (or any
exception payment standard approved by the
Secretary pursuant to paragraph (1)(D)), except
that if a contract covers a dwelling unit that
has been allocated low-income housing tax
credits pursuant to section 42 of the Internal
Revenue Code of 1986 (26 U.S.C. 42) and is not
located in a qualified census tract (as such
term is defined in subsection (d) of such
section 42), the rent for such unit may be
established at any level that does not exceed
the rent charged for comparable units in the
building that also receive the low-income
housing tax credit but do not have additional
rental assistance, except that in the case of a
contract unit that has been allocated low-
income housing tax credits and for which the
rent limitation pursuant to such section 42 is
less than the amount that would otherwise be
permitted under this subparagraph, the rent for
such unit may, in the sole discretion of a
public housing agency, be established at the
higher section 8 rent, subject only to
paragraph (10)(A). The rents established by
housing assistance payment contracts pursuant
to this paragraph may vary from the payment
standards established by the public housing
agency pursuant to paragraph (1)(B), but shall
be subject to paragraph (10)(A).
(I) Rent adjustments.--A housing assistance
payments contract pursuant to this paragraph
entered into after the date of the enactment of
the Housing Opportunity Through Modernization
Act of 2016 shall provide for annual rent
adjustments upon the request of the owner,
except that--
(i) by agreement of the parties, a
contract may allow a public housing
agency to adjust the rent for covered
units using an operating cost
adjustment factor established by the
Secretary pursuant to section 524(c) of
the Multifamily Assisted Housing Reform
and Affordability Act of 1997 (which
shall not result in a negative
adjustment), in which case the contract
may require an additional adjustment,
if requested, up to the reasonable rent
periodically during the term of the
contract, and shall require such an
adjustment, if requested, upon
extension pursuant to subparagraph (G);
(ii) the adjusted rent shall not
exceed the maximum rent permitted under
subparagraph (H);
(iii) the contract may provide that
the maximum rent permitted for a
dwelling unit shall not be less than
the initial rent for the dwelling unit
under the initial housing assistance
payments contract covering the units;
and
(iv) the provisions of subsection
(c)(2)(C) shall not apply.
[(J) Tenant selection.--A public]
(J) Tenant selection._
(i) Selection and eligibility._A
public housing agency may select
families to receive project-based
assistance pursuant to this paragraph
from its waiting list for assistance
under this subsection or may permit
owners to select applicants from site-
based waiting lists as specified in
this subparagraph. Eligibility for such
project-based assistance shall be
subject to the provisions of section
16(b) that apply to tenant-based
assistance. [The agency or owner may
establish preferences or criteria for
selection for a unit assisted under
this paragraph that]
(ii) Preferences for occupancy._The
agency or owner shall establish a
system of preferences or criteria for
selection for a unit assisted under
this section that--
(I) shall provide that the
highest preference shall be
given to otherwise eligible
children who are in foster
care, have attained an age such
that the provision of foster
care for such child will end by
reason of the age of the child
within 6 months, meet the
requirements under clauses (i)
and (ii) of paragraph (1) of
the definition of ``at risk of
homelessness'' in section 91.5
of the Secretary's regulations
(24 C.F.R. 91.5), as in effect
on September 1, 2016, and have
agreed to comply with the
requirements under section
39(c); and
(II) may provide highest
preference to, in addition to
eligible children described in
subclause (I), not more than
two other types of eligible
families; and
(III) except as provided
under subclause (I), are
consistent with the public
housing agency plan for the
agency approved under section
5A and that give preference to
families who qualify for
voluntary services, including
disability-specific services,
offered in conjunction with
assisted units. [Any family
that]
(iii) Waiting lists._Any family that
rejects an offer of project-based
assistance under this paragraph or that
is rejected for admission to a project
by the owner or manager of a project
assisted under this paragraph shall
retain its place on the waiting list as
if the offer had not been made. A
public housing agency may establish and
utilize procedures for owner-maintained
site-based waiting lists, under which
applicants may apply at, or otherwise
designate to the public housing agency,
the project or projects in which they
seek to reside, except that all
eligible applicants on the waiting list
of an agency for assistance under this
subsection shall be permitted to place
their names on such separate list,
subject to policies and procedures
established by the Secretary. All such
procedures shall comply with title VI
of the Civil Rights Act of 1964, the
Fair Housing Act, section 504 of the
Rehabilitation Act of 1973, and other
applicable civil rights laws. The owner
or manager of a project assisted under
this paragraph shall not admit any
family to a dwelling unit assisted
under a contract pursuant to this
paragraph other than a family referred
by the public housing agency from its
waiting list, or a family on a site-
based waiting list that complies with
the requirements of this subparagraph.
A public housing agency shall disclose
to each applicant all other options in
the selection of a project in which to
reside that are provided by the public
housing agency and are available to the
applicant.
(K) Vacated units.--Notwithstanding paragraph
(9), a housing assistance payment contract
pursuant to this paragraph may provide as
follows:
(i) Payment for vacant units.--That
the public housing agency may, in its
discretion, continue to provide
assistance under the contract, for a
reasonable period not exceeding 60
days, for a dwelling unit that becomes
vacant, but only: (I) if the vacancy
was not the fault of the owner of the
dwelling unit; and (II) the agency and
the owner take every reasonable action
to minimize the likelihood and extent
of any such vacancy. Rental assistance
may not be provided for a vacant unit
after the expiration of such period.
(ii) Reduction of contract.--That, if
despite reasonable efforts of the
agency and the owner to fill a vacant
unit, no eligible family has agreed to
rent the unit within 120 days after the
owner has notified the agency of the
vacancy, the agency may reduce its
housing assistance payments contract
with the owner by the amount equivalent
to the remaining months of subsidy
attributable to the vacant unit.
Amounts deobligated pursuant to such a
contract provision shall be available
to the agency to provide assistance
under this subsection.
Eligible applicants for assistance under this
subsection may enforce provisions authorized by
this subparagraph.
(L) Use in cooperative housing and elevator
buildings.--A public housing agency may enter
into a housing assistance payments contract
under this paragraph with respect to--
(i) dwelling units in cooperative
housing; and
(ii) notwithstanding subsection (c),
dwelling units in a high-rise elevator
project, including such a project that
is occupied by families with children,
without review and approval of the
contract by the Secretary.
(M) Reviews.--
(i) Subsidy layering.--A subsidy
layering review in accordance with
section 102(d) of the Department of
Housing and Urban Development Reform
Act of 1989 (42 U.S.C. 3545(d)) shall
not be required for assistance under
this paragraph in the case of a housing
assistance payments contract for an
existing project, or if a subsidy
layering review has been conducted by
the applicable State or local agency.
(ii) Environmental review.--A public
housing agency shall not be required to
undertake any environmental review
before entering into a housing
assistance payments contract under this
paragraph for an existing project,
except to the extent such a review is
otherwise required by law or regulation
relating to funding other than housing
assistance payments.
(N) Structure owned by agency.--A public
housing agency engaged in an initiative to
improve, develop, or replace a public housing
property or site may attach assistance to an
existing, newly constructed, or rehabilitated
structure in which the agency has an ownership
interest or which the agency has control of
without following a competitive process,
provided that the agency has notified the
public of its intent through its public housing
agency plan and subject to the limitations and
requirements of this paragraph.
(O) Special purpose vouchers.--A public
housing agency that administers vouchers
authorized under subsection (o)(19) or (x) of
this section may provide such assistance in
accordance with the limitations and
requirements of this paragraph, without
additional requirements for approval by the
Secretary.
(14) Inapplicability to tenant-based assistance.--
Subsection (c) shall not apply to tenant-based
assistance under this subsection.
(15) Homeownership option.--
(A) In general.--A public housing agency
providing assistance under this subsection may,
at the option of the agency, provide assistance
for homeownership under subsection (y).
(B) Alternative administration.--A public
housing agency may contract with a nonprofit
organization to administer a homeownership
program under subsection (y).
(16) Rental vouchers for relocation of witnesses and
victims of crime.--
(A) Witnesses.--Of amounts made available for
assistance under this subsection in each fiscal
year, the Secretary, in consultation with the
Inspector General, shall make available such
sums as may be necessary for the relocation of
witnesses in connection with efforts to combat
crime in public and assisted housing pursuant
to requests from law enforcement or prosecution
agencies.
(B) Victims of crime.--
(i) In general.--Of amounts made
available for assistance under this
section in each fiscal year, the
Secretary shall make available such
sums as may be necessary for the
relocation of families residing in
public housing who are victims of a
crime of violence (as that term is
defined in section 16 of title 18,
United States Code) that has been
reported to an appropriate law
enforcement agency.
(ii) Notice.--A public housing agency
that receives amounts under this
subparagraph shall establish procedures
for providing notice of the
availability of that assistance to
families that may be eligible for that
assistance.
(17) Deed restrictions.--Assistance under this
subsection may not be used in any manner that abrogates
any local deed restriction that applies to any housing
consisting of 1 to 4 dwelling units. This paragraph may
not be construed to affect the provisions or
applicability of the Fair Housing Act.
(18) Rental assistance for assisted living
facilities.--
(A) In general.--A public housing agency may
make assistance payments on behalf of a family
that uses an assisted living facility as a
principal place of residence and that uses such
supportive services made available in the
facility as the agency may require. Such
payments may be made only for covering costs of
rental of the dwelling unit in the assisted
living facility and not for covering any
portion of the cost of residing in such
facility that is attributable to service
relating to assisted living.
(B) Rent calculation.--
(i) Charges included.--For assistance
pursuant to this paragraph, the rent of
the dwelling unit that is an assisted
living facility with respect to which
assistance payments are made shall
include maintenance and management
charges related to the dwelling unit
and tenant-paid utilities. Such rent
shall not include any charges
attributable to services relating to
assisted living.
(ii) Payment standard.--In
determining the monthly assistance that
may be paid under this paragraph on
behalf of any family residing in an
assisted living facility, the public
housing agency shall utilize the
payment standard established under
paragraph (1), for the market area in
which the assisted living facility is
located, for the applicable size
dwelling unit.
(iii) Monthly assistance payment.--
The monthly assistance payment for a
family assisted under this paragraph
shall be determined in accordance with
paragraph (2) (using the rent and
payment standard for the dwelling unit
as determined in accordance with this
subsection), except that a family may
be required at the time the family
initially receives such assistance to
pay rent in an amount exceeding 40
percent of the monthly adjusted income
of the family by such an amount or
percentage that is reasonable given the
services and amenities provided and as
the Secretary deems appropriate..
(C) Definition.--For the purposes of this
paragraph, the term ``assisted living
facility'' has the meaning given that term in
section 232(b) of the National Housing Act (12
U.S.C. 1715w(b)), except that such a facility
may be contained within a portion of a larger
multifamily housing project.
(19) Rental vouchers for veterans affairs supported
housing program.--
(A) Set aside.--Subject to subparagraph (C),
the Secretary shall set aside, from amounts
made available for rental assistance under this
subsection, the amounts specified in
subparagraph (B) for use only for providing
such assistance through a supported housing
program administered in conjunction with the
Department of Veterans Affairs. Such program
shall provide rental assistance on behalf of
homeless veterans who have chronic mental
illnesses or chronic substance use disorders,
shall require agreement of the veteran to
continued treatment for such mental illness or
substance use disorder as a condition of
receipt of such rental assistance, and shall
ensure such treatment and appropriate case
management for each veteran receiving such
rental assistance.
(B) Amount.--The amount specified in this
subparagraph is--
(i) for fiscal year 2007, the amount
necessary to provide 500 vouchers for
rental assistance under this
subsection;
(ii) for fiscal year 2008, the amount
necessary to provide 1,000 vouchers for
rental assistance under this
subsection;
(iii) for fiscal year 2009, the
amount necessary to provide 1,500
vouchers for rental assistance under
this subsection;
(iv) for fiscal year 2010, the amount
necessary to provide 2,000 vouchers for
rental assistance under this
subsection; and
(v) for fiscal year 2011, the amount
necessary to provide 2,500 vouchers for
rental assistance under this
subsection.
(C) Funding through incremental assistance.--
In any fiscal year, to the extent that this
paragraph requires the Secretary to set aside
rental assistance amounts for use under this
paragraph in an amount that exceeds the amount
set aside in the preceding fiscal year, such
requirement shall be effective only to such
extent or in such amounts as are or have been
provided in appropriation Acts for such fiscal
year for incremental rental assistance under
this subsection.
(20) Collection of utility data.--
(A) Publication.--The Secretary shall, to the
extent that data can be collected cost
effectively, regularly publish such data
regarding utility consumption and costs in
local areas as the Secretary determines will be
useful for the establishment of allowances for
tenant-paid utilities for families assisted
under this subsection.
(B) Use of data.--The Secretary shall provide
such data in a manner that--
(i) avoids unnecessary administrative
burdens for public housing agencies and
owners; and
(ii) protects families in various
unit sizes and building types, and
using various utilities, from high rent
and utility cost burdens relative to
income.
(p) In order to assist elderly families (as defined in
section 3(b)(3)) who elect to live in a shared housing
arrangement in which they benefit as a result of sharing the
facilities of a dwelling with others in a manner that
effectively and efficiently meets their housing needs and
thereby reduces their costs of housing, the Secretary shall
permit assistance provided under the existing housing and
moderate rehabilitation programs to be used by such families in
such arrangements. In carrying out this subsection, the
Secretary shall issue minimum habitability standards for the
purpose of assuring decent, safe, and sanitary housing for such
families while taking into account the special circumstances of
shared housing.
(q) Administrative Fees.--
(1) Fee for ongoing costs of administration.--
(A) In general.--The Secretary shall
establish fees for the costs of administering
the tenant-based assistance, certificate,
voucher, and moderate rehabilitation programs
under this section.
(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.
(D) Increase.--The Secretary may increase the
fee if necessary to reflect the higher costs of
administering small programs and programs
operating over large geographic areas.
(E) Decrease.--The Secretary may decrease the
fee for units owned by a public housing agency
to reflect reasonable costs of administration.
(2) Fee for preliminary expenses.--The Secretary
shall also establish reasonable fees (as determined by
the Secretary) for--
(A) the costs of preliminary expenses, in the
amount of $500, for a public housing agency,
except that such fee shall apply to an agency
only in the first year that the agency
administers a tenant-based assistance program
under this section, and only if, immediately
before the effective date under section 503(a)
of the Quality Housing and Work Responsibility
Act of 1998, the agency was not administering a
tenant-based assistance program under the
United States Housing Act of 1937 (as in effect
immediately before such effective date), in
connection with its initial increment of
assistance received;
(B) the costs incurred in assisting families
who experience difficulty (as determined by the
Secretary) in obtaining appropriate housing
under the programs; and
(C) extraordinary costs approved by the
Secretary.
(3) Transfer of fees in cases of concurrent
geographical jurisdiction.--In each fiscal year, if any
public housing agency provides tenant-based assistance
under this section on behalf of a family who uses such
assistance for a dwelling unit that is located within
the jurisdiction of such agency but is also within the
jurisdiction of another public housing agency, the
Secretary shall take such steps as may be necessary to
ensure that the public housing agency that provides the
services for a family receives all or part of the
administrative fee under this section (as appropriate).
(4) Applicability.--This subsection shall apply to
fiscal year 1999 and fiscal years thereafter.
(r) Portability.--(1) In general.--(A) Any family receiving
tenant-based assistance under subsection (o) may receive such
assistance to rent an eligible dwelling unit if the dwelling
unit to which the family moves is within any area in which a
program is being administered under this section.
(B)(i) Notwithstanding subparagraph (A) and subject to any
exceptions established under clause (ii) of this subparagraph,
a public housing agency may require that any family not living
within the jurisdiction of the public housing agency at the
time the family applies for assistance from the agency shall,
during the 12-month period beginning on the date of initial
receipt of housing assistance made available on behalf of the
family from such agency, lease and occupy an eligible dwelling
unit located within the jurisdiction served by the agency.
(ii) The Secretary may establish such exceptions to the
authority of public housing agencies established under clause
(i).
(2) The public housing agency having authority with respect
to the dwelling unit to which a family moves under this
subsection shall have the responsibility of carrying out the
provisions of this subsection with respect to the family.
(3) In providing assistance under subsection (o) for any
fiscal year, the Secretary shall give consideration to any
reduction in the number of resident families incurred by a
public housing agency in the preceding fiscal year as a result
of the provisions of this subsection. The Secretary shall
establish procedures for the compensation of public housing
agencies that issue vouchers to families that move into or out
of the jurisdiction of the public housing agency under
portability procedures. The Secretary may reserve amounts
available for assistance under subsection (o) to compensate
those public housing agencies.
(4) The provisions of this subsection may not be construed to
restrict any authority of the Secretary under any other
provision of law to provide for the portability of assistance
under this section.
(5) Lease violations.--A family may not receive a voucher
from a public housing agency and move to another jurisdiction
under the tenant-based assistance program if the family has
moved out of the assisted dwelling unit of the family in
violation of a lease, except that a family may receive a
voucher from a public housing agency and move to another
jurisdiction under the tenant-based assistance program if the
family has complied with all other obligations of the section 8
program and has moved out of the assisted dwelling unit in
order to protect the health or safety of an individual who is
or has been the victim of domestic violence, dating violence,
or stalking and who reasonably believed he or she was
imminently threatened by harm from further violence if he or
she remained in the assisted dwelling unit.
(s) In selecting families for the provision of assistance
under this section (including subsection (o)), a public housing
agency may not exclude or penalize a family solely because the
family resides in a public housing project.
(t) Enhanced Vouchers.--
(1) In general.--Enhanced voucher assistance under
this subsection for a family shall be voucher
assistance under subsection (o), except that under such
enhanced voucher assistance--
(A) subject only to subparagraph (D), the
assisted family shall pay as rent no less than
the amount the family was paying on the date of
the eligibility event for the project in which
the family was residing on such date;
(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;
(C) subparagraph (B) of this paragraph shall
not apply and the payment standard for the
dwelling unit occupied by the family shall be
determined in accordance with subsection (o)
if--
(i) the assisted family moves, at any
time, from such project; or
(ii) the voucher is made available
for use by any family other than the
original family on behalf of whom the
voucher was provided; and
(D) if the annual adjusted income of the
assisted family declines to a significant
extent, the percentage of annual adjusted
income paid by the family for rent shall not
exceed the greater of 30 percent or the
percentage of 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.
(3) Treatment of enhanced vouchers provided under
other authority.--
(A) In general.--Notwithstanding any other
provision of law, any enhanced voucher
assistance provided under any authority
specified in subparagraph (B) shall (regardless
of the date that the amounts for providing such
assistance were made available) be treated, and
subject to the same requirements, as enhanced
voucher assistance under this subsection.
(B) Identification of other authority.--The
authority specified in this subparagraph is the
authority under--
(i) the 10th, 11th, and 12th provisos
under the ``Preserving Existing Housing
Investment'' account in title II of the
Departments of Veterans Affairs and
Housing and Urban Development, and
Independent Agencies Appropriations
Act, 1997 (Public Law 104-204; 110
Stat. 2884), pursuant to such provisos,
the first proviso under the ``Housing
Certificate Fund'' account in title II
of the Departments of Veterans Affairs
and Housing and Urban Development, and
Independent Agencies Appropriations
Act, 1998 (Public Law 105-65; 111 Stat.
1351), or the first proviso under the
``Housing Certificate Fund'' account in
title II of the Departments of Veterans
Affairs and Housing and Urban
Development, and Independent Agencies
Appropriations Act, 1999 (Public Law
105-276; 112 Stat. 2469); and
(ii) paragraphs (3) and (4) of
section 515(c) of the Multifamily
Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C.
1437f note), as in effect before the
enactment of this Act.
(4) 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.
(u) In the case of low-income families living in rental
projects rehabilitated under section 17 of this Act or section
533 of the Housing Act of 1949 before rehabilitation--
(1) vouchers under this section shall be made for
families who are required to move out of their units
because of the physical rehabilitation activities or
because of overcrowding;
(2) at the discretion of each public housing agency
or other agency administering the allocation of
assistance or vouchers under this section may be made
for families who would have to pay more than 30 percent
of their adjusted income for rent after rehabilitation
whether they choose to remain in, or to move from, the
project; and
(3) the Secretary shall allocate assistance for
vouchers under this section to ensure that sufficient
resources are available to address the physical or
economic displacement, or potential economic
displacement, of existing tenants pursuant to
paragraphs (1) and (2).
(v) The Secretary may extend expiring contracts entered into
under this section for project-based loan management assistance
to the extent necessary to prevent displacement of low-income
families receiving such assistance as of September 30, 1996.
(x) Family Unification.--
(1) Increase in budget authority.--The budget
authority available under section 5(c) for assistance
under section 8(b) is authorized to be increased by
$100,000,000 on or after October 1, 1992, and by
$104,200,000 on or after October 1, 1993.
(2) Use of funds.--The amounts made available under
this subsection shall be used only in connection with
tenant-based assistance under section 8 on behalf of
(A) any family (i) who is otherwise eligible for such
assistance, and (ii) who the public child welfare
agency for the jurisdiction has certified is a family
for whom the lack of adequate housing is a primary
factor in the imminent placement of the family's child
or children in out-of-home care or the delayed
discharge of a child or children to the family from
out-of-home care and (B) for a period not to exceed 36
months, otherwise eligible youths who have attained at
least 18 years of age and not more than 24 years of age
and who have left foster care, or will leave foster
care within 90 days, in accordance with a transition
plan described in section 475(5)(H)of the Social
Security Act, and is homeless or is at riskof becoming
homeless at age 16 or older.
(3) Allocation.--The amounts made available under
this subsection shall be allocated by the Secretary
through a national competition among applicants based
on demonstrated need for assistance under this
subsection. To be considered for assistance, an
applicant shall submit to the Secretary a written
proposal containing a report from the public child
welfare agency serving the jurisdiction of the
applicant that describes how a lack of adequate housing
in the jurisdiction is resulting in the initial or
prolonged separation of children from their families,
and how the applicant will coordinate with the public
child welfare agency to identify eligible families and
provide the families with assistance under this
subsection.
(4) Coordination between public housing agencies and
public child welfare agencies.--The Secretary shall,
not later than the expiration of the 180-day period
beginning on the date of the enactment of the Housing
Opportunity Through Modernization Act of 2016 and after
consultation with other appropriate Federal agencies,
issue guidance to improve coordination between public
housing agencies and public child welfare agencies in
carrying out the program under this subsection, which
shall provide guidance on--
(A) identifying eligible recipients for
assistance under this subsection;
(B) coordinating with other local youth and
family providers in the community and
participating in the Continuum of Care program
established under subtitle C of title IV of the
McKinney-Vento Homeless Assistance Act (42
U.S.C. 11381 et seq.);
(C) implementing housing strategies to assist
eligible families and youth;
(D) aligning system goals to improve outcomes
for families and youth and reducing lapses in
housing for families and youth; and
(E) identifying resources that are available
to eligible families and youth to provide
supportive services available through parts B
and E of title IV of the Social Security Act
(42 U.S.C. 621 et seq.; 670 et seq.) or that
the head of household of a family or youth may
be entitled to receive under section 477 of the
Social Security Act (42 U.S.C. 677).
(5) Definitions.--For purposes of this subsection:
(A) Applicant.--The term ``applicant'' means
a public housing agency or any other agency
responsible for administering assistance under
section 8.
(B) Public child welfare agency.--The term
``public child welfare agency'' means the
public agency responsible under applicable
State law for determining that a child is at
imminent risk of placement in out-of-home care
or that a child in out-of-home care under the
supervision of the public agency may be
returned to his or her family.
(y) Homeownership Option.--
(1) Use of assistance for homeownership.--A public
housing agency providing tenant-based assistance on
behalf of an eligible family under this section may
provide assistance for an eligible family that
purchases a dwelling unit (including a unit under a
lease-purchase agreement) that will be owned by 1 or
more members of the family, and will be occupied by the
family, if the family--
(A) is a first-time homeowner, or owns or is
acquiring shares in a cooperative;
(B) demonstrates that the family has income
from employment or other sources (other than
public assistance, except that the Secretary
may provide for the consideration of public
assistance in the case of an elderly family or
a disabled family), as determined in accordance
with requirements of the Secretary, that is not
less than twice the payment standard
established by the public housing agency (or
such other amount as may be established by the
Secretary);
(C) except as provided by the Secretary,
demonstrates at the time the family initially
receives tenant-based assistance under this
subsection that one or more adult members of
the family have achieved employment for the
period as the Secretary shall require;
(D) participates in a homeownership and
housing counseling program provided by the
agency; and
(E) meets any other initial or continuing
requirements established by the public housing
agency in accordance with requirements
established by the Secretary.
(2) Determination of amount of assistance.--
(A) Monthly expenses not exceeding payment
standard.--If the monthly homeownership
expenses, as determined in accordance with
requirements established by the Secretary, do
not exceed the payment standard, the monthly
assistance payment shall be the amount by which
the homeownership expenses exceed the highest
of the following amounts, rounded to the
nearest dollar:
(i) 30 percent of the monthly
adjusted income of the family.
(ii) 10 percent of the monthly income
of the family.
(iii) If the family is receiving
payments for welfare assistance from a
public agency, and a portion of those
payments, adjusted in accordance with
the actual housing costs of the family,
is specifically designated by that
agency to meet the housing costs of the
family, the portion of those payments
that is so designated.
(B) Monthly expenses exceed payment
standard.--If the monthly homeownership
expenses, as determined in accordance with
requirements established by the Secretary,
exceed the payment standard, the monthly
assistance payment shall be the amount by which
the applicable payment standard exceeds the
highest of the amounts under clauses (i), (ii),
and (iii) of subparagraph (A).
(3) Inspections and contract conditions.--
(A) In general.--Each contract for the
purchase of a unit to be assisted under this
section shall--
(i) provide for pre-purchase
inspection of the unit by an
independent professional; and
(ii) require that any cost of
necessary repairs be paid by the
seller.
(B) Annual inspections not required.--The
requirement under subsection (o)(8)(A)(ii) for
annual inspections shall not apply to units
assisted under this section.
(4) Other authority of the secretary.--The Secretary
may--
(A) limit the term of assistance for a family
assisted under this subsection; and
(B) modify the requirements of this
subsection as the Secretary determines to be
necessary to make appropriate adaptations for
lease-purchase agreements.
(5) Inapplicability of certain provisions.--
Assistance under this subsection shall not be subject
to the requirements of the following provisions:
(A) Subsection (c)(3)(B) of this section.
(B) Subsection (d)(1)(B)(i) of this section.
(C) Any other provisions of this section
governing maximum amounts payable to owners and
amounts payable by assisted families.
(D) Any other provisions of this section
concerning contracts between public housing
agencies and owners.
(E) Any other provisions of this Act that are
inconsistent with the provisions of this
subsection.
(6) Reversion to rental status.--
(A) FHA-insured mortgages.--If a family
receiving assistance under this subsection for
occupancy of a dwelling defaults under a
mortgage for the dwelling insured by the
Secretary under the National Housing Act, the
family may not continue to receive rental
assistance under this section unless the family
(i) transfers to the Secretary marketable title
to the dwelling, (ii) moves from the dwelling
within the period established or approved by
the Secretary, and (iii) agrees that any
amounts the family is required to pay to
reimburse the escrow account under section
23(d)(3) may be deducted by the public housing
agency from the assistance payment otherwise
payable on behalf of the family.
(B) Other mortgages.--If a family receiving
assistance under this subsection defaults under
a mortgage not insured under the National
Housing Act, the family may not continue to
receive rental assistance under this section
unless it complies with requirements
established by the Secretary.
(C) All mortgages.--A family receiving
assistance under this subsection that defaults
under a mortgage may not receive assistance
under this subsection for occupancy of another
dwelling owned by one or more members of the
family.
(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.
(8) Definition of first-time homeowner.--For purposes
of this subsection, the term ``first-time homeowner''
means--
(A) a family, no member of which has had a
present ownership interest in a principal
residence during the 3 years preceding the date
on which the family initially receives
assistance for homeownership under this
subsection; and
(B) any other family, as the Secretary may
prescribe.
(z) Termination of Section 8 Contracts and Reuse of
Recaptured Budget Authority.--
(1) General authority.--The Secretary may reuse any
budget authority, in whole or part, that is recaptured
on account of expiration or termination of a housing
assistance payments contract only for one or more of
the following:
(A) Tenant-based assistance.--Pursuant to a
contract with a public housing agency, to
provide tenant-based assistance under this
section to families occupying units formerly
assisted under the terminated contract.
(B) Project-based assistance.--Pursuant to a
contract with an owner, to attach assistance to
one or more structures under this section, for
relocation of families occupying units formerly
assisted under the terminated contract.
(2) Families occupying units formerly assisted under
terminated contract.--Pursuant to paragraph (1), the
Secretary shall first make available tenant- or
project-based assistance to families occupying units
formerly assisted under the terminated contract. The
Secretary shall provide project-based assistance in
instances only where the use of tenant-based assistance
is determined to be infeasible by the Secretary.
(aa) Refinancing Incentive.--
(1) In general.--The Secretary may pay all or a part
of the up front costs of refinancing for each project
that--
(A) is constructed, substantially
rehabilitated, or moderately rehabilitated
under this section;
(B) is subject to an assistance contract
under this section; and
(C) was subject to a mortgage that has been
refinanced under section 223(a)(7) or section
223(f) of the National Housing Act to lower the
periodic debt service payments of the owner.
(2) Share from reduced assistance payments.--The
Secretary may pay the up front cost of refinancing
only--
(A) to the extent that funds accrue to the
Secretary from the reduced assistance payments
that results from the refinancing; and
(B) after the application of amounts in
accordance with section 1012 of the Stewart B.
McKinney Homeless Assistance Amendments Act of
1988.
(bb) Transfer, Reuse, and Rescission of Budget Authority.--
(1) Transfer of Budget Authority.--If an assistance
contract under this section, other than a contract for
tenant-based assistance, is terminated or is not
renewed, or if the contract expires, the Secretary
shall, in order to provide continued assistance to
eligible families, including eligible families
receiving the benefit of the project-based assistance
at the time of the termination, transfer any budget
authority remaining in the contract to another
contract. The transfer shall be under such terms as the
Secretary may prescribe.
(2) Reuse and rescission of certain recaptured budget
authority.--Notwithstanding paragraph (1), if a
project-based assistance contract for an eligible
multifamily housing project subject to actions
authorized under title I is terminated or amended as
part of restructuring under section 517 of the
Multifamily Assisted Housing Reform and Affordability
Act of 1997, the Secretary shall recapture the budget
authority not required for the terminated or amended
contract and use such amounts as are necessary to
provide housing assistance for the same number of
families covered by such contract for the remaining
term of such contract, under a contract providing for
project-based or tenant-based assistance. The amount of
budget authority saved as a result of the shift to
project-based or tenant-based assistance shall be
rescinded.
(cc) Law Enforcement and Security Personnel.--
(1) In general.--Notwithstanding any other provision
of this Act, in the case of assistance attached to a
structure, for the purpose of increasing security for
the residents of a project, an owner may admit, and
assistance under this section may be provided to,
police officers and other security personnel who are
not otherwise eligible for assistance under the Act.
(2) Rent requirements.--With respect to any
assistance provided by an owner under this subsection,
the Secretary may--
(A) permit the owner to establish such rent
requirements and other terms and conditions of
occupancy that the Secretary considers to be
appropriate; and
(B) require the owner to submit an
application for those rent requirements, which
application shall include such information as
the Secretary, in the discretion of the
Secretary, determines to be necessary.
(3) Applicability.--This subsection shall apply to
fiscal year 1999 and fiscal years thereafter.
(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.
* * * * * * *
SEC. 39. TERMS AND CONDITIONS ON PREFERENCE FOR ASSISTANCE FOR CHILDREN
AGING OUT OF FOSTER CARE.
(a) Preference.--For purposes of this section, the term
``preference for housing assistance'' means preference, for an
otherwise eligible child in foster care, for--
(1) occupancy in a public housing dwelling unit,
pursuant to section 6(c)(4)(A)(iii);
(2) tenant-based assistance under section 8(o),
pursuant to paragraph (6)(A)(ii)(I) of such section;
(3) project-based assistance under section 8(o)(13),
pursuant to subparagraph (J)(ii)(I) of such section;
and
(4) occupancy in a dwelling unit in a project
assisted with project-based assistance under section 8,
pursuant to subsection (d)(1)(A)(i)(I) of such section.
(b) Early Application for Assistance.--Notwithstanding the
period during which a preference for housing assistance is
provided for a person, an otherwise eligible person may apply
for such occupancy or assistance at any time after such person
attains 16 years of age.
(c) Requirement for Education or Training.--
(1) Requirement.--Except as provided in paragraph
(2), each person occupying a dwelling unit pursuant to
a preference for housing assistance shall, not later
than 30 months after such initial occupancy, comply
with the requirements under one of the following
subparagraphs, as selected by the public housing agency
for or project owner of the assisted housing dwelling
unit involved, in consultation with relevant public
child welfare agencies:
(A) Option 1.--The requirements under this
subparagraph are--
(i) obtaining a recognized
postsecondary credential or a secondary
school diploma or its recognized
equivalent;
(ii) enrollment in an institution of
higher education, as such term is
defined in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C.
1001(a)) and including the institutions
described in subparagraphs (A) and (B)
of section 102(a)(1) of such Act (20
U.S.C. 1002(a)(1)); or
(iii) participation in a career
pathway, as such term is defined in
section 3 of the Workforce Innovation
and Opportunity Act (29 U.S.C. 3102).
Notwithstanding any other provision of this
paragraph, a public housing agency or project
owner may consider employment as satisfying the
requirements under this subparagraph.
(B) Option 2.--The requirements under this
subparagraph are compliance with the terms and
conditions applicable under section 23 of the
United States Housing Act of 1937 (42 U.S.C.
1437u) and the regulations implementing such
section to a person participating in a family
self-sufficiency program under such section,
except that--
(i) a public housing agency may
select the option under this
subparagraph only if the agency is
participating in such self-sufficiency
program or has made such commitments to
commence participation as the Secretary
considers sufficient; and
(ii) a project owner of assisted
housing may select the option under
this subparagraph only if the public
housing agency in whose jurisdiction
the project is located is participating
in such self-sufficiency program or has
made such commitments to commence
participation as the Secretary
considers sufficient.
(C) Option 3.--The requirements under this
subparagraph are compliance with any
combination of the terms, conditions, and
requirements under subparagraphs (A) and (B),
as may be established by the public housing
agency, except that a project owner of assisted
housing may select the option under this
subparagraph only if the public housing agency
in whose jurisdiction the project is located
has selected the option under this subparagraph
and has established such terms, conditions, and
requirements. In designing such terms,
conditions, and requirements, the public
housing agency may consult with local workforce
development agencies and other organizations
and entities with expertise and experience in
this field.
(2) Exceptions.--The requirement under paragraph (1)
shall not apply to--
(A) a parent or other household member
responsible for the care of a dependent child
under the age of 6 or for the care of an
incapacitated person;
(B) a person who is regularly and actively
participating in a drug addiction or alcohol
treatment and rehabilitation program; and
(C) a person who is incapable of complying
with the requirement under paragraph (1) due to
a documented medical condition.
(3) Verification of compliance.--The Secretary shall
require the public housing agency or project owner, as
applicable, to verify compliance with the requirement
under paragraph (1) by each person occupying a dwelling
unit assisted or administered by such agency or owner,
as applicable, pursuant to a preference for housing
assistance annually in conjunction with reviews of
income for purposes of determining eligibility for
assistance described in subsection (a).
(d) Limitation on Bedrooms.--A dwelling unit that is occupied
by a person, or assisted with assistance made available on
behalf of a person, pursuant to a preference for housing
assistance may contain more than one bedroom only if such
additional bedrooms are occupied only by other persons who
occupy such dwelling unit, or receive assistance made
available, pursuant to a preference for housing assistance.
(e) Supportive Services.--
(1) Eligibility.--Each person occupying a dwelling
unit pursuant to a preference for housing assistance
shall be eligible for any supportive services (as such
term is defined in section 103 of the Workforce
Innovation and Opportunity Act (29 U.S.C. 3102)) made
available, in connection with any housing assistance
program of the agency, by or through the public housing
agency providing such preference or, in the case of a
preference for housing assistance for housing not
assisted by such agency, by or through the public
housing agency in whose jurisdiction the housing is
located, including any services provided under a family
self-sufficiency program under section 23 of this Act.
(2) Information.--Upon the initial provision of
housing assistance for any person pursuant to a
preference for such assistance, the public housing
agency or owner, as applicable, shall inform such
person of the existence of any programs or services
referred to in paragraph (1) and of their eligibility
for such programs and services.
(f) Termination of Assistance.--The public housing agency or
project owner, as applicable, shall terminate any occupancy of,
or assistance on behalf of, a person pursuant to any preference
for housing assistance upon the person attaining 25 years of
age or upon substantial noncompliance with the requirement
under subsection (c), except that nothing in this subsection
may be construed to prohibit the occupancy of housing assisted
under this title by, or the provision of rental assistance
under section 8 for, any person, or to affect the eligibility
of any person for such occupancy or assistance, other than
pursuant to a preference for housing assistance.
(g) Applicability to Moving to Work Agencies.--
Notwithstanding any other provision of law, the preferences for
housing assistance identified in subsection (a) of this section
shall apply to assistance made available by each public housing
agency participating in the Moving to Work 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), except that in lieu of
compliance with one of the options under subsection (c)(1) of
this section, such an agency may comply with the requirement
under such subsection by complying with such terms, conditions,
and requirements as may be established by the agency for
persons occupying dwelling units pursuant to a preference for
housing assistance.
(h) Reports.--The Secretary of Housing and Urban Development
shall require each public housing agency that provides any
preference for housing assistance pursuant to this section in
any fiscal year to submit a report to the Secretary for such
fiscal year that--
(1) specifies the number of applications for such
preferences received during such fiscal year
disaggregated by--
(A) the number received by persons who have
attained 16 years of age but have not attained
an age such that the provision of foster care
for such child will end by reason of the age of
the child within 6 months; and
(B) the number received by persons who have
attained an age such that the provision of
foster care for such child will end by reason
of the age of the child within 6 months;
(2) specifies the number of persons provided a
preference for housing assistance during such fiscal
year; and
(3) describes how the public housing agency
communicated or collaborated with public child welfare
agencies to collect such data.
* * * * * * *
----------
HOUSING ACT OF 1949
* * * * * * *
TITLE V--FARM HOUSING
* * * * * * *
loans to provide occupant-owned, rental, and cooperative housing for
low- and moderate-income persons and families
Sec. 521. (a)(1)(A) Not withstanding the provisions of
sections 502, 517(a) and 515, loans to persons of low or
moderate income under section 502 or 517(a)(1), or 526(a),
loans under section 515 or 526(c) to provide rental or
cooperative housing and related facilities for persons and
families of low or moderate income or elderly persons and
elderly families, and loans under section 526 to provide
condominium housing for persons and families of low or moderate
income, shall bear interest at a rate prescribed by the
Secretary at not less than a rate determined by the Secretary
of the Treasury upon the request of the Secretary taking into
consideration the current average market yield on outstanding
marketable obligations of the United States with remaining
periods of maturity comparable to the average maturities of
such loans, adjusted to the nearest one-eighth of 1 per centum.
Any loan guaranteed under this title shall bear interest at
such rate as may be agreed upon by the borrower and the lender.
(B) From the interest rate so determined, the Secretary may
provide the borrower with assistance in the form of credits so
as to reduce the effective interest rate to a rate not less
than 1 per centum per annum for such periods of time as the
Secretary may determine for applicants described in
subparagraph (A) if without such assistance such applicants
could not afford the dwelling or make payments on the
indebtedness of the rental or cooperative housing. In the case
of assistance provided under this subparagraph with respect to
a loan under section 502, the Secretary may not reduce, cancel,
or refuse to renew the assistance due to an increase in the
adjusted income of the borrower if the reduction, cancellation,
or nonrenewal will cause the borrower to be unable to
reasonably afford the resulting payments required under the
loan.
(C) For persons of low income under section 502 or 517(a) who
the Secretary determines are unable to afford a dwelling with
the assistance provided under subparagraph (B) and when the
Secretary determines that assisted rental housing programs (as
authorized under this title, the National Housing Act, and the
United States Housing Act of 1937) would be unsuitable in the
area in which such persons reside, the Secretary may provide
additional assistance, pursuant to amounts approved in
appropriation Acts and for such periods of time as the
Secretary may determine, which may be in an amount not to
exceed the difference between (i) the amount determined by the
Secretary to be necessary to pay the principal indebtedness,
interest, taxes, insurance, utilities, and maintenance, and
(ii) 25 per centum of the income of such applicant. The amount
of such additional assistance which may be approved in
appropriation Acts may not exceed an aggregate amount of
$100,000,000. Such additional assistance may not be so approved
with respect to any fiscal year beginning on or after October
1, 1981.
(D)(i) With respect to borrowers under section 502 or 517(a)
who have received assistance under subparagraph (B) or (C), the
Secretary shall provide for the recapture of all or a portion
of such assistance rendered upon the disposition or
nonoccupancy of the property by the borrower. In providing for
such recapture, the Secretary shall make provisions to provide
incentives for the borrower to maintain the property in a
marketable condition. Notwithstanding any other provisions of
law, any such assistance whenever rendered shall constitute a
debt secured by the Security instruments given by the borrower
to the Secretary to the extent that the Secretary may provide
for recapture of such assistance.
(ii) In determining the amount recaptured under this
subparagraph with respect to any loan made pursuant to section
502(a)(3) for the purchase of a dwelling located on land owned
by a community land trust, the Secretary shall determine any
appreciation of the dwelling based on any agreement between the
borrower and the community land trust that limits the sale
price or appreciation of the dwelling.
(E) Except for Federal or State laws relating to taxation,
the assistance rendered to any borrower under subparagraphs (B)
and (C) shall not be considered to be income or resources for
any purpose under any Federal or State laws including, but not
limited to, laws relating to welfare and public assistance
programs.
(F) Loans subject to the interest rates and assistance
provided under this paragraph (1) may be made only when the
Secretary determines the needs of the applicant for necessary
housing cannot be met with financial assistance from other
sources including assistance under the National Housing Act and
the United States Housing Act of 1937.
(G) Interest on loans under section 502 or 517(a) to victims
of a natural disaster shall not exceed the rate which would be
applicable to such loans under section 502 without regard to
this section.
(2)(A) The Secretary shall make and insure loans under this
section and sections 514, 515, and 517 to provide rental or
cooperative housing and related facilities for persons and
families of low income in multifamily housing projects, and
shall make, and contract to make, assistance payments to the
owners of such rental, congregate, or cooperative housing in
order to make available to low-income occupants of such housing
rentals at rates commensurate to income and not exceeding the
highest of (i) 30 per centum of monthly adjusted income, (ii)
10 per centum of monthly income, or (iii) if the person or
family is receiving payments for welfare assistance from a
public agency, the portion of such payments which is
specifically designated by such agency to meet the person's or
family's housing costs. Any rent or contribution of any
recipient shall not increase as a result of this section or any
other provision of Federal law or regulation by more than 10
per centum during any twelve-month period, unless the increase
above 10 per centum is attributable to increases in income
which are unrelated to this subsection or other law or
regulation.
(B) The owner of any project assisted under this paragraph or
paragraph (5) shall be required to provide at least annually a
budget of operating expenses and record of tenants' income. The
budget (and the income, in the case of a project assisted under
this paragraph) shall be used to determine the amount of the
assistance for each project.
(C) The project owner shall accumulate, safeguard, and
periodically pay to the Secretary any rental charges collected
in excess of basic rental charges as established by the
Secretary in conformity with subparagraph (A). These funds may
be credited to the appropriation and used by the Secretary for
making such assistance payments through the end of the next
fiscal year. Notwithstanding the preceding sentence, excess
funds received from tenants in projects financed under section
515 during a fiscal year shall be available during the next
succeeding fiscal year, together with funds provided under
subparagraph (D), to the extent approved in appropriations
Acts, to make assistance payments to reduce rent overburden on
behalf of tenants of any such project whose rents exceed the
levels referred to in subparagraph (A). In providing assistance
to relieve rent overburden, the Secretary shall provide
assistance with respect to very low-income and low-income
families to reduce housing rentals to the levels specified in
subparagraph (A).
(D) The Secretary, to the extent approved in appropriation
Acts, may enter into rental assistance contracts aggregating
not more than $398,000,000 in carrying out subparagraph (A)
with respect to the fiscal year ending on September 30, 1982.
(E) In order to assist elderly or handicapped persons or
families who elect to live in a shared housing arrangement in
which they benefit as a result of sharing the facilities of a
dwelling with others in a manner that effectively and
efficiently meets their housing needs and thereby reduces their
costs of housing, the Secretary shall permit rental assistance
to be used by such persons or families if the shared housing
arrangement is in a single-family dwelling. For the purpose of
this subparagraph, the Secretary shall prescribe minimum
habitability standards to assure decent, safe, and sanitary
housing for such families while taking into account the special
circumstances of shared housing.
(F)(i) In making occupancy in a project assisted under this
paragraph, and rental assistance under this paragraph,
available on behalf of eligible families, the project owner--
(I) shall provide that the highest preference shall
be given to otherwise eligible children who--
(aa) are in foster care;
(bb) have attained an age such that the
provision of foster care for such child will
end by reason of the age of the child within 6
months;
(cc) meet the requirements under clauses (i)
and (ii) of paragraph (1) of the definition of
``at risk of homelessness'' in section 91.5 of
the Secretary of Housing and Urban
Development's regulations (24 C.F.R. 91.5), as
in effect on September 1, 2016; and
(dd) have agreed to comply with the
requirements under clause (iii); and
(II) may provide highest preference to, in addition
to eligible children described in subclause (I), not
more than two other types of eligible families.
(ii) Notwithstanding the period during which a preference
pursuant to clause (i)(I) for occupancy in project assisted
under this paragraph or for rental assistance under this
paragraph is provided for a person, an otherwise eligible
person may apply for such occupancy or assistance at any time
after the person attains 16 years of age.
(iii)(I) Except as provided in subclause (II), each person
occupying a dwelling unit pursuant to a preference under clause
(i)(I) shall, not later than 30 months after such initial
occupancy, be--
(aa) obtaining a recognized postsecondary credential
or a secondary school diploma or its recognized
equivalent;
(bb) enrolled in an institution of higher education,
as such term is defined in section 101(a) of the Higher
Education Act of 1965 (20 U.S.C. 1001(a)) and including
the institutions described in subparagraphs (A) and (B)
of section 102(a)(1) of such Act (20 U.S.C.
1002(a)(1)); or
(cc) participating in a career pathway, as such term
is defined in section 3 of the Workforce Innovation and
Opportunity Act (29 U.S.C. 3102).
Notwithstanding any other provision of this subclause,
a project owner may consider employment as satisfying
the requirements under this subclause.
(II) The requirement under subclause (I) shall not apply to--
(aa) a parent or other household member responsible
for the care of a dependent child under the age of 6 or
for the care of an incapacitated person;
(bb) a person who is regularly and actively
participating in a drug addiction or alcohol treatment
and rehabilitation program; and
(cc) a person who is incapable of complying with the
requirement under subclause (I) due to a documented
medical condition.
(III) The Secretary shall require a project owner to verify
compliance with the requirement under this clause by each
person occupying a dwelling unit pursuant to a preference under
clause (i)(I) annually in conjunction with reviews of income
for purposes of determining eligibility for assistance
described in clause (i).
(iv) A dwelling unit that is occupied by a person pursuant to
a preference under clause (i)(I) may contain more than one
bedroom only if such additional bedrooms are occupied only by
other persons who occupy such dwelling unit pursuant to a
preference under clause (i)(I).
(v) The project owner shall terminate any occupancy of a
person pursuant to the preference under clause (i)(I) upon the
person attaining 25 years of age or upon substantial
noncompliance with the requirement under clause (iii), except
that nothing in this clause may be construed to prohibit the
occupancy in a project assisted under this paragraph by, or the
provision of rental assistance under this paragraph for, any
person, or to affect the eligibility of any person for such
occupancy or assistance, other than pursuant to a preference
under clause (i)(I).
(3)(A) In the case of loans under sections 514 and 515
approved prior to the effective date of this paragraph with
respect to which rental assistance is provided, the rent for
tenants receiving such assistance shall not exceed the highest
of (i) 30 per centum of monthly adjusted income, (ii) 10 per
centum of monthly income, or (iii) if the person or family is
receiving payments for welfare assistance from a public agency,
the portion of such payments which is specifically designated
by such agency to meet the person's or family's housing costs.
(B) In the case of a section 515 loan approved prior to the
effective date of this paragraph with respect to which interest
credits are provided, the tenant's rent shall not exceed the
highest of (i) 30 per centum of monthly adjusted income, (ii)
10 per centum of monthly income, or (iii) if the person or
family is receiving payments for welfare assistance from a
public agency, the portion of such payments which is
specifically designated by such agency to meet the person's or
family's housing costs, or, where no rental assistance
authority is available, the rent level established on a basis
of a 1 per centum interest rate on debt service.
(C) No rent for a unit financed under section 514 or 515
shall be increased as a result of this subsection or other
provision of Federal law or Federal regulation by more than 10
per centum in any twelve-month period, unless the increase
above 10 per centum is attributable to increases in income
which are unrelated to this subsection or other law, or
regulation.
(4) In the case of a loan with respect to the purchase of a
manufactured home with respect to which rental assistance is
provided, the monthly payment for principal and interest on the
manufactured home and for lot rental and utilities shall not
exceed the highest of (A) 30 per centum of monthly adjusted
income, (B) 10 per centum of monthly income, or (C) if the
person or family is receiving payments for welfare assistance
from a public agency, the portion of such payments which is
specifically designated by such agency to meet the person's or
family's housing costs.
(5) Operating assistance for migrant farmworker projects.--
(A) Authority.--In the case of housing (and related
facilities) for migrant farmworkers provided or
assisted with a loan under section 514 or a grant under
section 516, the Secretary may, at the request of the
owner of the project, use amounts provided for rental
assistance payments under paragraph (2) to provide
assistance for the costs of operating the project. Any
tenant or unit assisted under this paragraph may not
receive rental assistance under paragraph (2).
(B) Amount.--In any fiscal year, the assistance
provided under this paragraph for any project shall not
exceed an amount equal to 90 percent of the operating
costs for the project for the year, as determined by
the Secretary. The amount of assistance to be provided
for a project under this paragraph shall be an amount
that makes units in the project available to migrant
farmworkers in the area of the project at rates not
exceeding 30 percent of the monthly adjusted incomes of
such farmworkers, based on the prevailing incomes of
such farmworkers in the area.
(C) Submission of information.--The owner of a
project assisted under this paragraph shall be required
to provide to the Secretary, at least annually, a
budget of operating expenses and estimated rental
income, which the Secretary may use to determine the
amount of assistance for the project.
(D) Definitions.--For purposes of this paragraph, the
following definitions shall apply:
(i) The term ``migrant farmworker'' has the
same meaning given such term in section
516(k)(7).
(ii) The term ``operating cost'' means
expenses incurred in operating a project,
including expenses for--
(I) administration, maintenance,
repair, and security of the project;
(II) utilities, fuel, furnishings,
and equipment for the project; and
(III) maintaining adequate reserve
funds for the project.
(b) Housing and related facilities provided with loans
described in subsection (a) shall be located in rural areas;
and applicants eligible for such loans under section 502 or
517(a)(1), or for occupancy of housing provided with such loans
under section 515, shall include otherwise qualified nonrural
residents who will become rural residents.
(c) There shall be reimbursed to the Rural Housing Insurance
Fund by annual appropriations (1) the amounts by which
nonprincipal payments made from the fund during each fiscal
year to the holders of insured loans described in subsection
(a)(1) exceed interest due from the borrowers during each year,
and (2) the amount of assistance payments described in
subsections (a)(2) and (a)(5). There are authorized to be
appropriated to the Rural Housing Insurance Fund such sums as
may be necessary to reimburse such fund for the amount of
assistance payments described in subsection (a)(1)(C). The
Secretary may from time to time issue notes to the Secretary of
the Treasury under section 517(h) and section 526 to obtain
amounts equal to such unreimbursed payments, pending the annual
reimbursement by appropriation.
(d)(1) In utilizing the rental assistance payments authority
pursuant to subsection (a)(2)--
(A) the Secretary shall make such assistance
available in existing projects for units occupied by
low income families or persons to extend expiring
contracts or to provide additional assistance when
necessary to provide the full amount authorized
pursuant to existing contracts;
(B) any such authority remaining after carrying out
subparagraph (A) shall be used in projects receiving
commitments under section 514, 515, or 516 after fiscal
year 1983 for contracts to assist very low-income
families or persons to occupy the units in such
projects, except that not more than 5 percent of the
units assisted may be occupied by low income families
or persons who are not very low-income families or
persons; and
(C) any such authority remaining after carrying out
subparagraphs (A) and (B) may be used to provide
further assistance to existing projects under section
514, 515, or 516.
(2) The Secretary shall transfer rental assistance contract
authority under this section from projects where such authority
is unused after initial rentup and not needed because of a lack
of eligible tenants in the area to projects where such
authority is needed.
(e) Any rent or contribution of any recipient or any tenant
in a project assisted under subsection (a)(5) shall not
increase as a result of this section, any amendment thereto, or
any other provision of Federal law or regulation by more than
10 per centum during any twelve-month period, unless the
increase above 10 per centum is attributable to increases in
income which are unrelated to this subsection or other law or
regulation.
* * * * * * *
MINORITY VIEWS
H.R. 2069 is a well-intentioned, but harmful bill that
seeks to help foster youth aging out of care by allowing them
to receive preference for key federal housing programs over
other households that have been waiting in line for assistance,
including other vulnerable populations such as people
experiencing homelessness, veterans, victims of domestic
violence, and families with young children. Further, H.R. 2069
would introduce mandatory education, training, or work
requirements at the federal level. There is no evidence that
such requirements help individuals increase their earned
incomes, and these requirements could leave the most vulnerable
foster youth at risk of eviction and homelessness.
H.R. 2069 would supersede voluntary local PHA and owner
waiting list preferences and replace them with a mandatory
federal preference for foster youth aging out of foster care
who are at risk of homelessness, allowing them to go to the top
of years long waiting lists for public housing, Housing Choice
Vouchers, project-based rental assistance, and rural housing
units subsidized by Section 521. Under H.R. 2069, PHAs and
owners would be allowed to establish preferences for two
additional groups alongside foster youth such that all three
groups, if so designated, would collectively be given a highest
preference. Congress eliminated federal preferences for housing
assistance in 1998 through the Quality Housing and Work
Responsibility Act (QHWRA) due to concerns that federal
preferences were contributing to an overconcentration of
poverty in federal housing programs, as well as concerns that
federal preferences were not nimble enough to respond to the
needs of local communities with differing populations.
Currently, PHAs and owners are free to establish preferences
for foster youth aging out of care if they determine it is
appropriate based on local needs. Some PHAs have chosen to
establish such preferences for foster youth, while others have
decided to establish preferences for other populations based on
different local needs or to establish no preferences at all.
Under H.R. 2069, foster youth who are provided housing
assistance through the new federal preference would be subject
to educational, training, or work requirements, as determined
by the PHA or owner, in consultation with relevant public child
welfare agencies. There is no guarantee that foster youth would
receive supportive services to help them meet these
requirements. Due to the discretion left to PHAs and owners,
some youth may be subjected strictly to work requirements
without the option to pursue education or training as an
alternative to obtaining employment. Substantial noncompliance
with these education, training, or work requirements would
result in termination of assistance. While the bill allows for
hardship exemptions, HUD has a documented history of failing to
ensure that PHAs follow existing hardship requirements. There
is no reason to believe that HUD will police these new hardship
requirements differently. For these reasons, Democrats oppose
H.R. 2069, but continue to support increased resources for
housing assistance to help foster youth aging out of care.
Maxine Waters.
Wm. Lacy Clay.
Stephen F. Lynch.
David Scott.
Carolyn B. Maloney.
Daniel T. Kildee.
Al Green.
Michael E. Capuano.
[all]