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115th Congress   }                                    {        Report
                        HOUSE OF REPRESENTATIVES
 2d Session      }                                    {        115-719
======================================================================



 
TRANSITIONAL HOUSING FOR RECOVERY IN VIABLE ENVIRONMENTS DEMONSTRATION 
                              PROGRAM ACT

                                _______
                                

  June 8, 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. 5735]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 5735) to amend the United States Housing Act of 
1937 to establish a demonstration program to set aside section 
8 housing vouchers for supportive and transitional housing for 
individuals recovering from opioid use disorders or other 
substance use disorders, and for other purposes, having 
considered the same, reports favorably thereon with amendments 
and recommends that the bill as amended do pass.
    The amendments (stated in terms of the page and line 
numbers of the introduced bill) are as follows:
  Page 3, strike lines 13 and 14 and insert the following:

                  (C) Criteria for eligible entities.--And 
                eligible entity shall--
                          (i) provide an evidence-

  Page 3, line 19, strike the period and insert ``; and''.
  Page 3, after line 19, insert the following:

                          (ii) demonstrate prior experience 
                        administering rental assistance 
                        vouchers, demonstrate prior experience 
                        administering transitional housing 
                        programs under the McKinney-Vento 
                        Homeless Act, or demonstrate a 
                        partnership with a public housing 
                        agency or a housing program of a State, 
                        unit of local government, or Indian 
                        tribe (as such term is defined in 
                        section 4 of the Native American 
                        Housing and Self-Determination Act of 
                        1996 (25 U.S.C. 4103)) that ensures 
                        effective administration of rental 
                        assistance vouchers.

                          Purpose and Summary

    On May 9, 2018, Rep. Andy Barr introduced H.R. 5735, the 
``Transitional Housing for Opioid Recovery Demonstration 
Program Act of 2018'' or the ``THRIVE'' Act. H.R. 5735 would 
create a demonstration program in which 10,000 vouchers would 
be set-aside and distributed to eligible entities for the 
support of transitional housing for those individuals 
undergoing opioid use disorder or other substance abuse 
disorder recovery. There would be a time-limit on the vouchers 
of 12-24 months and the voucher would be only available for 
people in programs that provide evidence-based treatment and 
job skills training according to standards established by the 
Secretary of the Department of Housing and Urban Development 
(HUD). Four years after implementation of the demonstration 
program, the HUD Secretary would submit a report to Congress 
that evaluates the effectiveness of the program and includes 
recommendations as to whether the Congress and HUD should 
implement a larger-scale program or adopt a longer-term 
approach.

                  Background and Need for Legislation

    According to the Center for Disease Control and Prevention, 
approximately 64,000 people died of a drug overdose in 2016. 
Sixty-five percent (42,000) of those deaths were related to the 
opioid epidemic, compared to only 8,400 deaths in 2000.\1\ 
Given the declaration of a national public health emergency 
last fall, there is need for additional transitional housing 
for opioid and other substance recovery. H.R. 5735 would create 
such a demonstration program to test whether the short-term 
transitional housing approach is transformational in helping 
covered individuals maintain sobriety after completing 
rehabilitation, gain valuable skills in job training, obtain 
employment, and eventually transition back to society to lead 
independent lives.
---------------------------------------------------------------------------
    \1\Centers for Disease Control and Prevention, ``Drug Overdose 
Death Data,'' updated December 19, 2017, https://www.cdc.gov/
drugoverdose/data/statedeaths.html and National Institute on Drug 
Abuse, ``Overdose Death Rates,'' revised September 2017, available at 
https://www.drugabuse.gov/related-topics/trends-statistics/overdose-
death-rates.
---------------------------------------------------------------------------
    On October 26, 2017, President Trump announced that his 
Administration was declaring the opioid crisis a national 
Public Health Emergency under federal law, effective 
immediately and the President stated, ``I am directing all 
executive agencies to use every appropriate emergency authority 
to fight the opioid crisis.''
    On March 29, 2017, President Trump signed an Executive 
Order to establish the President's Commission on Combating Drug 
Addiction and the Opioid Crisis. The Commission will be chaired 
by Governor Chris Christie and will study ways to combat and 
treat the scourge of drug abuse, addiction, and the opioid 
crisis. The Commission's Final Report issued on November 1, 
2017 noted, ``There is a critical shortage of recovery housing 
for Americans in or pursuing recovery. Recovery residences 
(also known as ``sober homes'' or ``recovery homes'') are 
alcohol- and drug-free living environments for individuals 
seeking the skills and social support to remain free of alcohol 
or other drugs and live a life of recovery in the 
community.''\2\
---------------------------------------------------------------------------
    \2\Final Report of the President's Commission on Combating Drug 
Addiction and the Opioid Crisis, November 1, 2017, available at, 
https://www.whitehouse.gov/sites/whitehouse.gov/files/images/
Final_Report_Draf_11-15-2017.pdf.
---------------------------------------------------------------------------
    On November 20, 2017, the Council of Economic Advisers 
(CEA) released a report on the economic costs of the opioid 
crisis. The CEA found that ``previous estimates of the economic 
cost of the opioid crisis greatly understate it by undervaluing 
the most important component of the loss--fatalities resulting 
from overdoses.''\3\ The CEA report estimated that in 2015, 
``the economic cost of the opioid crisis was $504.0 billion, or 
2.8 percent of GDP that year. This is over six times larger 
than the most recently estimated economic cost of the 
epidemic.''\4\
---------------------------------------------------------------------------
    \3\https://www.whitehouse.gov/briefings-statements/cea-report-
underestimated-cost-opioid-crisis/.
    \4\Id.
---------------------------------------------------------------------------
    The goal of H.R. 5735 is to establish a demonstration 
program to set aside Section 8 housing vouchers for supportive 
and transitional housing for individuals recovering from opioid 
and other substance use disorders.
    The demonstration program will provide participants who 
have a drug and substance abuse disorder a free, clean, safe 
and supportive structured environment. This approach to 
transitional housing would allow residents an opportunity to 
address their addiction, mental health, homelessness or other 
personal challenges in a supportive environment that could 
include required participation in activities such as recovery 
classes, life skills education classes, mandatory savings 
plans, and full-time or part-time employment.
    The program created by the THRIVE Act is the first step in 
a longer-term and community-based approach to treatment 
immediately after a covered individual has completed an initial 
traditional treatment, such as short-term or transitional 
residential programs. The housing services provided by H.R. 
5735 would complement services provided onsite such as case 
management, peer support, and daily living and coping skills 
education to assist individuals in improving their lives. 
Supportive housing, when used as a short-term approach, can 
help thousands of Americans maintain sobriety after they 
complete rehabilitation, gain valuable skills and job training, 
obtain employment, and eventually transition back into society 
to lead independent and productive lives.

                                Hearings

    The Committee on Financial Services, Subcommittee on 
Housing and Insurance held a hearing examining matters relating 
to H.R. 5735 on April 17, 2018.

                        Committee Consideration

    The Committee on Financial Services met in open session on 
May 22, 2018, and ordered H.R. 5735 to be reported favorably to 
the House, as amended, by a recorded vote of 34 yeas to 19 nays 
(recorded vote no. FC-178), a quorum being present. Before the 
motion to report was offered, the Committee adopted an 
amendment offered by Mr. Barr, no. 1, by voice vote.

                            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 
recorded vote was held on the amendment offered by Mr. Crist, 
no. 3. The amendment failed by a vote of 21 yeas to 32 nays 
(Record vote no. FC-177). A recorded vote was held on a motion 
by Chairman Hensarling to report the bill favorably to the 
House, as amended. The motion was agreed to by a recorded vote 
of 34 yeas to 19 nays (Record vote no. FC-178), a quorum being 
present.
[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. 5735 
will provide transitional housing support to thousands of 
Americans recovering from opioid and substance use disorders 
and will help them gain valuable skills and job training, 
obtain employment, and eventually transition back into society 
to lead independent lives by establishing a demonstration 
program to set aside Section 8 housing vouchers for supportive 
and transitional housing.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    The Committee has not received an estimate of new budget 
authority contained in the cost estimate prepared by the 
Director of the Congressional Budget Office pursuant to Sec. 
402 of the Congressional Budget Act of 1974. In compliance with 
clause 3(c)(2) of rule XIII of the Rules of the House, the 
Committee opines that H.R. 5735 will not establish any new 
budget or entitlement authority or create any tax expenditures.

                 Congressional Budget Office Estimates

    The cost estimate prepared by the Director of the 
Congressional Budget Office pursuant to Sec. 402 of the 
Congressional Budget Act of 1974 was not submitted timely to 
the Committee.

                       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 cites H.R. 5735 as the ``Transitional Housing 
for Recovery in Viable Environments Demonstration Program Act'' 
or the ``THRIVE Act.''

Section 2. Demonstration program to study the impact of using rental 
        vouchers for supportive and transitional housing for 
        individuals recovering from opioid use disorders or other 
        substance use disorders

    This section establishes a five year demonstration program 
in which the HUD Secretary allocates and distributes Section 8 
Housing Choice Vouchers to eligible non-profit organizations 
for the purposes of providing supportive and transitional 
housing assistance to individuals suffering from opioid or 
other substance use disorders. Eligible non-profit 
organizations must provide such assistance for a period of 12 
to 24 months. The Secretary shall set aside the lesser of 0.5 
percent of the total number of housing choice vouchers or 
10,000 vouchers for the purposes of the demonstration program.
    To participate in the demonstration program, an eligible 
entity shall provide an evidence-based treatment program and a 
job skills training program for individuals recovering from an 
opioid use disorder or other substance use disorder that meet 
standards established by the HUD Secretary. The eligible entity 
must demonstrate prior experience administering rental 
assistance vouchers, prior experience administering 
transitional housing programs under the McKinney-Vento Homeless 
Act, or demonstrate a partnership with (1) a public housing 
agency; (2) a housing program of a State or unit of local 
government; or (3) an Indian tribe.
    To receive a rental assistance voucher under this 
demonstration program, an eligible entity shall submit an 
application to the HUD Secretary that includes (i) a 
description of the terms of the treatment program, job skills 
training, and rental assistance to be provided to the 
individual, and assurances that the description shall be 
communicated to individuals that receive a voucher pursuant to 
this demonstration program; and (ii) a transitional plan that 
begins on the date on which a covered individual completes the 
treatment program of the eligible entity that includes 
information on additional treatment, job skills training, and 
housing resources and services available to such individual.
    In selecting eligible entities to receive rental assistance 
vouchers, the HUD Secretary shall ensure that entities are 
diverse, represent an appropriate balance of eligible entities 
located in urban and rural areas, and provide transitional 
housing programs in diverse geographic regions with high rates 
of mortality due to opioid and other substance use disorders, 
based on data of the Centers for Disease Control and 
Prevention. The HUD Secretary must consider the success of each 
eligible non-profit entity at helping individuals complete 
treatment programs, the type of job skills training program 
provided by the eligible entity, the percentage of participants 
in the job skills training program that gain and maintain 
employment, and the percentage of participants in the treatment 
program of the eligible entity that do not relapse into opioid 
or other substance usage and do not receive Federal assistance 
for treatment of an opioid or other substance use disorder.
    Upon turnover of the housing choice voucher of an 
individual, the eligible entity that initially offered the 
voucher may use the voucher to provide rental assistance to 
another covered individual.
    The HUD Secretary shall not make rental assistance 
available under this demonstration program after the expiration 
of the 5-year period beginning on the date of the enactment of 
the Act.
    An eligible entity that receives a rental assistance 
voucher under this demonstration program shall submit to the 
HUD Secretary annually the transitional plan outlined in this 
Act and information on each covered individual's housing upon 
termination of the provision of rental assistance. Not later 
than four years after the date of enactment, the eligible 
entity must submit a plan describing that treatment and housing 
options for any covered individual who will not have completed 
the program before the day this demonstration program sunsets.
    The HUD Secretary shall submit a report to Congress that 
analyzes the impact of rental assistance provided under this 
demonstration program not later than two years after the date 
of enactment of this bill. Not later than four years after the 
date of enactment, the HUD Secretary shall submit a report to 
Congress that includes recommendations for the continuation or 
expansion of the program established under this bill.
    An eligible entity is defined as a nonprofit organization 
that meets the criteria established under this bill, and a 
covered individual is defined as an individual recovering from 
an opioid use disorder or other substance use disorder.

Section 3. Repeal of rental voucher demonstration program

    The rental voucher demonstration program is repealed five 
years after date of enactment of this Act.

Section 4. Return of vouchers

    An eligible entity that provided vouchers for rental 
assistance under this demonstration program shall return any 
such voucher to the HUD Secretary five years after the date of 
enactment of this Act.

         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

           *       *       *       *       *       *       *


                    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 to the 
                certificate and moderate rehabilitation 
                programs only, for the purpose of selecting 
                families to be assisted, 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 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) Content.--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,;
                  (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.
          (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, 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 
                                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 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 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 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.
          (21) Rental voucher demonstration program for 
        supportive and transitional housing for individuals 
        recovering from opioid use disorders or other substance 
        use disorders.--
                  (A) Establishment.--The Secretary shall 
                establish a demonstration program under which 
                the Secretary shall set aside, allocate, and 
                distribute directly to eligible entities, from 
                amounts made available for rental assistance 
                under this subsection, the amounts specified in 
                subparagraph (B) for an eligible entity to 
                provide a voucher for such assistance to a 
                covered individual through a supportive and 
                transitional housing program that provides 
                treatment for opioid use disorders or other 
                substance use disorders (as applicable), job 
                skills training, and such assistance for a 
                period of 12 to 24 months.
                  (B) Amount.--The amount specified in this 
                subparagraph is, for each of fiscal years 2019 
                through 2023, the amount necessary to provide 
                the lesser of--
                          (i) 0.5 percent of the total number 
                        of vouchers allocated under this 
                        subsection during the fiscal year 
                        ending immediately before the date of 
                        the enactment of this paragraph; or
                          (ii) 10,000 vouchers.
                   (C) Criteria for eligible entities.--And 
                eligible entity shall--
                          (i) provide an evidence-based 
                        treatment program and a job skills 
                        training program for individuals 
                        recovering from an opioid use disorder 
                        or other substance use disorder, as 
                        applicable, that meet standards 
                        established by the Secretary; and
                          (ii) demonstrate prior experience 
                        administering rental assistance 
                        vouchers, demonstrate prior experience 
                        administering transitional housing 
                        programs under the McKinney-Vento 
                        Homeless Act, or demonstrate a 
                        partnership with a public housing 
                        agency or a housing program of a State, 
                        unit of local government, or Indian 
                        tribe (as such term is defined in 
                        section 4 of the Native American 
                        Housing and Self-Determination Act of 
                        1996 (25 U.S.C. 4103)) that ensures 
                        effective administration of rental 
                        assistance vouchers.
                  (D) Application.--To receive a rental 
                assistance voucher under this paragraph, an 
                eligible entity shall submit an application to 
                the Secretary that shall include--
                          (i) a description of the terms of 
                        treatment program, job skills training, 
                        and rental assistance to be provided to 
                        a covered individual, and assurances 
                        that such description shall be 
                        communicated to covered individuals 
                        that receive vouchers pursuant to the 
                        demonstration program established under 
                        this paragraph; and
                          (ii) a transitional plan that begins 
                        on the date on which a covered 
                        individual completes the treatment 
                        program of the eligible entity that 
                        includes information on additional 
                        treatment, job skills training, and 
                        housing resources and services 
                        available to such covered individual.
                  (E) Selection.--In selecting eligible 
                entities to receive rental assistance vouchers 
                under this paragraph, the Secretary shall--
                          (i) ensure that such eligible 
                        entities--
                                  (I) are diverse;
                                  (II) represent an appropriate 
                                balance of eligible entities 
                                located in urban and rural 
                                areas; and
                                  (III) provide supportive and 
                                transitional housing programs 
                                in diverse geographic regions 
                                with high rates of mortality 
                                due to opioid use disorders or 
                                other substance use disorders, 
                                as applicable, based on data of 
                                the Centers for Disease Control 
                                and Prevention; and
                          (ii) consider--
                                  (I) the success of each 
                                recipient eligible entity at 
                                helping individuals complete 
                                the treatment program of the 
                                eligible entity and refrain 
                                from opioid or other substance 
                                usage, as applicable;
                                  (II) the type of job skills 
                                training program provided by 
                                the eligible entity;
                                  (III) the percentage of 
                                participants in the job skills 
                                training program that gain and 
                                maintain employment;
                                  (IV) the percentage of 
                                participants in the treatment 
                                program of the eligible entity 
                                that--
                                          (aa) do not relapse 
                                        into opioid or other 
                                        substance usage, as 
                                        applicable; and
                                          (bb) do not receive 
                                        Federal assistance for 
                                        treatment of an opioid 
                                        use disorder or other 
                                        substance use disorder, 
                                        as applicable, after 
                                        completion of the 
                                        program.
                  (F) Transfer of voucher.--Upon termination of 
                the provision of rental assistance through a 
                voucher to a covered individual, the eligible 
                entity that initially offered such voucher may 
                use such voucher to provide rental assistance 
                to another covered individual.
                  (G) Duration.--The Secretary shall not make 
                rental assistance available under this 
                paragraph after the expiration of the 5-year 
                period beginning on the date of the enactment 
                of this paragraph.
                  (H) Reports.--
                          (i) By the eligible entity.--An 
                        eligible entity that receives a rental 
                        assistance voucher under this paragraph 
                        shall submit to the Secretary--
                                  (I) annually, the 
                                transitional plan described in 
                                subparagraph (D)(ii) and 
                                information on each covered 
                                individual's housing upon 
                                termination of the provision of 
                                rental assistance through a 
                                voucher to such covered 
                                individual in a manner that 
                                protects the privacy of such 
                                covered individual; and
                                  (II) not later than 4 years 
                                after the date of the enactment 
                                of this paragraph, a plan 
                                describing the treatment and 
                                housing options for any covered 
                                individual assisted by such 
                                voucher who will not have 
                                completed the program before 
                                the day that is 5 years after 
                                such date of enactment.
                          (ii) By the secretary.--The Secretary 
                        shall submit to Congress a report that 
                        analyzes the impact of rental 
                        assistance provided under this 
                        paragraph--
                                  (I) not later than 2 years 
                                after the date of the enactment 
                                of this paragraph; and
                                  (II) not later than 4 years 
                                after the date of the enactment 
                                of this paragraph, that 
                                includes recommendations for 
                                the continuation or expansion 
                                of the program established 
                                under this paragraph and 
                                improving the process for 
                                providing such assistance.
                  (I) Definitions.--In this paragraph:
                          (i) Eligible entity.--The term 
                        ``eligible entity'' means a nonprofit 
                        organization that meets the criteria 
                        described under subparagraph (C).
                          (ii) Covered individual.--The term 
                        ``covered individual'' means an 
                        individual recovering from an opioid 
                        use disorder or other substance use 
                        disorder.
  (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 accordancewith 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.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    H.R. 5735 is a well-intentioned yet harmful bill that would 
attempt to provide assistance to individuals struggling with 
substance abuse at the expense of other needy persons, such as 
women fleeing domestic violence, persons experiencing 
homelessness, and others in need of housing assistance.
    Democrats agree that Federal resources are needed to house 
people with substance use disorders so that these individuals 
can more successfully recover and rebuild their lives. However, 
rather than providing increased resources for new vouchers, 
this bill would take a portion of existing Housing Choice 
Vouchers (HCVs) away from families who have been waiting in 
line for years to get a voucher, and redirect them to people 
with substance use disorders. The effect of this bill could be 
the permanent redistribution of vouchers from some communities 
to those with high concentrations of individuals with substance 
use disorders. H.R. 5735 would effectively allow one group of 
people to cut the line in front of families--including those 
with young children--elderly households, persons with 
disabilities, veterans, victims of domestic abuse, and others 
who are equally deserving and in dire need of housing 
assistance.
    Further, this bill would create several administrative 
concerns by not only taking HCVs away from public housing 
agencies (PHAs), but also by distributing them to non-profits 
that would not necessarily have any experience with the HCV 
program. Once the five-year demonstration concludes, it is 
entirely unclear how the HCVs would be redistributed to the 
PHAs, if at all, potentially resulting in the loss of 
substantial numbers of vouchers from entire communities. The 
Department of Housing and Urban Development's (HUD's) capacity 
to adequately and effectively administer this demonstration is 
also questionable as HUD does not necessarily have expertise in 
the best practices for substance use disorder treatments, and 
there is nothing in this bill requiring or encouraging 
coordination with other agencies, such as the Department of 
Health and Human Services, that do have such expertise.
    Lastly, this bill would place arbitrary time limits of up 
to two years on the individuals that receive vouchers through 
this new demonstration, which may not be enough time for 
individuals to fully recover from their substance use disorder, 
let alone obtain employment that will allow them to afford 
market rent. For this reason, existing supportive housing 
programs that focus on substance use disorder treatment 
generally do not impose time limits in order to ensure that 
individuals are able to fully recover, and are not subject to 
an eviction, which could trigger a relapse. Moreover, placing 
any time limits on housing assistance for anyone, regardless of 
their substance use, is cruel and allowing for time limits in 
this context opens the door for time limits on other persons or 
in other housing programs.
    To address the shortcomings with H.R. 5735, Democrats 
offered an amendment to fully fund 10,000 new vouchers and to 
fix the administrative concerns with the bill. These amendments 
were not adopted. In addition, Democrats offered two amendments 
that were not adopted to: (1) ensure that eligible non-profits 
would not discriminate against individuals, including employees 
and voucher recipients, on the basic of their sexual 
orientation or gender identity and expression; and (2) help 
prevent individuals with substance abuse disorders from being 
evicted from public housing units as a result of a minor drug 
related offense.
    In sum, despite the laudable goal of helping house people 
with substance use disorders, H.R. 5735 would provide such 
assistance at the expense of others in need, and would do so in 
a way that would be administratively complicated and 
counterproductive towards the goal of recovery. For these 
reasons, we oppose H.R. 5735.

                                   Maxine Waters.
                                   Nydia M. Velazquez.
                                   Wm. Lacy Clay.
                                   Carolyn B. Maloney.
                                   Stephen F. Lynch.
                                   Michael E. Capuano.

                                  [all]